changing work ‘faces’

VOLUME 10 • ISSUE 3SPRING 2010 Avoid Network Nightmares • Lemonade Lessons: Entrepreneurial DebutPLUS:

the LEADING

Advice and information to help you manage your business

CHANGINGWORK ‘FACES’Capture KnowledgeBefore it Walks Out the Door

PUBLISHED BY Kreischer Miller

SPRINGVOLUME 10

ISSUE 32010

The Leading Edge

2 VOLUME 10 • ISSUE 3 • SPRING 2010

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Advice and information to help you manage your business

Dear Clients and Friends,

Welcome to the spring 2010 edition of The Leading Edge! Trying economic times, snow, rain—time to move on to nicer weather and renewed energy to tackle the issues confronting us. We are starting to see evidence that things are improving on the economic front at the macro level, but it sure has not consistently trickled down to many local levels. We need to be confident in the resiliency of our country and economy despite continued uncertainty in many areas.

In this edition, we highlight several topics that if addressed properly can have a positive impact on your company. Dick Brooks of our Tax Strategies Group discusses state tax planning and nexus issues. In these times of aggressive pursuit of taxes by state and local jurisdictions, tax planning opportunities are available and should be carefully evaluated.

Looking to find ways to add that valued employee to your organization, but are unsure of how to do it? Adam Berman of our Human Capital Resources Group highlights techniques to move “up market” in the quality of key team members.

Also in this edition, Kim Mulholland of our Technology Solutions Group discusses ways to maxi-mize the return on investment in your accounting system, and Roman Leshak of our Accounting and Auditing Services Group provides an update on current issues related to employee benefit plans. Given the stringent DOL enforcement actions taking place these days, we encourage you to closely review your compliance with applicable retirement plan regulations.

We value our relationship with you and encourage your feedback on how we can better meet your needs. Please share any suggestions, comments and ideas for future articles with me at (215) 441-4600 or [email protected].

Sincerely,

Stephen W. ChristianManaging Director

KM CARES!DAFFODIL DAYSThe team members at Kreischer Miller recently participated in the annual American Cancer Society’s Daffodil Days campaign. Proceeds will be used for life-saving research, education, patient services and advocacy. This campaign was a festive way to decorate our office, and raise money for the American Cancer Society.

MS WALKKM Cares April event is the MS Walk at the Elmwood Zoo. This is the fifth year team members will participate in the one-mile walk. They will have the opportunity to tour the zoo and see more than 150 fascinating wild animals including jaguars, cougars, wolves, bison, and elk too. This is fun way to support MS with family and friends!

EASTER SEALS WALKOn Saturday, June 12, KM team members will participate in the “Easter Seals Walk With Me” event. The walk will begin at the famous Philadelphia Art Museum and proceeds will be used to help children and adults learn to walk, talk and perform other skills essential to daily living!

THE LEADING EDGE 3

CONTENTS

features

departments

The Leading Edgewww.LeadingEdgeAlliance.com

The Leading Edge Alliance is an international professional association of independently owned accounting and consulting firms. The Leading Edge Alliance enables member firms to access the resources of a multibillion-dol-lar global professional services organization, providing business development, professional training and education, and peer-to-peer net-working opportunities nationally and globally, around the corner and around the world.

Members are top quality firms who are very successful, have deep client relationships, and strong ties to the community. The Alliance pro-vides members with an unbeatable combina-tion: the comprehensive size and scope of a large multinational company while offering their clients the continuity, consistency and quality service of a local firm.

Member firms have access to the best and brightest teams of business advisors – a peer-to-peer connection that provides the right busi-ness solutions for clients.

To find out more about the Alliance contact Karen Kehl-Rose, president, at (630) 513-9814 or [email protected].

Leading Edge Advisory Committee

Linda Watson Brady Ware

Marshall LehmanLurie Besikof Lapidus & Co., LLP

Jen LemanskiPannell Kerr Forster of Texas, P.C.

Gary VothPannell Kerr Forster of Texas, P.C.

Karen Kehl-RoseThe Leading Edge Alliance

in affiliation with Wise Groupwww.wisegroup.com

Ann M. Gynn Editor

Becky Gaylord, Sandy Lesko-Mounts,Dennis Seeds

Contributing Editors

Natasha Fletcher, Amanda Horvath, Crystal Madrilejos, Stacy Vickroy

Art Directors

Andrea JagerGraphic Designer

VOLUME 10 • ISSUE 3 • SPRING 2010

The Leading Edge is published four times per year by Wise Group, 812 Huron Road, Suite 201, Cleveland, Ohio, 44115, (216) 523-1212, FAX (216) 241-5458. Periodicals postage paid at Cleveland, Ohio.

IRS Treasury Regulations require us to inform you that any tax advice contained in the body of this com-munication was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

4 Changing work 'faces'

8 Key strategy: Executing the exit interview

13 Want to buy some lemonade?

14 Network nightmares avoided

9 News and information from our firm

16 Bits & Pieces

18 In a nutshell: Q&A Chris DeSantis responds to your workplace dilemmas

19 The Leading Edge Alliance

the LEADING


COVER

CHANGING WORK ‘FACES’

Capture knowledge before it walks out the door

By Sandy Lesko-Mounts

THE LEADING EDGE 5

COVER

Explicit knowledge is easier to capture because it already is stored in databases, documents and even e-mail messages. This knowledge is shared with a higher degree of accuracy. Tacit knowledge is more abstract. It comes from experiences, perceptions and gut-level intuition. Often, people are not keenly aware of the knowledge they possess or how it can be valuable to others. Tacit knowledge, however, is considered more valuable because it provides context for people, places, ideas and experiences. Effective transfer of tacit knowledge generally requires extensive personal contact and trust.

Sally Wright, president of Alliance Consulting Group, says companies value information that will improve the operation and reflect favorably on the bottom line—profit and growth. Three subtypes of knowledge fit into these categories:• technical knowledge or expertise in field,• organizational knowledge such as how

decisions are made and departments interact and

• intuitive knowledge of unwritten rules that guide interactions, problem-solving and decision-making.

For example, a social worker retires from a hospital system. Her technical knowledge includes how to interview a patient, assist someone with grief issues, write up an intake evaluation, etc. Her organizational knowledge includes what services can be called upon to assist a patient who has no money, what programs are available for alcoholic patients and how to help someone apply for Medicare. Her intuitive knowledge includes when to approach the boss when she wants him to write a patient letter (in the morning when he is not yet overwhelmed), how to get a patient a ride home (call JR in transportation, he’s always helpful) and who’s the best person to ask for emergency room coverage (Emma, who lives next door to the hospital and needs the extra hours).

Need a systemKnowledge management is an industry in itself. KM, as it is sometimes referred, is a systematic approach to finding, understanding and using knowledge to achieve organizational objectives.

You’ve probably been there. Your new job comes with a filing cabinet already stuffed with information from the previous employee(s). Maybe you perused the files your first week or pulled out some papers every few

months when faced with a new challenge. But there the filing cabinet sat, looming as a monument to ineffective knowledge transfer.

