Whether it is relationships or our physical world around us, change has become the natural order. Day becomes night, winter becomes spring, memory cards replace photographic film, IPods have replaced CD players, and now my better half is looking at an electronic book reader to replace her paperbacks.

 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.”

We’ve been through one of the most difficult economic times in our country’s history—and some say that there is a glimmer of light at the end of the tunnel. Most agree we have a way to go. A valuable characteristic of managing in hard times is true, effective leadership. With more down time or slow time than usual, leaders’ roles change drastically compared to when business is booming. Leaders today have to make difficult decisions—decisions that may be uncomfortable, controversial, or even include a drastic change in not only people, but processes, in order to operate more effectively and as efficient as possible.

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.

Although  the world is getting smaller, there are obstacles to overcome if a global corporation is to achieve their desired results. One of the major obstacles is the integration of different cultures. Today, major U.S. corporations obtain more than one-half of their earnings overseas. So, it is critical for the corporation to have people in each country sharing the corporate vision and thinking/acting on the same page.   

Corporations use a variety of training programs to cope with this particular issue. I, myself was in St. Charles, Illinois for two weeks when I first joined Arthur Andersen. It was in this corporate campus setting, that I learned audit skills with other new employees.

Recently, I have come across the Global Leadership Transformation Development Program. This is a four-week program and is currently being used by a major U.S. corporation. Morris & Gunter Associates, LLC runs this program.

Managers and directors from each location get together (25 people) and spend time together in China, U.S., Japan and another countries. Participants are given projects to solve current issues of corporations, meeting with the CEOs of the corporations, and are encouraged to initiate changes at their organizations.

The facilitator of the training program makes sure that the participants get to work with managers from other countries using English as a common language to formulate the group’s conclusion. Often there is a heated discussion and discovery of self as well as others in these different cultures.

At the end of the four week program, each participant presents what he or she learned from the program. During the four weeks, participants form a bond and make connections that will last a long time after they return to their home countries. Managers then have a common understanding of the corporate vision and mission and the company enjoys a global corporate culture and harmony in their local operating environment.

I believe that this concept of the Global Leadership Transformation Program is a wonderful idea for corporations. Even if your company is small, I think that there are many lessons that we can learn from this training.

 Koh Fujimoto, Principal in Charge, International Practice

kfujimoto@cdhcpa.com

By Jeff Hays, Director of IT

Having worked in the IT industry and having the responsibility to work hand-in-hand with a variety of vendors and service providers has provided me with some insight when reviewing contracts or service agreements. I’d like to share a few points which are commonly overlooked. These points do have the potential to maximize a company’s long term IT investments.

Know the contract start and end dates.  Quite often, we don’t have any idea of what will happen as we approach the end of a contract. I would suggest asking yourself the following questions when reviewing your contracts: 

• Will your service provider continue to bill you at the same rate once the contract has matured?
•  Is there any potential for a service disruption causing loss of employee productivity?
• Do we need to provide advanced notice that the contract is not to be renewed?
• Will this contract be auto-renewed? 

Auto-renewals are become standard in contract terms these days. In my experiences, this is not a positive contract term for the customer. When a contract has auto-renewed you lose the ability to shop for a better deal.  At the rate that technology advances, this could prevent a company from being able to leveraging up to date technology for services such as your Internet connection and telephone services.  It also prevents a company from having an opportunity to reduce fees for such services since they will keep the same rate for the service which may have a reduced market value. Telephone and Internet services are traditionally competitive markets and one can almost always find a better deal two or three years from the time the original contract was signed. When renewing a contract, it is one of the few times to obtain leverage over a vendor. 

What happens when a contract is in need of early termination? Often there is an additional fee that will be charged in place of or in addition to the remaining value of the contract. When working with a tier 2 or tier 3 telephone or Internet service provider, you should be aware that they are, in fact, leasing a circuit from a tier 1 provider such as AT&T. To terminate a contract early means tier 2 or 3 providers would incur charges from the tier 1 provider, which they will assuredly attempt to pass along to the customer. 

I’ll leave you with one last point. Remember that each contract is an agreement between two parties.  Don’t be afraid to ask for certain terms or to have terms such as auto-renewal removed from the contract. Ultimately, a little time spent up front can reduce IT investment fees by minimizing or understanding hidden fees, provide an opportunity to renegotiate fees at the end of a contract or even help minimize the loss of productivity.

