The post-Sarbox world, where best practice dictates a greater division of audit and non-audit work, presents challenges for the big four, tier A and mid-tier accountancy firms.

For the big four, who have already suffered from the loss of their consultancy arms and from increasing client willingness to shop around for services, the threat to their position is all too real. With 99% of the FTSE 350 using the big four for audit purposes the potential loss of non-audit work if clients adopt best practice is huge.

In contrast mid-tier firms have benefited from these changes allowing them an opportunity to attack their bigger rivals' core business. Turning those opportunities into real business is the challenge, especially where clients, used to dealing with one of the big four, may have concerns about using smaller organisations they have not worked with before. It is understandable that they may have concerns about mid-tier firms quality or capacity. To lure clients away from other big four suppliers will require high level selling skills and strategies, which not all these firms possess.

No matter what size the firm they all face common challenges, how well these challenges are addressed over the next few years will determine which firms grow and which struggle in the post-Sarbox environment.

Market challenges:

• To win more profitable business in the face of growing competition.
• To retain accounts in a market where clients are increasingly willing to shop around.
• To penetrate new accounts where rival firms have long and well established relationships.
• To sell more non-audit business to non-audit clients.
• To retain margins on products which clients regard as commodities.
• To expand business with existing clients through cross-selling and involving colleagues from other divisions.
• To develop a strategy for managing key accounts.
• To change the attitude of some partners, managers and technical specialists, so that all realise their involvement in proactive selling is crucial to the success of the firm.
• To develop the necessary selling skills to allow professional staff to compete in this new market environment.
• To broaden the number of professional staff who can sell.

From our early interventions in the 1980's with some of the then big eight firms, Huthwaite gained significant insights into the problems of developing an organisational sales focus and individual selling skills, in a profession where selling was often regarded as a dirty word.

We have helped professional staff to understand that selling professional services has no connection with the pushy 'second-hand-car' style of salesmanship and requires a range of consultative skills any top-flight barrister or business consultant would be proud of.

More importantly, we have helped clients to recognise that delivering sales training programmes alone will not produce the level of change needed to bring real improvements in results. We recognise that not all partners and mangers can grow into the sales role, and for those uncomfortable with leading the process there are supporting roles that can prove more productive.

Since those early interventions we have worked with a range of clients in the sector on a broad range of projects, from developing selling and negotiating skills to client relationship management, and making both marketing and pitching for new business more effective.

From this work we believe we are in a strong position to help any accountancy firm to develop the sales focus and selling skills needed to meet the challenges of a rapidly changing market.