Leading and Mentoring Leading and Mentoring Your CPA Firm to Your CPA Firm to

SuccessSuccess

By Rex Gatto, Ph.D.By Rex Gatto, Ph.D.

Gatto Associates, LLCGatto Associates, LLC

412-344-2277412-344-2277

rexgatto.comrexgatto.com

OverviewOverview

Review Four Sections in the Mentoring Process Review Four Sections in the Mentoring Process for CPAs Bookfor CPAs Book

Why CPA Firms need a Mentoring ProcessWhy CPA Firms need a Mentoring Process Leading a Mentoring Process at your firmLeading a Mentoring Process at your firm Skills needed to be a MentorSkills needed to be a Mentor Outcomes from MentoringOutcomes from Mentoring

Benefits Benefits of this presentation, you will have of this presentation, you will have methods to coach and mentor people moving methods to coach and mentor people moving your firm toward successyour firm toward success

SECTION ONESECTION ONE

INTRODUCING THE INTRODUCING THE CONCEPT OF CONCEPT OF MENTORINGMENTORING

Reflective thoughtReflective thought

I’ve seen what a difference good mentors I’ve seen what a difference good mentors can make, both in the lives of individual can make, both in the lives of individual CPAs and the firms where they work. The CPAs and the firms where they work. The mentoring relationship is dependent on a mentoring relationship is dependent on a two-way street of trust, with payback to two-way street of trust, with payback to both the mentor and the mentored.”both the mentor and the mentored.”

President of an AssociationPresident of an Association

Greek Mythology Greek Mythology (p. 7)(p. 7)

Odysseus, while Odysseus, while away from home away from home during the Trojan during the Trojan War, had his War, had his servant, Mentor, servant, Mentor, educate and educate and guide his son.guide his son.

Mentoring DefinitionMentoring Definition (p. 8) (p. 8)

A deliberate pairing of a A deliberate pairing of a more skilled or more skilled or experienced experienced person person (mentor) with a lesser (mentor) with a lesser

skilled or experienced person skilled or experienced person (mentee), Mentor teaches you to be (mentee), Mentor teaches you to be a better business person.a better business person.

What is CoachingWhat is Coaching

CoachingCoaching … is situational and … is situational and focused focused on a skill seton a skill set to achieve success to achieve success client client presentation, audit/ tax.presentation, audit/ tax. ) )

The coach is on the field and teaches The coach is on the field and teaches you to be a better position playeryou to be a better position player

Mentoring Manual Mentoring Manual (p. 10)(p. 10)Four Sections in the bookFour Sections in the book

Background information Background information and philosophy of and philosophy of mentoringmentoring

Skills for mentorsSkills for mentors Tools to aid for beginning, Tools to aid for beginning,

supporting and closing the supporting and closing the processprocess

Succession planning as Succession planning as part of mentoringpart of mentoring

LeadershipLeadership

Establishing the future goals of the firmEstablishing the future goals of the firm

Aligning people to make the goals a realityAligning people to make the goals a reality

Inspiring people in your firm to want to work Inspiring people in your firm to want to work togethertogether

Succession planning creates leadersSuccession planning creates leaders

Employee RetentionEmployee Retention (p. 11) (p. 11)

Challenging workChallenging work Work-life balanceWork-life balance Professional developmentProfessional development Career developmentCareer development Personal growthPersonal growth Communication flowCommunication flow Competitive salary and benefitsCompetitive salary and benefits

Environment that RetainsEnvironment that Retains (p. 12) (p. 12)

Firm Mission StatementFirm Mission Statement Firm Structure/ CultureFirm Structure/ Culture OrientationOrientation Leadership FollowershipLeadership Followership CommunicationCommunication Career PathCareer Path

QuestionsQuestions

How does mentoring differ from Performance How does mentoring differ from Performance Appraisal?Appraisal?

Do YOU approach mentoring as Billable time Do YOU approach mentoring as Billable time or Investment time?or Investment time?

What are the benefits of regular meetings What are the benefits of regular meetings with your mentee?with your mentee?

