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Jocko Willink, former Navy SEAL commander and management creator, has a easy response each time issues go incorrect: “Good.”
The gear did not arrive on time? Good!
Your plan simply fell aside? Good!
In response to Willink, these setbacks usually are not issues; they’re alternatives to adapt, take possession, and discover a higher approach ahead. You simply must commit to creating a mindset shift. As an alternative of feeling like a sufferer, begin viewing challenges or disruptions as a gateway to get higher, stronger and extra resilient. This mindset shift is perhaps precisely what accounting corporations want in the present day.
Corporations are grappling with the identical points: expertise shortages, the seasonality of tax time, and the relentless tempo of technological change. As an alternative of confronting these challenges head on, many agency leaders throw up their arms or just retire, thus leaving it as much as the following group of leaders to cope with. However in case you take Jocko’s strategy, you lean into these challenges and inform your self it is good to have these obstacles to beat.
For extra about leaning into change, see my article
Expertise scarcity — good
The pipeline of latest CPAs is shrinking, turnover is excessive, and compensation expectations are climbing. That is the truth. Most corporations see this as a disaster. However here is why it is good: If everybody faces the identical constraint, then fixing it places you in a singular place. It forces your agency to rethink the way you entice, develop, and retain expertise.
- Do you compete on tradition, not simply on wage?
- Do you supply profession paths and progress alternatives that the Large 4 cannot?
- Do you set excessive expectations that entice excessive performers, as an alternative of watering down your requirements?
- Do you’ve gotten particular niches which can be extremely engaging to good expertise?
The scarcity is painful — however it creates a transparent benefit for corporations keen to put money into individuals, whereas others merely complain.
Seasonality of tax time — good
Each March and April, the identical factor occurs: lengthy hours, compressed deadlines, exhausted employees, extra turnover. It is simple to really feel like a sufferer of the calendar.
However compressed seasonality is definitely good; it is a present, in case you take a look at it the precise approach. It exposes the bottlenecks and inefficiencies in your processes. It reveals you the place shoppers depend on you just for compliance, slightly than planning. And it creates the urgency to enhance by….
- Streamlining workflows now so busy season will get simpler subsequent 12 months.
- Discovering a brand new residence (totally different agency) on your lower-value returns, so your senior employees can give attention to higher-value planning.
- Utilizing tax season as a pure touchpoint to pivot shoppers towards year-round advisory companies.
The corporations that lean into seasonality as a forcing mechanism are those that emerge stronger — not weaker.
Know-how velocity of change — good
AI, automation, portals, dashboards — change is going on sooner than most corporations can soak up it. Many leaders reply with resistance: “We will not sustain.”
However here is the reality: speedy change is the nice equalizer. Nobody has figured it out but. And which means the agency that has the braveness to experiment, undertake, fail ahead and combine know-how the quickest features a aggressive benefit. Listed here are some methods to make that occur:
- Automate low-value duties, so your individuals spend extra time on technique and relationships.
- Use fashionable instruments —younger professionals anticipate them.
- Deal with tech disruption as an invite to rethink companies, pricing and shopper engagement.
- Deal with early stumbles as studying alternatives, not as failures.
- Create a change agent within the agency whose job is to lean into (and educate others about) new know-how developments.
Sure, the tempo is overwhelming. Good. Meaning alternative is in every single place for corporations daring sufficient to grab it.
Jocko’s “good” philosophy would not deny actuality. Issues exist. They’re irritating. However the distinction between leaders who succeed and leaders who stall is how they reply. In accounting, expertise shortages, seasonality and tech disruption aren’t going away. They’re right here for each agency. And that is good. As a result of if everybody faces the identical storm, the corporations that adapt, make investments, and lead have the very best probability of separating themselves. So, the following time your agency hits a bump within the street, strive responding like Jocko: Good. Now let’s determine methods to transfer ahead.
What’s your agency doing to show obstacles into alternatives? I might
