Ignoring regulatory distractions and focusing on business procedures is key for advice practices to maintain a growth mindset, according to AFSL consultancy Tangelo Advice Consulting.
Speaking at the SMSF Association National Conference in Brisbane, Tangelo director and principal consultant Conrad Travers said having a growth mindset for advice and accounting practices requires not getting “lost in the weeds”.
“We know there’s a lot of regulatory change in the industry, but the practices that perform the best say I accept that, and I’m going to focus on my business and how I can get better around what I need to do for my clients,” Travers said.
“They don’t get lost in a blame game around what’s going [on] outside, external to that.”
Travers said the top-performing practices are documenting their processes to enhance and reduce the time it takes to conduct those procedures.
“They’re trying to enhance and improve the time it takes to do those processes through smarter use of technology, but also roles and responsibilities within their firm [are] being really clear on who’s doing what and why and having that really line up to their CVP [client value proposition],” Travers said.
Along with processes, Travers noted the importance of making sure the right people are placed in the right roles, particularly at the senior level.
“One of the key things there is that we find sometimes with practicing accountants who are also CEOs or financial planners who are operating as CEOs, they’re often doing both jobs not well,” Travers said.
“It can reach to the point where you get to a larger size practice where it makes sense to have a CEO or a CFO who’s dedicated to running the business, as opposed to trying to do everything and not doing it well.”
Trust the process
When it comes to refining internal processes, Tangelo director and principal consultant Selin Ertac said businesses should prioritise the top two or three that are integral to the business.
“If something happens only once a year, don’t get obsessed with trying to document that [or] automate that – only focus on the processes that matter in your business,” Ertac said.
“Once you have a process, work with your team to map it out. I know it can be a tedious process but it’s amazing what you actually end up uncovering: understanding the hand-off points between staff members, the duplication of effort, where technology works for you and where it lets you down. Get the team involved to map it all out.”bus
Ertac said she’s “process obsessed” because of the insights it generates for the business on what is working well versus what areas should be focused on.
“It allows me to identify where the staff are focusing their attention but it also allows me to have a client lens to the work that we do,” Ertac said.
Altered ego
Business leadership attracts strong personalities, but Travers noted the value of the “quiet ego”.
“What they talk about is this idea of the quiet ego and it really spoke to me because what I see in my role when I’m dealing with businesses of all sizes, from one-man bands right up to the large institutions, is that you see this emergence of ego,” Travers said.
“If you don’t have an ego, you probably shouldn’t be in business. The thing that’s really differentiating is your awareness of your ego. If you can understand your ego and what it needs, you can actually start to tame your ego.”
Travers said the term “quiet ego” means “to convey our subjective stance towards self and others in which the volume of the ego is turned down so that it might listen to others as well as the self”.
“It’s not saying don’t have an ego, it’s just more saying how does your ego connect to other people in your team?” Travers said.
“Have you started talking to people rather than with people? It’s balanced and it’s got detached awareness, inclusive identity, and it’s about perspective-taking, and it’s got growth mindedness.”
