As we start off 2012, we all have a list of New Year’s resolutions we will work to achieve.I’d encourage you to add one more to that list – facing difficult conversations head-on rather than avoiding them.  Conflict is a natural part of working in a team environment, and how you handle it determines whether it is healthy or destructive conflict.  Too often, we think we are keeping the peace by remaining silent when the topic becomes controversial.  What we’re really doing is compounding the problem.  Ill feelings fester, negative attitudes spread like wildfire and the important conversation essential to getting the team on board never happens. And, thus problems escalate.

“Crucial Conversations – Tools for Talking When Stakes Are High” by Kerry Patterson, Joseph Grenny, Ron McMillan & Al Switzler offers an excellent blueprint to constructive, difficult discussions.  I’ve seen its resolution strategies work firsthand.  Here is a top line summary of the valuable lessons.

What is a Crucial Conversation and Why are They Important?

First off, according to Patterson, Grenny, McMillan and Switzler, a “crucial conversation” is one that involves opposing opinions, strong emotions and high stakes.

These conversations define our relationships and relationships, in turn, define our lives.  Whether it’s with co-workers, family or friends, improving your skills to successfully navigate these tough talks will make you and everyone around you more successful (and happier).

Set Out to Create Dialogue

When approaching a conversation you know will be particularly delicate, enter with the goal of creating dialogue.  Aim to facilitate the exchange of facts, ideas and thoughts, all of which build a shared meaning or pool of information that can lead to an outcome all parties feel good about.  In order for this dialogue to take place though, everyone has to feel safe to add to the shared meaning.  The tricky part is training yourself to step back from the heated discussion and assess the situation while you are in the midst of it.  You must be self-aware and, at the same time, watch for verbal and physical cues that things are headed down a negative path.  That’s not always easy when you’re also thinking about what to say next in the conversation.

Look for Signs that Safety is at Risk

The most common reasons people feel unsafe are because they don’t feel like you’re both working toward a mutual purpose or there is a lack of mutual respect.  So how can you identify when others don’t feel safe (or when you don’t feel safe)?  Look for the signs.  They usually come in one of two forms – “silence” behaviors or “violence” behaviors.

“Silence” behaviors – any act to intentionally withhold information from the pool of meaning.  It’s almost always done to avoid conflict and typically takes one of three forms.

• Masking – consists of understating or selectively showing our true opinions.  Sarcasm, sugarcoating and couching are some of the popular forms
• Avoiding – involves steering completely away from sensitive subjects.  We talk, but without addressing the real issues.
• Withdrawing – pulling out of a conversation altogether, either by exiting the conversation or exiting the room.

“Violence” behaviors – any verbal strategy aimed at convincing, controlling or compelling other to your point of view.  It violates safety by trying to force meaning into the pool and also usually appears in one of three forms.

• Controlling – consists of coercing others to your way of thinking by either forcing your views or by dominating the conversation.  Common forms include cutting others off, overstating facts, speaking in absolutes, changing subjects or using directive questions to control the discussion.
• Labeling – putting a label on people or ideas so we can dismiss them under general stereotype or category.
• Attacking – this is pretty straightforward – it’s a verbal attack that can take the form of belittling or threatening.  All with the purpose of making the other person suffer.

Make it Safe

So once you identify these tell-tales signs of safety issues, how can you restore the safety?  When safety is at risk, you need to first recognize what is going on and why and then step out of the content temporarily.  You can then build safety by getting back to the facts and eventually get back into dialogue.  Some specific techniques for rebuilding safety include:

1. If you are at fault, apologize.
2. When your intentions have been misunderstood, contrast.
3. When you have conflicting goals, find a mutual purpose.

Apologizing is pretty straightforward but you’re apology must be genuine.  People can see through an insincere apology pretty quickly and this will further emphasize their feeling that you don’t respect them.

Contrasting is a skill that helps you clarify your intentions so that the other person feels safe.  You start by stating what you are NOT talking about and then follow that with what you are talking about.

Creating a mutual purpose requires a little more work.  First you need to explore the purpose of all parties involved.  What you see on the surface is the person’s behavior or strategy for getting what they want.  The interest is what lies underneath so you need to ask “why” questions respectfully to drive out any hidden or buried agendas.  Once you’ve clarified each person’s goal, the next step is to find a solution that satisfies both goals.  If that’s not possible, build a goal you both like just as well or better.  This is not always easy and takes some creative thinking and the ability to be patient and think outside the box.  It also requires that we are invested enough in the other person to put in the work.

Control Your Emotions

Controlling emotions can be very difficult during a crucial conversation, especially when we’re hard-wired to react when our safety is threatened – often referred to as “fight or flight.”  Stepping back and analyzing the root cause of our emotions can be a very powerful skill.

