Why not get an external party to have a look: certifications offer valuable insight into your own processes. Law firms, too, can bring in various external service providers who issue certifications based on well-known and lesser-known audit standards. But is it worth it? Certificates from TÜV and the like look smart and make a good impression – both on the office wall and on the website. But what do they actually achieve? Holger Bodmann, a self-employed certified EFQM assessor, knows the answer. He talks to Paul Liese about useful certificates for law firms, genuine added value and approaches.

Holger Bodmann is 58, a tax adviser and solicitor, and has been working in the tax sector for 35 years. He is currently focusing increasingly on practice development, both within his own firm and within the HSP GRUPPE network, which comprises more than 100 firms. He likes to compare his field of work to the famous Danish plastic building blocks. Everything fits together perfectly – side by side, on top of one another and inside one another – with the base plate forming the foundation. Applied to the tax sector, the base plate is a certifiable management system.

His early experience in the field of certification dates back to his time as a tax adviser. Back then, a group of people got together to consider how to structure their work processes. In their search for a framework, the group soon came across the ISO standard. At that time, the focus was less on smart digital processes and more on things like calibrating post vans correctly.

A matter of perspective

The scrutiny of their own processes was not well received everywhere – quite the opposite, in fact. Fierce opposition came from the chambers of tax advisers. This ranged from a natural defensive stance to threats of disciplinary proceedings. After all, it was out of the question to question one’s own processes. One of the main arguments put forward by supporters was the external confirmation that standards were being upheld, thereby increasing confidence in the firm.

At that time, a wave of certification was sweeping through the automotive industry. Many suppliers lost their business relationships if they refused to undergo certain audits and certification procedures. Holger has a clear view on this. He does not believe in certification driven by external pressure. Rather, the motivation should stem from the fact that taking a closer look at and optimising one’s own processes creates benefits and added value.

Ultimately, it’s all about process optimisation

But what is the point of certifications? When in doubt, clients will not care whether the tax consultancy has any certificates. To answer this, Holger shows a current ISO certification from TÜV Nord. Such a certification ensures that processes are structured sensibly and meet certain standards. For reasons of efficiency alone, firms should know whether their own processes are sound. It is also a matter of avoiding errors. By avoiding errors, firms increase the efficiency and reliability of their own processes.

The system – take ISO as an example – is not flawless. For instance, the ISO certification process checks whether the company complies with the checklists. However, the audit does not go into any depth regarding the content. The company itself must ensure that the content is accurate.

Reactions and results

Is there any feedback from clients? First of all, Holger emphasises that the benefits of certification cannot be quantified. Clients are satisfied, a fact that the firm sees confirmed time and again through surveys. Furthermore, it is an ongoing process in which procedures are constantly being improved. The certification itself remains a snapshot in time. For a long time beforehand, it was said that there was no need for an external certificate. After all, such a certificate does cost money. Around €6,500 was spent on the current audit and certification. However, the benefit lies in constantly driving the firm forward and encouraging it to question itself.

For example, one auditor highlighted the lack of internal audits. The introduction of a new internal audit system was met with little enthusiasm at first. However, results were achieved quickly. Some negative feedback was received, but there was just as much positive feedback. Ultimately, it is the teams who benefit most from such audits. After all, work naturally runs much more smoothly in a more efficient environment; clients are more satisfied and our own results are better.

EFQM takes a different approach to ISO

EFQM takes a slightly different approach to ISO. EFQM focuses much more on the bigger picture and the substance of the content. It centres on the question of what benefits the company can bring to its stakeholders. In the tax sector, this involves not only clients, but also staff, the Institute of Tax Advisers, DATEV and the banks. If all these elements are in place, success is inevitable. This fundamentally represents a completely different approach to setting KPIs as targets from the outset.

What does Holger recommend to tax consultancy firms and law firms that have not yet taken any steps towards certification? Holger recommends starting with an internal analysis. The HSP GROUP began with a positioning workshop. This involves identifying areas for action and areas requiring improvement, and possibly carrying out a pre-audit – not yet with certification in mind, but to scrutinise the processes closely.

Paul asks whether we couldn’t also should draw up procedural documentation for themselves. Holger can only agree. Any method that captures the processes and ensures higher quality is helpful. To conclude, the expert offers the audience three steps to follow: Firstly, ask yourself: What is our goal? Secondly, ask: What is the current situation? And thirdly: What conclusions can we draw from this to achieve our goal?