Howard’s Inner Circle, No. 40: The Literal Disconnect

I have always been intrigued by marketers and their interactions at accounting firms. Perhaps it is because, in my opinion, the role of marketers hasn’t been fully determined, or better yet, agreed to at many firms. The actual often conflicts with the expected and perceived roles.
Surprisingly, sometimes unwittingly, the marketer actually eliminates their position at the firm by being too successful as management then questions the cost and need of a highly-paid marketing director when its marketing efforts have matured with regard to branding, proposals, pipelines, and collateral materials.
Contrast that to firms where the seasoned marketing director is a vital and integral contributor to new business development and strategic planning. I believe these particular firms are enlightened, in part, because their marketing directors have a keen understanding of management at their firm and how to build a professional relationship deeply imbued with trust and respect.
It is important for relatively new marketers to develop a roadmap for professional success. The Association for Accounting Marketing can help with tools and in finding mentors. One tool, if it is still available from AAM, is a CD of the Managing Partner Panel Discussion from the AAM Executive Leadership Conference (February 2008), which Thalia Zetlin and I co-moderated. It provides an insider’s look at what it takes for a marketer to earn the trust, respect, and a voice in a firm’s strategic direction.
I would also recommend reading I'm Right, You're Wrong, Now What?: Break the Impasse and Get What You Need by Xavier Amador. With the commodization of services and changes in the nature and number of referrals, the importance of relationship building has increased. Although the firm/client relationship is all important, the first relationship that needs to be built properly by a marketer is their relationship with the firm, otherwise an unperceived impasse could doom a marketer’s future there.
© 2011
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Above may be reproduced in full if that fact is stated and Howard Wolosky at http://howardwolosky.blogspot.com is credited as the author. Note: The above also appeared on the Association for Accounting Marketing group LinkedIn site in the discussion and received a number of comments.

Howard’s Inner Circle, No. 11: What Is the Best Book You Ever Read? Why?

I read a lot of self-help and business books and always get a few kernels of brilliance from them. However, the self-help books often bother me as many are constructed as workbooks filled with exercises and warnings if you don’t do the exercises you won’t get anything from the book. The business books are also heavy-handed, as authors after making one keen observation apply it in every context he or she can think of to prove its worth.

The most recent book I read was Paper Airplane by Michael McMillan mentioned by Tim Storey in Utmost Living. It was very good, but not my favorite. It tried to be too many things: a self-help book, a business book, and camouflaged with brilliant design work, also as a children’s book. In the end, it reminded me of my favorite book.

Tom and Pippo Make a Mess by Helen Oxenbury is hard to find as I believe it is out-of-print. I discovered this so-called child’s book at well over age 50, when it was brought to my attention by Alex’s father. He had been reading the book to Alex for many years (my guess at least eight). Alex, a remarkable young man, who has fought with tenacity since he was born at a birth weight of 21 ounces, loves the book, and often, after his father finishes reading it, rips up the book and makes a mess.

Every adult and child can benefit from its message whether as a gentle reminder or as a wake-up call. Unlike the many self-help and business books, Tom and Pippo Make a Mess has an ever so-light touch, and encourages the reader to think and reach his or her own conclusions. Equally important, the book’s message with Alex’s comment resonates louder the more times you read it or have it read to you.

What’s your favorite book? Why?
© 2010
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The above is from the newsletter, Howard’s Inner Circle, which periodically appears on the blog, “Instigator” at http://howardwolosky.blogspot.com/. It may be reproduced in full if that fact is stated and Howard Wolosky is credited as the author.

Howard’s Inner Circle, No. 6: As Revenue Sources Dry Up, Experiment

In New York City there is a plethora of unused offices and underutilized event spaces which is resulting in a great deal of creativity. As to the empty offices, they are being rented out in a temporary, as-needed basis. The address is usually a prime one such as Midtown. The interesting thing is what is being rented out. You get the use of an office in a suite of offices under a plan such as one that offers office space for 12 hours a month. There is a receptionist to answer the telephone and welcome visitors, Internet access, a telephone number, and the ability to rent out conference rooms by the hour. You share the suite with a multitude of businesses and individuals.

