At the Crossroads: The Remarkable CPA Firm that Nearly Crashed, then Soared - Hardcover

Crosley

Hardcover

ISBN 10: 0470148179 ISBN 13: 9780470148174

Publisher: Wiley, 2008

Synopsis

If you'd like to know how to change your underachieving firm, At The Crossroads: The Remarkable CPA Firm That Nearly Crashed, Then Soared may hold the key to a bright new future. This innovative book is told in story form, drawing the reader behind the scenes of a dysfunctional team that applies Crosley?s Practice Growth Model to overcome the defects to produce a highly functional team.

About this title

About the Author

Gale Crosley, CPA, is founder and principal of Crosley+Company, which specializes in "the business discipline of practice growth." She has consulted with dozens of CPA firms on revenue growth issues and opportunities, and designing strategies and tactics for achieving aggressive revenue growth objectives. She transfers knowledge involving opportunity development, marketing, and service line management to managing partners, partner groups, marketing directors, and staff. Her approach is designed to generate optimal revenue from every aspect of the practice. Gale lives in Atlanta with her husband, Steve, and their children.

Debbie Stover is a freelance writer withextensive writing and publishing credentials. She lives and runs in St. Louis, aided by her partner, Chris, and their mostly furry family.

From the Back Cover

Praise for At the Crossroads

The Remarkable CPA Firm that Nearly Crashed, then Soared

"Here's a bird's-eye view as told from the inside of exactly how a CPA firm went from a five percent growth rate to a twenty percent growth rate. You'll find it hard to believe this is a work of fiction, since its message is so true."
―Stuart Kahan, Executive Editor, CPA Wealth Provider

"Using a brilliantly realized novelistic approach, the authors, with rare understanding of therelationship between managing a professional firm and marketing, break through the long standing resistance that firms have to change. A remarkably successful and profoundly useful work for both professionals and marketers."
―Bruce W. Marcus, Editor, The Marcus Letter on Professional Services

"Every reader will see themselves or someone they know in Crosley's compelling first book about a CPA firm doing it right."
―Allan D. Koltin, CPA, President and CEO, PDI Global, Inc.

"There isn't a partner out there who won't recognize themselves somewhere in this book. GaleCrosley takes the reader by the hand and sometimes by the neck down the path to becomea remarkable CPA firm. Read this book with an eye toward learning and you will see what I'mtalking about."
―August J. Aquila, CEO, Aquila Global Advisors LLC and Chantrey Capital Advisors, Inc.

"At the Crossroads: The Remarkable CPA Firm that Nearly Crashed, then Soared is a compelling fable with an inspirational lesson for every CPA firm. It's an entertaining page-turner of a novel that shows how a little vision, courage, and knowledge can transform any group of also-rans into a team oftrue champions. More than merely a lesson in business, Gale gives us a lasting lesson in life. Everymanaging partner should take a dose of this book each morning before going into the office.Every aspiring CPA should embrace the message. They won't succeed without it."
―Rick Telberg, CEO, Bay Street Group LLC

From the Inside Flap

At the Crossroads

The Remarkable CPA Firm that Nearly Crashed, then Soared

Joe Abriola has a problem―a big problem. Managing partner of a prosperous Minneapolis CPA firm, Joe has just learned that his partners are on the vergeof mutiny. Why are they so upset? It's him!―or, rather, it's the way he's let their practice slide intocomplacency. Why are other CPA firms growing so fast when theirs isn't?

The partners want answers―fast. If not, Joe may find himself out in the cold . . . and it gets awfully cold in Minneapolis in the winter. What will he do?

What Joe does forms the backbone of this delightful new growth parable from Gale Crosley and Debbie Stover. In years of teaching CPA firms how to grow, Crosley―who heads Crosley+Company, an Atlanta-based CPA consulting firm―has developed a dynamic approach called the Practice Growth Model.

In At the Crossroads, that model gets put into place, and in the process, we learn what it takes to transform a sleepy, uninspired CPA firm into a powerhouse. Will all the partners survive? Will Joe survive? What about know-it-all Frank, too-lofty-to-care Charles, orcounting-the-days-till-he-retires Harold?

And what about the staff? The business developer who dresses like a dream but doesn't have a clue about bringing in business . . . the marketing director the partners won't take seriously―even the mailroom guy gets in a few licks!

Does this firm, with its head in the sand, blithely ignoring the complexities of a changing marketplace, look anything like yours? Would you like it to? Especially when the makeover is complete, and they're chalking up phenomenal growth, with a win rate on highly qualified opportunities of seventy percent?

If your firm is underachieving or growing inefficiently, and you'd like to know how to change all that, At the Crossroads may hold the key to a bright new future.

