strategic accounting
DESCRIPTION
GGN GROUP, LLC Results Through Change™. Strategic Accounting. MACE December 2012 Mark Nelson & Dan Gomez. GGN Group. Three Things You Should Know About GGN We are a group of business owners and executives with a history of starting, building and managing companies. - PowerPoint PPT PresentationTRANSCRIPT
Strategic Accounting
MACE December 2012Mark Nelson
&Dan Gomez
GGN GROUP, LLCResults Through Change™
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GGN GroupThree Things You Should Know About GGN1. We are a group of business owners and
executives with a history of starting, building and managing companies.
2. Our clients are business owners who want an outside perspective on making significant changes
3. We use disciplined and proven management processes to get results
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Definition - Accounting
• Practice and body of knowledge– Methods for recording transactions– Keeping financial records– Reporting and analyzing financial information– Advising on taxation matters
• Accounting provides information on
– Resources available to a firm– The means employed to finance those resources– The results achieved through their use
Where the rubber meets the road
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Definition – Strategy
• The art and science of enabling an organization to achieve its objectives
• A long term plan of action designed to achieve a particular goal(s).
• A series of top-level management decisions which help navigate the direction of the corporation
Strategy answers the question of how a company will deliver its value proposition to
its customers
Where the rubber meets the sky
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Accounting & Strategy
At the Intersection of Strategy and Accounting is Measurement
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Measurement is the key to translating
strategy into actions
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• Balanced Scorecard– Management system– Translates strategy into measurable
actions– Integrated set of performance
measurements that require• Data gathering• Measuring• Analysis and interpretation• Communication
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• The Role of Accounting – Identify measurements– Collect and record data– Verify, summarize and interpret data– Report and communicate results
Definition of Accounting
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Balanced Scorecard Overview• View and measure organization from four perspectives
– Financial
– Customer
– Business Process
– Learning & Growth
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Three Strategic ThemesCustomer Intimacy
Innovation Efficiency
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Actual Case
The Law Firm
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Case Facts
• The firm has been in business for more than 25-years• Many of the firm’s practice areas are highly competitive• Much of the billings are contingent fee based. It’s either
“feast or famine”.• There is now a sense of urgency to build sustainable and
transferable firm value.
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Goals and Strategies
• Overall goals:– Create a business model with a more predictable
revenue stream– Increase annual billings by XXX% over the next
three years• Strategic Theme – Client Intimacy / Efficiency– Make it easy– Do it quickly– Keep it affordable
Vision and Mission
Vision – How we define success
Our firm will be the region’s preeminent provider of
We will be the firm that others refer their clients to.
Mission – What we get paid to do
Our mission is to help people successfully deal with crisis
Financial Perspective
Significant growth in Niche Specialty Market
Create sustainable and transferable firm value
Client Delight – Make it quick, easy, effective
Client PerspectiveOur Value Proposition Deal with
the Crisis ASAP
Value easily
understood
Quick and Easy to
Implement
Quick and Easy Intake
Process Perspective
How we deliver value
Continuous Employee Training
Continuous Process Improve
Learning & Intangibles
What knowledge do we need to operate our
processes
The Law Firm– Strategy Map
AwarenessEducation
Perspective Objective Measurement Targets InitiativeReference
Financial • Predictable positive cash flow• Increased revenue
• Partners compensation
• Total firm annual revenue
• $XXX thousand annual compensation
• $X.X million total revenue
Client • Make it easy for clients• Make it valuable
• Client closes per month• Revenue per case
• Average X per month• Average $X per case
Scorecard
Perspective Objective Measurement Targets InitiativeReference
Process • Educate and build awareness with aggregators
• Effective intake process
• Quick and Easy resolution
• “Productize” the process
• Number of referrals
• Days between intake and decision on qualification
• Days to resolve case
• Professional time per client
• 50-referrals per month
• 5-days
• Total elapsed time is 60 days
• Not to exceed 8 hours
Learning • Best known “Brand”
• SME Certification
• Hits to web site• Public relations (i.e.
published articles or whitepapers)
• legal staff certified
• 5,000 per month• 4 published articles
per year
• 100% of legal staff certified
Scorecard
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Summary
Accounting information plays a key role in strategic planning especially when it
comes to measurements
Measurement is critical to transforming strategy into actions
