you need to invest where you haven’t before.
by gale crosley
we’re operating now in the super-fast lane. the most significant change is the exposure of gaps in our firms – areas that are holding us back.
more: survey: firms must keep adapting | survey: we adapted to remote work … now what? | survey: 2020’s disruptions are only the beginning | covid brought us more and better client communication
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mostly it starts with mindsets. the viability of virtual work environments is obviously a big one. tech companies have been operating virtually for over 20 years. we’re finally catching up.
another big one is innovation. in the corporate world, there is a function called product management that provides a framework for constant innovation. most of us aren’t familiar with the phrase, nor have a deep understanding of the function. however, we were forced to innovate very quickly with ppp, and can now build on lessons learned.
leadership and governance cracks are showing up. while some firms are quickly solving business problems such as infusing technologies into their services or converting their firms into consulting organizations, many are still mired down in long decision cycles and tactical minutiae, with every partner having a vote on everything.
what should firms do to prepare for the “new normal” in the accounting profession?
- evaluate your governance. the traditional partner model is not conducive to a faster-paced environment. compare your firm to the speediest environments in the corporate world and work on a governance model with speed as a design point.
- invest where you haven’t before. these are important areas such as leadership development, new service innovation, professional salespeople, acquisition of data analytics/technology consulting companies, training to become consultants, and non-cpa professional hires.
- respect and embrace the virtual environment. selling and delivering services in the tech world has been virtual for years. it is possible and can be effective.
- evaluate your business model. last year organic revenue growth among the top 100 firms was a modest 6 percent. profit margins have dropped from approximately 33 percent to 26 percent in the past 12 years. this new virtual environment is experiencing a decline in traditional productivity. however, technology has the promise of completely changing our workforce mix and increasing productivity.
we will be participating with the rest of the business world in a sophistication level required of a complex environment. we’ve got a lot of smart people in our profession, and it’s an exciting time to tackle the future!
long ago and far away – that is what 2019 feels like. we’ve packed years of living and learning into a this past year. in 2019 we were moving along an evolution of change caused significantly by technology advances. although it seemed at the time like a fast pace, by comparison we were in the slow lane.