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“Making Internal Communication a Culture Must-Have”

By: Dustin Hostetler, FlowtivitySarah Johnson, Inovautus Consulting

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Polling Question:

What size firm do you represent?

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The mission of the CPA Consultants’ Alliance is to explore leadership issues facing the profession and develop and

share solutions that benefit practitioners. CPA Consultants' Alliance members support each

member’s growth and collaborate to make a difference in the communities

we serve.

The CPA Consultants Alliance

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• 78 Billion Baby Boomers Retiring over the next 15 years• Less than 50 billion Gen Xers• Unemployment within the CPA

profession ~3% -- nearly “full employment” and growth in jobs is projected at 18% by 2016• Younger CPAs with talent can find

employment anywhere or start their own practices with so many retirees willing to transition their books

The Storm is Brewing

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• In spring 2012, conducted an online survey of 788 CPAs and CPA firm administrators in public accounting• In spring 2012, conducted an online survey

of 788 CPAs and CPA firm administrators in public accounting• 3.3% of respondents were sole practioners

and 2.2% represented the big 4. The balance were CPA firms with between 2-75+ partners. *

*full response data can be found in the whitepaper

Our Leadership Research

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• 46% of respondents represented owners, shareholders and partners• 15% senior managers and directors• 7.8% manager level accountants*

*full response data can be found in the whitepaper

Our Leadership Research

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Top 3 Most Important Characteristics • Integrity• Ability to develop a strong team

and delegate to them• Be visionary

The Leadership Research

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Top 3 Missing Characteristics from the partner, owner and shareholder perspective.• Motivate others• The ability to develop a strong team

and delegate to them• Being Visionary

The Leadership Research

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Top 3 Missing Characteristics• Communicates at the right time, to

the right audience• The ability to develop a strong team

and delegate to them• Being Visionary

The Leadership Research

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What This Means For CPA Firms Today

Photo Credit

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Defining Internal Communication

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• NOT a policy, memo or email• NOT a one time event

IS a consistent process to get people on the same page

What is Internal Communication

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We retain approximately 10 percent of what we see; 30 to 40 percent of

what we see and hear; and 90 percent of what we see, hear, and

do.

What is Internal Communication

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What is Internal Communication

• Excellent Client Service requires excellence in internal communications

• Communication of client knowledge, information, engagement status, expectations, future needs

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What is Internal Communication

• Teamwork requires timely communication

• Be on the same page for your clients

• Internal Customer Dynamic

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Polling Question:

What channels do you currently use to communicate to your

employees?

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• Marketing & Business Development• HR• Leadership• Training• Building a culture• Client Service

Where Internal Communication is Needed

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Marketing & Business Development• Expectations for new business• Roles/Activities in marketing• Ties to promotion and compensationHR• Firm policies and procedures• Performance feedback• Recruiting• Career path opportunities

Where Internal Communication is Needed

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Leadership/Culture• Mission• Vision• Core Values

Where Internal Communication is Needed

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Polling Question:

What communication methods does your firm use

to communicate review points on engagements?

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Client Service• Audit◦Scheduling◦Interim and Planning◦Pre-Fieldwork and Fieldwork◦Wrap-Up

Where Internal Communication is Needed

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Client Service• Tax◦Request Lists to clients◦Readiness to start Preparing Return◦Collaborative Review◦Assembly and Delivery Instructions

Where Internal Communication is Needed

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Frequently and Often

When to Communicate

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How to Communicate

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Director of Internal Communication• Owns internal communication

function• Develops and crafts messages and

key points• Preps and arms your mid-level

managers to field questions

How to Communicate

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Polling Question:

Do you believe “collaborative review” can benefit your firm

and client engagements?

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Client Engagements:• Voice and Real-Time vs. Text and Delayed◦ Benefits:

Timelier completion and better service Improved Training and Development

• Remote Options◦Video Conferences◦ IM◦ Pick up the old-fashioned phone…

• Proactive, timely, real-time communication strategies are a must for managing and reviewing engagements effectively

How to Communicate

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CPA Firm Insights

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Panel of Experts

Gary Thomson, Regional Managing Partner, Dixon Hughes Goodman Mike Sibley, Audit Partner,

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1. Describe the improvement that you have seen from more effective internal communication in your

processes?

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2. What are unique approaches or non traditional channels you are using to communicate internally? What has been the impact of this

approach?

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3. What is the process you went through to implement and get the

buy-in for the new processes?

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4. What are 1 or 2 things you wish you had done differently as you implemented these changes?

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5. What types of things are you communicating and how frequently?

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Questions

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Connect with Us

Connect with the CPACA Connect with Your Speakers

Visit our website to:• Download the Whitepaper• Subscribe to our newsletter

Next Webinar:• September 24, 2013, The

Quest to Build a Learning Culture

CPACONSULTANTSALLIANCE.com

Dustin Hostetler, Flowtivity• 330-345-1646• dustin@flowtivity.com

Sarah Johnson, Inovautus• 773-208-7170• sjohnson@inovautus.com