Firm growth can lead to levels of operational complexity that are costly, inefficient, and unhelpful. Arcane systems accrue over time and initial management and accounting practices become too complicated to clearly read a firm’s financial position. Taking a step back and evaluating administrative and organizational structure can be extremely profitable.
An outdated accounting and reporting system made it difficult to decipher where the firm stood financially. While they had many offices and markets, they had made a commitment to leadership in key market sectors and were developing a good reputation in all 20 cities in which they were located. Their leaders were strong and understood their roles in their matrix-firm model