Dust off your company’s knowledge transfer plan because now more than ever the faces in the workplace are changing. More than 78 mil-lion baby boomers in the United States are at or approaching retirement age over the next 10 to 15 years. Employees also are leaving in sig-nificant numbers because of cost-cutting mea-sures. Finally, younger generations don’t see a particular employer as a lifetime commitment and frequently opt for a new door.

All these scenarios create critical mass for knowledge management because those employees leave with invaluable knowledge of people, processes, products, services and client relationships. That missing knowledge can leave a significant scar on a company’s ability to tap into its own history.

We are in the knowledge economy. The capital in organizations emanates from the brainpower of its employees. Organizations today, regardless of industry, are fundamentally driven by intangible things such as knowledge and relationships. That’s the view of Jacob McNulty, president of Orbital RPM, a consulting firm that positions organizations to compete in a knowledge-based economy.

The challenge is clear—establishing a culture of knowledge sharing on an ongoing basis and having a system to capture knowledge before it's gone are essential tools for companies large and small.

“Knowledge is pervasive through every aspect of the 21st century organization, and this trend will do nothing but grow exponen-tially,” McNulty says.

Know the typesKnowledge can be divided into two general categories—explicit and tacit. To share both explicit and tacit knowledge, a company must have ongoing processes and resources, McNulty says.

continued on page 6

It also can be defined as the process of preserv-ing, connecting and sharing the knowledge of an organization freely within the organization. When reliable knowledge is freely available throughout the organization, employees are more efficient, make fewer mistakes, avoid redundancy, communicate more effectively with their peers and can draw upon the skills and expertise of the entire organization.

Wright says that too few companies have an active, ongoing knowledge management program to retain key information when employees leave. Only about 25 percent of the corporate world and about 30 percent of federal agencies have active knowledge management programs, according to estimates.

To create a system, you first must know the three components of knowledge management:• People who create, share and use knowledge

and who make up the culture of your organization that nurtures knowledge sharing.

• Processes or methods used to acquire, organize, share and transfer knowledge.

NO MATTER THE ORGANIZATION’S SIZE, THE SUCCESS OF KNOWLEDGE MANAGEMENT INITIATIVES DEPENDS UPON PEOPLE’S WILLINGNESS TO SHARE INFORMATION AND KNOWLEDGE ABOUT HOW TO ACCESS THE INSIGHT OF OTHERS.

COVER

• Technology, which includes the mechanisms that store and provide access to data, information and knowledge created by people in various locations.

By dividing into the three categories, you can start creating a knowledge management system by identifying the people, processes and technology that do what your company does. Capturing this information can be done through professional or in-house-created systems depending on budget and need. The goal of knowledge management is not to manage all knowledge, but to manage the knowledge most important to the organization.

Decide what’s importantCompanies should evaluate what makes them successful, and what their strategic plans and strengths are to determine what knowledge is important, says Eric Darr, who has developed and taught doctoral and master business courses in organizational learning, strategy and technology management at Harrisburg University College of Science and Technology.

For example, if a business has succeeded because of new product innovations, then knowl-edge related to the process of innovation is impor-tant. Alternatively, if a business has succeeded because of its loyal customer base, then knowl-edge related to customer retention is important. Knowledge deemed important should be made explicit and stored in multiple ways. Information can be shared in databases and personal knowl-edge transfer journals, and communicated indi-vidually through mentoring and job shadowing.

A business does not want its critical knowl-edge locked in the head of one manager who could be unexpectedly gone tomorrow, Darr says.

Understand sizeSmaller organizations—those with fewer than 150 employees—may have an easier time adapting to knowledge management than their larger counterparts. Although they may not have as much money to spend on a knowledge management system, employees in smaller organizations usually tend to share information more easily because they tend to interact with their co-workers more often on a face-to-face level. This atmosphere creates a stronger sense of trust and connection to each other; thus, knowledge sharing is better facilitated.

In larger organizations, knowledge sharing on a personal level is more difficult because people tend to cluster their interactions in

smaller subsets. In addition, multiple locations can make information sharing more difficult and trust is more difficult to build among strangers. Larger organizations must make a more concerted effort to create an environment that fosters knowledge management as an orga-nizational principle and stresses the importance of sharing information across organizational boundaries. Processes and technology also become more critical in larger organizations.

Create sharing cultureNo matter the organization’s size, the success of knowledge management initiatives depends upon people’s willingness to share information and knowledge about how to access the insight of others. The belief that knowledge is power can undermine knowledge sharing. Some people are reluctant to share knowledge because they fear they are relinquishing their power, which could threaten their position in the company. They think, “If I’m the only one who knows how to do this, that’s job security. They can’t get rid of me.” That attitude won’t work or bring success in an organization that fosters a knowledge-sharing culture.

Nancy Mercurio of Leadership Training Systems Inc., a firm that specializes in organizational behavior, says employees often focus on their productivity efforts rather than their intellectual contributions because they perceive the company values productivity over knowledge. Thus, employees are hesitant to

take away time from productivity-related activities to share their knowledge. Too often, they find the value in their knowledge when a competitor tries to woo them away. “Creating the culture of sharing knowledge begins with creating a perception that human knowledge is valued and worth sharing,” Mercurio says.

Low morale, conflict and mistrust also act as barriers to people’s willingness to share. People want credit for their ideas. If they sus-pect they will not be acknowledged, they will be more reluctant to share information. Managers must be attuned to the organizational dynamics and act appropriately to ensure that negativity is minimized. Organizations must encourage knowledge management publicly with recognition and praise for the most cooperative employees.

Take advantage of techComputer and telecommunications technology are how most organizations choose to store and manage their information. Technology allows for easy access, reduces time and effort, and literally saves the need to order more filing cabinets.

Technology provides the means for people to gather, organize, store and access explicit knowledge. It also enables people to share their tacit knowledge without being face to face. It can increase the accessibility of knowledge, reduce the effort to record and keep information current, and facilitate interaction with stakeholders.


continued from page 5

THE LEADING EDGE 7

COVER

George Blomgren, director of business systems at a Midwest employers association, knows how knowledge management software can help and how it can frustrate. When he came on board at MRA a couple years ago, the organization was frustrated with its knowledge-sharing software.

Given the organization’s primary role to serve as a resource and collection site of helpful information for its members, MRA wanted a self-service system that could work for both its members and its employees. Blomgren says they wanted a platform that hosted a more Google-like, user friendly and robust search engine. MRA users would be most comfortable using software that followed the gold standard search engine. So MRA chose InMagic’s Presto Social program.

MRA can customize the documents by adding comments as well as tagging them with key search words that their members or staff might use. Blomgren says the tagging feature also allows users to suggest additional key words for a document as well as opportunities to include potential misspellings that users might search. For example, is it HIPPA, HIPAA or HIPPAA? (It’s HIPAA—Health Insurance Portability Accountability Act.)

