While this is a time of crisis for so many firms and their clients, it is also a time for firms to think about their purpose. We want clients to think about what footprint, what impact, what difference they are making, and what legacy they are leaving. How would you answer the question, “Would it make any difference if my firm weren’t here?”
He said: I like to think of the Frank Capra movie “It’s a Wonderful Life.” Clarence, the angel, shows George Bailey what the town of Bedford Falls would be like if George had never existed. I’m sure every firm has examples of how they have had a major impact on a client or two. The challenge is how to multiply those examples and make them the norm rather than the exception.
She said: You bring up an interesting point. Managing partners need to consider the firm’s impact, or lack thereof, especially in this time of crisis. This includes the impact on clients, team members and even their communities. I have heard more stories in the last nine or 10 months from firm leaders and future leaders on how clients have shared how much they appreciate the work the firm has done and how it has saved their businesses many times. This is powerful.
He said: This is not just some “pie in the sky” theory. During the last several years, Wells Fargo Bank has seen its image, stock and employee loyalty plummet. This is likely due to the diminishment of customer trust and confidence due to recent scandals. Despite efforts to turn this around, Wells Fargo is struggling mightily. We know no firm will ever be considered indispensable to 100 percent of its clients, but it is an aspiration that should be a driving force for all firms. So, what should firm leaders focus on that will ensure their firms are making a significant positive impact in their markets, on their teams, and their clients’ businesses?
She said: Let’s look at some of the actions firms should consider in addressing this opportunity. Firm leaders must start with some tough questions and be prepared to make some uncomfortable decisions. Do we really have a viable mission — the reason for your firm’s existence? Is it to serve clients, build careers, and make money? Most firm’s mission statements are. But what else? How are you different from other firms? What’s your secret sauce? You have one; you need to figure out what it is, then share it and live it out.
He said: Is your talent management system effective? Do you do what is best for your clients? Do you have the proper systems in place to make sure everyone’s behavior is in line with your purpose? These are questions that directly impact an organization’s ability to leave a mark.
She said: Leaders should also be asking: How do we measure and reward what we wish to achieve? How’s that working so far? Does it need attention? People pay attention when you keep score. This starts at the top of the firm, by the way. The most successful, productive and impactful firms have a nonnegotiable culture of accountability. Leaders set the tone for everyone.
He said: I agree. It is up to the firm’s leadership to make this happen, and it has to be more than just check-the-boxes. It is a long-term strategy, which very few firms or businesses really feel comfortable embracing. Leadership’s responsibility is to set long-term goals with specific action steps and measurements and accountability throughout the firm.
She said: Alignment of culture, people, systems and purpose, and rewards within the firm, are critical if this is going to happen. If you hire people with an “eat what you kill” mentality, yet the firm’s culture is touting “one-firm concept” and “teaming,” something is amiss. Alignment is key here. Leaders should analyze how culture, people, systems, purpose and rewards all align. When they do not, frustration ensues, and dissonance grows. This, ultimately, shows up in the way you can serve clients and grow the firm.
He said: I’m glad you mentioned purpose. The firm’s purpose is the core reason for being. It is the impact a firm wants to have on its surrounding community. This desired impact is grounded in shared values.
She said: Purpose seems to be a fairly new idea in the business community. I can see how an accounting firm’s focus on helping minority businesses get off the ground and succeed would be a great example of purpose.
He said: Exactly. You can think of many different purposes that a firm could have, from making their firms more diverse to promoting financial literacy in the community.
She said: I think of CPA firm professionals as true advisors to business leaders. The impact that firm leaders have on their clients personally and the impact on their clients’ businesses are far-reaching and extraordinarily impactful if you think about it. It is something to be proud of.
They said: In addition to zeroing in on your firm’s purpose and the impact you would like your firm to have, you can also help your clients determine what their purpose is or even could be. Now is a great time to take a look at how you are currently, and how you plan to, make such an impact.
