00:06:27 · Brett Kelly
I tracked down the people. I got the interviews. But when I went back to the publishers they said, we didn't think you'd get the interviews but now you have, you know, who's going read your book? So I had to self publish the book. And so that book became part of a series of books. That was this book. And when I did it people thought it was going to be a but it was a proper book and then every seven years since I've done another book so for twenty eight years I've published this series of books of wisdom Now we're reading all these books about what life was about life turns out to be about wisdom to be about growing in deep understanding so no matter what you do you should really try to be a deep person in a shallow world, a long term person in a short term world and that is sort of Charlie Munger invert, invert, invert. So I am there having done the book and a lot of professional speaking. I went back into chartered accounting. I worked in three different firms and I was so frustrated. I went home. We had a nine month old child. Three months before that I'd started a firm for a friend of mine because he was having troubles in the firm he was in. And the big insight, Mikk, is that often other people see talent in you that you don't see in yourself. So my friend Scott had worked with me at an accounting firm and he rang me up. I'm the godfather of his son and he said, Brett, you're so good at running businesses and you know so much about it. I'm a really good accountant. Could you run the business and I'll do the accounting? And that's where our partner owner driver model came from. He said, You have 75% and I'll have 25%. And then when I did the numbers, I was like, No, Scotty, I have 51%, you have 49 because I think I can help you run the business at twice the profitability of the industry. And then you'll still be making the money you would if you worked for these other idiots. But your life will be good, we'll be doing something great together. And the financial law will work. So I read about 3,000 books on this journey over many, many years. At least a book a week for years and years and years.
00:08:52 · Brett Kelly
You know Manga talked about being a book online so I just am a voracious sort of consumer and integrator of knowledge from wherever I can find it and so then in June 2006 my boss Rebecca my wife and I had just had our first son Thomas and my boss he had promised when he recruited me the year before particular undertaking and then when I said to him well what's happening with me becoming a partner He said, Well, the problem is if we do what we said we would do, you will own half the firm and we want you to own 10%. And I said, Okay. And I couldn't understand why that made sense. So I rang two of my good friends who are very successful entrepreneurs. I had worked when I did my first book in a software company that made the first software for EVA valuation of companies. It was a valuation tool that linked to the Bloomberg data source and it produced 32 different versions of a valuation of a public company. And so I was very deep in valuation and Anthony said to me, Brett, I thought you'd already have a company of your own firm. I don't know what you're doing. So I oh okay. So I read my other friend and he said, yeah, why don't you have your own firm? Okay. But again, two men saw in me things I didn't see in myself. I was really trying very hard to be a good employee and do the right thing by my boss, but I couldn't get the boss out of bed early. I couldn't get him to stay up late. He didn't really have a passion for what he was doing. So I felt like I didn't fit in again because I am really twenty four hours a day, six days a week and I want to be very much world class at anything I do. So when I did my first book, I made sure that book looked as good as any book in a bookstore, even though it was self published and it became a top 10 bestseller. When I did my professional speaking, I hired the best professional speaking coach and he helped me structure my presentation and taught me how to present the presentation so that I was the youngest accredited professional speaker in Australia at 22 years old. I spoke at the National Press Club in Canberra twice launching two of my books. So it was always if you're going to do it, do it the best it can be done.
00:11:20 · Brett Kelly, Mikk
You know my dad had a saying if you aim for the Rolls Royce and you fall short you drive a Mercedes if you aim for the Mercedes and fall short you drive a Ford and if you aim for the Ford and fall short you know, hopefully you like walking. So it was like really aim for the stars and if you fall short you get the moon, you know. So that was the journey. I turned around to my wife and I met Rebecca working in an accounting firm and I have to credit Bec for her confidence in me because again you know it is important that people that have confidence in you when you don't, that see things about you that you don't. And Bec is like why don't you just start her own firm? You are really good at this and you can just build a company and I was like what are you talking about? This is annoying. Our industry is terrible. It is full of these people that say one thing and do something else. Why do I want to do this? She's like, get great at this. Just do that. So that was I thought, oh, Okay. So I started Kelly Partners in 06/12/2006, and I had a very, very clear plan as I always do, Mikk. And that was to build a better accounting firm for the [00:12:38] S0: people
00:12:38 · Brett Kelly
[00:12:38] S1: that worked in those firms like me and for the clients of those firms and for the communities that they operated in. I genuinely believed that an accountant could make an enormous difference in the lives of their people and their clients and the community. I just knew that. What I had seen was that often the accountant was there but it didn't or she didn't really do anything. They just couldn't have a conversation, didn't really care about the person, didn't really want to get to know them, couldn't really help them as a result. So I thought, Righto, let's build a proper business. So you don't look at the accounting firms who get depressed. I said, Right, let's look at across people, process, clients and financial, the best firms in the world. Look at firms like Google that people want to work for, firms like in particular Disney that people want to work for. Then for process, I said, let's look at organizations that have great process like McDonald's. Then for clients, let's look at Four Seasons, Ritz Carlton, Apple, in particular Ritz Carlton. And then for financials, let's look at Berkshire Hathaway. And it's good to talk about it actually because big, these inspiring, formative. And I'm writing those down and I'll tell you why. So when I tell you that across people, process, clients, and financials, those big four companies, they had Disney, McDonald's, Ritz, and Berkshire Hathaway. They are all American companies, and they were just out and out heroes of life. I just thought Walt Disney was the greatest. I still do. Okay? I thought that McDonald's is the greatest business system in the world, and it probably is. I thought Ritz Carlton was just an incredible organisation because when I was about 20, Mikk, I was in the hotel auditing group as part of what I did because my father was in food service and I audited the Ritz Carlton in Sydney. I was just setting it up. I met the general manager. He was the youngest general manager in the world. And he told me about when he was recruiting that hotel, he saw a woman in the line for a job. And he said, I'm going to marry that woman. And he asked her seven times. And then the eighth time, he said, This is the last time I'll ask. And then he took her on her first date and he proposed and they got married.
