
Transforming Your Business: The Power of Subscription-Based Models with Ron Baker (Part 1)
The Modern CPA Success Show
The Importance of Reflecting on Lessons Learned
The after action review can replace the time sheet, and it can replace the annual performance reparrizo. This is why it's such a big part of the DNA of the military. We frantically go from one project to another; if you don't step back and reflect, you'll never have learning that lasts. In fact I think CP providers should charge more for the seats in the back of the room.
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Speaker 1
If the after action review can replace the time sheet, which you can, and it can replace the annual performance reparrizo, which is another completely ridiculous brain dance that we go through as organizations, that also does not improve future performance. To have an annual performance review, how much time would that free up? If people didn't have to do time sheets and people didn't have annual performance, and there would probably even clobber a bunch of other meetings as well. This is why it's such a big part of the DNA of the military. I mean, I talked to a guy who served two tours in Iraq. He said, Ron, we changed the toilet paper in the latrine, and we're AAR-ing it. Sometimes in the middle of a mission, you can see guys huddled in a circle. So, all militaryed up having an after action, because the enemy did something that caught them by surprise. We make plans. God laughs. Mike Tyson, everybody's got a plan, so you're punched in the face. Now, we don't have the life and death issues of an ICU or a military. I understand that. But we are knowledge workers, and knowledge workers can share tacit knowledge and improve future performance by collaborating and discussing with their colleagues what went right, what went wrong, why did they go wrong, what lessons have we learned, how could we do it better next time, and what's more important than that? How much time do we spend on tech stack apps, streamlining processes, efficiency, blah, blah, blah, blah, blah, blah, and yet there's no time to sit back and reflect on the lessons we just learned. We frantically go from one project to another, one engagement to another, one customer to another, and if you don't step back and reflect, you'll never have learning that lasts. Yeah.
Speaker 3
Have you seen it work around to do it as part of other meetings? So, Adam, one thing I think of is like we do a kickoff process with new clients, right? Six to eight weeks, let's get everything up so that we can stand up the full service. Most of those teams are meeting once per week as sort of project management, where are we and things like that? And as I'm hearing you talk, I'm thinking one thing we don't really do is, okay, can we do a small and after-action review during that meeting? How are we doing so far? Yeah. What's going on? Well, how are we going to improve this in the future? Would you think that's a good idea? Would you say, no, doing it as part of another thing doesn't really give it?
Speaker 1
I would experiment with it. I mean, I know firms that do before action reviews, the bars. And by the way, this is somewhat part of the Toyota production system is too, because they do it as well. And then they do the after-action reviews after the project is completed, or maybe a milestone or a phase of the project is completed. I'm not suggesting you do a after-action review after doing a simple tax return or something like that. And you can focus them just on the 20% of your customers, maybe the generate 2-3rds of your revenue or whatever. But the important thing is, since we work in collaboration with one another, we're trying to get the tacit knowledge out of people's head and making it explicit somewhere, whether it's in a spreadsheet, a PowerPoint presentation, a video, whatever. That's explicit knowledge. But the tacit knowledge in our head is knowledge workers. That's the stuff that's really valuable. That's the stuff that's very difficult and very, very expensive to transmit. This is why it costs so much to train a doctor or a fighter pilot, because they can read manuals all day. They can sit in presentations. They can watch videos, but it's the tacit knowledge that they can only get from their flight instructors and from one another. And I'm fascinated by how knowledge workers learn. They don't learn by sitting in a CP course. Trust me, I've been teaching CP for 30 years, and it's a joke. People are talking about people being checked out from a solitaire. In fact, if anything, I think CP providers need to charge more for the seats in the back of the room. We've always said that. It should be the reverse of the airplane. Those are the first class seats, because most people want to sit in the back. Anyway, the other thing is firms that have been doing after Action Review is once they become embedded into the culture, where it's just part of what you do. It's no longer thought of it. You just do it. They turn them outward and they start doing them with their customers. That's where you get another set of really powerful lessons on how you can improve the customers. Plus, you can teach your customers how to do AARs in their organization. How valuable is that? They're transforming. I mean, they are light transforming, and this profession doesn't use them. It frustrates the heck out of me. Sure.
“We need to move away from pricing services and we need to start pricing what's really important, which is the relationship and transformations." - Ron Baker
The finer details of this episode:
- Time sheets vs after-action reviews
- Guiding transformations and monetizing relationships rather than charging for scope changes
- Understanding a subscription-based model and how it differs from traditional-pricing models
Episode resources:
- Summit CPA website – summitcpa.net
- If you have questions or would like to be a guest on the show, email us at mcpasuccessshow@anderscpa.com
- VeraSage Institute