BESTPRACTICES 2013
DEVELOPING THE BENCH INTO STARTERS
PRESENTED BY TIMOTHY J. BARTZ
DIRECTOR AT UPSTREAM ACADEMY, LLC
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
1
“The growth and development of people is the
highest calling of leadership.”
Harvey S. Firestone
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
2
It’s one thing to identify the
people you feel could be on
the bench. The challenge
really comes in taking a
leave nothing to chance
approach to developing them
into the partners they need
to be to take over the reins of
the firm.
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
3
Discussion Agenda
1. Developing “True Professionals”
2. The Big Four
3. The Path and Commitment to Advancement
4. Helping Bench Players Think Like Starters
5. Firm vs. Outside Development
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
4
 DEVELOPING “TRUE PROFESSIONALS”
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
5
Developing “True Professionals”
“It is the combination of
enforced, common, agreed-upon
values, together with the
existence of helpful coaches,
that will restore teamwork to a
professional firm.”
David H. Maister
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
6
Important Values
1. “Professionals agree to be coached and
managed to strictly enforced, agreed-upon
standards;
2. Teamwork is mandatory, not optional.
3. Continual investment must be made in
getting better as a team;
4. Excellence in wise management of client’s
resources and firm’s finances;
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
7
Important Values
5. Excellence in client satisfaction;
6. Excellence in managing those
you supervise;
7. Personal professional growth is
a non-negotiable minimum
standard;
8. Show a sincere interest in
clients’ affairs and a sincere
desire to help them;
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
8
Important Values
9.
Departmental resources are considered
collective assets and cannot be allocated
autonomously;
10. Primary focus is on relationship building;
and
11. Intolerant about the pursuit of excellence.”
David H. Maister
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
9
Back to Basics
The items Maister discusses are
his words and need to be
adapted to your firm situation.
The principle is this: Bench
players seeking to become
starters will seldom have success
if they are not instructed in and
held to high standards.
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
10
Observation
Many firms are focused on numerical standards
only. The challenge with this approach is it’s
more like a law than a principle.
Laws
Principles
Designed to punish Designed to teach enduring
for failure to comply truths and keys to success
Specific and leave
people looking for
loopholes
BESTPRACTICES CONFERENCE 2013
Holistic and can be applied
in a wide variety of
situations
© 2013 UPSTREAM ACADEMY, LLC
11
 THE BIG FOUR
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
12
The Big Four
In developing the next generation of leaders,
firms can focus on four areas to get people
engaged at a high level.
If a person has a reasonable level of technical
expertise, mastering these skills will enable any
young professional to have success throughout
her/his career and be a welcome addition to any
partner group.
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
13
The Big Four
1. Developing Business
2. Becoming a Most Trusted Advisor
3. Institutionalizing
4. Leveraging
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
14
1. Developing Business
Ownership groups always find
value in adding those who help
grow the net revenues of the
firm.
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
15
1. Developing Business
We do a great disservice in our responsibility to
develop the bench when we do not have a
specific plan to help people learn the skill and
discipline of developing business.
Like anything, this comes easily to some and
will require great effort on the part of others.
The areas we need to teach are the same.
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
16
1. Developing Business
• Explain that professional service firms excel
when they build and maintain strong personal
relationships with key decision makers.
• Help individuals learn to identify and provide
solutions in all situations (i.e., behave as if
they’ve been engaged already).
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
17
1. Developing Business
• Teach them to provide services to the right
clients – not just any client.
• Explain that it’s about time. Later in their
careers, they might expect the phone to ring
based on reputation. When they’re starting out,
they need to invest time in building
relationships and helping. Twenty to twentyfive percent of non-billable time should be
spent in developing business.
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
18
1. Developing Business
• Teach them to measure
their results based on
new services and new
clients billed and
collected, not on what
the potential totals will
be.
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
19
2. Becoming a Most Trusted Advisor
Individuals who learn to excel in the role of
trusted advisor bring great value to the
organization and to their personal careers.
Taking on the role of trusted advisor moves
professionals away from a focus on OUTPUTS
and toward helping clients achieve desired
OUTCOMES.
