be prepared to seize unexpected opportunities.
by kristen rampe
the rosenberg map survey
covid proved which firms were up to date on their technology and ability to manage via strong relationships and trust. it was fascinating (and occasionally tragic) to watch, and an eye opener for those on the less-prepared end.
more: remote work is more productive | covid-19 shakes up m&a activity | 2021: you’ll never see ‘normal’ again | we adapted to remote work … now what? | 2020’s disruptions are only the beginning
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most significant changes we noted:
- cpas gained confidence in their ability to work remotely. it may not have been pretty, but they did it! some firm leaders even said they may never go back to their old commute.
- increased consulting engagements. this was driven because it was forced on firms (e.g., ppp loan assistance). however, the fact that many firms were willing and able to charge clients (when appropriate) for this work demonstrated their ability to be in the game beyond compliance work.
what firms should do:
- practice faster cycles of innovation. a practice at your firm may work for a month or two and then need to be retooled. this is okay. expect it, and work with it. the time between inception and irrelevance is shrinking dramatically.
- seize opportunities. whether they involve proactively working more remotely with clients, doing m&a, changing your “in office” requirements for team members or going after more consulting work, such opportunities can always be found. the future will be filled with change, and there’s an upside for creative firms all along the way.
2019 was marked by investment in intangibles and growth for our clients, along with some of the usual headaches, but they didn’t overshadow a generally good year.
2019 trends:
- client experience. we saw a noticeable interest by firms in this topic and in taking care of clients in a way that builds loyalty and adds to firms’ bottom lines.
- prosperity. our clients experienced significant growth in 2019, as well as improvements in profitability when they targeted “right fit” and “right size” clients.
2019 issues:
- leadership was too busy to lead. we’re still seeing too many partners doing manager and even senior associate-level work. they find it difficult to delegate and therefore to develop team members. their profitability goes down and stress levels go up; both are unappealing to potential successors.
- partner disagreements hampered further growth. firms with unclear partner roles and unaddressed divisive issues saw a negative impact on their partner groups’ ability to make strategic decisions and drive revenue.
- weak pricing reduced profitability. we often see this as an individual problem, but there continue to be opportunities to improve both firm and partner profitability by reviewing and implementing stronger pricing practices.