Workplace Safety Stays Top-of-Mind At SikichFirm considers best practices for safety a priority.

While every accounting firm leader considers workplace safety a priority, as a former law enforcement and tactical operations officer with a degree in criminal justice, Chris Geier looks at that responsibility through a different lens than most firm leaders do—and perhaps with a heightened sense of urgency.

Geier, CEO and managing partner at Sikich/Chicago (FY17 net revenue: $152 million; 92 partners, 813 total staff; 16 offices), helped initiate the firm’s workplace safety and security initiative four years ago, before he became CEO.

“I don’t have the typical linear background of a managing partner. I’m not a CPA. Early in my career, I was in law enforcement and have a law enforcement background. So safety and security are always top-of-mind for me,” Geier told PAR.

And with good reason. Workplace violence is the third-leading cause of death for employees in professional and business services, according to Injury Facts 2016®. In 2013, there were 4,460 injuries and 65 deaths among workers in the professional and business services field.

Geier reached out in 2015 to a friend and former law enforcement colleague who now has a security risk management company, Chicago-based Hillard Heintze, They collaborated to initiate a firmwide security and safety awareness program at Sikich. Once it launched, the firm increasingly invested more heavily in it, building a compre-hensive program that addresses the physical work environment, workplace violence prevention, and cybersecurity.

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June 30, 2018February 28, 2019

Public Accounting ReportTHE INDEPENDENT NEWSLETTER OF THE ACCOUNTING PROFESSION SINCE 1978

DECEMBER 2018 | VOLUME XLII, NO. 12

IN THIS ISSUE

1 Workplace Safety Stays Top-of-Mind At Sikich

3 PAR News Digest

5 Executive Forum: Great Ideas Don’t Just Come From Those in Charge

7 People, Firms, and Promotions

2 PUBLIC ACCOUNTING REPORT

Sikich now has employees in more than 30 states and four countries, and the security program recognizes that many of its employees work at client sites and outside Sikich offices. One of the essential elements of the pro-gram is giving employees tools for understanding and iden-tifying the potential for workplace violence, even when the workplace is a client site.

“The program goes way beyond physical security. It gives people tools for understanding signs of potential for workplace violence,” Geier said.

Initially, Hillard Heintze provided the firm with a report on safety, security and risks at all its locations. From that, training programs were developed and refined, and they’ve grown exponentially. The reports also raised consciousness and informed decisions about security when the firm con-siders opening new offices, Geier said.

Recently, Sikich held 25 sessions of workplace violence prevention training led by Hillard Heintze that were man-datory for all employees. The training sessions were pre-sented live on site at the firm’s larger offices, but it was provided in an online virtual setting for all other employ-ees. All employees are required to have workplace safety training annually through courses offered by the firm’s in-house Sikich University.

In addition, partners and managers are required to take courses that cover security red flags and signs to look for in employees that may indicate potential need for action. The courses cover matters such as workplace

behaviors they should report, when protection orders are appropriate and firm processes for handling those situations, and indicators that an employee may need support or help.

“We want a workplace violence prevention program that protects our employees and helps them identify ways to be safe and opportunities for early intervention,” Geier said. “We started with courtesy, respect and safety and looked at everything through that lens for our people.”

The partner and manager program includes training for handling difficult terminations, which can trigger work-place violence. Substance abuse is often a major factor in those situations, Geier added.

“We are giving them the tools to identify potential prob-lems and what to do if they feel somebody potentially is in trouble or has a problem. It also helps prepare them for how to respond if somebody is acting in way that they nor-mally wouldn’t be acting. You’d think it would be intuitive, but it’s not, and people often don’t know what to do in these situations. Our employees now have been trained, so they know what to do. Personal behavior of individuals is one of key components to being able to identify potential situations,” Geier said.

Another aspect of the firm’s emphasis on workplace safety is that it has a “threat assessments team.” Its mem-bers vary according to the situation, but it includes a core group of representatives from operations, human capital, legal and facilities management, Geier said.

