Kreston Academies Benchmark Report 2020
January 30, 2020
January 30, 2020
January 29, 2020
By Liza Robbins.
If you walk into Exco Poland this week, you’ll find a colourful scene.
The firm has literally just finished decorating its offices with flowers and plants.
“When we moved into our lovely new office, which was open space, we started to have more people with headaches and stress,” General Manager Laurent Le Pajolec told me. “We realised we needed to take steps to improve the office environment. Providing more greenery is part of that.”
Over the past few weeks, I’ve been talking to you about the imperative to develop a strong understanding of *why* your firm exists.
The team at Exco Poland can expect many more changes in the coming months, because the flowers are just a small part of a wonderful new scheme to infuse Exco Poland with a sense of purpose and mission.
It began well over a year ago, when Laurent realised that the firm was at a disadvantage, because they did not have a CSR (Corporate Social Responsibility) programme.
“We have lots of younger employees, and we know that they want to work for a company where they are not just doing a job, but where they can change the world,” he explained to me. “They’re looking for companies which engage them and which behave responsibly.”
At the same time, he could see that their clients all had CSR programmes, and it was becoming expected for a company their size.
“If we don’t want to fight only on price, we have to show that we are up-to-date and relevant in areas like CSR, GDPR and security.”
They embarked on an extensive consultation exercise with employees, to help decide which values were important to them and which causes they were going to promote.
Ensuring that the entire team was on board, and getting their buy-in right from the start was crucial for the programme’s success.
“We needed to make sure that everyone understood and had input into what we were trying to do, or it won’t happen,” says Laurent.
Eventually, they settled on four core values on which they wished to focus: Sport and health / Wellness; The environment; Family; and community solidarity.
To make sure that the list was implemented, they appointed a full-time staff member who would be responsible for CSR, because they recognised that busy staff members would struggle to get this launched.
They ensured that there was a comprehensive list of actions to follow – not just a general statement of values.
And they decided to start with small initiatives, building up the scale of their activities as they went along.
Hence, the flowers. But in the six months since the scheme launched, there has been a whirlwind of activity and of inspiring initiatives.
For example, they were put in touch with an organisation helping children in hospital, whose accounts were a mess, and helped them sort it out pro bono. Later, two staff members volunteered to visit the sick children, building the relationship further.
There is already an ambitious plan afoot to help young sportspeople find part-time work in business, so they have a reliable income while training.
They organised a competition to see which team could take the most steps in a week, as well as running sessions (“We got the idea from Exco France,” says Laurent, “and it drove some people to take up sport for the first time. We’re always sitting in the office – this reduced stress!”).
And they have already started measuring their carbon emissions, so they can figure out what they need to do to reduce emissions, and how many trees they need to plant in order to offset their remaining emissions.
The bold aim? To become the first accounting firm in Poland with zero carbon emissions.
And the impact?
Laurent says that the consultation exercise was useful in and of itself, because it forced a valuable discussion about the firm’s aims and values, and also required a strong focus on communication.
Since the programme was launched, “we’ve seen an improvement in the atmosphere, staff are more engaged and people in different teams and offices are better integrated, because they work together on volunteering projects.”
They are developing KPIs so they can accurately measure the difference the programme is making on recruitment and retention of staff.
Meanwhile, the firm has started talking about the initiatives publicly, and Laurent says that clients have noticed – and love it.
“They can see that we’re a responsible company.”
When I asked him what he might do differently next time, he says only, “I would have done it earlier! The big mistake was to wait so long…..”
January 22, 2020
By Liza Robbins.
“People used to be focused on doing their job. But now they see things differently. They’re here to support the firm so that it’s a rewarding place.”
Imagine having staff so engaged and so invested in what you do!
I bet that most organisations would love to have a workforce like that…
…and would give anything to discover how to create one.
So today I’m going to reveal the secret to you.
It goes back to the mission I set you in my last blog post: To develop a really strong sense of purpose for your firm – a really strong sense of * why * you exist.
Let’s take a step back.
The quote I opened with comes from Andrew Sandiford of Bishop Fleming, one of Kreston’s UK firms.
Two years ago, when he became managing partner, he decided to take a fresh look at what his firm stood for and was all about.
“We had been hugely successful, but we’d achieved everything we could with our old model,” he told me recently. “It was time to renew the way we worked.”