Excerpt. © Reprinted by permission. All rights reserved.

At the Crossroads

The Remarkable CPA Firm that Nearly Crashed, then SoaredBy Gale Crosley Debbie Stover

John Wiley & Sons

Copyright © 2008 Gale Crosley
All right reserved.
ISBN: 978-0-470-14817-4

Chapter One

NO DISCIPLINE, NO GROWTH

Some Bad News

Joe Abriola looked up from his desk as his favorite "son" in the firm, Eric King, slipped quietly into the room and took a seat.

Joe leaned back, linking his hands behind his head. "What's going on, Eric?"

Eric leaned forward, brought his hands up, and opened his mouth, but no sound came out at first. Finally he shook his head and spoke. "I feel bad about telling you this, Joe. I want you to know that up front."

"What's the problem?" Joe asked. "Is it a client?"

"No," Eric said, and then the words came skittering out of his mouth in a terrible rush. "It's the partners. It's a problem with the partners. You've got a great big problem with your partners." Eric paused. "And I don't think you even know it."

The Problem

Joe had leaned forward in his chair as Eric spoke, but now he settled back cautiously. "No," he said at length, "I'm not aware of any problem with the partners. What kind of problem?"

Eric took a moment to collect his thoughts, shook his head briefly, then spoke. "Joe, I want you to know, as I said, that I feel really uncomfortable doing this. You brought me into this firm, you've given me a terrific chance to succeed here, and ... It feels, I don't know, not like disloyalty, but like ... carrying tales, maybe. But I really think you need to know what's going on, and nobody else is going to tell you. So I feel like I'm elected."

"Spit it out, son," Joe said.

"It's like this," Eric said, leaning forward again, elbows on his knees. "There are these ... I'd call them rumblings-and they're just sweeping through the partner group. I think they started with Harold and Kevin, but it seems like every day, one more person chimes in. We've got-what?-24 partners in this firm, and I swear half of them are grumbling about 'changes.'" Eric drew quotation marks around the word with his voice. "They say 'changes' need to be made. And at first it was generic, but now people are specifically mentioning you."

"All right," Joe said cautiously. "What kind of changes?"

Eric shifted in his chair uncomfortably. "To be perfectly honest, Joe, I'm afraid some of this may have started with me." Joe frowned, but Eric plunged ahead with his story.

"You remember last month, when I went to that niche meeting"-Eric had his own niche, health care, well in hand within the firm-"and they were talking about growth and comparing notes. And one guy's reporting eighteen-percent growth year to date at his firm, and the other fellow has twenty-one. One guy said his health care practice grew twenty-five percent last year!

"You remember I told you about that, right, Joe?" Eric pressed.

Joe nodded.

"Well, I mentioned it to some other people around here as well. And it turns out that I'm not the only person who's hearing it. We all know what started it-Sarbanes-Oxley back in '02-but it's gotten bigger since then, much bigger. It seems like every CPA firm in the country-or in Minneapolis, anyway-is growing like wildfire.

"But it's not just Minneapolis, because, well, you know what people've been reading over the past few months. IPA, PAR, Accounting Today, Practical Accountant-everybody reads those publications, and you know what last year's figures were, that they reported. The CPA profession had its best growth year since the late '90s, but Crandall & Potter did not."

Displaying the kind of sure-handed knowledge Joe had grown to expect from Eric, the younger man ticked off the alarming details. "Aggregate growth for the top one hundred firms of more than sixteen percent; many firms growing at well over twenty. Compared to us-we grew just seven percent last year!

"So at first it was just a couple of people talking, but then they started asking around, checking with their friends. And it sort of took on a life of its own.

"And you know how it is, there's grumbling about one subject, and then pretty soon there's something else that's wrong. And I do think, in all honesty, that in some ways they have a point. We aren't experiencing the kind of growth we could. But somehow, the problem's being simplified, and it's become you, Joe. As managing partner of the firm, you're responsible for everything, so that means you're responsible for this too."

"Specifics?" Joe asked.

"Well, everybody's got their own ax to grind. Harold, he's been threatening to retire the whole time I've been here. Well, now he's finally close enough to read the writing on the gold watch, and he doesn't like what it says. He's seen all these growth numbers floating around, and he's thinking his share of the Crandall & Potter pie isn't worth what it should be, because the pie itself should be bigger."

Eric tapped another finger as he went through the list in his head. "Kevin," he continued. "Kevin's beef, best that I can make it out, is that he's carrying his load, he's doing his share to bring in business, and what is everybody else contributing? 'I make rain; everybody should make rain!'" Eric imitated Kevin, pumping his arm and speaking in an exaggerated tone.

