It’s a new year and there’s a new political and economic environment on the horizon. For much of 2016, those of us participating in the CPA Center of Excellence® Online Community talked about being innovative. My question is, do we currently have the ability to recognize when we are being creative and innovative?
My normal day is immersed working in spreadsheets, and talking about that work in spreadsheets with people who love spreadsheets. Our long-term outlook has really evolved too. We work to find ways to make these dope spreadsheets even better.
Sounds pretty creative.
Well the fact is, if some innovative thought is going into what creates new solutions for your people or your clients, then you are being creative.
The public accounting profession may be one of the least progressive out there. Personality types do not, by nature, thrive in environments of constant change. Change can bring back “first date anxiety” and uncertainty that the world no longer fits in a box that can easily be taken anywhere.
I’ve sat in too many conferences where CPAs say they need to change with the modern business environment. You know what this led to? Ten years’ worth of work to try and evolve accounting standards to have standardized financial reporting throughout the world. They’re more or less scrapping this idea now. Good job guys.
Reluctance to change has led to missed opportunities in the profession in big data, talent acquisition, and who knows what else. The point is, innovative solutions don’t need to create a new product or industry in one step, but your organization needs to move in this direction to meet your full potential. It is an essential element to creating an engaged organization.
Let’s put this into practice … hey CPAs, why has the structure of firms continued in the same manner for over 100 years? Literally. 100 years. Would you prefer a car with modern amenities or would you go with a Model T? So why have accounting firm structures not changed?
On the other end of the spectrum, let’s look at the tech sector that utilizes mobile workplaces, where flex time is required, and profit sharing is in entry level compensation packages. What if a CPA firm came along that flipped the script? Most of the innovation has been done at the Big 4 firms where they have the capital and clout to make this happen. But even they can lag behind. They just know that they can’t do it themselves and pay people whose job title should read “Guy that thinks of stuff.”
What if we had an entrepreneurial structure? What if each client was its own business, and the partner group was really venture capitalists making investments in teams? Picture how an evaluation might go differently if it was staff defending their performance not to their boss, but their investor? What if you give a group a portfolio of clients, tell them to make the budget actually work, and part of the deal is they have to run a business. They won’t have the backstop of depending on the next team to help us out with staff. Well you can go to other teams for help, but now they are billable consultants.
This new structure provides the platform for people to really think about purpose, execution and making a business work. And, really, how different is it than the present? You can keep your safe LLC structures and staff tree. All you’re doing is adding accountability to accountants to make their own future.
Did you find it funny that I tried to sell change to CPAs when this isn’t really change? The first step is the hardest, but make it your new addiction. Be tact, think bold, and find the calculated risk. Where can you or your organization be creative? Read, comment, share. Start the conversation.