Technically the firm already had a vision statement, which was to be in the top 30 UK firms.
“But we realised that doesn’t mean a great deal, it’s just a bland statement saying we want to grow. There was no articulation of why….”
“In fact,” adds Andrew, “I found 25 different statements of our core values – there was complete confusion about what we stood for.”
So Andrew gathered the partners to discuss what was important to them.
“We identified some key themes about being relationship-led and the power of experience over knowledge. We tried to get away from clichés like ‘value added’ and go deeper, to uncover what that really meant to us.”
Eventually, the Bishop Fleming leadership settled on a vision, but instead of publishing it far and wide, they “spent six months trying out the ideas, to test if they made sense.”
It was lucky they did, because they discovered that the values they had articulated were not easily understood.
“We had tried to encapsulate our thoughts in nice, snappy language, but it didn’t work. It sounded like a bunch of accountants trying to be creative!” laughs Andrew.
As a result they brought in a firm of external consultants, who ran focus groups with staff to make sure that everyone understood the vision in the same way.
So, for example, they had previously talked about achieving “a one-firm culture”, but they discovered that this meant something different to each staff member.
Eventually, they formulated their new vision – or rather, as they prefer to call it, their ambition (“because that is real language people can understand, not management-speak,” says Andrew):
To be the most rewarding accounting firm in the UK for our clients, our people and our communities.
This is supported by a detailed explanation of what “rewarding” means to them, the 5 values underpinning this statement and a short list of behaviours necessary to realise this “ambition”.
“The question was, how do we make this real?” says Andrew. “We knew that having a fancy statement wouldn’t mean anything unless we walked the walk.”
The key, he says, is to “test everything we do by bringing it back to our ambition, whether that’s pitching for a new client or hiring a new member of staff. If it doesn’t help us become the most rewarding firm, we shouldn’t be doing it.”
The firm encourages staff members to call out behaviour that does not fit in with their new values, and refers to the values at every opportunity – during workshops, in press releases, in training and in Andrew’s weekly blog.
And now we come to the impact – which has been far-reaching.
First, says Andrew, it has helped the firm behave with more consistency, because everyone clearly understands the firm’s goals and expectations.
Second, it has changed the company’s management style – empowering staff.
A few years ago, says Andrew, the company had lots of rules.
“But because our values are now so clear, we don’t have to tell people exactly how to do everything. They can judge for themselves whether their actions support our values and they’ve become more creative and entrepreneurial.”
“People used to be focused on doing their job. But now they see things differently. They’re here to support the firm so that it’s a rewarding place.”
And clients have loved the change, too.
“It gives you something to talk about other than ‘just’ accounts. Prospective clients want to talk about the kind of people we are and having a clear set of values makes it easier for them to decide whether they’ll get on with us.”
The bottom line is that a clear sense of purpose transforms firms – and I’m going to give you a second Kreston example next week, so watch out for that blog post!
January 20, 2020
January 13, 2020
By Liza Robbins.
What makes Apple products so compelling and so popular?
After all, they’re just computers, phones and smartwatches…
Yes, they’re stylish – but there are other companies producing attractive computers and phones and smartwatches.
And yes, they work well – but so does the tech produced by many of their competitors.
There’s one way in which Apple products stand out, though.
When their rivals talk about their products, they tend to describe what they do and how they do it. (“We make great computers, which are very user-friendly and well-designed.”)
But Apple talks about itself differently….
Its messaging focuses on why it creates its products.
Again and again, we hear that Apple always aims to challenge the status quo and – as its slogan puts it – to “Think different”.
That’s the reason its products are so user-friendly and beautifully designed….
…But that’s not really what customers are buying (or what motivates staff).
They’re buying into a vision, an attitude and a mission statement – which is far more inspiring!
As Simon Sinek, whose TED talk on this subject went viral several years ago, says: “People don’t buy what you do, they buy why you do it.”
Read that sentence again, because it’s key!
Every great leader and every great company, he says, starts with a strong sense of “why”, and communicates that both to customers and to employees.
Only afterwards does it get into the relatively dry details of “what” it does and “how”, because while they are important, they are never as emotionally compelling as “why”.
If you have never watched Sinek’s TED talk – which has over 47 million views – you should check it out here.
