Pathways to Growth: Take five to grow

October 5, 2022 2:25 PM

Much has changed in recent years about the practice of accounting, including how we envision and fashion the future. The work of anticipating tomorrow's firm is certainly nothing new; proactive firms have been looking beyond the horizon for decades. What is new, however, is what's required to get there.

When we grew firms in the past, the approach was generally tactical. Growth was all but guaranteed if a competent practitioner or firm hung out a shingle, joined the local country club and pursued a steady diet of banker breakfasts and lawyer lunches. The aim was to catch one fish at a time, and we got pretty good at it.

The rod and reel, however, has given way to a digital net. The firm we wish to grow is no longer characterized by only individual contributors working their books of business. It is not place-based. Rather, it is leader- and specialist-driven. It aggregates large schools of fish and serves them up to the firms best aligned with their needs.

One reason for this shift is the evolution in the discovery of powerful distribution channels. Add to this more powerful digital tools, such as LinkedIn, live videos, newsletters, social media, as well as lead capturing, sales process tracking and more. Also in play is the maturing of our markets, with big shifts in economic conditions, technology, standards and regulations, and competition. Witness for example the entrance of non-accounting professionals into the environmental, social and governance arena.

The work of creating tomorrow's firm, strategic and specialist-led and market-driven, is before us today. As growth-minded leaders, it's time to reshape our thinking about how we grow. And it's time to invest in the tools, systems and people who can lead you, bold and unafraid, into the future.

Take five to manage growth

In view of these market dynamics, I recommend five best practices for managing growth in the firm of the future.

1. Think many firms, not just one

As you groom leaders to champion growth, envision individual firms, or business units, within your organization. I call these segment leaders, as they are responsible for the strategic direction and financial health of each of the firm's revenue segments. They are your industry and service line leaders, who are charged with driving demand — from ESG to cryptocurrency and blockchain. They are prepared to understand and execute relevant technologies, like dashboarding or benchmarking through data analytics within specific industry business use cases.

2. Perfect the opportunity pipeline

Most revenue is now annuity-based, but future revenues will have a significantly higher mix of project work. Therefore, leaders will need to perfect their pipeline management skills, and include weaving professional salespeople into the fabric of the firm, which is more typical of consulting firms.

3. Build on the basics

For years I've been advocating the three-legged stool of strategic growth — marketing, sales and new product development. It worked in the pre-digital past, and it continues to be the best method to bring new offerings to likely buyers. The legs, however, have evolved. Marketing is no longer a brochure or a catchy tagline; it's strategic and digital. Sales includes sophisticated pipeline management. And product management is all about innovation.

4. Tap new talent

CPA practices finally got the memo about the need for marketing professionals, and in the past 20 years, we've seen that function grow and contribute. The firm of the future will need leaders with additional skills, however -- like a chief growth officer who works alongside your managing partner in pursuit of overall strategic firm growth, and a chief innovation officer who matches the needs of the market to relevant technologies. They'll form partnerships with vendors and help segment leaders launch early adopter programs, discovering the best growth strategies and achieving market lift-off.

5. Go for it

With the firm of the future quite literally on our doorstep, there's little time for a measured, incremental approach to these changes. It's time to embrace the vision and go for it. For a couple of years, we could hide behind COVID, but case numbers notwithstanding, the pandemic is no longer an excuse for hanging onto the status quo.