In addition, Presto Social enables MRA to customize information by group (such as members and employees) and post custom content for each group. Blomgren says another feature that MRA appreciates is the ability to look at how people use the system. “We really love the ability to look back and see who’s accessing what type of information. It allows us to make more intelligent decisions and keep in touch with members.”

MRA also can assign expiration dates to documents so they won’t show up in the system after that designated time. System managers, however, are reminded about the document expirations so they can decide whether to keep them live or allow them to expire. The documents remain in the system but don’t appear in search results.

Knowledge management software programs are plentiful, from boxed versions to profession-ally managed systems. For no-budget knowl-edge management systems, Web-based tools such as wikis and social networking are espe-cially useful at capturing discussions and allow-ing those discussions to be searched over time, Darr says. There are many ways for an organi-zation to identify, store and transfer knowledge. The challenge is to identify and develop com-

Darr says both shadowing and mentoring techniques can be used to articulate or uncover tacit knowledge. “In some sense, capturing tacit knowledge about a job is like trying to write down an old family recipe by watching your grandmother make her beloved holiday cookies,” he says. The person doing the task is most helpful if she describes what she is doing each step of the way, turning tacit knowledge into explicit knowledge. The observer then records the doer’s actions.

Mercurio says that shadowing and mentor-ing are the best methods because they provide a direct opportunity to share information between people through actions as well as words. “Once the observation is completed, a debriefing process should take place in order to determine what questions remain unan-swered,” she says. “Assessing the learning experience or the interpretation of the learning experience is critical.”

IS YOUREXIT STRATEGYWORKING?Check out page 8 for more details.

plementary ways to the type of knowledge and culture an organization possesses.

Create communitiesCreating communities of practice to share tacit knowledge is one important way to mitigate the knowledge loss associated with employees leaving, Darr says. A community of practice is different from most communities or interest groups because it tackles a specific task or problem. The community discusses and shares insights, approaches, methods and solutions to reach a common goal. The point is that if one member of the community of practice leaves the company, the other members can carry on.

At General Electric, a multi-billion dollar global enterprise with a diverse set of businesses from lighting and appliances to aircraft engines and energy distribution, effectively sharing knowledge across functions and teams within the company, then sharing information geographically across the globe, are tremendous challenges, says Robert House, GE Consumer and Industrial HR manager. One vehicle that’s been tremendously successful is an “Action Work Out,” a cross-functional, team-based activity that runs over three to five days with the goal of improving a process. Improvements are made by observing what is happening and making quick, real-time changes to get results. “The involvement of cross-functional team members who bring different perspectives and areas of expertise to the issue results in sharing of ideas and knowledge, and greater problem-solving capacity than a single person could provide,” House says.

Shadow and mentorJob shadowing is how employees learn about a job by walking through the work day as a shad-ow to a competent worker. Employees with limited work experience in a given area can witness firsthand the work environ-ment and occupational skills in prac-tice. Mentoring can include peers shar-ing their experiences and learning from each other’s past successes and failures. A crucial distinction between shadow-ing, mentoring and other forms of training is that shadowing and mentor-ing transfer knowledge based on expe-rience, from someone who has prac-ticed the desired knowledge or skill.

Continued on page 8


COVER

Continued from page 7

Record the transferMercurio supports the idea that companies need a simple method for documenting information once it’s been collected by using individual knowledge transfer journals. Categories include:• Organizational history at the time you were

hired• Your personal role and career development• Necessary working relationships• Decision-making processes (and decisions)• Key operational processes that you carry out

each day, week or monthGiving employees time to update and record

regularly in their knowledge transfer journals is important to ensure their thoroughness and usefulness.

Encourage retirees to helpAsking retirees to become consultants or appointing them to a board for a specified time can help ease the burden of knowledge transfer, Wright says. “It helps workers feel they could go to someone if they can’t find or don’t know the answers,” she says. It also helps retirees feel valued by your organization, creates a pool for expertise and preserves knowledge of history of an organization.

Toss the file cabinetUltimately, the tactical processes for capturing the knowledge of a retiree and that of someone leaving for another job are largely the same, McNulty says. He also advocates having processes embedded in the culture so that knowledge is captured all along; not just when a departure is announced.

In the end, knowledge management requires executives to recognize the value of information and figure out the best way to capture it so remaining and new employees will be able to benefit from it—and ordering more file cabinets doesn’t cut it anymore. e

Editor Ann M. Gynn contributed to this article.

Key strategy:Executing the exit interview

In 2009, Forbes ranked GE as the world’s largest company with 323,000 employees around the world. For a multi-national company such as GE, the exit interview

becomes an extremely valuable tool. “Exit interviews are a great tool for collecting information from departing

employees about what they liked about working at GE, and to gather suggestions to improve the work environment,” says Robert House, GE Consumer and Industrial HR manager. While people are sensitive about giving feedback in a way that doesn’t ‘burn bridges,’ most are willing to share ideas or areas of concern that can help make GE an even better place to work in the future, according to House.

House, Sally Wright, president of Alliance Consulting Group, and Nancy Mercurio of Leadership Training Systems offer these exit interview strategies:• Record exit interviews with a series of carefully scripted questions that the soon-

to-be former employees are given prior to the interview.• Ask the employees to use their last month on the job writing a “Desktop

Reference” which can be used after they have departed. The U.S. Army, whose officer and enlisted personnel are rotated to different assignments every two to three years, use this system to excellent effect in their system of standard operating procedures that are written, amended, and passed to the next iteration of incoming soldiers. The same process should be used when people leave a department because they will no longer be available to provide assistance.

• Ask the employees why they are leaving.• Inquire about the factors that led to their decision to leave.• Find out if they feel they were treated fairly by their managers.• Determine whether or not they feel they were given real opportunities to improve

their skills and advance in their jobs.• Ask the individual to recommend who the organization should tap into for help

related to the individual’s job.• Determine what key processes the

individual is an ‘expert’ in and wherethat information can be located. e

THE LEADING EDGE 9

State income tax nexus update: Alive and expanding

KREISCHER MILLERVOLUME 10 • ISSUE 3

SPRING 2010

By Richard P. Brooks, Manager, Kreischer Miller

Rarely does a week go by when a state court does not issue an

opinion on state corporate income tax nexus.

The term “nexus” describes the amount and degree of business activity that must be present before a corporation’s business activities are subject to state tax. The issue of nexus is a complex one based on the application of constitutional, judicial and state and federal statutes.

Congress adopted Public Law 86-272 more than 40 years ago in response to cries from interstate businesses for multistate nexus conformity. Under the law, states cannot impose a net income tax on any person if the only contact with a state is limited to the solicitation of orders for sales of tangible personal property that are approved outside the state, are filled from a stock of goods outside the state and delivered by common carrier or the U.S. Postal Service.

The aforementioned law can provide significant protection for a multistate business. However, it has several limitations. First, it applies only to taxes imposed or measured by net income. Therefore, there is no protection against the imposition of sales-and-use taxes or taxes imposed on a corporation’s net worth or franchise taxes. Also, it does not protect businesses that provide and sell services or sell or license intangibles.

