Decision Workshops

CACompete

4/10, but 7/10 if used alongside the "buy" option

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Compete

In this scenario Confidence Accounting gets adopted by small international accountancy firms who want a mechanism to compete with The Big Four, by offering something different and better than they can provide.  If this occurs then they may influence others to follow, such as BDO and Grant Thornton (the number 5 and 6 accountancy companies).  Eventually, fearing loss of market share, the Big Four also adopt the standard.

Dilemmas involved

The dilemmas here are not directly between the companies themselves, but between the companies and their customers.  The situation starts off with a classic "sales" dilemma:

The accountancy firm has to persuade the customer to decide to use Confidence Accounting (and incidentally their company).  To do this they have to articulate benefits to the customer of doing the accounts in this format. This may be difficult, especially as accountants often sell their services on more tangible benefits (such as paying less tax!).  Hence meeting with a pre-primed customer who themselves wants to do it will be a major benefit.

 

If confidence accounting can benefit the accountancy firm, by giving them extra customers, then they will support the initiative.

 

The next danger comes once Confidence Accounting is accepted as a possible way of doing things. This is that powerful rivals (especially the Big Four) will attempt to rubbish Confidence Accounting, leading to this options table. Rival (and perhaps more powerful) firms may attempt to dissuade major customers from adopting this method.  They may be successful.

It is to be hoped that the debate around Confidence Accounting will mean that the rival firms will develop (and attempt to sell) their own Confidence Accounting capability, causing the table to change to that below

Conculsion

Score

Working via the "Compete" route requires Accountancy firms to sell the advantages of Confidence Accounting to their customers, instead of attempting to sell other, often more tangible, benefits. This may be a long shot.  

 

It also risks setting off a backlash from firms that do not use this method. It has to be hoped that this dilemma will be resolved by the rival firms developing their own Confidence Accounting capability

 

However if there was a willing buyer, then other accountancy firms may oppose it and delay its uptake. They need to be persuaded to join the party

Compete01 Compete02 Compete03 Test Mandate Legislate Buy Confidence Accounting Home Key Key Key