Follow the leaders: a guide for CalCPA's--and the profession's--future leaders.

editor's note:

One of CalCPA Chair Chris Yahng's initiatives is the CalCPA Leadership Institute, a high-level, five-day program that teaches members the skills necessary to become CalCPA's and the profession's future leaders. The class of 2006 began its training in January to great acclaim.

In connection with this, Yahng invited Tom Rimerman to a special fall meeting of CalCPA Council to share his insights on leadership.

Rimerman knows a thing or two about leadership. He served as CalCPA president from 1982-83 and was AICPA chairman from 1990-91. What's more, he served on the Financial Accounting Standards Board as the AICPA's FAF member, and represented the United States on the governing council of the International Federation of Accountants--the only individual to hold both of these prestigious positions.

[ILLUSTRATION OMITTED]

In his introduction, Yahng mentioned the professional accolades Rimerman has received, including CalCPA's Distinguished Service Award in 1992 and the AICPA Gold Medal for Distinguished Service in 2001.

Rimerman began his career at Menlo Park-based Frank, Rimerman + Co., which was then a two-person firm. For more than 30 years, he served as the firm's managing partner. Through extraordinary growth, Frank, Rimerman + Co. became the largest California-based firm and one of the 50 largest firms in the country.

After Rimerman's introduction, he walked to the lectern and without a word, played a recording of La Marseillaise, motioning everyone to stand. As they did, council members exchanged puzzled glances. As the music faded, Tom began:

Before you think I've lost my mind, let me explain. In July 1990, I attended the annual meeting of the Institute of Chartered Accountants in England & Wales. For the first time in its more than 100-year history--and contrary to the wishes of almost everyone at the Institute--the meeting was held outside of the British Isles.

Jock Worsley, the incoming president, insisted the meeting be held in Brussels to focus members on the future and the significance of the new European community. He even invited representatives of other countries to attend, and I represented the United States.

Worsley began the meeting by asking everyone to stand as La Marseillaise was played in honor of the attending French representative on Bastille Day. Wow! I was impressed. Think about that: changing a 110-year meeting tradition and then honoring the national holiday of the French--England's adversaries for more than 900 years. What a way to communicate a new vision to your organization.

I don't remember all of what Worsley said that day, but I remember the message. And I hope in your future leadership roles you will remember the music and my message--break free of the status quo and be as adventurous, experimental and as willing to take risks as Jock Worsley.

EXPERIENCE TEACHES

First, I'd like to congratulate Chris Yahng on the Leadership Institute. I think it's a great idea, in fact, I instituted a similar program when I was CalCPA president.

It's a pleasure to be here with the CalCPA leadership, and all of you in this room are leaders--if you weren't, you wouldn't be here. You might have different roles--committee chair, chapter president, CalCPA chair or first vice chair--in fact, probably most of the next 10 or so CalCPA chairs are here; they just don't know it yet.

Since I was CalCPA president, all of you are my successors. And the title of this presentation is "What I Always Wanted to Tell My Successors." I could do that in one sentence by citing part of Murphy's Law: "You can't win, you can't break even and you can't quit."

It is an honor to be selected as a leader of one's profession or organization. However, moving to a top position doesn't magically confer competence upon you--being selected only gives you the opportunity to become a leader.

There are no secret formulas or shortcuts to prepare you, though leadership does require some experience and great discipline. Preparing for leadership doesn't come from books or a speech like this one.

People learn to become leaders through difficult experiences. They learn through the agony of having to come up with hard answers, through much feedback and forgiveness from valued sources around them.

And, importantly, they learn from failure.

ADVICE FOR FUTURE LEADERS

The following are five points of advice for the profession's new and future leaders that I've gathered over the years. While some are light-hearted, their serious intent should not be masked by a bit of humor.

1 First: As a new leader, you're feeling important and confident. Euphoria has set in. But don't be concerned; it won't last. There is one thing a leader can always count on--many people won't like you, or at best, won't agree with your decisions. You must remember that, as a leader, you go about pouring water on some fires and gasoline on others. The trick is knowing which. Your organizational chart may have you on top, but you may find you're in the center of a web of conflicting interest groups, some of which will never be fully satisfied.

