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10 commandments to improve profitability

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27th Nov 2012
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Imagine if someone gave you a magic key that could improve the profitability of your firm, while reducing your stress levels. 

While unfortunately no such magic exists, director of Mercia's training division John Sharkey laid down 10 commandments to follow that could see you on your way to achieving the above.

Speaking at the UK200Group conference in Newcastle last week, Sharkey said: “It will be an increasing challenge to improve profit in coming years. We need to ensure we do whatever we can to keep our earnings at an acceptable level."

His tips included:

1. Thou shalt lead 

Using at first mysterious examples of a dog lead and chewing-gum, Sharkey pointed out the importance of leading your firm.

Dog leads are very short and restrictive, he said. Not keeping people on a short leash and giving them a bit more leeway is a good idea in terms of leadership.  

Chewing-gum alluded to Manchester United manager Alex Ferguson, who Sharkey said was a good example of a leader. 

"He's decisive and firm and has to make a lot of difficult decisions, but sticks to them," he said, something accountants could learn from. 

"You need to command respect and tell people to do what they need to do in your firm" he added.

2. Thou shalt know thy destination and thy path

Not knowing where a firm is going or how they are going to get there, for example not having a defined strategy for growth or future plans in place, is a major stress for employees, Sharkey said. 

Using the example of a map and compass, he explained the importance of having a strategy and goals in place to determine the future and plans of your firm. 

"This is helpful for you, your partners and your firm," he said. "You need to plan out where you are, how you've got there and where you want to go," he said. 

3. Thou shalt unlock thy potential

Handcuffs, a blindfold and some lavender oil were pulled out of the next bag. 

"Every firm I visit I see locked potential," Sharkey said, telling accountants to unlock their chained-up potential and put it to use. 

"We use on average 70 to 75% of our potential. It's not that we aren't working hard enough, it's that it just isn't being challenged," he said. 

The blindfold indicated sleep deprivation, which was one of they key stressors and elements that stop people from unlocking their full potential. Accountants need to not bring work into the bedroom and need to get a good night's sleep, according to Sharkey. 

Another element of unlocking potential was when he pulled a magic kit out of the bag for turning frogs into princes.

"Consider the benefit of turning your frogs into princes," he said. "By turning your managers into partners. Don't underestimate them," he said.

4. Thou shalt know thy value

Using the film "It's a Wonderful Life" to illustrate this point, Sharkey pointed out that most accountants don't realise or promote their true value to clients.

"Accountants tend to under-sell themselves in terms of the value they bring to clients. Mostly, you focus on cost, features and compliance, but rarely on the value you are bringing to your client, which you need to also do," he said. 

5. Thou shalt be flexible

A toy monkey served as the next stress reducing prop. 

Monkeys are flexible, Sharkey said, something accountants need to learn to be both physically and mentally.

"Accountants spend a lot of time in a cramped work environment," he said. Getting up every once in a while and stretching or relaxing, joining an activity such as yoga or learning to be more flexible with yourself would send you on the way to reducing stress. 

6. Thou shalt not try to be all things to all people

Marmite was pulled out of a bag next, which Sharkey said was a smart brand, owing to its "love me or hate me" attitude. Accountants need to be like this, he argued, to be firm and not try be all things to all people, but to be what you are. 

It's also the most concentrated form of vitamin B you can get, Sharkey explained, which is important for reducing stress as this vitamin stores energy. 

An additional profitability and stress-saving tip came in the form of grading your clients. According to Sharkey, don't spend the same amount of time on clients who are bringing in little profit compared to ones that are - prioritise.

7. Thou shalt learn to say no and stick to it

Learn to say no to drugs. It might be something you got taught at secondary school, but managing stress with drugs or medication is not a good way of dealing with it, Sharkey said.

However, munching on dark chocolate instead is a proven stress-buster, given the amount of anti-oxident it possesses; more than broccoli apparently.

Learning to say no to clients, as regards impossible time-frames among other issues, and colleagues could also cut out a lot of stress.  

8. Thou shalt schedule time for thyself and thy supportive network 

It's difficult for senior people within a firm to have a support network at work, Sharkey said, as it is always hard to hold your hands up when you're at the top and say you need help. 

In addition to this point, he said accountants are very intelligent people with high IQs, but not necessarily EQs.

Therefore, it is very important to schedule some rest and relaxation time for you and your existing supportive network, including friends and family. 

Using golf balls as a prop, Sharkey advised accountants to make time for an activity they enjoy with friends.  

9. Thou shalt not be perfect nor even try to be 

"A major cause of stress is trying to achieve perfection," Sharkey said. So stop trying to be perfect in all areas - recognise where the value is and focus on that instead of trying to over-achieve, he advised. 

Going for a drink with friends and relaxing is another way to relax and ease stress. Giving yourself a break every now and again from working hard and striving for perfection is good for accountants, Sharkey advised. 

10. Thou shalt challenge

The last bag, the tenth commandment, held games. 

Accountants should personally and professionally challenge themselves, while remembering to have fun and enjoy life, Sharkey said. 

Do you have any commandments you live by to reduce stress and increase profitability? If so, share them below. 

Replies (7)

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Teignmouth
By Paul Scholes
27th Nov 2012 15:11

That's refreshing

With memories of the headline events at last week's Accountex still fresh in my mind eg, "How Accountants in Practice can change the World", I read this one, spat on my hands & read all 10 commandments, only to find they made perfect sense.  Great to see yoga & "say no" mentioned on Accountingweb (never would have happened in the old days).

I've struggled to think of an 11th but maybe more as an appendix:

"Try to avoid setting up 10 new categories on your time ledger to record the above actions"

it defeats the object.

 

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By johnjenkins
28th Nov 2012 12:22

What did the woman from

dragons den say on sky news the other morning. Ah yes, most business (over 70%), when questioned about how they rate success, said the bigger the profit the bigger the success. She was not impressed and thought success should be measured by other ways including apprentiships etc.

I don't know why I posted this. I did see a link at some stage. Hey Ho off to the pub with friends to unlock my potential as a barmaid (can I still say that?) critic.

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By listerramjet
28th Nov 2012 13:20

the noughth commandment

stop the pontificating and navel gazing, and get out there and do it.

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By AndyC555
28th Nov 2012 13:54

Stress....

How many MORE articles will there be on here about reducing stress.....?

 

I can't keep up with them all.....it's making me a nervous wreck worrying I might miss one...

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By johnjenkins
28th Nov 2012 15:45

There is a train of

Didn't you know, Andy, compare the reducing stress .com is taking over from the meercats

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Locutus of Borg
By Locutus
28th Nov 2012 23:29

Eleventh Commandment

Thou shalt not act for charities, CIS cases or undertake audits.

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By Walksie
05th Dec 2012 16:52

Chocolate a stress booster? Stress buster perhaps?

Whoops?

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