2020 Spring Conference 2014 - Engines of Future Growth

Engines of Future Growth
2020 Spring Conference 2014

09.45 Who switched the lights out? Part 1
IAN FLETCHER , GORDON GILCHRIST AND DAMIEN GREATHEAD
10.45 Break
11.10 Who switched the lights out? Part 2
12.50 Unique selling points of our exhibitors
IAN FLETCHER AND GORDON GILCHRIST
13.00 Lunch and exhibition time

14.00 More clients please….
DAMIEN GREATHEAD
15.00 Break
15.30 The essential IT update
IAN FLETCHER AND KEVIN SALTER
16.00 Flawless execution – there is “DO and “NOT DO”
GORDON GILCHRIST
16.45 Closing remarks and top takeaways

The Value to you of being here is to:
 “Retain existing clients, build loyalty by
offering them new and innovative products
and services and get new clients.”
 We want to help you to be “Different”
from the other grey suits!

 New services and products
 Unlimited CPD webinars
 Marketing newsletters and materials

2014 Focus:
 Directors and SME tax and business planning
 Extend your value proposition to clients by
offering next generation solutions

 General Insurance
 Tax Planning
 Wealth Management
 SME Planning

 Our nationwide team comprises newly
retired partners of mid-tier firms
 Practice leaders as principals, with a
generation of experience
 Online database of active firms

 Current Industry trends – the “Haves” and “Have nots”
 Your strategy for success - Target setting and making
changes
 What the most innovative 2020 firms do differently from
the rest
 Key benchmarks to measure your growth and profitability
 Proven practice management techniques to get the best
out of you and your team

 Survival
 New start ups
 Price focussed
 No differentiation
 Limited range of services

 Focus on service
 Wide range of services
 Specialists
 Access to capital
 Quality team
 Culture for success

 More new practices than ever = Competition
 IRIS survey* – 60% confident in clients growth
(2012 – 40%)
 72% Positive expectations
 2014 Priority – 60% Growing their customer base
 2020 Marketing conference – 22 May 2014
 * 300 responses IRIS world 2013 customer conferences

Competitive compliance services
 Cheaper, quicker, faster, better
 IT:
 Remote access
 Outsourcing
 Online accounting, bookkeeping etc

 New strings to the bow – see part 2
 Trusted adviser
 Tax planning
 Wealth management
 General Insurance
 One stop shop - ABS
 Profit improvement
 Corporate finance
 Strategic planning

People
 Not enough supply to reach demand
 Shortage of accountants
 Keep your talented people

 Marketing upsurge
 Pull vs push
 Merger/acquisition
 Critical mass
 Joint ventures

1.Years to retirement / exit (if applicable)
2.Type of practice
3.Services offered
4.Practice Size
 Fees earned
 Work in progress adjustment
 Total income
 Overheads
 Net Profit

5. Estimated value of practice
 Now
 In five years
6. Growth objectives
 Fees
 New services
 New products
 New markets
 Value pricing opportunities
 Number of fee earners

7. Market position
 Target market
 Competition
8. Unique selling points
 Distinctive services
 Distinctive marketing
 Distinctive partners
 Distinctive client care

 Remote access/work from anywhere facility –
watch the weather!
 Chargeable time, recoveries, fee income
 Apply the principles of Disney model
 Reward for cross selling and client testimonials
 Big 4 & Top 20 shake outs – fertile land for talent

 Annual billing and WIP <30 days –
How is this possible ?
 Client Satisfaction Surveys, Interviews
and/or Advisory Boards
 Client portal technology
 Social Media Platform and Staff policy

2 key benchmarks in practice:
1. Chargeable hour bonus and charge out
rates calculator
2. Clients being ok with the fees

Before After year 1 After year 2
Number of Fee Earners 14 14 14
Fee Earners’ Average Charge Out Rate £45 £45 £50
Average Chargeable Hours 1200 1450 1450
Productive Time 756000 913500 1015000
Recoveries 86% 83% 81%
Fee Income £650,160 £758,205 £822,150
Average Salaries £286,364 £286,364 £333,333
Bonus £0 £35,871 £0
£286,364 £322,235 £333,333
Gross Margin £363,796 £435,970 £488,817

