Adopting growth strategies - Atlanta Business Chronicle:

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While cutting costs, the firms also are focused ongrowingt revenue, even more challenging givem today’s economy. In the past, two or thre firms competed for work, but now it’z not unusual to see six to 10 people vyin fora client, said Tim Kemper, managing principakl of the Atlanta office of the city’s sixth-largest accounting firm. “Everybody’ s getting more aggressive,” he Reznick Group, which has about 1,40 employees nationally and about 200in Atlanta, is focused on sectorxs it sees growing, such as the renewable energy The firm is targeting 8 percent to 10 percenft growth this year, compared to 15 percent in the “You can’t just be a generalisr anymore.
You’ve got to create that reputation in those niche industries,” he said. Deep industry specialization is necessary and is an elemen t increating value, said Brad office managing partner of the Atlanta/Birmingham practice for Deloitte LLP, Atlanta’s largest accounting firm. “You don’t have the luxury of sending generalists inthe field,” he said. “Ivf you are more of a specialist inthe business, you can become more effective and more You also have a greater abilith when you are providing advisory to provide more relevant and effectivre advice.” Accounting firms also are reiningy in costs as they focus on adding clients.
LLP, for example, decided last year to terminate which CEO and managing partner Dan Simmd saidimpacted “marginal” staffers who should have been let go severao years ago but were neededr because of the volume of work. “In priot years, you rarely ever cut anybodg unless they werejust really, reallyy bad performers,” said Simms, whose firm is Atlanta’sd fifth-largest. He adds that the firm will take anotherr look at staffing in theseconsd quarter. Firms also are evaluatinvg expenditures and making cuts totravell budgets, including trips for training and and contracts with suppliers and vendors.
“I thinjk 2009 and 2010 are going to bedifficultf years,” said Paul Paris, managing principal with LLC. “Youi have to manage your busineszsvery closely.” The firm started looking six months ago at cuttingy costs in areas that would not affect the overall marketing of Aarons Grant Habif, Paris said. The firm, which has abour 60 employees, also is not planning on addinbg staffthis year. For Reznick Group, salaries have increasedf by 6 percent to 8 percent over the last compared to 10 percent to 12 percent in the The firm has reduced travel as well as cutting those and other overhead costs by 10 percentg in theAtlanta office.
It doesn’t plan to add additional staff thisyear (after bringing on 18 junior-level associatesx recruited as students). Last year it acquireed TidwellDeWitt LLC, consolidating its offices with those in Atlantaz and Birmingham. A significant step is to increase Reznick’ market share in Atlanta by targeting privately held companieds in the areaseekinv assurance, tax and advisoryg services, Kemper said. Most of the business has come from outsidewof Atlanta. “Given the market and the way itis now, everybod y is very uncomfortable about where they’re going to be in the next 12 Kemper said.
“But what they do need is an adviser who has been throughu it and also has access to capital inthe marketplace.” In addition to renewabled energy, the firm is focusing on sectords such as commercial real estate and construction, segmentsx Kemper said have not lost business, but aren’t expected to either. Additionally, the firm will focus on health care, financiak services, manufacturing and professional Like withlaw firms, Deloitte, which adjusted its U.S. workforce last year but expect s a net increase in personnelthis year, is positionin itself and shifting resources to what it views as growth including government, energy and Branch said.
Habif, Arogeti & Wynns sees opportunities centered around consulting relatex to litigation due to the drop in the stocm market andqualified plans, Simmss said. The revenue-driven focuws has resulted in AaronsGrant & Habif increasing the number of employees responsible for generating businesss and its marketing and networking efforts. “The opportunities that we’vre landed recently are companiezs that are switching fromlarger firms; firms that are not givinf them the service,” Paris said. “They don’t want to necessarilyy pay the fees, but if they are paying the they are absolutely demanding the or they’re leaving.
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