The Firms(s) of the Future(s)
The Firm of the Future. What does the future look like? And how does one ready their firm to flourish in it? Lately, the future seems to be arriving faster than it used to, and these questions have increasingly grown in significance. Many of you also recognize The Firm of the Future as the title of the landmark book by Ronald Baker and Paul Dunn, where they lay out an argument and a plan for professional firms that shifts focus intensely to identifying and pricing for value. Another highly recommended title and a companion volume: Implementing Value Pricing.
Like many Thrivealists, I am fascinated by the concept of the firm of the future â itâs so core to who we are, and runs as a common thread through our Manifesto. The more I thought about it though, the more I came to think that âthe firm of the futureâ was somewhat of a misnomer. I had a chance to actually chat about it once with Ron Baker, and he readily agreed. He wasnât fully comfortable with the term, but he hadnât found one he liked better just yet. More recently youâll often find him, and other members of the VeraSage think-tank, using the phrase âtimeless firms,â which I find much more apt.
Language affects thought, which in turn affects belief, which then impacts action. The problem in my mind with âthe firm of the future,â is that it is both singular, and static.
Energy Futures
In the financial markets, âenergy futuresâ refer to that elusive breed of investment instruments known as derivatives. The idea is that you can buy a contract now, for a set amount of energy (say, fuel) in the future. Itâs what gave Southwest Airlines the leg up in the early 2000âs and allowed them to keep their prices so low for so long â energy futures, a good thing (potentially).
In a converse, but no less elusive, way, the same holds true for the actual future: itâs made up of the energy from today. The energy you expend today is shaping your tomorrow. Which means that to change your tomorrows, you have to change your todays. The future isnât powered by, âWell Iâd like to do that one day.â Itâs powered by, âIâll do this now, for my later.â
Thatâs all well and good of course, and perhaps weâve all heard it before, but how do I actually change my todays? Habits have a way of staying, well, habitual. Never, never underestimate the power of inertia (something I have to continually re-learn). Inertia can be broken by a massive redirection, or by small shifts in weighting. Circumstances probably dictate which is better: the latter being preferred as less painful, but the former being required when itâs a matter of survival. But both require energy, and here is the crux of my argument: to change your future, stop managing time, and start managing energy.
Pricing Justice
We want to see our customers treated fairly â itâs in our CPA DNA. Somewhere between learning debits and credits, independence, objectivity, and integrity seep into our subconcious. Iâm not quite sure how it happens, but I think itâs what leads to CPAâs being consistently ranked among the most trusted advisors, ahead of doctors, lawyers, and bankers. To be honest, itâs one of the things that attracted me to the profession.
That desire for upright honesty and fairness surfaces in a variety of different ways: the services we provide, the counsel we give, the interactions we have with third-parties on behalf of our customersâŠand, in our approach to pricing.
A Profession In Search of An Identity
What is a CPA?
WellâŠweâre the only ones licensed to perform financial statement audits. The federal government requires it for public companies, and the states issue the licenses. But is this what defines us? Is our identity basically defined by regulatory statute?
âBringing integrity to information.â Thatâs sorta what an auditor does â makes the financial information believable, adds credibility. And even if we donât perform audits, the public turns to us when it wants an honest opinion: when it needs to be objective and independent.
âMaking sense of a changing and complex world.â Thatâs what the CPA Vision Project proposes. I have very deep respect for the folks involved in the project, though this statement sorta leaves me wanting for more. âMaking sense of a changing and complex worldâ feels a little vague, and lacking in a sense of direction to me. I sorta feel like itâs a definition for being âhumanâ: weâre all just trying to make sense of the changing and complex world we live in. But what makes the CPA unique? What do they bring to the table that others donât?