Chargeable hour bonus:
Increase in chargeable hours
X
Charge out rate
X
Recovery percentage
X
40%

Do you think your accountancy fees are:
Low Fair Excessive
Before 6% 66% 28%
After 3% 84% 13%

Do you understand your accountancy fees?
Yes Sometimes Never
Before 43% 24% 33%
After 71% 16% 13%

Clients understanding fees
 Client Education Checklist
 Agenda before every
meeting
 Scope letter
 30% Budget Rule

“People will do that what they
are rewarded for”
Peter Drucker

Staff appraisals in line with business plan
Turnover
 Chargeable hours and recoveries
 Before, during and after - timeliness and fees
 Cross selling - Agenda for the clients future
 Tax, retirement, profit improvement, etc

Staff appraisals in line with business plan
Lock up
 Turnaround time
 30% Budget Rule
 15 Minute review

Rewarding for achieving important goals
 Chargeable hours
 Cross selling - Commissions available to ALL
(Financial services, Insurance, Tax, payroll, online
accounting, clients using the portal or APP)

Rewarding for achieving important goals
 Client referrals - Client testimonials and
networking
 Implementing agreed actions from appraisals to
participate in bonus pot (however calculated)

 Latest 2020 research on understanding client
needs and wants
 Becoming the “One Stop Shop” clients are
demanding
 New income streams to accelerate your growth
 Staying ahead of your competitors

2013-2014 client satisfaction survey results
(recently updated):
The BIG question:
“Other than reduce fees, what can your
Accountant do to improve the value for
money of their service?”

 Breakdown of fees
 Regular contact
 Promptness
 Pro active
 How do you stack up?

 Pre work education
 Accounts Education Checklist
“Is it OK if I spend a couple of minutes explaining the key
steps in the process?”
 Detailed time sheets (if applicable)
 Before, during, after
 Detailed fee notes
 Regular billing procedures

 Many firms are USELESS at this!
 Clients want your help – they EXPECT
regular communication
 Survey results

By which method do you prefer to receive news and
updates about the firm related to financial topics?
60%
35%
5%
Email Newsletter Website

How frequently would you like to receive news and
updates about the firm related to financial topics?
30%
50%
20%
Monthly Quarterly Only when relevant

 Programme for communication
 Partner or dedicated customer care person?
 Monthly telephone call and / or client visits
 Annual / quarterly meetings – STRATEGY
 Social media – Damien will cover off later
 Outbound professionals DO BEST

 The Innovator – NEW tax articles from
EDF on a range of topical tax issues
 Read and forward to key clients
 Quarterly client newsletter (paper)
 Monthly tax and general newsletters
(email)

 Is a perception!
 Before, during and after
 Fee earners – the golden rule
 Under promise and over
deliver!
 Add a couple of requirements
to your accounts and tax
checklists

Clients are saying that with all the rules,
regulations and laws surrounding their business,
they feel OUT OF CONTROL
If you can add an element of stability and proactive
advice to their lives … you will ADD VALUE and
be able to offer a wider range of services to them

 You MUST widen your range from
type 1 to type 2
 Why?
 Type 1 services are price
dependent
 Type 2 services are VALUE
dependent
 VALUE = PROFIT

 Tax planning?
 Wealth management?
 Mortgages and general insurance?
 Payroll and management accounting?
 Strategy days?
 Others?
The key is what ADDS VALUE
to your clients!

 Targeted
 Pre year end
 HMRC led
 Ad hoc
Do not become a “Jack of all trades” – EGO vs RISK
Build relationships with specialists

 R & D Tax Credits
 CA on property (topical now)
 Find out if your client meets criteria
 As you prepare accounts extract information
or review database as a separate exercise
 Discuss with client

 Basic planning is about communication
 -3 months before the year end – contact
client and lay out options and offer
planning meeting
 DO YOU HAVE A SYSTEM?

