Eric Krucke With Aprio, LLP

Intro: [00:00:04] Broadcasting live from the Business RadioX Studios in Atlanta, Georgia. It’s time for Atlanta Business Radio. Brought to you by on pay. Atlanta’s New standard in payroll. Now, here’s your host.

Lee Kantor: [00:00:24] Lee Kantor here another episode of Atlanta Business Radio, and this is going to be a good one. But before we get started, it’s important to recognize our sponsor, Onpay. Without them, we couldn’t be sharing these important stories. Today on Atlanta Business Radio, we have Eric Krucke with Aprio. Welcome, Eric.

Eric Krucke: [00:00:43] Thank you. Lee It’s great to be here.

Lee Kantor: [00:00:45] I am so excited to get caught up. Tell us, for those who don’t know about Aprio, how you serving folks?

Eric Krucke: [00:00:51] Well, Aprio is a national business advisory and CPA firm. Now in over 15 locations. We just this past week were named the 26th largest business business advisory and CPA firm and the fastest growing in the country. So we we support businesses and bring them strong financial management and help them with all things finance.

Lee Kantor: [00:01:19] And when you like. How are you defining businesses? Is this anybody from a mom and pop all the way up to, you know, huge enterprise level organizations do mid-size like do you have a sweet spot?

Eric Krucke: [00:01:31] Yeah. So we have over 6000 clients and we we serve the middle market and lower middle market and small business owners. So we help founders and and even start ups. But the the sweet spot is that lower middle market small business.

Lee Kantor: [00:01:50] And that seems to be there’s a couple to choose from right there. That’s a pretty big market.

Eric Krucke: [00:01:55] Yeah this is the firm has grown. We’ve ended up serving larger clients. But we the core of our client is that founder entrepreneur that is needing help to grow their business.

Lee Kantor: [00:02:10] And then what’s your role with Aprio?

Eric Krucke: [00:02:13] So I’ve been at Aprio two years and I lead the CFO practice. So our CFO practice serves to bring strong financial leadership and help build out finance teams for companies, typically when they don’t have an in-house CFO. But we also help CFOs when they’re at inflection points and just need help. But we provide fractional interim and permanent CFOs to to growing businesses.

Lee Kantor: [00:02:45] So now what would a growing business, what are some symptoms of growing business would be having where you’re like, Hey, maybe it’s time to bring in somebody smarter than anybody here and that we need help in this area. Like what are some of the kind of signs that it might be time to talk to?

Eric Krucke: [00:03:02] Aprio Yeah, I think when when a business is at an inflection point, which typically can be a transaction, so now we’re thinking of doing an acquisition or we’re thinking of raising capital. Those situations, those those transactions or transitions of ownership typically start asking more and more of their finance team. And so what happens and what you see the pain points that start to arise are you see the finance team having a difficult time keeping up with the demands of investors or banks and and or the businesses growing at such a pace that the systems and the processes that got us here no longer are working effectively and efficiently. So you typically see a lot of strain in team members, you know, raising their hands. They just can’t get it all done. And so it’s it’s time for, you know, a time to bring in help.

Lee Kantor: [00:04:12] Now, are these folks typically maybe they’re at a stage where there’s somebody on the team that does QuickBooks or they have a bookkeeper or maybe they have a CPA that helps with tax, but they really don’t have an advisor that’s kind of analyzing the numbers, projecting the future and really kind of wringing out as much value from that seed as possible.

Eric Krucke: [00:04:35] Yeah, I think you painted the picture well. So I think in the life cycle of a business, the founder first is just confirming the market. The product that they they’re bringing to market. They’re highly focused as they should be on customer service and the customer’s experience and marketing and sales typically will get the early investments and infrastructure typically next. So whether it’s technology or finance, it’s you’ll you’ll see, for example, early investments in QuickBooks or Xero. You may have seen a company start off with Net Suite, a lite version of Net Suite or Intacct Sage. But but now what their systems are doing for them and what really their customers need and their team members need to be successful, no longer are available in those systems and in that structure of the team. So sometimes that’s an in-house. Finance or accounting team, and sometimes they’ve outsourced it. But now, just to your point, they’re needing to look past just doing doing well this week and they’re having to look forward hopefully as much as 2 to 3 years forward with a clear destination. But but now they’re they realize, hey, is we’re we’re trying to onboard this new customer that has 90 day terms and the largest inventory investment we have to make to serve them. All of that is forward looking projections and planning that they just before that point haven’t had to do.