Have you ever blamed someone for making you mad?”  Did they?  Or did you make yourself mad?  If you really think about it honestly, you were the one that caused the emotion.  When we see or hear something, the little voice in our head quickly develops a story to provide meaning to the event.  Over time, our mind fills in blanks and adds details (often exaggerated and ugly) and they are most often based on assumptions.  This story is what really caused the emotion and our subsequent action.  Often, what we believe is reality (the story in our mind) is much different from what actually occurred.  Recognizing this is what is really happening is the first step to controlling our emotions so we can use healthy dialogue to explore the facts and determine what actually occurred.

Conclusion

Crucial conversations aren’t easy.  They are very challenging.  As we often say at Boomer Consulting, Inc., it’s about progress not perfection.  If you can work on one or two skills from this book at a time, you’ll drastically improve your communication skills during difficult conversations.  Start off 2012 by committing to conquering crucial conversations.

Jim Boomer, CIO & Shareholder, is director of the Boomer Technology Circles and an expert on managing technology within an accounting firm. He also serves as a strategic planning and technology consultant and firm adviser in the areas of performance and risk management.

Your biggest season is coming soon. This is your opportunity to stand out from the competition. Are you ready? Do you have a plan? Have you put in the effort to properly prepare your firm members?

As Greg Cordell, CIO (Chief Inspiration Officer) and author of Brains on Fire puts it: “Your Company is the stories people tell about it.” Everyone has a story about their annual tax preparation or their experience with an accountant’s office.  Some are stories are great and other stories are a nightmare.

What stories will your clients tell about your firm?

We are all aware of how critical it is to look at what we do from our clients’ perspective.  How often do you stress to the firm members to produce, produce, produce? So what does the member do? Rush immediately to the tax return or accounting issue without making a connection with the client.  While often times marketing efforts are you talking about yourself and what you can do for them; stories, on the other hand, are others talking about you and their experience with your firm. Marketing campaigns embrace an “us-versus-them” mentality. Stories can say, “we’re all in this together.” Relationships create the positive stories others tell about your company.

So let’s get down to the basics; it’s about people.  It comes down to trust. People don’t trust companies; people trust people.  People they know. People whose opinions and recommendations they seek out and have faith in. They rely on word of mouth (stories) to determine their choice in firms to employ for their business needs.

Again, what stories will your clients tell about your firm?

Like it or not each person in the firm is a part of the story of your firm. Each person should consider their approach or conversations with your clients. It’s about reframing the conversation or the focus from the “me or my firm” mentality to the “us” (you and your clients) approach. Reframing the conversation is about going from what role does our service or product have in people’s lives to what role can we play in our clients’ lives. It’s a turn from a service or product role to a relationship role. Connect and develop a relationship with the client first and always.

So what is the value of client relationships?  According to Jim Simon, author of Hidden Champions of the 21st Century, staying close to your clients compels performance and innovation. Strategies become driven by value – client value, not price, so these companies can charge more for their products or services. Regular contact and conversation and being on a first-name basis with your clients significantly impacts the stories told about your company.

So, what stories will your clients tell about your firm in 2012! Make every conversation an experience in and of itself.

Sue A. Thiemann is Director of Conference Planning for Boomer Consulting, Inc. Sue’s primary responsibility is coordinating the many preparations leading up to BCI’s annual events.

Sue functions in multiple roles, including administrative, planning and financial. She is responsible for managing the stream of processes required to execute the Human Capital and Learning Symposium and other meetings and events. She additionally manages accounts and coordinates client contracts.

• A fee interest in real estate
• Fractional ownership interests
• 30+ year leasehold interests
• Other oil, gas and mineral interests
• Conservation easements
• Transferable development rights
• Right-of-way easements
• Water rights
•  Mutual irrigation ditch stock

A mineral interest is a perpetual interest on all of the minerals on a parcel of land including oil and gas, coal, gold, sand, gravel, water, etc.

There are several different kinds of ownership of oil, gas and mineral interests which include –

• Mineral rights which are a part of fee ownership of the ground.
• Mineral rights which are owned separately from ownership of the ground.
• A mineral lease granted to a lessee by the owner of the mineral rights.
•  A royalty interest which can be viewed as a form of rent received by the lessor of the mineral rights.

A mineral lease gives the lessee the right to extract the mineral for a period of time, or until exhaustion of the mineral.  Mineral leases are sometimes referred to as  a working interest or an operating interest. The lessee is the operator who is extracting the mineral.  A mineral lease can be subleased to other operators.

An exchange of a working or operating interest might include equipment or other tangible personal property which would need to be viewed as a multi-asset exchange (more than one kind of property).

A production payment is a right to the mineral in place for a specified sum of money, payable out of a specified percentage of the mineral production.  It is a “carved out production payment” and is not considered real property for exchange purposes.

Depletion expense can be deducted by the owner of an operating or royalty interest. There are two types of depletion: percentage depletion and cost depletion. Taxpayers use the method that yields the highest deduction.

Intangible drilling costs are operating costs to extract the mineral.  Costs for fuel, preparation of a site, and wages are examples of intangible drilling costs.

Mineral property exchanges may be subject to recapture under Section 1254 if deductions were taken for depletion or intangible drilling costs on the relinquished property.  The replacement property must be both like-kind and natural resource recovery property (Section 1254 property) to avoid recapture.