 Enquiries and Investigations
 PAYE / VAT etc. compliance visits
 Changes in tax laws / case results
 Tax fee protection
 Specialist support essential

 Tax strategies
 Reputable supplier?
 Due diligence
 IMPORTANT – educate yourselves on the
options available, clients will expect you to know
about these strategies
 DO NOT PRE-JUDGE CLIENTS

 Watch 2020 webinar programme
 The key to your future success
 Revenue streams
 Basic pension, protection and investments
 Specific planning
 YOU MUST KNOW ABOUT THE SPECIALIST
AREAS OF PLANNING
 They add huge value

 Auto enrolment
 Clients need help – refer EARLY use the 2020
Auto enrolment action pack
 Annuities
 Pre retirement planning report
 Final salary schemes
 RPI or increased pension – project work

 20% off Towergate's income – G.I.
 Widens your service offering
 Low cost entry to you
 Extract information as you do accounts
 Ask client if they would like an
alternative quote
 John Charcol mortgages – similar
arrangement

 Clients want a wide range of
Proactive advice
 The key is your team and systems for
extracting the information from client files
 Educate your team, let clients know about
these services and refer on to a specialist

Push:
 Seller led
 1-Way
 Interruptive
 Repetitive
 Outbound
 Fast-Forward

Pull
 Customer led
 Research
 Interactive
 Reputation
 Inbound

You need to control how your customers
and prospective customers think and feel
about your business in comparison to
other, similar businesses competing for
their attention.
Dan Kennedy

Web
Footprint
Content
Activity
Reputation

Investment in
Content
Marketing &
Earned Media

Video
 YouTube
 Answer FAQs
 Web footprint

Blogs
 FAQs
 1 per week
 Repurpose content
 Interviews/Podcasts/Videos
 Boosts SEO
 67% Increase in leads!
Farotech.com

 Social Media in 10 minutes
 Share
 Like
 Follow
 Retweet
 What happens when you share?
 Systemise it!

 Reputation
 Testimonials 2.0
 5+ calls/week
 Web footprint
 But…
 Double edged

 You MUST be MOBILE
 57% WON’T recommend
companies with a poor
mobile website
 1 in 4 searches are
mobile
 Responsive Design
Source: http://www.mediabistro.com/alltwitter/mobile-marketing-stats_b54513

• Visits, fans, followersReach
• Shares, Comments, LikesAct
• Download, request infoInteract
• PurchaseConvert
• Repeat, ReferEngage

Automatically!
 Drip, drip, drip
 Create the campaign
 Fire and forget!
 Monitor, measure, react

Register
 Welcome to the firm
 Newsletter
 Download a free report
 Follow us on social media
 Watch this video
 Attend this webinar
Clients
Prospects
Leads

Register:
Newsletter
Day 1: Welcome
Day 4: Industry Report
Day 12: Top 10
Day 20: Video

Direct Mail
Newsletters
Telemarketing
Pop-Up Ads
Yell.com
Advertising
Blogging
Opt-In
Public Speaking
Pay-Per-Click
Education
Word-of-Mouth
Pull Push

Direct Mail Works
 Target the Audience
 Unique Call to Action
 57 Ways to Grow Your Business
 Industry Report
 Free Download
 Phone follow up

Email Newsletters
 Target the audience
 Unique Call to Action
 57 Ways to Grow Your Business
 Industry report – ProfitCents
 Very measureable

 Seminars
 Regular – monthly or quarterly
 Back of the room offer
 Included in Fixed Price Agreement (FPA)
 Leverage content
 Webinars

You need a strategy
 A blended approach: Push AND Pull
 Coordinated approach
 Blogs, videos, offers, calls to action
 Monthly/Quarterly themes
Q 1 Q 2 Q 3 Q 4
Strategic Planning Insourcing Succession Planning Tax Planning