Over the years, the use of technology has dramatically changed how commerce and business is conducted. Electronic commerce has caused states to expand the application of nexus

through novel and creative theories.

Agency and affiliate nexusMany businesses conduct multistate sales solicitation and marketing activities through persons other than employees. For instance, independent representatives, commission agents and brokers are frequently engaged in sales solicitation activities.

The courts have consistently held that for nexus purposes, the distinction between employee salespersons and independent contractors is without constitutional significance. The courts have stated that to permit such formal “contractual shifts” would open the gates to a stampede of tax avoidance.

Representational nexusMany businesses contract with independent representatives to provide repairs, warranty work and services to tangible personal property sold by the business to customers in various states. Typically, the independent representatives invoice the company for the service or work performed and the company invoices the customers. Please be aware that the independent representatives’ activities establish nexus for the company in the states where the service or repair work was performed.

Economic nexusThe most recent nexus theory being advanced is dubbed “economic” nexus. Michigan and Ohio enacted statutory provisions imposing a tax-filing requirement for businesses without regard to

some type of physical presence in the state.

Michigan enacted the Michigan Business Tax on Jan. 1, 2008, which imposes a tax filing requirement on companies that have $350,000 or more of gross receipts derived from Michigan sources. A company with less than $350,000 of Michigan gross receipts is not required to file a Michigan Business Tax return even though the company may have some form of physical presence in Michigan.

Effective July 1, 2005, Ohio enacted the Commercial Activity Tax, an annual privilege tax measured by gross receipts on business activities in Ohio. Businesses with taxable gross receipts of more than $150,000 per calendar year are subject to the tax. The location where the purchaser ultimately uses or

receives the benefit of what was purchased is paramount in making the gross receipts determination.

SummaryAs more and more businesses expand their operations into other states, via electronic commerce or otherwise, multistate nexus issues will become even more prevalent. The following tips may help:• Make certain to apply the

appropriate standard for the type of activities performed or product sold in the state.

• Be thorough in applying the selected nexus standard to a company’s facts and circumstances.

• Never complete and remit a state nexus questionnaire without first consulting with an outside public accounting firm experienced in matters related to state and local taxes.e


Getting the most value from your accounting system

KREISCHER MILLER

By Kimberly J. Mulholland, Kreischer Miller-Technology Solutions

Are you getting value from your accounting system?

Are you, at night, haunted by images of piles of paper waiting to be keyed into a computer and multiple e-mail requests for information filling your inbox? As the current business environment demands more information, higher productivity and accuracy—just to stay in business—many accounting professionals are being pressured to improve the information that they produce from their accounting system. This pressure is accompanied by the reality of a depletion of resources; people, time, disk space, RAM and money.

How can you get the most value out of your system? First, look at the components of your system. Not just the hardware and the software, but the people, process inputs and outputs. Look beyond your accounting group to those in the enterprise who provide critical information to your system. Talk to your “customers” to identify and refine their needs for information. Weed out redundant reports. Then take a good look at your accounting software. Whether you are running one-user Quickbooks for an entrepreneurial company or are using a mid-market, multi-user Sage or Microsoft product for an established firm, look at what you have and ask the following questions?• What modules, functions do we

own and are we using them to their fullest potential? Examine unused data collection points that could add value to your business. Rework the process to leverage capabilities that you own.

• Did we have a plan to fully roll out modules and functions that got derailed along the way? Dust it off, consult, update and execute the next steps.

• Are we current on updates, releases and service packs issued by the software company? Often, these not only fix ‘bugs’ but can provide additional performance improvements.

• What other non-integrated accounting systems are you using? Spreadsheets, proprietary or industry-specific software, or other systems requiring duplicate entry? Can these be integrated or migrated to your primary accounting system?

• Can we standardize? What “work-arounds” were put in place to accommodate the uniqueness of your internal business processes? Most systems with large install bases were created with proven, best-in-class work processes. Leverage them. Your suppliers and customers are probably doing the same thing.

• Would my team benefit from additional training? Raise the bar for your staff with an environment that encourages learning and skill development. Be selective but look for no-cost webinars and training from certified experts. Ask for references.

• Investigate additional reporting and analysis tools. The technology is changing in this area. Are you ready? What will you need?

• Is it time to evaluate upgrading your core software? How far behind in features are you? Could these be saving time and providing a productivity return to your company?

Sometimes getting or perceiving value is all about attitude. Fostering an environment that promotes the inquisitive to say “there must be a way” can differentiate your accounting department and your business. Taking small steps like incorporating a five- to 10-minute weekly improvement discussion among your team can be a start. Make it a priority at the beginning of your week. Finally, seek a trusted advisor to help you evaluate, identify opportunities, guide and train to get the most value out of your accounting system. e

THE LEADING EDGE 11

KREISCHER MILLER

Hiring big talent into your small, mid-market company

Economists are more certain that we are seeing some

positive economic trends. Is this the upturn for which we’ve been searching? More and more of our clients are leaning towards an affirmative answer. While this upturn is exciting from a sales perspective, it also can create a new set of challenges and opportunities as companies look to get back to previous staffing levels.

Hiring big talent into a small or mid-market company is challenging in any market, but especially in periods of skilled labor shortages. During these times, high-potential and top-performing employees are recruited away on a regular basis, often with larger salaries and significant signing incentives. Thus making it easier for large companies to dominate and win the talent war.

With this historic downturn, the tables have turned. Traditionally “secure” employers have been among the first to layoff and cut jobs. Often those cuts have been across the board and not related to talent or achievement. With so many accomplished candidates on the market, small- and medium-sized businesses now have an opportunity to add rock-star talent to their lean staff. But while waiting too long to pull the trigger could jeopardize your opportunity, moving too early also could create unintended problems. When is the right moment?

Our advice has always been that it is better to be a little early rather than late to the talent war. You should consider the following questions when contemplating additional staff. • Are your competitors hiring?

Check their Web site, use market intelligence and beat them to the best available talent.

• What is the forecast for hiring

By Adam Berman, Manager, Kreischer Miller

a particular skill set in your geography—how much talent is available?

• Is your cash flow where it should be to support a new hire?

Small and mid-market companies now have a distinct advantage in hiring big talent from larger or possibly more prestigious companies. Following is a list of tips and techniques to help hire big talent:• Sell the entrepreneurial angle. In

small to mid-market companies, employee contributions have a more direct impact on the business. Individual contributions are visible, measureable and rewarded.

• Inform candidates of opportunities to participate in creating the vision and strategy, and perhaps the execution, within their realm of responsibility. Smaller companies often expect employees to run projects from conception to completion.

• Advise candidates they will have more opportunities to use more of their skills and develop new talents. Typically, in mid-market and small companies, employees at all levels have more diversity in their jobs. In large companies, employee responsibilities tend to be more specialized and they engage more repetitive tasks/functions.

• Explain that historically when corporate belts are tightened, smaller organizations are often slower to reduce staff than a large global giant.