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“They can pull in other members as they need to. At its core is confidentiality” – even when it comes to the CEO. “Unless it is a situation that requires elevation to my level, I wouldn’t be aware of the issue or be brought into the situ-ation,” Geier said.

The firm also has a system called Sikich Red Flag, which offers confidential way for people to report their concerns to the firm through a third party.

For example, if somebody overheard an employee, whether at Sikich or a client site, saying he is angry at his ex-wife and that he just bought a gun, the person can report it through Sikich Red Flag.

“Confidentiality is a cornerstone to the program,” Geier said. “Using an outsourced vendor ensures confidentiality and can minimize reluctance to report.”

Other elements of the comprehensive program: Updated security procedures regarding guests, doors, fire drills and evacuations; reinforcement of the use of benefits such as the employee assistance program; and the hiring of the firm’s first security administra-tor, who led the implementation of best practices specifically within the internal technology function of the firm. Those best practices have included cre-ating an information security awareness program, adding two-factor authentication for remote access, annual penetration tests and control assessment, and upgrading infrastructure. Phishing tests have also been performed as part of this effort.

Justifying the related expenses “is an easy thing,” Geier added. “I can be fairly persuasive. If we were ever to have an issue that we could have prevented or given information that prevented a tragedy, well, it’s impossible to put a dol-lar value on that. We manage this initiative for effectiveness and efficiency, but absolutely it’s a significant investment, and we think it’s worth it.”

Geier acknowledges that worst-case scenarios, such as an active shooter on site, are unlikely.

“That probably won’t happen, but those situations do happen, and you don’t want to be the place where it does happen,” Geier said. “For our people not to know what to do in urgent situations or a potentially dangerous situation is not acceptable to me.”

The training has been very well received across the firm. Employee surveys and feedback indicate employees find it valuable and are grateful for it.

Geier encourages other leaders to take serious steps when it comes to safety and security.

“Not just managing partners at accounting firms, but for anybody leading a company, the first step is actually to start thinking and talking about it. It isn’t a comfort-able subject. Our employees don’t just look to us for a nice workplace, but they have the reasonable expectation that what we’re asking them to do and the places we ask them to go are safe. I think it’s important for every CEO to pay attention to that. This is not something you want to stick your head in the sand about.” ■

PAR NEWS DIGEST

The merger of Schenck/Appleton, Wis., and Minneapolis-based CliftonLarsonAllen will mark the first merger of two Top 100 firms for 2019 when it goes into effect Jan. 1. Schenck has FY17 net revenue of $81 mil-lion, 62 partners and approximately 500 employees in its 10 offices, all located in Wisconsin. Schenck President Daniel Young will become chief practice office for CLA’s Wisconsin region. When the deal is complete, the combined firm will generate approximately $155 million annually from Wisconsin operations and employ more than 1,000 people

in the state. “For our clients, we’ll bring greater and more diversified services,” Young said. “In addition, we’ll create exciting growth opportunities for our team.” CLA is one of the 10 largest firms in the United States, with FY17 net revenue of $865 million, 735 partners, more than 5,400 employees and 110 United States locations. The deal does not include Schenck’s investment banking affiliate, Taureau Group LLC, known as Schenck M&A Solutions before it spun off into a new company last year. Schenck retained its ownership stake. Taureau Group’s managing directors will

4 PUBLIC ACCOUNTING REPORT

purchase Schenck’s shares on Jan. 1. (Sources: CLA, Schenck, Milwaukee Business Times, Green Bay Press Gazette)

