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It's That Time of Year By Steve Ernst, CPA  Two
months into the first calendar quarter of 2007 and CPAs are all knee-deep
in empirical data. Tax returns, financial statements, regulatory
filings, shareholder reports – all based on numbers, facts,
figures – are enough to overcome even the stoutest non-beancounter
attitude. But what is the story behind the numbers? It's the time
of year to assess results, put them in perspective and to put the
lessons learned over the course of 2006 to use as we push deeper
into 2007.
Growth: Both good and bad For small and midsize companies it's the time of year to have plans in place to facilitate and support growth. There are very few business owners and executives that would describe their business plan or their business's goal as "stop growth and remain small." Growth isn't necessarily inherent in any business model, but it's a human trait to build and to expect growth if you do things right and do the right things consistently. Of course growth, uncontrolled and unplanned, can be devastating. It can crush processes and put controls off square and, in the long term, hamper or injure a company and its future. But, let's admit it, we crow about growth, we plan on growing, we aim for growth and we reward growth. It's the way we are and it's good. Blueprint growth…blueprint companies This was the backdrop when I recently attended a dinner at which David G. Thomson, author of Blueprint to a Billion, was the after-dinner speaker. I wasn't sure what to expect. There are so many books on the best-seller lists about the things successful people do or say, or how we should emulate this leader or that leader, or the common traits among successful business executives, etc. I think I expected to hear something along those lines and I expected it to be boring. I was wrong on all counts. It was the most interesting, entertaining, counter-intuitive, empirically based presentation I have even seen. Ok, "Jersey Boys" it wasn't, but I didn't expect to hear Frankie Valli talking about the "7 Essentials to Achieve Exponential Growth," which is the subtitle for Thomson's book. It was this subtitle that hooked me. David's experience with McKinsey & Company as well as Nortel Networks and Hewlett-Packard come through as he analyzes all the companies that have IPO'd since 1980 and finds that only 387, or 5 percent, have taken a billion dollar idea and grown it into a billion dollar company. The analysis is deep and complete and distilled into the "seven essentials" that are common to all of these hyper-growth companies which cross industry, product, service and geographic borders and boundaries. I highly recommend it, especially if you're an owner or executive in a small or midsize, growing business or a professional service provider to those growing businesses. Time for entrepreneurs to be recognized One of the most respected programs for the recognition of the entrepreneurial spirit is the Ernst & Young Entrepreneur of the Year Program that enters its 21st year in 2007. It's a year-long endeavor and the first quarter of every year finds entrepreneurs being nominated. The criteria used in the E&Y program to find the true entrepreneurial spirit have been formulated and solidified over the years. The criteria focus on vision, leadership, achievement and social responsibility. The vision to create a business concept and implement it effectively. The strength of character that enables a leader to move forward, to inspire a team regardless of the odds or obstacles. Achieving and going beyond what is expected. Leveraging efforts and resources to give something back to the community. We've talked a lot about the spirit of an entrepreneur. If you feel strongly that you know an entrepreneur who has the characteristics noted above and is an owner or key executive in a private or public company that is at least two years old, and who had primary responsibility of recent performance and remains an active member of management, take a moment and go to www.ey.com/us/eoy. It's that time of year for us to recognize those who have done it, to hold them out as examples of how to do it. |
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