• Stress teamwork. Small and mid-market companies are typically less matrixed and less bureaucratic while fostering closer relationships.

• Accentuate that smaller and mid-market companies are synergistic; they foster collaborative, rather than competitive, employee relationships through a concept of “we’re all in this together.” On site, direct supervision and support provide an opportunity for peer relationships to develop and strengthen with shared accomplishments.

• Offer flexibility, where feasible.

Small to mid-market companies mistakenly think that they cannot compete with large companies for big talent (especially as it relates to compensation). Today, employees are searching for meaning in their work; through the mission of an organization, the development of a product or service offering that aligns with their values, or simply the employment culture. They seek roles with more diverse opportunities and challenges, and expedited hiring processes.

Unlike large companies, small to mid-market companies move faster, making recruited talent feel welcomed, wanted and valued.

If you can present the challenges and rewards (and not just those related to compensation), as well as a corporate mission aligned with their personal and professional values in a compelling fashion—those star performers once considered unattainable might be knocking on your door. Do not allow yourself to be those small or mid-market business leaders who act as if they are at a disadvantage. You have a tremendous opportunity for that big talent success. e

For tips on how to access any available talent and retain those star performers, reach out to Adam Berman, Manager of Kreischer Miller’s Human Capital Resources Group, at [email protected] or (215) 441-4600.


Employee benefit plan industry developments

not expanded the safe harbor to cover those plans that exceed 100 participants.

EFAST2 electronic filingEffective Jan.1, 2010, all Form 5500 s for 2009 and 2010 plan years must be completed and filed electronically with the DOL.

There are two ways to file electronically: use EFAST2 approved third-party software or IFILE available on the DOL’s site (www.efast.dol.gov). IFILE should only be used by individuals or organizations filing a small number of Form 5500 filings annually.

Every individual who signs a Form 5500 or schedule must obtain his/her own credentials as a filing signer. The DOL has imposed a limit of one set of credentials per e-mail address and individuals obtaining the credentials must certify that they will not share the credentials with anyone, including a third-party administrator or financial institution. Depending on the function you provide in relation to the Form 5500, there are several different credential registration options.

One potential issue with the new filing process is that Form 5500 filers will be notified within 48 hours as to whether the Form 5500 has been accepted by the DOL. Plan sponsors who file their returns close to the regulatory deadline should be aware of this lag time Filings submitted close to the filing deadline that are incomplete and rejected may result in a delinquent filing and the imposition of penalties.

Plan sponsors should determine each party’s responsibility in the filing process and register for the appropriate credentials. Communication with your Form

5500 preparer/filer as well as your independent auditor is necessary to ensure the proper registrations are in order for the 2009 Form 5500 filing to avoid any potential delays. As with any new process adequate preparation and a thorough knowledge of the procedures are critical to assuring a smooth transition and submitting Form 5500 filings in a timely and accurate manner.

403(b) plan requirements and issuesIn November 2007, the DOL issued amended regulations elimi-nating an exemption granted to 403(b) plans from the annual Form 5500 reporting, disclosure and audit requirements under ERISA. The removal of this exemption subjects ERISA-covered 403(b) plans to the same Form 5500 reporting and audit require-ments as 401(k) plans effec-tive with their 2009 plan year. Generally, 403(b) plans sponsored by religious organizations (church plans) and governments are not covered under ERISA.

ERISA-covered plans with 100 or more eligible participants (as of the beginning of the plan year) that file the Form 5500 as a large plan are required to have an annual audit of their financial statements. In addition, all 403(b) plans are required to have a written plan document and ensure that the plan is operating in compliance with that plan document for the entire 2009 plan year. Plan sponsors should understand how the new reporting requirements affect their plans, and whether it is considered a small or large plan for filing purposes. The designation of an individual within the organization that is familiar with the reporting

KREISCHER MILLER

requirements is important so that there is proper oversight of the audit and filing process.

Although the Form 5500 reporting and financial statement audit requirements are effective for the 2009 Form 5500 filing, the plan’s financial statements need to include a comparative 2008 statement of net assets available for benefits. Communication between the plan sponsor and third party service provider should be ongoing to establish the extent of information that is currently available and the timing of the receipt of this information, and to identify any issues that could arise in obtaining required information.

Upon determination that the plan qualifies for an audit, engaging the services of a qualified independent auditor that has extensive experience with employee benefit plans is critical. The auditor can assist with the information gathering process and discuss any potential issues that may exist from review of the plan document. e

Several important develop-ments have an immediate

impact on employers who spon-sor employee benefit plans. The significant changes include the timeframe when employers must remit employee deferrals into plans, the process surrounding the filing of the Form 5500, and a new requirement that subjects many not-for-profit organizations to the same rules as their for-profit counterparts.

Safe-harbor rule for depositing employee contributionsThe U.S. Department of Labor (DOL) published a final ruling to protect employee contributions deposited into those employee benefit plans considered small plans (plans with fewer than 100 participants) by providing a safe harbor period of seven business days following receipt or with-holding by employers. Previously, plans of all sizes were required to transmit employee contribu-tions to their respective plans as soon as they could reasonably be segregated from the general assets of the employer, but no later than the 15th business day of the month following the month in which contributions were received or withheld by the employer. The timing of deposits by employers is often scrutinized by the DOL and has resulted in sanctioned against plan sponsors.

The final ruling amends the participant contribution requirement to create a safe harbor period under which participant contributions to a small plan will be deemed to comply with the law if those amounts are deposited with the plan within seven business days of receipt or withholding. Importantly, however, the DOL has

By Roman Leshak, Jr., Manager, Kreischer Miller

THE LEADING EDGE 13

COMMUNITY

Lemonade stands conjure iconic images of America—children, crayon-crafted signs,

paper cups and plastic pitchers. They represent most children’s first entrepreneurial experience.

Prepared 4 Life, a non-profit organization headquartered in Houston, has built on the lemonade stand concept with national Lemonade Day. Scheduled for May 2 this year, Lemonade Day is a national program designed to teach children how to start, own and operate their own business. It provides an opportunity for an entire community, including families, businesses, faith-based community organizations, youth organizations, neighborhoods and schools to come together for a common purpose—to train the next generation of entrepreneurs to become healthy, contributing members of society.

“Prepared 4 Life understands that youth are hungry for information about money—how to earn it, how to save it and how to invest it well,” says Michael Holthouse, entrepreneur and founder of Prepared 4 Life. Lemonade Day is the organization’s No. 1 educational and outreach priority.

Last year, more than 27,000 kids registered to create a lemonade stand, selling an estimated 2 million glasses of lemonade and donating almost a half-million dollars to a variety of charities. “The program has been so successful because of its real world experiential learning that takes students beyond the textbook and equips them with the skills needed to achieve success in a real marketplace,” Holthouse says. “Our ultimate dream is to bring Lemonade Day

to every city in America and to children across the country.”

Prepared 4 Life empowers youth to become adults who make a difference in society through its core, asset-based experiential programs such as Lemonade Day and Lemonade Day experience. It believes children learn better by integrating life skills, character education and entrepreneurship with engaging experiential, fun activities.

