A few months ago I was
invited to speak in front of 300 accountants.
The topic of my speech was “Adding Value”.
I consider myself an expert on the subject of
adding value, so I found it somewhat disturbing
that as the deadline for writing my speech grew
closer, I had no clue what I was going to talk
about.
Accounting has been around for over 500 years,
during which the profession has hardly changed.
If we transported Luca Pacioli, the Italian mathematician
who invented accounting, to today’s world,
he would have felt very much at home working in
any accounting firm.
And therein lay the profession’s problem:
While the nature of business has changed tremendously
over the years, the practice of accounting hasn’t.
Accordingly, accountants find themselves spending
less time in the boardroom and more time in the
back room.
And we all know what happens to the back room.
It gets offshored to India.
Three days before my speech I stumbled upon an
article in the papers about Krispy Kreme, the
doughnut manufacturer. The company was going through
tough times and hired an accountant, Steven Cooper,
to help sort out its problems.
I suddenly thought of an idea for my speech.
Since one way of measuring what’s valuable
to our customers is to take a look at how much
money they’re willing to pay for it, why
not look for the highest paid accountant in the
world and see how he adds value to his customers?
What I found surprised even myself and turned
out to be a great lesson on how you can add value,
regardless of which profession you’re in.
I started by looking at the bottom of the accountancy
food chain. If you’re a bookkeeper, you
can charge your customers $400 a month.
If you’re an accountant, you can charge
your customers $4,000 a month to keep their financial
records in order.
And if you’re one of the Big Four accounting
firms, you might even be able to get away with
charging your customers $40,000 a month.
But if you’re Steven Cooper, you can charge
your customers $400,000 a month.
You might say “$400,000 a month - that’s
ridiculous!” You might say $400,000 a month?!
No accountant can charge a company $400,000 a
month!”
You might say that and you’d be right.
But then Steven Cooper isn’t just an accountant,
he’s a turnaround artist.
True, Cooper is a member of the American Institute
of Certified Public Accountants. But that’s
about as much as he has in common with most of
his colleagues in the profession. Because while
most accountants focus on analyzing financial
events that have already happened, Cooper focuses
on the future, helping companies such as energy
trader Enron and doughnut maker Krispy Kreme untangle
past mistakes, restructure themselves and stay
in business.
But how does Steven Cooper deliver so much value?
More importantly, what can you do to add more
value to your customers?
1. Focus on outcomes, not activities.
The people who hire Cooper to turnaround
their companies don’t count how many people
are involved and how many hours they spend at
the office. They don’t care whether Cooper
uses workshops, seminars, one-to-one meetings
or strategy retreats. They only care about one
thing: getting better.
Take a look at your company’s website.
Go through your marketing collateral. How much
of it focuses on activities, tools and techniques
and how much of it focuses on the business outcomes
you provide your customers? Customers don’t
hire you (or your products) because of your methodology.
They don’t hire you because of your technique.
They hire you because of only one reason: to improve
their performance. If you can do that better than
anyone else, you can charge more than anyone else.
2. Have the courage to be different.
Cooper might be an accountant, but he
sure doesn’t call himself one. All accountants
have similar training. All of them pass the same
exams. So why are some paid 100 times more than
others? Simple – they refuse to be like
everyone else. They refuse to be defined by their
profession and by their title. They refuse to
do what accountants are “supposed to do”.
If you want to be paid 100 times more than what
other people in your profession get paid, there’s
only one way to do it – by being remarkably
different. And the only way to be different (and
get paid for it), is to add tremendous value to
your customers. If you can’t call yourself
the “turnaround artist” of your profession,
then there’s no reason anyone should pay
you more than the other guy.
3. Learn how to listen. Adding
value to your customers requires the ability to
listen to the them, understand what they want
and figure out what they need. As Alan Weiss,
the “Million Dollar Consultant” likes
to say: “No one cares, really, about how
good you are. They care about how good they are
going to be when you’re done with them.”
If you can move from seeing the world from the
perspective of your products and services to the
perspective of your customer, you can add more
value than your competitors, and charge your customers
accordingly.
So how do you explain all of this to 300 accountants?
You tell them about a colleague who found a way
to make 100 times more than his peers and you
tell them about Harley Davidson, the motorcycle
manufacture which doesn’t simply sell motorcycles.
“What we sell,” says Harley, “is
the ability for a 43-year-old accountant to dress
in black leather, ride through small towns and
have people be afraid of him.” |