Predictions for 2022: Part 2

Last week we published Predictions for 2022: Part 1. Welcome back for Part 2; more predictions and trends to consider as you develop your strategic plans for 2022 and beyond.

1. The firms that have grown through the consolidation of aging partners and practices will begin to address intensified succession planning issues. Firms with succession challenges that wait too long to merge up or be acquired will experience significant decreases in practice valuations.
2. More firms will merge as a competitive strategy to gain more resources, greater service capabilities, and industry expertise, and advisory services rather than for near term succession problems. There will be more mergers of mega-firms into larger regional and national firms.
3. Managing partners and executive committee members will be held more accountable by their partners for strategic actions and profitability. Attention will focus on their ability to lead and manage successfully and achieve the goals and objectives, as documented in the firm’s strategic plans.
4. Technologies such as artificial intelligence (AI) and robotic processes automation (RPA) will continue to advance at an increasing pace.
5. Rapidly changing technology will play an even more significant role in marketing professionals’ programs and plans. As a result, marketers will be better equipped to generate ROI-driven reports, perform precise market research, collaborate with BD professionals on CRMs (Customer Relationship Management), target prospective clients, implement digital marketing and social media campaigns, and use videos and creative designs to illustrate client success stories/case studies and testimonials.
6. Diversity, equity, and inclusion (DEI) initiatives will continue to be a competitive differentiation, especially in attracting the best talented professionals.
7. There will be an increased number of firms hiring lead generator/business development professionals to compete with larger firms and supplement the practice development efforts of their partners.
8. The need for diversified multi-faceted marketing professionals will become even more necessary to maintain a competitive edge in the local marketplace. As a result, more firms below the Top 200 will outsource their marketing and practice development programs to consulting companies.
9. As the lack of qualified professionals continues to be an obstacle to growth, the role of internal marketing professionals will continue to expand and increase in the areas of recruiting and hiring practices to attract quality staff, partners, and M&A candidates.
10. The partnership structure will continue to fade away and will be replaced by a more corporate type of structure. More firms will hire professional COOs to assist the partners in managing their organizations.
    
    The future is bright for accounting firms that can quickly implement initiatives and strategies to adapt to the changing marketplace and the needs of quality clients.

“It is not the strongest of the species that survive, not the most intelligent, but the ones most responsive to change.” — Darwin

Related Article: Predictions for 2022: Part 1

Joe Tarasco is CEO, and Nancy Damato is president of Accountants Advisory Group, LLC, a national and international consulting firm to public accounting firms.  Accountants Advisory Group professionals consult from practical industry experience, having held executive positions in the certified public accounting industry in the areas of partner governance, practice management, marketing and human capital.