DISQUS

AccMan TalkBack: How to kill innovation

  • RisingSunofNihon · 3 years ago
    I completely agree with your thoughts here. You're right about these quick "technology fixes" killing innovation... That's clearly not the way firms should proceed these days. I like your wiki idea too... would be interesting to see more companies implement that type of communication model.
  • Neil McIntyre · 3 years ago
    I would love for my firm to implement a blog or wiki on our intranet.

    Being able to cut down on "office spam" would be an immediate benefit.

    Being able to quickly and efficiently share and discuss firm policies is sorely needed, and I'll bet not just in my firm.
  • Malcolm McLelland · 3 years ago
    Very nicely put, Dennis. In my experience (yes, I actually have some in these regards!) many larger accounting/consulting firms would like to develop "best practices" knowledge bases to coordinate across geographically-distant offices ... and the natural solution seems to be a blog/wiki. The problem, as you suggest, is that partner buy-in is difficult and staff don't necessarily see the benefit.

    One wonders, Why not? In my experience, partners are often more interested in simply using technology to exert top-down control over practice methods used by staff. Why? Mainly because they're smart, hard-working, highly experienced professionals, who take all the risk and get so very little return for their blood, sweat, and tears. In contrast the staff are remarkably devoid of any such attributes. So the partners aren't going to waste their time reading blog/wiki entries about, or reviewing work done using, so-called "better practice methods". Isn't there a lawyer to lunch and a golf ball to be hit for the greater profit?

    Is such a (sarcastic) hypothesis too extreme? Probably not; at least not from the perspective of many partners. I have about 14 years direct experience in public accounting and much evidence consistent with said (sarcastic) hypothesis; and by "much" I mean I could tell stories for hours. In all fairness, the partners I've in mind would say, I'm the buyer and the staff are sellers, and the customer is always right! Now there's an excellent way to kill innovation.

    Staff quickly do the calculus to get their optimal solution: Shut up, get to work (billing hours), and do what you're told (the same as it ever was ...).

    What's the solution? I think one of the great success stories of managerial economics is the idea that if you want to effect *any* kind of substantial organizational change, then three things have to change at the same time: (1) reassign decision-making authority to those with the information to make good decisions, (2) redesign performance evaluation systems to measure the quality of the decisions, and (3) redesign the compensation system to reward people for making good decisions. Of course, the big rub is getting partners' agreement on the definition of "good decisions".

    Maybe my experiences in public accounting are a bit unique, but I'm pretty sure most accounting firms aren't even thinking about making, measuring, and rewarding good decisions. (We all know there's plenty of evidence consistent with this hypothesis!) So as you suggest, Dennis, if they fix their broken businesses through steps (1), (2), and (3) perhaps they can move into the modern era and actually communicate via blog/wiki.