GGN GROUP, LLC
Results Through Change™
Strategic Accounting
MACE December 2012
Mark Nelson
&
Dan Gomez
GGN Group
Three Things You Should Know About GGN
1. We are a group of business owners and
executives with a history of starting,
building and managing companies.
2. Our clients are business owners who
want an outside perspective on making
significant changes
3. We use disciplined and proven
management processes to get results
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Definition - Accounting
• Practice and body of knowledge
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–
–
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Methods for recording transactions
Keeping financial records
Reporting and analyzing financial information
Advising on taxation matters
Where the rubber
meets the road
• Accounting provides information on
–
–
–
Resources available to a firm
The means employed to finance those resources
The results achieved through their use
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Definition – Strategy
• The art and science of enabling an
organization to achieve its objectives
• A long term plan of action designed to
achieve a particular goal(s).
• A series of top-level management decisions
which help navigate the direction of the
corporation
Where the rubber
meets the sky
Strategy answers the question of how a
company will deliver its value proposition to
its customers
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Accounting & Strategy
At the Intersection of Strategy and Accounting
is Measurement
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• Balanced Scorecard
– Management system
– Translates strategy into measurable
actions
– Integrated set of performance
measurements that require
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Data gathering
Measuring
Analysis and interpretation
Communication
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• The Role of Accounting
– Identify measurements
– Collect and record data
– Verify, summarize and interpret data
– Report and communicate results
Definition of
Accounting
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Balanced Scorecard Overview
• View and measure organization from four perspectives
– Financial
– Customer
– Business Process
– Learning & Growth
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Three Strategic Themes
Customer Intimacy
Innovation
Efficiency
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Actual Case
The Law Firm
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Case Facts
• The firm has been in business for more than 25-years
• Many of the firm’s practice areas are highly competitive
• Much of the billings are contingent fee based. It’s either
“feast or famine”.
• There is now a sense of urgency to build sustainable and
transferable firm value.
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Goals and Strategies
• Overall goals:
– Create a business model with a more predictable
revenue stream
– Increase annual billings by XXX% over the next
three years
• Strategic Theme – Client Intimacy / Efficiency
– Make it easy
– Do it quickly
– Keep it affordable
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Vision and Mission
Vision – How we define success
Our firm will be the region’s preeminent provider of
We will be the firm that others refer their clients to.
Mission – What we get paid to do
Our mission is to help people successfully deal with
crisis
The Law Firm– Strategy Map
Financial
Perspective
Significant growth in
Niche Specialty Market
Create sustainable and
transferable firm value
Client Delight – Make it quick, easy, effective
Client Perspective
Our Value Proposition
Process
Perspective
How we deliver value
Learning &
Intangibles
What knowledge do we
need to operate our
processes
Deal with
the Crisis
ASAP
Quick and
Easy Intake
Continuous
Employee
Training
Value
easily
understood
Quick and
Easy to
Implement
Continuous
Process
Improve
Awareness
Education
Scorecard
Perspective
Objective
Measurement
Targets
Financial
•
•
• Partners compensation
• $XXX thousand annual
compensation
• $X.X million total
revenue
Predictable positive cash flow
Increased revenue
• Total firm annual revenue
Client
• Make it easy for clients
• Make it valuable
• Client closes per month
• Revenue per case
• Average X per month
• Average $X per case
Initiative
Reference
Scorecard
Perspective
Objective
Measurement
Targets
Process
• Educate and build awareness with
aggregators
• Number of referrals
• 50-referrals per
month
• Effective intake process
• 5-days
• Quick and Easy resolution
• Days between intake and
decision on qualification
• Days to resolve case
• “Productize” the process
• Professional time per client
• Not to exceed 8
hours
• Best known “Brand”
• Hits to web site
• Public relations (i.e.
published articles or
whitepapers)
• 5,000 per month
• 4 published articles
per year
• SME Certification
• legal staff certified
• 100% of legal staff
certified
Learning
• Total elapsed time
is 60 days
Initiative
Reference
Summary
Accounting information plays a key role
in strategic planning especially when it
comes to measurements
Measurement is critical to transforming
strategy into actions
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Mark Nelson
(215) 266-0050
[email protected]
Dan Gomez
(610) 715-8289
[email protected]
www.ggngroup.com
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