Diagnosing the Health of Your Firm

Source: Accounting Office Management & Administration Report

Your firm may be doing well, but is it threatened by complacency? Here are some warning signs:

• Profits are stagnant.
• Leadership is not interested in new initiatives. Innovation is stifled by policies that encourage customary practices and discourage risk taking.
• New engagements are difficult to acquire.
• Leadership focuses on current profits at the expense of the long term. For example, it eschews mentoring and individual marketing plans.
• Leadership is not informed on what the competition is doing or on trends in the profession.

A Web site, www.EntrepreneursLab.com, advises on how to avoid self-satisfaction:

• Examine all procedures in the firm and determine which work and which do not.
• Evaluate your best clients to see if they are really profitable for you.
• Determine which marketing initiatives are successful and which are not. Take action.
• Consider a make-over of your Web site. Make sure your marketing materials are synchronized with your site.
• Update your technology and make sure everyone is properly trained on it.

From Accounting Office Management & Administration Report, October 2007, p. 1. For subscription information contact Institute of Management & Administration, Inc., 3 Park Avenue, 30th Floor, New York, NY 10016-5902. One-year subscription $399. 212-244-0360, [email protected]. For the complete article, click here.