Strategic Planning: What Top Firms Do Differently

I love to study success. That’s why I couldn’t help researching what the best firms in our strategic planning poll did to get excellent results. We had 64 respondents to our poll. I narrowed down the list to firms that scored 8 or more (out of 10) in overall effectiveness in strategic planning and  4 or more (out of 5) in accountability, since accountability was highly correlated with strategic planning success. I wanted to understand how they got great results in both areas. That narrowed the list to 16 firms (25% of all the firms).

After reviewing their responses from the poll and also interviewing several of the firms for more information, these are the things that these firms are doing differently:

(1) Provide Strong Leadership

• While the composition and size of the leadership team that drives strategic planning differs at top firms, the roles of how those people each contribute are made clear. This creates empowerment and avoids toes getting stepped on.
• Compensation at both the owner and even the employee level is tied in meaningful amounts to the accomplishment of the strategic plan. Enough compensation is “at risk” to draw attention and elicit best efforts.
• The tone at the top prioritizes both doing strategic planning as part of the firm’s ongoing process and also getting results. As one successful managing partner said, “If we write it down as a goal in our strategic plan, I expect that people will get it done.”

(2) Have a Planning System

• Top firms have a system that guides their performance management during their planning and execution process throughout the year. Common systems mentioned were the Entrepreneurial Operating System (EOS), a CPA industry-specific system, or a homegrown system. In any case, planning and execution is not left to chance but managed through a repeatable process.
• Commonalities of top systems:
  • Strategic planning is almost always done annually.
  • The system addresses typical components of strategic planning (e.g. vision, values, opportunities, goal setting, etc., and also defines a system of follow-up throughout the year.
  • Data is used to track progress throughout the year.
  • Goals—and the individuals responsible for those strategic goals—are clearly identified.
  • Focus— is created, which allows the few things that really matter to the firm to emerge.
• While top firms use well-defined systems, they also noted that their process was open to evolving over time as the firm gets better at it, rolls it out deeper into the organization or needs to make changes.

We can help you navigate your strategic planning challenges using our proprietary strategic planning framework to meet your needs, including:

Partner accountability • Staffing • How to achieve greater growth • Change management • Partner conflict • Core values and mission statement • Succession planning • And more

Let’s talk! Contact us to schedule a call.

(3) Seek Out a Skilled Facilitator

• Many of the best firms utilized an expert facilitator for their annual planning and ongoing accountability process.
• An outside facilitator supports the firm’s process, navigates difficult conversations and checks in throughout the year to help people stay accountable and get more done.

(4) Insist on Ongoing Accountability

• The most successful firms scored high in accountability. It was no surprise then to find that their accountability processes spanned the full year to support their strategic plan.
• Their strategic plans resulted in measurable goals with timelines. These were then evaluated throughout the year often (e.g., weekly to monthly) to determine if the goals were on—or off—track.
• Goals supporting the strategic plan were cascaded down into the organization. Some leaders noted that goals started with a core leadership group, and over a series of years the firm gave goals to increasingly more layers of staff. This results in buy-in, accountability and more hands doing the work of the strategic plan initiatives.

The Result: A Firm That Gets Things Done

After putting all the pieces in place, top firms noted that they became able to “get stuff done” at a strategic level. This creates confidence and optimism as the leaders and staff see that they can create their own future.

Next Steps

If this list looks like things your firm is already doing—congratulations! If you see opportunities to improve or even if you feel overwhelmed, consider our 5i process for strategic planning at CPA firms. This proven system meets all of the requirements above so your firm can become a top performer and reach your most important goals.

Whatever road you choose, stay flexible and keep going! Strategic planning is a long-term process, but a worthwhile journey.