Close
Why are we seeing a trend toward rising IT costs? It seems like in the age of information, with the dollar-per-computing unit on the decline and technology becoming faster and more efficient, this just shouldn’t be the case.
The answer lies in a basic understanding of how economics affects our everyday lives. Economics is the study of cause and effect relationships, whether in an economy, an industry, a home, etc., and applies to computing (things like RAM, CPU, storage, and networking as a service) just as it does to utilities (like power, water and gas). We all know that when there is a drought our water bill goes up. The bill goes up to incentivize people to use less water. As economist Thomas Sowell says, “The first lesson of economics is scarcity. There is never enough of anything to satisfy all those who want it.” This applies to the computing world as well. (more…)
BLOG ARCHIVE
Archive for the ‘Business’ Category
Why Are IT Costs Rising?
Thursday, May 17th, 2012The 4 C’s of Business Development
Monday, July 18th, 2011
Business Development (BD) seems to be the buzzword of 2011 (probably 4th behind Cloud, Social Media, and Merger). As new business has been difficult to find, even harder to win, and harder still to be profitable on, the profession has started turning over new rocks in search of some answers. The quest for good professional services business development people is underway at many firms. In other cases firms are looking to partners to pick up their BD efforts as part of their role in being a partner. Either avenue your firm takes, it’s important to consider the basic qualities needed in a BD role. As a person learning the craft, I have found 4 qualities (conveniently all C’s) that are needed to make for a successful business development person…which leads to the 5th C – cash.
First, what exactly is business development?
Business Development [biz-nis dih-vel-uh p-muh nt]
Business development comprises a number of techniques and responsibilities which aim at attracting new customers and penetrating existing markets.
Next, what should you look for in people (the 4 C’s)?
Connector
The person who acts like they are in timeout at a cocktail hour is probably not the best person for a business development role. This doesn’t mean they are the incessant storyteller who can’t shut up, but rather a person who rarely meets a stranger and when they do they LISTEN more than they talk. This trait is wired into an individual and, best I can tell, cannot be taught. Sure someone can get better and improve, but this same person should not have that as their primary role.
Leveraging Technology Tools- Client Interaction
Thursday, July 14th, 2011
Gaining Leverage: Where’s the best place to start?
In other words, “What is the lowest hanging fruit when attempting to gain organizational leverage?” I find that the 2 biggest areas for improvement are internal collaboration and client interaction.
Client Interaction
“No news is good news” is no longer the maxim of the day. When new business poured in you weren’t all that concerned with how often, well, and uniquely you communicated with your client base. But now, in 2011, the wind has largely been sucked out of the net-new revenue category and client retention is the top priority of most firms. Luckily, tools have matured over the last 3 years and are ready to be utilized by your firm. (more…)
Leveraging Technology Tools- Internal Collaboration
Thursday, July 14th, 2011
Leverage and accounting firms go hand in hand. This is a statement most partners intimately understand, as it’s their paychecks that are dramatically impacted, positively or negatively, by the firm getting the leverage equation right. While many of us grasp the staff leverage concept, we rarely understand how to properly leverage other aspects of our business effectively. That said, the chief tool in each of our offices is technology.
Here are two definitions to consider before we take a deeper dive:
Tool: the use of non-life to enhance life (spear, rock, pencil, computer, etc.)
Organizational Leverage: the streamlining of operations to increase effectiveness
These are very simple definitions that, if properly understood in the context of your firm, can make a world of difference not only with year-end earnings but also year-end enjoyment (the YEE’s if you will).
Gaining Leverage: Where’s the best place to start?
In other words, “What is the lowest hanging fruit when attempting to gain organizational leverage?” I find that the 2 biggest areas for improvement are internal collaboration and client interaction. (more…)
Are Your Young CPAs Practicing and Enhancing Their 30-Second Commercial?
Friday, June 17th, 2011
Some of the most basic training for young CPAs beginning their personal marketing, branding and selling journey is the long time used “elevator speech.” I like to call them 30-Second Commercials.
There has been a lot of debate in recent times as to the real value of this practice, but I think it is a great way for young CPAs to build their skills. Try hosting a series of Lunch & Learns inside your firm to have some fun and also help your people develop their personal commercials.
There is a great article on Jeffrey Gitomer’s site by Terri Sjodin talking about enhancing the standard elevator speech. I am going to begin incorporating it into my training and advice for young professionals. Sjodin advocates using the elevator speech concept as a strategy to manage multiple talking points and to communicate more complex ideas too. (more…)
Mergers & Acquisitions: The Big Picture Opportunity + The Big Picture Problem
Monday, February 21st, 2011The Big Picture Opportunity
The reason you did the merger was because of opportunity- saved costs, new markets, increased bench strength, etc. Most likely, you didn’t do the merger based on the technology opportunity you saw; I don’t blame you. However, are you sitting on something invaluable? A recent article by McKinsey Quarterly business journal states that up to 60% of the synergies created by mergers and acquisitions (MA) are related to IT, as shown below:
Does your firm see the opportunity in the IT arena created through the MA? If not, there are savings, efficiencies and rewards to be had. The most common savings and efficiencies are realized in 3 arenas: reduced infrastructure costs, analyzing staffing scenario, and discounts from having a bigger head count. (more…)
Get the RightSignature
Friday, January 28th, 2011
With so many new technologies appearing on the scene everyday, it’s hard to filter down the list to ones that can have real impact on the way we do business. Many of the best are niche solutions that have been developed to address specific areas of inefficiency and try not to be a Swiss army knife.
One example is RightSignature, which elegantly handles the process of document signing and does it completely and paperlessly online. Contracts, forms, employment agreements, tax documents, you name it. Upload your source document, insert the signature field where it belongs and you’re ready to go. RightSignature emails a secure link to the recipient, who then is presented the document for review and signature. (more…)
5 Tips for Managing an Accounting Firm in 2011
Tuesday, December 7th, 2010
It’s tough to run a successful business in good times let alone in difficult economic times. When I was asked to write about Practice Management, it would be impossible for me to make suggestions outside of the lens of “these are difficult economic times for our country.” I hope the following strategies and suggestions help you make 2011 a successful year. (more…)
Word from the Experts: Practice Growth 2011
Tuesday, December 7th, 2010
We wanted to give you, our readers, a gift for the holidays, so we asked several industry experts to provide insight about the state of the profession, technology, and firm future.
We’ve compiled their responses below for quick and easy reference. Dig in! Enjoy!
Moving to the Cloud is Bigger than You Think- by Jason Blumer
Getting Back to the Basics and Taking a Look Ahead- by Mike Herlihy, Thomson Reuters
2011 and How Client Communication is Changing- by Mike Sabbatis, CCH
Workflow Thoughts and More- by Roman Kepczyk
CPA Firm Organization Alignment- by Rita Keller
Short Term, Long Term- Keep Your Eye on Both- by Gale Crosley
Short Term, Long Term- Keep Your Eye on Both :: Word from Gale Crosley
Monday, December 6th, 2010
The key to weathering the storm is to tighten up your tactical maneuvers and broaden your strategic horizons. Tactically, get your pipeline process running like a Swiss watch and make sure every rainmaking opportunity is being handled by your best rainmakers. Ask your less able partners to check their egos at the door and involve other partners who have the highest odds for success. When business is so hard to come by, now is not the time for less experienced partners to practice their skills and risk losing the business. (more…)