2016 2015 2014
4% 1% 1%
5% 2% 1%
Up by 10% or more
Up by 6% - 9%
Up by 1% - 5%
Down by 1% - 5%
Down by 6% - 9%
Down by 10% or more
ahead. Comparing last year’s projections
with this year’s reality is a good place to
start. For the year that just ended, 91 percent
of executives said they experienced real
revenue growth, even higher than the 85
percent that predicted it in last year’s survey.
And 63 percent said that the growth
was higher than 10 percent, a full eight
percentage points higher than the 55 percent
who had forecast double-digit growth for
2015. So, in reality, things were even better
than what firm leaders had forecasted for
2015 at the end of 2014.
As for forecasting 2016, those numbers
are also looking up. Case in point: 97 percent
of executives are forecasting growth, and 90
percent are saying that growth will exceed
6 percent. In 2015 and 2014, those numbers
were 89 percent and 77 percent, respectively.
So, the forecasts and projections of top-line
growth is significant, but does that growth
make it to bottom line? According to our
survey, it sure does.
Some 75 percent of firm leaders reported
improvements to their net profits in 2015. In
2016, a staggering 94 percent of firm leaders
anticipate net profits will improve, while
only 2 percent say they’ll be down this year.
The other 4 percent say they anticipate no
change in net profits. And 55 percent, up
from 51 percent last year, say net profits will
be up more than 10 percent in 2016.
As part of the survey, we asked
participants to rate how concerned they are
about certain internal and external issues.
There, the survey showed even more positive
signs as new client business development and
client retention tops the list.
In previous years, pricing pressures and
sales cycles were top of mind. Meanwhile,
internally, the biggest concerns in 2016 are
setting new strategic goals/direction, staff
morale and voluntary retention. ■
HOW DO YOU ANTICIPATE YOUR FIRM’S NET PROFIT WILL
CHANGE IN 2016?
Consulting® JANUARY 2016 9