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26Group Home » Blogs » Best Practice » [TA41] See where your firm sits between compliance and VAS with this Simple Tool

[TA41] See where your firm sits between compliance and VAS with this Simple Tool

July 17, 2014 By Andrew Robertson

TA 41This week I have included a tool to help you diagnose where your firm sits between Compliance & VAS Delivery. It’s useful for firms at all stages of the transition.

First, we begin with a side-by-side comparison the two models, which clearly highlights the differences and lays out the benefits.

Comparison of Compliance and VAS Delivery

This side by side clearly highlights differences between the two models:

  COMPLIANCE MODEL VAS DELIVERY MODEL
Pricing Strategy Time based Price set by Value delivered to Client
Product Strategy Menu of Services based on past jobs Packages and Products
Value communicated to Client by… Justifying time spent Delivering value to client based on outcomes & results
Benefits communicated to Client Tax savings, compliance with regulations Wealth, abundance and flexibility
Time Focus Past Numbers Future goals and solutions
Delivery Do and charge or Charge and do Packages and products delivered as per System and Processors related to packages and products
Partner Roles Manager of teams Client & practice strategist
Partner Experience
  • No time to strategise
  • Dat-to-day Client work
  • Limited time to mentor
Delivering results for clients on value add work only 40-50%Firm strategy & mentoring team 50-60%
Team Roles GeneralistsAccountants spending too much time as processors or glorified bookkeepers Specific designed functions that match packages and productsReviewers, analysts, and solution providersBookkeepers and Outsourcing employed to process
Team Experience Predictable low level job responsibilities, limited room for professional development & high need to justify time spent on billable hours Efficient job management, clear role responsibilities & greater scope for professional development as opportunity seekers for the firm
Benefits
  • Comfortable, traditional model
  • Wages are paid by billing for time
  • Some cash profit
  • Unlock great profits through higher billed services
  • More rewarding experience for Team & Partners
  • Attracts higher level client work

Where does your firm sit?

The gap between each model is a sliding scale. Pinpointing where your firms sits on the scale highlights the areas requiring attention to increase the rate of growth.

This tool works works for firms across the industry, from those who are traditional compliance based firms who have not yet begun the restructure, to those who are midway and looking for the next area to refine, right through to those who have already completed several cycles of evolution.

Now rank your firm’s current position on the scale between Compliance and VAS Delivery

Compliance Model Scale VAS Delivery Model
Pricing Strategy Time based 1 2 3 4 5 Value and maket based
Product Strategy List of Services 1 2 3 4 5 Packages and Products
Value communicated to Client by… Hourly billing 1 2 3 4 5 Package and product prices
Benefits communicated to Client Savings 1 2 3 4 5 Wealth and flexibility
Time Focus Past Numbers 1 2 3 4 5 Future goals and solutions
Delivery  Do and charge 1 2 3 4 5 System, Processors and Tools
Partner Roles Team and client Manager 1 2 3 4 5 Strategist and Mentor
Partner Experience
  • Busy
  • Tied down
  • Pushed
1 2 3 4 5
  • Challenged,
  • Engaged and
  • Driven
Team Roles GeneralistProcessors 1 2 3 4 5 Reviewers, analysts, and solution providers
Team Experience Preditable low level job responsibilities, limited room for professional development and high need to justify time spent on billable hours 1 2 3 4 5 Efficient job management, clear role responsibilities & greater scope for professional development as opportunity seekers for the firm
Benefits
  • Comfortable, traditional model
  • Wages are paid by billing for time
  • Some cash profit
1 2 3 4 5
  • Unlock great profits through higher billed services
  • More rewarding experience for Team & Partners
  • Attracts higher level client work

I now use a very similar tool in my Practice Accelerator diagnostic process. But I know from past experience in practice how hard it can be to rate the firm objectively, especially when requiring  delicate conversation with Team members about their job satisfaction.

This tool can enable a quick check in for individual partners. If you’d like help conducting a full survey, you can book yourself a chat with me.

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If you want to know more about how I can help you implement this strategy, or an entire growth plan in your firm, just use this link to view my diary, share your challenges and book yourself in for an obligation-free chat with an Accounting mentor.

About Andrew Robertson

After managing my own practice to become a proactive business services firm, I sold my share to pursue my calling of being a business advisor. Nowadays I coach other accountancy firms to improve profitability, strategic direction, internal efficiencies and morale.

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