Archive for the ‘Career development’ Category

Last week Personnel Today reported that PwC is launching a new graduate assessment route with less reliance on degrees. In effect this is PwC stating that they will cease to be seeking only those with top degrees. About time too in my view.

Some years back when I was a partner at BDO I offered a cost-cutting suggestion that was roundly dismissed by the then powers that be. I had noted how much time and money was devoted to graduate recruitment. The aim then was to persuade top graduates to choose a career with BDO rather than one with the Big 5 or 6 firms (as they then were). This exercise was costly and often disappointing as applicants frequently chose to accept offers from the bigger firms over the offers they received from BDO.

I was conscious that many of the partners in the firm had only ever worked for BDO (Stoy Hayward as it then was).  It seemed to me that the graduate recruitment process was predicated on the idea that the best recruits would continue to want or could be persuaded to stay at the firm post qualification. And that all future partners would thus be home grown.

I offered the view that, “these days” the best people often chose to switch firms after they qualified. Those in smaller firms often wanted the experience of working for larger firms. Those in the (now) Big 4 want the experience of working for smaller but still ‘large’ firms. I also noted that as the firm grew so would it’s need to recruit expert partners who had trained and worked in other firms.

I suggested that we should focus our time and money on seeking to attract the best qualified accountants rather than the ‘best’ trainees.  This would reduce graduate recruitment costs and would free up resources to recruit potential partners of the future only after they had qualified.

But for the recession and the consequent reduction in job opportunities for newly qualified accountants I am sure that the pressure to move post qualification would be just as strong now as it was 12 years ago.

I applaud PwC’s move to widen its net although I sense from their press comment that the change is not as big as it seems. But it is a sign of the times.

I predict that the profession will reduce its intake of graduates into trainee positions in the coming years. Increased automation means that many compliance related services will no longer appeal to graduates (if they ever did). And audit work is largely drying up at the smaller end of the market. Most importantly, firms looking to reduce their costs will not want to engage new graduates to perform ever more basic tasks. These will increasingly be performed by non-graduates. In effect graduates will become too expensive to be accountancy trainees in the conventional sense.

What do you think?

Having just shared my views re CPD over on AccountingWeb I offer below an adapted summary and a few additional ideas and tips.

CPD of course stands for Continuing PROFESSIONAL Development.

To some (older?) people this is synonymous with attending courses. It’s what we always did. Historically I recall my obligation to the ICAEW was to evidence 150 points of CPD each year. Of these a large proportion had to be  ’structured CPD’ such as attending courses. These qualified for 3 points per hour. Reading technical updates only counted for 1 point per hour. As far back as I can recall I hit my 150 points target within the first few months of each year. I think that was more common with tax advisers than audit partners for some reason.

The ICAEW CPD rules changed a while ago to a much more sensible system in my view. Now there is a simpler obligation on each member to  judge what CPD is most appropriate for you, and how you intend to acquire that knowledge. (See: ICAEW What is CPD?).

ICAEW also point out that effective CPD can include:

• Technical reading
• Learning at work
• Meetings with experts
• Conferences
• Courses and seminars
• Online learning
• Workshops with your peers
• Reading magazines, newspapers and journals
• Registering for updates and email alerts

And PLEASE let’s remember that our Continuing Professional DEVELOPMENT means far more than simply being uptodate technically. What about personal skills, business skills, management skills – and so on?  These are equally important aren’t they?

Cost effectiveness is one of the keys, especially as we move into 2010. The big course providers try to keep the cost of places low by encouraging the use of annual tickets and large numbers in one central location.  One to one training can be far more productive and personal (which is what really counts) but is likely to be more costly although it will take less time. If you’re able to undertake good billable work for much of the time it can be a false economy to lose that billable time to take time out to attend a cheap big course miles from the office.

Everyone is different.

Some will benefit most by attending big generic courses and listening to a speaker whilst watching their powerpoint slides and then reading the notes afterwards. It is an approach that many of us are very comfortable with, it gives us a break from the office, perhaps we also get to chat with other delegates and to interact with the speaker.

