It seems almost every day, a merger between professional service firms is announced and Colorado is no stranger to this phenomenon, with its fair share of mergers over the last several years, as well. There are many reasons for professional service firms to merge, including access to additional resources and succession planning. Specifically regarding firm mergers, in a recent AICPA survey, 40 percent of firm owners are planning to retire during the next five years and 84 percent expect succession planning to be a significant issue in the next decade. Regardless of the end goals, there are key areas leaders should focus on to thrive in a competitive market and position their companies for future success.
PLAN FOR GROWTH + SUCCESSION
Succession planning is more than planning to replace key leaders when they leave a company or retire. Succession planning often gets pushed to the back burner, viewed as a plan for replacement of individuals in key management positions. Of course, that's one benefit to succession planning in any company, but especially in professional service firms, where historical knowledge and transitioning relationships are essential. Beyond replacing people in case of retirement or an accident, succession planning has greater benefits and positions a company for growth.
When companies create a plan that showcases opportunities and positive challenges, employees are better able to see a hopeful future at the company. When employees see themselves as a part of the future organization growth, retention increases. Writing a plan that includes both leadership development, future needs and growth opportunities is great for morale and retention.
Some ways to actively plan for growth and succession by:
CULTURE PLANNING
Great cultures don't just happen by accident – They are planned. Some companies think of planning in terms of the number of employees needed in the coming year(s). While growing modeling is important, innovative companies examine their current cultures and are constantly taking inventory of what is working and what isn’t. Consider these areas when developing your culture:
At ACM, we regularly work on our culture constantly. We have a “People Committee” that meets regularly to examine the areas above. Here are some of the ways that ACM works on culture:
GET INVOLVED + GIVE BACK
I am a firm believer in what I refer to as the enrichment cycle. The philosophy of the enrichment cycle is that the more you give, the more you get back in return. What you receive in return is not necessarily a financial enrichment but rather the ability to be more engaged in your community, philanthropy and being able to make a difference in the lives of others. In this regard, individual leadership leads to the enrichment of many, not just a few.
ACM is a locally owned, locally committed firm. We encourage our people to get involved, even writing it into their goal planning for the year. Further, we financially support the activities of our people who are giving their time and resources back to our communities. We believe that together, we become stronger.
Gregory J. Anton, CPA, is the chairman and CEO of Anton Collins Mitchell.