My classes focus on preparing internal controls and audits to emphasize risk management and productivity. But I would also argue that these classes are as much about giving audit firms and finance departments a way to differentiate themselves in the marketplace.
While companies that sell physical goods still face pricing pressure, professional service companies confront a major tipping point in their quest to be unique, and to command premium pricing.
In a discussion I had last month with a local CPA firm partner about his firm's plans, he outlined ambitious goals that had been set for the next five to ten years. When I asked him how those goals would be achieved, he answered that the firm would extend many of its existing audit and tax clients into higher-value services like succession planning and business valuation.
I would argue that this type of growth will also require staying out of the perceived commoditizaton of the firm's core services.
In this age of knowledge sharing --- and information overload -- service firms often can seem outdated. After all, who needs human expertise when smartphone apps and outsourced labor are available?
Savvy service firms will recognize that delivering the right information at the right time has more value than ever, and commands premium pricing. The key is finding the right specialization, for which your company can be the recognized expert, and can qualify for that premium.
Commoditization produces an incredible glut of information, and the real value of service today comes from knowing what is truly important, and acting on it. This is why I focus my own coaching firm, Whiteboard Business Partners, on businesses, like engineering firms and marketing companies, that emphasize creativity and knowledge in what they do.
I truly believe that service companies are more important than ever. The changing workforce, the speed of implementation, and intense cost-focus makes their expertise more valuable.
It's up to those of us who make our living through information and advice to market and position our companies in ways that prove our value. With that approach, we can generate the revenue growth we want for our companies.