Strategies for Improving Internal Communications

Tuesday, December 11, 2012

Speakers: Christian Spencer, CPA, Senior Manager

Tate & Tryon

Christopher McCarthy, Principal

T3 Information Systems

Emily van Loon, CPA, CFO/Treasurer

Association of Public and Land Grant Universities

Jeff Budde, CPA, Business Process & Technology Consultant

Tate & Tryon

Agenda
Developing an Effective Internal Communication Strategy
Christian Spencer, CPA, Audit Senior Manager Tate & Tryon Emily van Loon, CPA, CFO/ Treasurer Association of Public and Land Grant Universities

Information as a Tool
Christopher McCarthy, MCP, Principal T3 Information Systems

10 Amazing Tips Used Every Day by Accountants

Jeff Budde, CPA, Business Process and Technology Consultant Tate & Tryon

Developing an Effective Internal Communication Strategy

Christian Spencer, CPA, Audit Senior Manager Tate & Tryon Emily van Loon, CPA, CFO/ Treasurer Association of Public and Land Grant Universities

Agenda

Open discussion throughout the presentation! Common Issues with Internal Communication Case Study of Sample Nonprofit organization Tips for More Effective Communication Practical examples from a CFOs perspective

How do your Internal Communications Compare to This?

How do your internal communications compare to this?

Most Common Mistake Made?

What one mistake do companies make most with their employees? - Accountemps April 2012 survey of Chief Financial Officers
Lack of Communication 6% 8% 11% 6% 41% Lack of Recognition Lack of Training Lack of Flexibility 28% Lack of empowerment Other

Common Issues Noted

Organizations spend a lot more time and resources on external communications and often times neglect internal communications. Communication within an organization (horizontally between departments and vertically from senior management) is one of the cornerstones to an effectively run organization. Without an effective internal communications strategy, departments can operate in isolation which can lead to duplication of efforts. A culture lacking collaboration between departments, and absent a forum for vetting ideas and creating solutions can create an environment of isolation and result in high employee turnover. Employees want to know what is going on with the organization and want feedback on their performance.

Relative Importance of Communication Tools to Nonprofits in 2012

80% 70% 60% 50% 40% 30% 20% 10% 0%

Source: Nonprofit Marketing Guide- 2012 trends

Very Important Somewhat Important Least Important

Example Organization

501(c)(3) professional membership society with $18 million in assets, $9 million in annual revenues. Several related for-profit subsidiaries that hold title to the headquarters building and manage the rental operations of the building. Consolidated assets of nearly $60 million and revenues of $17 million. Approximately 45 employees. Board of Directors consists of over 200 voting members. Revenue streams consist of membership, meetings, publications, rental income, and investment income.

Example Organization

Strategic plan developed solely by the board of directors and executive director without any input from departmental senior directors. The senior directors in each department have never seen the strategic plan. Stovepipe culture as information flows vertically from executive director down, but no sharing between finance, membership, and development departments. Senior management/department director meetings not held on a consistent basis. No formal process for annual reviews of staff.

And as a result.

Departmental vs. Organizational focus has developed - no overall goals for the organization to strive towards have been communicated. Im doing what is good for my department and my budget only. Development department entered into a sponsorship agreement containing an advertising element that conflicts with an agreement entered into by the publications department. Finance department doesnt partner with departments in developing budgets. Annual reviews have not occurred - one employee had not had a review for 10+ years. High level of employee turnover in the organization.

Suggested Solutions

Foster an environment of teamwork - standing monthly senior departmental director meetings - platform to discuss initiatives, roadblocks, and solutions that benefit the overall organization and not just one department. Effectively involve the finance department in all major contracts and discussions. Finance is in a role to identify UBI, help resolve conflicting contracts, and prevent unintended consequences. Strategic plan should involve input from department directors. Every employee should have a copy that outlines mission, vision, value statements, goals and how they will be reached. Budget should be discussed and coordinated between finance and department directors.

Suggested Solutions

Disseminate a simple internal newsletter. Newsletter highlights new initiatives and celebrates accomplishments personal and professional. Platform to get to know others better and helps to create a common goal to see the organization succeed. Employee reviews should occur annually, at a minimum. Get out of the office for meetings from time to time. Update employee manual. Goals should be established that are SMART. Specific, Measurable, Attainable, Relevant, and Timely. Progress towards these goals reviewed and communicated annually.

