As the accounting profession looks toward the future, it is critical for firms to find new ways to drive practice growth in order to achieve the same results they have experienced over the past decade. There are a number of key factors influencing this need for change including:

• A talent shortage
• Professionals fueled by an overabundant workload and strong growth
• Waning SOX work giving way to increased competition and a slump in downstream workflow
• Leadership succession
• Multi-generational issues
• Clients’ changing needs

Let’s face it, times have been good for CPAs in recent years and attracting new business has been relatively easy. But as the market tightens and attracting new talent becomes increasingly difficult, these jubilant times could soon be a distant memory if we are not prepared to compete in a new operating environment.

Preparing for the Changing Landscape

The first step in this forward-focused journey is to gain a clear picture of practice growth. What does the growth model look like at your firm? What are all the critical elements necessary to propel your organization to success?

Mapping Practice Growth — Mapping process is important because it creates pictures that provide understanding and simplification.This is essential as firms are faced with the challenge of having to do more with less staff. In addition, it provides best practices to an entirely new generation of leaders as an influx of key firm founders look to retire over the next decade.

The 3 Gs of Practice Growth — The new picture of practice growth is built on a solid foundation that includes the three Gs of practice growth — growth of the organization, growth of its people and growth of its clients. This replaces old-school models that focus solely on driving the bottom line.

Expanding the Growth Picture — Once a solid direction based on the 3Gs is firmly in place, the mapping process can continue. Practice growth can be accomplished through a combination of three strategies: organic, merger and acquisition and/or a bundling of the two. Organic growth comprises of the most diverse and expansive component of the picture. Its primary elements can include:

• Organizational Excellence
• People, Leadership Development and Retention
• Customer Service
• Product and Service Innovation
• Client Development
• Niche Development
• Globalization

There are numerous components of each of these key elements, which include everything from branding to information technology. Growth models vary by firm and can encompass diverse strategies based on individual goals, strengths and cultures. Mapping the growth process allows you to examine areas in which your firm is doing well, while highlighting other areas of the growth agenda needing attention.

Five Tips  for the Future

1. Clear the clutter — Gaps frequently exist between the priorities established in the boardroom and those carried out throughout the organization. Lackluster performance often results due to a misaligned focus of time and resources. A clearly-defined growth model allows your firm to work in unison to maximize growth. Adopt a simple litmus test for all new projects.
   
   According to our firm’s mission, vision and goals:
   
   
1. Will it help our employees grow?
2. Will it help our clients grow?
3. Will it help our firm grow?

2. Get everyone involved in the growth agenda — Everyone wants to be on a winning team, but often those outside the executive group do not feel it is their responsibility to contribute to the firm’s growth. If you expect others to help grow the firm, it is important to get them involved. Create an environment where all employees understand and embrace their specific roles in growing the firm and are supported in their efforts.
3. Break down silos — CPA firms have operated in silos for as long as audit and tax have co-existed. As firms have expanded, so have the silos. The curious thing is that the segmented groups often have similar agendas, but fail to work together with others toward achieving similar goals. Successful firms are adopting new business models focused on collaboration. Cross-functional leadership teams are being assembled to implement the organization’s growth goals, such as attracting new talent, building the client base and helping to ensure a successful merger.
4. Look to defined growth processes and best practices to replace rogue efforts — Although the accounting industry has operated for decades by delivering service offerings based on processes and standards, the same discipline has not always been applied to developing practices. Can you imagine conducting an audit without a game plan and standards? So why don’t you apply that same logic to your practice growth initiatives? As we approach a new market, it is important to realize that growth is not a game. Firms will be able to maximize opportunities while minimizing wasted time. Increased results can be achieved by utilizing best practices and keeping efforts consistent. As current leaders look to retire, now is the perfect time to adopt such standards and best practices in your firm.
5. Show them the way — If you expect others to help grow the firm, it is important to show them the way. Although they may want to be involved in practice growth activities, they simply may not have the necessary skills. Practice growth core competencies are among the most valuable skills for tomorrow’s leaders. What are you doing to provide these skills to your staff? There are a number of options for in-house classes and outside training programs to provide these essential skills. Not only will this extra effort enable your firm to grow but it will help you attract and retain new talent.

Success in the future calls for a new game plan today. Gain a competitive advantage by taking a more disciplined approach to practice growth. What a powerful way to align your team while working together to achieve success.

Tracy Crevar Warren, president and founder of The Crevar Group, advises professional services firms striving to grow and maximize performance. Warren was named by Accounting Today as one of the 100 Most Influential People in the accounting industry. She is an author and frequent speaker on various growth, business development, and marketing topics for local, regional, national and international audiences. Warren can be reached at (336) 889-GROW (4769) or www.thecrevargroup.com.