If you develop the right initiatives and execute them well, you will reach your goals unless they are unrealistic. Here are things to consider when setting goals as well as strategies for achieving them:

• Classify last year’s revenues as either recurring or one-time projects. Then determine what you want to achieve in the next year, giving consideration to obtaining necessary staff and other resources, strategies for bringing in new business, how much can be achieved through cross-selling, how many clients will likely be lost, and how much business is available in markets you serve. Goals should be detailed by components for each niche.
• Even a 10 percent growth plan can be a challenge when you consider the difficulty of replacing all the one-time project work in addition to obtaining new annuity clients
• Know your strengths and weaknesses, and identify who you are.
• Find out what your growth has been relative to the profession.
• Most firms stall at $5 million to $10 million in revenues because the planning process needs to change beyond that level.
• One firm, having failed to achieve its goals, decided to do some benchmarking to help guide it. It helped to learn that the most successful firms achieved $1 million in revenue per partner and brought 40 percent (before partner compensation) to the bottom line.
• The goal-setting process will be helped by getting input through interviews with partners, staff at all levels, and key clients.
• Key to achieving goals is focusing on current clients, finding the best referral sources, and finding prospects that are not getting the services they need.
• Each partner and key staff member should prepare an individual plan that supports the firm plan.
• Setting too many goals is a formula for failure to meet any of them.
• Workload can easily distract from achieving goals. One solution is for the managing partner to drive the strategic plan, conducting frequent departmental retreats including discussions on dealing with the workload, and making appropriate modifications to the strategic plan.
• Regularly measure key performance indicators such as utilization, revenue per partner, etc.
• Consider merger as a method of achieving part of your growth goals. Internal growth at too high a rate may negatively affect the quality of client service.
• Prepare a monthly report comparing chargeable hours per person with the plan.

From Practical Accountant, February 2006, 800-221-1809. For the complete article, click on the following link: http://www.webcpa.com/article.cfm?articleid=18725&;pg=pracacc.