Creating a Strong Firm Culture

Our MP roundtable recently spent a morning with one of the most dynamic and inspiring CPA firm HR directors I’ve met in quite a while – Sarah Baltzell of $30M Peterson Sullivan in Seattle.  I love Sarah’s motto in life: “Do it with PASSION or not at all.”

Whenever I talk to MPs of Top 50 firms, I ask them the key to their success and remarkable profitability. Almost all respond the same way: their culture. But “culture” is very mysterious and elusive. Sarah is a great person to discuss culture, as evidenced by the impressive results from a recently administered employee engagement survey at their firm.

Response categories to the questions were Engaged, Contributing, Disengaged or Hostile. The survey defined “engaged” as highly favorable advocates of the firm who intend to stay and are willing to go above and beyond. An incredible 75% of their 105-person staff self-identified as “engaged,” while 22% responded “contributing.”

Sarah shared with us her recommendations for building a strong firm culture. Peterson Sullivan firm leaders live and breathe these principles every day, but what’s so amazing is that the staff’s perception mirrors that of the partners. How so?

• Staff see opportunities for personal growth.
• The firm’s leaders value its people as their most important resource.
• The firm takes chances that other firms won’t attempt (like value pricing).
• The firm offers a bevy of non-traditional services.

PS formed a “Culture Club.”  It consists of 7 annual rotating members including representation from partners, staff and admin. Their charge is to act on ideas for improving the firm’s culture.

Publish monthly firm newsletter.  Sarah says the secret is getting staff to write pieces for the newsletter, which they have been able to do.  “Use of SharePoint software takes the pressure off,” says Baltzell.

Communicate the vision.  PS works hard to communicate their mission and values to every person in the firm.  But they don’t stop here; management uses these values to drive performance behavior.

CPA Firm Staff:  Managing Your #1 Asset includes major contributions from two experts in the field:  Jennifer Wilson and Jeremy Wortman.  The book addresses ►talent management ►retention ►flexibility ►importance of good bosses ►mentoring ►leadership development ►advancement ►performance feedback, ►recruiting

Mentoring keys.  Mentoring does not come naturally to some people, but it can be taught. Make sure the mentors are trained.

Training.  PS has created a Course Catalog that lists all of their training courses.  Some courses are mandatory; others are elective. Personnel use the manual to guide them in planning their training for the year.

Career Fair.  PS takes mentoring and communication very seriously.  They convene a firmwide, annual Career Fair that educates staff on the firm’s service lines and niche activities, suggests how staff can participate and explains what the firm’s leaders are responsible for.

Work Anywhere, Anytime policy. PS makes sure that the staff’s desire for flexible work schedules are met, that the firm has the right technology for the program, establishes policies and parameters for participation and creates systems for monitoring this initiative.

Performance reviews. Sarah told the group that PS has not yet abandoned traditional staff reviews. Key issues being examined are: (a) whether the firm can create a continuous performance management program to replace traditional reviews and (b) continuing upward evaluations and getting both partners and staff to hold them in high regard.

Star Card.  Recognizes people for doing things that embrace PS’s core values.

Onboarding. The process takes a year, not a few hours in the new person’s first week.

Merger tip.  PS focuses on merging the seller’s people first, then the processes.