line ” I mean that people may not understand their role and where you want them to be .
2 . What Key Indicators Have
Been Established ? It can start with daily sales or daily / weekly production or cost effectiveness data . The essential ingredient is that the data indicators are relatable to team members and their control or influence over what is being measured . One can ’ t be responsible when there is no control over it .
Why ask these questions ? Change . Change is always present .
3 . What Are Driving Threads Of The Business ? There can be any number of operational , organizational or philosophical components that drive success for a business . These can include how customers are being treated , pricing structures , amount of research and development or quality control , employee commitment and on and on . These also can change by year . No matter the timing , it matters that these core threads are acknowledged and work .
4 . What Are Key Operations Report Results ? This is information reporting as opposed to key indicators with historical bent — it can be monthly , quarterly , annually or as needed . What are customers doing ? What are they buying ? How profitable are individual customers ? How has their buying changed — more returns , cheaper products , etc .? You can look at markets the same way . The same can be said for production and other areas , like service . Gross profit by customer , sales pipeline and sold work vs . lost work are also examples .
5 . How Effective Is Communication With Stakeholders ? Stakeholders are individuals or other businesses connected to the owners or the business itself for something like retirement or outside vendor needs . They are often essential to well-being of the business . For instance , retired owners , maybe the original founder or founders , are still around and collecting income . Their influence , knowledge and history can be invaluable . How well are they and others being connected with ?
6 . In What Ways Are Incentives Consistent With Goals
And Objective ? This question is in line with No . 1 , more specifically : What do people know , react to and need to adhere to ? Is everyone on the same page ? Are we using the same language — or close to it ? Are we philosophically aligned ? I had a very successful tech business as a client that wanted help with next steps , so I led a retreat where we addressed these questions . It was a critical exercise because , within the previous year , the business had been hiring team members from a much larger , less entrepreneurial company ; and the influence of those new team members was already slowing down the business .
7 . How Are Human Resources Aligned with Overall Business Needs ?
Surprisingly , human resources ( the department ) can sometimes be one of the last groups to be included in decision making . How involved are they ? What kind of influence do they have ? Do they realize their potential and what can be done ? Bringing them into a retreat or meeting with other departments can make a positive impact throughout the business , including technology , managerial skills , loyalty , vision / mission and leadership / leadership development .
8 . What Tools Are Used To Manage Growth ? All businesses , individuals and other organizations are constantly going through cycles of growth , from entrepreneurial to professionalized to decentralized . Years can go by in a blink and it ’ s easy to miss how much change has happened . This standard issue happens as individuals get older , their limitations begin to show and people can become restless . Career changes can mean more managers are looking for a growth pattern and they , too , have changed . Succession is always an issue — from Day 1 — so it ’ s key that management retreats , outside evaluations , employee surveys and the like are incorporated .
9 . How Are Key Causes Of Crisis Addressed ? What is not discussed enough is that crisis can be around the corner — and it isn ’ t anyone ’ s fault per se . Crisis is a natural process , just like change — in fact , succession is a form of crisis and not attending to business cycles can evolve into a crisis . To stay on top of potential crises — at least as best as possible — consider early warning systems and knowledgebased management .
10 . How Have Tangible & Intangible Assets Been Identified ? Sometimes , the intangible is essential , and you never find its value on the balance sheet . One thing that comes home for me : location . Being on the right corner ( metaphorically ) at the right time and realizing it can be a lifesaver . Copyrights and patents along with the right insurance are essential at acquiring and holding on to very precious parts of our businesses and our clients ’ businesses . In addition , we might think more about our customer base , product diversity , business model , unique assets and trademarks as intangibles now .
Consulting advisory services have to be tailored to clients : How are they approached ? How is value gained calculated ? How often are you needed ? Should there be connections to other professionals who have deeper experience in specific areas ?
Being a partner in these kinds of situations greatly increases your value to clients as a trusted adviser .
By working through these questions , you can help your clients succeed even more than they are .
Mark H . Fowler CPA ( Inactive ) is president of Stowe Management Corporation . He is a member of the CalCPA MAP Committee and the CalCPA Los Angeles Chapter Board of Directors . You can reach him at estowemanagement @ aol . com . www . calcpa . org JULY 2024 CALIFORNIA CPA 19