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
20
2. Becoming a Most Trusted Advisor
“A common trait of all these trusted advisor
relationships is that the advisor places a higher
value on maintaining and preserving the
relationship itself than on the outcomes of the
current transaction, financial and otherwise.”
David H. Maister
Charles H. Green
Robert M. Galford
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
21
2. Becoming a Most Trusted Advisor
Teaching trusted advisor skills requires firm
leaders to focus on:
1. Helping CPAs grow the breadth of their
knowledge of business in general
2. Helping professionals grow their consulting
skills (i.e., learning to listen and ask insightful
questions in an effort to help the client
determine the best solutions)
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
22
2. Becoming a Most Trusted Advisor
3. Teaching the principles of
creating client service plans
and a raving fan strategy for
the A- and B-level clients
they serve
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
23
2. Becoming a Most Trusted Advisor
4. Teaching processes to move C-level clients to
B- or A-level or transition them to someone
who has the time to serve them
5. Teaching processes to remove D-level clients
so attention can be focused on the firm’s best
clients
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
24
2. Becoming a Most Trusted Advisor
“It is hard to convince a client that you care about
his or her business when it is evident that you
don’t know what’s going on in it.”
David H. Maister
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
25
2. Becoming a Most Trusted Advisor
Individuals who become
trusted advisors will always
have work to do for clients
they enjoy serving and who
bring great value to the firm.
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
26
3. Institutionalizing
Institutionalizing knowledge and processes is
the art of building something of quality that is
greater than any one individual and stands the
test of time.
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
27
3. Institutionalizing
It’s great when a firm finds stars uniquely
qualified to perform professional services. The
firm gains a competitive advantage in serving
clients and often generates valuable fees.
But it’s a disaster to manage and often results in
frustration on the part of the individual and the
firm.
Loners generally do not make good partners.
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
28
3. Institutionalizing
The firm must maintain that you don’t bring
value unless you can develop something
enduring that becomes part of the firm’s DNA.
Businesses, like teams, might have short-term
success with superstars, but they don’t become
high performance or win championships unless
they can find ways to expand the capabilities of
their people so the organization can function as a
well-designed unit.
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
29
3. Institutionalizing
The art of institutionalizing knowledge and
processes is achieved when individuals:
a. Develop others by sharing their passion and
knowledge with the idea of taking a service
area to volume with a team of people to
provide the service
b. View activities as processes and develop a
written path for continued application
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
30
4. Leveraging
Leveraging requires an individual to focus on
getting the most value from the effort expended.
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
31
4. Leveraging
“The objective of Quadrant II management is to
manage our lives effectively – from a center of
sound principles, from a knowledge of our
personal mission, with a focus on the important as
well as the urgent, and within the framework of
maintaining a balance between increasing our
production and increasing our production
capability.”
Stephen R. Covey
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
32
4. Leveraging
Leveraging can take many forms:
1. Developing a service that can be applied to
multiple clients at a profitable rate without
the full effort expended the first time
2. Identifying the various elements of an
engagement and ensuring individuals are
performing the various functions at their pay
grade
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
33
4. Leveraging
3. Teaching someone to do something you
normally do so they can do it in the future
and you have minimal time investment
4. Managing a number of clients and
responsibilities by managing the priorities
and activities of those around you
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
34
 THE PATH AND COMMITMENT
TO ADVANCEMENT
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
35
Understand the Advancement Path
Bench players need a clear
understanding of the
advancement path within the
firm. Too many firms are on a
time in grade plan to the level
of manager and then without
definition following that.
Neither of these will excite high performers.
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
36
The Problem
When firms identify talent, it seems amazingly
difficult to accelerate their advancement and
even more challenging to make an ownership
commitment to them.
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
37
Path to Advancement
Unless you have some other well-defined system
for evaluating talent, we recommend you
consider the balanced score card approach where
individuals are evaluated as if they were partners
already. Coach them and push them to get to the
performance level of a partner and then commit
to providing ownership once they are there.
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
38
 HELPING BENCH PLAYERS THINK
LIKE STARTERS
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
39
Thinking Like Starters
In sports, those who
have been designated
as starters are
engaged. Practice
and games are
generally all about
them.
