More regulation, complexity and change are predicted for the accounting profession. In fact, many are saying now is the least amount of change and disruption you will experience in the rest of your career. For most, this creates uncertainty and for many a level of stress significant enough to consider leaving the profession. The way to break through the “ceiling of complexity” is simplification. For professionals with technical expertise, simplification may sound like marketing hype. It really is about mindset and dealing with rapid change.
Regardless of size, your firm and clients are experiencing digital and business transformation. George Westerman in his book, “Leading Digital,” defines business transformation as “a radical rethinking of how an organization uses technology, people and processes to fundamentally change business performance.” A reasonable question to ask is, “Why does this all matter?” The short answer to the “why” question is to sustain success and remain future-ready.
The more complex and detailed answer to why it matters includes multiple reasons:
- Data is easier to search, retrieve and assemble into a predictive and prescriptive format.
- Processes that are more straightforward to implement, easier to automate, cost-effective and trackable. These processes reduce cycle times and eliminate unnecessary loops. Think “one-way workflow.”
- Increased productivity due to the elimination of manual tasks, loops and systems integration issues. Business is now in the third generation of the “cloud.” We have advanced from software-as-a-service, to mobile, and now work from anywhere at any time.
- Better security at a time when the risks are high.
- Improved client experience that positions you as a trusted and proactive advisor.
- Happier and more effective employees/remote workers able to achieve a better work-life balance.
Mindset determines your success and the good news is that there has never been a better time for accounting firms to define their future and increase their value to the business community. Typically, the services and clients that got you to this level won’t get you to the next level or even sustain you at your current level of success for the long term.
Now is the time to develop and communicate your vision for the future. If your vision is compelling, clients, employees and capital will follow. The primary obstacles for most firms are finding the time and perhaps dealing with multiple visions from multiple leaders. This requires outside facilitation and tools that reduce time, build consensus and clarify the vision so it can easily be communicated.
Once you have a shared vision, it is much easier to develop a strategic plan that holds partners and others accountable. Accountability is the quickest way to improved results.
New models
Most firms are dealing with multiple generations in the workforce. Many of these generations readily accept accountability and prefer to know expectations and goals in advance. Most firms can improve their processes digitally and strive to become more of a self-managed firm. Self-management means it is the responsibility of the employee to complete their 90-day game plan and review it with their supervisor, rather than the supervisor’s responsibility. It is also the employees’ responsibility to schedule a 90-day accountability review.
For those concerned about time requirements, this is normally a one- to two-hour process after the first quarter. It does help employees, managers and partners to think, plan and grow on a quarterly basis. Game plans should include more than financial goals (charge hours and revenue). They should also include goals associated with professional development, continuous improvement of processes and the client experience/satisfaction. This is all part of the “Balanced Scorecard” approach.
Most firms are faced with both capacity and capability issues. Capacity limits most firms from rapidly growing compliance services, while lack of capabilities limits the growth of advisory and consulting services.
Pricing is also a critical element in digital and business transformation. As firms focus on increasing value through advisory and consulting services, they must also focus on pricing.
The old pricing model of hours times dollars is based upon the theory of labor. The pricing model for today and the future is subjective and based upon value. The continuum of pricing follows the continuum of value. Subscription pricing is growing rapidly in firms focused on value rather than cost of production. Also remember, Karl Marx was the founder of the theory of labor. Most in the accounting profession would say Ron Baker is the founder of value pricing. There are tools that can assist with your transformation.
The bonus for firms addressing these issues is clients are facing similar challenges and look to their advisors for answers. Collaboration is key. If you don’t have the resources internally, think of ways and companies you can collaborate with to address your challenges as well as your clients’. Think from the clients’ perspective of value and not from a service-line approach.
The pandemic proved the value and ability of the professional to change. Be proactive and take the time to develop your vision and strategic plan. What do you want to be, do, have, experience and create over the next three years? What are your priorities and who is responsible and has the capability and authority to get it done?
Think — plan — grow!