Companies, especially those with salespersons, are renting out these offices as a cheap, cost-efficient way to have suitable locations for their representatives to meet clients. Consultants also take advantage of these rentals. Building owners are very happy as the office space would otherwise remain vacant.

With regard to event places, rather then relying on corporate parties etc., the event place owners are working out deals with networking groups. The bulk of their revenue doesn’t come from rental and catering, but from what is earned by selling drinks to the attendees. The events usually occur at off times such as Monday, Tuesday, or Wednesday. I was recently at a free rooftop networking event with great views of the Empire State and the Chrysler buildings. The idea is if the networking group can get a couple hundred of attendees, it will be well worth it for the event place owners. I am sure many of those owners are trolling sites like Meetup.com which contains lists of these networking groups.

These techniques and many others are successful in these tough economic times because suppliers understand it’s no longer business as usual and creative marketing and advertising aren’t the keys. The idea is to minimize expenses for potential customers while still meeting their basic needs. This requires creativity and a willingness to question a business model that might have worked very successfully for many years.
© 2010
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The above is from the sixth issue of the newsletter, Howard’s Inner Circle, which periodically appears on the blog, “Instigator” at http://howardwolosky.blogspot.com/. It may be reproduced in full if that fact is stated and Howard Wolosky is credited as the author.

Howard’s Inner Circle, No. 5: Holistic vs. Silo Business Development

When I became editor-in-chief at Practical Accountant a decision was made that shaped the editorial coverage of the magazine for the many years that I was there. The decision was to primarily focus on regional accounting firms, not just those in the various large cities, but throughout the country.

The reasoning was they were reacting best to the significantly changing business climate. Yes, the managing partners and partners of these firms provided the leadership, but what was different from years past was that non-CPAs were playing increasingly more important roles at these firms.

That is why readers saw so many marketing directors on the covers of Practical Accountant. Because of the increased competition and the need to attract business beyond traditional tax and accounting engagements, firms relied on marketers to: develop brochures and other marketing materials, create and publicize a firm brand, formalize the proposal process, get client feedback, accumulate and analyze marketplace information, assist on niche development, focus on new client and staff attraction, create sophisticated client relationship management systems, and help design dynamic firm Web sites.

However in the last few years, I have noticed a disturbing trend, many seasoned and highly respected marketing directors are leaving some of these regional firms. These firms appear to view marketing primarily as a cost center and support operation and have decided that a lower-cost maintenance mode is possible since the primary work of those marketing directors is done.

I believe that is short-sighted and CPA-myopic.

Contrast these firms to others that view and groom marketers to become business developers. They often formally make the marketer a firm principal ensuring they play a key, direct role in executive decisions. I expect these firms will also be transforming their marketing operations as revenue centers advising some firm clients directly on marketing or acting as consultants and advisors to assist in the clients’ marketing decisions.

These enlightened firms understand that the CPA-rainmaker approach is no longer enough. They follow a team approach, work at firm buy-in, and follow firm governance procedures that ensure a more holistic, although still CPA-centric, approach to business development.
© 2010
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The above is from the fifth issue of the newsletter, Howard’s Inner Circle, which periodically appears on the blog, “Instigator” at http://howardwolosky.blogspot.com/. It may be reproduced in full if that fact is stated and Howard Wolosky is credited as the author.

Howard’s Inner Circle, No. 1: Polyglot Your Business Instantaneously

I bet most don’t know that everyone working in the pharmacy departments of the many CVS drugstores in New York City can understand Arabic, Armenian, Cantonese, French, German, Hindi, Hmong, Italian, Japanese, Khmer (Cambodian), Korean, Laotian, Mandarin, Polish, Portuguese, Russian, Spanish, Tagalog, Thai, and Vietnamese.