Larry Jensen Bio: Larry Jensen, CPA is Vice President and founder of 1031 Corporation Exchange Professionals, a subsidiary of FirstBank of Colorado. Mr. Jensen’s background in §1031 tax-deferred exchanges, along with more than twenty years as a  professional in consulting clients with 1031 Exchange issues and know-how make him a trusted resource for the §1031 tax-deferred exchange community.

Mr. Jensen is a member of the Federation of Exchange Accommodators Tax Issues Committee and dedicates a significant portion of his time educating accountants, attorneys, real estate brokers and principals on developments in the 1031 industry. His exchange presentations feature practical, real-life exchange scenarios to illustrate a wide range of tax strategies available.

The future leaders in our profession are sending us a message about how leadership is changing, the question is, are we listening?  They are saying “We don’t know everything and we don’t have to.  What we have to do is develop our unique talents and let others develop theirs while blending them collaboratively together.  That is how we will lead the firm of the future”. At first blush, many current firm leaders might say “they are naïve, just wait until they grow up”.  I would respond by simply saying – read on.

The future leaders in our firms have a keen understanding of self, and they understand that while they have many fantastic traits, they are not a superstar at everything.   They push back strongly saying that in the firm that they build, it will function vastly different than the one they work in today.  Their firm of the future will be more collaborative and cohesive.  These young leaders have been fearless about change in their lives and that will carry through to the way they build their firm.  Culture, systems and processes will all change for them, and ultimately will change the entire industry.  The secret to all of this change is one person will not be responsible to create all of this change; it will be a collaborative – “group think” – mentality that is based on intellectual openness.

So, what are the changes that will take place in the future?

Change #1 – Collaborative Relationships are King

No loan rangers allowed will be the battle cry from leaders.  Today, when a new idea develops in a firm, it is often one leader coming to the group and selling their idea.  Then, the idea is implemented by a committee.  In the future, the idea will be developed by a group of people from the inception and then the entire group will continue to support and nurture the idea by bringing in other team members as needed to make the idea better.  The thought process is “let’s all sit down at the table and figure this out – together”.  The pattern that will develop, and ultimately make a good idea a great idea is that by pulling together everyone’s ideas, thoughts, intellectual capital, the firm will benefit from the “group think” rather than “individual think”.  As you might imagine, there will be little room for individual egos in this environment.  Silos within the firm will deteriorate and power teams will emerge.

Change #2 – Globalization and Diversity Will Be the Norm

Firms today have a reputation for being predominantly male, white and aging at the partner level, female, middle aged and white at the manager level and slightly more diverse in race, gender and nationality at the staff level.  Given the changing demographics of our country today, and the reality that our younger leaders have a more diverse and global outlook of the world, it is safe to say that the “look” of our firms will change in the future.  We are going to be more colorful and more widespread in our human resources.  This is a welcome change by our younger leaders who have gone to school and often traveled the world with friends of different nationalities and cultures.  Additionally, this change will require that we put a stronger emphasis on retention, attraction and motivation of the best talent, and find new ways to solidify our teams.

Change #3 – Digital Lifestyles and Skills Will Shape The Firm

This may be a change that most people would simply say “Duh” to.  We all realize that digital skills are changing the leader of the future.  The fact that our future leaders don’t understand why this is a game changer should tell us something.  The majority of our young leaders have never known a time when they did not have a computer in their home, and many don’t have any idea what it would be like to go out for an evening and not have a cell phone to communicate with.  This digital lifestyle will never go away – it just is!  Also, keep in mind that as our young leaders are built this way, so are the young clients that they will interact with.  This new digital reality is certain to shape the firm of our future.

Change #4 – A Sense of Purpose and Dedication For All

One interesting trait that will be a game changer for the leaders of our future firm is that these leaders will be less concerned about their own goals and more concerned about their overall team.  This goes back to change #1 in building the relationships, but it also emphasizes that this group of people have been programmed from their growing up years to care for their community and others.  Think about the youth of today and how they are taught, motivated and rewarded in schools today to care for their community and work with their classmates on projects. They will never be satisfied in their work life not using these skills to develop a sense of purpose and dedication for the overall firm and team, not just themselves.

Change #5 – Mentoring Is Out, Sponsoring Is In

Future leaders are not uneducated, and they are realists that not everyone is going to want grow at the same time or the same pace as the next person.  They also realize that not everyone has the aptitude to be promoted to leadership positions. Rather than developing mentoring programs where everyone is treated exactly the same, they will opt for picking the players that are the best and then developing a close relationship with that person to sponsor them and grow them into one of the leadership positions that is required in the firm.  Even though some of them were raised in an environment where everyone got a blue ribbon or a gold medal, they understand that “one on one” sponsorship will provide an individual with the training that is best for them and far more productive and valuable than a program that is “one size fits all”.

