I viewed with interest a recent list of the 25 fastest-growing CPA firms in the country. I was pleased to see them on such a prestigious list, but the satisfaction came from another place. It was the fact that those most recognized for growth are not resting on their laurels. Rather, they see the need for ongoing, professional growth strategies, regardless of the market, the economy and other prevailing winds.
It’s well known that today’s most pressing challenge is a scarcity of talent. Not only a severe shortage in the profession, but also notable declines in the number of students selecting accounting as a major, and those sitting for the CPA exam. Despite the need to attract talent via meet-and-greets, social media campaigns and referral programs, some firms have managed to keep their hive mind concurrently focused on growth, a critically important exercise in strategic thinking.
They recognize that continuously developing their growth muscle, and matching it with strength in service delivery, is essential to the culture, and to the future of their firms. Growth is their core curriculum, not an adjunct activity warranting attention only as time allows or when demand dries up.
What are these firms doing that you should be doing?
Such firms do not consider growth a stand-alone functional area. Rather, they see it as the foundation that permits everything else — from attracting the best talent and the best clients, to professional development, culture, innovation and client service. They avoid reactive responses to every change in the wind, i.e. cutting staff when business lags, only to be caught shorthanded when things improve.
Another characteristic of these firms is that they remain focused on managing the growth they create. They are students of the market. They have perfected, or strive to perfect, the ability to see the market from the outside in, not from the inside out, which is one of the fundamentals of success. This means that, rather than developing offerings first, then proposing them to potential buyers, they instead listen to and learn from diverse sources about what the market wants, then respond with focused, relevant solutions.
As well, growth superstars always consider the implication of market consolidation, innovation and other factors on strategic growth. If the result of widely available technology is a likely reduction in billable human hours, they prepare for that eventuality by driving innovation and efficiency, and high margins through value-based pricing. They know that commoditization of core services necessitates an aggressive outsourcing and technology strategy.
What’s more, committed growth leaders are constantly scanning the horizon for changes in market conditions due to technology, competition, regulations and standards, and changes in economic conditions — the key thunderbolts of market disruption. They were the first out of the gate to take basic services offshore, and the first to incorporate bots in audit and tax preparation. More than simply driving efficiency, they maintain a growth mindset to achieve competitive advantage. They were quick to respond when COVID-related laws presented opportunities, and are keeping their eye on developments and future potential in environmental, social and governance reporting and assurance.
The leaders of these firms are not monolithic. Some I have worked with displayed strength in the service delivery side of our profession. Others have particular strength in the area of driving demand and building a culture of strategic growth.
Firms of the future
Even in times like these, when “nobody” is worried about growth, and firms are scrambling to deliver the work they have promised, growth-go-getters — the firms of the future — focus on strategic growth, pruning the bottom and driving large account programs at the top, and constantly assessing which markets will prove most rewarding.
Yes, personnel shortages will likely remain front and center for your firm, as they will for most in the foreseeable future. But your ability to also keep your eyes on the prize of growth promises to be a compelling determinant of success in the long run. It’s a priority you will never regret.
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