(King)
David King’s introduction to the tax resolution industry didn’t go well. Unhappy with how his employer worked with customers, he left and put together his own business model. It took three years, but Optima Tax Relief based in Santa Ana, California, finally opened in 2011.
“We concluded that we should focus on creating an ‘Industry of One’ – as most of the companies at that time lacked integrity and transparency, which did not align with our mission,” King, Optima’s founder and CEO, wrote about the company's history. “If we were successful, we always felt that post-filing tax services standards would be raised nationwide.”
That mission culminated when Optima Tax Relief won a 2023 BBB International Torch Awards for Ethics (500 or more employees category).
Committing to the Four Cs
The BBB International Torch Awards are based on the Four Cs: Character of the organization’s leadership, an authentic Culture, a transparent relationship with Customers and impact on the local Community. King shared his thoughts.
Character: He says it’s easy to follow ethical business practices when things are going well. But it’s different when times are tough. Optima was caught in the downturn for tax resolution companies caused by a pandemic-related backlog at the IRS. The two-year delay hurt business. “A lot of companies will take shortcuts, but we stuck to our culture during these difficult times,” he says.
Although Optima had to cut the workforce, King and his team worked to help staff members find new jobs, providing a severance package, and other benefits. And he credits his leadership team for managing the difficult period with the remaining employees. “If we didn’t have character, they’d be walking,” says King. “We protected this great brand, and we are ready to grow again.”
Culture: Optima is committed to encouraging and rewarding ethical remote employee behavior. King says he now has about 500 “branch” offices. Optima keeps the staff connected by allocating 50 monthly reward points for employees to give to a colleague who has provided exceptional customer service.
Optima also focuses on honest feedback through conversations with the CEO, an anonymous suggestion box, and third party-run employee surveys. Employees are also empowered to start their own “cultural circles,” which evolve depending on the employees’ current interests.
Customer relationships: Clients who use Optima are in a bad spot; they feel financial pressure from owing back state and federal taxes and are wary of getting cheated by their service provider. As King says, they are looking for “peace of mind.” Optima works to provide that through a “Client Bill of Rights” that each employee is trained to adhere to.
Most of Optima’s business is done over the phone. Each call is reviewed to ensure customers are treated the “Optima Way.” Employee incentives and promotions are based in part on customer service performance. King adds, “Transparency is critical for us to come out and separate ourselves, and now you are seeing other companies do this, which is fantastic, and I think it is bringing the industry forward.”
Community: As part of King’s mission for an ethical tax resolution business, he wanted to become accredited by the Better Business Bureau. It wasn’t a home run at first, as they had to improve to achieve an A+ rating with BBB. Along the way, he realized that community engagement had been lacking, so he started to emphasize it.
And he saw that it worked better from the bottom up than the top down. So, employees drive the company’s community philanthropy, whether it’s through blood drives or donations to specific nonprofits. “It’s more about what staff wants, what matters to them, and the results were almost immediate.”