"Even Charles chipped in yesterday afternoon," Eric finished. "There were a couple of guys kicking around the new auditing standards that just came out, and the talk started up again. And Charles had to toss in his two cents' worth."

Joe's eyes narrowed in surprise. "Charles?"

"Yeah, I know. Charles doesn't even bother to notice the rest of us unless he has a gripe. Well, he's got one now. He was kind of light on the details, but his point seemed to be that we missed the boat on 404 work, and again, somehow, that's your fault."

Joe slapped his desk in frustration. "That was in his bailiwick-404! I asked him about it a long time ago, even pressed him on it, and he blew it off completely. Said we 'didn't need to go there.'"

"Well," Eric said, "he wishes we'd gone there now. Maybe he was just piling on, but ..." His voice trailed off.

"The thing is, Joe, I do think they have a point-at least some of them do. This firm is not growing the way it should. The opportunities are there-hey, it's like a stampede, they're coming at us so fast-and we're just not grabbing on. We're not even trying. We sit around doing the same old things, chasing leads the same old way, and making the same old excuses when we lose out.

"How are the other firms doing it? How are they racking up those kinds of gains? Do you have any idea?"

"Do You See It, Joe?"

Joe took a deep breath. As a matter of fact, he did have a pretty good idea what some other firms were doing. He'd attended an association meeting in June, and the whole focus of the meeting was disciplined growth and how to achieve it. A few key phrases floated back: best practices, disciplined growth, pipelines, revenue segmentation, product management.

Joe stirred in his chair. "Well, a number of ways, I guess. There are some new kinds of business available today, that's true. And some firms are going after them very aggressively. But that's not the way we do things here at Crandall & Potter. That's never been the way we do things."

He leaned forward to press his case. "And the way we do things is not half bad, Eric. All the partners here make a very good living. We're all in this together, we all work very hard, and everyone is more than comfortable-"

"Maybe we're a little too comfortable," Eric cut in. "Comfortable may not cut it anymore."

"Think about what you're saying, Eric! It's only been seven years since Old Man Potter died! That's the biggest transition this firm has ever gone through. I'm not sure we're ready for another major shake-up."

"Joe," Eric said, his voice trembling from the effort to speak as calmly, as persuasively, as he could, "I'm afraid you're not hearing me. This is not about whether or not people like each other, it's about business! Just look at the way things work around here. It's like all the partners are in cocoons; people barely talk to each other except to shoot the breeze. There's no rhyme or reason to our business development efforts-it's just not there. Tiff finally got the new brochure done, and it's a beauty, but there has to be more to marketing than that. And Ty. How much have we gotten out of Ty over the last twelve months?"

Joe started to say something in defense of Tiff Hollister and Ty Dukes, their marketing director and business developer, but Eric was on a roll. "Still, that's just staff, and the weight should really be on the partners' shoulders. So let's look at how our partners go about their business. First, every partner feels like he's in business for himself, so we compete against each other for clients and sometimes one partner will lock another one out of an opportunity-just to maintain control!

"There's no effective division of labor or delegation of work to junior members of the firm, so partners end up doing work like 1040s-which is a complete waste of their time-and, again, why? Just so they can maintain control over 'their' clients.

"What else does that mean? Well, for one thing, it means junior managers aren't brought along properly, aren't groomed and given increasing responsibility under the right kind of supervision.

"That's bad enough for the younger people, but from a productivity standpoint, it's disastrous for the partners. First, since they're spending so much time doing low-level work, they don't have time or energy to look for new business.

"And where does their energy go? To screaming bloody murder whenever anybody suggests that there might be a better way to do it. Remember when I proposed setting up a dedicated 'tax center' to do 1040 work? You'd have thought I'd suggested cutting off their right arms! They wouldn't even consider the idea of giving up this boring, tedious work that nobody really enjoys anyway. Why? Because these are 'their' clients we're talking about, and they're determined to hold onto every client they have with both hands!"

Joe raised a hand to interrupt, but Eric wasn't done yet. "So that's what they are doing, Joe, but let's talk for a minute about what they're not. First, they're not lifting a finger to cooperate with any marketing initiatives, and in fact the only time they stoop to acknowledge marketing is when they're throwing spitballs at it. There are some things Tiff can do, and I think she's trying to do them, but she gets basically zero help or backup from most of the partners.

"She runs an event, and they can't be bothered to follow up on the leads it generates. She sends out a letter about a tax law change, and they won't even pick up the phone to make follow-up calls. No wonder we don't get much new business!