Tips for Internal Communication

A Purpose Driven Communication - it should be tied to business objectives and your business plan, while humanizing it. A Whisper can be Louder than a Shout - all kinds of communication methods are available. Assess which ones work best at your organization. Dont just stick with What we have done before. Try out and be open to new ideas. You may like the sound of your own voice, but todays communications are an on-going conversation where listening is just as important as talking. Its something everyone participates in - everyone in the organization is responsible for communication - not just one specific department. Openness, honesty, and transparency are important - however recognize that there will be times you cant talk about everything.

Tips for Internal Communication

Ensure consistency in your communication - particularly when talking with different audiences. You tell two audiences two different messages - this will create problems. Give me the worst doctor people know that there are times when things are bad. Be honest and dont default to All will be good. Time is of the essence - avoid I heard it through the grapevine that..

Tips for Internal Communication

Ensure your communication is clear, concise, and meaningful. Avoid too many emails, consider use of an internal intranet. Dont forget the importance of face-to-face interaction.

Why are CFOs Often the Last to Know?

The deer in the headlight syndrome - why do we instill such fear? Unless we have too much of it - who loves to discuss money? Management often uses the lack of money as a reason to say no-no honey you cant have that toy - we are out of money. How many CFOs have a sense of humor?

a.

b.

c.

A Case StudyTiming is Everything

a.

Grant Management Scenario-Development

Development Director has coffee with the head of a local foundation who wants to fund a project. Goal is to fund the cost of lab screenings and medications for low income elderly. Development director says we would love to have your 50K - we will get a proposal to you. Proposal gets done, submitted, agreement signed, and money received. Development officer shows up in the CFOs office with a smile and a check.

b.

c.

d.

A Case StudyTiming is Everything

a.

Is the CFO Happy? No.why

Lab work is free because of a city-wide program through Office on Aging - just approved.

b.

Medications are covered through a change in Medicare.

c.

The designation is too specific and need is no longer there.

A Case StudyTiming is Everything

a.

Solutions
Have someone from finance present at all development meetings when grant proposals are in their infancy. Three players must be present - development, program staff, and finance. Stay a part of the planning. Entire team should be copied on emails. Review the final project - not just the budget but the narrative. CFOs can read. Connect the dots.

b.

c.

Family MeetingsThey Usually Work

Usually when all else fails at homethe best approach is to sit around the dinning room table with a plate of cookies.

So what is the work version of this?

Gather development director, program directors, CFO monthly. Open agenda - all items on the table. Take minutes - responsibility shared and send out immediately with action items and decisions - do not wait.

Family MeetingsThey Usually Work

Create a friendly environment - celebrate birthdays. Create trust and an open opportunity to have robust conversations. Detailed discussions need to remain in the room - vital to success.

Conclusion - What Solves Most Issues?

1.

An Open Dialogue during the budget process sets the tone for the next year in terms of communication.

2.

Meet with all departments before, during, and after the process.

3.

Meet monthly with development. Clear fundraising goals need to be set and monitored.

Conclusion - What Solves Most Issues?

4.

Use funding matrix - helps with constant contact.

5.

Great customer service - The CFO can not expect effective communication if AP staff does not answer emails or respond in a timely fashion.

6.

A willingness to teach Share knowledge. Having finance hold all the answers is not communicating. Sponsor brown bags.

Conclusion - What Solves Most Issues?

7.

Reports - be timely and create what they need, not what you think they need.

Resist the urge to bark orders and use a foghorn.

Conclusion

Other challenges you are seeing at your organization? Discussion/ Questions? Please call or email throughout the year
Christian Spencer Senior Audit Manager cspencer@tatetryon.com 202-419-5124

Information as a Tool
Christopher McCarthy, MCP, Principal T3 Information Systems (202) 419-5151 cmccarthy@t3infosystems.com

10 Amazing Tips Used Every Day by Accountants

Jeff Budde, CPA, MCP, Business Process & Technology Consultant Tate & Tryon 202-293-2200 x444 jbudde@tatetryon.com

Questions?

