Strategic Accounting

1. GGN GROUP, LLC Results Through Change™ Strategic Accounting MACE December 2012 Mark Nelson & Dan Gomez

2. GGN Group Three Things You Should Know About GGN • We are a group of business owners and executives with a history of starting, building and managing companies. • Our clients are business owners who want an outside perspective on making significant changes • We use disciplined and proven management processes to get results

3. Definition - Accounting • Practice and body of knowledge • Methods for recording transactions • Keeping financial records • Reporting and analyzing financial information • Advising on taxation matters • Accounting provides information on • Resources available to a firm • The means employed to finance those resources • The results achieved through their use Where the rubber meets the road

4. Definition – Strategy • The art and science of enabling an organization to achieve its objectives • A long term plan of action designed to achieve a particular goal(s). • A series of top-level management decisions which help navigate the direction of the corporation Strategy answers the question of how a company will deliver its value proposition to its customers Where the rubber meets the sky

5. Accounting & Strategy At the Intersection of Strategy and Accounting is Measurement

6. Measurement is the key to translating strategy into actions

7. Balanced Scorecard • Management system • Translates strategy into measurable actions • Integrated set of performance measurements that require • Data gathering • Measuring • Analysis and interpretation • Communication

8. The Role of Accounting • Identify measurements • Collect and record data • Verify, summarize and interpret data • Report and communicate results Definition of Accounting

9. Balanced Scorecard Overview • View and measure organization from four perspectives • Financial • Customer • Business Process • Learning & Growth

10. Three Strategic Themes Customer Intimacy Innovation Efficiency

16. Actual Case The Law Firm

17. Case Facts • The firm has been in business for more than 25-years • Many of the firm’s practice areas are highly competitive • Much of the billings are contingent fee based. It’s either “feast or famine”. • There is now a sense of urgency to build sustainable and transferable firm value.

18. Goals and Strategies • Overall goals: • Create a business model with a more predictable revenue stream • Increase annual billings by XXX% over the next three years • Strategic Theme – Client Intimacy / Efficiency • Make it easy • Do it quickly • Keep it affordable

19. Vision and Mission Vision – How we define success Our firm will be the region’s preeminent provider of We will be the firm that others refer their clients to. Mission – What we get paid to do Our mission is to help people successfully deal with crisis

20. The Law Firm– Strategy Map Significant growth in Niche Specialty Market Create sustainable and transferable firm value Financial Perspective Client Delight – Make it quick, easy, effective Client Perspective Our Value Proposition Deal with the Crisis ASAP Value easily understood Process Perspective How we deliver value Quick and Easy Intake Quick and Easy to Implement Learning & Intangibles What knowledge do we need to operate our processes Continuous Employee Training Continuous Process Improve Awareness Education

21. Scorecard

22. Scorecard

23. Summary Accounting information plays a key role in strategic planning especially when it comes to measurements Measurement is critical to transforming strategy into actions

24. Mark Nelson (215) 266-0050 mnelson@ggngroup.com Dan Gomez (610) 715-8289 dgomez@ggngroup.com www.ggngroup.com