By definition, you're almost always wrong. If you push your own programs, you're ignoring some constituencies; if you do not, you are not a leader. If you change your mind, some will say you're wishy-washy; if you don't, others will call you pig-headed. Although you must appear as though you're trying to accommodate everyone, you must come to grips with the fact that you cannot please everyone.

2 Second: Remember that your job is complex and changing, and you exist in part to be a mediator. You must be all things to all people at some time, no matter how uncomfortable it may be to you. Remember to:

* Be open to all of the profession's needs, but know which ones cannot be served most efficiently by your organization.

* Communicate with your members, regulators and public, but do not speak out of both sides of your mouth.

* Listen with an attentive ear, but know when not to hear or see.

* Produce everything through the proper committee, but with great speed and without error.

* And, as Peter Drucker says, "Nobody wants to hear about your labor pains--they only want to see the baby."

3 Third: You must develop animal instincts. Leaders must have the vision of an eagle, the wisdom of an owl, the memory of an elephant, the industry of a beaver, the courage of a lion, the cheerfulness of a cricket, the complacency of a camel, and many times, the stomach of a goat!

4 Fourth: There are several "laws" you should keep in mind as you begin your leadership role:

* Nothing is as easy as it appears. Everything takes longer than expected. As Murphy said, "If anything can go wrong, it will--and at the worst possible moment." And remember O'Toole's corollary to Murphy's Law: "Murphy was an optimist!"

* Anytime things seem to be going better, something has been overlooked.

* Nothing is impossible for the people who do not have to do it themselves.

* People have the right answers to all problems, but these answers disappear when those same people are put in a position where they can really understand the problem and do something about it.

* And, whatever happens, there is always someone who knew it would.

5 Fifth: In the words of Calvin Coolidge, "The winning edge is not a gifted birth or a high IQ or in talent. The winning edge is in attitude, not aptitude." I believe your organization will reflect you. If you act with enthusiasm, intensity, urgency and focus, that's exactly the way your organization is going to be and exactly how your people will perform.

Finally, a leader is not appointed because they know everything and can make every decision. They are selected to bring together the available knowledge, give direction for the work to be done and create an environment for it to be accomplished.

THE LEADERSHIP CHALLENGE

I believe that leadership is best thought of as a function within an organization, rather than a trait of an individual.

It's been said that leaders have two important characteristics: they are going somewhere and are able to persuade others to go with them. Leaders are painters of vision and architects of the journey.

If you read only one book on leadership, read The Leadership Challenge by James Kouzes and Barry Posner. In it, the authors cite five practices of successful leaders:

1. Leaders challenge the process. They are pioneers and risk takers. Leaders are learners, searching for opportunities to question and change the status quo. Leaders go out and find something that is broken and fix it.

2. Leaders inspire a shared vision and passionately believe they can make a difference. Leaders live life backwards--they see the result in their mind first.

3. Leaders enable others to act, fostering collaborations, building teams and empowering others. There is a simple one-word test to determine if someone is on the road to becoming a leader: That word is "we."

4. Successful leaders model the way. Leaders are clear about their beliefs and their behavior is consistent with those beliefs. Leaders are role models and set standards for excellence.

5. Leaders encourage the heart. They recognize individual contributions and make the adventure fun. Leaders must remember that members are there not because they have to be, but because they want to be. Make the adventure fun.

John Gardner, who was a client, said, "To the extent that leaders enable followers to develop their own initiative, they are creating something that can survive their own departure. They create a legacy that will last."

However you characterize a leader, I believe your success depends not so much on what you are able to do, as on what you are able to get others to accomplish. When the most effective leader's work is done, people will say, "We did it ourselves." Unless you can make them feel that way about what they have done, they probably never would have done it.

SETTING A MISSION

In her book Making a Difference, leadership specialist Sheila Bethel lists the No. 1 leadership quality as "a leader has a mission that matters."

A leader's first task is to define the mission. One can characterize a mission as setting a new vision. In the words of Wayne Gretzkey, "In hockey, it ain't where the puck is; it's where the puck will be." A mission will only become part of the organization's vision when it is conveyed, communicated and assimilated by all those involved.

Contrary to popular belief, it's not necessarily the most talented people who achieve outstanding results. Or the smartest, the hardest working or the most creative. Success comes to those who are persistent, focused and organized. No matter what the endeavor, you can be successful once you clarify your objectives and focus on achieving them. I'm not talking about vague hopes and intentions; I'm talking about written, definitive goals.