It’s a little ironic for me as an organiser of training sessions for professionals and as a speaker at such events to admit this but there are many alternatives available now – including the online provision of almost identical course content to that which you might otherwise travel miles to hear live. An increasing number of providers are offering you the choice.  If this is of interest do please add a comment below this blog or send me a note and, if there is sufficient interest, I’ll look into it further as regards my own seminar materials.

Some people may absorb more information simply through reading relevant content online or in magazines, books or newsletters.  For example I’m sure that reading the Tax Advice Network’s weekly practical newsletters counts as CPD – although they don’t take very long to read given their practical focus for accountants in general practice.  Reading this blog and the posts on the TaxBuzz blog too should count as CPD – although this is less likely as regards my blog containing accountant jokes and fun!

What really matters is whether your PROFESSIONAL skills and knowledge are improved/developed in some way by the activities you undertake.

It’s also worth stating that attending a course doesn’t always count (if you’re honest). For example, if you leave the course thinking it was a waste of time and you’ve learned nothing new; in what way has your attendance contributed to your Continuing Professional DEVELOPMENT?

Please share your views as comments below if you care.

This is a first. It’s the first time I’ve had something to blog where I can see how it could fit on any or even all 3 of my blogs!

• It sounds like a riddle or joke – so would fit well on: Accountant jokes and fun
• It includes reference to tax planning – so would seem well suited to the TaxBuzz blog
• On reflection though, the rationale for the post is related to my advice and tips for ambitious accountants.

Earlier this week I was chatting with a nice guy who has been on a sabbatical since taking early retirement from a public sector role. He is now thinking about what he’s going to do next and is quite happy to accept that he may need to start networking once he secures a position.

I suggested this was to confuse networking* with selling. He would be much better off to start networking asap. Networking to build relationships. Networking to identify ways in which he can help other people. And Networking to build a deep and wide network of people who know him, like him and trust him. This cannot be done overnight.

It’s the same with inheritance tax planning. Ideally one would do this at least seven years before dying. I’m not suggesting that you need to start networking seven years before you hope to reap the benefits. Of course not. It’s just that seven years pre-death is the optimum time to start inheritance tax planning. Of course it’s not possible as you rarely know when that seven year period begins. Still, if you leave it too late your inheritance tax planning may be ineffective.

So, returning to Networking: If you want to achieve promotion and advancement within your firm you will generally increase your chances if you are well known and liked before your name is first mentioned as a potential partner.  If you are thinking of setting up your own practice, how much easier would it be if you were already well known  in the local community – by people who could become clients, recommend clients or help you source trusted suppliers? You get the picture.

If you leave it too late to start networking you could come across as desperate, needy and ill-prepared. In effect if you leave it too late your networking efforts will be ineffective – for a while at least.

* Relevant previous posts include:

• 10 top networking tips
• People do business with people they know, like and trust
• Why gaining advocates is important
• Networking for professionals
• Networking mistakes to avoid

Accountancy Age has published a profile piece on Peter Hargreaves (Chartered Accountant and founder of Hargreaves Lansdown).  In it he is quite scathing about certain elements of the profession. None more so than the smaller practitioner:

“They’re not doing a good enough job for clients, hence they can’t charge much for the work. A self-defeating spiral, where pressure on fees is rife from client and competitors.‘The problem is they can’t command the fees to do the job properly. The profession has failed singularly to create the right aura for the charging of fees. They’re different to lawyers, who tend to make good businessmen.”

“The problem is the mindset of accountants. They tend to be ‘mean’ with money, which makes them fear charging. ‘Because there are a few doing it for nearly nothing, the others feel they have to compete, but they’ll give you a bad service. A false economy.”

“Those who want accountants don’t know who’s good, and they try and pay very little.”

“Adding value is the key for practices, instead of just preparing accounts from a ‘bunch of invoices’, because ‘if that’s the service they’re offering they don’t service much for it – and if that’s what the client wants they don’t deserve a good accountant”.

