With sand tumbling through the neck of the hourglass that is 2024, I’ll use this space to share my thoughts about forces at play and areas to conquer in our CPA profession. I focus on three distinct themes: complexity, speed, and the imperative to pivot.

1. Complex environment

I was conservative in my choice of the adjective “complex” to describe the current scene. To be perfectly honest, we more accurately find ourselves in a tsunami. As I close my eyes and envision the past several months, I see a giant wall of water washing up over a managing partner clinging mightily to the leg of a sofa being swept into the deluge.

Complexity, and its evil twin uncertainty, are new to us. For a long time, there was predictability in our labor force, in our business model, revenues, profitability, services, clients and even competitors. We didn’t have to break a sweat to manage this. But things have changed, as we find ourselves wondering if it’s time to don the Gore-Tex and batten down the hatches.

Maybe you’ve experienced something like what happened at a firm I know: Kimberly, a team member who masterfully managed the intake of tax returns for years, left to find herself. Mark, her replacement, has barely found his way to

the bathroom after six weeks on the job. Multiply that by the 10 others that the firm lost in 2024, and the impact becomes seismic.

2. Speed of change

Our profession has remained comfortably in the right lane for more than 100 years, driving forward in a paced and predictable manner. As stewards of the public trust, it’s what the market required of us. Now several factors are propelling us into the fast lane — factors like the infusion of capital into our markets, the role of corporate players. and unrelenting changes in technology. From succession planning to financing the firm of the future, the breakneck pace shows no signs of slowing.

The need for speed runs counter to the nature of accounting firms and a partnership model that fosters slow decision-making, where everybody gets a vote on everything. This is at odds with the sheer number, scope and pace of decision-making required in today’s firms. Without a dynamic, corporate-style organizational structure, firms will be unable to move into, let alone remain in the left lane without getting rear-ended by faster, more agile organizations — the ones with the people, succession, financing, and deal-closing strategies all figured out. The ones capturing the markets with an evolving menu of shiny new services — the markets you are used to owning.

3. Strategic pivots

When I left IBM — then considered the most admired corporation in the world — it looked very much like public accounting looks today. We were big, we were solid, and we had little in the way of competition. Most important, we had tremendous predictability and a solid business model. I went from Big Blue to a tech startup where I lasted only 90 days. In explaining why he was firing me, the CEO said, “We are not IBM, and we do not operate like they do. We are not slow and predictable, with our i’s dotted and t’s crossed, and we do not own the marketplace!”

My brief tenure with that startup taught me a lot. In my next chapter, I would have to make my way to a new planet, one where oxygen was unpredictability and strategic and tactical pivots were standard operating procedure. I came to understand that moving forward would require me, and those I later counseled, to become more entrepreneurial, more agile, and more creative. For more than a decade, public accounting fought this imperative. We remained firmly inside the box. We resisted approaches like offshoring and making strategic use of non-CPAs. We stubbornly rebuffed advances in tech. Luckily, that tide is slowly turning. But now we have our backs against the wall.

Prepare to soar

Many firms are acknowledging these realities, and some are taking appropriate action. But still others are thinking, “We’re good. Business is up and so are profits. I don’t see anyone moving my cheese.” If you haven’t yet witnessed these challenges, you soon will. It will be evident when you’re up against stiff competition from alternative firms with better value propositions, pricing, client experience, and service delivery.

Successfully addressing these demands requires creative approaches (like inviting outsider “friends of the firm” into your strategic planning process), as well as consultative input from sources familiar with operating in the left-hand lane. Having come from the technology world, I can tell you that this is their daily fare. Consider importing people from unpredictable early-stage environments, as well as from companies sustaining annual growth rates of 30% or more. They are comfortable discovering and executing strategy amid uncertainty. But they aren’t the traditional hires in CPA firms.

As you plan for 2025 and beyond, consider stepping back, thinking bigger, and evaluating the complexity, the critical need for speed, and your readiness to pivot. Attack your strategic plan in a more open, creative way than in the past.

I cannot predict that you’ll become an instant frontrunner, forever dominating the fast lane, but I bet with confidence that you’ll bring tangible benefits to your firm and those you serve. Wishing you a coming year of confident decision-making and continued prosperity!