Preface xiii Acknowledgments xvii Introduction xix CHAPTER 1. The Financial Advisory Business: What s Next? 1 What Are Top-Performing Firms Doing? 3 The Business as Client 4 10 Things to Think About 4 CHAPTER 2. Strategic Business Planning: Defining the Direction 11 Muddled Messages 12 What Is Your Strategic Differentiator? 14 What Is Strategic Planning? 14 The Strategic Planning Process 16 CHAPTER 3. ManagingWorkflow: The Back OfficeMoves Forward 35 Sources of Inefficiency 36 Achieving Efficiencies 37 Does Efficiency Come at a Cost? 39 Managing Risk 45 CHAPTER 4. Building Leverage and Capacity 55 Getting to the Next Stage 56 Becoming a Market Dominator 57 The Challenge of Growth 58 The Entrepreneurial Crossroads 59 Cornerstones of the Professional Practice 66 Models That Work 68 Leveraging Your Affiliations 72 Big Is Beautiful 76 CHAPTER 5. The Human Capital Plan: People Who Need People 81 The Problem You Can t Do Without 82 Aligning Human Capital with Strategy 83 The Nature of the Work 86 The Nature of the Worker 90 The Interviewing Process 93 CHAPTER 6. Creating a Positive Workplace: Professional Development 99 The Career Path 101 The Appraisal Process 104 Coaching and Development 107 The Workplace 109 Building a Foundation 114 The Four-Way Test 115 Lessons on Inclusion 125 CHAPTER 7. Rewarding Behavior and Performance: Compensation Planning 129 Developing a Plan 135 The Components of Compensation 139 Establishing Base Compensation 149 Establishing an Incentive Compensation Plan 150 Owner s Compensation 153 CHAPTER 8. Reading the Financials: Financial Management 155 Fundamentals of Accounting 155 Constructing a Financial Statement 156 Tying the Financials Together 165 CHAPTER 9. Income, Profit, Cash Flow: What the Numbers Are Saying 167 Formatting the Financials 168 Analyzing the Income Statement 169 Analyzing the Balance Sheet 179 Analyzing the Statement of Cash Flow 184 Financial Impact Analysis 185 CHAPTER 10. Managing Growth: The Search for Solutions 189 Harnessing Resources 190 Using Financial Leverage 192 Managing Cash Flow 194 How About Equity? 195 Referral Agreements and Joint Ventures 196 Practice Acquisitions 199 Investments in New Initiatives 203 CHAPTER 11. Exit, Stage Left 205 The Price of Indecision 206 Sale Planning versus Succession Planning 207 Wisdom or Obsolescence? 209 What to Do? 210 Keeping It in the Family 211 How to Make a Partner 217 What About the Successor? 223 Merger as a Succession Plan 226 So What Do You Do? 228 Seeking Counsel 230 Developing the Assumptions 231 Take Control 232 CHAPTER 12. On Leadership andManagement 235 What Defines a Leader? 236 Who Will Emerge? 239 Is Anybody Leading? 240 Rites of Passage 242 Ready, Fire, Aim 244 Awakening the Manager in You 248 Practice What We Preach 251 Hiring Your Boss: Do You Need a CEO? 251 Afterword 257 Appendix 261 About the Authors 297 Index 299
Mark C. Tibergien is Chief Executive Officerfor Pershing Advisor Solutions LLC, a BNY Mellon company, and a Managing Director and memberof the Executive Committee for Pershing LLC. Foreight consecutive years, Accounting Today has recognized Mr. Tibergien as one of the "100 MostInfluential" people in the accounting professionand Financial Planning has identified him as a "Mover and Shaker" in their annual review of industry professionals. In 2011, for the ninthtime, Investment Advisor recognized him as one of the "25 Most Influential" people in the financialservices industry. Rebecca Pomering is a partner with Moss Adams LLP and CEO of Moss Adams Wealth Advisors, the firm's wealth management division, where she is responsible for the growth of the firm, including strategic planning, sales and marketing, team development, human capital, CPA firm integration, financial management, and mergers and acquisitions.