think, plan, grow! ™. what is your experience level with the balanced scorecard in your firm? –...

Think, Plan, Grow! ™


• What is your experience level with the Balanced Scorecard in your firm?– Beginner (We know very little about it)– Intermediate (We have started but have

stalled in our use of the BSC)– Advanced (We are using the BSC

successfully in our firm


• Intro• Changing A Culture• Building The Scorecard• Keys to Success• Action Plan


• Partner Compensation drove the plan• Charge Hours• Performance What? • Once a Year… at the most


• Staff is changing….• You are changing…• Business model is changing….• Process must change….


What is it?Why are we interested?

How do we use it?Where do we go from here?


• “Harvard Business Review” 1992R.S. Kaplan and D.P. Norton

• Organizational Performance Measurement

• Successful Strategy Implementation• Widespread Acceptance


1. Top Dow Reflection of the Firm

2. Forward-Looking

3. External and Internal Measures

4. Helps you stay focused!


Myth -or-

Possibility

Outcomes

What we do to exist.What we believe in.

What we want to be.

Our Game Plan

Behavior Motivation

What we need to do.

What I need to do.

SatisfiedPartners

HappyClients

EffectiveProcesses

MotivatedEmployees


• Fact #1:Most organizations do not successfully execute their strategy

• Fact #2To successfully execute your strategy, YOU MUST HAVE ONE!


• Do You Have A Written Strategic Plan That Everyone In The Firm Knows About?– Yes– No


Step 2 - Find a way to:Communicate Strategy

Measure SuccessMotivate and Reward

So you can successfully execute your strategy!


• Most employees don’t understand the business strategy

• Employees represent the key asset in a knowledge based business

• Communicating and understanding is a key to success


• Is compensation linked to performance?

• Is performance measured in the “right” way?

• Does compensation reinforce achieving strategic objectives?


• How are budgets related to strategy?• Long term vs. Short term • Measures and evaluation


• Where is management attention?• What is being measured?• Financial results, and BEYOND!


• Which Barrier does your firm suffer from?– Vision Barrier– People Barrier– Resource Barrier–Management Barrier– All of the Above– None of the Above


• The Vision Barrier– Translate Strategic Goals into tasks,

performance standards, and desired outcomes.

• The People Barrier– “Cascade” scoreboard down to

individual level. Reward value creation.


• The Resource Barrier– Budgets keyed to strategic objectives.

Priorities toward long term goals.

• The Management Barrier– Lead towards the strategy. Check the

right things. Balance among conflicting priorities.


Change the Accountability Culture of Your Firm!


• When determining compensation adjustments in your firm (bonus or yearly) what factor is MOST important?– Financial Measures– Client Service Measures– Training and Learning Measures– Process Measures


Real Life….


• Staff Acceptance• Trust the Change!• Understanding “measureable” was

harder than expected.• Financial results are a by-product of

the other 3 buckets.• FEAR


• Staff understand what is expected• Staff understand how they can truly

contribute to overall firm success• Internal process have improved

dramatically• Overall strategy is being

accomplished.• Better communication of overall firm

expectations.


• Increased Efficiencies• Internal Projections • Better Communication• Change in Culture• Strategic Plan linked to Real

Performance


• Avoid the Silo of Financial Management

• Helps you deal with many of the blind spots that prevent you from growing profitably.

• Staff “get it”!


• This is a journey, not a destination! • Move to a compensation model that

feeds the performance. (Not punishment)


• Laughter!• 5 Years• 8 Years• Lifetime• 2 Years

DON’T MAKE THIS TOO

COMPLICATED!


• Do you have a desire to move to the Balanced Scorecard Culture in Your Firm?– Yes, we will move in this direction– Yes, but we still need buy in– No, this is not in alignment with our

culture- Other


1. Start with your strategic plan2. Don’t start without the total commitment of the

MP or CEO3. Commitment is different than support4. Use a facilitator5. Start with the partner group6. Use the positive focus and game plans to

reduce time7. Schedule quarterly meetings in advance8. Insure performance funds9. Focus on limited objectives10. Use graphics for positive visuals around the

office


• Kaplan-Norton Balanced Scorecard Boot Camp


This is a good textbook!


Our repertoire of tools for helping CPAs develop leadership and management skills and fulfill their potential:

• CPE Webinars – Attend webinars on management and leadership of accounting firms.

• CPA Leadership Report – A comprehensive exploration of new ideas in the

accounting world. It is a monthly review of the best management and leadership articles published

in the accounting press.

• Leadership Forum Report – Commentaries from the profession’s thought leaders.

• Best Practices Tips – Best management ideas of the month.

• Directory of Resources for Accounting Firms – Find what you need.

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think, plan, grow! ™. what is your experience level with the balanced scorecard in your firm? –...

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