Unfortunately because of not sufficiently publicizing this fact, my guess is that most current and potential CVS customers aren’t aware of this. The primary way they would know is by seeing an 8-1/2” X 11” laminated paper posted on the cubicles where prescription consultations are conducted.

That paper reads at the top “Interpretation Service Available.” Below that title are 20 boxes for each of the above languages each with a hand with a pointed finger directed at 20 different foreign languages translations of “Point to your language. An interpreter will be called.” The Web site for the company, LanguageLine Services, which CVS utilizes is www.languageline.com. At this site you can see the many more languages available for translation and that an interpretation can be purchased on an as-needed basis. There are many other companies (e.g.,TransPerfect, www.transperfect.com/) out there that offer similar services.

Think of the marketing and business development advantages in offering this type of interpretation service. I have already spoken to someone at Staples and a number of managing partners of New York City accounting firms of the obvious advantages. Can you imagine if contractors and do-it-yourselfers knew at their Home Depot or Lowe’s they could converse via a third party with the expert staff at these stores in their own languages? Not-for-profits can benefit too. Although many hospitals have interpreters on staff, there usually are a limited number of languages available. Think of how many more citizens could utilize government services if they could converse in their language with government officials.

Most importantly, offering and publicizing this type of service promotes community among the various cultures that are part and parcel and make up our nation. With globalization’s continuing increasing impact, it is an imperative to be able to communicate in as many languages as possible. The belief that one language should be supreme to the exclusion of others really makes little economic sense. Hopefully, the expanded availability of reasonably-priced translation services will mean more companies, not-for-profits, and governments will understand and recognize it pays for these entities and their employees to become instant polyglots.
© 2009

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The above is from the first issue of my newsletter, Howard’s Inner Circle, which periodically appears on my blog, “Instigator” at http://howardwolosky.blogspot.com/. It may be reproduced in full if that fact is stated and Howard Wolosky is given credit as the author.

Eulogy: The Demise of Middle Managers

Extremely productive individuals are dying off in epidemic numbers and soon they will be extinct. Unfortunately, they aren’t dying of old age, but are being killed off figuratively by a number of contributing factors introduced in recent years to the business environment.

These individuals, known as middle managers, perform very important functions. They possess a vast working practical knowledge of the industry or service area in which they work. They came up through the ranks and had a keen understanding of what that means. They also act as an all-important buffer between workers and upper management, as well as insuring that the needs of customers are met. In part their success is attributed to their long-range view of things and an understanding that maximizing short-term profits isn’t the ultimate goal and that cost-cutting, a double-edge sword, must be handled with great delicacy.

So what is making these middle managers extinct? Here are just some of the tendencies of modern businesses contributing to their demise:
· There is little or no coming up through the ranks nor serving in the ranks by upper management to gain an insider’s understanding;
· Throwing up a lot quickly indiscriminately and seeing what sticks;
· A blind follow-the-industry-leader attitude;
· Big-picture closed-door planning becoming more important than and overshadowing execution and worker feedback;
· Upper management no longer knows the industry or service area that it is “managing;”
· A technology mentality is encouraging first-in-time marketplace pushes at the cost of quality;
· Bearers of bad news are punished;
· Little respect for existing products;
· No real supervision downward;
· Expertise expected instantly;
· Misplaced accountability at lowest levels;
· Responsibility scrupulously avoided at upper levels;
· Brain drain not feared;
· Making something look right overriding doing something right;
· High turnover accepted and encouraged;
· No apologies offered;
· Short-term view;
· Exit strategy in the forefront;
· Placating upper management has become a fine art form;
· Lower-level managers are working managers;
· A belief that technology can replace workers; and
· A lack of respect for the consumer.

This eulogy isn’t meant to lament the demise of middle managers, but to explain it and to celebrate all that the many middle managers accomplished. It is also to point to the legacy that was left behind and to encourage the generations that remain to build on that legacy so upper management and workers create a business world that would jointly assume the vacated roles that middle managers performed.

