A recent article in the Journal of Accountancy, written by Anita Dennis, notes that technological transformation means change, and change can be unsettling. After several years of disruption in their work lives, many employees seem to be suffering from change fatigue. When Gartner surveyed workers in 2016, 74% were willing to support organizational change. By late 2022, that number had plummeted to 38%.

Firms need to carefully plan and execute changes in their audit technology if they want to effectively implement transformational change. According to Dennis, here’s what to pay attention to in change management.

Create and Communicate a Clear Vision: Audit technology transformation is about making a significant difference not only in what software a firm uses but also in how audits are performed. Creating and communicating a clear vision for such a significant transformation is critical to success. This vision will inform the firm’s strategic plans and clarify what change will mean to all firm members.

Highlight the Benefits That Change Offers: Communication is important before, during, and after any change process, according to Sara Watson, CPA, director, A&A Professional Standards Group, FORVIS LLP. That’s especially true because both staff and firm leaders may drag their feet on implementing change if they don’t fully understand how it will benefit them or their work. As a result, in introducing the idea of audit technology transformation, it’s important to articulate “what’s in it for me,” Watson said. For example, while firm leaders may worry about upfront costs, they may be more accepting if they understand technology can offer various advantages.

Determine Which Technology Suits the Firm Best: CPAs can gain some perspective by reaching out to fellow practitioners whom they know through their state societies or networking groups for insights on the tools they use and their experiences with them. Software vendors can also provide information, answer questions and offer demonstrations of their products, which can help firms quickly narrow the field. Any platform should be able to integrate well with the firm’s existing technology, whether the firm will be using an add-on service or tool from an existing provider or a new tool that plugs into that technology.

Give Employees a Say in Change Management: Two of the most important choices firms can make in the change management process are appointing a champion for the project and giving employees a say in key decisions related to the project.

Prepare For Obstacles: There are typically inefficiencies involved in adopting new software, so firms should prepare their people for the inevitable bumps in the road. Firms will be positioned to gain support for change (and overcome opposition to it) if they start with committed management buy-in, clear communication on the timeline and goals, and a solid case for change based on the benefits for all involved.

Part of the conversation should include the risk of not changing, so that firm members fully understand that there are consequences of sticking with the “same as last year.”

For the next stage, Watson suggested that, as part of the attempt to be inclusive, the firm should include in the planning those who are least likely to appreciate the change. “If you get those naysayers involved, they will feel they have a stake in the plan,” she said, and the firm can identify and address pain points early.

Firms may also want to be proactive and add change agility to their list of desired attributes in prospective new hires to ensure that their people can adapt well to new developments, as Watson said her firm is doing. “The pace of change is not going to slow down,” she said.

For more, see Managing change in audit technology transformation - Journal of Accountancy.

.