Change #6 – Health and Well Being Are Essential

In a world where obesity seems to be the bane of our existence, the next generation leader will understand and support a work environment that promotes the physical and mental health of their team.  Through education, experience and a world that is fighting to control the balance between life and work, this new leadership group will put more emphasis on healthy lifestyles both in the office and outside the office.  The reward will be higher productivity, morale and retention rates.

With all of these changes upon us, how can the current leadership group help prepare and start implementing today?

Change #7 – Team Development and Hiring Changes

Profile your current team and begin to look critically at the skills that are not in your firm today.  Are you a firm that is full of researcher oriented people, but the number of process oriented project leaders are lacking?  Or, do you have a firm full of introverted followers who take direction well, but not many individuals who are hungry to “own” responsibilities and want to lead initiatives in the firm.  After you analyze your current situation, then prepare to hire for more than the technical needs of today, but also the leadership needs of the future.  Firms absolutely need skills and abilities, but they also need emotional intelligence.  This will require analysis, new hiring skills and a dedication to changing old habits.  Remember, if you continue to hire, promote and motivate the way you have in the past, you will get the same talent you have had in the past, and that will not be good enough in the future.

Change #8 – Form a Future Leader Initiative

Leaders must listen carefully and hear what their people are telling them.  Leaders must also understand that putting together the leadership of the future requires that they look at each person as a separate and unique individual – identifying the unique characteristics that they have and allowing them to develop those skills.  Just because someone is not the best business developer does not mean they are not valuable, they may indeed have a gift for putting processes in place that will save the firm hours in productivity and efficiency.  Another person who is a superb business developer, may not like to research new systems and the leader sees that their motivation will come from front stage projects dealing with client and prospect interactions.  One is not wrong or less valuable, both are equally amazing.  A positive way to find out what is floating around in your future leaders minds is to form a “Tomorrows Leaders Initiative” in your firm.  Give them objectives, but let them figure out the strategies, ideas and timelines for initiatives that will help the firm prepare for the future.

Change #9 – Get Flexible With Learning and Training

While some firms are still struggling to develop cookie cutter learning ladders and training plans that will work for everyone in the firm, the firm of the future will have career planning and learning ladders that are much less linear and far more individualized.  Flexibility will be imperative and lateral moves will be much more accepted and encouraged.  This would be an excellent project for a Tomorrows Leaders group to work on.

Change #10 – Replace Pen and Paper with Real Words

We are a paper and pencil kind of world when it comes to feedback and performance management.  We are an industry that is nice and caring. Often, this translates to thinking through how you want to nicely give someone feedback on their performance, writing it down and then delivering by letting them read what you wrote.  The verbal exchange is short, sweet and to the point, and often has not intrinsic value to the team member.  Progressive firms today are teaching their leaders to have verbal exchanges with their team members and using the paper as simply backup to the conversation.  These conversations are critical to developing the relationships that are valued by the individual and to enact the performance that we desire from each person.  Some will think this is contrary to the digital lifestyle that this younger leader is accustomed to, but it plays well into the close relationship that they are hungry for within their work environment.

Conclusion

Is this new leader, and new leadership style of the future complicated? Yes!  Is it rewarding? Absolutely!  As we approach a new year, I challenge each of you to rethink your current leadership style and commit to making changes that will assist your firm is taking positive steps toward a firm that future leaders will be attracted to, and will be excited about helping to build.

Sandra Wiley, COO & Shareholder of Boomer Consulting, Inc., is ranked by Accounting Today as one of the 100 most influential people in accounting as a result of her prominent role as an industry expert on HR and training as well as influence as a management and planning consultant. Sandra is a certified Kolbe™ trainer who advises firms on building balanced teams, managing employee conflict and hiring staff.

1. GoodReader
GoodReader is a well-known document reader.  I prefer GoodReader to any other one as it is cheap, fast, and easy to work.  I can easily annotate a PDF and store the annotations in the file or as a separate file.

2. Dropbox
Free for up to 2GB, Dropbox is probably the best synchronization tool I have ever used.  I have it loaded on my iPad, laptop, and desktop.  All files sync in seconds and are available across all systems.  Be sure to have strong Windows passwords and invoke the security keys on the iPad.  In seconds I can create a file on my desk system, access it in Dropbox on my iPad, and then open it in GoodReader.

3. Speed Test – Ookla
Free speed test.  There are many speed test apps so be sure to get the right one.  Only the one from Ookla is this good; great graphics and reliable results.  You would be surprised at how often the speed of your internet connection changes.

4. FaceTime
No doubt one of the best communication tools ever invented.  The only issue is that the person on the other end of FaceTime must have an iPad or iPhone 4 or newer. Despite the fact this is an Apple app, and comes with your iPad, do not overlook its power and capabilities.

5. Photobucket
2GB of free cloud storage and an interface that works great across all devices.  The key to Photobucket is that it becomes your library of photos and videos that you can easily link to for Facebook, LinkedIn or any other website posting.

6. MLB.com
I am a baseball fan so this ranks high on my list despite the fact that you have to buy an annual subscription to the service each year for around $15.  You get to see any game, not blocked by blackouts, in HD (internet connection permitting).