Mark Weinberger is stepping down as global chair-man and CEO of EY on July 1. The date marks the begin-ning of the firm’s 2020 fiscal year. The firm expects to appoint his successor in January, allowing for a six-month transition period. During Weinberger’s tenure, the firm’s annual compound revenue growth rate was 8.5%. Over the past six years, it has transacted more than 120 acquisitions to bring in new skills and capabilities, such as cybersecurity, artificial intelligence and data. The firm now employs more than 20,000 data and analytics practitioners and more than 2,000 data scientists, who have developed blockchain, cyber and digital solutions. Among Weinberger’s accom-plishments cited by the firm are an increase in women on EY’s highest governing body to “more than 26%,” inclusion of more emerging market and early stage partners to bring in younger voices, and an FY18 partner class of nearly 30% women. Weinberger has served on the EY Global Executive Board for the past 10 years and served on the Americas Executive Board for the five years prior. He was elected EY global chairman and CEO in 2012 and successfully led EY through its Vision 2020 strategy. “When I reflected on the massive changes we have navigated over the last seven years and the strong position we command to enable EY to excel in the years ahead, I realized that the time is right for me to step aside,” Weinberger said. “I know there is an even brighter future for EY and I’m excited to see what will be shepherded in by the next generation of exceptional EY leaders.”

Chicago-based Sikich is acquiring Knutte & Assoc., an audit, accounting and tax firm based in Darien, Ill. “Our clients will especially benefit from their specialized expertise on auditing issues in the government, education and not-for-profit sectors,” said Sikich CEO Chris Geier. (See related article, page 1.) The deal is expected to close Jan. 1. Knutte & Assoc. specializes in completing student financial assistance (Title IV) compliance audits for edu-cational institutions, as well as audits for governmental entities and not-for-profit organizations. “Joining Sikich

allows us to offer our clients access to an expanded team of talented audit, accounting and tax experts,” said Michael Knutte, CEO of Knutte & Assoc. Sikich’s work in the gov-ernment, not-for-profit and education sectors includes offering accounting, advisory and technology solutions to colleges and universities, healthcare organizations, social service agencies, private foundations, welfare organiza-tions, religious organizations, political action committees, civic and community organizations, and trade associations. “Knutte & Assoc. is a nationally recognized specialist in Title IV audits and consulting, and will enhance our abil-ity to help clients comply with this important requirement related to student financial assistance,” said Richard Lynch, partner-in-charge of Sikich’s not-for-profit and educa-tion practices. The deal will “extend our expertise and add increased depth to our work with governments, not-for-profit organizations and educational institutions,” he said. The Knutte & Assoc. team will work from Sikich’s offices in Chicago and Naperville, Ill. “In four decades of consult-ing to CPA firms, I have never seen a firm like Knutte,” said Allan D. Koltin, CEO of Koltin Consulting Group/Chicago, who advised both firms on the deal. “Dad starts a small CPA firm, and one by one convinces his four sons to all join the firm. He passes the baton to them, and they go out and build a Top 300 CPA firm nationally and become rec-ognized as the industry expert in Title IV audits of educa-tional institutions. To watch how the brothers—Mike, Dave, Joe, and Matt—worked together and respected and trusted each other would have made any parent or family business owner proud. I can’t imagine we will see a success story like this again in the profession for a long time. In terms of Sikich, it continues its magical journey as well and contin-ues to expand as a national powerhouse. It remains well ahead of the industry in terms of its consulting and tech-nology platform, which is proving to be a major attraction for other firms desirous of joining them.”

Squar Milner, based in Newport Beach, Calif., is merg-ing in Boas & Boas/San Francisco. Boas & Boas has rev-enue of about $3 million and approximately 10 employees. The deal, which is effective Jan. 1, expands Squar Miner’s San Francisco presence: About a year ago, it acquired DZH

5 DECEMBER 2018 | VOLUME XLII, NO. 12

Phillips, another San Francisco firm. Squar Milner has FY17 net revenue of $101 million and approximately 40 partners and more than 500 employees. The firm has 10 offices, including one in the Caymen Islands. (Source: San Francisco Business Times)

EY decided to open its new $22 million, 600-person Exceptional Delivery Growth Engine Center next year on Nashville’s famous Music Row. The facility will spe-cialize in tech-enabled tax-managed services, software

development, design and testing. The Big Four firm already has 300 employees working in Nashville. “We looked at 18 cities before settling on Nashville,” said Dan Thibault, a partner at EY and deputy director for its national tax practice. “Factors we looked at were access to an educated workforce and a large number of students with both busi-ness and IT skills. We’re recruiting from a wide variety of schools. We can also retain talent because people want to stay here, especially young professionals.” (Source: The Tennessean) ■

