CPA Firm Core Value Statements

What are core values?

Core Value statements can be very powerful for CPA firms.  MPs of large, successful firms tell me the #1 reason for their exceptional performance is the partners’ commitment to the firm’s core values.

Why does adopting a set of core values play such an integral role in a firm’s success?

• They define a firm’s culture by listing its rules of behavior.
• The values are used to help people make tough decisions.
• They are what we stand for, what we hold dear, what we believe in.
• Transgressions of core values are never tolerated or ignored.

I have been known to be skeptical of core value statements for two reasons:

1.     Look at the last dot point above.  One of the most honest answers I have ever received from a partner interview was this:  In answer to the question “why don’t you make an effort to bring in business,” his response was “no one else does.”  If violations of core values are tolerated, no one else will commit to them.  This is Human Behavior 101.  My experience is that 90% of firms under $10M routinely allow transgressions of what they believe are their core values.

2.     A lot of firms put together core value statements because they read a book or heard a speaker tell them it’s important.  Many of these statements take the form of an acronym.  Example:  TIP.  Trust.  Integrity.  Professionalism.  These acronyms are seen by many as “apple pie and motherhood” characteristics that all firms would say personifies them.  So these ideals are almost never taken seriously and are rarely inspiring.

I recently came across a set of core values that took my breath away.  These statements are from Denver-based RAS & Associates, a management consulting firm.  RAS’s core value statement consisted of three short sentences.  These aren’t for everyone, but they impressed me because this firm knows what it wants.  The three statements are in bold, with my own interpretations next to them:

• We want to win. We’re competitive.  We like to make lots of money not because we’re greedy, but because profitability is our report card and we want an “A.”  We’re focused on being successful.  Peer pressure works at our firm because no one wants to be the person whose costly error loses the game for us.
• We work hard and play smart.  This firm has a strong work ethic. Those that don’t work hard don’t last long. They invest in infrastructure, training, mentoring and leading edge technology so that their time is spent efficiently.
• We make our own opportunities. Every one of our partners gets up in the morning, looks at him/herself in the mirror and says out loud:   “I need to personally do something today to drive the firm’s growth and profitability because no one else is going to do it for me.”  Every partner in this firm works hard to bring in business because it avoids a mentality of relying on others to bring it in for them.

I could probably write several paragraphs interpreting the three statements above.  My interpretations aren’t the only ones and probably aren’t the best ones.   When YOU read these statements, what do they mean to YOU?  Please take a few moments to type something out and hit the reply button.

For a sheet containing some of my favorite all time core value statements, click on
CPA Firm Core Values.