“We help youth take ownership of their lives and rise above their obstacles to become contributing and productive members of society,” Holthouse says.

Holthouse and his wife, Lisa, founded Prepared 4 Life after almost a decade of research, evaluating and funding many children’s programs through the Holthouse Foundation for Kids. At its inception, Prepared 4 Life worked in conjunction with Houston’s successful After-School All-Stars initiative and followed its engaging, fun mission with after-school activities primarily for middle school students.

In 2007, Prepared 4 Life founded Houston Lemonade Day, which led to the national Lemonade Day and the Lemonade Day Experience, an after-school curriculum for Houston-area middle schools.

Prepared 4 Life doesn’t stop with lemonade. It partners with pioneers in the field of social-emotional and academic development to create a solid team of agencies and institutions with proven abilities to promote healthy children and communities. Among these partners are the Search Institute, Baylor College of Medicine and Junior Achievement.

“Together we are committed to empowering students to believe in themselves and showing them they can make a difference in the world,” Holthouse says.

The Prepared 4 Life “Lemonade” curriculum teaches:• Empowerment (self-sufficiency)• Positive personal values• Commitment to life-long learning• Empathy• Constructive use of time• Healthy social interactions• Goal setting

MakeLemonade DayThis year, more than 10 U.S. metropolitan

areas will host Lemonade Day, having

hundreds of lemonade stands and selling

thousands of cups of the beverage.

Prepared 4 Life wants to have more than

100 U.S. cities hosting 1 million lemonade

stands by 2013.

To find out if your area supports Lemonade

Day, visit www.lemonadeday.org. Want to

start Lemonade Day in your region?

Contact Julie Eberly at (713) 626-5437 or

check the Web site.

Lemonade VALUESPrepared 4 Life bases its mission on

four values:

1 It’s all about the kids.

2 Passionate and caring service

3 Doing the right thing every time

4 Commitment to quality and excellence

Want to buy some lemonade?Tart drink offers sweet lessons in financial literacy

• Character and integrity• Organizational skills

As Holthouse explains, “a child with a good understanding of these fundamental concepts is better equipped with a basic framework to generate wealth and effectively manage it, to create jobs that make their communities robust and to apply entrepreneurial thinking in the workplace.

“We also hope to instill in children the idea and importance of philanthropy. Kids need to recognize that money can be used to accomplish something other than buying goods or entertainment, and understand the value of giving and the responsibility of being part of a larger community.” e

TECHNOLOGY


Work doesn’t take place only in the office anymore. Although the main office

continues to be used as the primary place of work, many professionals are spending at least part of their working week outside of that main office. As connectivity continues to improve, professionals are finding new places to work and professionals expect to be able to access the information they need, consistently and efficiently.

Remote workers hold the network and the IT department to higher standards, and in the pro-cess put the network under a more significant strain than ever imagined. The level of access end users demand in today’s corporate environ-ment and the requirements to ensure that access at all times are driving a new standard for the IT department and network infrastructure.

In the long term there needs to be an underlying communications infrastructure in place to support this ever-more-distributed workforce. A successful distributed work environment necessitates a dependable network infrastructure, so tasks like network performance, remote troubleshooting and bandwidth management all must be adapted to ensure they continue to operate optimally.

The “new normal” office environment For decades, organizations have based their infrastructure around a network of buildings that house employees, but that is no longer the case. This “new normal” office shift is because of the ability to support remote employees, allow-ing easier management of workforces from afar.

There are several benefits to running a highly distributed firm. Both organizations and employees suffer if the technology put in place to support a remote workforce does not deliver. With the right support and strong connectivity, management tasks do not need to take place within the main office and can instead be done from anywhere. This makes working or providing support outside normal work hours more practical. For IT staff, it allows them to carry out fixes when and from wherever they happen to be.

Distributed organizations typically have three main groups of remote workers: those located

in branch offices, those who are mobile and the external partners. Because the groups are disparate and have different needs, the support they need also tends to be wide-ranging. It’s often the network infrastructure and the tools that have been put in place to manage both the network and the end-user resources that determine the efficacy and success of remote workers. This includes how data can be shared between remote workers and the success of the widespread use of mobile devices.

When many remote workers must access large amounts of information, it can put a strain on the networks. Such situations can be extremely frustrating to employees who are trying to efficiently conduct business. While most IT staff agree that 10 seconds is too long for any remote worker to wait for an application to respond, there is typically an understanding that moving documents around takes longer with the inclusion of remote offices. External users who understand less about the network are likely to be less understanding when problems crop up. Organizations that rely on the Internet for both internal and external transactions must ensure that acceptable end-user performance is being delivered across the system. Furthermore, it is essential to give workers access to the applications they need. Today, this means software applications and numerous, large data files running in centralized data centers.

Assessing your network’s performanceSeveral culprits commonly lead to poor performance in remote and branch networks:• End-user activity—End-user activity has

an impact on network performance, espe-cially in remote locations that have limited IT oversight. With the desire to give end users unfettered access to the Internet, the network and applications, comes tremen-dous strain on the remote network. Non-essential network activity further aggravates the situation. Driven by policy enforcement, many organizations now realize that tighter enforcement of end user behavior is a signifi-cant step towards getting more bandwidth and network performance out of less.

Network nightmares avoided: Supporting remote and branch office workersBy Andrew Rubin, CEO, Cymtec Systems

AS A NETWORK SECURITY INCIDENT GOES, NOT MANY THINGS COULD BE MORE SEVERE THAN AN INFECTION THAT STARTS ON ONE MACHINE AND ENDS UP INFECTING MORE MACHINES.

THE LEADING EDGE 15

TECHNOLOGY

• Seen and unseen network threats—Most organizations are aware that remote offices are often the originating point of spyware, malware and botnet outbreaks. As a network security incident goes, not many things could be more severe than an infection that starts on one machine and ends up infecting more machines. Often these infections are acting as background processes that aren’t even noticeable to the IT department, yet they significantly degrade the bandwidth and performance of the network.

• Prioritizing what matters—Organizations with remote offices have realized the value of ensuring fast transport of data across the WAN. There is tremendous efficiency in managing data across a multi-site network. Despite putting these optimization technolo-gies in place, however, many of these same organizations still struggle with complaints from end users. Ensuring prioritization and allocation of bandwidth within the remote office environments has proven to be just as critical as getting the data to the site effi-ciently. IT can ensure that the critical traffic and applications run smoothly by taking a more active stance on the network.

• Enabling technologies—Organizations that embrace the opportunity of running a highly distributed organization are likely to have invested in remote collaboration technology. While these applications are essential for enabling remote workers, they must also be controlled by the IT department. Just as with organization-specific applications, these collaborative tools should be tightly managed around the capability of the remote network to avoid problems.

Highly distributed organizations are here to stay. Although there will always be new demands and challenges those who embrace supportive infrastructure, tools and policies will thrive and endure. Through active management of remote and mobile office networks, an organization can minimize the need for IT support and ultimately better utilize existing infrastructure to save resources.