Lee Kantor: [00:06:34] So when when you’re beginning a project or an engagement with a new client, can you talk about maybe what those first 100 days look like? Do you have kind of a baked plan of attack so that you can go into pretty much any situation and know, okay, this is what you can expect because there’s going to be some change. Obviously, this is not the way they used to do something. And change is difficult in a lot of circumstances and especially around money. It can be even that much more charged. So can you talk us through maybe that 100 day playbook that you guys have that helps launch a new project or client?

Eric Krucke: [00:07:21] Yeah, absolutely. So we we basically built the 100 day playbook as a strategy to drive clarity across the organization. So for for us to accomplish with the company, um, all that needs to be done. The dilemma is that the team on the ground already has their day job. They have everything that they’ve always been asked to do, and now we’re really investing towards accelerating growth. Expanding the infrastructure could be a systems implementation, could be the expansion from one location to multiple locations, whatever it is that we’re having to do, what we what we try and focus on and bring to the team is a clear destination. So teams love to win. And if you can paint a really clear picture of what we’re trying to achieve in the end game and be really transparent down to I’m the founder and my goal is in 2 to 3 years are X, Y or Z. You know, I hope to sell a part of my business so that I can enjoy and bring to my family some of the value that we’ve created in this business. But at the same time, we may look for capital to be invested, to accelerate growth.

Eric Krucke: [00:08:56] And to do that, we’re going to have to transform our business. We’re going to have to upgrade our systems, expand our locations, and and by equipping the team with the knowledge of the destination, it lets you walk backwards. If you have a clear destination, you can walk backwards and see everything that’s required of you. So that you can build a roadmap. So that’s exactly what we do with every client is we’ll talk first about that end game, the clear destination. We’ll walk backwards with them and their teams to identify what’s required of us to get there. We, you know, we we codify that roadmap and then we basically, in a 100 day playbook, decide what, what what do we need to achieve first. And that’s where the 100 days comes in. We want to we want to give urgency, focus and momentum to the team, but we want to want to make sure we’re setting up a winnable game. Teams love to win and they can’t do it without clarity. So that’s that’s really how we go about our walk in point.

Lee Kantor: [00:10:11] Now is your relationship then, from that point forward, just rolling 100 day plans?

Eric Krucke: [00:10:18] So that is the perfect question. The intensity level of 100 day playbook. Typekit typically is pretty high. So I think there are instances where you can run two major initiatives like that in a given year, but you have to be sensitive to your team. It might be that you can only do one and then you need a real solid 3 to 4 month break. But it also depends on really what the mandate is and what are those initiatives that are necessary. So back to back, probably not just because I think there’s so much expected of the team, but you know, we work with the companies ongoing, but the 100 day playbook is built. For that inflection point. When you’re in the midst of a transaction or a transition or accelerated growth and you’ve just got to drive significant change. But our experience has been that you definitely want to give the team a break in between.

Lee Kantor: [00:11:25] So maybe after the 100 day playbook, then you kind of let it breathe, allow some slack in the systems to see, let things settle, see what the new reality is, and how they’ve accomplished what they’ve done and how much of it stuck and how much do we have to, you know, kind of fix down the road and then and then you can attack that again. You know, after certain other milestones or benchmarks are hit.

Eric Krucke: [00:11:52] Yeah, that that’s exactly right. You need a time to to really examine what went well, what could have gone better to just as a working group. But but it’s really important to let let those accomplishments, you know fully fully operate for a bit of time and let them reload and get ready for the next 100 day playbook together.

Lee Kantor: [00:12:20] Now, you used the word clarity quite a bit. And is that an area you find that when dealing with business owners or entrepreneurs especially, that it’s a hard thing to pin down because everything is so amorphous. Everything is you know, we’ll make it happen. There’s you know, it’s not a clear, okay, this is the finish line and then we’re done. It’s never that. It’s always a moving finish line. So it’s hard to have clarity sometimes when especially when you’re starting out, when there are so many unknowns.

