Succeeding in a Recession

Source: Accounting Office Management & Administration Report

AOMAR reports on a four-firm panel discussion on finding opportunities in the recession. The discussion took place at the AICPA Practitioners Symposium in Las Vegas. Here are some highlights:

• The recession offers an opportunity to attract high-quality people.
• Some firms are keeping raises steady.
• Fees may be reduced, but market share may increase.
• Institute performance-based layoffs.
• The recession offers an opportunity to get in front of clients like it's the first time you met them.
• Help clients become more efficient.
• Clients can participate in the CPA's work to reduce fees.
• Some clients are using the economy as a "way to beat us up."
• Let poor performers go but commit to a performance development initiative for remaining staff.
• Document what people are doing. Use AICPA's PCPS competency models and performance management program to help staff identify and develop skills.
• Teach staff how to keep clients happy.
• A large firm (400 people) gave a two percent across the board compensation increase instead of a higher range and individual compensation reviews as in the past. The firm is seeking out staff to replace those eliminated for performance reasons.
• Emphasize "work smarter" initiatives such as workflow reviews, cost containment, and fraud prevention and detection services.
• Move training classes to Webinar format.
• Focus on maintaining the firm culture.
• Implement smarter IT spending.
• Cut back on marketing initiatives that haven't been working.
• Emphasize training--teach people how to increase realization.

The four firms on the panel were: Heinfeld Meech & Co., Arizona, 80 employees; DiSanto Priest & Co., Rhode Island, 80 people, Marsh & McConnell PC, Georgia, 20 employees; and Lattimore Black Morgan & Cain PC., Tennessee, 400 employees.

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From Accounting Office Management & Administration Report, Institute of Management and Administration, Inc., Newark, NJ, [email protected], September 2009, p. 4, "Keller's Comments: Opportunities for Partners to Turn Over a New Leaf."