Does Your Business Model Support Your Mission?

Source: CPA Success

In this video interview, conducted at the Verasage Summit, Kurt Siemers, CEO of Salina, Kan.-based Kennedy and Coe, discusses his firm's implementation of value pricing and its impact on young professionals. Siemers says he has always struggled with the traditional CPA firm business model, which is driven by an “hourly billing mentality.” He finds it difficult to get the traditional model to jive with his firm's mission, which focuses on creating value for clients and improving the well being of its employees.

A model driven by value creation, Siemers explains, better aligns how the firm does things with what the firm is trying to do. It encourages professionals to focus on “Where's the value?” and “Where can we make a difference?” By allowing professionals to take the time to understand a client's needs, this model fosters creativity and produces results for clients. That, in turn, helps get professionals more “engaged,” especially younger ones who haven't yet adopted the “old business paradigms” and who tend to embrace the concepts of value creation and value pricing quickly.

Siemers recognizes that shifting to a new business model can be a major undertaking, especially for a large firm. But he encourages firm leaders who are struggling with the current model to be open to new ideas that can help them make a difference and create better results for their clients.

For the full blog post and video, see “Are you creating value or selling time?”

From CPA Success, the blog of the Maryland Association of CPAs, http://www.cpasuccess.com, May 24, 2011.