Andrew S. Rubin is the president and chief executive officer of St. Louis-based Cymtec Systems. A graduate of Washington University, he previously worked as a telecommunications company business development manager. He can be reached at [email protected] or (314) 993-8700.

BRIEFS


SUGGESTION BOX OPENS DIALOGUEThe suggestion box at the workplace isn’t going empty. In fact, 57 percent of employees make suggestions regularly, according to a recent survey by Right Management, a division of Manpower.

In addition, 27 percent, which includes management and C-level executives, claim to submit more that 20 ideas a year. Thirty percent of workers made between 10 and 20 suggestions annually.

The online poll in partnership with LinkedIn received more than 600 responses throughout North America. Other findings:• The number of suggestions had no relation

to the size of the company.• About 6 percent of workers did not submit

any suggestions.• Sales teams (50 percent) were most likely to

submit ideas, followed by HR professionals (28 percent).

• Women (61 percent) were more likely than men (46 percent) to make more than 10 suggestions a year.

• Workers age 55 and older (76 percent) were more likely to make 10 or more suggestions than those aged 25 to 34 (51 percent).Right Management concluded that making

suggestions shows employees are thinking about

the performance of the organization and want to contribute above the requirements of the job.

The survey cautioned that companies without a suggestion box lose an opportunity to interact with their workforce. The company’s research has found that two top drivers of employee engagement are feeling valued by senior leaders and having employee opinions count.

“Be sure employees feel heard and have the chance not just to share ideas, but to make them happen,” Right Management recommended. e

NEW WEAPONS FIGHT ID FRAUD

HR DILEMMA:COSTS VS. TOP TALENT RETENTIONCompanies are closely watching overall workforce costs but also are focusing on how to keep top talent, a new survey shows.

Almost seven in 10 companies surveyed said that the primary driver for workforce decisions this year would be cost containment. A large majority also worries that their highest value employees won’t stick around when the economy picks up, according to Mercer’s “Human Capital Planning 2010: Defining the Talent Agenda.”

Approaching rewards in a way that includes career development and training lets companies attract and retain the employees who contribute the most, concluded the survey of 160 mid-size and large U.S. employers.

“Today’s business environment offers employers the perfect opportunity to take a fresh look at the talent they have, the talent they need and the best way to engage and reward employees going forward,” says Jason Jeffay, a principal in Mercer’s human capital consulting business.

For additional information about human capital and compensation planning, visit www.mercer.com/hcplanning2010. e

Biometrics and identity management offer solutions to combat the rapid growth of identity theft and increased exposure to security threats, as detailed in a recent white paper from Frost & Sullivan research and con-sulting team.

Vendors have developed technologies to integrate biometric and biographic data for identity resolution. Such a system uses facial and fingerprint recognition technologies to authenticate the identity of people as they interact within and across other information systems.

For example, one health care customer requires demographic data, including facial, 10-fingerprint and signature images for re-enrollment.

The information is used to issue new ID cards for benefits management and for back-end identity analysis. The objective was to improve benefits allocation, to reduce operative costs and to determine and act upon identity fraud.

The solutions can be configured for use in areas such as civil identification, law enforcement and justice, health care, banking, information fusion centers and benefits management.

For more details about “The Next Level of Identity Solutions: The Convergence of Biometric Identity Resolution and Identity Management Solutions” white paper, visit www.frost.com. e

THE LEADING EDGE 17

BRIEFS

SOCIAL MEDIA MUST-DOSThe Online Marketing Blogger from Top Rank Online Marketing asked experts for their “Must-Read Social Media Marketing Tips” and posted 25 of them at http://tinyurl.com/25socialmediamktgtips.

Charlene Li, founder of The Altimeter Group and best-selling author of Groundswell: Winning in a World Transformed by Social Technologies, offered these tips:• Never forget that groundswell is about person-to-

person activity. You are not speaking as the company but as a person. Practice your social media voice so it feels comfortable.

• Be a good listener. Let people know you are listening.• Be patient. Social media takes a long time because

you are going to be transforming your company, one person at a time.

• Be opportunistic. Start small with the people who are most passionate about building relationships with customers.

• Be flexible. You never know what’s going to happen so you have to constantly adjust your thinking and learn.

• Be collaborative. You need people from up and down the management chain to buy in.

• Most importantly, be humble. Remember that you are not as powerful as the groundswell. If you forget this, they will let you know.

Other social media experts from Dell, Comcast, HP, Home Depot, General Mills, Ford, UPS, Wells Fargo and prominent marketing firms also share their insight at http://tinyurl.com/25socialmediamktgtips. e

IMMIGRANTS HAVE ENTREPRENEURIAL SPIRIT

BUSINESS CONTINUITY PLANSCAN HELP PROFITSAlthough business continuity plans sometimes take a low priority on an overwhelmingly long to-do list, they can play an integral role in a company’s success beyond their intended purpose, according to Eric Pitcher, vice president of technology strategy at CA Inc.

Pitcher writes in Disaster Recovery Journal about how companies should use their business continuity plans to their extended advantage. Among his recommendations:

Use your business continuity plan as a sales differentiator. Your sales team can offer your organization’s business continuity plan as evidence the company is well-

prepared. Having the conversation gets the sales person in front of the client and opens up the opportunity to create or strengthen trust in an environment when most purchases are scrutinized more than ever before.

Identify insurance reduction opportunities. Be prepared to have your finance department share sanitized versions of the plan, demonstrate testing and report results so insurance providers can consider appropriate discounts.

Verify suppliers have valid and tested business continuity plans as one more way to reduce your company’s risks.

Use the knowledge gained in business continuity planning to analyze company operations, including workforce reductions as necessary.

To read Pitcher’s full article on DRJ Online visit http://tinyurl.com/profitbcplan. e

Immigrants in America are more likely than native-born U.S. residents to be college graduates, inventors, patent holders and entrepreneurs. And they tend to take bold yet savvy business risks, according to the new book Immigrant, Inc. by Robert Smith and Richard T. Herman.

Here are some characteristics of immigrants they say offer lessons for all of us.• Keen sense of adventure: Become an “outsider”

by traveling and living abroad. You might see opportunities others miss.

• Reverence for education: Seek life-long education. Enroll in continuing education at a local college or through online courses.

• Eagerness to collaborate: Find the very best and team up. Achieving success often requires tremendous collaboration.

• Tolerance for risk and failure: Make some big bets in your business and professional career. Immigrants and entrepreneurs both tend to take calculated risks and learn from failures.

• Passion, often borne of desperation: Act like you have nothing to fall back on and work like your life depends on it.

• Tendency to dream: Above all, dream big. Immigrants remind us that the American dream is alive and well. e

Q: What are the biggest mistakes and therefore lessons to learn about being a mentor?

A: Historically mentoring relationships were such that an older, more senior worker would take under his wing a younger employee and guide him through the circuitous route to adulthood. He would share his personal experiences and provide advice in the hope that the young man would apply what the older male learned though his experiences. The mentor gave of his knowledge, time and energy as he, more often then not, saw something of himself in the youth.

