Technology is the accelerator for improving performance and meeting client requirements in today's economy. You can do more with less, but reducing investments in training and technology (as some have done this past year) only results in making your business less competitive.

The amount your firm invests in technology may not be as important as where it invests. Too many firms simply maintain existing technology, rather than investing in new hardware and software that bolster innovation and new revenue streams.

The easy cuts were made this past year in most firms. Now firms must address performance issues at all levels, including partners and others with seniority, who have not maintained their skills and risk obsolescence.

Technology plays a significant role in four primary areas that comprise a competitive strategy for the years to come:

* Talent management;

* Process and workflow;

* Marketing and sales; and,

* Strategic advantage.

Let's evaluate all four areas and examine some examples of how your peers are leveraging technology.

TALENT MANAGEMENT

Talent management will always be critical in fostering the success of an accounting firm. As Baby Boomers retire and the "digital generation" emerges, firms must make investments (time and money) in advancing management to stay relevant. Moreover, transferring knowledge from retiring partners to young people is essential.

Today's talent needs technical, soft skills and IT training. Training and learning is also a two-way street, and the younger generations can teach a firm much about the application of technology.

Many partners have not been trained in management and possess few leadership skills. I hear this comment too often: "I had to figure it out, and so can they." I also hear many technicians say they don't have the time to manage and have little desire to empower people. These are poor excuses for not managing talent. The younger generation is looking for defined expectations, feedback and accountability. Not surprisingly, young people are often frustrated with the lack of accountability at the partner level.

Many tools are available to help firms in this area, including learning management systems that specify learning ladders for various levels, develop personal curricula and track progress. Other tools such as the Kolbe Index ensure that a firm has the right people on the bus and in the right seats.

PROCESS AND WORKFLOW

Firms that strive to improve processes and utilize digital workflow tools have several advantages over those that still use mostly paper and outdated processes. In reviewing tax workflow from a significant number of firms, I conclude the following:

1. There are still too many touches in the process.

2. A significant number of loops in the processes - especially during review - are also evident.

3. Firms drive errors out at the end of a process using the highest-paid personnel.

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