Leadership Lessons: A Case Study

Source: Journal of Accountancy

San Francisco-based Eichstaedt & Devereaux believes it has discovered the formula for improving employee retention and profitability: Instead of "top-down" approach to firm management, it employs a "grass-roots employee involvement program to engage employees in the firm's business."

Here are some strategies the firm uses in its employee involvement program:

• Based on informal employee feedback, the firm identified areas to focus on, such as recruiting, mentoring, training, and communication.
• The firm implements initiatives through small "pods," or task forces, designed to delegate authority and encourage collaboration by getting more people involved in the decision-making process.
• The firm gathers employee feedback to develop a better understanding of their challenges and goals.
• The firm promotes employee participation by empowering employees to take larger roles in shaping the firm's culture.
• Each "pod" monitors progress and reports the results to the firm. This process has increased firm management's awareness of generational differences.
• The firm recognizes and rewards employee involvement.

In the three years since Eichstaedt started its program, employee-driven teams have drafted a mission statement and created formal recruiting, mentoring, training, and employee recognition programs. The firm has experienced improved collaboration and accountability at all levels, and feedback from employees indicates that they appreciate the leadership development opportunities.

For the complete article, click here and read "Employee Involvement: A New Blueprint for Success."

From Journal of Accountancy, American Institute of Certified Public Accountants, May 2010, http://www.journalofaccountancy.com/Issues/2010/May.