Thank You!
We would love your feedback! Please take a minute to complete the evaluation form before leaving.

Speaker Biography
Christian Spencer, CPA, is a senior audit manager with over 16 years of public accounting experience, including 13 years working exclusively with nonprofit organizations. Prior to joining Tate & Tryon, Christian worked as a director at a large national accounting firm where he spent 13 years providing audit and tax services to nonprofit organizations with annual revenues ranging from $1 million to over $300 million. Christians experience includes planning and managing the audits of a wide range of nonprofit organizations, including associations, charitable and educational organizations including those with for-profit subsidiaries and political action committees. Christian sits on the audit committee of a large 501(c)(3) Washington, D.C.-based nonprofit organization that focuses on providing food and shelter services to individuals in need. In addition, he is a member of the Finance and Business Operations Section Council of the American Society of Association Executives. He participates in ongoing continuing education courses for nonprofit accounting and has written articles for various publications including ASAEs Dollars & Cents.

Speaker Biography
Emily van Loon, CPA, currently is employed as CFO and Treasurer of The Association of Public and Land-grant Universities located in Washington, D.C. As a CPA, Emily has extensive experience with both nonprofits and for-profits, but finds working in the nonprofit sector much more rewarding. For fifteen years of her work in the nonprofit sector, Emily served as the CFO of SOME, Inc. (So Others Might Eat), a Washington, D.C. nonprofit that provides an array of services to the poor. At SOME, she administered a consolidated budget of $22 million and managed public debt, equity and tax-credit offerings in support of affordable housing developments under 42 of the Internal Revenue Code, creating over 350 low-income housing units. In addition to her financial management work, Emily has extensive IT experience. She managed the implementation of electronic record systems that interfaced with accounting systems and helped implement an electronic medical record system for community health clinics. Emily has also done a wide range of consulting in the area of nonprofit financial management and low-income housing. She has served on the Board of the Old Town Business Association in Takoma Park and is actively involved in many community issues. She is featured in The Nonprofit Challenge: Integrating Ethics into the Purpose and Promise of Our Nations Charities, by Doug White. Prof. White is the Academic Director of the George Heymend Center for Philanthropy and Fundraising at New York University.

Speaker Biography
Christopher McCarthy, MCP, is Principal and co-founder of T3 Information Systems (www.t3infosystems.com). T3 Information Systems (formerly Tate & Tryon Technology & Pierce Financial Systems) is a Microsoft Dynamics value added reseller. The practice began in 1997 and has grown steadily each year since. Prior to forming T3, Christopher served for 6 years as President of Pierce Financial Systems, a Dynamics GP service provider and software development firm based in Fairfax, VA. Christopher is a Microsoft Certified Professional and specializes in Accounting Software configuration, design, and implementation. He also oversees software architecture for custom software developed by the firm. He has serviced the accounting software needs of clients for more than 13 years and possesses seven Microsoft Dynamics certifications. He has project managed the implementation of and the integration to Dynamics with great success. Additionally, he has also headed several efforts to integrate and consolidate the systems of large public companies onto a single accounting platform during merger and acquisition efforts. He also has extensive experience in achieving Sarbanes Oxley Compliance for several clients.

Speaker Biography
Jeff Budde, CPA, MCP, serves as a Business Process and Technology Consultant for Tate & Tryons Outsource Services practice. In this role, he focuses on streamlining business processes and technology systems. Prior to joining Tate & Tryon, Mr. Budde served as an Accounting Solution Consultant for Morrison & Morrison, Ltd. in Chicago, IL. In addition, he also previously served as an analyst for Huron Consulting Group, Chicago, IL where he built a database using Microsoft Access to organize client information and identify prospective international clients as well as create management reports. Jeffs experience includes: implementing and upgrading Microsoft Dynamics GP/SL accounting software; leading end-user training on topics ranging from accounting processes, financial reporting, user security, accounting solution design, and purchase requisition processes; designing, implementing, and training end-users on a business-intelligence solution enabling users to create ad-hoc reports using real-time data; Creating GAAP Financial Statements using financial reporting software for clients with billions of dollars in assets; and developing web-based AP and GL reports using SQL Server Reporting Services. He is a Certified Public Accountant and a Microsoft Certified Professional.