how building the right kind of “learning organization” can be the key to long-term survival.
by rick telberg
doug thompson, the recently retired president of the cpamerica network of accounting firms, was thinking about the key to success in today’s business arena.
he should know. he joined the association in 1982 when it had only 17 members and built it into the fourth-largest group of firms in the business.
after a long pause, he said simply, “your ultimate altitude in life is not determined by your aptitude. it’s determined by your attitude.” to thompson, that’s as true for firms and finance organizations as it is for individual, career-minded professionals.
i think he’s on to something.
like “wash, rinse and repeat,” the accounting business seems to be going through a cyclical period of shakeout and consolidation, which, if the past is any guide, should evolve eventually into new innovation and growth. so it seems it’s rarely been as important for individuals, as well as firms and companies, to remain alert and adaptable, agile and flexible, to both sidestep unforeseen pitfalls and to seize new opportunities.
thompson called it “an attitude of continuous improvement” that may be “even more important in a down market.” for firms, it may mean devoting two percent to three percent of revenue to researching and developing brand new service offerings.
or, it may be as simple as nurturing an environment “where people aren’t afraid of looking silly,” according to ira rosenbloom, once the ceo of a major new jersey regional firm and now a mergers-and-acquisitions advisor.
according to rosenbloom, niche practice groups at one highly successful cpa firm, for example, hold meetings once or twice a month that — in addition to routine business — call for one team member at a time to make a brief presentation to the group. the substance of the presentation is not as important as the fact of it. “it gives people practice presenting and also a safe place to look a little stupid,” rosenbloom said. “and it encourages new ideas and ways of connecting with each other.”
“most cpa firms have a very slow learning curve,” according to august aquila, another practice advisor. “so if your firm can be just a little bit quicker, if your firm can get smarter just a little bit faster than the others, then you could have a big advantage.” some, according to aquila, might use the term “learning organization” to describe this particular key to success.
the firms, companies and individuals who can master the learning curve will also be masters of opportunity. think about richard branson. he started in the music industry with a business model practically dead today. and yet, he has discovered or created one new opportunity after another. with around 200 companies in over 30 countries, branson’s virgin group has now expanded into leisure, travel, tourism, mobile, broadband, tv, radio, music festivals, finance and health.
who’s the next branson in your company? why not you?
4 responses to “why some succeed and others fail”
john
plans are nice, image is nice and managing is nice.
the most important thing needed to succeed is self discipline. when you are self employed no boss is forcing you to work late. you have to have discipline to succeed.
the next thing is to hire good people to work for you & pay them what they are worth.
client service comes next, don’t screw the clients with fees every time they talk to you. do things without charging them sometimes. don’t irritate them with a petty $25 fee for a copy of a return when the client pays you $1,000 a year & you want to keep them for years to come.
juan rego
fees, quality and client service.
chuck lieser
its simple. some firms have a plan. and others don’t do strategic planning and don’t manage their practices.
jay fortlage
your question-why are some companies thriving in a down economy?
in my opinion it comes down to value perception.
i recently bought some “classy looking” cheese at the grocery store- fancy gold-colored labeling scripted on the clear overwrap. i bought it on impulse because it looked like a good value- an upscale product accompanied by a big generic “sale” sign at the display. i thought, “it must be a deal”. in my mind there was product bifurcation-“low price” for “high quality.” when i saw it rung up at the cash register for $14.99/lb (on sale), i was horrified and realized my error.
at that moment, instead of mentally referencing the book, “who moved my cheese”, i started asking myself, “what’s in my cheese?” (for that outrageous price…) i concluded that the companies thriving in this economy are those that have “fooled” us into believing they are offering us “a deal”.