Accounting leaders: Strong strategy starts with shared clarity

Has your firm ever rolled out a shiny new strategic plan only to watch it collect dust faster than last year's tax guides? Derek Distin, vice president of community at Rightworks, knows exactly why.

As a leadership advisor and longtime guide within the Rightworks community, he's made a career out of helping firms close the maddening gap between what they say they want and what they actually do on a day-to-day basis. Distin's take is simple: your team can't execute on goals they didn't help shape or don't fully understand.

Here, he breaks down how clarity, intent and empowerment turn strategy from an annual ritual into a year-round habit and explains why your best outcomes come from getting out of the way.

—Interview by Janet Berry-Johnson, edited by Bianca Prieto

Many firm leaders set bold strategic goals but struggle with follow-through. What do you think is the biggest disconnect between strategy and execution?

The good news is it’s not unique to accounting, so it's not an existential threat to the profession. It’s two sides of the same coin. First, the people tasked with execution were not brought in to consult on the process as goals were set.  And second, the people who must implement actions don't clearly understand the importance (and reasoning behind deciding on) the goals. By explaining desired outcomes and discussing goals, you can uncover hidden obstacles and achieve better buy-in. The coin is the goal setting and you need to polish it long before it goes into circulation.

What steps can firms take to ensure that their strategic plan is part of day-to-day decision-making and operations? 

Be clear about desired outcomes. Talk about intent. Then let your people execute. Spend your time microphoning the why, not micromanaging the how. I have a Post-it note on my monitor that says, “Give Intent, not instruction.” The best outcomes I see come from firms that spend more time up front ensuring people understand the strategic goals and then get out of the way and empower the team to achieve. After all, the team members are the ones who are really in charge of the day-to-day, not leadership.

How can firms engage their team members in executing strategy when they’re juggling busy seasons, client demands and competing priorities? 

I’ll say this until I’m blue in the face: it comes down to clarity of goals. Explaining the why behind strategy and seeking team input when setting goals creates the conditions for buy-in. Without buy-in, team members will default, intentionally or unintentionally, to how they've always done things. If your team buys in because you explained and involved them during strategic planning, you won’t have to worry about them remaining engaged.  Competency in role + clarity of goal = granting them control.  

In your work with the Rightworks community, what habits or systems have you seen successful firm leaders adopt to keep strategy front and center throughout the year?

I’ve worked with many, many leaders over the years and we have hit on a solution that has proven to be successful: implement three questions everybody asks at every opportunity. Is this aligned with strategy? Is it the right thing to do for our clients? Can I explain my decision? If the answer is “yes” to all three, then that person gets to make the decision. If I, as a firm leader, have clearly explained intent and seen competency, then by empowering my team, I guarantee it remains top-of-mind in the collective consciousness of the team, ensuring year-round focus. Those three questions work amazingly well in all areas, it should be noted!

The Net Gains is your one-stop shop for fresh, FREE accounting insights. You can reach the newsletter team at thenetgains@mynewsletter.co. We enjoy hearing from you.

Interested in advertising? Email us at newslettersales@mvfglobal.com

 If you've been enjoying the newsletter, don't keep it a secret. Share it with an industry colleague. (Copy the link here.)

The Net Gains is curated and written by Janet Berry-Johnson and edited by Bianca Prieto.