“They should say to clients “we want to be in your offices every three months finding out what’s going on, where you make money, to help financially plan your business. If you make a big profit, should you do something before then, perhaps a marketing promotion and spend it this year while we’re profitable” etc. but of course lots of business don’t even know if they’ve made a profit until the accountants produce the accounts.”

Do you find that insulting or does any of what Peter says strike a chord? It’s pretty much the same sort of message as is offered (a little more gently perhaps) by organisations such as AVN, the 2020 group and Probiz. Please tell me what you think by way of comments on this blog.

I was asked for these when contributing to a business survey recently.

1 – Set up rules in your email management system to reduce the time absorbed by incoming emails.
2 – Book time in your diary for regular activities such as bookkeeping, invoicing, personal development, replying to emails etc. If client work has to be done in a slot reserved for key activities, move them to another date – in the same week.
3 – Set up a simple strategic plan with month by month activities to ensure you focus on working ON building your business beyond simply working IN the business. Then monitor and work that plan. (And reserve time in your diary to do this each month)

What else do you find works for you?

Having been asked to contribute some tips to a careers magazine I thought I’d replicate them on this blog too.

I have always remembered the first time that someone I was interviewing asked if they could make notes. Of course my reply was ‘yes’.  Indeed I was impressed that they were evidently prepared, had asked my permission and noted down only key facts. Their notebook also contained prompts for questions they asked of me later in the interview.  This took place 20 years ago. I still remember it because it was the first time. But looking back I don’t recall many other candidates for jobs doing the same thing and when I was in practice I must have interviewed dozens and dozens of people.

So that’s my top tip. Remember that an interview is quite distinct from sitting an exam. I explained this to a young family friend recently before she attended her first ever job interview. I explained that she wasn’t “cheating” if she needed to check her notes before asking a question. I also stressed that it can look very professional to make notes during an interview as long as you don’t lose too much eye contact. So only try to note down key points. You can always supplement the notes later.

Tip number two is something that I would do if I were ever again an interviewee. I would look up the interviewer on the web. I’d check the firm’s website, I’d look them up on Google and on LinkedIn. I’m assuming that you will have already checked out the firm or company online before applying for the job or when the interview is arranged. But these days you can go a step further and look up the interviewer too.

I always try to check people out online before I attend pre-planned meetings. I note down a couple of salient facts and may use these or refer directly to the online profile during the meeting.  This can help you prepare for the meeting as you may find a photo of the person, you’ll remove a little of the uncertainty and you’ll often pick up a couple of things that will help you in building rapport with your interviewer.  But you do have to be careful when you do this. Not everyone I meet is net savvy (and the same will be true of some interviewers). It’s all too easy to freak someone out by revealing how much information you have found out about them online. And that’s something to avoid doing during an interview (and indeed at any time). So be careful!

Twitter seems a bizarre concept. In theory you post brief messages (up to 140 characters at a time) about what you’re doing and these are seen by your ‘followers’. Equally you can read what other people who you’re following say they’re doing.

In practice ‘tweets’ are far more varied than some of the media would have you believe.

Through twitter I have secured attendees at my seminars, traffic to my websites and to my blogs. I have also benefitted from having my messages ReTweeted to wider audiences than the people who ‘follow’ me. And following links from other people’s tweets has led to useful material for my blogs. I’ve also started to build online relationships and have experienced strangers acting as my advocate.

Each time I add new posts to my Ambitious Accountants blog, my TaxBuzz blog or my Accountant jokes blogs an automatic Tweet goes out with a link back to the new blog post. And it’s not only my ‘followers’ who get to see them. Many people search twitter for real time commentary and then tell others.

So, for me twitter is shaping up as a fun business tool. But, do I think many UK accountants will become active on twitter? No. It’s too time consuming as compared with other ways in which they can achieve their business objectives. In this connection I refer back to a blog post I wrote last December in which I explained why ‘Twitter is not for accountants’. My views are unchanged despite knowing a handful of accountants who are now active on twitter – some are even enthusiastic about it. Maybe more will try it out, but I doubt many will stay the course (for business).