The link between specific goals and success is well established. In his book Unlimited Power, Tony Robbins cites a Yale graduating class survey that found that only 3 percent of the graduates used written, definitive goals. Ten years later, they surveyed the class again and found that this same 3 percent out-earned the entire rest of the class.

REACH FOR THE STARS

When I planned what I wanted to accomplish during my year as AICPA chairman, I did a lot of research. I read, talked to people and reflected. I then presented my goals in sort of an "exposure draft" to a few past leaders of our profession. Let me share with you the results.

First, I thought much of the criticism confronting the profession at that time was an expression that financial statements did not contain the information necessary for decision-making. I wanted to appoint a new AICPA commission to reexamine financial reporting in general, and the preparation and use of financial statements specifically. The response I received was, "Great idea, but it won't be easy. There are many pressure groups--the preparers, regulators and different size firms--and none of them agree!"

Second, I wanted to produce a new "model bill" with NASBA, or uniform accountancy act, as I renamed it, and I wanted it to be free of alternative provisions and approved by the completion of my year. The response was, "You're crazy, it will take two, three or four years." It took three years to do the last model bill and it still had alternatives.

Third, I believed we should provide a means for affiliations with the AICPA of non-CPA professionals working with the firms. My first words of encouragement were: "You can't have three goals. One, maybe two, if they're easy--but not three. The membership is against it, council won't approve it, but other than that, it's a great idea."

Fourth, I wanted to accomplish Congressional enactment of the AICPA Federal Financial Management Program. The response? "Impossible! It's dead! Congress is against it and the executive branch is not interested. Don't take it on; you will go down with it." I figured this wouldn't be accomplished, but I thought responsible management of our federal budget was of enormous importance, an issue the AICPA should speak on, and I wanted to at least keep it in the public spotlight so at some time in the future it could be done.

After recovering from the advice and counsel of the "learned leadership," I drafted my mission into my inaugural remarks as chairman. Later, my wife Gayle relayed comments she overheard from several members in the elevator: "Good speech, but he's out of touch if he thinks he can accomplish those goals."

When I completed my term as chairman, the Jenkins Committee on Financial Reporting was in place; the Uniform Accountancy Act was approved; the program for non-CPA affiliates in the AICPA's member sections was adopted; and the Federal Financial Management Act of 1990 was law.

I didn't accomplish those goals--I was just able to keep the focus of many others on them. Other people, responsible, hard-working members and staff accomplished them.

CONCLUSION

You first need to develop your dream, your mission, which you can turn into reality through written, measurable and visible goals. To a certain extent, the goal-setting process has to be participatory and include other leaders.

When setting goals, don't be afraid to go out on a limb--that's where the fruit is. Even if you don't accomplish your goals, you at least may have defined them for a successor to accomplish.

You can turn your mission into reality by written, measurable, visible and dead-lined goals. Goals provide direction, motivation and a way to measure progress. They also help keep your focus so that nothing will get in the way.

While goals should be achievable, they also should be demanding. Don't limit your potential by limiting your vision. As John Gardner said, "There exists a series of great opportunities brilliantly disguised as unsolvable problems."

So, what I want each of you to do, not next year, not next month, but tonight on your trip home, is to develop your mission, your contribution to the profession. Let me assure you, your members do want to hear your thoughts, your mission. People want to work for someone who knows where they're going.

To communicate your vision, have confidence in your beliefs. Keep in mind the story of the little girl who told her teacher she was drawing a picture of God. The teacher said, "But nobody knows what God looks like." The little girl replied, "They will when I get through."

So please, dream a wild, maybe even impossible dream for your mission. Visualize what you want to accomplish and what you want your successors to point to when they recap your career. But remember, an organization's accomplishments are the only real proof of leadership.

Write down your dream, hold onto that dream and take good care of it in the years to come. And when you feel you've lost your way--and believe me, you will--take it out, read it, remember it and live it.

If you do this, chances are it will be a dream no longer. You will have accomplished your mission. You will be better, your firm will be better, the profession will be better--and you will have made it happen.

BY THOMAS W. RIMERMAN, CPA

Thomas W. Rimerman, CPA, a resident of Napa Valley, is working with Frank, Rimerman + Co.'s new St. Helena office, which serves the wine industry worldwide. You can reach him at [e-mail].