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Partners in Top 100 Firms overwhelmingly express a preference for their firms to remain independent. Not surprisingly, there have been very few recent mergers combining Top 100 Firms. This period of calm is highly reminiscent of the climate among the Big Eight firms in the 1980s. Few predicted the upcoming spree of mega-mergers that created…
Business strategists who follow the accounting profession are sending a consistent message: “The work of accountants is going to be heavily automated by further advances in technology. Firms need to move into value added advisory services to maintain growth and profitability.” When we talk to managing partners, we hear this same prediction. Surprisingly, though, the…
Many CPA firms have been expanding rapidly, both organically and through mergers and acquisitions. This has included significant geographic expansion beyond the firms’ core locations. It has also included expanding into new areas such as IT-related advisory services. Firms that have not expanded think seriously about the need to expand and whether they can remain…
The most critical issue facing the accounting industry today is the war for talent at all levels. In fact, the first sign that a CPA firm is in trouble is when the firm is not able to recruit, develop and retain great people, especially to succeed their current leaders. These firms have only three choices:…
Many accounting firms have robust formal learning programs for their staff early in their careers. Over time, the amount of formal training declines to some ad hoc programs plus required CPE training, and most meaningful learning takes place on the job. This is not a bad approach in principle. The key is how this experiential…
The word passion comes up frequently in the context of business strategy for accounting and advisory firms. I still remember when Jim Schiro was first elected chairman of PricewaterhouseCoopers in the 1990s. During his first address to partners, he told us that “passion” was one of his three strategic initiatives for the firm. He recalled…
Getting partners to transition toward retirement as they approach the firm’s retirement age is a problem facing many CPA firms, and its implications are far-reaching. Most firms in the Top 100 have a mandatory retirement age between age 60 and 66. Accordingly, partners within a few years of this age should be expected to begin…
As we were wrapping up a strategic planning discussion with one of our clients—a major accounting and advisory firm—the firm’s managing partner turned to us and asked, “What would really change the way our partners interact with clients? Partners have strong client relationships. They know client executives well personally and professionally. They just find it…