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Local Knowledge. The art of blending in and knowing which way your putt will break

Mon, 16 Mar 2026 21:39:26 GMT

Local Knowledge

The art of blending in and knowing which way your putt will break

Golfers use a phrase that doesn’t get talked about enough in business – “local knowledge.” It’s the quiet advantage of the people who play a course every week. They know how the greens roll. They know where the wind shifts in the late afternoon. They know which putts break in ways that don’t make sense unless you’ve tried to navigate those greens a hundred times.

When I lived in Connecticut I was a member of a country club there for many years. One of the strange things members knew was that many of the greens on the golf course would subtly break toward an out of sight highway that runs alongside the course at the base of a valley.

Why?

Who knows. Most likely it has to do with the topography and watershed that’s been in place for millions of years. You can design greens and prop them up, but the land still remembers where gravity wants to go. Guest players would read the green one way. Members knew better.

That’s local knowledge.

I was reminded of the local knowledge concept recently in my current home of South Carolina. I’m a member of a private club near where I live. A recent Friday afternoon I found a break in my schedule and snuck away my office work to play eighteen holes.

Unfortunately, my home course was unavailable due to a members-only tournament going on that I couldn’t commit to due to my work schedule and the two best public courses nearby had no tee times on short notice. So, I ended up at a local course that carries golf legend Arnold Palmer’s name. I’ll just say this: if Arnold Palmer were alive today, I’m not sure he’d be thrilled to see his name on this establishment which I’ll just say was a “dog run” at best.

Still, it was a beautiful early spring afternoon despite my early spring allergies and I was able to remain at a safe distance from a couple of alligators on the course. I’ve found I don’t mind the allergies when I’m playing well, and that was the case on this day.

Then I reached the 12th tee where four wild turkeys were holding court on the tee box.

One of them had its feathers fully fanned out like a peacock. I was enthralled with my up- close encounter with nature. I reached for my phone to snap a photo and then the gang of turkeys started gobbling at me with displeasure. They started walking toward me and their gobbles got more intense.

The turkeys were behaving aggressively trying to intimidate me off their territory. I naively laughed. Then I realized these birds were serious. They were coming at me, and they were faster than my golf cart.

At that moment I began to consider the possibility that I might spend my Friday afternoon tangling with a gang of turkeys. Then I noticed reinforcements coming in. More turkeys sprinting toward the tee box from the fairway intent on helping their comrades.

So I made a strategic decision. I skipped the 12th hole and as I looked back, seven of the turkey thugs were gaining on me.

When I got to the 13th tee, things weren’t looking any better. A trio of these gang gobblers were patrolling the 13th fairway daring me to set foot on their turf. That’s when a friendly younger couple playing behind me caught up to me. They had a confident swagger— the kind of people who seem like they don’t usually get rattled.

They were rattled.

They asked politely if they could jump ahead to the 14th hole. I said, “Sure, but I’m also happy to let you play through.”

Their response:

“We live here. We play here all the time. The turkeys are unusually aggressive and territorial. They never let us play #13. This afternoon they’re also on #12.”

Then they added: “If you don’t see them, it doesn’t mean they’re gone. They hide in the brush and come running out” to defend their turf.

Local knowledge.

Sure enough, the couple skipped the 13th hole and I followed them.

Later, I joked to a friend that I took the liberty of scoring a par on both of the turkey-cancelled holes.

He asked: “Dan, if you parred the next hole would that mean you scored a turkey?”

There’s a business lesson in all of this. Many markets operate exactly like those turkeys. From the outside, everything looks open. Friendly. Logical. Accessible.

Then you step onto the tee box.

And suddenly the locals start gobbling.

Some markets are deeply parochial. They trust people who are “from here.” They work with firms that share their geography, their relationships, their background and their culture.

Providence, Rhode Island is famous for this provincialism.

I once pitched a significant opportunity there and the CEO of the company, who wanted to hire my firm, introduced me to his team of decisionmakers as being “from down Killingly way” — referencing a Connecticut town just across the border from Rhode Island. I had the full support of the CEO, but didn’t get the project. I wasn’t one of them.

I once pursued an engagement with an accounting firm in Portland, Oregon that was planning to expand regionally. During the conversation a partner asked me a question that, in hindsight, was signaling to the group he was done with me.

“Dan, what do you know about living in Portland and how will you relate to us?”

I should have responded: “What do you know about integrating and running a firm in Boise, Idaho? Because that’s one of the cities you want to expand into.”

But I didn’t.

I live in South Carolina, eleven miles from Savannah. Local enough, right?

Not quite. If someone hears that I’m originally from Chicago or Connecticut — or even worse, from just across the border in South Carolina — the social doors close quickly.

Boston and Philadelphia can be the same way.

Ironically, Boston gives me a pass because I was once a partner in a Boston-based CPA firm. Having that credential under my belt makes me a Bostonian.

Tribal membership confirmed.

Local knowledge matters. Local markets have a unique terrain just like every golf course does.

There are invisible slopes that respect history, relationships, cultural norms, and regional pride. Visitors often misread the green. Locals know how the ball will break.

But there’s another lesson here. Sometimes the outsider with the fresh perspective is the one who can provide the most effective and objective advice.

Good advisors know two important things:

1. They respect the local knowledge.

2. They have the courage to bring perspective from outside the echo chamber. Without that courage, you may just fall victim to the “turkeys” blocking your ability to bring great value to your client.

Conclusion

Local knowledge is an advantage, but it can also bury you in the inertia trap. The best advisors respect the terrain, know when the turkeys are hiding, and still have the courage to call the break differently when it matters most.

What 25 Years in Accounting Taught Me, The Future of Accounting Is Advisory

Thu, 05 Mar 2026 20:56:00 GMT

What if the future of accounting isn’t about compliance, but about courage?

In a recent episode of Codified Wisdom, I sat down to share my journey from a daydreaming high school student to CPA, firm partner, and founder of Integrated Growth Advisors.

We talked about the profession’s evolutionary turning point, why advisory is no longer optional, and how AI is elevating — not replacing — the role of the trusted advisor.

We also explored leadership lessons, the power of seeing around corners, and why stepping outside your comfort zone (yes, even into improv comedy) might be the key to growth.

If you're navigating change in the accounting profession — or leading through transformation — this conversation is for you.

Ep. 13: The Evolution of a CPA: Shifting to Advisory with Dan McMahon - YouTube

The Illusion of Control Nearly Drowned Me

Wed, 25 Feb 2026 22:17:44 GMT

I’ve learned something important about competence. Sometimes what feels like competence is just projection. And projecting a false reality, especially when under pressure, is dangerous.

As business owners and CEOs, we build confidence over years of repetition. We develop instincts. We create patterns that work. We get predictable outcomes. And over time, something subtle happens. We begin to believe the outcomes are because of us — not the conditions around us.

And when life destabilizes us—chaos or a loss in our personal life, business downturn, market disruption—we don’t always slow down. We tend to speed up and hope to move quickly past our instability. When faced with adversity, we tend to make hasty decisions and sometimes convince ourselves that motion equals progress. It often doesn’t.

That motion may actually be busyness masquerading as forward movement. I have learned this lesson the hard way. Let me illustrate by sharing a story.

What follows actually happened. I later performed it in The Moth storytelling format — I’ll share that link at the end.

I remember when I was living in Connecticut, a late winter day above 40 degrees. The sky was overcast. The air was damp and it had an early springtime feel to it. This is a perfect day, I thought to myself, to take my newly adopted pup Nina – an affectionate chocolate lab whose Petfinder profile said she was a ‘water dog’ - out to the local pond for a swim.

Before giving you the outcome, I should mention this was at a critical juncture in my life. I had just finalized a messy divorce and recently lost O’Malley, an amazing golden lab who had proven to be my best friend over the years.

I was impatient to get my old life back.

O’Malley was incredibly obedient, predictable, and always under my control. I assumed it was because I understood dogs. I considered myself something of a dog whisperer. Little did I know on that late winter day that my impatience (and hubris) almost cost me my life and Nina was going to take center stage in this saga.

After a mile-plus hike through the slushy Connecticut woods, Nina and I arrived at the local pond anxious to play fetch. But I realized I had left what I will call the ‘retrieval device’—aka a tennis ball—in the back seat of my car. I shuddered at the thought of wasting another hour to hike to the car and back simply to get a tennis ball.

At this time of my life, patience was not one of my virtues. So, I decided to let Nina off leash and she went straight for the water, splashing with pure joy. It was fun for me to share this special moment with Nina. But that special moment became 30 more consecutive moments.

“NINA! NINA COME! NINA GET OVER HERE!” I screamed.

But no matter how loudly I yelled, she wouldn’t come.

Then, a water snake swam past Nina’s snout. Naturally, she gave chase, and the next thing I knew, she was swimming 150 yards offshore. Those anxious seconds turned into minutes. As more time passed, it became clear she wasn’t going to listen to me. I thought to myself, “what the heck is wrong with her !!!”

Fast forward 40 minutes later, and she’s still in the frigid water, but now swimming in tight circles. I thought to myself: “My newly adopted dog is not going to die today because of my own incompetence!”

So, I scanned the pond for a way to get closer to where Nina was swimming. I spotted a path to the right that was protected by tall grasses, swaying in the breeze and yellowed by the dead of winter. I sprinted to that spot and in the magnitude of the moment, I stripped down to my boxer shorts.

Barefoot and shivering in the cold damp air not even thinking about how ridiculous I must have looked, I went in to save her.

The water was freezing cold. My chest contracted and pressed inwards. The water smelled like sewage and my toes slipped through the slimy mud at the bottom of the pond. But I kept churning through the muck toward Nina. When I got to within six inches of her, she turned and bolted for shore without giving me a second look.

Nina wasn’t in danger. This was just a game for her!

So, I trudged back to shore and took off in pursuit of Nina, running barefoot across a field of thornbushes that I barely felt because my feet were so numb. Just as I was about to catch up to Nina, she jumped back into the frigid water. Awkwardly, I followed.

Just then, I spotted a family walking by on a nearby trail.

Seeing me in distress, the father whistled for Nina. He whistled. She came. Why didn’t I think to whistle!

I lugged my pasty white body out of the pond to retrieve Nina. I was embarrassed and full of guilt but also relieved to have her back. We all were speechless and I managed to whisper a gracious “thank you” to the family.

On the car ride home, I looked over at Nina sitting upright in the passenger seat. She was soaking wet and smiling ear to ear.

I had gone into the frigid pond to rescue my drowning dog. But what was actually drowning that afternoon wasn’t Nina. It was the illusion that I was in control.

My Reflection

Looking back, I wasn’t trying to rescue my dog. I was trying to rescue my sense of control. I had projected my history with O’Malley onto Nina. I skipped preparation because it felt inefficient. I confused speed with focus, and I paid for it.

That afternoon at the pond became a metaphor for working thru chaos.

When we rush to regain stability…

When we assume past wins transfer automatically…

When we ignore small disciplines because they feel inconvenient…

We don’t just risk embarrassment.

We risk losing control of the very thing we’re trying to protect.

And often, what’s actually drowning isn’t the business.

It’s our illusion that we’re still in control of it.

If you would like to see my performance of this story, click the following link and find my five-minute story at the 8:55 time marker: https://www.youtube.com/live/5-wdeIkmGQw?si=0_J7qgbwG_RIOhKy

Governance is Your Growth Engine: Build Value and Outrun Private Equity

Fri, 30 Jan 2026 14:40:26 GMT

As private equity reshapes the accounting landscape and traditional partnership models strain under talent shortages and succession challenges, strong governance has become the real differentiator. By replacing ad hoc decision-making with clear roles, accountability, performance metrics and disciplined planning, firms can turn chaos into clarity and intention into execution.

Read more in Dan McMahon's latest article published in TXCPA here: Governance is Your Growth Engine: Build Value and Outrun Private Equity

Gameplan Your Growth. The X’s and O’s of Building a Scalable Business

Sun, 21 Dec 2025 16:20:55 GMT

Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.

Sun Tzu, The Art of War

If you’ve ever watched a great basketball team, you know the difference between an extra hard effort and a beautifully orchestrated game plan that is executed to a successful outcome.

The distinction between working harder or working smarter matters just as much in building a scalable business.

“Gameplan your growth” is a phrase we use with our clients. It’s because most business owners don’t lack ambition, intelligence, or effort. What they lack is a clear game plan — the X’s and O’s that turn activity into results.

Without a game plan, business growth becomes exhausting instead of energizing and scaling the business becomes impossible.

Why effort alone stops working

We often meet owners who are close to their breaking point. They’re working harder than ever, but things still feel chaotic and they don’t feel they’re making progress:

• The business depends too heavily on them alone.

• The team isn’t aligned.

• Decisions get revisited over and over.

• Nothing feels finished.

• Growth feels fleeting, not sustainable.

In basketball, when a team is disorganized, the answer isn’t “play harder.” It’s to slow the game down, reset roles, clarify responsibilities, and get back to fundamentals.

Business is no different.

Chaos is Calmed by Governance

Chaos creates decision fatigue. It pulls owners into everything. It turns leaders into firefighters and organizations into an array of siloed individuals rather than a coordinated team.

Over time, chaos doesn’t just limit growth — it drains energy, confidence, and enjoyment.

That’s why so many owners feel burned out even when the business is “successful on paper.”

Governance must be solidified at the core in order to breed some predictability in what can otherwise be a chaotic uncertain mess.

Governance simply means clarity:

• Who decides what.

• Who owns which outcomes.

• How priorities are set.

• How progress is measured.

Without governance, strategy becomes a suggestion. With governance, it becomes executable.

This is why our work with entrepreneurial businesses always starts with structure before scale.

The Focus Imperative: choosing what not to do

One of the biggest myths in business is that growth comes from doing more.

In reality, growth often comes from doing less — but doing the right things well.

We call this The Focus Imperative: the discipline to narrow attention, eliminate distractions, and align effort around what actually moves the business forward.

Great teams — whether in sports or business — aren’t trying to run every play. They’re executing the right plays at the right time.

From chaos to unity

When roles are clear, priorities are visible, and expectations are reinforced, something powerful happens:

• Teams gain confidence.

• Owners regain perspective.

• Decision-making speeds up.

• Accountability feels fair.

Unity comes from clarity at the core.

That’s how strong cultures are built. And it’s why the most consistently successful programs — whether you’re looking at perennial contenders in sports or sustainable organizations in business — always emphasize fundamentals, discipline, and shared standards.

Long-term success comes from a game plan that emphasizes accountability, alignment, and follow-through.