Andy Armanino

EXECUTIVE FORUM

Great Ideas Don’t Just Come From Those in ChargePartners and others in firm leadership positions are not the only sources of great ideas that drive success of the firm. Great ideas backed by strong business cases can emerge from all corners of the firm, and even outside it. This month, accounting firm leaders recall and explain ideas from staff members and clients that their firms have implemented, and how those initiatives have impacted the firm.

Andy Armanino, managing partner, Armanino/San Ramon, Calif. (FY17 net revenue: $242.7 million; 108 partners; 969 staff; 10 offices):

I have been the executive liai-son to the firm’s Staff Advisory Board (SAB), a group made up of young leaders elected by their peers. The SAB works on programs

designed to support the firm’s purpose, values and anchors. They are teeming with great ideas, and we have success-fully implemented the best ones. This year, we launched two staff-originating programs: The Make a Client’s Day program and the Business Development Shadowing pro-gram. Each initiative empowers our staff to develop rela-tionships and skills that will ultimately grow their careers

and serve clients better. Make a Client’s Day allows any firm staff member to show appreciation to a client with a personalized note and a gift. Usually it’s something like cupcakes or coffee, but sometimes it can be bigger and more personalized. A group of staff came together to buy a bike helmet a client was eyeing. Another gifted tequila to a client moving to Mexico. Our Outsourced Finance and Accounting has even challenged every staff member to participate. We’re on pace for 100 “appreciations” by year’s end. Each appreciation builds that all-important personal bond between staff and client. The Business Development Shadowing program exposes staff to the process of gen-erating business and finding creative solutions for clients and potential clients that will ready them for the next step in their careers and empower them to confidently pursue opportunities. Each participant is matched with a men-tor in their local region, preferably in their direct field of practice. The mentor teaches the mentee the process of business development activities, such as prospect meet-ings, client calls, in-person meetings, networking events, conferences, and more. By shadowing with a firm partner or senior manager, mentees can learn tried and true prac-tices. We currently have around 60 staff signed up for this growing program, with three to four business development activities per week.

6 PUBLIC ACCOUNTING REPORT

Anthony J. Caleca, managing partner, Brown Smith Wallace/St. Louis (FY17 net revenue: $46.3 million; 30 partners; 311 total staff; three offices):

In 2016, our firm began the pro-cess of updating our mission, vision and values. We wanted it to be a collaborative process that involved

people at all levels within the firm. We invited everyone to participate in SWOT analysis brainstorming sessions. The ideas that came out of these sessions became the founda-tion of our strategic plan. During the SWOT analysis brain-storming sessions, an overwhelming number of people expressed that they wanted to further their careers at the firm. To meet that need, we created the Professional Growth Steering Committee with employees from all levels. The team invested significant time and energy in the planning process and ultimately launched a professional growth sur-vey. The survey was designed to better understand employ-ees’ ideas and perspectives. After reviewing the results, the committee implemented the Professional Growth and Career Path Process, which includes new competency matri-ces and a tool called the Three-Year Strategy. The Three-Year Strategy is a career and personal growth roadmap that each employee, with the help of a performance manager, develops to fulfill his or her short- and long-term professional aspira-tions. This process allows for introspection and thoughtful discussion with performance managers about professional goals, personal goals and feedback methods. The Three-Year Strategy has resulted in better, more frequent, open com-munication between employees and performance manag-ers. Participants have said that the process is reflective—not daunting—and it helps them connect with their performance manager. Performance managers have found it useful, too. It allows them to pick the best way to provide feedback and answer questions. The Three-Year Strategy does not simply have potential. It is mission critical. It will support the firm’s continued expansion and growth and may also make a dif-ference in our recruitment process.

