The issue of capitalization has definitely come to the forefront. With all of the changes taking place in the profession, trends ranging from technology (artificial intelligence) to new products and services, it is apparent that firms will need to make significant investments if they want to remain competitive.
This dynamic brings in new issues of overall firm profitability, as well as the potential compression of current partner earnings. It is a classic case of the investment in innovation vs. the wants and needs of partners in terms of compensation. READ MORE →
I see movement of “advanced” lateral talent. While lateral talent has always left the Big 4 firms to pursue career opportunities with local, regional and middle-market national firms, it appears the movement of “advanced” talent is happening at a greater pace.
Positions ranging from manager, senior manager, principal and partner are finding they can accomplish their career goals at a potentially accelerated pace at local, regional and national firms, while also enjoying the culture of these firms. In the past, this type of movement didn’t take place as often, as many of these individuals completely left public accounting when they left the Big 4. READ MORE →
Firms are gearing up the financial and people resources around recruiting in ways I’ve never seen before. Interestingly it’s not so much at the entry level but rather at the experienced hires all the way up to lateral-level senior managers and partners. READ MORE →
Recently my clients, Tony Frabotta and Rick David of UHY Advisors, forwarded to me the Summer 1988 issue of The PDI Report. Tongue in cheek, they said to me they were surprised to see that there was another Allan Koltin who also did consulting to the accounting profession. (Needless to say, they were poking fun at me based on my 1988 photo versus how I appear today!)
This issue of The PDI Report was not just any issue; it was an issue in which we gathered together the country’s leading consultants (similar to how I participate in The Advisory Board and New Horizons Group today) and aired their views on the profession and industry trends through what was then called the First Annual Consultants Roundtable.
Some of the issues discussed almost three decades ago are still what we talk about today, including: industry specialization, quality service, the importance of great leadership and management, value billing, and the significance of having a firm vision, mission and core values.
It’s also interesting that back then a mid-sized firm was defined as a firm with $1 million to $10 million in revenues, whereas today a mid-sized firm probably would start at $10 million and potentially go up to $36 million (the cutoff point for being a top 100 firm).
That being said, the following are items that have completely changed since that time or weren’t even on the table for discussion: READ MORE →
Theysay"past results are no indication of future performance." Maybe. Maybe not. But if anyone should know, it's our panel of experts, their comments drawn fromthe new edition of The Rosenberg MAP Survey. These are their bullet points and comments, verbatim, looking back at the last 12 months and looking ahead to 2016. – Rick Telberg, CEO
There has been a lot of discussion regarding the three “Big C’s” (compensation, capital and [deferred] compensation at firms). There has also been more rethinking of traditional bonus programs for staff…paying everyone something has become an entitlement (and doesn’t really leave enough for the stars) vs. just giving a bonus to those who “really hit it out of the park.”
The war on talent has gone from white gloves off to boxing gloves on. Firms are also getting much better at
expectations of performance and
having leadership hold partners accountable for performance.