Mike Barber, Office Managing Partner, CohnReznick

Invest: spoke with Mike Barber, office managing partner at advisory, assurance, and tax services firm CohnReznick, about its expansion into Houston, the growing demand for multidisciplinary business advice, and the careful adoption of artificial intelligence. “We’re a people business, and if we don’t take care of our people, then we don’t really have much to go on,” Barber said.

What are the biggest challenges clients are facing, and how is CohnReznick helping them respond?

Houston is not that different from other major metropolitan areas, particularly those across Texas. We see a significant growth opportunity because of the strength of the business environment and the variety of industries operating in the region.

Many of the challenges companies face stem from uncertainty. That includes geopolitical uncertainty, changing capital markets, and fluctuations in major industries. Houston is a significant energy market with many oil and gas-related businesses, so changes in global markets can create concern for companies throughout the region.

We help clients through a broad range of services. We offer traditional audit and tax compliance services, as well as advisory capabilities such as due diligence, accounting support, chief financial officer advisory, initial public offering readiness, and other consulting services.

We saw enough opportunity in Houston that we acquired Ham, Langston & Brezina, effective July 1. That combination expands our reach across Texas and strengthens our ability to serve clients not only from Dallas and Austin, where we already had offices, but also directly in the Houston market.

How does the firm’s multidisciplinary approach help clients solve complex business issues?

Our approach begins with industry expertise. Whether a client operates in oil and gas, financial services, banking, insurance, the nonprofit sector, or another industry, we first look at the business through that industry lens.

We then combine that national industry knowledge with local professionals who understand the client, the market, and the specific challenges the organization is facing. Establishing a larger presence in Houston was important because it allows us to bring our national capabilities directly to companies in the region.

How are you helping organizations adopt artificial intelligence while maintaining strong governance?

We look at artificial intelligence from two perspectives. One of our growing advisory practices helps companies establish AI policies, adopt appropriate tools, and determine how those tools fit within their governance structures.

We are also evaluating and implementing AI internally. We want to empower our people with tools that improve the value and efficiency of the services we provide to clients. However, there is a great deal of governance and due diligence involved. Companies cannot simply adopt the first AI tool they find.

Some tools do not produce accurate results, and professional services firms work with highly sensitive information. We must ensure that the technologies we use are appropriate, secure, and reliable. We are committed to implementing AI tools that, when combined with our industry expertise, accelerate the value we deliver for clients, and we are doing so in a cautious and productive way.

It also requires significant investment. Organizations need to pilot different tools, evaluate how they perform, and determine how they should be implemented. 

How does CohnReznick help clients manage regulatory, cybersecurity, and operational risks?

Those challenges touch several of our practices. 

Cybersecurity is on every company’s mind. If an organization has not yet faced a cybersecurity issue, there is a strong probability that it will, because these incidents are occurring so frequently. We have a dedicated practice that works with companies to address vulnerabilities and mitigate cybersecurity risks.

We also have a significant government contracting consulting practice that helps organizations understand and comply with regulatory requirements. We also have a risk advisory practice focused on identifying and reducing the broader risks associated with operating a business. Our approach is disciplined and based on expertise. We begin by understanding the specific challenge and then bring in the right professionals to address it.

We do not believe in a one-size-fits-all model or in assuming that one team can solve every issue. We want to provide real value by matching the client’s challenge with the appropriate experience and capabilities.

What makes Houston and Texas attractive markets for business investment?

Texas is a business-friendly state. It does not have a state personal income tax, and it generally has fewer regulations that prevent businesses from operating and growing as they would like.

Houston reflects that broader environment. As the mayor said, Houston is open for business, and companies around the country recognize that. The same is true across much of Texas.

Talent is another major factor. Companies need access to a strong workforce, and Houston has a deep talent pool. The city and the state also offer a reasonable cost of living, opportunities for homeownership, and a strong quality of life for families.

When companies evaluate where they can operate in a business-friendly environment and recruit the people they need, Houston and Texas perform well in both areas.

How has the role of the trusted business advisor evolved?

Being a trusted advisor is central to how we evaluate new professionals and potential acquisitions. We are not interested in acquiring every accounting firm we encounter. We are strategic about the organizations we consider because we also want to demonstrate strong organic growth.

The trusted advisor relationship goes beyond preparing a tax return or completing an audit. It means being deeply involved in clients’ industries, answering the client’s call, understanding the issue, and directing the organization toward the right solution for whatever challenge it may be facing.

Our acquisition of Ham, Langston & Brezina reflects that philosophy. Its professionals have developed strong relationships as trusted business advisors and serve clients in a way that closely aligns with how we operate across CohnReznick. That made the firm a strong strategic fit for our expansion into Houston.

How are you attracting and developing the next generation of accounting professionals?

We have to remember that we are a people business. We are not selling widgets or products. Without our people, we cannot serve our clients.

That means providing professionals with opportunities to grow. The expansion of the firm creates those opportunities, and that is just as important in Houston as it is in our other markets. We also need to provide strong benefits, take care of our employees, and give them the right tools to perform their jobs.

Technology is an important part of that equation. One point that is sometimes overlooked in conversations about AI is that many younger professionals want to use these tools. There is concern that technology will replace jobs, but many emerging professionals are not interested in spending their careers performing repetitive, routine tasks.

They want to learn, develop new skills, and use technology to become more efficient and productive. We need to give employees the ability to grow and create a strong culture in which they can build their careers. We’re a people business, and if we don’t take care of our people, then we don’t really have much to go on.

What will have the greatest impact on businesses over the next three to five years?

The biggest question is how effectively will organizations use AI. That applies to manufacturers, oil and gas companies, nonprofits, banks, and nearly every other type of organization.

The issue is not simply how to implement the tools. Companies must determine how to introduce them with the right governance and how to use them in a way that supports profitability. Technology can be expensive, and adopting new tools does not automatically improve a company’s financial performance.

Our role is to maintain a high level of client service while helping organizations evaluate these technologies and operate successfully. AI is a game changer, but companies cannot assume that a tool will provide immediate benefits simply because it is available.

Organizations must be thoughtful. Some companies and professional services firms have already encountered problems because they relied on inaccurate information or used AI tools inappropriately. Businesses need a cautious approach, but they also need to be prepared to move quickly when the right opportunities emerge.

That is a difficult balance. In Houston and across Texas, we want to position CohnReznick as the trusted advisor that can support clients on the compliance side, help them respond to regulatory requirements, and provide advisory services for the broader challenges and opportunities affecting their businesses.

That approach is relevant across Houston’s major industries, including oil and gas, financial institutions, nonprofits, and real estate. Our decision to invest in Houston through a strategic acquisition demonstrates how strongly we view the market’s long-term potential.