In times of plenty, it is easy to stick to old habits and not address behaviours that you know should be changed. Why bother, there's loads of work around anyway?
Today, most Professional Services firms are awash with work. However, we also have soaring inflation, conflict in Europe, rising interest rates and uncertain energy supplies. This is not a great cocktail for economic growth. Quite the opposite, and indeed the first signs that the post-2020 M&A party may be coming to an end are appearing. Cross boarder M&A, for example, is down more than 50% Q4-Q1 2022, the largest drop in 15 years while the Bank of England is forecasting a recession this year.
This makes the need for firms to take the steps that are necessary to compete in the post-pandemic, increasingly digital world very urgent.
“How did you go bankrupt?” Bill asked.
“Two ways,” Mike said. “Gradually, then suddenly.”
Ernest Hemingway - The Sun Also Rises.
The first way is the drip of moisture in a house. The second, it's collapse in inevitable bad weather.
It is too late to address a problem when the "suddenly" event occurs so it is imperative that investments are made in advance to prepare a firm for equally inevitable changes in trading environment. In professional services, that primarily means being known as the pre-eminent operators in your sector.