Gameplan your growth

If you saw our message during the December 21st UCONN-DePaul basketball game and found yourself nodding along, here are the takeaways:

• Growth isn’t about more effort.

• It’s about focus, better structure, and better roles.

• It requires clear priorities and a trusted game plan that your team will buy into.

When the X’s and O’s are clear, scaling isn’t chaotic. Its focused and pure.

CPA AI Readiness Review & Roadmap

Mon, 01 Dec 2025 17:27:00 GMT

A practical, safe starting point for firms that want clarity without the hype

Most CPA firms know AI is coming, but partners tell us the same thing: they’re not sure where to start, and the noise from vendors and alliances isn’t helping.

That’s why we created the AI Readiness Review & Roadmap; a 2–3 week engagement designed for small and mid-sized firms that want a clear view of their current state and a practical plan for what comes next.

What the Review Includes

· A grounded understanding of where your firm stands today, including the tools and informal practices already in use

· A look at staff readiness, partner alignment, and risk considerations

· Identification of safe, appropriate AI use inside your current systems

· A review of your existing tools (whether you’re using none, a few, or more than partners realize)

· A simple roadmap outlining practical next steps, including where a future pilot may make sense — if you choose to pursue one

What This Is Not

· Not a workflow mapping project

· Not a workshop or training program

· Not a vendor evaluation or tool rollout

This engagement is about clarity, confidence, and helping partners understand what’s right for their firm — without disruption, and without pressure to adopt anything they’re not ready for.

What You Receive

· A concise executive brief with findings and recommendations

· A 90-day roadmap with practical, low-risk steps

· A starter view of governance and reviewer accountability so you can use AI safely

· Optional guidance on how a future pilot could be structured, tailored to your firm’s size and systems

Who It’s For

Ideal for small and mid-sized CPA firms that:

· Want to use AI safely and effectively but aren’t sure where to begin

· Need clarity before choosing tools or launching internal initiatives

· Want to move at a measured pace that protects quality and client service

· Prefer a calm, neutral alternative to vendor-driven AI messaging

FAQ – AI Readiness Review & Roadmap

Do we need AI tools in place before starting? No. Many firms have no formal AI tools, and some have tools being used informally without partners realizing. The review starts with wherever you are today.

Does this require training staff or rolling out software? No. There is nothing to buy and nothing to install. The focus is clarity, readiness, and sensible next steps.

Will this disrupt client work? No. The engagement is lightweight and conversational. We work around schedules and avoid pulling staff away during peak periods.

Does this include workflow mapping or process redesign? No. This is not a workflow or process engineering engagement. It’s a readiness and strategy project.

Will we get a recommendation on pilots? Only if a pilot makes sense for your firm. The roadmap may include suggestions, but you are not committing to run one.

How long does it take? Most firms complete the review in 2–3 weeks, depending on availability for short conversations.

What do we walk away with? A clear picture of your current state, a 90-day roadmap, and next steps that fit your size, systems, and risk profile.

Is this appropriate for firms that want to move slowly? Yes. This offering is specifically designed for firms that want clarity without hype, pressure, or disruption.

Should you wish to explore this further, you may schedule a brief introductory conversation using the link below:

Select a Date & Time - Calendly

We would be happy to assist and welcome the opportunity to connect.

3 Insights Every Business Leader Should Hear

Mon, 10 Nov 2025 19:45:43 GMT

Dan McMahon recently joined Matt Zaun on his "Stories with Traction" podcast to explore what happens when business leaders step outside their comfort zone and how those lessons translate into better leaders within their companies.

It was a candid, energizing conversation about communication, culture, and courage, especially for leaders navigating growth and change.

Here are three key takeaways from our conversation:

Leadership requires risk

Stepping into something uncomfortable whether it’s public speaking, advisory work, or firm transformation builds the credibility that inspires your team to follow.

The strongest leadership happens when you demonstrate the courage to do things outside your comfort zone. Dan and Matt explore what happens when identity is too tightly tied to career success and why showing vulnerability can build trust.

Humor is a leadership skill

Matt and Dan unpack how using humor sharpens your business communication, breaks down barriers, and helps leaders to connect with people as well as defuse tension when things get tough.

Identity must evolve

As your firm grows, so must your definition of personal success. The strongest leaders separate who they are from what they do, allowing room for growth and reinvention.

Listen to the full episode here:

Episode 170: Lessons from the CPA Who Took the Mic (and the Risk)

The Art of Growth and Leadership: Insights from Dan McMahon on Bee Formless

Mon, 10 Nov 2025 19:35:24 GMT

From CPA to Leadership and Growth Advisor: Insights from Dan McMahon on the Bee Formless Podcast with Belinda Murray

In a recent episode of the Bee Formless podcast, host Belinda Murray sat down with Dan McMahon, founder of Integrated Growth Advisors (IGA), to explore his unique journey from a seasoned CPA to a leadership advisor who blends business strategy with innovative tactical solutions.

Dan’s story offers valuable lessons for business leaders and entrepreneurs looking to grow their businesses while staying true to their personal and professional passions.

Bee and Dan cover:

Founding IGA: Embracing What Dan Loves to do
Improv: More Than Just a Hobby; a new way to think and collaborate
Integrated Growth Advisors: Helping Firms Grow with Purpose
The Importance of Pausing, Reflecting, and Active Recovery
Coaching and Continuous Growth

For business leaders looking to elevate their businesses and themselves, Dan’s story is a powerful reminder that growth isn’t just about numbers—it’s about communication, strategy, mindset, execution, and leading with purpose.

You can hear more of Dan’s insights on the Bee Formless podcast with Belinda Murray by clicking here:

Yes-And Leadership: Stand-Up Courage & Freedom from the Grind with Dan McMahon, Flow Driven CEO - YouTube

The Power of ‘Yes, And’... Listening, Agility, and Leadership in the Moment

Thu, 25 Sep 2025 20:06:45 GMT

As regular readers of this blog know, I’ve immersed myself in improv training for several years. Originally, I turned to improv to improve my public speaking and presentation skills. As an accounting firm partner who served in a leadership role, I used to get quite nervous when presenting to client boards, at firmwide meetings, or even to the firm’s management committee.

That discomfort carried over early on to my current role as a management consultant where I must do more than my fair share of public speaking.

Thanks to improv, I no longer feel anxious when at the podium for work or on-stage doing improv or something even scarier -- standup comedy. While I got involved with improv to overcome my fear of public speaking, it also made me a better listener and a more collaborative team player.

Improv (aka improvisational theater) is a form of live performance in which actors create the characters, dialogue, and plot on the fly without a script. While it is often comedic, improv can also be used for dramatic or abstract performances.

A pillar of improvisational theater is the concept of "Yes, and ...". That means an improviser should accept what another improviser has stated ("yes") and then expand on that line of thinking (by adding an "and"). The “Yes, and” principle can also used in business and in other fields for improving the effectiveness of the brainstorming process, for fostering effective communication, for encouraging the free sharing of ideas, and for driving collaboration among teams.

When I’m in a boardroom speaking to a client, I must think on my feet. I must also learn to read the room, connect with the audience, listen intently, and craft appropriate responses to what’s being said. When doing improv, the audience shouts out a topic or an idea, and the performers must act out their own interpretation of the concept and set the table collaboratively so their fellow performers can build on what they’ve said.

Learning how to handle spontaneous interruptions, whether on stage or in the boardroom, is an incredibly powerful skill to have in your arsenal.

On stage, you never know what the audience will call out to you. You must stay in your element and listen carefully before responding. If you’re a CPA advising clients, there could be any number of curveballs thrown at you when you're in front of the management team reviewing financials, presenting a proposal, or delivering the findings of a report.

Everybody has a unique perspective on what you’re delivering and you must be ready to digest that information – without taking it personally -- and respond in an intelligent, confident, and respectful manner.

As accountants, we’re risk averse by nature. We try to eliminate as many unknowns and variables as possible.

When preparing for a presentation, we spend countless hours trying to anticipate every question or criticism that’s likely to come our way.

I get it. Nobody likes to feel foolish or unprepared. But improv trains you to do the opposite: Don’t come in over-prepared. Just get better at being able to think on your feet and building off what the audience is throwing at you.

Improv is not only a great skill to have for presentations and meetings, but also for job interviews, sales calls, networking events, podcast appearances, and even dating. Think about how much confidence you’ll have when you know you can go into any kind of unfamiliar situation – unprepared – and handle whatever comes your way without stammering, getting flustered or breaking out in a sweat.

Real world example

A few years ago, I was scheduled to present to a prominent CPA society. In my hotel room the night before the meeting, I sat down to review my slides one final time and suddenly realized the presentation was completely wrong for the intended audience. “I don't want to say this,” I told myself with dismay having worked incredibly hard on the presentation. “I don't think these people wants to hear this,” I told myself, as I felt that time was slipping away.

So, I redid my entire slide deck between 4pm and 10pm the night before the meeting and showed up the next day without rehearsing the new deck. My improv training kicked in and I just rolled with it. In fact, I was more relaxed than usual. I wasn’t trying to remember my lines; I was just in the moment, reacting to what the audience was asking me and reading their body language. Long story short, the presentation went very well and I ended up with two new clients and several connections.

Improv for strategic planning and leadership

When helping clients with their strategic planning we always start with a blank whiteboard and blank sheets of paper. You never know what's going to come up when you're standing in front of a management team. There’s usually some hesitation from the participants. Then somebody says something, another person echoes that sentiment and you've got to think on your feet, categorize the information and communicate with the group. You also need to respect each person’s unique input—whether it’s on point or not -- and navigate the discussion knowing that nobody is perfect. Improv helps with that.

Leaders and teams increasingly face situations without clear precedents. Improv helps train you to be in the moment, making decisions without a script, shifting gears quickly and innovating on the spot, since you must build only on the materials put in front of you. The key is to avoid being a “ yes, but’er, ” which essentially is a conversation breaker. Alternatively, say “Yes, And” – with the intent of being additive rather than dismissive or cynical.

Getting Started with Improv

Improv can be extremely effective for collaboration and teamwork. Try it at your next offsite meeting. I recommend starting with a trained facilitator or take your team to a local improv theater and have an instructor guide you. You can also encourage team members to take improv classes individually. After some initial reluctance, your team won’t ever look at each other the same way again – they’ll have a much deeper understanding of each other that’s very different from where they sit on the org chart.

Conclusion

If you need help finding an improv trainer or class, or just want to learn more about the process, contact me any time. I’m happy to help.

AICPA’s 5 Pillars for “Transforming” Your Business Model Here's where small and mid-sized CPA Firms get stuck

Wed, 30 Jul 2025 13:12:43 GMT

Key Takeaway

The AICPA has started an important conversation. But for small to mid-sized firms, transformation doesn’t just happen by knowing the five pillars — it evolves by taking action to align the pillars through an effectively designed and operating governance infrastructure that deploys periodic strategic planning iterations and that adheres to cultural clarity.

The July issue of Journal of Accountancy (JoA) offered an important reminder that the profession is undergoing a transformation due to staffing shortages, technology advances, and the influx of private equity investment.

It also highlighted the need for stronger firms to address the ever-changing industry landscape. As detailed in the lead story: Transform your business model, the AICPA Private Companies Practice Section has developed a roadmap for CPA practice modernization. According to the article, there are “five pillars” for transforming the CPA firm business model:

1. Strategy.

2. Governance.

3. Service Offerings.

4. Technology.

5. Culture and Talent.

It’s a solid framework, especially as firms rethink how they create long-term value for clients, staff, and successors. Applying a buzzword like “transformation” to our profession is on point and is probably scary for many CPAs. Therefore, I think this outlook needs some added clarification. In my view, the transformation requires reshaping a firm to be more valuable, more sustainable, and more transferable. What is necessary, as the JoA article alludes to, building a better business altogether beyond viewing the firm as a practice.

Our firm’s advisory work guides firms on all of the five pillars and focuses heavily on three: Strategy, Governance, and Culture & Talent. We also work closely with firms to help them reimagine their service offerings by helping them expand beyond traditional compliance work toward advisory services. This shift is not theoretical. It’s operational, and for most smaller to mid-sized firms, it’s a real challenge going from a historical perspective (compliance) to a forward-looking perspective (advisory).

The challenge is greater for firms built on the partnership model. It’s an easier transition for firms that have proactively adopted a corporate model.

Here are four reasons why transformation is difficult for many small to mid-sized CPA firms:

1. Governance is often mistaken for bureaucracy, with decisions being made via partner conversations rather than through defined structures. This is less of an issue with firms that have adopted a corporate model.

2. Culture is treated as a feeling instead of as a system. Without communication protocols, accountability mechanisms, and behavioral clarity in place, the way it feels to work at such a firm is inconsistent and frustrating.

3. Strategy is not a priority for many smaller firms which are often reactive and backward-looking. CPAs are trained to analyze the past, not to design the future and see around the corners. This short-sighted mindset seems especially prevalent at smaller firms, which are consumed with just getting the work done. They don’t feel they have the luxury of thinking about the big picture.

4. Advisory services may be discussed at smaller firms, but they’re rarely implemented as a scalable, repeatable, and consistently priced offering. At these firms, compliance work is still the top priority and checklist-minded accountants are reluctant to provide services characterized by ”outside the box” thinking.

As a CPA, I’m proud of our profession’s commitment to technical excellence and strong ethics. We document, we reconcile, and we validate the past activities of our clients. We’re very good at operating in hindsight, but that mindset can also hold us back from strategic thinking and from being agile in a changing market environment. The shift our profession is being asked to make is not cosmetic — it’s foundational. Becoming a modern accounting firm requires new systems, new models, new ways of thinking, and new leadership behaviors.

Our firm advocates for strong governance infrastructure at firms — not as a form of control, but as a driver of clarity around three critical areas that impact daily operations:

1. Roles & Responsibilities — what gets done, by whom, and when.

2. Policies & Procedures that prevent the firm from having to “reinvent the wheel” every year.

3. Metrics & Goals that drive performance and accountability across the entire team.

Once that clarity has been established, we build strategy through the business structure of the firm, breaking the organization into five manageable parts:

1. Owner Initiatives – succession, personal financial goals, and exit readiness.

2. Sales & Marketing – positioning and new business development.

3. People, HR, and Personnel Development – recruiting, training, and team alignment.

4. Business Administration – systems, financial controls, and internal reporting.

5. Client Service Delivery – offering the right services consistently and with a high level of quality.

We don’t see culture as a series of inspirational posters on the wall. We define it by what’s rewarded and by what’s tolerated. We allow the firm’s values to define the guardrails that guide how employees and partners interact on a day-to-day basis.

