As accounting professionals, it is crucial to understand the various forces that can impact value within your firm and for your clients. Specifically: What is within your control, and how can you focus your strategies accordingly?
In this article, we will explore the eight forces that can influence value and discuss what aspects we have the power to manage and shape.
Strategy Planning and Implementation
Having a well-defined strategy will keep your team on the same page. It enables you to anticipate and adapt to market changes, seize opportunities, and navigate challenges effectively, fostering long-term growth and success.
When formulating your strategy, it is important to determine the metrics that are mission-critical to your firm. Avoid the trap of tracking too many metrics. That can dilute your focus. Rather, identify the key performance indicators (KPIs) that align with your firm's goals and track them diligently to ensure you are on the right path.
Perception of Your Firm in the Marketplace
The perception of your firm in the marketplace impacts its value. Clients and prospects often base their decisions on their perception of your expertise, trustworthiness, and ability to deliver value-added services. It is crucial to cultivate a positive reputation by consistently delivering exceptional service, engaging in thought leadership, and actively participating in relevant industry events.
Your firm's range of offerings plays a vital role in determining its value. Assess the services you provide and ensure they align with the needs and expectations of your target market. Continuously innovate and enhance your offerings to stay ahead of the competition and deliver superior value to clients. Market research and informal research and conversations can help identify emerging trends and client demands, enabling you to proactively tailor your services accordingly.
Financials (Inflation, Price Increases, Margins)
Stay on top of economic trends and financial indicators that may affect your clients' businesses. By understanding these dynamics, you can make informed decisions about pricing strategies, managing costs, and positioning your firm to adapt to changing market conditions.
Culture and Talent
The culture and talent within your firm contribute to its value. A positive and inclusive culture fosters employee satisfaction, productivity, and retention. Nurture a work environment that promotes collaboration, continuous learning, and professional growth. You will also cultivate a larger pool of talent for future firm leadership and potential partnership.
Growth Orientation or Risk Orientation
Assess whether your firm and its leaders have a growth-oriented or risk-oriented mindset. Are you focused on embracing opportunities and envisioning a future of expansion, or are you primarily concerned about the potential risks and downsides associated with growth? While it is important to consider and mitigate risks, a growth-oriented mindset encourages forward-thinking strategies that capitalize on potential upsides.
Internal Positioning and Mindset of the Effects of "Outside Forces" on Strategic Choices
Disruptive events and market shifts are inevitable. The way your firm perceives and positions itself in response to these external forces can influence its value. As a leader, be mindful of the language you use and the mindset you project onto your team. Do you have an "upside mindset" or are you solely fixating on potential downsides? What about your clients? By paying attention to orientation and mindset, you can ensure that your firm and your clients effectively navigate external challenges and embrace opportunities for growth.
By taking charge of the controllable forces that impact value, accounting professionals can position your firms for sustainable success in an ever-evolving business landscape.
About Amy Franko
Founder & CEO, Amy Franko Associates
AmyFranko | @AmyFranko
Named to LinkedIn’s Top Sales Voices, Amy Franko is a sought-after sales and leadership keynote speaker. With her unique blend of current research, fresh insights, and real-world examples, she has worked with some of the world’s most-recognized brands. With over 20 years of client-facing sales experience, Amy’s sales career includes global companies IBM and Lenovo before pivoting into entrepreneurship. Her book, The Modern Seller, is an Amazon best seller, and she is recognized by Top Sales World as one of the top 50 sales bloggers and keynote speakers in the world. Learn more and download a free chapter of The Modern Seller at amyfranko.com.
This webinar is part of our Redefining Value webinar series. View the other virtual events and learn more about this series.