Dave Stende, managing partner, and Ross Manson, chief innovation officer, Eide Bailly/Fargo, N.D. (FY18 net revenue: $293 million; 270 partners; 2,000 total staff; 33 offices):

Stende: An idea that origi-nated with a staff member was our Eide Bailly Exchange pro-gram. As we began to culti-vate additional service areas, some of our staff were curious and wanted to explore these new avenues. As a result, we implemented the Eide Bailly Exchange, which is a program that encourages staff to learn

more about different specialty service areas and gain additional experience. This program has developed and improved over time and has really created a cultural shift. Instead of worrying that learning a specialty ser-vice might detract from their career by taking focus away from their core goals, staff members are now generally excited to explore additional options. We have even had a few people change their focus entirely to a specialty area! This program increases our skills sets and knowledge, and it has proven highly ben-eficial, so we are considering expanding it further by working it into our career advancement path.

Manson: After assisting a client with the Power BI plat-form, we realized just how innovative it was and how much potential it had with our own staff. As a result, we built out and launched our own Power BI dashboards for internal reporting and have continued to learn what a powerful system it is. Not only is Power BI a great dash-board, but there is also a mobile app component. As we continue to benefit from it internally, and as our staff get more familiar with it, we see it as a beneficial service line down the road to help our clients mobilize their data in a timely fashion.

Ross Manson

Dave StendeAnthony J. Caleca

7 DECEMBER 2018 | VOLUME XLII, NO. 12

Rob Dutkiewicz, president, Clayton & McKervey/Southfield, Mich. (FY17 net revenue: $12 mil-lion; nine partners; 75 total staff):

We are proud of a great idea that came from managers who drove and implemented a change in our staff performance feed-back model. There was universal firm frustration that the coach-

ing feedback was not as meaningful or timely enough to be effective. This was most pronounced with our new pro-fessionals, where timely feedback is needed often, and in terms that are easy to understand and not overwhelming. The previous process was simply too long and exhaustive. As a result, the feedback wasn’t occurring often enough, and the comprehensive approach wasn’t providing the most important feedback at that early and impressionable part of one’s career. To be proactive, a handful of manag-ers scrapped the old process and created a new one that we now call Real Time Coaching. Real Time Coaching has

resulted in providing relevant and focused feedback on a timely basis. After much discussion and review of the most important skills and characteristics found in successful hires, the management team identified four character-istics that are most important in the early stages of their development, including: 1) independent proactiveness; 2) engaging interactions; 3) agility; and 4) attention to detail. Both the reviewer and the employee prepare a one-sheet evaluation prior to meeting. It usually takes about an hour for each person to prepare and discuss. In addition, they discuss what is coming up in their schedule for the next two weeks and the areas that need their greatest focus. For our new staff, this [evaluation] is provided every two weeks, generally for the first six months of employment. After that, they come to an agreement as to the frequency of the feedback. The results have been spectacular. In addition to the more meaningful feedback, there is greater engage-ment and dialogue, which builds a greater sense of belong-ing. Our retention has improved. We have expanded this coaching and feedback to our seniors and are looking to implement Real Time Coaching in other parts of the orga-nization as well. ■

Rob Dutkiewicz

PEOPLE, FIRMS, AND PROMOTIONS

BKR International admit-ted Alexander Advisory Ltd. of Pembroke, Bermuda, into member-ship. The firm has three partners and specializes in corporate services, trusts and estates, investment managers and advisors, alternative investment funds, family offices and private clients, shipping, and tech companies. AAL is strategically and operationally aligned with the Bermuda-based law firm Alexanders Barristers & Attorneys and its related corporate management company, Alexander Management Ltd.

Rod Smith joined EisnerAmper/New York as a partner in the Assurance and Technology Control Services Practice within the Audit Group. He specializes in A&A, IT audits, public companies, SOC reports, reporting standards and internal controls. In addition, the firm admitted four new partners: Katie Brandtjen, Financial Services Group/San Francisco; Blair Robbins, Audit Group/Iselin, N.J.; Michael Sadler, Financial Services Group/Syosset, N.Y.; and Lisë Stewart, Private Business Services Practice/Iselin.