7. Intellicast HD Weather
I guess I am part Eubank (local joke).  Truth is, I love weather and especially like to know what I am headed for when traveling.  This is the best of the weather apps to date as it gives you HD radar.  Try zooming in/out and you can examine the world in detail, even ocean beds!

8. Keynote
Not free, Apple app.  This is a pay for app that is the PowerPoint of the Apple line.  If you want to do presentations from your iPad, this is the tool.  Create the presentation in PowerPoint on your PC, transfer the file with Dropbox, open with Keynote, and present.  Viola, it is that easy but it will cost you $9.99.

9. Dragon Dictation
Free app – best voice recognition to date.  You talk, it types; this can help with email responses especially when they become lengthy on the iPad.

10. Concur
The app is free; the account with Concur will not be free.  You can get a personal free account by signing up for the Concur Accountants program.  See http://www.cpafirmsoftware.com/cpaprograms.html click on the Concur Accountants Program and join.  Then you can use this app on your iPad to help track and report expenses.  We have our entire company signed up and this is a great tool.

Shut off the news and turn on the music!  As silly as this may sound, it’s true.  There are numerous studies that document the fact that investors can be their own worst enemies.  This is due to the fact that they allow the emotions of fear and greed (and sometimes anger when it comes to thinking about Washington) to dictate their buy/sell decisions.  With news available everywhere we turn and 24/7 access, it is no wonder why investors can get so worked up about the markets.  It has been noted that the markets can best be described as a man with a yo-yo climbing the stairs.  If you focus on the yo-yo, you will get nauseous.  However, if you step back you will see that the markets (stairs) have always gone up over time.

As we reported to you in a previous communication the more often investors watch their portfolio, the more likely their results will be below average.  That said, below is a piece written by Christine Cashen in her book ‘The Good Stuff’ that I thought you might enjoy.

News Fasting

Isn’t it nice when you’re on vacation and you don’t carry the weight of the world’s problems on your shoulders?  We get in the habit of waking up and turning on the news to catch up on all the ills of the night before.  “Your 401(k) is a 101(k). Terror continues and Britney is on tour.”  Yes there is a fire somewhere, a natural disaster somewhere else and bad people are everywhere, doing bad things.  Ugh!

How many hours of news do you hear every day?  If your day is anything like mine, maybe you turn on the TV to a morning show while you’re getting the kids ready or having a cup of coffee.  Does this information start your day off right   Not usually.  Then we hit the newspaper – more bad news.  And to make matters worse, we like to end a hectic day by watching the news one last time right before going to sleep.  This puts us in a calm, happy and relaxed state.  Right.

Yes, we can get news 24/7, but do we really want it?  Work on limiting your news fix to ONCE a day.  Don’t get me wrong….it’s important to know what’s going on out there, but once pretty much does it for me.

Author Bio: Mark Smith is one of our highly rated instructors. He is speaking at the 2011 Retirement Planning Conference: Retiring Minds Want to Know—Is it safe yet?  Nov. 9 and leading the course, Investment and Retirement Strategies for Uncertain Times, on Dec. 1 in Durango and Dec. 13 in Denver.

Accounting firms generally are not who you think of when you mention “innovation”,  yet many firms excel at innovation and there is a pattern to their success. Innovation is directly linked to growth and not an epiphany like many think; but rather a process that combines hindsight, vision and insight.   The accounting profession is going through significant changes and I am often told by firm leaders they just don’t have the next generation of leaders in their firms.  In many cases there is validity to their statement and a better understanding of innovation and how firms get into this situation can help firms take the necessary steps to balance between “discovery” and “delivery” skills. Discovery skills focus on new opportunities, trends and creativity while delivery focuses on execution.  You need both, but the tendency is to focus on delivery.

Mature and typically declining firms are dominated by people with excellent delivery skills, but often lack the proper balance of discovery skills.  Typically one or more firm founders were entrepreneurial and tended to hire people for their delivery skills and not their discovery skills.   As a result, many partners and managers don’t know how to think about discovery or give enough value to the importance of innovation.  Accounting programs teach people delivery skills while most experiences and on-the-job training also focuses on delivery and execution.  In fact, many of the discovery skills are viewed as nonproductive – more about that later.  I believe innovation or lack thereof can explain some of the frustration and what firms must do in order to develop the next generation of innovative leaders.

Let’s look at two different types of innovation and then how the most successful firms are modernizing their practices to meet the needs and wants of their clients. Accounting majors are taught the rules and regulations of the profession in school and throughout their careers.  This is not a negative, but rather a fact as their perception is often different than those with different training and aptitudes.  Upon graduation, most accountants going into public practice start in audit and/or tax.  This has been the traditional approach and is the primary reason most innovation in firms is directional innovation.  Directional innovation tends to improve a service in fairly predictable steps with a well-defined dimension or goal.  The majority of innovation is directional and is accomplished through increasing levels of expertise and specialization (delivery skills).  This is a low risk approach and one with which many CPAs are comfortable.   There is nothing wrong with directional innovation, yet it is limiting due to the fact most of the participants are looking at the problem from the same perspective.