Eric Krucke: [00:12:56] Yeah, I think it’s a great call out. The and let me add to that, too, before I answer, the typical success of an entrepreneur has been their flexibility and agility. So their one of their greatest muscles is their ability to adapt, adjust and move to something else. And that’s what’s literally gotten to that business and that founder to that point. So now we’re at a point where we have a larger team around us. It could be ten, it could be 50. It just depends on the circumstance. And we’ve got to accomplish more, but we’ve got to do it together. So no longer can the founder just put things on their back. So the concept of clarity really comes comes through there. So. The other thing we see a lot is the founder, the CEO is hesitant to talk too much about what the end game is and the ultimate destination. And what you end up then is you end up with a team that. Can execute what’s asked of them, but they really can’t put it into perspective on on the why is not clear. So so they end up lacking motivation because they don’t really know how they’re making a difference.

Eric Krucke: [00:14:29] So what we found is clarity is critical. It starts with strategy and then a clear roadmap. The thing about the roadmap is you got to build it with your team and you also have to recognize that like any journey, you know, we’re perhaps you’re traveling. Sometimes you have to go a different direction. And so it’s not an absolute the path you build. In fact, it’s best if there’s more than one path you outline on your roadmap. So it’s clear that if we hit a road roadblock, we know already, especially if we can anticipate it. And that’s our job as leaders. If we see a roadblock, then we ought to know at least 1 or 2 options we’re going to take the team through. And my experience has been that a lot of these discussions, if they happen in a business, don’t happen with the whole team. And, you know, we’ve seen great success when the full strategy and roadmap and options have been laid out really clearly and openly with the team.

Lee Kantor: [00:15:44] So when you when you’re working with clients and especially when you’re getting to that level of intimacy in terms of recommending, okay, you know, when you started and there was four of you, everybody understood what had to be done and who was doing what. But now there’s 100 of you. And and in fact, sometimes now the CEO doesn’t even know the 100th person, you know, like the 100th, you know, the early hires were friends of friends. The 100th person is somebody that an outsourced person might have, you know, onboarded and they didn’t even talk to. So when you’re working with those folks and you’re explaining to them that we have to get everybody involved now and we have to do this mindfully, it can’t just be, hey, great idea, go make it happen. And then you just kind of abdicate and you hope that it trickles down to the right people. Right. Any coaching or advice you can give that leader to, number one, trust that that’s that’s going to pay off and work and also to execute that in a way that allows them to kind of still live into their mission and still be that kind of entrepreneur that is kind of making it up as they go to a certain extent, whether they want to admit that or not.

Eric Krucke: [00:17:00] Right. Right. You know, one of the great things, by the way, about Appirio is I say this all the time. The culture is just entrepreneurial, very entrepreneurial. And you would think in a financial service business, you know, things might be highly prescribed and, you know, very dictated in terms of the different things that are required of you each day and and day in, day out. But what the firm has done well, and it’s an exact the same thing we would take to a client. It’s the firm has done a great job talking about the destination and and it’s you know, I keep coming back to that need because if you have a high performing team. And, you know, again, this is a founder CEO that’s making a transition. The same things that got them their trust and engagement. Um, you know, of everything you think about that founder that had to do everything. Now they’re having to do it through others. So the key for a high performing team is that it’s it’s full of trust that they are highly engaged, that they are giving you back accountability because you gave them authority to make decisions and to do what’s right.

Eric Krucke: [00:18:25] You haven’t you haven’t prescribed every step. And so what they give you back is, you know, accountability because you’re giving them this responsibility and this authority. And and the the last part of, you know, being a high performing team is making a difference. And team members love to know. What, what and how their work and their focus is going to impact the people around them. And so it’s a difficult shift. I’ve seen it both with clients that we work with, but also even in my career where, you know, an owner and a founder is at an inflection point. And if they manage it well, they’re able to scale and grow the business. If not, you know, there is risk the business could eventually die or the reality is they probably need to sell it. But clarity. Clarity fuels the action of the team, and a high performing team, you know, needs to be trusted, highly engaged and given a lot of authority. And and those are new muscles in some cases for certain founders or CEOs.