 MUST be DEDICATED
 Marketing Assistant/ Coordinator/ Director
 Get direct mail lists
 Plan and coordinate letters,
tax organisers & postcards
 Get 57 Ways published
 Get scripts to everyone
 Schedule social media,
connect, follow and
promote
 Get partners and managers
to lunch
 Write thank you cards
 Track and report the
numbers
 Update the website

 Build Your Web Foot Print
 Blend Push and Pull Tactics
 Content is King
 Systemize Social Media
 Take Charge of Your Reputation
 Be Mobile
 Measure, Monitor, React

 Gartner Report
Nexus of Forces
(June 2012)
 Four key areas
converging and
overlapping

 Mobile!
 Biggest change to the way we live
 Mobile devices – laptops, mobile phones,
iPad, Nexus 7

 The office equivalent of the Swiss Army
Knife?
 ………………………?
 The iPad
 ICAEW IT Faculty blog posting – February
2014

 Faxes – eFax.co.uk
 Take payments – next slides
 Notes – handwritten, typed,
 Dictation
 Library – books, magazines, articles
 Access the office – (fully hosted) RDP software

 HopTo – edit Microsoft documents on iPad –
files in DropBox or on PC for example
 2020 Business Profitability Analyst (search
iPhone apps)

 Google Wallet – allows Android users to
pay for purchases online and in stores with
the phone
 Contactless payment cards

 Take Credit Cards
on your mobile device
 iZettle
 Intuit Pay
 Payleven
 Amazon
www.izettle.com

 Credit Cards on your website
 Credit cards – on your iPad / iPhone
Eway.co.uk

 GOCARDLESS
 Set up in 5 minutes!
 Integration with Xero and
now Sage Line50
bit.ly/cardlessdd

 Aurasma – augmented reality
 Business use – see
partners on web page
 Similar products –
Blippar, Wikitude
aurasma.com/partners/

 Glover Stanbury & Co
 QR Code
 Aurasma

 PowerPoint – save as video file then use
Microsoft Movie Maker – free download
 Do you have a YouTube Channel?

 Google Search in
iTunes
 Image recognition
app
 Search internet by
taking a picture
 Recognises QR
codes

 How mobile friendly are you –
or your clients?
 Is your website mobile friendly?

 Facebook
“Check in”
 Appear in friend’s
feeds
 FourSquare

 Social Media
 Facebook Fans
www.socialbakers.com
also visit for Twitter,
YouTube, Google+ statistics

 Average age of Facebook users?
Depends where you look….41
 Average age of Twitter users?
37

 Populate Facebook (company page),
Twitter, Google+ and LinkedIn (company
page) using one product
 bufferapp.com

 Feeds -news, blogs, video, photos….
 Collate/aggregate feeds from various
sources of interest in one place
 FlipBoard app, Bloglines, Feedly,
Pinterest
 Repost from Feedly direct to Buffer

 Recommended Book
 http://bit.ly/bussocial
(Kindle)
 Michelle Carvill –
Made Simple Group

 Cloud is everywhere – and
for everyone
 Storing and accessing data
and programs over the
internet instead of your
own computer

 Who is not using at least
one “cloud” application?
 By end of 2013 it was
estimated that more than
75% of UK businesses
used cloud services

Replace:
 Software
 File storage
 Email servers and exchange
 Platforms
……..With cloud technologies

 Superfast Broadband
 Check at:
www.superfast-openreach.co.uk/where-and-when/
 4G…..

