strategic thinking is at a premium.
by gale crosley
the rosenberg map survey: national study of cpa firm statistics
i suspect the next 12 months will bring four sizable developments.
more outlook: compensation gets creative | the office is over | private equity comes for accounting firms
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this has been an unusual year of high uncertainty, unpredictability and sapped energy among our profession’s leaders. many are facing the most significant business issues and opportunities of their careers. the profession has experienced nearly a century of relative business model certainty and predictability in market conditions, punctuated by occasional disruptive blips.
however, it’s not just one dynamic, such as the dot-com bust, the events leading up to sarbanes-oxley or the great recession. rather we are seeing a confluence of four major thunderbolts – disruptive technologies, shifting economic conditions, non-traditional competition and fast-moving regulations. add to this extensive talent constraint, work-from-anywhere options, unexpected market demand and the relatively new enthusiasm of private equities to invest in our firms. and don’t forget continuing baby-boomer retirements. wow! i’m exhausted just writing about it.
be on the lookout for the following:
(1) more firms are experiencing private equity infusions or mergers.
(2) technology is moving quickly, integrating multiple capabilities such as ai/machine learning/rpa (bots), and the capabilities arising from huge data sets and analytics.
(3) vendors are pouring into our markets with more robust technology platforms. and
(4) esg (environmental, social, governance) regulations and standards are coalescing globally, promising huge longer-term opportunities for our firms.
(5) digital asset and cryptocurrency business use cases are continuing to evolve and provide lots of future opportunities as well. and dare i mention the metaverse? in summary, as we (sometimes slog) our way through the day-to-day, big opportunities are on the horizon for our profession!
the big discussion point for most, or perhaps all, mid-market firms is, “should we remain independent of outside investors or merge up into another firm?” meanwhile, amid all the disruptions, much future-think has evaporated, as we are faced with fish jumping in the boat and the press of getting work out the door. current supply/demand conditions won’t last, but while they do, strategic thinking is at a premium.
however, the best firms always have one eye on the present and one on the future. they purposefully invest in strategic growth. as a result, they achieve first mover advantage in the market, attract the best talent and clients, and end up on the lists of fastest growing and most profitable.