Problem Solving and Looking into the Future

Catching up on our career paths led to an interesting comment by my friend.  She said she told a peer of hers that I was a Chief Operating Officer in a CPA firm – to which his reply was, “Why would anyone want to be a COO in a CPA firm?  Isn’t she beaten up constantly by the partners?”

The nature of the COO position in a professional services firm is such that you are frequently faced with delivering news others do not want to hear, offering new solutions to old problems and, because the position is not income producing, a COO has to be able to show the value being delivered.

Being a professional in a professional service industry requires highly trained and technically proficient people.  Just as a CPA must have razor sharp technical skills and knowledge, so must the COO. 

Ground floor skills

Here are three skill sets which I refer to as “Survivor to Success” skills.  Master them all for a successful career as a Chief Operating Officer.

1.  Team dynamics – Understand people, especially their dysfunctional behaviors which tend to obstruct team development; know how to cope with and work with the behaviors in a productive way.  For example, how do you handle the saboteur, sniper, amateur psychologist, denier, anxious member, dominator, side-tracker, hand clasper, polarizer, attention seeker or clown?  Each of the above behavioral types inhibits and distracts any group from working at an optimal level.  Here are three steps you may find helpful in dealing with such dysfunctional behavior:

• Draw attention to the dysfunctional behavior itself but avoid labeling the person as a particular “type.”  For example, if there is a side tracker on one of your teams, acknowledge that person’s behavior by asking him or her to keep a to-do list of all the extra concerns he or she has brought up.
• Since often the person distracting the group is unaware of the negative impact of his or her behavior, state clearly (in a supportive, firm manner) the specific dysfunctional effects of the behavior.  Most likely the person wants to make a contribution and does not know how to be an effective team member.  Following up on the example above, ask the side tracker to record and prepare the minutes of the meeting, so that person can better understand the purpose of the meeting.
• Suggest an alternative behavior that will lead to a more productive team environment.  Continue to keep the side tracker involved in projects on the team with firm guidelines that he or she must stay on track and focus on the stated end result within the time frame allocated.

2.  Conflict resolution – Mastery of this skill is critical to your success because conflict occurs daily, whether at home or at work.  Conflict occurs when an individual's needs and values come into opposition with those of other people. Some conflicts are relatively minor, easy to handle, or prone to being overlooked. Others of greater magnitude, however, require a strategy for successful resolution if they are not to create constant tension or lasting animosity at home or business.

3.  Public speaking – Become comfortable speaking in front of groups, especially with your partners and in front of the firm.    If you are uncomfortable with this, there are many courses available that provide the insight needed to become an accomplished public speaker.  The major keys are overcoming your fear and practice – practice - practice.  Look for as many opportunities to practice as you can find.  It is through practice your confidence will grow.

Problem solving skills

How many of you have been referred to as problem solvers, catalysts of change, peacekeepers or “get it done” types?  Do you know where your firm is now, where you are going and how you are going to get there?  My firm is young. It just celebrated its 25th anniversary last year, and two of our three founding partners are still working both on and in the business.  While all of us were good problem solvers, our goal was to become great problem solvers.  As the business world has become more sophisticated, so have the demands for expert problem solving skills.  In the past we used informal problem solving techniques, but today we use more formalized techniques as a result of our affiliation with Mindshop.  The following are a few favorite tools:

1.  Five whys – This tool involves taking any problem and asking, “Why?  What caused this problem?”  Often the uncovered reason will lead you to another question and then another and so forth.  The benefits of this tool are that it helps to quickly identify the root cause of a problem, it is easy to learn and use, and it helps determine the relationship between different root causes of a problem.  The disadvantage of this tool is being led into a loop where the preferred option is an answer from an earlier process, which loops you back.

2.  Magic wand – This is one of the easiest tools that can be used in improving a firm.  The goal is to stretch beyond the boundaries in your organization.  If you did not have to think about the cost or the how, what would you change?  Which issues would you correct first?  It is easy to become overwhelmed at this point.  Apply the 80/20 principle to identify the few key issues: 80 percent of problems are due to 20 percent of the possible causes.

3.  Decision matrix – The purpose of this tool is to reduce the amount of subjectivity in decision making by applying filters to the decision process.  For example, you can use a decision matrix to do a competitor analysis or to determine whether to rent or purchase your office building.  You can identify, agree on, weight and take ownership of a set of factors that influence the decision.  Again, the purpose is to remove the subjectivity, so use this tool in a group setting to get buy-in.  

4.  Gap analysis – This tool is a self audit, type tool that allows you to determine the gap between where you are “Now” and “Where” you want to be related to certain factors of a problem.  Identify measurable factors related to the problem and then determine the “Now” for each factor.  Once that has been completed, start over with each factor to determine the “Where” for each.  Factors with the largest gaps are those to consider for drilling down further to determine action steps.

5.  Force Field – This tool takes into consideration the positive and negative aspects of any issue for which you seek resolution.  Focus on the issue and identify approximately three to five positive factors.  Then do the same with negative factors.  Once these are identified, the next step is to list three actionable items that, if implemented, would double the positive impact of the factor on the issue.  On the negative side, follow the same procedure; however, ask what you can do to reduce the impact of the negative factors.  Using the 80/20 principle, the goal of this tool is to select the top three issues, develop actions plans and then develop a one page plan.

Looking into the future

Consider the following:

• What is stopping your firm from achieving its goals?  
• Do you understand the barriers that are in place and why?  
• Is your firm satisfied or dissatisfied?  
• What is your formula for change?  
• What are your key performance indicators?
• Have you done a competitor analysis?  
• Do you know which of your services are wildcats, rising stars, dogs or cash cows?  
• How can you lock away your profit?  
• Does your firm use a one page plan?  
• Does everyone know that plan, and are their goals aligned to it?

By first asking the right questions then identifying potential solutions and specific outcomes, a Chief Operating Officer can position his or her firm for enhanced profitability and growth.  The overall goal of a professional services firm is to grow, so its people can be nurtured and developed to provide five star client services!

As indicated above, there are many questions that can be asked and lots of tools to use in the role of a COO.  It is important to focus on the top three strategic issues out of the more than 200 that may arise, some of which are purely symptoms.  These are the keys to creating and sustaining momentum and to ensuring the team has early traction and success in the change process.    

Performing the role of COO in a professional services firm requires balance, like walking a tightrope.  You must also capture a vision that’s in the best interest of the firm.  Only in this way will you fully exploit your potential in this role.