If you want to protect and grow your firm’s culture, you need governance systems that support it. You need leadership that will do its job to ensure that the firm is functioning systematically. This is no easy task and it must be constantly reviewed and updated.

When it comes to governance, you cannot simply set it and forget it. When it comes to service offerings, the future of our profession depends on being able to deliver proactive advisory services — not just compliance work.

Many firms talk about this vision, but few have built the pricing structure, staffing, and delivery models to make it real. Fewer still have staff that are comfortable operating from a blank whiteboard.

The AICPA has started an important conversation. But for small to mid-sized firms, transformation doesn’t just happen by knowing the five pillars — it evolves by taking action to align the pillars through an effectively designed and operating governance infrastructure that deploys periodic strategic planning iterations and that adheres to cultural clarity.

That’s the shift we’re helping independently operated firms make. It’s not easy and we agree wholeheartedly with the AICPA that this transition is necessary if our profession hopes to survive and thrive. The upside of maintaining an independently owned and operated firm is worth it to partnerships that wish to avoid being assimilated into a culture they cannot control and where the profits inure to a corporate entity.

As Charles Darwin said: “It is not the strongest or the most intelligent that survive, but those that can best manage change.” Even back in Darwin’s time, before there was a CPA profession and professional society, he realized the importance of adaptability and the willingness to embrace change.

Will your firm look back on this transformational period of change fondly, or will you be one of its victims? The ball is in your court.

The Focus Imperative: Why Your Company’s Growth Depends on What You Stop Doing

Tue, 01 Jul 2025 13:18:44 GMT

Let’s get one thing straight: CEOs don’t suffer from a shortage of ideas. They suffer from a shortage of focus.

It’s not always a strategy issue. It’s not always a talent issue. It’s oftentimes a focus issue.

A recent study by Harvard Business Review tracked large-company CEOs over a 13-week period and found that the average leader spends 36% of their time reacting to unexpected issues, with only 11% on routine duties tasks that could typically be delegated.

I talk to business owners every day who are stuck. Not because their companies aren’t growing, many are. They’re feeling stuck because they’re adding work, not value. The business is expanding, but they’re more exhausted than ever, buried in distractions, unsure if their time is making the impact that it should.

If that sounds familiar, here’s the hard truth: your business can’t outgrow your lack of clarity.

Growth is a Focus Problem, Not a Capacity Problem

Many leaders think the answer to growth is more: more marketing, more meetings, more tools, more talent, more money. But the real answer the one that actually works is less. Less noise. Less chaos. Less doing.

You scale not by doing more, but by doing less better. And it starts at the top. If the CEO isn’t focused, no one else will be.

Compartmentalize to Multiply

We help leaders grow by helping them focus. And the key to helping them focus is breaking the business into five essential parts:

1. Sales & Marketing

2. People & HR

3. Admin & Finance

4. Client Delivery

5. Owner Initiatives

Everything that happens in your company lives inside one of these five areas above. Once you compartmentalize, you can prioritize. Once you prioritize, you can delegate. And once you delegate, you can finally do what only you can do: drive the strategies and tactics that will make your business a success in the minds of its stakeholders.

That's the essence of what we call *highest and best use* getting you, your team, and your systems aligned with the work that drives real value.

Clarity is a System, Not a Slogan

Once your business is broken into these parts, it becomes easier to implement clarity across three crucial dimensions:

1- Roles & Responsibilities – Is everyone clear on what they own?

2- Policies & Procedures – Are there repeatable systems in place?

3- Metrics & Goals – Is performance defined, measured, and aligned?

When those elements are murky, teams spin. When they’re clear, the machine runs.

The Real CEO Job

Too many business owners are still in the weeds, wearing too many hats, babysitting every decision. That’s not leadership it’s firefighting disguised as hard work. Your real job as CEO isn’t to run every department and put out every fire. It’s to *create focus*. Focus for yourself. Focus for your team. Focus on the right things, at the right time, with the right people.

So What’s the Next Step?

If you feel like your growth is costing you clarity, or your role is expanding while your impact shrinks we have a tool that might help. It’s called the Growth & Value Assessment . It’s completely free and takes only 15 minutes to complete.

The assessment will help you identify areas where your business may be scattered… and where you need to improve your focus.

Because once you fix your focus, everything else will fall into place.

Thinking About Buying or Selling a CPA Firm? Here’s What to Think About First

Tue, 17 Jun 2025 15:24:42 GMT

Most firms don’t fail at M&A because of bad intentions. They fail because they didn’t know what they didn’t know.

If you're a CPA firm leader thinking about buying or selling a firm but you're not sure where to start or what traps to avoid you're not alone. M&A gets talked about as a strategic growth lever or a retirement solution. But when it shows up in real life, it’s rarely smooth or simple. Deals stall. Cultures clash. Clients leave. Partners second-guess each other.

Whether you're considering selling your firm or acquiring another, there’s a good chance you’ve already felt some of the friction. Below are a few of the most common concerns we see and a way to gauge how prepared you really are.

If You’re Considering Selling, How True Are These Statements?

I have no idea what my firm is actually worth.
What if my clients or staff leave when I start to step back?
I don’t have a clear successor and I’m getting tired.
I’m too busy running the firm to even think about selling it.

If you nodded to two or more, your firm may not be sale-ready yet. But you’re asking the right questions.

If You’re Considering Buying, How True Are These?

We want to grow, but the right deals just aren’t out there.
The last firm we bought was chaos to integrate.
I’m worried we’ll overpay and lose clients anyway.
Our partners can’t agree if we should even be doing this.

If your head nodded on a few of those, you might have the desire but not the alignment, strategy, or infrastructure to move forward confidently.

And Then There’s the Universal Stuff Buyer or Seller:

We don’t have a real M&A process we’re just winging it.
We’re afraid of making a bad deal that messes up the culture.
We don’t have anyone we trust to guide us through this.

Even one or two “yes” answers here should prompt a deeper pause. The stakes are too high to fake your way through this.

So, What Now?

Try this quick self-check:

Count how many of the above statements you answered “yes” to.

0–2: You may be in good shape, but a second opinion never hurts.
3–5: There are likely gaps worth addressing before you proceed.
6+: You’re not alone. Many firms start here. Now is a great time to step back and build a clearer roadmap.

You don’t need to have all the answers. But you do need to ask the right questions before signing a letter of intent.

If this helped you think through things more clearly even a little then it’s done its job.

If you'd like a simple checklist to evaluate your M&A readiness, just reach out to me at dmcmahon@integratedgrowthadvisors.com

We’ve built one specifically for CPA firms to help avoid the common pitfalls. It's our mission to support CPAs in making better decisions and it's my pleasure to provide the checklist with no strings attached.

I Stepped Down from Leadership—Because the Culture Wouldn’t Let Me Lead

DMcMahonIGA (Daniel McMahon) — Tue, 10 Jun 2025 19:46:53 GMT

Key Takeaway

Toxic culture doesn’t just make sustainable leadership improbable—it makes it ineffective. Over time, it erodes the systems that allow for smooth transitions, leaving leadership roles untransferable and stalls organizational momentum.

As an advisor to CEOs on leadership effectiveness, corporate governance structure and process, I’ve built a business on the foundation of helping business owners and boards align their organizations for sustainable performance.

I understand how to structure teams, clarify roles, and cultivate accountability. So, when I accepted a volunteer leadership role with a community-based non-profit, I assessed what I thought the key risks were. I asked questions and paid close attention to the answers I received. But I miscalculated one critical thing: the non-profit’s culture.

What I encountered was a deeply toxic environment. Board members were operating in silos, triangulating communications instead of addressing issues openly and directly, resisting any form of accountability or structure.

Simple questions were met with outrage. Insecurity ran high. Undermining behavior was the norm. It didn’t take long for the organization’s toxicity to start taking a toll on my mental health, energy, and sense of purpose. Eventually, I stepped away.

What I experienced firsthand is something I’ve long coached CEOs and boards to avoid: a toxic culture. When an organization’s mission, vision, and values are not aligned across the organization—from the boardroom to the front line—culture breaks down and everyone suffers. Again, I’ve helped countless CEOs and boards address and prevent toxic culture, but it’s still painful to experience it firsthand.

At our firm, we emphasize a governance model grounded in five key pillars:

Defining a clear and compelling mission and vision.
Establishing values that actively guide behavior—not just hanging aspirational messages on a wall.
Prioritizing organizational culture as a strategic asset.
Communicating clearly across all levels of the organization.
Aligning goals and actions with the organization’s purpose.

When these five pillars are established, the CEO can lead with clarity. More importantly, everyone from employees to clients to board members can thrive. But when these pillars are out of alignment, dysfunction spreads. Performance suffers. Trust erodes. Morale collapses. And even the most capable leaders begin to question themselves.

Toxic culture makes leadership ineffective. Over time, it erodes the systems that allow for smooth transitions, leaving leadership roles untransferable. Organizational momentum stalls and leadership is no longer sustainable.

If you’re a CEO or executive leader confronted by a toxic culture, consider the following actions:

Don’t assume you can “fix” a toxic culture through sheer force. You’re a leader, not a savior.
Observe, document, and clarify. Then decide: Do I build a micro-culture I can protect, or do I walk away?
Never sacrifice your integrity, mental health, or values just to maintain a role in an organization that’s not aligned with your values.

Strong culture isn’t just a feel-good idea. It can make the difference between thriving and burning out, whether you’re a leader, a staff member, or a stakeholder.

This brings me back to the non-profit board I recently stepped away from. Volunteer organizations have stakeholders too: the members who give their time, the communities they serve, the donors who contribute, and the board members themselves. When a toxic culture takes root—even in a volunteer setting—it does real damage. People stop giving. Trust dissolves. Impact shrinks.

The truth is, even with good intentions, a broken culture cannot be led effectively unless the people within it are willing to change. Let me be clear; when I stepped away from the board I mentioned I wasn’t quitting. I was acknowledging the desire for clarity. I was also seeking alignment with my values as a person and as a businessperson. It reminded me that the same principles our firm brings to companies—alignment of mission, vision, values, and culture—apply everywhere we find ourselves in leadership positions.

Conclusion

When true vision, alignment and leadership are in place at an organization every stakeholder wins. But when those pillars are absent—to paraphrase biblical scripture—the people perish. Where would you rather work or volunteer?

The New Frontier of the CPA Profession: 10 Skills That Define the Advisor-CPA of the Future

Fri, 30 May 2025 18:35:11 GMT

If you think being a great CPA or business advisor in the AI era is about learning to code or installing some new software, think again. Soft skills are increasingly valued over technical skills. I will share 10 of the most important ones with you shortly.

In many ways this transformation in our profession reminds me of the early settlers who stepped off the boat at Jamestown in 1607—unfamiliar land, unknown threats, and zero guarantees. The ones who survived weren’t the smartest or most educated. They were the most adaptable. They reinvented themselves or they didn’t make it. That’s where we are today in the CPA profession.

I Didn’t Expect These Skills to Matter

Years ago, I enrolled in improv classes to become a better communicator. I thought I needed to loosen up a bit and gain more confidence. I didn’t realize I was learning one of the most valuable skills for the future: active listening. Improv taught me to stay present. It taught me to stop rehearsing my response to someone who is talking to me and to really listen to what they’re saying—and what they’re not.

The improv training gave me the confidence to try stand-up comedy—not because I thought it would help my business, but because it would help me sharpen my communication skills. Stand-up taught me how to distill a message. How to hold an audience. How to read the room. Looking back, I realized I wasn’t just working on communication—I was training for clarity under pressure. Spontaneous oratory. Improvising on the fly and thinking on my feet.

This training has paid much bigger dividends than I ever thought possible.

In This New World, Differentiation is Survival

Clients aren’t hiring their advisors just to crunch numbers today. They’re looking for partners who can lead, communicate, interpret, and adapt. AI will handle the mechanics. Skilled humans will bring judgment, rhythm, and courage to the conversation.

10 Skills That Define the Advisor-CPA of the Future

1. Strategic Thinking – seeing the story behind the spreadsheet.

2. Facilitation – guiding clients through planning, not just compliance.

3. Active Listening – hearing the unsaid and staying present.

4. Succinct Communication – delivering clarity when it counts.

5. Planning Cadence – helping clients move from chaos to rhythm.

6. Relationship Depth – becoming a trusted advisor, not a technician.

7. AI Superuser Skills – prompting and applying tools with discernment.

8 . Emotional Intelligence – leading with calm, context, and care.

9. Business Acumen – connecting operations, finance, and strategy.

10. Presence – being clear, unflappable, and aligned in the moment.

Here’s the Truth

The future won’t be won by the smartest person in the room. It will be won by the person who is the most present, most adaptable, and most trusted. CPA firms that thrive won’t be those that cling to technical expertise. It will be firms that lead with advisory thinking—the ones that view tax and accounting as support beams, not the whole house.

I didn’t know improv and stand-up would prepare me for the future. But they did. They forced me to grow in the exact places where AI can’t compete: presence, judgment, connection. The frontier doesn’t need more automation; it needs better prepared and more adaptable humans.

What Stand-Up Comedy Taught Me About Business Leadership

Thu, 13 Mar 2025 17:44:17 GMT

A few days ago, I stepped onto a stage for the first time as a stand-up comedian. I’ve spent years doing improv, but stand-up is different. Stand-up isn’t about reacting in the moment; it’s about crafting, refining, and delivering material in a way that resonates (hopefully) with an audience that wants to be entertained.

I learned a ton from my stand-up classes and first performance and a great deal of what I learned can be applied directly to business leadership. Here are the three biggest lessons that business leaders can learn from stand-up comedy:

1. Preparation is Everything (Even for the Pros)

Unlike improv in which you show up, react, and make things work on the fly, Stand-up requires you to have every word, every pause, every punchline carefully written and painstakingly rehearsed.

Business leaders shouldn’t "wing it" Either. The best sales pitches, board presentations, client meetings, and strategic decisions are the result of careful and diligent preparation. If you show up thinking “you’ll figure it out”, you’re fooling yourself and setting yourself up to fail.

As Benjamin Franklin liked to say: “Failing to plan is planning to fail.” The power of planning and preparation isn’t about removing spontaneity—it’s about ensuring you’re ready to execute with confidence when it matters most.

2. The Power of Vulnerability, Authenticity, and Taking Risks

One of the most effective tools in stand-up is self-deprecating humor . Why? Because it makes you relatable. Nobody connects with someone who seems like they’re successful all the time and have everything under control. But they can certainly relate to you if you share your weaknesses and insecurities….that’s a longtime staple of standup comedy.