Online/Brick–and-Mortar Business Development Acumen

“An Educated Consumer Is Our Best Customer®” is how an off-price clothing retailer positions itself. Although not similarly copyrighted, as of late, I have come across a number of other businesses that live by that slogan with a single word change, “An Educated Consumer Is Our Worst Customer.” Unlike that off-price clothier, they don’t publicize the slogan that they actually live by, and, in fact, do their best to hide that fact. Here are two of them:
1. A vitamin chain offers a particular supplement for 10 dollars more than its online price. A clerk at their store refuses to match the price for a regular customer. The manager insists that the customer must go home and print out the proof even though the store has Internet access.
2. A bank automatically renews you two-year CD unless you come in. The rate is one percent, while if you came in, you could obtain a higher rate by renewing the CD for only seven months. Additionally the bank is offering those that open a two-year online CD a much higher rate of 2.85 percent.

Contrast those two examples with a national department store chain advertising that customers can check on computer terminals in their stores for cheaper prices available from competitors on the brand appliances its sells, and that it will match the competitor’s cheaper price.

Clients will be needing help adjusting and prospering in this brave new world where technological advances are overhauling and significantly transforming the rules of the game. Is your firm ready to help? And more importantly, how deep is the firm’s understanding and knowledge of the virtual and brick-and-mortar worlds and the possible interactions.

To find out, how about giving a 12–question test to firm members from every level of the firm--the managing partner, partners, staff accountants, marketers, technologists, and administrative support (if applicable)? One key aspect of this test is that it is an “open-book” test, in which you can use any technological aid and ask anyone outside the firm. There should be a time limit, e.g., three hours or overnight. The typed answer sheets are anonymously submitted and assembled for review by whomever the management of the firm determines is appropriate. There is no marking of individual exams.

The 12 questions are designed to focus on testing knowledge of the use of technology, the ability to obtain competitive intelligence, and business development acumen.

Questions
1. Where on the www.AICPA.org site is a database of firms which is searchable by state, city, and size of professional staff, number of branches, AICPA practice monitoring sections, and AICPA centers?
2. Is it possible in New York and a limited number of other states to buy a long-term care insurance policy that will allow the insured to qualify for Medicaid without spending down their assets? If so, what is the policy commonly called?
3. Webcams are being used more and more by churches, funeral homes, and day care providers as a service? Briefly explain how.
4. Give three examples where enhanced cell phones and other handheld devices are being used to enhance a brick-and-mortar business. Hint: Might involve calling a number with recordings or entering a zip code where there is Internet access.
5. Name a Web site for a company that will give you 250 free business cards or more (except for minimal shipping costs) and lets you pick from over 40 different, distinct designs.
6. Name the tax service that allows the user to search for federal and state and local tax incentives by the address of the business.
7. Give three novel networking techniques used by other firms? Example: One firm offers a day at a spa.
8. How many members are there in the Young CPA Network group on Linkedin, and what are the names of four specific accounting firm alumni groups on Linkedin? (If possible, pick firms in your firm’s region.)
9. Name a well-known site for helping you create and maintain a free blog.
10. How might search engine optimization come into play when a potential employee submits his or her resume electronically?
11. Name five specific strategies being used by businesses and other firms in response to the economic crisis. (Don’t include any strategies you firm is using or advising clients to utilize?)
12. How did you obtain the above answers? Please indicate all methods that you used.
Personal knowledge
Internet search
E-mail
Text messaging
Twittering
Discussion group inquiry
Telephoned someone
Directly talked to someone
Other, please describe

I’m not providing an answer key as the test’s purpose isn’t to determine who scored what or even how well research can be performed; but rather, the purpose is for the firm, as a whole, to focus quickly and in a fun way on their knowledge, the tools available to broaden knowledge, and developing a deeper understanding of changing business trends that will significantly impact clients.

Final thought: I recommend that as soon as the answers are assembled and prior to management reviews, sets of the answers be distributed, as is, to each individual who took the test (better yet, all the firm members). The idea is by that doing this the community aspect of the virtual world is being further explored, instilled, and encouraged in a primarily brick-and-mortar firm.