© U PSTREAM A CADEMY W ORLD C LASS T RAINING: G ETTING Y OUR F IRM O N T RACK P RESENTED BY S AM M. A LLRED, F OUNDER & D IRECTOR O F U PSTREAM A CADEMY U NDERSTANDING A ND I MPROVING F IRM P ROCESSES P RESENTED BY T IM B ARTZ C HAIRMAN OF THE B OARD OF A NDERSON Z UR M UEHLEN

© U PSTREAM A CADEMY While a session on processes is unlikely to draw a standing room only crowd, there’s probably no other topic that has greater potential to positively impact your career.

© U PSTREAM A CADEMY 2011 As you know, the goal of the ELA program is to help you make the very most of your career. Sometimes there’s a tendency by leaders to focus on the wrong thing to bring about lasting, positive change. 3

© U PSTREAM A CADEMY 2011 As leaders seek to develop greater results in their firms, there is often a temptation to try to change end results by focusing only on those end results. Not only will this approach fail to achieve lasting results, it also does little to empower others. 4

© U PSTREAM A CADEMY 2011 We believe one of the real keys to creating better results is to focus on processes. Consider this from John Maxwell: “We overestimate the event and underestimate the process. Every fulfilled dream occurred because of dedication to a process.” 5

© U PSTREAM A CADEMY 2011 U NDERSTANDING F IRM P ROCESSES 6

© U PSTREAM A CADEMY 2011 An understanding of the importance of processes is the first step toward creating a better firm and a better you. It’s imperative that you understand two vital keys. 7

© U PSTREAM A CADEMY 2011 With some effort, existing processes can be improved significantly. Most of what you do in your firm is repeatable. Many of these repeatable events (processes) are done at an average level. V ITAL K EY #1 8

© U PSTREAM A CADEMY 2011 Developing referral sources Preparing proposals Accepting new clients Researching new services Forming strategic alliances Employee scheduling Hiring employees New hire orientation Terminating employees Time and billing Collecting A/R Annual firm meetings Cross marketing/selling Client development Firing D-level clients Launching new services Project management Greeting clients Client communication Annual performance reviews New employee mentoring Budgeting Space planning Leadership training E XAMPLES O F P ROCESSES 9

© U PSTREAM A CADEMY 2011 In the end, your firm is only as good as your business processes. These repeatable events will determine in large measure the level of excellence consistently attained by those in your firm. 10

© U PSTREAM A CADEMY 2011 Quadrant I things demand your attention. Excellence within your firm is never created in Quadrant I. As a leader, you spend much of your time in Quadrant I, dealing with things that are urgent and important. V ITAL K EY #2 11

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© U PSTREAM A CADEMY 2011 “The important task rarely must be done today, or even this week. The urgent task calls for instant action... The momentary appeal of these tasks seems irresistible and important, and they devour our energy.” Charles Hummel 13

© U PSTREAM A CADEMY 2011 Quadrant II things never seek you out, but sit patiently in the corner of the room waiting for you to notice them and pick them up. Ironically, to create excellence in your firm, you have to discipline yourselves to spend adequate time in Quadrant II. 14

© U PSTREAM A CADEMY 2011 I MPROVING F IRM P ROCESSES 15

© U PSTREAM A CADEMY 2011 At Upstream Academy, our focus on processes through the years has allowed us a much better understanding of both the importance of processes and how to improve them. We have developed what we call the law of processes. 16

© U PSTREAM A CADEMY A firm is no better than its processes 2.Most of what we do is a process 3.All processes can be improved 4.All processes consist of steps 5.Every process doesn’t have the same value or importance within the firm L AW O F P ROCESSES (part 1) 17

© U PSTREAM A CADEMY Some processes are easier to improve than others 7.It’s easier to improve a process from a 4 to a 6 than from a 7 to a 9 8.Great processes yield consistently strong results 9.Improved processes represent the greatest hope for positive/lasting change L AW O F P ROCESSES (part 2) 18

© U PSTREAM A CADEMY 2011 You have probably heard the following saying: “Amateurs practice until they get it right. Professionals practice until they can’t get it wrong.” Developing excellence in firm processes means that we examine them, work on them, stick with them, and perfect them until we can’t possibly get them wrong. 19

© U PSTREAM A CADEMY 2011 In order to improve firm processes, two things are usually needed: 1) an awareness of what firm processes are and why they need improving, and 2) a desire to improve and a plan of how best to do it 20

© U PSTREAM A CADEMY 2011 It’s helpful to identify a firm process that is done at a high level (a level 8 or higher) and hold this process up as an example of what a quality process looks and feels like. Firm members then have a better under- standing of the benefits of following a quality process. 21

© U PSTREAM A CADEMY 2011 Firms in our profession that have made the greatest strides in process improvement have done so through the use of teams. 22

© U PSTREAM A CADEMY 2011 Most teams consist of 5 – 7 individuals who work together an average of two hours per week to improve a firm process over a three to four month time period. 23

© U PSTREAM A CADEMY 2011 ELA P ARTICIPANTS A NSWER K EY Q UESTIONS 24

© U PSTREAM A CADEMY 2011 We have asked a number of ELA participants to respond to several questions regarding the importance of firm processes. Please know that response to these questions is not limited to those participants who have been contacted in advance. 25

© U PSTREAM A CADEMY 2011 Why are most firms willing to have so many mediocre processes? Q UESTION 26

© U PSTREAM A CADEMY 2011 What do you think are the most difficult processes to improve? What do you think are the easiest processes to improve? Q UESTION 27

© U PSTREAM A CADEMY 2011 What benefits would a firm expect to receive if all firm processes could be significantly improved? Q UESTION 28

© U PSTREAM A CADEMY 2011 How would you benefit by viewing business development as a process rather than an event? Q UESTION 29

© U PSTREAM A CADEMY 2011 Q UESTION A ND A NSWER S ESSION 30

© U PSTREAM A CADEMY 2011 Thank You! 31