"And it's the same thing with Ty. I'll grant you that he hasn't been a barnburner, but what chance has he had, really? The partners treat him worse than Tiff, and that's saying something. Whenever they get a good lead, they shove Ty aside as 'inconsequential.' Then, when it's time to follow up on that opportunity, they let it fall to the side because they're too 'busy.' Ty wouldn't have been too busy-it's his job!- but he's long gone from the picture by this time. And then, big surprise, some other firm gets the business. This happens over and over and over again, and the pattern never changes.

"What are we good at? Well, we're pretty good at meetings. We have meeting after meeting-hey, we get together every two or three weeks-but what do we talk about when we meet? We debate endlessly about nothing!-about which color carpet to buy, or whether to change the office hours, or how many different kinds of coffee to provide. And we can't even agree on those things!

"Nothing gets decided, or if it does, it takes forever. And you spend your time playing politician, soothing everybody's ruffled feathers about whatever's bothering them this week. It's like you're managing a major league baseball team loaded with prima donna free agents. But we are a team, or we're supposed to be. We should be working together toward a single goal: serving our clients and developing new ones. But that particular model is completely lacking here.

"It doesn't have to be that way, though. Do you know how things work at my friend Brian's firm? They have meetings every other week-same as us, pretty much-but in their meetings, they don't spend time arguing about minutiae. They go over every single lead they're chasing, and everybody pools information. They work to bring all the available information together, they develop strategy and then refine it as they go along, and they keep the focus constantly on competition and how to win. They only chase promising leads, and when they decide which partner gets to pursue a particular lead, it goes to the partner who's best qualified, not the one who happened to be lucky enough to pick up the phone when the call came in.

"Also unlike us," Eric went on, "they don't waste time writing fifty-page proposals. Instead, they use that time talking to prospects, finding out about their specific needs, so the firm can figure out how to meet them. So that process actually becomes a means of trading information and building trust with prospects. They have a disciplined approach to pursuing leads; there's nothing at all haphazard about it."

Joe started to speak once more, but Eric again held up a hand. "I'm almost done; just let me finish this thought."

Eric took a deep breath. "Finally, when clients do come onboard, they don't 'belong' to any partner, they belong to the firm.

"And that's about it.

"So, as I said, that firm has a plan, they have a strategy, and it works.

"Do you see anything like that happening here?"

* * *

"What do you want me to say, Eric?" Joe asked, pushing back from his desk and standing. "You say-the partners say-they want changes, but I tried to get this bunch to make changes once, remember? I told them I wanted to give up my book of business to manage the firm full time. They said no, remember?"

"Maybe that change is part of the answer," Eric replied evenly. "But it can't be all of it, because it doesn't address all the problems. What we have here is a bunch of guys who basically do two things. They either hunker down in their offices filling out low-level tax returns, or they run around playing golf and chasing off to lunches that lead nowhere.

"In fact, I'm afraid that's a pretty good description of Crandall & Potter these days: We're a firm that's going nowhere. We're like a bunch of dinosaurs, or Neanderthals. We know how the game was played when everybody used spears and stones. But we don't know how to use modern methods-we don't even know what they are!

"The proof is in the pudding, and seven-percent growth is less than half the average for this profession last year. In other words, Joe, Crandall & Potter is more than fifty percent below the average!

"And I don't know all the answers, though I'll bet I could find some out easily enough. That's your job, though I'm not sure you really see it. Kevin and Harold and Charles-all those guys-may be out in left field on the details, but they're right on target about the need for change. And you're our best chance for making those changes. In a sense, whether everybody else knows it or not, we're all banking on you.

"But the question is, Do you see it, Joe? Do you see the need for change? Do you see the headlights bearing down on this firm? Do you see what's ahead for us if we don't make changes, starting now?"

How Did This Happen to Me?!?

Eric stood quietly and slipped from the room. Joe sat for a moment, lost in thought. Then he stood, grabbed his keys and coat, and made his way from the building. Two partners started to greet him as he strode toward the rear exit, but a second glance at his face led them to change their comments to nods.

Joe failed even to acknowledge the nods. He was lost in his own thoughts, his own troubled world.

* * *

Joe maneuvered his black Mercedes E550 sedan out of the firm parking lot and guided it through the busy streets toward I-94. He pulled into the stream of traffic, pointed his car toward Wisconsin, and tried to think.

Where to start?

(Continues...)

Excerpted from At the Crossroadsby Gale Crosley Debbie Stover Copyright © 2008 by Gale Crosley. Excerpted by permission.
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.

Edition details

• Publisher: Wiley
• Publication date: 2008
• Language: English
• ISBN 10: 0470148179
• ISBN 13: 9780470148174
• Binding: Hardcover
• Edition number: 1
• Number of pages: 208