Darwin John, former CIO at the FBI, once said “if two of you have the same opinion, then we don’t need one of you”.  This may be a bit extreme, but the point is that for real innovation (discovery) to occur it requires multiple perspectives.  This is often called intersectional innovation where multiple disciplines meet in the attempt to solve a problem or improve a solution.  From my experience in the CPA profession, two areas within firms that have been responsible for innovation over the past 20 years are firm administration and technology.  Leaders in these areas have been attempting to bring the silos together and improve performance through improved communications, efficiency and effectiveness.

One step in entrepreneurial innovation, and the one leadings firms are focusing on, is intersectional innovation or client centric innovation.  It not only involves the client, but his multi-discipline advisors.  This can be difficult due to egos and personalities, but the CPA is the most trusted business advisor and should take his or her role seriously by acting as the quarterback when it comes to innovation and improved client services.  While many CPAs were trained to be rugged individualist (focus on delivery) and solve the client’s problems on their own or with a small team, that approach no longer meets the needs of a majority of clients.

Today, clients are looking for faster, better, cheaper and easier solutions forcing firms to be innovative and sensitive to clients’ wants and needs.  The capturing of transactions is becoming a commodity with new technology and the ability to aggregate and integrate information via cloud based solutions.  In the past tax return preparation has involved a significant amount of time (fee) in aggregating data while technology has automated the calculation and processing of the return.  In other words, the CPA is now caught in a situation where the services they are offering are diminishing in value (commoditization).  Part of this is due to technological innovation and part is due to the pricing strategies used by the majority of firms (hours times dollars-labor theory of value).

We are living in a connected world and someone is making those connections.  As the trusted business advisor it should be you, the CPA, and your firm.  The people making these connections tend to be professionals who excelled in one field, but learned from others.  This describes many CPAs and why they are the most trusted business advisor.  Formal education increases the probability of attaining creative success to a point and then actually reduces the odds.  A key to prolonged success throughout ones career is lifelong learning and multiple experiences.  It makes sense to spend time on a variety of projects if you wish to develop fresh and groundbreaking ideas.  The value comes from being able to spot trends and then integrate what you already know.  This requires curiosity and an interest in a variety of things.  Innovators don’t produce because they are successful, but they are successful because they produce.

Diversity promotes innovation while too much expertise can create barriers to innovation.  Innovation requires a balance.  More good ideas come when working in a group than when working independently.  The big question becomes: what can and should firms do to promote innovation at the intersection?  As I said earlier in the article, innovation occurs with vision, hindsight and insight.  By looking at the current generation of great firm leaders we see several characteristics that allowed them to be innovative.  Let’s looks at a list of the most important discovery characteristics.

1. The ability to connect and associate different perspectives (clients, multiple advisors, trends, technology and etc.
2. The ability to question the status quo.
3. The ability to hold self and others accountable.
4. The willingness to participate in “safe haven” meetings with peer leaders.
5. The ability to manage, not avoid risk.  The quantity of new ideas improves the quality.  Create the environment to promote, not stifle innovation.

This list may not seem important to those who focus only on the delivery side.  Firms must be cautious not to swing the pendulum too far toward the delivery or discovery skills.  Both skills are required, important and cannot be ignored.  Success today requires a team.  The team should involve younger members who are capable and expected to challenge the status quo or strategy which has often been developed and implemented by senior leadership.

The fact is most large organizations generally fail at disruptive innovation because top management has been selected for their delivery skills.  While it is the managing partner or CEOs role to lead the innovation it is an extremely difficult assignment.  Delivery executives do not like having the strategy constantly challenged nor do they appreciate change.  Does your firm reward and promote discovery skills?  If the answer is no, you have your answer as to why you don’t have the innovative leaders for the future.  Now is the time to identify and develop leaders with the skills and willingness to focus on intersectional innovation.  The future success of your firm depends upon innovation.

Here are five areas where innovation will produce significant results.  Granted they may not fit every firm, but most firms will find three or more of these innovative ideas profitable.

1. Billing and collection policies – use technology to improve cash flow (ACH payments & Credit Cards).  This requires different thinking and change management.  Too many firms are allowing clients to treat them as interest free or “cheap” banks.  You can turn this around with improved engagement letters that specify payment terms leveraging monthly bank drafts.
2. Tax return preparations processes – avoid loops and focus on one-way workflow.  There are better ways to train than sending work back to the preparer.  You can use technology to grade performance and report errors.  Current workflow software has its roots with outsourcing companies.  If Federal Express can track packages electronically, firms should be able to track work in an efficient manner reducing cycle time.
3. Client accounting in the Cloud – firms can provide transactional as well as value added services such as bill payment, payroll, controller, HR, IT and CFO related services on a monthly basis.  Private labeled software that can be centrally updated and supported will allow firms to take back control of accounting.  It will also allow your firm to become hardware agnostic.  It works the same on Mac as on a Windows based PC via a browser.
4. Use portals to aggregate client data for auditing and accounting as well as tax return preparation.  Avoid false starts and wasted time.  Portals provide security, are inexpensive and clients like them.  Most of the resistance I see is within the firm.
5. Conduct client focus groups with marketing, tax and technology expertise present.  This will provide innovation at the intersection from multiple perspectives.  Listen to the client and provide the services he/she wants.  Utilize firm leaders with discovery skills.

