First impressions are formed in the first few seconds in a face-to-face meeting. All of us can get into bad habits, or just become plain lazy. Here are a few reminders that may help us differentiate ourselves in prospect meetings.

Most of us have heard that dressing appropriately and being well groomed is important in many business situations, but recent studies have shown that it means much more than that—it means the difference between sealing the deal or not differentiating yourself enough to make a difference.

For males, there are four basic levels of dress: Casual—jeans, casual shoes and shirt; Business Casual—Dockers/slacks, nice shoes and nice shirt; Enhanced Business Casual—same as Business Casual, but with a tie and/or sport coat; and Formal—suit and tie. Ladies follow similar levels, with Formal being a professional business suit or dress possibly with jacket, etc. Ladies have many more potential combinations, but it is safe to say that in most prospect or client meetings, Formal is the best choice.

The basic rule is to be at the prospect’s level or one above. They are making a decision, a very important and personal decision and they want to choose a winner, a professional, and expect no less than that in the services you will be providing.

It is also important to be cognizant of your posture. This gives a first impression too. Good posture has been validated by extensive research to identify you as someone who is credible, with something to say that is worth hearing. If you are asked to be seated, sit straight in the waiting room or lobby, face the door where you think your prospect will appear and avoid any appearance of slouching or excessive casualness. When you arise, stand straight and look directly into the prospect’s eyes for at least three seconds, no more than about five.

Research has found that these few elements are vital when a first impression is being formed.

Most of your competitors, no matter what the industry, but especially in professional services, can competently discuss their services and most prospects believe that they are all competent. No matter how well you discuss your firm and its services and the cost, you have done nothing to differentiate yourself.

There is only one way to accomplish this—by learning their motivations, wants, and needs. You need to ask the overview question, which will, in your own words ask where they are and where they are going. You want to know their wants so you can illustrate and make a personal connection. This will allow you to individualize your services and easily differentiate you from the competition.

1. Establishing a system of group-based profitability analysis. This system must be directly connected to the current market conditions.
2. Developing leaders of each group by giving opportunities to treat his/her group as an independent company. It is a superb tool to develop future leaders.
3. Ensure that every member of the organization pays attention to improve the profitability of his/her unit.  It fosters a strong sense of teamwork.

Typically, a manufacturing department pays attention to how to minimize their cost structures. However, they do not often think about how to maximize sales. On the other hand, the sales department usually tries hard to maximize sales, but tends to neglect minimizing expenses. Under the Amoeba, each unit pays attention to both aspects of business, i.e., maximizing revenues and minimizing expenses. Under the Amoeba, the manufacturing section records sales to the sales department. The sales department buys inventory from the manufacturing section and sells them to the market.

The concept appears very cumbersome. However, the essence of Amoeba is to give a sense of contribution margin (unit profit) to each unit. Each unit makes efforts to maximize the contribution. When all of the P/L of each unit is presented, the top management can clearly see where the issue is. As you can tell, Amoeba is a massive amount of data and a massive consolidation process. When each small unit pays keen attention to its expenses as well as sales, this will lead to a significant company-wide profit maximization.

When a company fully adopts Amoeba Management, it should enjoy over 10% of operating margin.  In addition, the company should enjoy far greater profit margin than its competitors.

Koh Fujimoto, Principal in Charge, International Practice
kfujimoto@cdhcpa.com

Maister goes on to say that as a leader, speaker, or other influencer—your views and values (passion, people, and principles) resonate with others, and that is when you have synergy and begin building a team or a following, as it were.

The lesson here is simple—be true to your values. Others with like values will be with you and you can accomplish great things.

Corbett, Duncan & Hubly agrees with Maister’s philosophy regarding passion, people and principles, and they know that great things can result. CDH was just named One of the Best Workplaces in Illinois.

Proof that your energy is better spent with similarly-minded people.

A regular profit and loss statement is often difficult for non-accountants to comprehend. Therefore, the Amoeba-based profit and loss statement is more simplified and is built to present added profitability per hour of each Amoeba.  I call this Ameba P/L. Dr. Inamori, who invented and executed Amoeba Management believed that the essence of management is to maximize revenues and minimize expenses. Dr. Inamori exemplified this essence (he often calls this his management philosophy) in Amoeba P/L.

