The Billion Dollar Accounting CEO w/ Alan Whitman

Podcast

Episode Round-Up

In this episode of the Growing Your Firm podcast, host David Cristello welcomes Alan Whitman, the former CEO and chairman of Baker Tilly. Alan shares his remarkable journey of transforming Baker Tilly from a $475 million firm to a $1.5 billion powerhouse. 

Throughout the conversation, Alan describes how businesses can thrive – largely by prioritizing strategy over aimless “accumulation.”

Guest Bio: Who Is Alan Whitman?

Alan Whitman is a seasoned leader in the accounting and advisory industry, known for his transformative role as the former CEO and Chairman of Baker Tilly. As leader, he successfully scaled the organization from $475 million to $1.5 billion, demonstrating a keen understanding of strategic growth and operational maturity. 

Currently, Alan runs an advisory practice where he shares his expertise in scaling firms and implementing best practices for growth. He is a sought-after speaker and thought leader, regularly publishing insights on leadership and organizational development through his weekly newsletter. 

Alan is also active on LinkedIn, where he connects with professionals across the industry. 

Episode Synopsis 

Becoming Baker Tilly CEO

David kicks off the conversation by asking Alan about the emotions he felt upon being selected as CEO of Baker Tilly. Alan recalls sitting in his office when he received the call from his predecessor. Initially expecting disappointing news, he was instead informed that the board had voted for him to take the helm. 

A mix of excitement, relief, and anxiety washed over him as he realized the magnitude of the responsibility he was about to undertake.

Whitman’s First Days as CEO

Transitioning into the role, Alan focused on listening and observing during his first 90 days. He had been with the organization for a while, but he understood the importance of allowing the firm to continue running smoothly. 

With the help of experienced senior executives, he took notes and built an agenda for maturing the organization. His approach emphasized collaboration, celebrating people, and revering the brand.

Generational Shifts in Operating Models

Alan introduces the concept of “Gen 1” and “Gen 2” operating models. He describes Gen 1 as focused on accumulation—clients, revenue, and people—without a strong adherence to strategy. This approach worked well initially, but after the financial crisis of 2008-2009, Baker Tilly faced stagnation. 

Alan recognized the need for a more intentional strategy to reignite growth and mature the organization.

An Argument for Prioritizing Strategy Over Revenues

Alan emphasizes that not all revenue is equal. He explains that revenue should align with the firm’s strategic goals. By focusing on specific industries and service capabilities, Baker Tilly could prioritize valuable revenue streams. 

He notes that firms often fall into the trap of being “all things to all people,” which dilutes their enterprise value. Instead, he advocates for a focused approach that targets specific clientele and service offerings.

Building a Scalable Organization

As Baker Tilly grew, Alan realized that the firm needed to systematize its operations to scale effectively. He discusses the importance of having a clear strategy that goes beyond mere financial goals. 

Alan believes that a firm’s vision and mission should guide its actions, and every initiative should contribute to executing that strategy. He stresses that results are a byproduct of effective strategy execution.

Navigating Talent Challenges

The conversation shifts to the ongoing talent battle in the accounting industry. Alan acknowledges that while Baker Tilly had low turnover rates, the firm still faced challenges in attracting and retaining talent. 

He emphasizes the importance of developing existing employees and creating an environment where they feel included and valued. Alan shares insights on how to intentionally develop talent through experiential learning and mentorship.

A Key Leadership Priority: Developing People

Alan highlights the significance of connecting with employees on a personal level. He believes that understanding their struggles and aspirations is crucial for effective development. 

By providing opportunities for experiential learning, such as involving team members in client meetings, firms can accelerate their growth and development. Alan argues that intentionality in talent development can reduce turnover and enhance overall organizational performance.

Fitting Events Into a Larger Strategy

David and Alan discuss the role of events in business development. Alan stresses that events should not be viewed as standalone activities but rather as vehicles to achieve strategic goals. 

He encourages firms to create detailed plans for events, outlining who they will engage with and how they will follow up to generate business. Without a clear plan, events can become costly endeavors with little return on investment.

Conclusion and Key Takeaways

As the episode wraps up, Alan shares one of his key takeaways: the importance of asking the right questions. He advises against binary questions that limit thinking and encourages leaders to explore what it will take to achieve their goals. By fostering a culture of inquiry and strategic thinking, organizations can unlock new possibilities for growth.

Listeners are encouraged to connect with Alan through his website and LinkedIn, where he shares valuable insights on leadership and organizational growth.

Actionable Insights for Your Firm

• Prioritize Strategy Over Revenue: Focus on revenue that aligns with your firm’s strategic goals, and avoid pursuing clients or projects that do not contribute to your long-term vision.
• Develop a Clear Plan for Growth: When proposing initiatives, ensure there’s a detailed plan that outlines objectives, target audiences, and expected outcomes. 
• Engage in Intentional Talent Development: Connect with your team members on a personal level and provide them with opportunities for experiential learning.
• Ask the Right Questions: Shift from binary questions (yes/no) to open-ended ones that encourage deeper thinking. 
• Focus on Execution of Strategy: Ensure that every action taken within the firm is aligned with the overall strategy – while regularly communicating the importance of being “on strategy” to your team.

Minute-by-Minute

00:00:00 – Introduction to Alan Whitman

00:01:06 – The Moment of Becoming CEO

00:02:50 – First 90 Days: Listening and Observing

00:04:40 – Generational Operating Models: Gen 1 vs. Gen 2

00:06:55 – The Importance of Strategic Revenue

00:10:09 – Defining Geographic and Service Strategies

00:12:05 – Focusing on Key Industries for Growth

00:13:50 – Managing Leaders and Their Progress

00:18:00 – Navigating Talent Challenges

00:21:02 – Intentional Development of Talent

00:25:01 – Connecting with Employees for Development

00:27:34 – The Role of Events in Strategy

00:30:56 – Evaluating the Effectiveness of Events

00:34:46 – Asking the Right Questions for Growth

00:36:04 – Understanding Strategy vs. Results

00:43:43 – Components of a Strong Strategy

00:44:54 – Connecting with Alan Whitman