Innovation is part of a firm’s culture and DNA.  It requires leadership and the willingness to manage risk.  Not every idea is a great idea, but the quantity of ideas determines quality.  Successful firms balance discovery and delivery skills.  Does your firm have the discovery skills necessary to meet your clients’ demands in a rapidly changing world?  Provide your people with the time and resources to innovate.  Based upon recent studies, most firms are less than 50 % chargeable.  What better use of the non-chargeable time than innovation, training and new business development?

L. Gary Boomer is CEO of Boomer Consulting, Inc., an organization that provides planning and consulting services to leading accounting firms. Boomer strategies chart a transformation roadmap that results in business growth through expanded services, improved processes, talent management and the leveraging of technology.Gary is recognized in the accounting profession as the leading authority on technology and firm management. For over a decade, he has been named by Accounting Today as one of the 100 most influential people in accounting. He is also a member of IPA’s 10 most recommended consultants.

Building a time management system that can help you survive the busy season is essential to plowing ahead instead of being plowed under, but even the best systems may need some tweaks as deadlines draw near.

Here are three tips for prioritizing and managing tasks when the hours are long, and the workload is overwhelming:

Know what to cut

Address every project, problem, or priority clamoring for your attention with one simple question: Is this worth my time?

Either a request is important, or it isn’t.  Totally ignore what is not important.  Get it off your plate and out of your mind.

Then divide the important stuff into three sections: 1) Immediate, 2) Soon, and 3) Someday.  Make a list, and tackle tasks in a prioritized order.

During stressful times, tighten the time management filter up.  More requests are discarded as “unimportant”, put off until “someday”, or listed as “soon”.  Only truly pressing matters warrant immediate attention.

Be sure to collect the useful, but not pressing, tasks in a someday list.  Then, review the list when there is more breathing room.

Ignore your email, or at least most of it

Email is the worst time and concentration-stealing culprit for information workers.  It must be managed carefully.

First, block off time for handling email.  Don’t chase down every email as it arrives. Stick to the rule of reply, remember, or recycle.  Reply to quick requests, remember long requests by creating a task, and recycle everything else.

If the busy season is upon you, consider creating an autoreply email that reads:

“I will be extraordinarily busy until X date, and will check emails only once a [day or week] until then.  If your request is urgent, and you need my immediate response, please forward your email to my emergency email address, EMERGENCY[yourname]@example.com and I will respond very quickly.”

Then set up the new emergency email address and only sign in to the emergency account in the morning.  If a request comes up, you’ll know that it is urgent, or at least that the sender thinks it is.

Set and share deadlines with others

Break large projects into individual tasks with their own timelines for completion.  Set and share these deadlines with other people in your organization.  Living up to your goals is easier with the encouragement of your peers.

Setting public goals allows others to trust you to complete the project on time, and gives them transparency into how busy you are.

After the busy season has ended, take time, then rewind.  First, get away from the office for a day or a week.  Think about Renaissance art or children’s soccer for a while.  Recharge.

When you feel more centered and calm, think through all appointments, deadlines, and stress of the busy season, and ask these three questions:

1) What did I put off or forget to do?
2) How could I have been more efficient?
3) How can I better prepare for the next fire drill?

With a few slight adjustments a good time management process will you help survive any deadline.

Author Bio: Steven Nichols works with Mission Critical Systems a Denver training company, offering Time Management training classes.  CSCPA members receive 15% off public classes with the promo code CSCPA1.  Steven can be reached at (303) 383-1627 x 1104.

Every time our company places a “Help Wanted” ad we are flooded with applicants. Our last job posting brought in 150 applications. For me, being a part of the process has opened my eyes to things that I should and should not do when applying for future jobs.  I would like to share my advice for increasing your chances for success with fellow college students, recent graduates and professionals who may find themselves back out on the job market.  Below are some tips that I believe will help you in your search:

Applying:

• Do not miss the deadline.
• Read the entire ad, if it asks for a cover letter, resume and references make sure to send all three.
• If a friend/colleague mentions the ad to you, have them send you the entire ad so you have all of the details.
• Proof read everything including the subject line of your e-mail. Make sure formatting is correct and you are sending the most recent, completed form of your resume.
• Have at least one other person read through your entire application to make suggestions and corrections.
  For cover letters, make sure that you do them in a Word document. Do not use the body of an e-mail as your cover letter.
• Make sure to target the position you are applying for; use references, job experience, and wording that apply to the position.
• Always follow-up at least a week after you apply to make sure the potential employer received your application.

