what to do with these new capabilities? commercialize them, of course.
by gale crosley
the rosenberg survey: national study of cpa firm statistics
last year was a tipping point, as firm leaders began to convincingly acknowledge the fact that technology is going to rock their world. it was the year our colleagues finally got the memo that the profession is poised for transformation. now the debate is around how quickly and in what sequence.
more from the map survey: 2019: three new trends to watch | 2019: why small firms shun mergers | 2019: using m&a to launch consulting | 2019: client service moves to fore | 2019: expect more alliances | 2019 trends: client service changes | 2019: shifts in hiring & office space | 2019: firms grapple with change | staff policies improve, but not mentoring
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this is hardly the first time we’ve had to grapple with significant change. but never have so many promising technologies come to practical commercialization at once.
every year, we ask the industry’s top consultants to share their observations of what they are seeing at cpa firms. we provide their comments as they were provided with virtually no editing.
specifically, we ask the following questions:
- what kind of year was 2017? what were the major trends you observed? what were the issues you saw firms struggling with the most?
- 2018 is half over. based on your experiences this year, what are you seeing? what are the major trends? what are firms struggling with and what are they working on as the year progresses?
it all started with the cloud, which allowed massive storage potential, with access to big data, unlimited processing power and powerful telecommunications capacity. couple that with the emergence of cryptocurrency and blockchain, which promise to totally alter what we do and how we do it. in my view, our profession faces the most momentous juncture since friar luca pacioli developed double-entry bookkeeping in 1494!
simply stated, 2017 saw firm leaders drinking from a firehose of awareness. the implications dawned on their collective conscience, starting with the very foundation of our business model, the blueprint for how we achieve revenue growth and profit.
this is the year our most forward-thinking, non-big four firms are starting to commercialize capabilities and offerings, namely data analytics, artificial intelligence including robotic process automation (bots), cyber and blockchain.
initiatives by the aicpa, alliances/associations/networks, vendors and others provide the means for transforming firms based on these new approaches.
given so many choices, the challenge for leaders is to determine which strategies hold the greatest potential, especially in light of the fact that many shine the brightest, then others may take their place.
bots provide a case in point. just a few short months ago the potential for massive cost savings with bot deployment was known by a limited few, primarily bot developers. now the awareness is entering the mainstream and could divert firms from other investment options.
navigating this uncharted territory is a bit like trying to tame the wild west. for many cpas, it requires a giant leap outside their comfort zone. but for those firmly grounded in technology, the shift is far less daunting. we are blessed to have many outstanding technology strategy consultants in our space. i recommend that managing partners secure the services of one of these experts if they don’t already have one on the payroll.
a cautionary note. cpas tend to devote time to evaluating capabilities – falling in love with the latest toy. growth-based success requires a concurrent evaluation of a firm’s various markets and the industries/buyer groups that want, need and are willing to pay for what’s being offered. for example, we all know cybersecurity is critical, but buyers are not yet ready to invest as much as their cpas might believe they should.
i recommend balancing time spent shopping for new capabilities with time spent interviewing the firm’s identified buyer groups and potential appetite for new services. this will eliminate blind alleys and wasted investment, enabling you to discover the capabilities each buyer group finds valuable enough to embrace. pro tip: always look to the market first to reveal where the hot spots lie!
in summary, 2018 is the year in which awareness born in 2017 is morphing into understanding, as leaders continue to evaluate the tools and capabilities that can transform their firms. it is also the year that forward-thinking firms are leading the way by their investment choices.