The same applies to leadership. Leaders who have the courage to be vulnerable—who can admit mistakes, laugh at themselves, and be authentic—create stronger teams and cultures. Trying to project invincibility only leads to stress, pressure, and, ironically, a feeling of disconnection from your team.

But beyond vulnerability, there’s also the risk factor. Stand-up is terrifying because there’s nowhere to hide. It’s just you, a microphone, and an audience deciding, in real-time, if you’re worth listening to. Sound familiar?

As business leaders, we constantly ask people to take risks—new projects, big decisions and high stakes conversations. If we’re not willing to put ourselves out there in uncomfortable situations, how can we expect others to do the same? True leadership means stepping up, taking risks, and showing others that it’s okay to take a shot, even if you end up failing.

3. Timing, Communication, and Owning the Moment

When you step on stage, the clock starts. You don’t get extra time to call a timeout and explain the joke. You don’t get a second chance to deliver the punchline. You have one shot to deliver with confidence, clarity, and impact.

Business is no different. Whether it’s presenting to a client, pitching to investors, or leading a team meeting, if you’re not clear and compelling, you lose your audience.

A firm deadline also changes everything. I had no choice but to be ready by showtime. In business, external deadlines, board meetings, investor pitches, and client presentations, etc. force you to execute. When it’s your time to deliver the preparation is over. You must step up, communicate with confidence, and make it happen.

Before embarking on my stand-up journey, I never realized that comedy is as much about writing as it is about performing and speaking. The words you choose matter – a lot! The structure matters. The delivery matters. And in business, the same is true. If you can’t articulate your message clearly and succinctly, you risk losing the moment entirely.

When I started my stand-up class I thought it would be all about telling jokes. Instead, I walked away with valuable lessons about preparation, vulnerability, and communication—three of the most critical skills in business leadership.

Conclusion

As a business leader: when was the last time you put yourself in a position in which you had no choice but to execute and to take a risk and own the moment?

If it’s been a while, maybe it’s time to expand your horizons and step onto a different kind of stage.

From Chaos To Unity - Is Your Organization Finely Tuned?

Thu, 27 Feb 2025 23:09:22 GMT

The backstory:

While visiting with a girlfriend we got talking about being young girls at our first symphony and the magic of the tuning process. From chaos to unity – it still amazes me. It had me thinking how much better firms would be if they were in tune when the leader stepped up to the podium.

Tuning to True A: The Orchestra and Organizational Alignment

There’s a moment before every symphony begins—a moment of chaos that transforms into unity. The musicians, each with their own instrument, produce a cacophony of sounds as they tune. Then, from the oboe, a single note rings out: A440, the universal tuning standard. One by one, the musicians align themselves to this pitch, adjusting their strings, keys, and reeds until they resonate in harmony. Only then does the conductor take the podium, ready to lead an ensemble that is, at last, in sync.

This ritual is more than a tradition; it is a powerful model for organizational alignment. Just as an orchestra must first tune to a shared standard before playing together, a company must establish clarity and coherence before executing its strategy. Without this alignment, even the most talented team will struggle to produce a harmonious result.

Establishing the True A: Clear Vision and Values

In an orchestra, the oboe’s A is non-negotiable—it is the reference point that ensures harmony. In an organization, the equivalent is a clear vision and core values. These should be well-defined, consistently communicated, and universally understood. Without them, departments, teams, and individuals risk playing at different pitches, causing dissonance in execution.

Individual Adjustments: Role and Responsibility Clarity

Each musician listens and adjusts their instrument to align with the A. Similarly, individuals in a firm must calibrate their roles and responsibilities to fit within the larger vision. This means setting clear expectations, ensuring alignment between personal objectives and organizational goals, and fostering open dialogue to make necessary adjustments.

Listening to Others: Cross-Team Collaboration

Musicians don’t just tune to the oboe; they listen to each other, refining their sound in relation to the group. In a company, alignment isn’t just about top-down directives—it’s about cross-functional collaboration. Teams must actively listen to one another, ensuring their efforts complement rather than compete with the broader mission.

The Conductor Steps In: Leadership with Purpose

Only after the orchestra is in tune does the conductor raise the baton. In business, leaders must resist the temptation to dive into execution before alignment is achieved. A well-tuned organization allows leadership to focus on guiding performance rather than constantly resolving misalignments.

The Result: A Symphony of Success

An orchestra that tunes well plays beautifully. Likewise, an organization that takes time to align its people, processes, and priorities will operate with efficiency, cohesion, and purpose. The result is a workplace that doesn’t just function—it performs at its highest potential.

The Question:

So, before launching your next big initiative, ask yourself: has your organization truly tuned to its A? I’d like to know.

Please reach out at: robinann@integratedgrowthadvisors.com .

CPA Lessons From the Gridiron: Staying in Alignment When the Game is on the Line

Mon, 16 Dec 2024 21:40:10 GMT

With the college football playoffs set and the NFL season coming down the home stretch, there have been countless close games going down to the final seconds. The difference between winning and losing often has more to do with a team’s culture and preparation than it does with their pure talent. In the same way, most accounting firms have smart, conscientious, talented people at all levels of the organization. The difference between high performing firms and mediocre firms is that the high performers have the ability to stay in alignment and hold their composure when the pressure is on.

While it’s easy to put your organization’s core values on the wall of your lobby or locker room, you don’t find out who has really bought into those values until the you-know-what hits the fan. Like elite sports teams and military units, high-performing firms stay together and stick to the game plan when faced with a big client loss, departure of a key employee, or busy season fire drills. Under the same circumstances, lesser firms throw in the towel, point fingers, and watch staff head for the exits.

Sound familiar?

Sun Tsu, the legendary general and philosopher of ancient times said, “Every battle is won before it’s ever fought.” In the heat of battle, I’ve found, you must think like a triage unit in combat. Casualties are all around you and coming in fast; you must treat the most serious life-threatening injuries before the ones that are merely painful – no matter how anguished the victim. In the heat of battle, you’re not going to get perfection. You must do the best you can with the people, resources and time you have to work with.

As a leadership coach, I’ve noticed that firms with a strong culture and governance model are particularly well equipped to handle “battlefield” conditions.

They tend to have four characteristics in common:

1. They stay in alignment when everything seems in chaos.

College football powerhouse, Florida State University, started the 2024 season ranked No. 10 in the Associated Press poll coming off last year’s 13-1 season in which finished ranked No.6 in the country. Despite a loaded roster filled with “blue chip” transfers, the Seminoles finished the 2024 season 2-10, having been walloped 31-11 by archrival Florida as we went to press. What caused such a dramatic reversal?

The TV pundits point to an anemic running game, poor tackling, deluge of injuries and too many penalties, etc. But I think it’s something deeper -- a dysfunctional culture. Florida State hasn’t faced adversity in many years and succumbed to the pressure of losing a few early season games when so many were expecting a national championship run. Like great firms, great sports teams don’t get hung up on perfection. They have the ability to shake off early season setbacks. Pretenders don’t.

As part of the weak culture, Florida State didn’t get the same caliber of recruits via the “transfer portal” (which allows today’s college athletes to switch schools at will, without having to sit out a year). The transfers were highly talented, but not necessarily team players. As the Tallahassee Democrat explained: “While the signings were designed to help achieve short-term success, many believe the strategy led to longer-term problems: A lack of program culture and diminished team loyalty. If that turns out to be the core issue, there may not be a quick fix in sight.”

Like great firms, great teams can quickly “onboard” and integrate lots of new faces into their organization, but lesser teams cannot. As The Democrat noted: “The disparity among new and returning players can cause a lack of chemistry, accountability and resentment in the locker room. That's a far cry from [the approach to] recruiting and team building 50 years ago.”

As legendary former Alabama head coach Nick Saban said on national television: “My greatest tool when trying to establish the culture was the bench. When guys don’t do what they’re supposed to do or buy into [the team’s vision] the way they’re supposed to, you put them on the bench,” he explained. As Saban and other pundits observed, Florida State’s coaching staff seemed reluctant to bench underperforming starters for fear of having them enter the transfer portal, and the downward spiral continued to feed on itself.

A similar situation has played out in professional football with my beloved Chicago Bears. After years of futility, the Bears finally seemed to have things turned around in 2024. With an electrifying young quarterback at the helm, they sprinted out to a 4-2 start until they faced their first real test of the season against a strong Washington Commanders team. Just two seconds away from going 5-2, the Bears had a three-point lead and Washington pinned beyond midfield with no way to stop the clock. Then disaster struck. The Commanders completed a 60-yard “Hail Mary” pass that bounced off multiple players as time expired and into the waiting arms of receiver, Noah Brown, in the end zone who seemed as shocked as anyone about his good fortune. A few weeks later against the playoff-bound Green Bay Packers, the Bears had a chance to kick the winning field goal in the final seconds, but they mismanaged the clock, resulting in a longer than necessary field goal attempt that was eventually blocked. Two weeks later on Thanksgiving Day, they had the NFL’s best team, the Detroit Lions on the ropes. But in front of a national TV audience, they let 33 seconds slip away with timeouts remaining before firing a play downfield with no time left to seal another embarrassing loss. The Bears losing streak is now at seven games and counting as we go to press.

After the Thanksgiving debacle, Bears head coach, Matt Eberflus, told the media: “I think we handled the situation the right way.” Bears management didn’t agree and fired Eberflus shortly thereafter.

Of course, Eberflus had been on the hot seat since the Washington Miracle Catch that started the downward spiral two months ago. Chicago defender Tyrique Stevenson was at the core of this epic breakdown of this play:

He missed the snap early in the play because he was busy taunting Commanders’ fans in the stands.

2. He carelessly tipped the ball to Noah Brown for the game-winning touchdown instead of batting it down to the ground.

3. Worst of all, Stevenson didn’t accept responsibility for his actions. He removed himself from practice after hearing he would be benched for the following game – and then was reinstated by Coach Eberflus after missing just a few plays, implying to the rest of the team Stevenson had served a sufficient punishment. Those decisions further eroded team morale.

Imagine if Eberflus upheld the simplest of cultural values for his team: play till the whistle blows and own up to your mistakes. Eberflus might still be employed, and the Bears might have better than an outside shot at the playoffs.

2. They focus on the front windshield, not the rearview mirror.

As CPAs, we tend to be financial historians, more comfortable reviewing the past rather than leaning into the future. But did you ever wonder why the rearview mirror is so much smaller than the front windshield? That’s because automakers want you to focus on what’s ahead of you rather, not on what’s behind you? But so often, when business leaders – like professional sports team general managers -- are fighting fires all day, they’re trying to lead from behind. As a result, they have poor time management skills, they have a weak leveraging model, and the team is confused about the firm’s vision and strategic direction. Ultimately, there is no clarity around what management is hoping to accomplish. High performing firms, by contrast, have an established governance process and effective leveraging model. They use SMART goals (Specific, Measurable, Achievable, Relevant and Time-Bound), and they align their strategy with tactics.

3. They are strategic not just tactical.

As Sun Tzu said: “Tactics without strategy is the noise before defeat.” I couldn’t agree more. You must play forward scenarios so that you can anticipate a variety of future paths that may reveal themselves for you as a leader. This is an opportunity to emphasize the importance of a CEO and to provide that leader with the ability to be the head coach who drives the firm’s vision, makes big decisions, controls a significant portion of compensation, and focuses on the firm’s big picture goals and objectives. CPAs tend to be more linear in their thought processes. They see things oftentimes as black and white. The reality is that a strategic plan, while not intended to be a checklist, is the best prescription for success in any business, sports or wartime scenario.

4. Their leaders are accountable.

Like great sports teams, great accounting firms find a way to win, no matter how dire the circumstances or how little time is left on the clock. Roles and responsibilities are clearly defined at all levels of the organization. That way, when the pressure of a two-minute drill is on, everyone can simply act proactively in the situation; they don’t have to think about what they’re doing, where they’re going, or whom to ask for help. Most importantly, they have a culture of accountability. Top management, like great head coaches, accept responsibility for the greater organization’s mistakes and they address them head on rather than looking for ways to point fingers.

Conclusion

Like great football teams, great accounting firms stick together and hold their composure when the pressure is on. They focus on the future rather than dwelling on the past. They are strategic, not just tactical, and everyone from top leaders to “bench players” is accountable. How is your firm building a winning governance structure or getting itself back on track? I’d love to hear about it.

Please contact me at:

877-442-4769, x701 dmcmahon@integratedgrowthadvisors.com

EVENT: How to build a sustainable and transferable firm for the next generation

Fri, 29 Nov 2024 23:31:00 GMT

December 4 2024 | 10 am PST / 1 pm EST

Unlock growth for your firm

Register now for an interactive roundtable with Robin Bienemann, Director of Programming, and Dan McMahon, Founder & Managing Partner at Integrated Growth Advisors, on December 4th at 1 pm EST / 10 am PST. The discussion will be facilitated by Daniel Rock, Chief Revenue Officer of Suitefiles.

You’ll uncover how you can build the accountability and alignment your firm needs to bring about a better valuation.

In this interactive session, you’ll learn how to:

Build a sustainable and transferable firm for the next generation.
Create accountability and alignment both ways.
Become more profitable and have a higher valuation.

Daniel Rock

Dan McMahon

Robin Bienemann

Merger Guidance for CPA Firms: Start Early, Plan Strategically for Long-Term Success

Wed, 10 Jul 2024 15:50:37 GMT

Dan McMahon contributed to the following article in Illinois CPA Society's Insight Magazine summer issue on the topic CPA firm M&A.

Listening With Leaders - A Conversation with Daniel McMahon on Decision-Making

Mon, 24 Jun 2024 13:51:42 GMT

Check out Dan McMahon who recently appeared as a guest on Doug Noll’s Listening with Leaders podcast. Dan and Doug discuss the importance of listening as a leader, the art of improvisational theater performing, and why management teams must follow a parliamentary procedure for decision making.

Are Your People Performing at their Paygrade?

Thu, 06 Jun 2024 21:11:38 GMT

Key Takeaways

Best in class firms work smarter, not harder. They consistently generate more revenue with less staff.
Driving the right kind of revenues to your firm, and charging premium rates, emphasizes highest and best use of your talent.
Having the courage to cull your client list seasonally allows your firm to thrive.
High performing firms align partner level tasks with partner level work.