00:15:04 · Brett Kelly
But they were famous for their customer service and their Berkshire Hathaway was my hero and still is. But in particular, Charlie Munger is my big hero. And and the reason I'm mentioning that in such strong terms is, you know, twenty years later, we moved to The US in January 2023 or seventeen years later, I always had a play to build a global business. I always, you know, kept that very quiet because people tend to mock your plans, particularly in Australia. My wife again saw that. She said, Brett, we have to go to America because all your heroes are American and the way you are will be more comfortable for you in America than in Australia. So I'll share that with you later as well. So I'm like, right, build a better business system based on these great companies. Life is better. One of my favorite sayings of my own, is that life is better when you're looking up. You know, when you're looking down, you know, people that are depressed, they look like this and people that are energised look like this. And so if you want to change your day, look up whereas most people's posture is they are genuinely bent over with their head up their own ass wondering why everything is so shit and smelly and dark and it's because their focus is on themselves Whereas if you can look up and out, you can see other people and you can see opportunity and you can have much more energy about what you are doing. So I looked up to these people. I looked up to their businesses and I said, Why don't we take this tiny little idea of the accounting firm and just try as much as we can, as humbly as we can to make it a bit more like these businesses and don't look at accounting firms because I looked at accounting firms and I was like, Oh, that's horrible. I want to be like this when I grow up. And so that's what happened. And so we've got a business system, not an accounting firm. A business system for an accounting firm. Everything I've read in all these books, said, right, the best type of client is a private business owning family with complex affairs. They stay with their accounts for thirty to eighty years or longer. They are long dated people. Buffett. Be long term. The type of client we want because we have got to spend a lot of time with those people is a long term client, somebody that shares our values. We've got to have clear mission, values and vision.
00:17:35 · Brett Kelly
So what's that going to be? Well, we've got to have clients that want to make the world better. They want to make other people better off. They want to be people for others that keep their promises, play as part of a team. Basically, I'll find it for you. But we built an assistant. I'll just get you a copy of it. So I've been quite relieved. There's normally one in my office, but I've this little thing called Progress Pyramid. It's in my new book called Progress which will come out later this year for our twentieth anniversary and this pyramid basically has 12 parts of a business from mission, vision, value, strategy, structure all the way through people, process, clients, financial, IT, risk, brand, growth and succession. And I said, look, you get the person right first based on Maslow's hierarchy of needs and then in here you work out the 12 plans for a business. Below here is the foundation. Above here is operations. We built a system. And then what we did was we relentlessly applied that to accounting firms. There's two zero four steps. Everything's documented, manualized, there are videos to help you do everything better. And the idea was just systemize a business at a very, very deep level. And then it was as simple as go around Sydney and go to secondary markets and try and become large before anyone notices that you exist. So basically Sydney is here, everyone goes to the centre of the city, I went north, north west and we basically following Jack Welch GE, buy the number one or the number two firm in each area. We'd buy 51%, the partners that own 49%, we'll double their profits, take two thirds of the working reduce the working capital needs of the business by two thirds, give the past 25 to 40% of their time back, and then just do it over and over and over and over and again. And so that's what we did in Australia. We're now into Hong Kong, and we're into we're actually about to start our first operating business in Hong Kong. But we've had an office there for ten years. We're in The Philippines with a BPO business. And we're in Ireland, and we've got four offices here in The US. And the opportunity in terms of addressable market across Australia, The US, The UK, all of Europe, South America, we can basically go anywhere because we have a business system that can help our professional services firm be much better.