Twitter is the latest phenomenon in the area of ‘online business networking’. Business or social? It depends how you choose to use twitter, what you tweet about and who you follow. If you follow all the internet marketing enthusiasts, the celebrity twitterers and the novices who don’t really ‘get it’ you’ll certainly consider twitter a waste of time.

You may know some of your ‘followers’ personally. Others will find you through friends, through real time searches re accountancy and tax subjects or subjects o mutual interest. There are loads of would be twitter spammers – but if you don’t follow them they can’t spam you! And you choose who you follow. If you don’t like the way that someone tweets, ‘unfollow’ them.

I doubt many of my followers read all of my tweets. I certainly don’t have time to read all those of all the people I follow. Many of them in fact only tweet occasionally. As well as friends and business associates I follow other commentators, some journalists, some firms, some publications and some organisations. Many are still experimenting with their twitter strategy – as am I.

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If you decide to join in, by all means follow me at www.twitter.com/BookMarkLee. I’ve explained my approach in more details on the twitter page of this blog.

Through the Tax Advice Network I also write the The Tax Buzz blog and twitter feed which you can follow at www.twitter.com/TheTaxBuzz

UK accountants are listed on the UK tax and accountancy twitter listing/league here: www.TaxAdviceNetwork.co.uk/twitter At the time of writing this has about 50 names on it – not all are accountants in practice. [edit: June 2009. Now c80 names]

There are also twitter twibes for those interested in UKaccountants, UKtax and TaxBuzz. If you are on twitter you can join these too if you like.

And if you have a contrary view, whether you are an accountant or not, please add your comments to this post.

Two of the advantages of operating through the medium of a Limited Liability Partnership (LLP) are that no personal liability falls on a member of a limited liability partnership for the contracts or debts of the LLP and there is no joint or several liability for the negligence of any other member.

It seems reasonable therefore to discuss this option during my talks about ‘How to avoid professional negligence claims and worse’.

It is worth noting that the key advantage of an LLP as compared with a traditional partnership is that the members of the LLP have the protection of limited liability if something goes wrong with the business, in much the same way as do shareholders in a limited company. For many liabilities (eg bank finance and rental obligations) personal guarantees may be required but this rarely occurs as regards the prospect of claims being made re negligent advice.

In practice a member of an accountancy LLP is in no better and no worse position than a director of a limited company of accountants. But they are in a better position than the partners in a conventional partnership.

However, the protection of limited liability is not the main reason for firms choosing to convert to LLP status. It is more the fact that an increasing number of younger ambitious prospective partners are reluctant to take partnership in conventional firms where they are taking on joint and several liability with the older partners. Given the choice between partnership in such a firm or in an LLP, all else being equal they choose the LLP.

Does this accord with your oewn experience? Please add your veiws as comments on this post.

In this recent video interview Dennis Howlett asked me about my use of Twitter and my views on accountants’ networking strategy. It lasts around 4 minutes.

I’d appreciate feedback – whether you agree or disagree with my views.

When I first saw the headline ‘Death by Accountancy‘ I assumed this would be an item for my blog containing accountant jokes and fun. But I’m afraid it’s a further lesson that Accountancy is about more than just numbers.

Yesterday I revisited a related subject that I haven’t written about on this blog for some time. That is the importance of soft skills. I’ve previously noted that Strong technical skills are not enough, and identified the options available When you need more than just technical skills.

The article headed ‘Death by Accountancy‘ isn’t so much about accountants’ own soft skills but about why accountants shouldn’t ignore such matters when advising on restructuring plans.

The article looks at the recent failure of MFI and suggests that:

it wasn’t the recession that killed MFI. It’s death warrant was signed by its own executives in a restructure some five years earlier. Like thousands of other companies, it has been killed by the absurd pretence, cemented in MBA orthodoxy, that a company consists of little more than costs and resources, and that people and skills represent the ’soft stuff’.

Continuing in a similar vein:

In truth, the company was destroyed by a cost-reduction programme that took no account of staff skills and customer service.

I wonder if the common experience of accountants in practice (whereby all the emphasis is typically on technical competency) has an impact on how they view businesses in the commercial sector? And if so, are there any lessons that can be learned?

What do you think?