 Google Apps vs. MS Office 365..?
 Comparison chart – downloadable in
Excel format
 tek.io/15DqA2i

 Zapier https://zapier.com
 Over 250 cloud products
 Automate tasks
 2892 pages of predefined links
 Take a voice note from Google Glass to
Google Drive
 Create Evernote note of new Dropbox files

 Big Data is the term for a collection of data
sets so large and complex that it becomes
difficult to process using on-hand database
management tools or traditional data processing
applications.
 90% of World's Data Generated Over Last Two
Years
 Creating 2.5 billion GB of data every day

 Every Minute….
 Infographic
http://bit.ly/18JQ66O
 Google – 2m searches
 47,000 apple app
downloads
 34,722 Facebook “Likes”

 Tesco – 15 years
research
 Monitor weather
 Temperature goes from
20c to 24c then sales of
hamburgers will
increase by 42 per cent

 “Big Data” for Small Businesses
and Consumers
 Accountingweb.com (US version)
article
http://bit.ly/1aqHVDc

 BusinessToolsPlus.co.uk
 Database of products, software, books, hints,
tips, blogs – everything IT related for business
 FREE unlimited access for 2020 members
 Obtain your access code from
membership@the2020group.com

 IT for the small accounting
practice - ICAEW
 http://bit.ly/SV0rWZ

 Created by The ICAEW IT Faculty
 A set of resources to help all those who use Excel.
 Hundreds of articles on the practical use of Excel.
 Periodic webinars on Excel topics.
 Community members can request help on Excel.
 £55 pa or free to members of the IT FAculty
 bit.ly/ICAEWExcel

 Improving efficiencies in the
accounting practice
 Paperback
http://amzn.to/11SZHbB
 Kindle http://amzn.to/Ukfixg

Slight Edge Theory
JDI

 Be clear about the goals
 (And they know about the specific activities)
They do it !!
 Focus on the wildly important goals as this
gives focus

Focus on the “Wildly Important”
 Common Thinking:
We can effectively accomplish 6, 8, or even 10
important goals at once with excellence.
 Reality:
The more we narrow our focus the greater our
chances of achieving our goals with excellence.

 Important Goal
A goal with significant consequence or value.
 Widely Important Goal (WIG)
Our most leveraged goals. Goals that drive our vision,
make all the difference, and that take us to a new level.
Perhaps, failure to achieve these goals renders any of
our other achievements inconsequential.

 Identify what’s widely important
 Focus significant activity and resources on
it

“I believe that this nation should commit itself
to achieving the goal, before this decade is
out, of landing a man on the moon and
returning him safely to the earth.”
President John F. Kennedy

I believe we possess all the resources and talents necessary. But the
facts of the matter are that we have never made the national decisions
or marshalled the national resources required for such leadership. We
have never specified long-range goals on an urgent time schedule, or
managed our resources and our time, as to insure their fulfillment.
This decision demands a major national commitment of scientific and
technical manpower, materiel and facilities, and the possibility of their
diversion from other important activities where they are already thinly
spread. It means a degree of dedication, organization and discipline
which have not always characterized our research and development
efforts.”
President John F. Kennedy

“I have never encountered an executive who
remains effective while tackling more than
two tasks at a time.”
Peter Drucker - Management Guru
Harvard Business Review, June 2004

Firm Level WIGs
3 WIGs2 WIGs3 WIGs
Financial
Services
Auditing & Accounting Tax
2 WIGs3 WIGs3 WIGs
Client retention Motivated people WIG 3
ManufacturingConstruction Professional
Services

 Create a compelling scorecard
 Have a highly visible scoreboard of the
critical few measures that motivate our
players to win!

Create a compelling Scoreboard
 Common Thinking:
Once we have communicated the goal people will
know we are serious about it.
 Reality:
They won’t believe we’re serious until we start
keeping score.

 Lagging - measures provide an historical look at past
performance.
 Leading - measures provide indicators that are predictive
of future results.
 Must drive the lag measures
 Should be sensitive enough to move every week
 Behavioural, not “quick lag” measures
 Real time - measures show where things are right now.
They allow corrective action to be taken immediately to
affect the outcome.

Lag Measure Lead Measure
Predictive of the Goal
Easier to Influence
Measures Goal Achievement
Harder to MeasureEasier to Measure
Difficult to Influence
Client Retention + Client “touches”
Revenue WIP
Profit Number of Strategic Reviews

Personal Scoreboard for Jeff Pawlow
Recovery Debtor Aging

Think Differently and Translate New Goals
Into Specific Actions
 Think “new and better” and have a process for
individually selecting and activating the critical
few weekly objectives that will drive the goal.

