succession & retirement

making partner: today’s 15 essential skills and traits

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do you have what it takes? bonus: six boxes to check off, and seven tough questions.

by marc rosenberg

what is the right stuff to earn a promotion to partner? this is one of several questions that if asked of ten partners from different firms, you may get ten different answers.

more: why you might want an executive committee | how to specify managing partner duties | when votes must be taken, what are the options? | ownership percentage and capital accounts | 5 key reasons to have a partner agreement

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i have worked the following script dozens of times at partner retreats: i ask the group what it means to be a partner and write their responses on a flipchart. when we’re done, one of the partners yells out “oh no. none of us qualifies!” and because the truth is often said in jest, this retort is no joke.

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the three laws of physics in accounting firm mergers

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pendulum desk toywhat led to the succession crisis? inertia.

by r. peter fontaine

sir isaac newton was truly a genius for the ages. he lived 85 years, worked his way through cambridge, invented calculus, had a seat in parliament, was knighted by queen mary and now rests quietly in a prominent westminster abbey crypt.

more: a lawyer’s guide for spring cleaning your accounting firm | 6 types of due diligence procedures | cultural optimization: making mergers successful | why due diligence is done | what to ponder before issuing a letter of intent | the four ways ‘non-competes’ #fail in the social media age
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while best known for the unsubstantiated tale about a falling apple that led to his theory of gravity, newton’s three laws of motion have withstood the test of time. these principles are remarkably applicable to modern-day accounting firm mergers.
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3 ways firms scare off successors

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man in suit pointing thumb downand 7 steps to making ownership attractive to new leaders.

by terrence e. putney
bridging the gap

buying into a firm as a new owner involves great opportunity, but also significant risk. it is reasonable for ownership candidates to evaluate the potential for professional and financial rewards before taking such a step.

more: sponsorship: barrier to exit for diverse talent | use collaboration technology to improve your firm | 3 ways to keep your team members connected, engaged and energized | growing, developing future leaders is a two-way street | a winning culture is an intentional culture
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therefore, firms must be willing to honestly assess the potential risks and benefits for candidates as they seek to attract new partner-owners who can contribute meaningfully to the firm’s continued success.
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when the inmates are running the asylum

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crazy doesn’t get better by adding more crazy.

by dom cingoranelli

“we can’t really enforce this because we don’t want to risk having him (or her) quit.”

i can’t tell you how many times we hear something to this effect when we talk with cpas. we hear this at small firms and we hear it at large firms. we hear it from partners, from directors, and from managers. it doesn’t matter what size firm they’re in, nor does it matter what level or position they hold.

it’s always the same line. it reminds me of the old adage, “the inmates are running the asylum.” and, it raises the question of who actually is running the firm. who’s in charge?

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the two most common management styles

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senior businessman with his team at officedo cpa firms need management or leadership?

by bill reeb and dominic cingoranelli

let’s start out with a straightforward question. what is the difference between management and leadership?

more on performance management: 8 ways to manage clients | the limitations of rainmakers | firms only grow when partners play their roles | the four basic parts of cpa firm partner agreements | younger partners see succession differently | how to compensate your managing partner | the job of managing partner: empowered or emasculated? | how the best managing partners turn ideas into reality
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from one point of view, leadership is far different than management.
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8 ways to manage clients

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two men shaking hands across a tablethis is job 1 for the practice owner.

by bill reeb and dominic cingoranelli

whether you simply desire to improve your firm’s operations or identify and implement a new long-term strategy, you need to be clear about the role that the owners, partners or shareholders should be playing in your firm.

more on performance management: the limitations of rainmakers | different roles for different partners | how big ‘books’ hurt firms | developing a three-year vision [video] | more merger questions than you imagined | mps: how to elect them … and fire them | partners as role models: the good, bad & ugly | managing the managing partner
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

to be sure, the roles and responsibilities of a cpa firm owner or owners will vary from firm to firm, based on that firm’s needs and circumstances, and you need to adapt any recommendations to fit your firm’s situation.
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the limitations of rainmakers

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young man under rain-covered umbrellawhy marketing has to permeate the firm and the process.