It’s a great experience to be chosen and nurtured by someone you respect. It also meant the mentee had a leg up, learned the lay of the land and received the right kind of help that accelerated his development. That has created a seductively romantic notion of the mentoring ideal. Today, in modern western societies, the composition of those able to mentor and those wanting to be mentored are no longer homogenous. The workforce is far more diverse; it’s made up of fewer and fewer people just like us, whoever we might be. Knowing this, I am not going to answer the question of lessons learned for those relationships that come naturally but rather focus on those of us who would like to mentor but don’t initially see ourselves in the eyes of a potential protégé. What we initially see are differences, not similarities.

Look around your office—it’s my hope you are seeing greater diversity. The composition of

Q&A

In a Nutshell by Chris DeSantisFORGET THE FIRST-DATE PROPOSAL APPROACH TO MENTORING

the entry-level people, those in need of mentors, most likely represents far greater diversity than the senior-level people. Basically this means that as a mentor, fewer mentees are just like me. It means the historical approach to mentoring has to change. It means we, as mentors, have to embrace the new workforce and find ways to develop relationships with young people who may look and act differently from us. Once we get past these differences we will see that the prospect mentees probably want what all of us want, to be listened to, nurtured, developed and respected. Mentoring needs to be inclusive in a way that becomes the norm.

The first mistake we make is probably even using the word mentor early in a relationship. I look at it this way: imagine you are on a first date and the person you are with says the two of you should get married. I would guess there would be no second date. This person might actually be someone to marry but the weirdness of setting up that kind of expectation on a first date borders on creepy. Formal mentoring relationships can have that same forced expectation and therefore fail before they begin.

The first lesson is to let go of entering into this as a mentoring relationship. This is just a dialogue and if something comes of it, then another conversation might be something to consider. Take your time getting to know someone and be clear that not everyone is a match but entertain the possibility and give the other person the benefit of the doubt.

The operative word is dialogue. The greater the apparent differences between the two of you, the more important it becomes that each of you is allowed to speak and, just as importantly, required to listen. Along the way, set up some guidelines around expectations you have of the other and what each of you will honor. I’d rather you committed to fewer things but followed through than be extravagant in your commitments and fail to live up to them.

Another lesson here is that until someone really knows and

loves us, we are judged by our behaviors, not our intentions. The greater the number of differences between potential mentor and protégé, the greater the chance of interpreting lack of follow-through as a personal slight. We view the actions of others through our own “cultural” lens so it is necessary to be clear, consistent, kind, patient and persistent.

There is a great deal more to be said about being a mentor to someone who is apparently different from you than can be expressed in this column. Differences take many forms, besides the obvious ones of gender, race and ethnicity. Consider too the differences in aspirations, needs, customs and values. While getting people to open up about who they are may sound difficult, once you get the hang of it, it will profoundly change how you see and interact with the world around you.

If you have the desire to help those who follow, then be willing to understand them as they are. If and when this young person becomes your protégé and feels truly understood, you will be able to guide, cajole, teach and harangue as needed. The joy derived will be not only what you pass on to them but what you learn about yourself along the way.

Chris DeSantis uses his 20 years’ experience in training and development as an independent consultant. He specializes in the design and delivery of management and organization development interventions. A presenter at Leading Edge Alliance seminars, DeSantis focuses his work on assisting individuals or groups in identifying obstacles to effectiveness

and subsequently works with them to create user friendly solutions

aligned with the company’s strategic initiatives. He

earned his undergraduate degree from the University of Notre Dame, an MBA from the University of Denver and an MA in

organizational development

from Loyola University.


The Leading Edge offers:

• Access to the best and brightest CPAs and business advisors—a peer-to-peer connection that provides the right solutions for clients.

• Innovative, practice-proven strategies for improving performance in management, business processes, finance, operations, information technology and marketing.

• A leading knowledge resource for multi-disciplinary information andindustry-specific expertise responsive to clients’ unique needs.

• The strength and reputation to attract the highest quality team members.

• The Alliance offers accounting and consulting services through a global network of firms with more than 15,000 professional staff in more than 430 offices.

• The Leading Edge Alliance offers world-class business advisory expertise and experience with innovation, progressiveness and quality.

To find out more about The Leading Edge Alliance, visit www.LeadingEdgeAlliance.com or contact Karen Kehl-Rose, president, at (630) 513-9814 or [email protected].

The Leading Edge Alliance is an international professional

association of independently owned accounting and consulting firms. The

Alliance enables member firms to access the resources of a multibillion-dollar

global professional services organization, providing business development,

professional training and education, and peer-to-peer networking

opportunities nationally and globally, around the corner and around the world.

Members are top quality firms who are very successful, have deep client

relationships, and strong ties to the community. The Alliance provides

members with an unbeatable combination: the comprehensive size and scope

of a large multinational company while offering their clients the continuity,

consistency and quality of service of a local firm. Member firms have access to

the best and brightest team of business advisors—a peer-to-peer connection

that provides the right business solutions for clients.

AlabamaAlbaniaAfghanistanArgentinaAtlantaAustraliaAustriaAzerbaijanBahrainBaltimoreBangladeshBelgiumBoliviaBostonBrazilBritish Virgin IslandsBuffaloBulgariaCayman IslandsChattanoogaChicagoChileChinaCincinnatiClevelandColombiaCroatiaCyprusCzech RepublicDallasDaytonDenverDominican RepublicEcuadorEgyptEl SalvadorFinlandFort LauderdaleGhanaGermanyGreeceGuatemalaHarrisburg, PAHartfordHong KongHonoluluHouston

HungaryIndiaIndianaIndonesiaIowaIrelandIsraelItalyJordanKazakhstanKenyaKnoxvilleKoreaKuwaitLas VegasLatviaLebanonLexingtonLondonLos AngelesLuxembourgMacedoniaMadison, WIMalaysiaMaltaMauritiusMemphisMexicoMiamiMichiganMinneapolisMissouriMoldovaMontenegroMontrealMoroccoNashvilleNebraskaNetherlandsNew OrleansNew JerseyNew YorkNew ZealandNorth CarolinaNorwayOrange County, CAOregon

PakistanPalestinePanamaParaguayParisPeruPhiladelphiaPhoenixPhilippinesPittsburghPolandProvidencePuerto RicoRichmondRenoRomaniaRussian FederationSan FranciscoSaudi ArabiaScotlandSeattleSenegalSerbiaSingaporeSlovakiaSloveniaSouth CarolinaSpainSwedenSwitzerlandTaiwanThailandTokyoTorontoTucsonTunisiaTurkeyUkraineUnited ArabEmiratesUgandaUruguayU.S. Virgin IslandsVenezuelaWashington, D.C.VietnamVirginia/West Virginia

The members of the Leading Edge Allianceare leaders in many key markets, including:

Visit LeadingEdgeAlliance.com for a detailed listing of member firms.

THE LEADING EDGE 19

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