Common Thinking:
 The best ideas come from the leaders.
 If people know the goal and see the scoreboard, they will
know what to do about it…and do it….
Reality:
 The best ideas come from interaction between leaders and
the front line
 Goals will never be achieved until everyone on the team
thinks critically about what must be done to achieve goals
and then does it.

Key Questions…
 Do you think “new and better”?
 What are the three most important
things I can do this week to impact
the scoreboard?

 “New and Better”
 Einstein’s definition of Insanity?
"Insanity: doing the same thing over and over
again and expecting different results."
Albert Einstein

Is your week happening to YOU…
or are YOU happening to your
week?

M T W Th F Sa Su

3 Team Goals
1
2
3
1_______________
Increase Number of
Referral Sources
2_______________
3_______________
Identify 3 New
Sources
2 referral
meetings
Nat West bank
8:00
Monday Tuesday Wednesday Thursday Friday
10:00
9:00
1:00
11:00
2:00
12:00
3:00
4:00
Nat West
ID 3
Sources
Taylor
Assoc.
Meeting
Nic Jones
Meeting

2020 Spring Conference 2014Discipline 4
Hold each other accountable all the time
 Have a process for reporting to each other
on the critical few weekly objectives that
will drive the goal.

2020 Spring Conference 2014Discipline 4 - Accountability
Common Thinking:
As long as goals are clear and compelling, and people
know what to do to achieve them, they will remain focused
and committed to doing it.
Reality:
The certainty of weekly accountability to the team
ensures focus and commitment.

Clear about
“the goal”
They do it
know activities
and actions
1. Focus on the Wildly Important

Clear about
“the goal”
They do it
know activities
and actions
2. Create a Compelling Scoreboard

Clear about
“the goal”
They do it
know activities
and actions
3. Translate Goals into Specific Action

Clear about
“the goal”
They do it
know activities
and actions
3. Translate Goals into Specific Action
4. Hold Each Other Accountable All The Time

Goals
Score Carding
Specific Actions
Accountability

47
“We must all inevitably suffer from
one of two pains. Either the pain of
discipline or the pain of regret!”
Jim Rohn - Business Philosopher and Speaker

159
“The critical ingredient is getting off your butt
and doing something. It's as simple as that.
A lot of people have ideas, but there are few
who decide to do something about them now.
Not tomorrow. Not next week. But today.”
Nolan Bushnell - Founder of Atari Computer
55

“The nicest thing about not planning is that
failure comes as a complete surprise
rather than being preceded by a period of
worry and depression.”
Sir John Harvey-Jones

Are they clear
about “the
goal”?
Do they know what is
most important?
1. Clarity

Are they clear
about “the
goal”?
Do they know what to do
and how to do it?
1. Clarity
Do they know
the critical
activities?
2. Translation

Are they clear
about “the
goal”?
Are they committed to the goal
and their role in it?
1. Clarity
Do they know
the critical
activities?
2. Translation
3. Commitment

Are they clear
about “the
goal”?
Do we make it easy
for them?
1. Clarity
Do they know
the critical
activities?
2. Translation
3. Commitment
Do they
Do It?
4. Enabling

Are they clear
about “the
goal”?
Do we work effectively
together?
1. Clarity
Do they know
the Critical
Activities?
2. Translation
3. Commitment
Do they
Do It?
4. Enabling
5. Synergy

Are they clear
about “the
goal”?
Do we hold each other accountable
all of the time?
1. Clarity
Do they know
the Critical
Activities?
2. Translation
3. Commitment
Do they
Do It?
4. Enabling
5. Synergy
6. Accountability

6 root causes for failing to implement
Clarity
Specific
Actions
Leads to Commitment
Synergy
Enabling – ‘Busy’
Accountability

2020 Spring Conference 2014 - Engines of Future Growth

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2020 Spring Conference 2014 - Engines of Future Growth