As CPAs, we spend so much time worrying about our utilization rates and total billable hours, but we rarely stop to think if our teams are using their skills to the utmost. Throughout my career, I’ve found one thing in common among the most successful firms. They have leaders with the discipline to keep each team member focused on work that is commensurate with their paygrade.

Unless you’re Amazon or Wal-Mart, it’s hard to stay competitive as a broad-based generalist organization. As a firm, you should focus on areas which you have high levels of expertise rather than trying to be all things to all people. You should align partner level tasks with partner level work and manager level tasks with manager level work etc. This allows you to work more efficiently, charge premium prices, and maximize your realization rates.

When you and your team spend the majority of your time on things you do best, you’re working more efficiently and not reinventing the wheel with every engagement. As a result, you’re serving your clients efficiently with as little effort as possible. If your firm is really good at five things, you should concentrate your efforts on those five key areas. If you’re not sure which five things your firm does best, make it a high priority to figure out ASAP. For everything that doesn’t fit under one of those five key areas, move on. Those are not areas in which you are using your firm’s resources to their highest and best use.

Here are two good ways to look at this approach:

1. Acknowledge that not all revenue is good revenue.

Too often we see firms with less than $10 million in revenue that continue to go after every prospect that jumps into their net. The truth of the matter is that some work, such as low-level commoditized work, is only going to jam up your staffing schedule while yielding low profitability. Instead, let the low-level commoditized work go to your competitors while your firm focuses on finding client work that best fits your skill level, your expertise, and your available capacity.

2. Take on work that is niche-focused and profitable for your firm – work that might be too difficult to do profitability for a generalist firm.

Doing so means you must develop internal processes and align your team’s skills to increase efficiency and effectiveness.

I once worked for a firm that did 200 employee benefit plan audits. The firm assigned a dedicated team to audit all the plans. Some of the client-specific audit planning steps were accomplished in an all-team planning meeting that allowed audit planning to expend only a short period of incremental hours. The result was a profitable practice that completed work efficiently. This greatly improved the firm’s ability to prospect and close new business while driving profitability and protecting it from risks that generalist firms might not grasp.

It’s simply a matter of supply and demand

You only have so many people hours and so much brainpower available to meet marketplace demand. You need to be known for what you do best so you can charge premium prices for your services. Otherwise, you’re just doing bottom feeder work as a commodity service provider -- and that’s nothing more than a race to the bottom. Why? Because there’s no way to compete successfully as a bottom-feeder except for continually lowering your prices. Avoid spending time and resources doing work that your firm struggles to deliver profitably. Deploy your valuable resources on client work that commands your premium pricing.

We have advised our own clients about this process mindset, which involves evaluating the profitability of client relationships and segmenting client service offerings based upon services offered and other client retention criteria. Services that are more commoditized will become evident when you conduct this exercise. This exercise typically results in a considerable increase in revenue and a reduction in hours needed to support that workload. Who wouldn’t want more revenue and less work?

Contact me to learn how we can be a resource using our tools and methodology.

If you’re a startup firm, I get it. You need to keep the lights on and meet payroll.

You’re going to take whatever work comes your way – and expend lots of resources -- to keep the cash rolling in. But that mindset gets hard to break as you get bigger over the years. If you’re not careful, you become a larger and larger generalist firm with no defensible position in the marketplace. Your processes and overhead won’t allow it. That means clients can leave you as soon as they find someone else willing to do the same work for less.

Highest and best use

Instead, each member of your team needs to be performing work commensurate with their pay grade. This means lower-level work should be leveraged to staff members based upon their highest and best use capabilities. It means partners should have the discipline to spend their time on work that they do better than anyone else in the marketplace -- at the highest price the market will bear. If every day is spent putting out fires and your firm lacks the courage and discipline to follow the highest-and-best-use approach above, then you’re just a generalist firm and can’t command premium prices.

The largest and most successful firms have already figured this out and that’s why they’re offloading more of their “C” and ”D”-List clients to lesser firms clamoring over a shrinking pie. The doctrine around targeting good revenue says you should think twice before readily accepting clients who have already been cast off from other, more strategic firms.

Have the courage to prune your client list

As firms mature, their leadership should evaluate the client base regularly and try to upgrade B- and C-level clients to A- and B-level clients. If those clients cannot be upgraded, transition them to other firms as long as they no longer align with your firm's focus areas and pricing.

You can tell those clients: “Listen. You're a great business. We really enjoy working with you. But the economic forces impacting our industry are forcing us to align our efforts to serve clients of a certain size, complexity, and industry specialty. The supply and demand forces of the marketplace are forcing us to change our fee structure to a level that’s much higher than what you’ve been paying us. Since you’ve been a great client, we will do our best to help you find a better home.”

This approach can be scary, but best in class firms overcome that fear by instituting a systematic business development process to attract clients who are the right fit. If you don’t know where to begin when it comes to messaging your clients, contact me any time for a sample letter that outlines the critical reasons why your firm might be culling its client list.

It could be the size of the client that no longer fits your firm’s model of highest and best use. It could be their industry focus. And it could be skills focused– audit, tax, consulting. If the client is a square peg, don’t try to force them into one of your round holes. Know who you are as a firm and get focused intensely on those areas. If a client no longer fits, then give them a chance to find another firm where they’ll be a better fit. Then, rely on a systematic process for driving the right revenue types to your firm.

Conclusion

No one likes to turn away clients, but once you make the commitment to keep your team relentlessly focused on their highest and best use, you’ll wonder why you didn’t make the transition sooner.

How is your firm building a strategically growth minded culture? I’d love to hear about it.
Please contact me at 877-442-4769, x701 | dmcmahon@integratedgrowthadvisors.com .

Daniel J. McMahon is the Founder & Managing Partner of Integrated Growth Advisors (IGA), a value creation and growth advisory firm focused on empowering business leaders to systematically enhance their revenues, profitability, sustainability, and value. IGA creates sustainability and transferability—and wealth—for business owners by addressing common issues relating to growth, control, and transition of ownership. IGA has been serving clients throughout the United States since 2011.

Firm Governance Best Practices

Tue, 04 Jun 2024 21:39:42 GMT

See Dan McMahon’s latest article on Firm Governance Best Practices, which was published in the Summer issue of New Jersey CPA Magazine.

What a Golf Swing Can Teach Us About M&A Deal Integration

Thu, 11 Apr 2024 19:35:53 GMT

Key Takeaways

Like a golf swing, everything in a merger must be in alignment or else the deal, like a golf shot, will go horribly awry.
Consistency, focus, visualization, and follow-through are key to success in golf and M&A integration.
Being impatient and taking shortcuts can lead to hazards on the golf course or in the boardroom.

April 11, 2024 – With March Madness behind us, the sports world turns its attention to Augusta, Georgia for the annual Masters Tournament -- one of the four men's major golf championships in professional golf. The stunning greenery of the Augusta National Golf Club will have much of the Northern Hemisphere thinking about springtime and new beginnings. It’s also when Busy Season finally ends for accounting and tax professionals nationwide and thoughts turn to making things less painful and more efficient for the future, including joining forces with another firm.

So, what does golf have to do with merger and acquisition activity in the accounting world? It turns out, a lot more than you think. I’ve created an infographic that aligns the best swing tips I’ve received over my years of learning to golf with some select advice I’ve shared with clients about how to make their M&A process smoother and more successful.

As legendary golfer Gary Player once said about the Masters: "Every shot is within a fraction of disaster -- that's what makes it so great." And that’s also what happens when two firms try to come together with vastly different cultures, client rosters and talent pools.

Like a golf swing, everything in a merger must be in alignment, or else the deal, like a golf shot, will go horribly awry. At the moment your ball is actually struck (i.e., the closing date), think of how many things need to be in motion for a golf ball to be hit successfully and to go straight down the middle of the fairway. You must have a backswing that is on plane, a consistent rhythm, and a really good follow through. Same goes for your pre- and post-merger game plan. If you’re on the M&A integration team, you must stay in rhythm and never lose focus. Because once you take your eye off the ball, things can break down quickly whether you’re on the golf course or in the M&A war room.

Swing tips and Integration Considerations

Outlined in the chart below are six key phases of a golf swing and six key points for consideration, which relate to the integration of a purchased accounting firm before and after the deal closing date.

Don’t take shortcuts

Golf is not an easy game to learn; it’s even hard to master. One of the biggest mistakes I see golfers at all levels make is trying to take shortcuts. It takes practice, patience and resiliency (just like a firm merger). Inevitably you will hit a bad tee shot and find yourself behind a tree. A patient golfer knows you have to work yourself out of trouble one step at a time – one shot to get out from behind the tree and a second shot to get back on track. You “take your medicine” and live to play another day. But, too often I see players try to “save themselves” with one heroic shot even though the odds of making that shot are 2% at best. More often than not, they make things worse by bouncing off another tree, or winding up deeper in the rough, buried in a sand trap or sunk at the bottom of a water hazard. The same theory applies to an M&A transaction when both sides take short cuts or try to go too fast. As with a golf swing, a successful transaction must keep everything in rhythm and in sync.

Conclusion

I continue to learn the game and work on my own improvement as a player. My swing has evolved from my Dad informally teaching me how to swing a golf club in the backyard to developing lots of bad habits as a “do-it-myselfer.”

I didn’t experience true results until I committed to learning how to swing a golf club like a true golfer. It wasn’t until I started to get coaching from a true PGA teaching professional that I found the discipline—and aligned the resources—to learn a golf swing the right way.

Likewise, a CPA firm leader who aligns with a trusted M&A advisor has a much better chance of seeing their M&A transaction go as smoothly as possible and find success in the newly combined firm.

Do you have a favorite swing tip or M&A integration tip you’d like to add to the chart? I’d love to hear about it.

Please contact me at 877-442-4769, x701 | dmcmahon@integratedgrowthadvisors.com .

Daniel J. McMahon , a CPA and Certified Merger & Acquisition Advisor, is the Founder & Managing Partner of Integrated Growth Advisors (IGA), a value creation and growth advisory firm focused on empowering business leaders to systematically enhance their revenues, profitability, sustainability, and value. IGA creates sustainability and transferability—and wealth—for business owners by addressing common issues relating to growth, control, and transition of ownership. IGA has been serving clients throughout the United States since 2011.

Strong Cultures Unify Great Teams

Sat, 16 Mar 2024 22:46:41 GMT

A March Madness primer for corporate teams

Key Takeaways

Great cultures outperform assemblages of great individual performers.
A great firm culture will transcend generations of leadership.
Successful leaders in basketball and in business thrive when they uphold strong values in their organizations.

“Two are better than one if two act as one.” ~ Mike Krzyzewski (aka “Coach K”), winningest college basketball coach of all time.

With the NCAA Men’s Basketball Tournament (aka March Madness) upon us, productivity will take a three-week nosedive on college campuses and in corporate offices. Tens of millions of basketball fans will anxiously check their brackets hourly to see which of their “sure things” and which of their “Cinderella” picks will advance to the next round of the tournament.

No best of seven here. It’s a single game elimination tournament in which little known Valparaiso, Florida Atlantic, Weber State and St. Peters can outplay powerhouses like Kentucky, Kansas, UCLA and North Carolina for 40 minutes and send them packing. Season over.

While athleticism and recruiting budgets are important, the most successful teams in the tourney year after year are those with strong cultures built on trust, communication, and shared values. On these teams, every member of the roster from the stars to the walk-on benchwarmers are valued. Team members respect each other. They work towards common goals. They contribute equally to a positive and winning culture. Leadership, discipline, and a sense of accountability also play crucial roles.

The Chicago Bulls of the 1990s exemplified a winning culture. Led by Michael Jordan and coached by Phil Jackson, their teamwork, mutual trust, and shared commitment to common goals resulted in six NBA championships in eight years. I lived in Chicago at the time and witnessed the Bulls’ remarkable run firsthand.

One key to the Bulls' success was their ability to assign each player a specific role for each game situation. This enhanced the Bulls’ uncanny ability to make the right plays at the right time. But this chemistry was only possible because the players and coaches understood each other's strengths and weaknesses so well and because they were committed to being a team rather than a collection of highly paid individuals.

“After years of experimenting, I discovered that the more I tried to exert power directly, the less powerful I became,” head coach Phil Jackson observed. “I learned to dial back my ego and distribute power as widely as possible without surrendering final authority,” added Jackson, widely credited with introducing Zen leadership into professional sports. Volumes have been written about Jackson’s ability to understand different roles for each player and to share authority without being a control freak -- unusual in the alpha world of professional sports head coaches.

Sustainable winning culture

During the 2000s I lived in Connecticut and witnessed the remarkable success of the University of Connecticut’s men's and women’s basketball programs. The Huskies’ women’s program is one of the greatest in the history of college basketball under the longtime leadership of head coach Geno Auriemma. Meanwhile, the UConn men’s program won five national championships under three different coaches (Jim Calhoun, Kevin Ollie, and Dan Hurley) between 1999 and 2023.

As I write this post, the UConn men are ranked No.1 in the country and well positioned to defend their NCAA championship. Each UConn coach had a unique philosophy, but a shared emphasis on teamwork, discipline, and a commitment to excellence both on and off the court. Both programs are deeply tied to the community. Fans rally behind the teams and continue to cheer on the dozens of Huskies alums who have excelled at the Olympic and professional level.

Then there is Duke University’s basketball program, which won five national championships and made 13 Final Four appearances during Mike Krzyzewski’s 40-year run. The Blue Devils were the last place team in the highly competitive Atlantic Coast Conference when Coach K took over in 1980. He was almost fired after his first five seasons of mediocrity. Despite pressure from the fan base and alumni to axe Coach K, Duke’s athletic director at the time stood by him. He saw the impact that Coach K’s philosophy of (a) always focusing on the “next play,” of (b) developing individuals as part of a cohesive unit, and of (c) stressing how winning is about the process more than the final score, was positively impacting the players and the program.

As with UConn’s teams, Coach K preached integrity, respect, and a commitment to excellence. He felt these values were the keys to winning in life, not just on the court. He also reminded Duke players that they were students first and athletes second. To stay on the team, they had to keep pace with fellow students at one of the nation’s most selective universities despite heavy demands of sports and travel.

