By Dr. Jessica L. Levin, CMP, CAE

Some trends can be easily dismissed as mere fads. Think about the bad perms of the 1980s, skinny jeans (are they in or out?), or paying $50 for a Stanley drinking cup. While popular for a time, these kinds of hot choices and behaviors fizzle out eventually, leaving us wondering why we ever thought they were a good idea. When it comes to the emphasis on corporate culture – especially within accounting firms – this is no passing fad. It is a foundational shift in mindset with measurable results.

The Difference Between Fad and Evolution

Corporate fads are fleeting. They capture attention, dominate conversations, and then quickly disappear. They’re the Gangnam Style of the business world – fun for a moment, but not something to build your business on. Building a strong corporate culture, however, is not a passing trend. It's a movement that is gaining momentum.

The emphasis on corporate culture, especially within accounting firms, is not a reaction to a business buzzword. It's an acknowledgment of the undeniable value that a strong, positive culture brings to an organization. The growing awareness elevates culture building above fad and brings it to the level of evolution. Culture is fluid, always changing, and evolving.

Why Firm Culture Matters

As companies have faced challenges in attracting and retaining employees, discussions about company culture have gained prominence in recent years. Some argue that this focus is similar to the drive for “open office” layouts. Originally touted as a boon for communication and collaboration, it eventually had the reverse effect of highlighting the importance of privacy. The open office was a buzzword, but, ironically, making decisions about office layouts and thinking about how they affect privacy is an example of firm culture in action. If a firm implements an open floor plan and then receives feedback that people feel uncomfortable, a decision has to be made. The layout can be adjusted to provide more privacy, or executives can ignore the feedback. The reaction to the suggestions reveals a lot about a firm’s culture and how much it values employee experiences. Dismissing firm culture fails to recognize its impact on everything from employee retention to client satisfaction.

Culture isn't just about trendy perks like ping-pong tables in the break room or unlimited snacks in the kitchen. It's about creating an environment where employees feel valued, supported, and aligned with the firm’s values. Of course, for this to work you need to know your core values. Culture looks different at different firms, but those that have successfully retained talent focus on cultivating a workplace where innovation is encouraged, collaboration thrives, and employees' mental and emotional well-being is prioritized.

The Challenge of Cultural Silos

In many firms, the culture may vary significantly between departments, leading to the creation of silos. In these cases, the firm culture may be defined but tools have not been put in place to make sure all leaders agree and understand what the culture looks like in practice. If processes are not in place to communicate a firm’s values, individual departments or teams may develop their own subcultures that do not align with the firm's broader values or goals. These silos can lead to disconnect within the organization, where communication breaks down, collaboration suffers, and employees in different departments feel like they are working in entirely different companies. For instance, the tax department might feel like it’s working at a firm with a high-pressure, deadline-driven culture; the audit team may focus more on collaboration and long-term planning, and feel like they have a strategic culture. Although each department might succeed in its own right, the different cultures create friction when they need to work together, ultimately hindering the firm’s overall performance.

A Lasting Impact

Accounting firms are experiencing a significant transformation. While they used to be viewed as rigid and hierarchical, firms now understand that cultivating a strong, unified culture helps attract and retain top talent. Firms that embrace this realization are positioning themselves for long-term success.

The focus on workplace flexibility is increasingly important, and has become a crucial concept. It's about more than allowing employees to work from home; it's about creating a culture of trust and accountability. It’s about having a flexible mindset while adhering to the firm’s values. This empowers employees not only to balance their professional and personal lives in the way that works best for them, but also to create paths for innovative thinking. This shift is not a temporary trend; it is a fundamental change to how businesses operate and the mindset of their leaders, and it is now an expectation for both employees and clients.

The Pitfalls of a Trend-Driven Culture

Approaching firm culture is more than creating a checklist of popular trends. When firms prioritize surface-level perks without addressing deeper, underlying issues within their culture, they risk creating a disconnected and ultimately ineffective work environment. This is particularly apparent in organizations where different departments have conflicting cultures. Real culture change requires action, dedication, and a commitment to defining core values and using them as a guide in all decision-making.

Including a few trendy buzzwords in a mission statement or implementing a handful of new policies as a veneer is not enough. Firms must engage in meaningful dialogues with their employees, understand their needs and concerns across all departments, and be open to making the necessary changes to establish a genuinely supportive and empowering environment in which people want to work.

Culture as a Catalyst for Success

Building a strong and vibrant firm culture is a crucial element to a successful business strategy. It can drive innovation, improve employee satisfaction, and ultimately improve client outcomes. While the focus on culture may be more noticeable today than it was in the past, this embrace is not temporary – it's a lasting change. This shift is not a passing phase; it's the profession's future. Firms must ensure that their unique culture permeates every corner of their organization to succeed, breaking down silos and creating a unified, a thriving workplace for all.

Dr. Jessica L. Levin, CMP, CAE, is COO and North America regional director with Abacus Worldwide. She can be reached at jessica@abacusworldwide.org.

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^{Statements of fact and opinion are the authors’ responsibility alone and do not imply an opinion on the part of the PICPA's officers or members. The information contained herein does not constitute accounting, legal, or professional advice. For actionable advice, you must engage or consult with a qualified professional.}