Mindsets, skill sets and toolsets are all important in business transformation, yet mindset is the primary challenge for most businesses.
Communications, processes and resource allocation directly address firms' current capacity and capabilities issues. Nick Sonnenberg, author of "Come Up for Air," refers to this as the CPR framework. While most people think of CPR as an emergency lifesaving procedure when the heart stops beating, communications, processes and resource allocation are critical in managing change and transforming your firm for sustained success and future-readiness.
Here is a brief overview of how the CPR framework can help you and your firm accelerate your vision and strategic plan. (If you don't have a written vision and strategic plan, that should be your top priority.)
Communications
Email is overutilized for effective communications — especially for internal communications in most firms. Changing your email management strategy can increase capacity by at least one hour per day. That fact alone should get your attention. Sonnenberg believes you should only use email for external communications, and work management tools like Asana and Microsoft Teams should be utilized internally.
Stick with me for a moment while I explain the difference between "push" versus "pull" communications. Email is an example of push. Teams and Asana are examples of pull communications that allow you to access information (project status and task assignments) on your schedule.
Firms should have been moving in this direction before the pandemic. However, the move was initiated and accelerated by going remote and the need for the ability to pull rather than push information and data. This alone reduces the amount of time spent on email as well as the number of emails. Now, the questions are:
1. How do we change mindsets and processes to manage communications better?; and,
2. Are we utilizing the available technology effectively?
Email was never intended as a project management, work management or process management tool. Work management, project management and process management have different time horizons. Work management focuses on short-term tasks and workflows that must be completed within a day, a week or a month. Project management focuses on medium-term projects that may last from several months to several years. Process management focuses on long-term business processes that may require continuous improvement over several years or even decades.
This leads directly to the challenges and the need for standardized and digital (automated) processes to increase capacity and allow those with technical accounting and tax skills to focus on their unique abilities.
Processes
Process management is critical for achieving consistency, quality and efficiency, ensuring that all processes are optimized to deliver the desired outcomes. Process management focuses on designing, implementing and monitoring business processes to achieve specific objectives.
Processes are activities that transform inputs into outputs to deliver a product or service. Process management involves identifying opportunities for improvement, designing efficient workflows, implementing standardized procedures and monitoring performance metrics.
This is where Lean Six Sigma and technology, including artificial intelligence, can provide the rocket fuel for increasing capacity and capabilities. Examples of processes that leading firms are automating include:
- Billing and collections (improved cash flow);
- Proposal and engagement letters (improved margins);
- Aggregation, filing and delivery of audit and tax documents (improved client experience);
- Onboarding of employees and clients (improved attraction and retention); and,
- Focus on the client and employee experiences (improved unique-ability teams).
- Once defined, you can and should incorporate processes into your work management system. This includes checklists, instructions and documents (including videos) to accelerate knowledge transfer.
Resource allocation
Talent management plays a pivotal role in resource allocation. Human capital is a valuable resource that drives a firm's innovation, productivity and growth. Allocating talent effectively involves identifying the right people for the right roles, nurturing their skills, and providing them with opportunities for professional development. By matching skills and expertise to specific tasks, firms can optimize productivity and enhance overall performance. Talent management also encompasses succession planning, employee engagement, and retention strategies, which help firms maintain a competitive edge and minimize talent gaps.
Technology and automation are also crucial aspects of resource allocation. Technology advancements have revolutionized how firms operate, making it imperative to embrace digital tools and solutions. Our metrics indicate that most firms spend most of their technology budgets on core applications (keeping the lights on) rather than innovation. Some firms are adding 1-2% of revenues to the traditional 6% of revenues currently invested in technology.
Firms also realize that integrating acquired firms is expensive and challenging due to the technical debt most acquired firms have accumulated. According to our metrics, this runs about $15,000 per employee depending on the number of employees and offices.
Efficient resource allocation includes investing in appropriate technology to streamline processes, improve efficiency, and enhance decision-making. From work management software to data analytics tools, firms must assess and prioritize their technological needs, allocate resources for implementation, and provide training to ensure successful adoption. The governance of technology and innovation are critical factors, along with a current technology plan and budget based on the firm's vision.
Training initiatives complement talent management and technology adoption by equipping employees with the skills and knowledge needed to excel in their roles. Training programs enhance employee performance, boost productivity, and foster a culture of continuous learning. Firms must identify skill gaps, design training modules, and allocate resources to develop their workforce. By investing in training, firms empower employees to leverage technology effectively and adapt to changing business environments, ultimately maximizing their contribution to employee and firm success.
When firms allocate resources effectively, they can attract and retain top talent, providing them with the skill sets and toolsets necessary to excel. Well-trained employees are better equipped to leverage technology, enhancing resource utilization and firm efficiency. This virtuous cycle ensures the firm remains adaptable, competitive, and capable of meeting evolving market demands. It is essential to strike a balance when allocating resources. Mindset is the differentiator. Leadership, relationships and creativity drive value creation.
Think — plan — grow!