Lee Kantor: [00:19:46] Now, if there’s a team out there that’s listening and they haven’t kind of pulled the trigger on getting help and maybe bringing in an advisor like you and your team or something like that and not. And they haven’t kind of felt confident or felt maybe the urgency to invest in this. Can you talk about the risks of that, of staying the status quo too long before you bring in help? What are some of the potential things that they’re not seeing or they’re not understanding in terms of cost or risk when it comes to not investing in this type of leadership around finance sooner rather than later?

Eric Krucke: [00:20:32] Yeah, I think probably the greatest short term risk is, is that people will leave. You know, we’re asking too much of them based on old ways of doing things. And the business is growing and accelerating and moving to the next level. But I’m not getting you know, I’m a team member and I’m just not getting the help I need. Whether that’s your time or technology or just more team members to help me get my work done. So I think that’s the greatest risk, is that we lose, lose our best people because we always ask the most of our best people. But, you know, I’ve seen time and time again, if a team doesn’t have clarity, they don’t have a clear picture of what’s expected of them and the why and how it fits into the strategy that everyone on the team is more than happy to fill in the blanks themselves. And to me, that’s the you know, the greatest risk of a leader is if I don’t provide or create clarity with my team. My team is happy to fill in the blanks. And what happens is you end up with a lot of wasted effort, wasted focus, fear. Because a lot of people will, in the absence of knowing, you know, maybe their security, even they, you know, they’ll become fearful, fearful about their role and their place. And, you know, obviously, it’s a productivity killer, a culture killer, but you also could lose those team members. But advancing to the next levels, it really impossible in my mind without it. This is a big shift that’s required for a management team and a founder, and you just need help getting there.

Lee Kantor: [00:22:29] Yeah, it’s funny that you bring that up because they talk about in marketing and branding. If you’re not branding mindfully, then your customers are going to put you in a box somewhere, you know, and it goes to the same with culture. If you’re not mindful about it, there’s going to be a culture like something’s going to happen in its place, and it’s the same thing here. And and and that might be an interesting article for you or your team or a book even about these, about the core tenants of a business. If you’re not mindful about them, they’re going to form and they’re going to form with or without your help. And if you’re not kind of being proactive and guiding it, it’s still going to happen. So you might as well invest the time because the stakes are so high. If you if you can do it right, the sky’s the limit. But if you don’t do it or if you ignore it and just think it’s going to do something on its own, it could really destroy your business.

Eric Krucke: [00:23:26] Yeah, I think it’s a great point. Just over the years with the people I’ve worked with, we’ve always tried to remind ourselves as leaders that, you know, cultures either getting better or worse. And and we as leaders own the outcome. You know, and so it’s it’s the same same thing with the branding, you know, what drumbeat do we have within the business and outside of the business to make clear who we are and and how we try to serve and, you know, are we providing the right clarity? And, you know, teams love to win and they love to work with confidence. And, you know, I’m a firm believer that clarity leads to confidence. And if you have a confident team member, they’re going to execute well, They’re going to deliver results and they’re going to help you grow your business.

Lee Kantor: [00:24:18] So if somebody wants to learn more, get a hold of you or somebody on your team, what is the website?

Eric Krucke: [00:24:26] Oh, thanks. You can reach out to me at appirio.com/cfo. You can also Google my name. Eric Crook Crook and our firm name Appirio. A p r i o. And you’ll find my bio page. Both both places will allow you to reach out to me and you can also look me up on LinkedIn and I’m happy to connect with you and serve you and just love helping people. So please reach out.

Lee Kantor: [00:25:02] Well, Eric, thank you so much for sharing your story today. You’re doing such important work and we appreciate you.

Eric Krucke: [00:25:08] Thank you. Thanks for asking me to join.

Lee Kantor: [00:25:10] All right. This is Lee Kantor. We’ll see you all next time on Atlanta Business Radio.