In his book Leading with the Heart Coach K introduces the concept of the "Fist" as a symbol for teamwork and unity within a team. He outlines the five fingers of the fist, each representing a key element of a successful team:

Communication: The thumb represents communication. Coach K emphasizes the importance of open and honest communication among team members. Players need to be able to express themselves and listen to each other to foster understanding and collaboration.
Trust: The index finger symbolizes trust, which is foundational for any team to function effectively. Team members must rely on each other on and off the court, which leads to cohesion.
Collective Responsibility: The middle finger represents collective responsibility. Coach K stresses the idea that everyone on the roster is equally responsible for the team’s success (and failure). Each player must take ownership of their role personally and contribute collectively to the overall goals of the team.
Caring: The ring finger signifies caring. Coach K emphasizes the importance of genuine concern for the well-being of teammates. A team that cares about each other fosters a positive and supportive environment. This enhances individual and collective performance.
Pride: The little finger represents pride. Coach K advocates for a healthy sense of pride in oneself and in the team's accomplishments. While humility is important, taking pride in one's effort and achievements contributes to a positive team culture.

Coach K believes the fist represents the interconnectedness of each of the five elements/digits. By embracing these principles, teams are cohesive and maximize their potential. How many fingers of the fist does your organization possess?

Organizations thrive when their shared goals and values are followed at all levels. As with the great basketball dynasties discussed above, organizations with a sound culture and purpose can sustain their excellence year after year. As with Coach K’s fist analogy, they have what I like to call “clarity at the core.” As shown in our Sphere of Governance model (below) the core encompasses clarity around roles and responsibilities, policies and procedures, and metrics and goals.

We also encourage our clients to develop a sustained purpose, a unique set of values that support the firm’s culture, and then communicate corporate leadership’s goals and objectives consistently throughout the organization.

Conclusion

“If our culture is properly developed, nurtured, cared for, and watered every day, then in the heat of competition, when you need to slam home a message, an individual or the team collectively will respond well.” ~ Coach K

How is your firm building a winning culture? I’d love to hear about it.
Please contact me at 877-442-4769, x701 | dmcmahon@integratedgrowthadvisors.com .

Dan McMahon was recently published in Accounting Today

Mon, 11 Sep 2023 16:45:10 GMT

"Don't confuse firm governance with ESG"

Dan McMahon

When I first arrive at a client's office to talk about governance, I'm often greeted with skepticism. Many employees, especially those in the middle or latter stages of their careers, are bracing themselves for another discussion about ESG (environmental, social and governance). But I'm talking about a different kind of "G.

Integrated Growth Advisors is proud to announce that Dan McMahon is a Certified Merger & Acquisition Advisor

Fri, 21 Jul 2023 17:03:09 GMT

7 Actions to Guarantee that Acquiring New Staff is Harder than Finding Water in the Sahara Desert

Thu, 11 Aug 2022 14:46:41 GMT

CPA firms nationwide are struggling to find the quality and quantity of staff needed to fulfill their ever-increasing workload demands. The failure to meet these necessary personnel levels has direct consequences on bottom line performance and client satisfaction.

You would think that these extreme challenges would impact the methodologies and processes that firms utilize and cause them to change. Unfortunately, for many, this is not the case. It’s truly a question of insanity, doing the same thing over and over again and expecting a different result.

The following 7 actions are impediments to successful hiring today. CPA firms that follow these will proportionally lessen their level of success in attracting and hiring the resources they need.

1. Write an ad that looks like every other firm.

2. Wait for candidates to respond to your ad.

3. Don’t make a decision until multiple members of your firm have thoroughly evaluated the candidate.

4. Have a strict and inflexible criterion for considering a candidate.

5. Stay inside the box for compensation and benefits.

6. Only consider candidates who will work in the office.

7. Hesitation in utilizing outside resources to improve your results.

Let’s examine what each of these means along with some proven strategies to overcome the pitfalls.

1. Write an ad that looks like every other firm.

It is an interesting exercise to pretend to be a job searcher and to use one of the online job search sites, such as Indeed, and to see what’s out there. Whether you are looking for a tax or audit position, you will discover that most of the ads are very similar. They give the name of the firm, the job title, and a description of the duties of the position. There is very little to convince a candidate as to why one firm is different or a better place to work. A better practice is to emphasize the advantages of your firm over everyone else and be unique about this.

2. Wait for candidates to respond to your ad.

A well written and attractive ad that differentiates your firm will attract some candidates, but in today’s competitive job market, many of the best candidates will simply not find your ad. Indeed, LinkedIn, and other job posting sites provide advanced subscription capabilities that allow you to do very specific searches with the criteria that is relevant for the position that you want to fill. You will uncover candidates that are a good match, who can be contacted with an engaging and inviting letter to consider interviewing with your firm. This can be a time-consuming activity with a 5% to 10% response rate, but it can generate significant results.

3. Don’t make a decision until multiple members of your firm have thoroughly evaluated the candidate.

Simply, in today’s competitive environment, time is of the essence. You must realize that candidates will be interviewing with numerous firms and will be making a decision on their own personal timeline. There are many partners/managers of firms who insist that they are part of the hiring process, and this can log jam a hiring scenario. The best practice is to have a small group of people who do the evaluations. Once a first interview is performed, any follow-up sessions with additional people need to be completed within a day or two. Sometimes, even this is too long. We’ve seen instances of a first interview on a Tuesday and the second interview on a Thursday. Unfortunately, the candidate met another firm on Wednesday, who offered them the job on the spot, and they immediately accepted the offer.

4. Have a strict and inflexible criterion for considering a candidate.

Many firms will have a precise set of requirements for any candidate for employment. These could include years of experience, industry background, supervisory time, etc. The problem is that in today’s competitive job market, there are many great candidates who might not precisely match these criteria. By not thinking out of the box, a person with great potential, who may only need a few months of training, some mentoring and extra experience is passed by. When you pass on them, you can expect that someone else will be getting a strong, loyal, and appreciative team member whom you could have had.

5. Stay inside the box for compensation and benefits.

There is the belief that any variance from established norms in compensation will cause difficulties with existing staff. The reality is that all staff are not equal. Equal pay and compensation for all in a particular job classification will hurt you in the marketplace in attracting people. Billing rates per staff member can vary, and it is reasonable that there will be variance in compensation. Candidates have the widest number of choices for employment that we have ever seen in the accounting profession. It’s truly a seller’s market. Compare it to the recent real estate market. For prime properties, in many cases, the listing price was just the start of the bidding process. Those buyers, who didn’t realize this fact, found their offers being repeatedly rejected. This is very true in hiring today. When formulating an offer for a candidate, don’t just consider salary, but look at the entire package. We’ve seen firms give more generous health insurance allowances, increased and more flexible PTO and flexible work arrangements. These extra ordinary incentives can make a big difference when a candidate is trying to decide between two firms.

6. Only consider candidate who will work in the office.

Prior to the outbreak of COVID-19, the norm was that everyone worked in the office with a few exceptions. Now it is true today, that a certain percentage of candidates yearn to work on site because they miss the camaraderie and in person career development. Unfortunately, for employers expecting a full return to the olden days, these are not the majority. Insisting that most of the time is spent in the office will severely limit the candidate pool that you will attract. Your chances of attracting talent will rise proportionally with the amount of remote work time that you will allow. With technology today, being onsite does not have the advantages that you might think. Again, we agree that in office work is the best, and maybe someday it will return to its previous dominance. But, in 2022, insisting on in office work will severely hinder the quality and quantity of staff that you will attract.

7. Hesitation in utilizing outside resources to improve your results.

The main product that CPA firms have to offer is time. Anything that takes you away from client work is potentially wasting resources and bottom-line revenue. We’ve all heard the stories of recruiters who are more interested in collecting their fees vs. finding the right candidates. These bad experiences should not dissuade you from utilizing professional resources that have the processes and reputation to get you the results that you need. Another situation that has to be considered is the impact of inhouse HR and/or Talent Acquisition departments. The professionals who staff these departments are competent and have the best interests of the firm in mind, but they don’t have all the answers. One piece of supporting evidence of this is issue #1 above, which discusses ineffective employment ads. If you search in a metropolitan area for tax associates, you will see a multitude of ads from large firms that have no differentiation. They talk about job requirements but give no compelling reason why a candidate would want to work at that firm. You can be certain that these firms have internal departments performing their recruiting. Recognizing that an experienced professional outside recruiter can cost effectively enhance internal efforts and in the long term save money through out of the box thinking and methodologies will pay you dividends.

So, how were the above conclusions reached?

During the last two years, in one of the most difficult recent recruiting environments, our efforts for our clients have resulted in 95% successful searches with a 90% retention level after the first year. We do not work on a contingency basis but a flat fee, where our incentive is to find the best candidate possible. Our fees are less than contingency recruiters and, in most cases, we are successful in our searches within six weeks. The opportunity cost savings for our clients are significant.

As another busy season approaches quickly, and you are concerned that your staff levels are not what they need to be to ensure maximum client services and firm profitability, consider contacting us for an exploratory conversation. If the issues above are occurring in your firm, it might make sense to look at an alternative approach. Gary Kravitz is a partner with Integrated Growth Advisors and can be reached at 877-442-4769, ext. 704.

MIS-HIRE ON STAFF CAUSING YOU PAIN? (2 MINUTE READ)

Fri, 12 Mar 2021 20:44:28 GMT

CPA firm CEOs who are evaluating their talent on the front lines of this tax season.

Some firms are suffering from the pains of mismatched staff, perhaps the result of hiring too fast simply to fill an opening at a bargain price.

The cost of a mismatched hire is significant and can come along with cultural impacts of engagement inefficiencies, applying unnecessary stress to staff relationships, putting clients at risk, impacting profitability, and causing unwanted aggravation.

Smart CEOs are constantly assessing the strengths and weaknesses of their organization charts, looking to close gaps, and preparing to assertively make improvements where necessary.

The treadmill is already in motion and talented people will be on the move sooner than later. Will you be positioned to grab the cream of the crop when they make their move?

IGA does recruiting differently from the typical search firm. Learn how by setting up a no obligation consultation with Gary Kravitz, our lead executive recruiting advisor.

Take a brief survey to determine if we can be your solution by clicking here .

Driving Value and Performance During Busy Season

Sat, 20 Feb 2021 20:49:17 GMT

“Let’s wait until after the 15th.”
No CPA has ever said that, right???

Much to the chagrin of many CPA firm leaders, these words are uttered all too easily by partners, managers, and staff.

The fact is that the treadmill of the business world is always running and it doesn’t stop because a CPA is battling the priorities of tax season.

There is no time like the present to deploy strategies and tactics that enhance the firm’s performance and value.

Stepping forward with baby steps is better than not stepping forward at all.

More Valuable Firms Perform Better

CPA firm valuation is typically driven by top line billings or net fees. Ultimately, buyers will pay a multiple of anywhere between percentage points to a higher multiple beyond 1X net fees. The beauty is in the eye of the beholder, or buyer, of course.

With that said, what beauty is a managing partner who plans to not sell beholden to?

Is it more profitability?
Is it better performance?
Is it reduction of write-downs?
Is it top line growth?

If valuation is a function of any or all of these, does it then support the notion that a firm should be always driving a higher valuation? IGA supports firm owners on their journey to building the firm today that will be sold or transitioned tomorrow, next year, or in 10+ years. A more valuable firm is also a firm that performs better and puts money in the pockets of the owners along the way.

So, build the value incrementally, day-by-day, month-by-month, and season-by-season.

The treadmill of your firm’s commitment to growth should never pause.

Value & Performance Enhancing Considerations for Tax Season

Growth-minded CEOs work diligently year-round to improve their firms and they make large chunks of progress especially in the offseason.

How can they continue the incremental progress during their busiest seasons?

We share a handful of suggestions below.

For a more detailed list, click here .

Get your team to view your firm as a business enterprise and influence their understanding of how a CPA firm is more than simply a “practice,” its a viable “enterprise.” A successful firm is broken into manageable parts: SALES+PEOPLE+ADMIN+CLIENTS

Facilitate a SWOT analysis discussion with your clients; embed the discussion into audit/tax planning or audit/tax exit process; seek to understand and quantify the areas where a client requires improvement or assistance.
Ask your clients lots of questions; your intellectual curiosity does two things: it shows clients you care AND it leads to uncovering more opportunities that can be sourced internally or referred externally to a trusted referral source who may then be inclined to reciprocate back to your firm.
Accelerate work-flow; front load client work into first hours/days of engagement. Design delivery plans that are proactive, with accelerated milestones that allow your team the best chance to delegate tasks back to client early in delivery process. Respect your value as a resource; give attention only to those clients who are prepared and ready for you. Behind most profitable engagements are prepared and controlled clients.
Be an involved and engaged leader, don’t leave anything to chance; communicate with your staff and avoid the “set it and forget it” approach to managing your engagements and teams.
Stay in your lane, perform at your paygrade, and delegate. Get your leveraging model right-sized. There is an appropriate spot for each task. Resist the temptation to be a do-it-all CPA. Performing at your paygrade means you make more money.

For access to a more detailed list, click here .

BEST WISHES FOR A SAFE, PRODUCTIVE, AND PROFITABLE TAX SEASON!

Job Opening: Strategic Tax Manager

Tue, 24 Nov 2020 20:50:49 GMT

Our retained search client, is a Carolina based CPA firm that offers a relaxed work atmosphere combined with continuous technical learning and professional development, high spirited client services, and an emphasis on community and team relationships. We get the job done for our clients, while encouraging a work and life balance.

We put a high value on technical expertise and maintain a culture that allows personal accommodations. We are always encouraging innovation within a system of technologies and process management. Our purpose is to leverage our knowledge to help our clients manage risk and advise strategies that improves their financial security.

We are seeking an experienced Strategic Tax Manager , who is committed to the vision of providing superior service and expertise, while working in a team oriented non silo environment.

Qualifications and Duties for this Partner Track Opportunity Include:

Qualifications:

Bachelor’s degree in accounting
Masters in tax preferred
CPA.
7 years accounting firm experience with 2 years in management.
Directly supervised 3-5 staff.
Worked in a multi-location CPA firm with between 20 and 100 staff.
Experienced with CCH suite of products.
Expert computer skills.
Proficiency in Microsoft Suite.
QuickBooks expertise.
Familiarity with CRM.
Comfortable and experienced in firm business development activities; networking and new client meetings.
Industry expertise: Manufacturing & Closely held Companies required. Real Estate preferred.
This position offers a combination of an office and remote work setting.

Duties:

Technical review of corporate, partnership, individual and trust tax returns.
Prepare complicated tax engagements (or portions).
Professional service and relationship manager for assigned list of clients.
Proactive tax planning for assigned clients.
Tax team technical resource for specialties to be agreed upon.
Usage of all relevant software applications.
Supervise 3-4 staff and senior tax accountants.
Active team member participating in tax practice management.
Participates in firm business development activities.

This career altering position offers a competitive salary and bonus plus benefits and has partner track potential.