But before you head over to watch his talk, let’s apply his idea to what we do.
Last week, I gave you a deep, compelling reason why we are auditors: We help society function smoothly by creating trust in businesses, financial institutions and financial transactions.
What about your firm?
Why does your firm exist?
What is the inspiring vision, which clients and staff will want to be part of and buy into…
…And which will make your firm the obvious choice, even if what you do is actually not that different to your competitors?
Finding a good answer is not always easy.
Following Sinek’s process, you should think about the origins of your firm, the defining moments in your history, the most significant moments of impact you have had on your clients, the people who have influenced you, your highs and your lows…
…And try and find connections.
“As the process unfolds, one or two of those nuggets will seem to shine brighter than all the others,” he writes in Find Your Why, the book based on his TED talk.
“They will feel bigger, more important. They will shine so brightly that you’ll point to them and say, ‘That’s me—that’s who I am,’ or ‘That’s us—that’s our team.’”
Finally, you will be able to narrow these themes down to a single statement, summarising how your firm contributes to the life and success of others, and the impact of that contribution.
That vision can revolutionise everything you do.
I mean, who would you rather buy from, and who would you rather work for……
The firm which says it prepares your year-end accounts by reviewing your bookkeeping records?
Or the firm which says it “Empowers CEOs to understand their numbers, so they can grow their business faster and with more confidence” (And one of the ways it does this is by providing excellent year-end accounts)?
And which firm, do you think, will inspire you to come up with better, more innovative ideas about how to serve your clients? Which will have the more engaged, enthusiastic staff?
The one with the clear mission, obviously.
But of course, empowering CEOS is just one of infinite possible “whys” for your firm.
Early in 2020, make it a priority to gather your team together – and find your “why”.
Kreston International had record attendance at its last World Conference in New Delhi held on 27 Nov – 1 Dec 2019, with 155 delegates representing 66 firms and 43 countries.
The conference was heavily focused on business content to help members increase collaboration and win more business together, in line with Kreston’s strategy to deliver greater benefits and greater business opportunities to members.
The feedback was overwhelmingly positive with 92% of delegates indicating they found the conference excellent or very good.
A few key moments from our members were captured during the conference. If you missed these on our social pages, you can watch the videos here.
We are now looking forward to Kreston’s Europe & World Conference to be held on 21 – 24 October 2020 in Madrid, Spain.
January 8, 2020
Kreston is pleased to welcome Mexico based firm, Quezada Fernández to the network.
Quezada Fernández has a strong international profile and extensive experience assisting clients in cross-border trade, especially with the USA, strategically placing their office in Tijuana, Mexico bordering the USA. They are a full-service audit, tax, transfer pricing, and information technology firm.
Elias Quezada, Director at Quezada Fernández said: “I am delighted to begin exploring the international opportunities available to our firm and clients. It gives us great pleasure to represent Kreston in Mexico.”
Liza Robbins, CEO at Kreston International said: “We are delighted to welcome Quezada Fernández to Kreston, enabling us to further develop Kreston’s presence in Mexico benefiting our member firms and clients.”
Quezada Fernández joins five existing member firms in Mexico.
Kreston is pleased to welcome Zimbabwe based firm, MJV Chartered Accountants to the network.
Founded in 2014, MJV Chartered Accountants is a full-service audit and tax firm with additional strength in risk and advisory, assurance, entrepreneurial and consulting. The firm is accredited as a training office by the Institute of Chartered Accountants of Zimbabwe (ICAZ).
Modern Mutumwa, Managing Partner at MJV Chartered Accountants: “MJV continues to grow everyday thanks to the confidence of our clients. We cover many industries such as financial services, manufacturing, commodity broking, real estate, education and local authorities.
“Being a part of the Kreston network demonstrates our appetite for international growth and bringing opportunities to Zimbabwe. We can’t wait to see what the future holds.”
Liza Robbins, CEO at Kreston International said: “MJV Chartered Accountants are an excellent firm that demonstrates their commitment to international business. We are thrilled to welcome them to Kreston.”
Kreston is delighted to welcome Kreston Kairos as a member firm in Tanzania.
Kreston Kairos is a full-service audit and tax firm, with additional strength in transfer pricing, accounting, and information technology.