Cherry Bekaert, based in Richmond, Va., welcomed Terri C. Antley as a tax partner. She is based in the firm’s Greenville, S.C., office. Most recently, she was vice president of tax for a hospitality company in Greenville.

Dixon Hughes Goodman, based in Charlotte, N.C., welcomed Lance Deal and Mayur Java as directors with the Advisory Services Group in the firm’s New York office. Deal comes to the firm from Morgan Stanley. Java joins the firm from

8 PUBLIC ACCOUNTING REPORT

PwC, where he was a director of advisory services. Nick Brunotte joined the firm as a director in the firm’s dealerships industry practice. He is based in Charlotte. He comes to the firm from Brady Ware, based in Dayton, Ohio.

Grant Thornton promoted Billy Moore from CFO to the newly formed role of chairman of the firm’s operating committee. In his new role, Moore will lead targeted operational teams and functions at the firm. He will report to CEO Mike McGuire, whose term was recently extended to July 2021, his retirement date. Moore previously served as the pro-fessional standards partner for the firm’s Carolinas practice. Moore and McGuire both are based in Charlotte, N.C. The firm tapped Sam Shaw to succeed Moore as CFO. Shaw is based in Denver. Kevin Pleiter joined GT as a principal in its Financial Services Advisory practice. He is responsible for shaping and driving the firm’s innovation efforts in finan-cial services. Pleiter will work out of the firm’s offices in Stamford, Conn., and New York. Most recently, he was a vice president and senior client partner at IBM.

LBMC, based in Nashville, Tenn., appointed Andy Lowe to be its mar-ket leader for the Knoxville, Tenn., area. He is responsible for growing

client relationships and recruiting leaders to support LBMC’s continued growth in East Tennessee. He will continue to lead the Valuation & Litigation Support Services Group in the Knoxville office.

RKL LLP, based in Lancaster, Pa., admitted Michael J. Eby and Leonard P. Metkowski to partner-ship in the Tax Services Group. Eby specializes in pass-through business taxation and state and local tax planning matters. Metkowski’s spe-cialized expertise includes business formations, mergers, acquisitions and divestitures, cost segregation, cost analysis, budgeting and strategic planning.

RSM named three new members to its board of directors: Sudhir Kondisetty, Sara Lord, and Jerry Martin. Each new board member was elected to a four-year term, effec-tive Dec. 1. Kondisetty is a consulting principal and office managing partner of the firm’s Philadelphia office. Lord is the national director of audit ser-vices, a member of the audit leader-ship team and leads the Assurance Standards and Methodology Group. She is based in Minneapolis. Martin is a partner specializing in global tax matters and leads the firm’s interna-tional tax practice. He is a member of the firm’s tax leadership and global strategy team teams. He is based in

Minneapolis. Dave Scudder, former managing partner and CEO of McGladrey & Pullen, was appointed to serve as national wealth manage-ment leader. He is also a former board member. Scudder is based in Chicago. Dan Ginsburg recently joined the firm as its national public policy leader. In this new role for RSM, Ginsburg is responsible for the firm’s public policy activities, with a specific focus on issues of importance to middle-market business leaders. He is based in Stamford, Conn. Jay Schulman, a principal based out of the firm’s Chicago office, was named national leader of blockchain and cryptocur-rency services. He is responsible for leading RSM’s efforts to help its cli-ents account for the complex regula-tory, tax and trade, auditability, risk and compliance implications related to global transactions and exchanges.

Szymkowiak & Assoc./Williamsville, N.Y., admitted Andrew J. Pitt to partnership. He concen-trates on tax compliance, consulting and planning.

Weaver, based in Houston, opened a New York office. Its pur-pose is to better serve current and prospective clients in the financial services and energy compliance ser-vices practices and to accommodate expected growth of these practices in the Northeast. ■