Please forward your resume with salary requirements to:

Gary Kravitz

gkravitz@integratedgrowthadvisors.com

Preparing for New Owners Podcast

Tue, 08 Sep 2020 19:52:02 GMT

Important Considerations in Transferring or Selling a Firm

In every accounting firm, there comes a time when managing partners will change for various reasons such as retirement. The firm needs to be passed on to new owners, whether through an internal transfer or an external sale. In this interesting episode, Dan McMahon, Founder and Managing Partner of Integrated Growth Advisors, shares some of the ways in which IGA prepares firms for the inevitable, as well as strategies for increasing their value prior to the firm changing hands.

Dan McMahon is the Founder and Managing Partner of Integrated Growth Advisors . His career includes over 25 years in Chicago and New England as a CPA and business advisor with focused experience on serving professional services firms. Prior to founding IGA, he served as an Audit Partner and the Partner-in-Charge of Sales and Marketing for a regional public accounting firm. He advises clients in the public accounting profession on firm governance, sustainability, generational transferability, and building increased equity valuation. Dan also provides mergers and acquisitions advisory services to business owners including the leaders of CPA firms.

Click here to listen to the podcast.

Maximizing Firm Value During the Baby Boomer CPA Transition Tsunami

Fri, 06 Mar 2020 20:53:28 GMT

The sheer volume of baby boomers retiring is like a tsunami racing through CPA firms. Is your firm poised to capture enough value to allow for a stable retirement for exiting equity partners?

The first group of baby boomers started to turn 65 in 2011 and the wave of additional baby boomers to enter this age bracket will continue for years to come.

The implications of this on CPA firms is quite substantial and the impact will be widely felt for years to come. Unfortunately the firms that do not have in place a strong growth strategy aligned with sound tactics will be faced with substantial issues in what promises to be a very competitive environment.

The CPA Transition Tsunami

On the one side we have the potential for a large number of exits. And on the other side we have limited funds available. The scenario has all the potential markings of a feeding frenzy, and the firms that are caught flat footed will face some serious shortfall.

In our capacity as business growth advisors, one of our core client concentrations is focused on the CPA space (two of our business growth advisors are CPA’s) in large part because we know this space extremely well. We regularly advise our clients to prepare for what promises to be tectonic change and to position their firms as best they can to take advantage of these upcoming opportunities.

The Impact of the CPA Transition Tsunami

While not related directly to any of our clients, some key observations we have made that are broadly applicable to today’s CPA Firms are as follows:

Some Firms have not adequately planned for upcoming partner retirements. Firms that are looking to cash out and to retrieve cash equity need to begin their planning years in advance.
Many firms that are beginning to consider a potential transition event have not been spending enough time on client development – the result is that too often their client base is aging with them, thereby diminishing the lifetime value of their clients in the eyes of potential new buyers.
Too many firms are not properly developing their in-house talent to achieve a healthy and equitable transition where new, younger partners can take over the CPA Firm allowing older partners a healthy exit while also leaving a legacy intact.

79% of firm owners say succession planning will be a significant issue for their firm within the next 10 years, and yet nearly half of them do not actually have a succession plan in place!

Source: http://www.journalofaccountancy.com/Issues/2013/Jan/20126674.htm

Too many firms with partners of the baby boomer generation are not being realistic about the value of their CPA Firms, nor are they putting in the work to make their firms as attractive as possible for a potential sale or exit through partnership, merger or acquisition.
Many firms with baby boomer generation partners are not focused on the reality that there is about to be a deluge of other firms attempting to do the exact same thing they aspire to do. This is often referred to in marketplaces as a glut…. And when there is a glut the price of goods (all other things being equal) goes down due to a finite amount of available capital.
The combination of a large percentage of firms with partners of the Baby Boomer demographic, too many firms without solid succession plans in place and too many firms with partners looking to exit has created a heavy merger environment (For further reading specific to this subject we suggest this article in the Journal of Accountancy ), but many of the underlying exit pain points still exist.
Those firms that plan to continue operating in their current state are not spending enough time building out their capital reserves – in a world of too much capacity there will be some great buying opportunities at what might otherwise be considered bargain prices. The firms that are quicker to grasp this, and are prepared to act decisively and with vigor will have some great opportunities ahead, likely at the direct expense of their competitors.

Thriving in Complex Times

Our role as growth advisors to our CPA clients is to help use growth strategies and tactics to not only prepare for a variety of potential future scenarios, but to actually thrive in these environments. It is unfortunate that some firms might not realize their full potential in a transfer of ownership. However, for those firms that are able to appreciate the role of demographics in this conversation and are willing to focus on sustainable growth and transferability, we are excited about a plethora of wealth generating opportunities that will be arising over the next few years.

Marketing’s Role in Growing Revenues and Attracting Talent

Tue, 22 Oct 2019 19:55:47 GMT

Have your revenues been flat or growing at single digit percentages? Are you having difficulty attracting good talent?

If you are experiencing one or both of these symptoms, you might find the cure in marketing.

Technology is affecting the way you do business and how your customers do business. People locate and shop for services from their mobile phones. Is your website mobile optimized? People make decisions about a business or a prospective employer from what they see online. They form impressions from a website and the ratings they read online. How does your business look online?

Job Candidates and Prospects Shop You Online

According to a Glassdoor U.S. Site Survey, 70 percent of job candidates read reviews before making career decisions. For business services, a report by market research firm Forrester states that 68% of prospective business clients conduct their own research online before engaging with a company or its sales representative. How does your firm look to a prospective employee or client?

Clients used to come in through referrals from business relationships you cultivated over the years from all the networking events you attended. To some extent, that still works, but it isn’t enough to build or sustain your future revenues. Your online presence is absolutely critical for your business’s growth. It is the key to attracting talent, prospecting for clients, networking with referral sources, and engaging with current clients and employees. Your website is only one part of your online presence.

Improve Your Online Presence

How do you improve your online presence? Where do you start? Is your website more important than your visibility on social media sites? Which sites are the best for your business? Are they different? What is the best online advertising strategy? If these are your questions, it is time to seek out a marketing specialist for the answers.

Marketers operate in a world of online communication, social media, creative storytelling, and customer experience. They excel at organizing and keeping a project with lots of team members and moving parts on track – like building a new website or new logo or managing and measuring marketing campaigns.

Stay Top of Mind

Do you leave marketing activities to your admin coordinator? They are often buried under so much of the behind-the-scenes mechanics of customer service, billing, and running the office, that marketing activities on their plate fall down and off the list of priorities. If you look at LinkedIn, you can see this reflected in sporadic postings. Social media is meant to be an ongoing “conversation.” After all, out of sight is out of mind. Marketing keeps your business top of mind.

Contemplate the future of your business, the talent you want to attract, and the revenues you need to generate. Marketing should factor prominently into your plans. Bring in a marketing specialist to evaluate and build and implement a strategy customized to your needs. Then, stay in your lane and do what you do best, and let your marketer work a little magic.

Governance Foundations and Aspirations – Why Focus on Governance?

Mon, 19 Aug 2019 19:57:33 GMT

One of our recent blog posts centered on the topic of attracting, engaging and retaining good people. We drew a comparison between building a firm foundationally strong in its corporate governance structure and “going the distance” by deploying an effective corporate governance structure.

The timing of that blog coincidentally preceded an announcement from Major League Baseball (MLB) that the Chicago White Sox will meet the New York Yankees at the Field of Dreams in Iowa for a regular season game in August 2020.

MLB and Universal Pictures will seek to build an 8,000-seat stadium to host a game in the Iowa cornfield made famous by the 1989 movie. Build it and they will come…from all over…to attend this uniquely special mid-summer event.

From building a foundation to going the distance, this series of blogs will continue to address foundations and aspirations of governance. “ Why, ” a CPA firm owner might ask, “ should I prioritize my time and attention on governance when I can tackle any number of tactics? “

Sound corporate (or firm) governance is about envisioning the big picture, being equipped with the right data, and trusting the structure, process and policies of the firm to guide employees’ behavior and make informed and impactful decisions.

The absence of governance can have a profoundly negative impact on employees’ work-life balance. Poor governance causes a lack of trust in firm leadership which, in turn, impairs profitability and achievement of important firmwide initiatives.

The Integrated Growth Advisors (IGA) service team has served CPA firms as external advisors as well as in a variety of roles from staff accountant to partner. We have also worked as marketing and sales professionals in support of our firms’ business development efforts. The prevailing thought throughout every stage of our careers—and especially whenever suffering setbacks—was “there has got to be a better way.”

Spending unplanned weekends and evenings in the office, away from family and friends, fighting fires, often being reactive, rarely being proactive are examples of setbacks that can create unnecessary pressure on the team and therefore places unneeded strain on the firm.

Let’s face it, anyone who has worked in public accounting has struggled with setbacks brought on by any number of reasons. Some reasons are unavoidable. Others can be easily addressed through governance and proactively deploying structure, process, policies and procedures, and clear communication. The IGA team has observed client scenarios—some better, some not so good—that have formed the basis for us to develop a suite of solutions that contribute to the design and implementation of a right size, right shape CPA firm governance structure.

CPAs often operate in crisis mode. The pressure to perform as a competent technician within tight deadlines, as a trusted advisor, an effective administrator and a business owner never lets up. So, why would you want to make things any more difficult on yourself and your firm?

This is why we focus on governance.

About the author

Dan McMahon is the Founder and Managing Partner of Integrated Growth Advisors. He advises clients in a variety of industries—including the public accounting profession—on firm governance, sustainability, generational transferability, and building increased equity valuation. Dan also provides mergers and acquisitions advisory services to business owners including the leaders of CPA firms.

Foundations of Governance: Attract, Engage, Retain

Mon, 29 Jul 2019 20:12:47 GMT

This is why we focus on governance.

About the author

Read Dan’s recent paper on Governance. LINK

5 Fortunes of CPA Firm Governance: a white paper

Fri, 12 Jul 2019 20:15:59 GMT

There is no “one size fits all” answer to designing and applying an effective governance model.

This whitepaper addresses five (among many) benefits of effectively deploying a governance structure in a CPA firm. We will first seek to provide a functional definition of governance that will then frame our deep dive discussion of the five benefits we’ve chosen to highlight.

McMahon to Speak at National Conference on Firm Governance

Sat, 04 May 2019 20:20:03 GMT

Daniel J. McMahon, founder and managing partner of Integrated Growth Advisors (IGA), will present “The Five Fortunes of CPA Governance” at the Allinial Global 2019 Executive Team Conference in Napa, CA, on May 21.

Prior to founding IGA, McMahon served as an Audit Partner and the Partner-in-Charge of Sales and Marketing for a $30 million revenue regional public accounting firm, where he also specialized in governance and controls.

While IGA serves clients in a variety of industries, McMahon’s firm specializes in governance, sustainability, generational transferability, and building increased equity valuation. IGA also provides mergers and acquisitions advisory services to business owners, including the leaders of CPA firms.

Allinial Global is a member-based association of independent accounting and consulting firms. Founded in 1969, it has 191 members with locations throughout the world generating approximately $3 billion in collective revenues.

IGA is a growth advisory firm focused on empowering business leaders to systematically enhance their revenues, profitability, sustainability, and value. IGA’s unique processes and methodology focuses on creating sustainability and transferability for our clients’ businesses by addressing common issues relating to growth, control, and transition of ownership. The IGA process also serves to maximize company valuations thereby enhancing the wealth of our business owner clients.

IGA serves clients throughout the United States from locations in Connecticut, Chicago, and San Francisco. Visit us online at www.integratedgrowthadvisors.com.

Strong Governance can drive success for your business. To learn more, or to book Dan McMahon to speak to your group on Firm Governance or Corporate Governance, contact us .

4 Ways to a Smoother Integration After the M&A Dust Settles

Mon, 29 Apr 2019 20:22:59 GMT

Like many of you, I’ve lived through several mergers and acquisitions throughout my career, and rarely have I seen them go smoothly. The top brass brokering the deal is very concerned with the legal contracts, billing and accounting systems, IT and technology issues, and big HR concerns.

These are intensive initiatives to tackle. However, there are four areas that seem to go neglected. They are very noticeable after the dust from these big disruptions begins to settle. Left unattended, they can make for a very messy and prolonged integration. Sometimes, they can result in the buyer imposing purchase price adjustments due to contingencies and clawbacks that are likely to exist in a sale contract.

Communicate clearly, early, frequently

First, it’s always about communication. Clear, early, and frequent communication with your clients is critical to prevent losing them and the coveted revenue they represent. Don’t leave them to wonder if their pricing will increase, if distribution will be interrupted, or if they’ll lose the account rep they’ve come to rely upon for good service. Keeping customers informed creates security. It prevents them from searching out another vendor or supplier. Can you even begin to calculate the lost time and high cost of finding a new customer to replace each one you lose? Can you predict the impact of lost customers on the sales price of the company due to earnout contingencies or retroactive clawback provisions?

Set internal strategy to secure employee retention

Internal communication barely receives a nod. You cannot underestimate the impact of clear, early, frequent, and transparent communication from top leadership to employees. The uncertainty created in a business undergoing continual change during an integration is very stressful. If they don’t believe their jobs are secure, employees will jump ship earlier rather than wait for the axe to drop. Top leaders set the tone in a company. If you want to drive success, you need to keep your people informed, so they will row with you, not away from you.

A study from the Society of Human Resource Management (SHRM) estimates the cost of replacing a salaried employee at six to nine months’ salary on average. That means you take a hit to your bottom line of $27,000 to $40,000 in recruiting and training expenses for one manager whose salary is $80,000. When leaders are transparent and inform employees throughout the process, they can stabilize the company by reducing uncertainty and fear.

Keep in mind that even one recent bad review on Glassdoor or another site can kill your recruiting efforts. If you seek to hire to support your growing company, you should count on job candidates researching your company online. A Forbes article reported that among job seekers, “48% had used Glassdoor at some point in their job search.” It also cited a study that found that “60% of job seekers would not apply to a company with a one-star rating (on a five-point scale).”

Don’t let the marketplace paint the wrong picture

Communicating clearly to the marketplace is critical to stave off vulture competitors. When you are silent, people will fill in the story and often get it wrong. When you do this, you are practically sending an invitation to your competition to instill insecurity and concern among your clients about your company’s stability. Why would you do that? Go out loud and strong and consistently – early and throughout your integration – with a clear and positive message of what benefits this merger or acquisition will yield. This applies to communicating with an industry organization in which you hold membership. Losing their faith could mean lost referrals and negative rumors you wouldn’t even know are circulating among your peers.