by bill reeb and dominic cingoranelli

for most firms, new business comes in through referral. therefore, the bigger a partner’s client base, the more likely that partner will bring in new business – which simply means that the more clients a partner knows, the more referrals that partner is likely to receive (not in percentage, but in raw numbers).

more on performance management: different roles for different partners | dealing with a-d clients (you know who we mean) | how small ‘books’ hurt firms | why the partner agreement matters | merging for the wrong reasons | how to implement strategy, step by step | accountability requires clear expectations | how retirement issues affect succession planning | how partner ratings factor into equity
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other drivers of referral success are long-standing service (seniority) and position in the firm (such being one of the named or senior partners). in these cases, there is an extended opportunity for referral simply because:
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different roles for different partners

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image of charts in foreground and business partners in backgroundsome people should stick to technical roles, but there’s an impact on profitability.

by bill reeb and dominic cingoranelli

when you are a client relationship partner, regardless of your technical specialty, you take on the role of being that client’s general contractor for professional services – that is, his or her most trusted business advisor.

more on performance management: dealing with a-d clients (you know who we mean) | firms only grow when partners play their roles | the four basic parts of cpa firm partner agreements | younger partners see succession differently | how to compensate your managing partner | the job of managing partner: empowered or emasculated? | how the best managing partners turn ideas into reality
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

if you are unwilling to fulfill this role, then you shouldn’t be a client relationship manager; you should be a technical partner. we define these two roles broadly as follows:
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firms only grow when partners play their roles

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money tree growing in the middle of green meadowhow often are you seeing your clients?

by bill reeb and dominic cingoranelli

whether you simply desire to improve your firm’s operations, or identify and implement a new long-term strategy, you need to be clear about the role that the owner(s), partners or shareholders should be playing in your firm.

more on performance management: how big ‘books’ hurt firms | how small ‘books’ hurt firms | why the partner agreement matters | merging for the wrong reasons | accountability includes partners | 7 succession questions to ignore for now | develop your employees or suffer the consequences
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the roles and responsibilities we’ve suggested are based on the best practices we’ve had the opportunity to observe and be involved with in our work with cpa firms throughout north america.
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how big ‘books’ hurt firms

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young businessman with forehead resting on handsthe invisible hazards of book of business.

by bill reeb and dominic cingoranelli

as we stated in our last column, balancing “book of business” is one of the largest stumbling blocks for cpa firms.

more on performance management: how small ‘books’ hurt firms | the four basic parts of cpa firm partner agreements | younger partners see succession differently | how to compensate your managing partner | the job of managing partner: empowered or emasculated? | how the best managing partners turn ideas into reality | make accountability a process | accountability requires clear expectations | base retirement on today’s operations | how involved should retired owners be? | how to find a partner’s replacement
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

it is difficult to resolve because it is symptomatic, for most firms, of some real trouble brewing.
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how small ‘books’ hurt firms

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businessman sitting at desk, looking forward and smilingleverage, capacity and overservice are just some of the issues.

by bill reeb and dominic cingoranelli

balancing “book of business” is one of the largest stumbling blocks for cpa firms. it is difficult to resolve because it is symptomatic, for most firms, of some real trouble brewing.

more on performance management: the four basic parts of cpa firm partner agreements | developing a three-year vision [video] | mps: how to elect them … and fire them | managing the managing partner | accountability is for everyone | firms say what would change retirement pay | how retirement issues affect succession planning | develop your employees or suffer the consequences | job 1 for the practice owner: client management
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

optimal book size

the optimum condition for firms to flourish is for books of business to be balanced throughout the firm. from the largest book to the smallest, the percentage gap between them should be fairly small (about 20-25 percent or less than a couple hundred thousand in fees).
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when partners leave: what to do today, to be prepared for tomorrow

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man taking medication from caretakerset policies now based on business, not emotion.

by bill reeb and dominic cingoranelli

let’s review departure/termination policies.

more on performance management: the four basic parts of cpa firm partner agreements | developing a three-year vision [video] | mps: how to elect them … and fire them | firms say what would change retirement pay | action plans for transitioning partners | how retirement issues affect succession planning
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

these may include:
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