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
40
It’s About Attitude
Watch the sidelines at almost any sporting event.
Notice the players who are ready and anxious to
be in the game. Also, take note of those who are
suited up but clearly disengaged. There is such a
difference in attitude and demeanor. Those who
want to be in the game are thinking like starters.
They are trying to figure out how to get into the
game and make a difference.
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
41
The Bench Role
If someone is on the bench,
she/he can be made to feel
insignificant and expendable.
The primary role of those on
the bench is to get the starting
team ready for the game and to
be ready should they be asked
to enter the game.
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
42
Engaging the Bench
The challenge for firm leadership is to engage
the bench and help them to begin thinking as if
they are the key players in the operation of the
firm. This takes some thought and
encouragement.
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
43
Engaging the Bench
Bench players need to realize it’s hard to be
viewed as a leader if you do not contribute
thoughts and actions that provide viable
solutions for client and firm issues.
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
44
Engaging the Bench
Coaches and leaders can help these individuals
by:
• Involving them in select leadership meetings
• Seeking their input on client and firm matters
• Providing constructive feedback on their
participation and how to improve
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
45
 FIRM VS. OUTSIDE DEVELOPMENT
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
46
Firm vs. Outside Development
Developing the bench is
often pushed to outsiders
with little connection to the
firm. It’s like sending your
kids away to boarding
school and hoping they will
return as fully-developed,
well-adjusted young adults.
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
47
Firm vs. Outside Development
Outside programs provide a valuable service:
• Expose young leaders to new thoughts and
information on firm operations
• Inform participants of expectations of
stakeholders and how they can provide the
most value to the firm
• Provide a vehicle for participants to develop
new relationships with other young leaders
from around the country
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
48
Firm vs. Outside Development
Since most firms aren’t large enough to warrant
an internal leadership program, programs like
Upstream’s Emerging Leaders Academy and
other association programs provide valuable
opportunities to develop the next generation of
leaders.
To be most effective, an outside program must
facilitate a strong bond between the participant
and firm leadership.
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
49
Firm vs. Outside Development
Firms cannot assign their
responsibility to work with
the bench entirely to
outsiders. Each firm is
unique, and firm leadership
has to help explain the firm
culture, ownership dynamics,
governance, compensation
and leadership needs.
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
50
Firm vs. Outside Development
As an example of this combined firm and outside
development, ELA requires a guide to be
assigned to each participant in the program. The
guide is charged with discussing each of the
monthly presentations with the participant to
determine what he/she personally got from the
information shared. The guide also helps
determine how this information fits in with the
firm’s perspective, processes, etc.
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
51
Firm vs. Outside Development
In addition, participants in ELA must identify
projects related to the needs of their firm and
complete these on an annual basis. This allows
the firm to have top performers working on
important projects while giving these
participants valuable feedback on the work they
completed in a leadership role.
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
52
Firm vs. Outside Development
Regardless of where firms
choose to send professionals
for advanced leadership
development, they must stay
involved to make sure the
information shared in the
training is applied to the
participants’ work and meshes
with any unique firm aspects.
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
53
Conclusion
Developing the bench into starters requires a
process. The process is purposeful. It is
proactive. It is personal. It is pragmatic. It
prods. It pushes. It provokes. It provides
results.
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
54
Conclusion
Those on the bench must:
1. Know what it means to be a “True
Professional”
2. Become excellent in the Big Four
 Developing business
 Becoming a most trusted advisor
 Institutionalizing
 Leveraging
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
55
Conclusion
3. Understand the path to advancement
4. Understand the unique culture, values and
processes of the firm
5. Receive specific instruction in growing
themselves as leaders
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
56
Conclusion
“Leadership is lifting a person’s vision to higher
sights, the raising of a person’s performance to a
higher standard, the building of a personality
beyond its normal limitations.”
Peter F. Drucker
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
57
 QUESTIONS & ANSWERS
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
58
Thank you!
Tim Bartz
[email protected]
BESTPRACTICES CONFERENCE 2013
© 2013 UPSTREAM ACADEMY, LLC
59