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Professional services: Planning your firm’s post-COVID-19 future

January 7, 2021 / 4 min read

The COVID-19 crisis has created serious challenges for professional services firms, including gaps in IT infrastructure, liquidity problems, and planning for the future in an uncertain world. Here are our top considerations to advance your position.

As the COVID-19 crisis drove countless businesses to shutter facilities and furlough workers, many professional services firms were able to move staff to home offices and continue existing work in anticipation of a short delay. But as the pandemic drags on, future workplace health concerns and an uncertain economy could cause some of these temporary measures to become permanent.

As firms plan for the future, many are wondering what the “new normal” will look like in a post-COVID-19 environment. Complicated workplace safety guidelines will require expensive updates to facilities at considerable expense. This expense alone is leading some firms to consider a more permanent virtual work environment, which raises urgent business questions concerning the impact to information technology (IT) and cybersecurity infrastructure and associated costs, the uncertainty of short-term cash flow and liquidity, and how to plan for the future.

IT & cybersecurity

If your firm plans to move to a full or partial digital firm model, be sure your IT and cybersecurity infrastructure is up to the new demands. Visibility into operations, both from an applications perspective and a delivery model, will help you make important business decisions. Applications need to be tied back to each other to ensure a comprehensive view of the business, including your project pipeline, the status of billing, and where resources stand on any given project. You must also review your communication infrastructure and whether staff can communicate with clients and each other seamlessly and securely in a remote environment.

Your IT/cybersecurity checklist:

Review cybersecurity and the increased risk posed by a disbursed, remote workforce.

Once you’ve completed your analysis and identified the gaps, determine what investments will be required. Review and prioritize your existing IT project portfolio. Begin by improving processes or better leveraging existing technology. Look for opportunities to defer spending for on-premise technology if your IT strategy is shifting to a software-as-a-service model. Then map out longer-term investments such as consolidation of enterprise applications. Finally, update your budget.

Cash flow & liquidity 

Uncertainty around the future project pipeline has many firms expecting a liquidity crunch as existing work draws to a close. Financial resilience will be critical during the coming months. Now’s the time to preserve cash, review capital investments, and cut costs.

Uncertainty around the future project pipeline has many firms expecting a liquidity crunch as existing work draws to a close.

Your cash flow/liquidity checklist:

Business continuity & growth

If your cash and liquidity position is strong, be ready to jump on new opportunities. Prepare a strategy for both organic growth and expansion into new areas by acquisition. Be sure your integrated technologies and business processes can accommodate the increased demand.

Prior to the COVID-19 crisis, the “war on talent” meant there was strong competition for the best talent. Today, this focus has shifted to having the right people in place for the recovery. If a staffing shortage has kept you from implementing a new business idea, check whether you can expand your pool of expertise now. This may be the time to explore new geographies or lines of business. 

Whether you’re looking to maximize liquidity, resize operations, or add a new line of business, the key to success is unlocking the necessary data in your organization so that you can make wiser decisions and attain better results.

Organizations that make the investments now are more likely to stay ahead of their competitors and continue to advance their position in the future. For help optimizing your professional services firm, give us a call.

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