Tag: los angeles CPA

Strategic Planning–Avoiding Sharks with a Blue Ocean Strategy

Rick_E_Norris,_An_Accountancy_Corporation_Strategic_Planning_Avoiding_Sharks_With_a_Blue_Ocean_Strategy

When I hear, “Think outside the box,” I cringe. I believe that this command frustrates analytical people; they do not know what to do, or how to do it because there are no rules or assumptions.Instead, I like to tell people to use the right side of their brain – the creative side.A strategic planning approach, The Blue Ocean Strategy, facilitates this type of thinking.

Blue Ocean Strategy (BOS) is a corporate strategy and business book written by Professors W. Chan Kim and Ren© Mauborgne, of INSEAD. The strategy attempts to create an uncontested market space, and thereby make competition irrelevant. Dim & Maubourgne initially called this “Value Innovation,” in 5 articles for the Harvard Business Review published before their 2005 book. BOS is the result of a decade-long study of 150 strategic moves spanning more than 30 industries over 100 years (1880-2000).

There is no easy way to quickly describe BOS, except by example. Cirque du Soleil is a good example of a company that meets the BOS criteria (focus, divergence, and compelling tagline).For example, compare this circus to Ringling Bros. using the following factors: star performers, animal shows, 3-ring arenas, aisle concessions, theme, unique venue, and artistic dances. Cirque du Soleil concluded that the public really did not want star performers, animal shows, 3-ring arenas, and aisle concessions.In addition, star performers and animal shows were very expensive.They decided to do away with the three, but added theme, unique venue and artistic dances. This created a unique market because they were discarding what the public did not value, and added new aspects that the public would value.Instead of being in a “bloody” red ocean competing on price or quality, they could be competitive by offering a new experience for the audience.

If you are in the artistic world, maybe I can stretch this example to Paul Simon.In 1986, he could have composed music using the same style such as folk (Simon & Garfunkel), or a pop (Kodachrome).However, he used his artistic ability to expand his use of world music. In 1986 he released Grammy award-winning Graceland, which featured the groundbreaking use of African rhythms and performers. In 1990, he followed with the album The Rhythm of the Saints, which featured Brazilian musical themes. These albums helped to popularize world music as a genre.It essentially created a blue ocean for him without competition in a new genre.

Now this is not to say that every blue ocean does not turn red, because once the idea is manifested, there is a window of uncontested opportunity.So, what a business must do is continually develop blue oceans and keep ahead of the competition.

This alone will not confirm success.    To stop at a strategic plan level will only bring frustration, because the process will not be complete. In order to be successful, you must properly impliment, monitor, and alter a strategy.

Life is Wild in Los Angeles for the CPA

 

Rick_E_Norris,_An_Accountancy_Corporation_Life_is_Wild_in_Los_Angles_For_the_CPALife is wild in Los Angeles. This fact still holds true for even the Los Angeles CPA. California seems to lead the country in reaching new horizons, and breaking new ground. And who is by the business person’s side? The Los Angeles CPA. Looking at the nation, the CPA, or Certified Public Accountant has the reputation for being a financial watchdog. The result of the collapse of Enron was not to bring in more government agents, but to monitor the CPA more closely.The challenges to the CPA in Los Angeles, reaches far beyond the mundane of Wall Street. To start, Los Angeles has more diverse nationalities and cultures than any other city in the world. Along with these cultures come the business nuances that the Los Angeles CPA has to navigate. Many small to medium-sized businesses started in Los Angeles, originally as family-owned businesses. Along with these businesses come business practices that may not be the most beneficial. The Los Angeles CPA has to confront that sensitive issue. How does the CPA change business practices that have been used for generations? And in addition, who is this CPA that wants to insert him, or herself into an ethnic culture. These personal relationships require tact and professionalism.

But what about the geography? Unlike most major cities, Los Angeles has always been spread out. The downtown may house many Los Angeles CPAs, but it is not necessarily the hub. There are a number o f business hubs in the greater Los Angeles area that serve as headquarters for Los Angeles CPAs. This presents a challenge in offering personal and prompt service to the clients. The successful Los Angeles CPA is the one who can leverage technology to meet these demands, and still meet with clients periodically.

The biggest challenge to the Los Angeles CPA is the diverse economy. The types of business in Los Angeles are staggering. So many CPAs are forced to specialize in a certain industry just to keep current on the rapid developments. Most Los Angeles CPA firms, however, specialize in a number of industries, but not all of them.

One such industry a Los Angeles CPA may specialize in is the entertainment industry. The entertainment business manager is a specific field that works with entertainment personalities and companies. The media always gravitates to the private lives of entertainers. But who is at the center of their lives? The Los Angeles CPA acting as their business manager. This trusted advisor stands next to the celebrity in good times and bad times. One would think that their Los Angeles CPA is a family member because he/she is so involved with the personal lives of the entertainer.

Other professions that the Los Angeles CPA may specialize in are retail sales, construction, restaurants, or aerospace. In any event, the life of a Los Angeles CPA could be a wild one trying to keep up with such a diverse roster of clients. This type of compliance could require specialized knowledge and training, and flexibility.