Perceptions about the Perceptions about the Firm Firm (p. 15)(p. 15)

Why people stayWhy people stay Why people leaveWhy people leave

Job satisfactionJob satisfaction

Challenging workChallenging work

Effective relationships Effective relationships with clientswith clients

Open and flexible climateOpen and flexible climate

Satisfactory relationship Satisfactory relationship with bosswith boss

Recognition for successRecognition for success

Job frustrationJob frustration

Non challenging workNon challenging work

Micro managed with Micro managed with clientsclients

Less freedom & flexibilityLess freedom & flexibility

Poor relationship with Poor relationship with bossboss

Lack of recognitionLack of recognition

Mentor Actions Mentor Actions (p. 16)(p. 16)

Vested interest in successVested interest in success CoachCoach Professional relationshipProfessional relationship SponsorSponsor Role modelRole model Create safe environmentCreate safe environment Support - not evaluateSupport - not evaluate Influence & guide in Influence & guide in

positive direction positive direction Guide professionally and Guide professionally and

personallypersonally

Observe & discuss Observe & discuss interactions and skillsinteractions and skills

Provide adequate & Provide adequate & appropriate feedbackappropriate feedback

Encourage personal visionEncourage personal vision Discuss career & business Discuss career & business

objectivesobjectives Discuss strengths & Discuss strengths &

character qualitiescharacter qualities Discuss changes and future Discuss changes and future

expectationsexpectations

Mentee Development Mentee Development (p. 18)(p. 18)

ProfessionalProfessional Goal settingGoal setting Career developmentCareer development CommunicationCommunication Problem solvingProblem solving Leadership and Leadership and

followershipfollowership Decision makingDecision making Feedback/feed forwardFeedback/feed forward

PersonalPersonal Positive self-regardPositive self-regard MotivationMotivation Controlled stress levelControlled stress level Conflict resolutionConflict resolution Empathy; ability to build Empathy; ability to build

rapportrapport Appropriate priority settingAppropriate priority setting Work/life balanceWork/life balance

Benefits Benefits (p. 19)(p. 19)

Mentor BenefitsMentor Benefits

Mentee BenefitsMentee Benefits

Firm BenefitsFirm Benefits

QuestionsQuestions

Benefit from Benefit from leadership 360˚ leadership 360˚ ReportsReports

Discuss the FIRM with Discuss the FIRM with the Mentee?the Mentee?

Points of Discussion #1Points of Discussion #1Mentor Action PlannerMentor Action Planner

Firm’s history and cultural developmentFirm’s history and cultural development Review operating (partnership/bylaws, Review operating (partnership/bylaws,

etc.) agreementetc.) agreement Organization chartOrganization chart Functions of management and committeesFunctions of management and committees

What were the results of this What were the results of this discussion?discussion?

Points of Discussion #2Points of Discussion #2

Firm’s vision, mission and long-range Firm’s vision, mission and long-range goalgoal

Practice philosophyPractice philosophy Service goalsService goals Practice development goalsPractice development goals Community service goalsCommunity service goals

What were the results of the What were the results of the discussion?discussion?

DEVELOPINGDEVELOPING

MENTORING SKILLSMENTORING SKILLS

SECTION TWOSECTION TWO

Mentor Response Mentor Response Assessment Assessment (p. 21)(p. 21)

Statement I ResponsesStatement I Responses

Choose one of the following responses.Choose one of the following responses.11 You feel you are a very ambitious man, is that right? You feel you are a very ambitious man, is that right?

22 Why do you think you have such a strong need for success? Why do you think you have such a strong need for success?

33 That’s good. You should soon get to the top with that attitude. Let me know if I That’s good. You should soon get to the top with that attitude. Let me know if I can help you in any way.can help you in any way.

4.4. It seems to me that your need for success is so strong that it outweighs It seems to me that your need for success is so strong that it outweighs your need to be popular.your need to be popular.

5.5. It will make you very unpopular here if you maintain that attitude … that’s It will make you very unpopular here if you maintain that attitude … that’s not how we do things here at all.not how we do things here at all.