By using Amoeba P/L, each Amoeba’s profitability (or added value to the entire organization) is easily captured. A leader of each Amoeba can identify specific expenses to improve his/her Amoeba’s contribution to the entire organization. Since Amoeba P/L is so easy to comprehend, all the Amoeba members can understand the profitability of his/her group. This means that each member of an Amoeba can participate in the management of his/her Amoeba.

to be continued…

Koh Fujimoto, Principal in Charge, International Practice
kfujimoto@cdhcpa.com

The health care reform package does not mandate employer-paid coverage, but instead includes “play or pay” language. The package also imposes a penalty on nonexempt individuals who fail to carry minimum essential coverage. On the revenue side, the health care package includes an additional Medicare tax on wages and self-employment income of higher income taxpayers, a new Medicare contribution tax on net investment income, and a delayed excise tax on high-dollar insurance plans, among its $437 billion in new taxes, fees and penalties.

To read the entire special report http://tax.cchgroup.com/legislation/Senate-Healthcare-Fixes-Bill-03-25-10.pdf

President Obama signed his first major tax bill of 2010 on March 18. The new law provides incentives for hiring and retaining workers, along with a one-year extension of expensing and changes to Build America Bonds. The HIRE Act is partially offset by a package of new foreign account tax compliance rules and a further delay in the worldwide interest allocation rules. In addition, certain corporate estimated tax payments are also accelerated to help offset the cost of the tax incentives.

The HIRE Act creates an immediate incentive for businesses to hire unemployed individuals and an increased benefit the longer the new worker is on the payroll. Small businesses get an immediate tax benefit too, from the extension of and expensing extension.

Congress hopes that the HIRE Act’s enhanced tax credit bonds will help pump over $4.5 billion into local economies. For the complete special report, http://tax.cchgroup.com/legislation/Hire-Act-Signed.pdf.

The amoeba is one of the simplest forms of living creatures. Its shape is constantly changing as it moves along.

The purposes of Amoeba Management Accounting are threefold;

1. Create section based financial statements through which the management can touch and feel the market.
2. Develop true leaders for each amoeba unit (i.e. small section) of the company.
3. Ensure that everyone gets involved to achieve the organization’s success.

Stay tuned for additional posts that further explain the details of the Amoeba Management Accounting process and whether it fits you and your organization.

Koh Fujimoto, Principal in Charge, International Practice
kfujimoto@cdhcpa.com

 In the professional services world, like our CPA firm, the closest relationships bring about the largest amount of business for us. Therefore, we do our best to deepen our relationships—for our personal as well as business reasons.

 Many of us say that we accept that everything is constantly changing, yet many of us refuse to accept that premise in an incredibly crucial area of our lives—our attitudes about ourselves and our lives. Often we hear or say to ourselves, “I know I could get so much more accomplished if I could only get more organized and stay focused on one thing at a time…but, I’ll never get organized, that’s just the way I am.”

 The fact is we can change our habits, and we can change our outlook, which is what has to happen first. We need to believe that as everything changes, so can you. If we continue to say or think “that’s just the way I am,” then an artificial barrier keeps you from accomplishing what you ultimately would like to accomplish.

 Physical strength will not knock down the barrier. It will take a shift in your attitude; a shift in your way of thinking; and most importantly, a shift in your beliefs. A shift from “It’s just the way I am” to “Everything changes…and so can I.”

A leader today has to be more assertive, more direct, and have a reduced opportunity for delegation. Today’s effective leaders are not just seen at the top, but instead, at all levels of the company. Therefore, successful leaders assert different skills, particularly in challenging times. Here are a few suggestions.

Honesty

Must be open and honest at all levels and involve all employees in activities that lead to ownership and problem-solving activities. Communication needs to be elevated, showing knowledge of the industry and current events, and leveraging talent within your organization.

Day-to-Day Presence

Although it is important to continue at a high level strategically, an understanding of the current times at all levels in an organization is of great value. Continue to look at ways to improve and streamline processes and gain insight from all levels.

Optimism

Be realistic about problem-solving and do not focus on problems—instead, solutions and reward smart solutions and team members that are involved. Don’t be overly pessimistic or optimistic. Do not give a false sense of security or one of insecurity in a slow down.

Make Smart Decisions

Leaders need to make tough personnel decisions, particularly during difficult times. Be sure that changes are based upon performance and an overall contribution to the company. Develop and implement improved performance guidelines and measurement tools for evaluations, both ongoing and periodic reviews. You may be able to replace low performers with outside talent who are currently in an uncertain situation or have been laid off.

Future Watch

The economy will turn around at some point. What can you do now to position yourself for the rebound?  This is the time to enhance processes, evaluate gaps, and learn new techniques.

Do these things now and reap benefits in the long run. However, you must be willing to change.