Since the start of the pandemic in particular, a wave of digitalisation has been sweeping through tax practice firms. However, anyone who dares to look beyond the hype will quickly realise that many firms are stuck in their day-to-day routines. In which direction should the firm develop? What do the first steps towards that look like? Many tax professionals simply do not have the time to address such questions. Consultant and presenter Sebastian Thalhammer is an expert in business storytelling – in other words, brand building and brand positioning. He highlights how important it is for a tax practice to develop a distinct profile. At the same time, he explains the steps, methods and tools that can be used to achieve this goal.
Sebastian Thalhammer is joining us live from Stroheim in Upper Austria, about 25 km west of Linz. Sebastian founded the Digital Transformation Institute, which examines the impact of digital transformation on societies and organisations, with a particular focus on tax advisers. He is also the owner of Firestorm Digital. The company offers brand strategies and storytelling services for tax consultancy firms, amongst others. Furthermore, Sebastian is certified digitalisation consultant.
Martin’s first question to Sebastian is: What influence does brand strategy have on matters of digitalisation? To put it more simply: What does a company’s brand strategy have to do with digitalisation? Brand strategy refers to the direction in which a brand is intended to develop. For example: What do we, as a law firm, want to stand for? What areas of specialisation and what values do we offer? Sebastian replies that many people mistakenly try to put the cart before the horse when it comes to digitalisation. Instead of first drawing up a strategy, they look for software solutions and the like.
Being a generalist is a thing of the past; specialisation is the future
So, before a law firm gets bogged down in the nitty-gritty, Sebastian asks clear questions: What do you want to achieve? What is the company’s or brand’s strategy? Who are you here for? What value do you want to deliver? And how do you want to be perceived in the market? It usually turns out that the firm has not given the subject of brand strategy any thought at all up to this point. Cases and mandates are simply taken on as they arise. However, as there are all sorts of different clients, a law firm cannot find a digitalisation solution that suits everything and everyone.
Tax practice firms must ask themselves where they want to be in the next 15 to 20 years. After all, clients are also evolving, and there is nothing anyone can do to stop that. They know what tax practice firms can, should, or even must deliver these days. Once a tax consultancy has committed to a strategy, the appropriate digital tools and processes can be selected and implemented. A brand strategy or a vision helps a firm stay on course. Specialisations can relate to specific sectors, but also to types of business or other common characteristics.
Storytelling means communicating messages in a way that is easy to understand
Martin’s second question for Sebastian: What does a tax adviser do with storytelling? To put it simply: What is storytelling and how can tax advisers benefit from it? Sebastian sees it this way: Tax advisers are constantly busy conveying complex information to their clients. This often fails because the information isn’t presented in the best possible way. Sebastian’s primary concern here isn’t clients, as there is currently no shortage of them. He is focusing on staff and job applicants, as there has been a massive shortage of them for some time now. In this regard, firms need to give much more thought to the strategies they can use to attract, convince and retain applicants.
According to Sebastian’s experience, tax advisers come across as rather matter-of-fact when they talk about their firms. With the right storytelling, this can be changed. Without a clear point of differentiation, every tax firm will be lost in the sea of information that surrounds us every day. Most firms promise the same things, offer the same services and communicate in the same way. On the other hand, there’s a talented individual sitting in a tax firm somewhere who’s looking to move on. They go online, compare websites and find the same boring drivel everywhere. Your firm might be the best fit for that person, but nobody realises it. Sebastian’s brilliant example highlights just how vital clear positioning is for firms. Storytelling ensures you stand out from the crowd and become visible.
Digitalisation helps tackle staff shortages in two ways
A tax adviser from Germany told Sebastian that she hadn’t received a single application for her practice for two years. She said she could no longer afford to be there for everyone. Sebastian sees it exactly the same way. Practices with up to ten or fifteen staff in particular will struggle to survive without specialisation. How are firms in any sector supposed to be able to answer every tax-related question down to the last detail? Tax law is constantly changing, everywhere. The capacity alone is not sufficient to cater for all sectors and types of business. On the other hand, this means that specialisation and the parallel digitalisation of a firm can help to alleviate staff shortages to offset this through process optimisation.
Martin’s third question: What do tax advisers need to bear in mind in order to attract the right staff? In other words: How do tax advisers and tax firms reach the right candidates? Sebastian sees the main problem, first and foremost, as the rather lacklustre image of the profession. Many outsiders view tax consultancy as a dry field of work – boring and outdated. The fact that there are now high demands in terms of digital skills, agility and consultancy has not got through to the wider public at all. In addition, there are many people who have already worked in a large firm but were literally burnt out there. These individuals have absolutely no idea that tax consultancy can look very different indeed.
Authenticity is essential, but it must also resonate with people
Sebastian considers financial incentives to be the wrong approach. After all, this means entering into a bidding war. The law firm that offers the most wins. That cannot be the solution. A law firm’s values are far more important. Instead of showering new staff with benefits, the focus should be on providing a well-rounded overall package. This includes benefits that show appreciation and are meaningful, as well as processes, a motivating environment, exciting tasks, and so on. One of the most common reasons why staff leave law firms is a lack of prospects. Ideally, storytelling succeeds in winning over potential staff by making them feel part of the firm’s journey.
However, storytelling only works if the foundation is authentic. If you simply build a castle in the air without looking at the foundations, you won’t be able to retain a skilled employee in the long run. In a workshop with a law firm, Sebastian simply described what the firm does. This outside perspective led to the realisation that it actually is quite a cool place.
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