February 2017
Becoming the Accountancy
Firm of Choice
Competition is fierce across all segments of the UK accountancy market and with increased
regulatory scrutiny, digitisation and automation, some firms may struggle to grow and an
ever-increasing number of firms are merging in the belief that with size comes safety. But,
size doesn’t necessarily equate to safety.
Safety, and the opportunity to grow and progress, only comes from clarity around which
services should be sold, to which clients, and critically how they should be delivered,
and by whom. With all of those decisions being relative to competitors.
Probably the only thing we can predict with any certainty is that competition will only get
tougher. So, how do accountancy firms break out of the pack and put themselves in a
position to enjoy sustained success?
Firms have to make an explicit decision to become ‘the firm of
©
©
Professional
Service
Firm
Systems
Beliefs
Professional Service
Firm
Systems
and and
Beliefs
ModelModel
choice’, but there will be multiple contenders for that title in
the market. So, what will differentiate the firms that take the
prize from those that don’t? The answer is simple: their ability
to implement changes needed to move them from their current
operations and culture to those that differentiate them from
their competitors.
Clients
Markets
Industry segmentation Service segmentation Segment size and profitability Client needs Service lines Sales by service line Brand strength/reputation Quality of execution Internal alignment Satisfaction and retention Cost of sales
Brand loyalty
This download, based on the book, ‘How To Become The Firm
Underpinned by:
Of Choice’, published by our sister company ARK Group, looks
Being the best
into some principles that underpin successful change to help
Deep, deep client orientation Outstanding execution firms become the firm of choice.
Adaptability/willingness to experiment Accountancy firms are full of highly intelligent, highly analytical
“One firm” firm people. People more than capable of comparing the individual
The firm’s people are its key resource elements in the model to how their firm currently operates and
determining precisely what their firm needs to do to change the
way it operates. However, these same people may be much less
effective at turning their plans into reality. Hence the firms who
will ultimately become the firm of choice in their chosen market
will be those that can implement their plans faster and more
effectively than their competitors.
www.mercia-group.co.uk
Finance
Assignment profitability Asset utilization Cost management Cash flow Investments Distributions
People
Ambition and intent Cultural fit Capability Speed to experience Dispersed leadership Satisfaction and retention
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that will deliver the systems and beliefs contained in the model.
You have to make the ‘end’ real not
an abstraction
What we can do, though, is highlight the principles that underpin
Everyone needs to know what the end is and what it will look
successful change in any professional service firm.
and feel like to them personally. Change invariably increases
As all firms will have different starting points, what we can’t do
in this download is go through every possible set of actions
But let’s start with a general but crucial observation: no plan
for change works as people intend it to at the outset. Change
can be illogical, nonlinear and frustrating. Good ideas can also
people’s levels of anxiety and uncertainty, so providing as much
detail as possible about what they will be doing differently is
particularly important.
partners and senior management unfamiliar with change and
Involve everyone in the firm as
early as you can
who, in their everyday work, are used to the idea that their voices
By doing so, people will take ownership of the problems and the
come from the most unexpected (and often younger and less
experienced) sources. This can be particularly perplexing for
and reputations carry the most weight.
So, here are some key principles:
solutions, and they’ll deliver!
Change is about the whole firm
Behaviour only changes where the
work gets done
Experience tells us that rarely in any firm do all the offices
The partners have to ensure that their people take on board the
operate at the same level. And, as good as it may be for one
new ways of doing things, of dealing with clients and each other,
office – say, a five partner practice in the North East - to be
and don’t fall back into the ‘old’ ways because it’s easier.
the firm of choice in its market, if the firm’s other offices do
not have the same, or similar, reputations, it severely restricts
opportunities to introduce other services with the revenue and
profitability enhancements that should go with it. So, while it’s
Encourage people to do things
differently
tempting, if you are that North East office, to go steaming ahead
and ignore the position of the firm’s other offices, remember,
successful change is about the whole firm.
The partners have to walk together
The partners are the leaders in the firm. They have to act as one,
or ‘walk together’ as we call it. As the people, who influence both
what gets done and how it gets done, the partners must lead
from the front in both word and deed.
But don’t criticise failure or create a culture that is intolerant
of failure. And don’t expect or wait for perfection. Just because
something doesn’t work the first time, that doesn’t mean that it’s
wrong or won’t work next time.
Recognise people’s contributions
People want to be associated with success; it’s uplifting and
great for morale. Thanking people can act like rocket fuel and
encourage them to do even more.
Don’t reinvent the wheel
Bring people together to share what’s worked in other parts of
the firm and what hasn’t. And spread the good news fast!
www.mercia-group.co.uk
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Instil a ‘high challenge/high
support’ culture
Speed and momentum are critical
Lots of firms have the high challenge but not the high support.
any initiative to make the firm even more effective in its market,
People should never be afraid to ask for help. Remember, it’s
about being the best. And people will make mistakes. The key is
While there is always lots of energy and excitement at the start of
sustaining that momentum is especially important. That means
keeping the prize, and the benefits to everyone at the front of
to help them, to analyse what didn’t work as intended, learn from
people’s minds.
it and move on together.
People will get ‘change fatigue’
Take every opportunity that comes
along
Use unexpected consequences as opportunities to build on and
use them to your advantage.
Over communicate. Over
communicate. Over communicate
There is no such thing as over communication when
implementing change. People get bored, get worried, get tired
– the partners have to reduce their anxiety by keeping them
informed about how far they and the firm have come and what
has been achieved.
Everyone in the firm will, at some point, have had enough and
will dream of just doing their ‘day job’. This will include the firm’s
leaders as much as anyone, but to help everyone in the firm
keep their focus on the end point, the leaders have to be on the
road, telling the story, emphasising the why and the benefits.
These principles highlight the complexities and difficulties of
change - becoming the firm of choice is not easy! However,
following these principles and integrating them into the way the
firm takes on the challenge of becoming the firm of choice, will
definitely make a discernible difference. There’s no doubt that
responding to the challenge will feel soul-destroying at times but
when the firm achieves its ‘best in class’ reputation, it’ll all have
been worth it!
Know what you’re good at – and
what you’re not
When you need external help and support, get it. It’ll speed the
© Rob Lees and August Aquila, December 2016. The ideas in this
process and that’s key.
download come from a new book, ‘How To Become The Firm Of
And finally, three key ones:
Choice’, published by our sister company ARK Group.
Make things fun
Make things exciting. Make it worth the time, effort and pain
involved in getting there.
You may be interested in…..
Management, Leadership and Business
Development Training 2017
A range of courses to help you develop your practice and people.
An open course programme is available in London and Leeds.
Bespoke in-house programmes also available, for example we delivered a programme on Managing and Dealing with Change
for a multi-office firm in the North.
For information of users: This material is published for the information of clients. It provides only an overview of the legislation and regulations in force, and due to come into
force, at the date of publication and is not intended to provide a comprehensive review of all changes relevant to all clients. No action should be taken without consulting the
detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be
accepted by the authors or the company.
February 2017
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