The Intersection of Performance & Culture: How to Evaluate What's Next
When I founded Thomson Consulting, the concept of finding The Intersection of Performance and Culture was pivotal. Now, five years later, as we navigate the significant evolutions within the accounting profession, it is still just as important. However, disruptions within the profession have us looking at it in a different context. Five years ago, we weren't talking about private equity owning CPA firms, or how AI and technology impacts the profession. Things like outsourcing and process improvements exist on a much different level than they did in the past. These, among other changes, have reshaped what it means to maintain this balance.
The Evolving Landscape
When I published my article on this topic in 2021, I emphasized the fact that culture and performance are never mutually exclusive. And that still rings true today. However, things have changed, and firms may need to reevaluate how they find that balance. It's no longer as simple as finding that perfect intersection in the middle; it's about finding the appropriate place that meets both the cultural prerogatives of a firm now while also meeting the demands of a firm of the future.
The conversation around private equity serves as a prime example of how we view the intersection of performance and culture today. I often have conversations with firm leaders about private equity, and they often express concerns that private equity ownership might dilute their firm's culture.
Then why are we having these conversations? Because the economics of private equity are very compelling.
Looking Ahead Through a Strategic Lens
I am still having conversations with firms about the intersection of performance and culture, but in a different way. Five years ago, we were talking about the culture within the firm while focusing on being profitable. Now, we are testing if we are living up to our commitment to our people. As firms explore private equity, ESOPs, or M&A, they need to determine what is right for their firm both from a cultural perspective and a business perspective.
The Path Forward
As we look to the future, the intersection of performance and culture remains a dynamic space. It will continue to evolve, presenting new challenges and opportunities for strategic alignment. I, and my team at Thomson Consulting are committed to guiding firms through these complexities, ensuring that their strategic objectives and cultural values are not just aligned but are also driving their success in this ever-changing landscape.
If you're contemplating the future direction of your firm and how best to balance performance and cultural objectives, please reach out to me. I am here to help ensure your firm is not just prepared for the future but is thriving in it.