Greater O’Hare Association’s Commercial Real Estate and Construction Industry Breakfast

The Greater O’Hare Association of Industry and Commerce would like to extend an invitation to you to attend its upcoming Commercial Real Estate and Construction Industry Breakfast.  The event will be held on Wednesday, February 24^th at Belvedere Banquets in Elk Grove Village.

Event Agenda

7:15 AM to 8:00 AM            Registration and Networking

8:00 AM to 8:30 AM            Breakfast and Table Discussions

8:30 AM to 9:00 AM            Panel Discussion and Q&A

Panel Discussion Topic and Panelists

Success in the real estate and construction industry requires a long-term mindset and patience. While transactions today are important, collaborative, high performance relationships going forward will yield long-term profitability for all involved. The panel will discuss the importance and the efficiencies of relationships early in the process in order to be successful.

Jim Laubinger, Principal in Charge of Entrepreneurial Services and Construction Practice, Corbett, Duncan & Hubly PC

John D. Parsinen, Jr., Group Senior Vice President, Real Estate Banking Group, and Nathan A. Bronski, Senior Vice President—Commercial Banking, Cole Taylor Bank

J. Stephen Pohl, Executive Vice President, DS&P Insurance Services, Inc.

Be one of the first 30 to register and you will be entered into a drawing for a $50 Home Depot gift certificate.

Hope to see you on the 24^th!

The cost is $20 per person and includes a hot buffet breakfast.  Registrations will be limited to no more than two representatives from each major industry or subtrade (two bankers, two electricians, two architects, etc.).  We want your networking environment to be full of opportunities not competitors.  Be sure to register early in order to secure your seat at a table.

You can register by going to www.greaterohare.com and clicking on the “Calendar” link under the “Events” tab, or by calling (630) 773-2944.

If you know someone who might be interested in attending this event, please forward this e-mail or ask them to call Lori Myrmel GOA’s Program Director at (630) 773-2944.

Think back. Can you remember the details of your first job? I can, like it was yesterday. Actually, I remember the first couple of weeks. You see, it was two weeks before I was to go for my driver’s license, therefore, I had the embarrassing situation of having my parents drop off and pick me up from work. It was then that I realized that I had to take my first paycheck and my puny savings to buy transportation.

I learned two lessons in these first two weeks—honesty and integrity—two hard to find at times, yet admirable values in today’s business climate. Now back to the story. So I made it through the first two weeks of embarrassment as my coworkers left the men’s wear store and I quickly ducked into my parent’s Camaro. At least the Camaro was cool. I passed my driver’s test and then was ready for my own wheels. My paycheck was due in a few days when one of my co-workers, who knew I was looking for basic transportation, said he had a VW bug for sale and might I be interested? He wanted only $200, which I could afford after my paycheck arrived, and asked me if I wanted to take it for a test ride. I jumped at the opportunity. What he didn’t tell me was it was a manual transmission.

Lesson 1—I shouldn’t have told him that I knew how to drive a stick shift.

My first paycheck arrived. I was so excited, even though it was going right to buying that VW that I would have to learn how to drive. I did the basic hours to hourly rate calculation, and they overpaid me by $20.00. It doesn’t seem like much, but at that hourly rate, it was about 20%.

Lesson 2—Remember, sometimes mistakes are intentional.

We all remember our leaders and veteran workers who we looked up to. We hoped we could develop into leaders just like them. As current leaders in your company, division, department or anywhere in the workplace, remember you have responsibility, and an opportunity to help others develop. Do not take it lightly.

Often we concentrate on our prospects as the main focus for generating new business—turning prospects into clients. I’m not suggesting that this should not be a priority. It is always a good thing to have a full “pipeline” of prospects to move through your sales process. A second source of new business can come from referrals from other professionals. This is a great way to obtain warm leads from those that trust you and know your business profile, and you get an introduction to a prospective client.

The prospects that we tend to forget about are right under our noses—our clients. We do the work, we provide good service, we meet deadlines…what we tend to forget is that our clients are a great source of referrals; they just won’t always be handed to us on a silver platter.

