The why, how, and what of creating a successful
alumni program
WHY
Why would I want to stay in touch with someone who left my firm? We gave them everything—and then they took off. Their loss. Good riddance! They’re lucky we don’t sue them. Maybe their new company will see right through them faster than I did. I gave them a good severance. Why should I do anything more than that?
These are usually the questions—and the attendant feelings—that employers have when people leave their firm. So it’s no surprise that when it comes to approaching them with the thought of creating an alumni program, the question that usually follows is, “why?” How can it help their firm and, more important, how will it bring in new business?
The big accounting firms, for many years, have invested in maintaining good relations with their former employees. Why? Because for them, it has proven to be good business.
If properly played, alumni can be a great source for referrals. Of course, some alums join other accounting firms or start their own practices. However, the large majority go in-house. And as long as the parting was amicable, those who go in-house are ideal sources for new business. Think about it. Accountants already have your firm on their resume for a lifetime. And as alumni, they will speak more highly of the firm if their departure is handled well. And vice versa.
Voluntarily or involuntarily, people leave for many reasons. You may have been a firm that unfortunately has had to lay people off. How to handle layoffs while keeping a long-range perspective in mind is not an easy task. Eventually, alumni will find jobs somewhere, very possibly with potential clients. During these tough times, it makes economic sense for firms to do as much as they can for these employees.
The fact is, the market will improve and firms will again compete for talent. It’s much less expensive to re-hire trained people than to pay recruiting firms. In addition, any negative information about a firm makes its way back to future student candidates, who often listen closely to—and take to heart—the workplace experiences of their school’s alumni.
HOW
A firm’s ability to maintain goodwill with departing employees will always be a challenge. Nevertheless, some of the big accounting firms have developed alumni programs with great success. Here are eight steps that can help get your program off the ground.
1. Know your objectives
The program’s strategic objectives should be established early, defining the actions and the responsibilities for getting it started. Who will be included in the program? Will it include only accountants? Will you include alums who were fired or left to join a competitor? Setting clear objectives will help you answer those questions, as well as address the following goals:
- Build brand ambassadors
- Create referrals and new business leads
- Provide an added-value service (job listings, education, networking)
- Provide market and client service research
2. Obtain support and buy-in from departments, management, and alums
Alumni programs benefit the whole firm and should not be considered just another marketing effort. It is a must to obtain buy-in from the right people—firm management, human resources, and administration. They are all involved in the early stages and assigned roles. And don’t forget about your alums. Ask a few of them what they would like to get from program like this.
3. Clearly define roles and responsibilities for all involved
Once the people involved have been determined, maintaining and updating the list is vital to the success of the alumni program. Some roles and responsibilities could be the following:
- Executive Committee: Programs, policies, procedures
- Human Resources: Records, research sources
- IT Department: Database management
- Managing Partner: Overall support, figurehead, communications
4. Establish a budget
From the beginning, the program’s financial responsibility must be established and an estimated cost for each action item clearly outlined. While alumni programs can be expensive, they don’t always have to be. A marketing firm can help you get the initiative started, as well as help you establish short- and long-term budgets.
5. Communicate frequently with alumni
Relationship management is key to any alumni program. Relationships can often be enhanced by using alums as RFP references, offering to coauthor articles with them, and by nominating them for various awards and positions. They are also a great source for feedback on client service programs and other firm-wide initiatives. And of course, you can maintain contact through the following traditional methods:
- Alumni directory
- Annual events
- Extranet
- Newsletters
- Surveys
- Updating contact information
6. Be flexible with your programs
Inviting alumni to the firm’s holiday party may seem like a good idea, but to employees who have been asked to leave, it might be seen as insensitive. Even if the firm considers laid-off employees to be just like other alumni, you need to be flexible with your programs and how changing economic conditions are handled. Here are a few ways you can keep these employees involved:
- Client job postings.
- Discounted continuing professional education (CPE) programs.
- Preplanned service area events.
- Women or diversity initiatives.
7. Manage expectations
“Return on investment” is what partners might be looking for, but “return on objective” is what you need to manage. Remember your objectives and why you started the program. Whether it’s a resource for new business leads or reputation management, some programs need fair benchmarks to measure their success.
8. Be committed
Developing alumni networks takes time and dedication. Depending on your program’s objectives, an alumni program can be a relatively small financial investment. However, the time investment can be rather high. For example, maintaining a directory provides a lot value for the firm as far as business leads, but managing the directory’s database requires constant attention.
WHAT
Measures to maintain good alumni relations do not need to be expensive. While alumni programs are all about relationships, networking events are not the only option. Successful programs use a combination of innovative communications as well as traditional networking opportunities.
Extranets
Through a secure login and password, extranets are one of the most effective ways of keeping in touch and obtaining—as well as updating—contact information. Besides personal information, extranets can highlight programs, events, firm news, and client job postings. One of the most common uses for an extranet is the alumni directly.
Newsletters
Even though the underlying reason for alumni programs is to promote the firm, alumni newsletters should be used for communicating alumni news over firm news. Newsletters can include alumni spotlights, client highlights, community involvement stories, and pro-bono opportunities. Things to consider when starting your newsletter are as follows:
- Content
- Format (electronic or print)
- Frequency
Events
Events are one of the most effective and common ways to facilitate personal contact with your alumni. The events can simply be social, such as softball teams and happy hours, or educational by offering CPE credits and service area seminars. As with any event, the budget should be considered up front.
Social Media
Firms no longer have to dedicate a component on their websites solely to alumni of the firm. Creating an alumni group on LinkedIn and Facebook is a very effective and cost-efficient way to achieve similar results. Content is driven by determining what information alumni want, as well as allowing alums to attend webinars and contribute feedback.
As in all business, it is critical to leverage relationships for business development. Accounting firms have an opportunity to learn from the corporate world and recognize that it is always good business to create a web of connections and invest in developing positive relationships among all their people—even the ones who’ve left.
Originally appeared in the June 2011 edition of CCH - CPA Practice Management Forum.