Scoring Grid Scoring Grid (p. 26)(p. 26)

E I S P U

Statement I 5 4 3 2 1

Statement II 1 5 3 2 4

Statement III 3 2 1 5 4

Statement IV 4 3 5 1 2

Statement V 2 1 5 3 4

Totals

Setting Mentoring Tone Setting Mentoring Tone (p. 28)(p. 28)

StrengthsStrengths

EvaluativeEvaluative

Interpretive Interpretive SupportiveSupportive

ProbingProbing

UnderstandingUnderstanding

Areas for Areas for DevelopmentDevelopment

EvaluativeEvaluative

Interpretive Interpretive SupportiveSupportive

ProbingProbing

UnderstandingUnderstanding

Four Mentoring Types Four Mentoring Types (p. 30)(p. 30)

Mean MentorMean Mentor

Meandering MentorMeandering Mentor

Mindless MentorMindless Mentor

Marvelous MentorMarvelous Mentor

Effective Listening Effective Listening (p. 33)(p. 33)

Listen without Listen without rebuttalrebuttal

Make eye contactMake eye contact Nod acceptanceNod acceptance SmileSmile FocusFocus ParaphraseParaphrase

HEARHEARHHonestly listen without onestly listen without

rebuttalrebuttal

EEmpathize by mpathize by rememberingremembering

AAcknowledge and cknowledge and paraphraseparaphrase

RRespectfully respondespectfully respond

Why People Do ListenWhy People Do Listen

Build a connectionBuild a connection Identify and Identify and

understandunderstand Identify level of Identify level of

understandingunderstanding Identify actions to be Identify actions to be

takentaken LearnLearn Are interestedAre interested It is worthwhileIt is worthwhile

How to Address QuestionsHow to Address Questions

Listen to terms - Listen to terms - general or specificgeneral or specific

How are questions How are questions asked?asked?

Address questions in Address questions in same mannersame manner

No answer - pause, No answer - pause, ask questions in ask questions in responseresponse

Four Stages of Feedback Four Stages of Feedback (p. 35)(p. 35)

1.1. Astonished - You can’t mean Astonished - You can’t mean me!me!

2.2. Anger - You do mean me!Anger - You do mean me!

3.3. Abandon - You can’t be serious!Abandon - You can’t be serious!

4.4. Acceptance - You are serious!Acceptance - You are serious!

Focus Focus (p. 36)(p. 36)

FFocus on key issuesocus on key issues

OOffer opportunities for developmentffer opportunities for development

CCreate care and empathyreate care and empathy

UUnderstand - have acceptancenderstand - have acceptance

SSupport strengthsupport strengths

Mentee Roles During Mentee Roles During Feedback Feedback (p. 36)(p. 36)

AnalyzerAnalyzer WhinerWhiner RejecterRejecter VictimVictim ControllerController

Establish the Mentoring Establish the Mentoring Environment Environment (p37)(p37)

Climate

Input

Support

Feedback ClimateClimate InputInput SupportSupport FeedbackFeedback

Create an Create an environment that environment that develops leaders develops leaders

Motivation Motivation (p. 40)(p. 40)

Opportunity for developmentOpportunity for development Ask what will motivateAsk what will motivate DesireDesire Support abilitiesSupport abilities Strengthen skillsStrengthen skills ListenListen Be realisticBe realistic Build EsteemBuild Esteem

Performance = Performance = Ability Ability X X EffortEffort (Competence)(Competence) (Motivation)(Motivation)

Guide to Mentoring Guide to Mentoring (p. 42)(p. 42)

Establish a safe working Establish a safe working relationshiprelationship

Build good rapportBuild good rapport Establish an open, supportive Establish an open, supportive

environmentenvironment Give feedbackGive feedback Ask mentees to write goal reportAsk mentees to write goal report Ask mentees how you can helpAsk mentees how you can help Inquire how mentees are achieving Inquire how mentees are achieving

goalsgoals

Mentoring Skills Mentoring Skills (p. 43)(p. 43)

Listen without judgingListen without judging Help to problem solveHelp to problem solve Advise - don’t dictateAdvise - don’t dictate Encourage - draw outEncourage - draw out Guide - don’t directGuide - don’t direct Be safe haveBe safe have Ask questionsAsk questions Pull out - don’t push Pull out - don’t push

inin

Take notesTake notes Use wisdom with care Use wisdom with care

and compassionand compassion Build future of menteeBuild future of mentee Be a role modelBe a role model

Phases - Mentoring Process Phases - Mentoring Process (p. 44)(p. 44)Phases Duration Development

Phase One

Initiation

Immediatelyto one year

Mentee gets to know mentor; meet formallyonce a month, define goals and expectations;development of work-related and people-related skills

Phase Two

Cultivation

After threemonths up totwo years

Development of an action plan; developmentand implementation of skills, increase trustand openness, receive recognition frommentor and from others

Phase Three

Separation

Three to sixmonths afterPhase Two

Begins after mentee has developedconfidence: needs to work autonomously,assumes greater responsibility andopportunities; goals met