We need to know how we are doing with our clients and we need to have meetings and conversations with them outside of our client engagements. We need to ask them how things are going. Set up breakfast or lunch meetings with your best clients and review the client’s latest financials before the meeting. Begin by thanking them for their business and then ask, in effect, “So, how’s the business doing?” This opens up the discussion and raises questions that enable you to make suggestions about possible courses of action. It is important not to move into business development mood; keep it completely conversational and be sure to pick up the tab.

Let your clients know that you like to solve problems and help other firms with similar challenges. Ask questions, express a genuine interest in the client and make them feel appreciated, offer some casual advice and pick up the tab. You’ll be amazed at the results.

IFSR Seminar (Note New Date)

IFRSseminar-V4-loRes

Dates: Tuesday, January 12, 2010

Time: 3:00 p.m. to 4:30 p.m. , (refreshments 4:30-5:30)
Location: Clock Tower Resort and Conference Center—7801 East State St., Rockford, IL 61108
Admission: $75.00 (2 for $125.00)

It’s Time For IFRS – Let’s Get Ready Together!

• To date, over 113 countries around the World currently require or permit IFRS reporting.
• AICPA voted to recognize IFRS as designated accounting standards together with US GAAP.

Topics to be Covered:

• Fundamental concepts of IFRS
• Key differences between US GAAP and IFRS
• First time adoption
• Financial statements format
• Key impact to your organization
• Impact on IT
• Operational impact
• Financing impact

Who Will Benefit:

• CEO
• IT Director
• Controller
• Treasurer
• Operations Manager, etc.

Space is limited. Reserve Today!

Call Tom Ogden, Director of Marketing & Business Development, at 630.285.0215

The unfortunate thing is….we often times try so hard to look for new clients and tend to forget that the source of our current success (existing client base) is a wealth of opportunity. Retaining clients and serving them well includes charging a resonable fee for services rendered, doing professional work, being timely, and maintaining the appropriate level of communication, which is often the hardest of the four. Communication above and beyond the engagement is not only a challenge because you are so busy, but also difficult because you don’t always know what is appropriate. What do you do? How much is enough? How much is too much? When can you make the time?  Here are some ideas to get you going:

• Lunch–for most of us, no matter how busy we are, we take time to eat. Look at your client list, contacts and other professionals and schedule your “A” level contacts to join you. Use your own judgement, but make it regular, possibly quarterly for your best clients and contacts. Not so frequent for others, but meet with them too in order to learn more about their business and uncover areas where you may assist them. Lunches and breakfast meetings can be the best way to show your clients that they are important to you and that you are interested and have time to continuously learn their business.
• Events–have a great client that loves golf, baseball, theater? Invite a client to join you. You will deepen the relationship and have fun too. Are they celebrating a milestone in their business? Send them something that is aligned with their business or personal interests.
• Tax Planning–waiting until tax time is not enough today. Clients want proactive consultation regarding their business and tax strategy planning throughout the year, giving them confidence that you are doing all you can to maximize their position in regard to tax issues.
• Personal Notes–send articles, thank you cards, etc., with a hand written note, not a form letter with a scanned signature. And be quick about it. Same day, if possible. When the client receives it the next day after seeing you, they will know how important they are to you.

Bottom line is always exceed expectations. We have incredible technology in place that enables us to respond quickly, professionally, in our office or in remote locations. When we engage with our clients on a regular basis the client relationship is strengthened. The results are a more open, honest relationship that often leads to referrals, our best and most reliable source of new business.

IFCR Seminar

Dates: Tuesday, December 8, 2009
Time: 3:00 p.m. to 4:30 p.m. , (refreshments 4:30-5:30)
Location: Clock Tower Resort and Conference Center—7801 East State St., Rockford, IL 61108
Admission: $75.00 (2 for $125.00)

It’s Time For IFRS – Let’s Get Ready Together!

• To date, over 113 countries around the World currently require or permit IFRS reporting.
• AICPA voted to recognize IFRS as designated accounting standards together with US GAAP.

Topics to be Covered:

• Fundamental concepts of IFRS
• Key differences between US GAAP and IFRS
• First time adoption
• Financial statements format
• Key impact to your organization
• Impact on IT
• Operational impact
• Financing impact

Who Will Benefit:

• CEO
• IT Director
• Controller
• Treasurer
• Operations Manager, etc.

Space is limited. Reserve Today!

Call Tom Ogden, Director of Marketing & Business Development, at 630.285.0215

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