Interviewing:

• Go through some mock interviews with friends, family and/or colleagues.  Pretend it’s the real deal, have them ask you questions that would be asked in an interview and answer them in a professional manor. Practice does make perfect.
• Go online and look through sample interview questions; you want to be prepared to answer any type of question quickly and with precision when you go into an interview.
• Prior to the interview, research the company.  Go the website, do web searches, etc.  With that research in hand, ask solid questions you have about the company and how they do business.  Never ask questions that could have been found on their website or through basic research.
• Bring a note pad and paper. Have questions prepared for the interview, even just a few questions shows the interviewer that you have done your research and you are interested in the position for more than just a paycheck. The note pad will also be handy to make notes of further job description and important dates that come up during the interview.
• Always dress to impress. Wear your best business outfit, do your make-up (for women) and hair, make sure you look professional and not like you are going out for a night on the town. No short skirts or low cut shirts. No jeans and tennis shoes. Don’t wear too much make-up, cologne, perfume or jewelry. Less is more!
• Make sure to smile and try to relax as much as possible. If you are very nervous, it will show and reflect badly on your interview.
• When shaking the persons hand make sure that it is a strong, confident shake.  Don’t make it so it will hurt the interviewer but make sure they know they shook your hand.  A hand shake tells the interviewer a lot about you and your confidence.
• Make eye contact, sit up straight, try to think through your answers instead of stumbling through them.
• Limit the use of “like” or “um” while interviewing.  Use proper English, don’t make up words, it’s hard for the interviewer to understand the point you are trying to make.
• Never, ever under any circumstance bad mouth your last job.  You will come across as negative.  Just let the interviewer know it didn’t work out or the last job wasn’t a fit for your skills.
  Most importantly, just be yourself and try to reflect who you truly are. Interviewers are looking for real people who will enhance their company’s success.

Deanna Cox is Business Development Specialist for Boomer Consulting, Inc. She ensures the follow through of many vital tasks including the process of contact lists, special client requests and ensuring the data integrity of their many databases.

We all have those great clients that we love to work with.  They are forward thinking, pay their bills on time, refer work to us, and are typically fun to work with!  These are the types of clients every firm says they strive to find and keep on their books.  Just as we have our ideal clients, we also have what I refer to as “D” clients.  They are just the opposite of ideal.  They tend to haggle on price, expect more than what they paying for, don’t refer work, and typically can’t be pleased.  The scary part is that many firms build strategies around these clients and their issues.  A big complaint or suggestion from a “D” and all of sudden firms are changing course to suit the needs of this client.  The rationale is that if they can address this and make a change, maybe that firm can become an ideal client.  This just simply isn’t the case!  What can a firm do to prevent the worst clients from driving direction of the firm in any manner?

Develop a client filtering plan

Simply put, the easiest way to keep “D” clients from influencing the firm is to filter them out of your business.  This isn’t just picking up the phone and firing clients that you don’t like.  There has to be a process and plan behind your actions.  Build a plan that defines an ideal client, determines filtering criteria, and creates a process for moving forward with the removal of problem clients.  Once a plan is in place, it is much easier to provide direction to your team.

Stick to your strategic plan!

As important as the client filtering plan is, it won’t matter if you don’t have a firm strategic plan.  This is the foundation for everything your firm is doing and what it stands for.  Without a strategic plan in place, it will be very difficult to build the filtering plan and follow through with it.  If the plan is in place or you need to build one, make sure that you stick to it.  If changes need to be made throughout the year, make them based on a solid reason.  Don’t allow the issues of a handful of clients to undermine the importance of a strong foundation.  This prevents the firm from going down bunny trails that lead to frustration and extra work.  Interested in creating a strategic plan for your firm?

Train your team on the definition of an ideal client and the filtering process.

Training your team on what an ideal client looks like early on will provide them with the knowledge to filter them before they become problem clients.  Firms with strong rainmakers are very adept at this.  They have the ability to find companies that fit the model.  Help your staff by utilizing the client filtering plan in their ongoing training.  Train them to understand how to look for clients that may cause future issues.  If they complain or fight price early on, chances are they will do it throughout their client life with your firm.  Training will also give your staff the confidence to say no to poor clients or to begin the process of eliminating them altogether.  It will be difficult for the “D” clients to influence direction if your entire staff has been equipped with the ability to identify and deal with them.

Conclusion

Every firm has at least one horror story about how a client created problems in some form or another.  If they are honest, most firms will also tell you about how a “D” client or two have made them make unnecessary or bad decisions in efforts to fix the issues.  This will typically results in frustration and lost efficiency.  Keep focused on your best or “A” clients and minimize or eliminate the “D” clients.  Your staff will be happier, the firm will be more profitable and your best clients will see improved service because you will have more time for them.

 As Director of Business Development for Boomer Consulting, Inc., Eric Hunt works extensively to develop and strengthen client relationships and assess client needs. Eric’s primary role is the expansion of the Boomer Technology Circles™. He does this by creating synergy among current members, attracting new members and conducting on-going support for the 100+ member firms.