Thursday, August 3rd, 2017

Rapid Change

“It is not necessary to change. Survival is not mandatory.” – W. Edwards Deming

The above quote is one of my favorite and it applies to CPAs in public practice.

CPA management consultants (like me) have been asking, urging and pleading with CPAs in public accounting to change for several decades.

Enlightened CPAs paid attention, the vast majority did not. One of the first major changes I can remember was more focus on marketing. Way back, even before my time, CPAs were not allowed to market/sell – it was unethical. You had to rely on word-of-mouth via satisfied clients and referral sources. Finally, over decades, marketing and selling are just like breathing – something every CPA firm must do.

The scary thing to me, as I reflect back, is how long it has taken to begin marketing and to actually learn to sell. It has also taken way too long to begin focusing on the efficiencies with technology and to realize the importance of building a people-friendly culture.

I recently read an article (@hrbartender) about how the number one concern of CEOs right now is not recruiting and retaining, it’s the speed of change.

Of course, recruiting and retaining is still a huge issue but it has become a given and will always be a priority.

For CPAs, change has been something to do gradually. Now, they must face the challenge of rapid change. Never before has the business world moved so rapidly.

Many companies are moving away from any type of long-term planning. They are focusing on hiring the right people – those who fit their culture. Company culture has become a top priority.

From my experience, CPAs in public practice know they need to change many things inside their firm. They know they need to change, personally. They listen to me and others and they learn what must be done. They simply do not do it. My favorite description of CPA firm owners:  Good intentions.  No implementation.

Keep in mind, you are running a business. Business decisions must be made. You can’t take decades to implement changes inside your firm. You must get it done in a few months and maybe even a few weeks!

Revisit the quote at the top of this page. Consider how many CPA firms have disappeared via merger/acquisition. Many could not accomplish change so they have permitted others to do it for them.

  • "Stagnation is a slow death."
  • Ellen Hopkins

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