Q&A: The 3-question test for every task in your firm

What role can Lean and Six Sigma play in helping accounting firms build capacity without putting client data at risk?

Lean and Six Sigma are all about getting good business foundations in place and building efficiency and effectiveness from there—nothing fancy. Start by documenting your processes to obtain a baseline starting point and understand how things are really getting done today (not how we "think" or "want" them to be done, but how they're actually done). 

Next, evaluate each step of the process: Is this done right the first time? Does it physically transform the product or service? And is a customer or client willing to pay for it? If the answer is not YES to all three questions, then we look to eliminate or automate the step accordingly. By mapping processes first, firms can identify where sensitive data is handled and ensure that any subsequent automations comply with security standards.

It's really that simple, but unfortunately, most businesses are trying to use AI to "by-pass" a solid business foundation which will only result in more problems. 

Beyond automation, where can firms find opportunities to free up capacity in their day-to-day operations?

When talking about freeing up capacity, one of my favorite, high-impact tasks is to evaluate and re-align communications needs across the organization. Evaluating all communications under the framework of Roles & Responsibilities can free up time and mental space far quicker and easier than automation or AI ever could and makes a drastic impact to the day-to-day lives of the humans within the system by reducing friction, overlap and gaps and by making sure the right people are involved at the right times and in the right ways. Businesses would be a lot more successful if they focused on their people and how to make their people successful vs. how to make their people "do more."

Why is it important for firms to fix their underlying processes before introducing AI and automations?

The introduction of AI has made many people forget that business is still business, and that having good, solid business foundations coupled with mature business processes can't be beat. Nothing can fix bad business foundations and broken processes, and automating them only automates the brokenness. 

Solid business foundations unlock sustainable success and are also the most important first step that's often ignored or pushed aside for AI. Which is ironic because in order for AI and/or other automations to work and provide benefits within the business, they require mature business processes and a solid business foundation. 

Good business practices aren't sexy or flashy, but they produce results, and they last. 

Good news: Companies can typically see a 20 to 35% increase in operational efficiencies from Lean and Six Sigma process optimization techniques and 10 to 15% for simply ensuring communications are to the right people at the right time. Even better news: this is not limited to small accounting firms and can be used across all industries because having good business foundations and processes IS good business.

What are some results you've seen accounting firms experience after implementing some of these best practices?

The core bottleneck usually comes down to undocumented workflows and a blind spot at the leadership level—because everyone thinks they know how things are getting done while few are actually correct.

While working with an accounting firm, a small, seemingly insignificant process of creating and sending registered letters became the perfect example. Management and staff alike assumed there was only one way to execute the task within the system, but by actually watching the process, we found two completely different methods being used—and one of them took five times longer than the other.

It sounds like a tiny detail, but it’s a window into how hidden friction builds up. Once we aligned on the best way to do it, the team was thrilled to have a clear, easy path forward, and management got a great reminder of how small fixes can instantly free up time.

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