Purchasing new technology is no small task. It requires research, vetting, planning and a whole lot of commitment to achieve a positive ROI. And while the profession talks endlessly about the value of operating within an automated, highly efficient and secure cloud platform (and rightly so), few are talking about the psychology behind tech purchases. But they should be. Because it’s a complex one that comes with a fair amount of fear, anxiety and doubt.
So, let’s talk about it. Let’s dig into the psychology behind big tech purchases and explain why it’s time to fear no technology.
When you want answers, speak to an expert: Hello, Roman Kepczyk!
It’s safe to say that most accounting firm decision-makers experience a similar psychological journey when considering new tech—especially when it comes with a bigger price tag and a complex implementation process. Hearing what others go through just might offer you some solace…because the fact is, you’re not alone.
Roman Kepczyk, Director of Firm Technology Strategy at Rightworks, is focused on firm technology and production optimization. He’s also a Lean Six Sigma black belt. Not too shabby…and clearly the right person to provide expert advice.
In a recent episode of The Modern Firm® podcast, Roman offers valuable insights into the top five psychological barriers that often hinder technology purchases and implementation. It’s important to note that these common barriers were identified via analysis of multiple technology consulting calls with Roman and firm leaders.
So, let’s get after it…
Is psychology hindering tech purchases? (Yes.)
The mind can play tricks on you. Hit you with a fair dose of fear and doubt. That’s what happens when you get caught up in complex decision-making—like the purchase of advanced technology platforms and apps. And when doubt and fear inch their way in, it can slow the purchase process to a crawl—sometimes even a complete halt.
Let’s start with a walk-through of the top 5 barriers:
1. Reduced capacity and operational resistance
The complexity of technology decisions in accounting firms varies based on size and structure. In smaller to medium-sized firms, the responsibility often falls on a tax or audit partner who must balance this additional role with their primary duties. Larger firms may have dedicated IT staff or even a CIO, but the ultimate decision still rests with a partner, which brings with it capacity issues.
Roman also notes that IT personnel (and other key decision-makers) are typically rewarded for maintaining network stability. The threat of losing this due to new tech implementation can inadvertently slow down the adoption of new technologies. This creates a tension between the need for innovation and the desire for operational consistency.
2. Cultural resistance
Partners and staff often feel uncomfortable moving away from familiar processes and tools, leading to a broader cultural resistance. This discomfort stems from a fear of losing expertise and the uncertainty associated with new systems. This can quickly lead to blocks in new technology adoption to the point of full abandonment.
3. Loss of operational control
Firm leaders, particularly those responsible for technology decisions, often struggle with the perceived loss of control that comes with adopting new systems. This manifests as a reluctance to change established workflows and a fear of being held accountable if new implementations fail. This can often cause decision-makers to revert to a “let’s just keep working the way we always have” mindset and hinder tech innovation.
4. Fear of disruption
This barrier is closely related to “Loss of operational control” but focuses more on overall productivity. Firm leaders fear the potential for disruption to daily operations. They worry about the impact on productivity during the transition period and whether the new technology will deliver the promised benefits.
5. Risk aversion based on past experiences
Negative experiences with previous technology adoptions can create lasting hesitation. Roman shared a personal anecdote of implementing a data extraction tool that went unused after significant investment, illustrating how such experiences can make decision-makers more risk averse.
How to overcome tech purchasing barriers
To address these challenges, Roman emphasizes how important it is to:
1. Build confidence via peer review
Providing firm leaders with evidence of successful implementations in peer firms can alleviate fears and build confidence in technology decisions. This means reaching out and talking to peer firms who have successfully implemented new tech—focusing on potential pitfalls, lessons learned and wins.
2. Focus on proven tech solutions
This involves looking into “settler” technologies, which are those that have been implemented, tested and proven. Because these solutions have been proven effective in other accounting firms (rather than bleeding-edge innovations), they’re a safer bet and can help alleviate the anxiety of tech adoption.
3. Understand firm-specific needs
Recognizing accounting firms’ unique requirements, such as the critical nature of certain technologies during busy seasons, will help decision-makers select the best-fit solutions.
4. Address security concerns
This requires looking at tech that highlights the importance of robust security measures, especially for smaller firms that may be at higher risk. This is where an established vendor with decades of experience serving the accounting profession comes in. Look for a vendor who has this level of experience and offers solutions with superior support to ensure a frictionless (as possible) implementation process.
5. Gather empirical evidence
Do the work to review concrete data and case studies to support the benefits of new technologies. Going to decision-makers with hard evidence will bolster buy-in and accelerate the tech purchase and implementation process. It will also relieve you of the fear and doubt that comes with the unknown.
Technology purchasing (and the value of external expertise)
Firms without dedicated IT staff and/or specialized knowledge can exacerbate fears surrounding technology adoption. Roman’s role as a consultant often involves bridging this gap by providing the necessary expertise and industry-specific insights that local IT providers and decision-makers may lack.
Roman helps firm leaders understand and proactively address the psychological aspects of new tech purchases. This helps accounting professionals better navigate the complex landscape of digital adoption and transformation more effectively. The key lies in balancing the need for innovation with the very real concerns of those responsible for implementing and using new technologies.
As the accounting profession continues to evolve, firms that successfully overcome these psychological barriers will be better positioned to leverage technology for improved efficiency, security and client service. The insights provided by experts like Roman serve as a valuable guide for those looking to navigate this challenging but essential journey.
It’s time to get out of your head and move forward in the realm of technology purchase and implementation. Talk to your peers, interview vendors, read reviews and assess your firm’s unique technology needs. This will all lead to elevated confidence when looking to build your ideal tech stack. It will also get you closer to fearing no technology!
Want to hear more on the psychology behind technology purchases? Listen to The Modern Firm’s psychology of tech purchases episode today.