Use social media to your advantage

A fourth item that is symptomatic of lack of planning, is leaving your LinkedIn or other social media sites to languish with old business descriptions. Really? This is your market-facing calling card for millions to see. Pay attention to it by updating it quickly and accurately. Post good news often and consistently to convey your emerging value proposition. Remember, your employees and clients (and everyone they are connected to) will be reading your LinkedIn page to see what’s going on.

Use this FREE listing to your advantage. Make it easy by giving everyone new text to copy and paste into their profiles to communicate a united message about your company. It is also likely LinkedIn is your sales team’s main lead source, and if it is outdated and lackluster, you could take a hit with lost sales opportunities or sales turnover.

Integrations are tough, require strong leadership, and can go much smoother when these simple four areas are added onto the daunting checklist. It is entirely possible to reduce the chaos and increase your success with a little strategic planning earlier in the process. Crafting a well-thought-out PR strategy to get the message right and scheduling communication along a project timeline is an efficient and effective way to handle these communication processes. If you’re unsure what to build on your business integration checklist, see guidance from a seasoned advisor.

IGA Expands with Strategic Marketing Advisory Services

Mon, 08 Apr 2019 20:24:08 GMT

Integrated Growth Advisors (IGA) announces the expansion of its business growth services with the addition of Partner and Chief Marketing Officer, Jill M. Kovalich, who will oversee the new Strategic Marketing Advisory Services for US-based clients.

Kovalich brings over 25 years of strategic marketing and business development expertise to the IGA team. “Adding strategic marketing services to complement our business growth focus is an excellent way to provide more customized solutions to meet our clients’ needs,” states IGA Managing Partner and Founder, Daniel McMahon. “Jill is exceptional at seeing the big picture and applying her strategic vision in meaningful and results-driven ways that our clients need and want,” adds McMahon.

McMahon founded Integrated Growth Advisors after working over 25 years in Chicago and New England as a CPA and Audit Partner and the Partner-in-Charge of Sales and Marketing for a $30 million revenue regional public accounting firm. His keen interest in and experience helping business owners and his firm with governance and controls led him to create IGA and its proprietary processes to help businesses cut through the noise and focus on developing strong leadership and build sustainable growth. Strategic marketing planning is a key factor in building sustainable growth by adapting to rapidly shifting market pressures.

About Integrated Growth Advisors
IGA is a growth advisory firm focused on empowering business leaders to systematically enhance their revenues, profitability, sustainability, and value. IGA’s unique processes and methodology focus on delivering on services built upon a “full-cycle” approach. We create sustainability and transferability for our clients’ businesses by addressing common issues relating to growth, control, and transition of ownership. The IGA process also serves to maximize company valuations thereby enhancing the wealth of our business owner clients. IGA serves clients throughout the United States from locations in Connecticut, Chicago, and San Francisco.

Learn how we can create solutions tailored to your firm’s needs. Contact us today .

Make America Accountable Again

Tue, 06 Sep 2016 20:25:16 GMT

Each of us at one time or another has likely wished that government would be run more like a business. But beware, for your wish may come true. Many of the nearly 28 million American businesses are poorly run. Half of all new companies don’t survive past five years. What we really yearn for is that our government employ the practices of successful companies.

Paramount among those “best practices” is accountability. America’s top preforming businesses, large and small, have strong systems of internal controls. Employees at all levels understand what is expected of them. Bosses use measurements and metrics, and give feedback.

When expectations are met, there are rewards. When not, there are consequences. No executive or employee is allowed to do simply as they wish. Everyone’s behavior and conduct has to support, and be aligned with, the company’s strategy and mission. Things happen according to a plan. And it all works because everyone knows they have a responsibility to a higher authority: a boss, the board of directors, or the shareholders.

Another practice good companies excel at is getting to the root of problems. They find the systemic cause of business dysfunctions.

The notion of accountability did not simply develop as a good business practice. Nor did it come out of our nation’s business schools. It came, perhaps surprisingly and certainly ironically, from government.

The genius of our constitutional form of governance is accountability — in the form of checks and balances imposed on all branches and departments — baked into the Constitution’s DNA. The Framers had a profoundly deep understanding of human nature. They knew that left to one’s own devices, one would always make decisions and take actions favoring self-interest over the conflicting interests of others. It is how evolution wired our brains.

Yet over time the institutional brake pads on human nature have worn thin. Accountability by those who govern has become a thing of the past. And the consequences to society are severe. Look no further than to my home state of Illinois. The state has been without a budget in over a year. The Land of Lincoln teeters on the brink of disaster.

The root cause of Illinois’ dysfunction: State law makers are no longer accountable to the voters. Gerrymandering has allowed legislators to create their own districts. In the upcoming election, only 63 of 158 legislative seats are even contested, a testament to what a good job elected officials can do at self-preservation when given the opportunity. The Illinois story is not unique. Fundamental lack of accountability at the state, local, and federal level abounds.

Fixing businesses by instituting effective systems of accountability is easy. All it takes is principled leaders who understand how strong corporate governance produces companies more valuable to employees, customers, and shareholders.

Restoring accountability in government is not so easy. Constitutional amendments are often required. In Illinois, half a million citizens and dozens of civic groups are pushing for an amendment to prevent lawmakers from picking their own districts. But the politicians are fighting it. In the absence of accountability, self-interest triumphs.

If you are a business owner or manager, you can do your part to make your company great by following best practices regarding corporate accountability. As citizens, sadly, we will have to wait for politicians who want to make America accountable again.

To learn how Integrated Growth Advisors can help you solve your business challenges, contact Daniel McMahon, at 843.441.2671 or 860.490.5068, or dmcmahon@integratedgrowthadvisors.com

Grow or Die: Is it One or the Other for Businesses?

Mon, 06 Jun 2016 20:27:49 GMT

Recently, a friend told me how he recently became engaged in a heated debate with a client. The topic of controversy: Whether the grow or die axiom, so popular in corporate America, was a binary choice. Here’s how he related it to me.

I was urging my client, a senior partner in a well-established accounting firm, to embrace more growth-oriented strategies than he was comfortable with. In doing so, I am embarrassed to admit, I resorted to a cliché.

“You always make things binary,” my client chided me. “It’s not one or the other. A company can grow and still die. It can fail to grow, and yet not die. It does not have to be grow or die.”

As a management consultant helping companies improve business performance, I teach clients new ways of solving old problems. But I am always amazed at how much I learn from my clients, for which I am grateful.

My client was right. The names of some companies that had spectacular growth, right up to the moment they died, came to mind. And I conjured up examples of companies that have never grown, but enjoy year-after-year steady profits.

So a deeper dive on the “grow or die” mandate became necessary. After pondering the topic, here are my conclusions:

1. Grow or die is about improvement, not literal growth. Taken literally, it is true that growing companies die, and that non-growing companies enjoy longevity. The phrase “grow or die” does not refer to literal growth, such as increased sales, margins, or profits. It refers to continuous improvement of business strategy, processes, and execution.

2. Improvement produces literal growth. In The Power of Habit, author Charles Duhigg tells the story of how Paul O’Neill turned Alcoa around by getting everyone to focus on improvement in just one area: worker safety. The result was not only a safer workplace, but a company that improved in other areas, resulting in dramatically increased sales, margins, profits, and shareholder value.

3. Grow or die should not be blind to quality of growth. Not all growth is created equal. Quick or sporadic growth, or growth resulting from quirks of fate or happenstance, are not of the same quality as growth resulting from a company’s unrelenting quest to do a better job. Growth resulting from a process of continual improvement is the kind of growth that can be expected to be lasting, making companies sustainable for the long-term, and thus less vulnerable and more valuable.

4. Death is not always about heaven or hell: Sometimes it means purgatory. Not all companies that die go to heaven or hell. Some simply linger in a state of perpetual stagnation. Employees become stale, dull, and disinterested. Product offerings fail to keep pace with changing times. Owners and managers become complacent, confident that doing what they have always done will assure future success. These companies are dead, and do not even know it.

Perhaps the foremost expert on the subject of growth, (at least biological and evolutionary growth,) was naturalist Charles Darwin. It was Darwin who said that it was not the strongest who survived, but those most adaptable to changing environments. And, after all, isn’t adaptive change what improvement is all about?

So, perhaps instead of preaching grow or die, he should have advised his client to improve or die.

What do you think of his approach?

The Value of Execution

Fri, 12 Feb 2016 21:29:23 GMT

Warren Buffet once said, “Price is what you pay. Value is what you get.”

If you own a business, the day will come when you will wish to sell. When it does, you will want to be paid the best price possible for your life’s work. To do so, you need to have built a business with a lot of value.

Most people don’t own businesses, but instead sell their services to employers. They too should be focused on value. In selling one’s services, employees can earn the best price (paycheck) by providing real value to their employers.

Focusing only on businesses for the moment, there are many sources of value.

We typically think of business value deriving from earnings. The more profitable a company is, the more valuable it is. Companies are sold at a multiple of EBITDA (earnings before interest, taxes, depreciation, and amortization.) A company with EBITDA of $1.5 million, will sell for $6 million, if the buyer agrees that it is worth a multiple of 4.

Earnings are the objective component. They represent a hard number determined by application of generally accepted accounting principles. That way, when comparing the earnings of companies in the same industry we can have some assurance that we are comparing apples to apples.

Multiple is more subjective. A better company demands a higher multiple of earnings. And even after that determination, when potential buyers get a close look at a company, usually through due diligence, they often seek purchase price adjustments or hold backs to reflect deficiencies they find.

What makes one company better than another, and therefore deserving of a higher multiple, with no or few purchase price adjustments?

The long answer is that multiple and price adjustments are driven by a number of factors such as a company’s competitive position in the market place, the power of its brand and reputation, strategy, and financial strength, among other things.

The short answer is that companies that execute well have more value, hence, will fetch higher prices.

So business owners with an eye to eventually selling — and every business owner should have sale in mind — need to be ever-mindful of the value of execution.

In their book Execution , Larry Bossidy and Ram Charan tell us that execution is about the integration of strategic processes, people processes, and operational processes. The book, written in 2001, has lessons still relevant today. And while written from the perspective of big companies, the messages apply to smaller businesses as well.

The strategic processes encompass a company’s business model, the plans it makes to accomplish objectives, and what it wants to be. But the greatest strategic plan in the world, or the most ingenious business model, mean little if the company does not have the means to act upon its plans.

The people process is designed to assure that the right people are in the right place to do the jobs that are required to accomplish the strategy. And it is about assuring that there is a clear assignment of responsibilities, and accountability for discharging those responsibilities.

The operations process encompasses the detailed steps that need to be taken to accomplish the plan or the strategy. These steps, and progress toward goals, need to be continually monitored, and adjustments made as necessary. The integration of these processes is critical. Effective integration takes hard work and relentless questioning and watchfulness.

It doesn’t require an MBA to be a master at execution. It requires keeping an eye on both the big picture and the details, good communication (including listening), and rigorous, persistent, and tenacious follow through.

When sale day comes, the payoff will be big for those who have mastered execution in their businesses.

To learn how Integrated Growth Advisors can help you solve your business challenges, contact Daniel McMahon, at 843.441.2671 or 860.490.5068, or dmcmahon@integratedgrowthadvisors.com

Pain, Gain, and Business Growth

Tue, 12 Jan 2016 21:30:44 GMT

Imagine that you experience a flash of inspiration and conceive a clever idea for a business venture. You quickly execute on your idea and make a fast profit of $10,000. How do you think you would feel? No doubt you would be happy with your success.

Now imagine that instead of a fast $10,000 profit, you immediately lost $10,000. You would feel really bad, discouraged, and upset. In fact, the pain you would experience over losing $10,000 would far exceed the happiness you would enjoy if you had profited by $10,000.

Scientists have studied the human brain and have learned that we are wired in ways that make us experience the pain of loss more deeply than we experience the joy of gain. As Nobel prize winner Daniel Kahneman and Amos Tversky put it: “In human decision making, losses loom larger than gains.”

Savvy marketers and merchandisers understand this. A company selling energy efficient refrigerators does better advertising “avoid losing hundreds of dollars in energy costs” than it does by saying “save hundreds of dollars on energy bills.”

This evolutionary adaptive quirk of human nature – called negativity bias – which makes us feel loss more strongly than gain, has important implications in a variety of business contexts. And it explains human behavior in ways useful for executives managing businesses for growth to understand.

Consider the following experiment by Dean Buonamano and described in his book, Brain Bugs . As with all experiments, there are two conditions. In condition one, participants are given $50 and two options:

Option one: Keep $30

Option two: Gamble the $50 with a 50 percent chance of keeping the entire $50 and a 50 percent chance of losing the entire $50.

Forty-three percent of the experiment participants selected option two: A chance at the whole pot, with an equal chance of losing it all.

In condition two, the first option was this: Lose $20. This time, 61 percent of the participants opted for option two, the gamble option. That’s a statistically significant over 40% increase in people making the least rational decision.
This experiment, and many others like it, clearly demonstrate how risk aversion influences thinking in ways that lead to illogical and irrational choices, often to the decision maker’s detriment.

Consider the following implications for business decision-making and execution, particularly as it impacts managing for growth.

Risk taking: Loss aversion leads to unwise risk-taking. As seen in the experiment described above, more study participants confronted with the pain of loss (lose $20,) made a bad gamble than did participants experiencing the joy of gain (keep $30.) Either way, the risk was a bad one. The decision to forego a certain $30 for a risk-adjusted $25 is plainly irrational.

Decision making and execution: An executive faced with a growth investment decision, such as spending on a program to improve the sales and marketing departments’ performance, will be naturally inclined to reject the proposal.
The discomfort at the thought of losing the amount invested in the program looms far greater in a decision maker’s mind than does the taste of success the program would bring if it works as expected.

Creating business growth: In his book, Thinking Fast and Slow , Kahneman said: “Loss aversion is a powerful conservative force that favors minimal changes from the status quo in the lives of both institutions and individuals.” Where business growth is often based on a model of assessment, planning, and execution, loss aversion can be a major obstacle and source of resistance for managers trying to grow businesses.

The challenge for decision makers is to understand the scientific fact of feeling the pain of loss more intensely than the joy of gain, and to confront and overcome it in the decision making and execution processes. Those who can do so will be more successful in growing businesses than those who cannot.

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To learn how Integrated Growth Advisors can help you solve your business challenges, contact Daniel McMahon, at 843.441.2671 or 860.490.5068, or dmcmahon@integratedgrowthadvisors.com