Charles Darwin’s dictum about survival depending on our ability to adapt is truer than ever, argues Kevin Phillips.
Darwin originally wrote about adapting from generation to generation, but in the midst of today’s digital revolution, it feels like you need to adapt from month to month and day to day.
Look at the taxi industry and Uber. Retail and Amazon. Publishing and Facebook. Hotels and Airbnb.
Frighteningly, even these examples are dating. Amazon has already gone full circle and is expanding its bricks and mortar presence, armed with everything it has learnt about consumer behaviour in the digital world.
Uber and its drivers are still figuring out their working relationship, but Dubai has announced it is launching driverless drone taxis this year.
So where does that leave us, the accountants? We’re typically the bastions of caution and risk-aversion in any company. Wielding the double-entry bookkeeping system for the last several centuries, we have, for the most part, kept businesses honest and solvent.
But now even the double-entry system is being questioned in the world of blockchain and other decentralised, shared digital ledger systems.
The same thing applies to accountants, I’m afraid. Adapt or die. But bear in mind that adapting doesn't mean throwing out the baby with the bathwater. Adapting means understanding what needs to change in order to continue delivering value to your clients and your organisation.
Look at Darwin’s finches on the Galapagos Islands. Within one generation they evolved larger and stronger beaks to find food during a prolonged drought. The birds adapted fast to their current reality by optimising a function rather than replacing it all together.
Accountants need to look ahead and start shifting their position today — we are already seeing the impact of some of the changes brought about by digitisation. As with the introduction of the internal combustion engine at the start of the previous century, there will be winners and losers. The “horseless cart” put an industry built around horse-drawn vehicles out of business, but enabled the growth of entirely new businesses to support the automobile.
The same is happening today.
My advice? Step away from the spreadsheets, literally and figuratively. Step out of the shadows and reconnect with your colleagues at the coal face. They are the ones who know where the changes are coming from, can see the impact of these changes, especially the opportunities.
Open up the accounting process and empower your colleagues to collaborate with you. By doing so you’ll ensure they have access to the numbers that reflect their experiences – which will inform and add value to your analysis of the numbers. This gives you an accurate picture, and creates buy-in around planning processes or better understanding of the variances when you look at the actuals.
You’ll stay connected and relevant, and by decentralising some of the accounting functions, you’ll free up your own time to be more strategic and adaptable.
With the world changing so fast, the old rules no longer work, but the new rules haven’t yet been developed! This makes finance’s custodial role more difficult but even more important than ever before. Stay adaptable and you’ll be able to guide your clients and organisation ethically and prosperously through these opaque days; don’t and you will be one of Darwin’s casualties.
About Kevin Phillips
Kevin is the founder and CEO of idu Software. He has degrees in Commerce and Accounting, and started idu with partners James Smith and Wayne Claassen in 1998. Kevin is fast becoming a thought leader in his field, and makes regular comment in the media about current affairs affecting business, as well as accounting, finance, budgeting and software. He is a columnist for Accountancy South Africa and Tech Leader, and has been featured in Sunday Times, Business Day, Enterprise Risk, Succeed and Entrepreneur. He is also a guest speaker on Radio 702, Kaya FM and Summit TV.
Established in 1998, IDU was created by accountants and financial systems specialists to deliver smart software solutions for budgeting and financial reporting across all standard ERP and financial systems. The flagship product, idu-Concept, is specifically designed to overcome issues that get in the way of effective budgeting, forecasting and reporting.