Commenting on the appointment, Baraka Mbonalibha, Managing Partner said: “Being in an international network is an important part of our strategic growth plan and we look forward to connecting with other members from around the world for our mutual benefit.”
Liza Robbins, CEO of Kreston International said: “We are delighted to have Kreston Kairos join our network and we look forward to a prosperous and ongoing relationship.”
Kreston is delighted to welcome Cyprus based firm, Kreston Ioannou & Theodoulou, to the network.
Founded in the early 1990s, the firm is a fast-growing, top ranked firm in Cyprus with 6 partners and 52 staff operating from offices in Nicosia and Limassol.
The firm has a strong international profile, with more than half of its business focused internationally. The firm has extensive experience assisting clients in cross-border trade, mainly in Europe, Middle East and the US, with staff speaking a multitude of languages (Greek, English, Italian and Russian).
Kreston Ioannou & Theodoulou is an audit, tax and advisory firm, with additional strength in corporate services. The firm has a deep understanding of international business through Cypriot structures, direct and indirect tax advisory and extensive advisory knowledge as well as experience in mergers and acquisitions and financial due diligence. In addition, the firm offers technology advice and tailored solutions including customer engagement, process automation and electronic money transactions.
The firm is represented at the Board of the Cyprus Securities and Exchange Commissions (CySEC); the Institute of Certified Public Accountants of Cyprus Small and Medium Sized Audit Firms Committee and is certified by the ICPAC (Audit Quality and AML Compliance).
The management of Kreston Ioannou & Theodoulou said: “Joining Kreston’s extensive global network is a natural choice, enabling us to access the wealth of experience offered by the members.”
Liza Robbins, CEO at Kreston International said: “We are thrilled to welcome such a strong internationally focussed firm as Kreston Ioannou & Theodoulou to the network and we look forward to their active contribution to Kreston.”
Kreston Ioannou & Theodoulou joins existing member firm Kreston Proios in representing the network in Cyprus.
January 7, 2020
By Liza Robbins.
It’s that time of the year when people are thinking about the passage of time…
Looking back on the year that has just ended, and asking ourselves what worked for us, what made us happy, what has been fulfilling in our lives…
…And looking ahead to 2020 and beyond, planning what we want to do better, what we want to achieve and what changes we want to make.
For many, this will involve spending more time with friends and family, taking on new hobbies we are passionate about and pursuing projects we feel will be worthwhile.
In short, we’ll be looking for ways to add meaning to our lives.
It’s only natural, because most people want to live in a way which is significant and purposeful.
The same is true in business.
Yes, for some people profit will always come first. But most of us care about building a decent society and want the way they earn a living to have a positive impact.
Successive surveys have shown that Millennials choose working for purpose rather than paycheck, but I think that the need for meaning in the workplace cuts across all generations.
So this is a good time to talk about the meaning of our work.
We all know the stereotypes about accountants being dull bean-counters…
But that’s like saying that Michelangelo “just” painted a ceiling.
The truth is that the role we play is essential to civil society.
In fact, it underpins society!
Without good financial systems, society cannot function smoothly, just as it cannot function without a good legal system.
And without the kind of checks-and-balances we provide for the financial system as auditors, accountants and tax advisors, people will not be able to have confidence in society, either.
It’s hard to see how essential that confidence is until things go wrong.
Every Briton remembers the near-collapse of Northern Rock bank in 2008, which heralded the beginning of the financial crisis in the UK.
When people thought that their savings might be at risk, panic broke out, and long lines formed outside every branch, consisting of people desperate to withdraw all their money.
It was the first run on a British bank in 150 years, showing how quickly trust can erode in core financial institutions when people feel they are not being properly run or supervised.
And in every country, people need to trust that businesses and other institutions are having their finances properly monitored and that their financial interactions are above-board, in order to invest, save and spend their own money with confidence.
They couldn’t do this without us, and we should take enormous pride in that.
In fact, we should do our utmost to instil this sense of purpose in our teams, because everyone works better when they are doing work they feel has broader importance.
Giving our staff a compelling reason for why they do what they do will make them far more engaged and motivated.
And when our clients pick up on this, not only will they will they value our work more highly, they will enjoy working with us more.
Over the next few weeks, I’m going to explore more deeply how we can give our companies a deep sense of meaning, and the various ways we can use this to push ourselves, our teams, our clients and our firms forward.