“That’s how we’ve always done it”...
I remember meeting with audit clients and hearing this all the time. Perhaps it was about an accounting standard being applied incorrectly or a controls process that needed some improvement. Without fail, the biggest obstacle to moving forward was acknowledging that the way it was done before may not have been the best way.
When we heard a client say this, we always thought the client was archaic or ignorant. How could they just keep doing the same thing again and again without progress? It was so stagnant.
However, there is a lot of hubris in this. The reality is firms fall prey to this all the time in their own operations. With such a focus on billables and client service, it’s easy to not keep up with best practices for firm operations. This is exacerbated by the echo chamber that exists in many firms whereby partners are only homegrown and no outside perspective is brought in to run the firm. In this scenario, the status quo is all these leaders know, and the proverbial echo chamber is in effect.
How to Seek Outside Perspectives
The most effective and high-growth mid-market firms I see are the ones that recognize outside perspective is valuable (just like the best clients are the ones that recognize the value of their accountants' advice). Sometimes this takes the role of a fractional advisor specialized in firm operations or a full-time operations leader. As these small and mid-market firms face aging out partners and pressures from PE and large firm consolidation, having a fresh perspective is vital to success. Even leveraging best practices and industry insights from key external partners, such as technology partners (not just technology vendors who are transactional in nature), can be a way to learn how other firms are finding success.
Moreover, embracing outside expertise doesn’t just modernize operations; it reinvigorates a firm’s competitive edge. Firms willing to experiment with pilot programs, whether in technology adoption or team management structures, often uncover efficiencies and innovations that those stuck in the status quo overlook. It's not just about avoiding stagnation—it's about actively pursuing agility.
Best Practices in Change Management
Successfully evolving your firm requires not just recognition of the need for change but a structured approach to implement it effectively. Proven frameworks like Kotter’s 8-Step Process for Leading Change or Prosci’s ADKAR Model emphasize the importance of creating urgency, building buy-in, and reinforcing new behaviors.
For actionable insights, explore resources like:
Adopting these best practices can help your firm avoid common pitfalls and achieve lasting transformation.
Adding New Perspectives
Between aging out management, technology advancements, and industry consolidation, the status quo will no longer work. Firms that actively seek to incorporate external expertise and foster a culture of continual learning will not just survive but thrive. Now is the time to evolve or perish, and having an outside perspective will be invaluable in advancing your firm.
Author: Dave Bunce