{"id":53419,"date":"2017-12-06t05:02:35","date_gmt":"2017-12-06t10:02:35","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=53419"},"modified":"2017-12-06t08:29:31","modified_gmt":"2017-12-06t13:29:31","slug":"growth-difference-disruptor-disrupted","status":"publish","type":"post","link":"\/\/www.g005e.com\/2017\/12\/06\/growth-difference-disruptor-disrupted\/","title":{"rendered":"growth: the difference between the disruptor and the disrupted?"},"content":{"rendered":"
<\/a>the 5 key ingredients.<\/strong><\/p>\n by domenick j. esposito<\/i> i was recently asked, \u201cwhy is growth important?\u201d<\/p>\n more on strategic planning: <\/b>6 rocks in the path to growth<\/a> | m&a candidates: valuations and vetting<\/a> | ai likely to accelerate merger mania<\/a> | get your money\u2019s worth from non-billable time<\/a> | stay independent but keep looking upward<\/a> | ineffective partners and how to address them<\/a> my short answer was that it comes down to perspective \u2013 do you want your firm to be relevant and be a disruptor or do you want your firm to be irrelevant and be disrupted because, without growth, your firm will certainly be the latter. \u201call businesses need to be young forever. if your customer base ages with you, you\u2019re woolworths.\u201d \u2013 jeff bezos<\/p><\/blockquote>\n during my 47 years in the accounting profession, i was with two firms, cohnreznick and grant thornton, that, as i reflect on them, were clearly disruptors in the day.<\/p>\n in 2002 (when i joined j.h. cohn), the firm had three offices. revenues were $52 million and the firm was ranked #43 nationally. we were stuck in the middle like an oscar mayer sandwich as we were considered a small firm that lacked market permission to handle sophisticated clients. when clients wanted to raise capital, the investment banking community would say, \u201cwho is j.h. cohn?\u201d<\/p>\n the firm\u2019s leadership had a number of big thinkers who weren\u2019t afraid to take calculated risks (not ranch bets) and wanted to be a marketplace disruptor:<\/p>\n we wanted to be a top ten firm with more substantial clients, we wanted to attract better quality clients and we wanted to make more money. so, we set ourselves onto a path that required four key ingredients:<\/p>\n over the next 10 years, we:<\/p>\n together with organic growth, the firm went to $250 million in revenues and was ranked #22 nationally. most important, our bottom line began to get very healthy.<\/p>\n while proud of our accomplishments, we weren\u2019t where we wanted to be \u2013 a top ten firm. we didn\u2019t want to wait another 10 years to accomplish our goal, so we decided to explore a three-way merger that would disrupt the profession and leapfrog us over our competition. the three-firm deal eventually was reduced to two firms and cohnreznick was borne. today, ranked #11 nationally, revenues exceed $600 million with over 20 offices including one in india. if you ask me if the firm would do it all over again, the answer is a resounding yes! the firm is on the path of creating a national brand, has begun to move the client base uptown and has begun to attract better quality laterals. kudos to a disruptor!<\/p>\n grant thornton\u2019s story was not much different except that, in the day, its disruption played out on much bigger stages \u2013 the u.s. and international markets. it had two key moves:<\/p>\n leadership at alexander grant saw a marketplace opportunity for an international network:<\/p>\n today, ranked #6 nationally, the firm has 59 offices and revenues exceed $1.7 billion. kudos to a disruptor!<\/p>\n in my opinions, there are eight steps to being a great firm:<\/p>\n so why is growth important? it is important because:<\/p>\n growth comes from five key ingredients. it comes from:<\/p>\n over the years, there have been a number of great cpa firms that were disruptors. top of mind are rothstein kass (hedge funds) and kenneth leventhal (real estate). these firms thought out of the box. they made a difference in the profession. growth was an integral part of their success.<\/p>\n while growth is easy to say, it is very difficult to achieve unless there is a commitment at the very top of the firm with goals and individual partner accountability.<\/p>\n","protected":false},"excerpt":{"rendered":"
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\nlet me explain by sharing my personal experience.<\/p>\n\n
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