Phase Four

Autonomy

Ongoing Mentee can become mentor; receivesrecognition from clients; developed skills;doesn’t need to work with a mentor any longerbut can still use mentor as a sounding board

Mentor Outline Mentor Outline Mentor Action PlannerMentor Action Planner

Phase One Initiation Pages 51-55 Phase One Initiation Pages 51-55 (Work paper 72-74)(Work paper 72-74)

Phase Two Cultivation (Assessments, Phase Two Cultivation (Assessments, pages 77-92)pages 77-92)

Phase Three SeparationPhase Three Separation Phase Four Autonomy (succession Phase Four Autonomy (succession planningplanning

pages 99-102)pages 99-102)

SECTION THREESECTION THREE

TOOLS FOR THE TOOLS FOR THE MENTORING MENTORING

PROCESSPROCESS

TopicsTopics

Choosing a Mentor (p. 50)Choosing a Mentor (p. 50) Goals Report (p. 52)Goals Report (p. 52)

Supplemental MaterialSupplemental Material

Mentor Mentee Action PlannersMentor Mentee Action Planners

Mentor Preparation Mentor Preparation Meeting Meeting

Mentor script (p. 53)Mentor script (p. 53) Questions (p. 54)Questions (p. 54) Follow-up Follow-up

mentoring meetings (p. 55)mentoring meetings (p. 55)

Mentee Assessment Mentee Assessment (pps. 56-67)(pps. 56-67)

Profile Characteristics of a

High Potential CPA

The Whole Person

Professional Presence

Practice Development

Problem Solving

Teamwork

Leadership

Creativity

Integrity

Communication

Adaptability

Business Knowledge

Interpersonal Relationships

Client Relationship

Initiative

Accountability

Planning

Computer Knowledge

Work Papers Work Papers (pps. 68-85)(pps. 68-85)

Mentee and Mentor Work Papers Mentee and Mentor Work Papers

Pre- and Post-Engagement Meeting Pre- and Post-Engagement Meeting AgendasAgendas

ToolsTools

Anatomy of the CPA Leader (p. 86)Anatomy of the CPA Leader (p. 86)

Build Your Mentee’s Profile (p. 89)Build Your Mentee’s Profile (p. 89)

Mentor’s SurveyMentor’s Survey

Section A - Assessment (p. 93)Section A - Assessment (p. 93)

Section B - Self-assessment (p. 94)Section B - Self-assessment (p. 94)

SECTION FOURSECTION FOUR

THE SUCCESSION THE SUCCESSION

PLANNING PROCESSPLANNING PROCESS

Succession Planning Succession Planning Process Process (p. 99)(p. 99)

PlanningPlanning Identifying new Identifying new

leadersleaders Retiring partners Retiring partners

create opportunitycreate opportunity Career planCareer plan Transitioning partnersTransitioning partners Focus on the futureFocus on the future

Conditions of ExcellenceConditions of Excellence (p. 103) (p. 103)

Client orientationClient orientation ParticipationParticipation LeadershipLeadership DevelopmentDevelopment MotivationMotivation Products & servicesProducts & services Processes & Processes &

proceduresprocedures Information Information

CommitmentCommitment CultureCulture PlanningPlanning CommunicationCommunication AccountabilityAccountability ProfessionalismProfessionalism Teamwork Teamwork

RAIBORAIBO (p.106)(p.106)

ResponsibilitiesResponsibilities Value and organizational Value and organizational

impactimpact Action IndicatorsAction Indicators

Accountability and Accountability and performance measuresperformance measures

Business ObjectivesBusiness Objectives Business ObjectivesBusiness Objectives

TopicsTopics

Pay for Performance, Pay for Performance, Impact and Value Impact and Value (p. 133)(p. 133)

Conditions for Reward Process Conditions for Reward Process (p.136(p.136

Methods for Distributing Bonus Methods for Distributing Bonus (p137))(p137))

Bonus and Base Salary Bonus and Base Salary (p.139)(p.139)

Upward Evaluation Upward Evaluation (p. 146)(p. 146)

SummarySummary

The Mentoring Process The Mentoring Process helps CPA Firms:helps CPA Firms:

Develop positive and Develop positive and mutually beneficial mutually beneficial relationships with relationships with menteementee

Have a successful Have a successful mentoring processmentoring process