Mission Impossible: Finding a Successor for the Managing Partner

Most current Managing Partners of CPA firms will recall the opening scene of the TV series, Mission Impossible, when the members of the IMF were routinely selected to serve in a particular mission. They accepted the challenge with no questions asked. In contrast, it is easy to picture super talented partners in today’s CPA firms who would be the pick to succeed their current managing partner, but for various reasons, they choose not to fulfill the mission.  Finding the successor for the Managing Partner is a modern day mission impossible in many firms. In order to recruit the right candidates for this most important mission, Managing Partners need to take a hard look at their current performance model and then take a tactical approach starting with three key elements:

Leverage - Managing Partners need to expand the authority of others and narrow their own role

Accounting firms traditionally service their clients by maximizing leverage and delegation, but when it comes to firm management, these techniques are not readily applied. An administrative team with people who have the right titles and job descriptions is not enough. The Firm Administrator, Office Manager, Controller, CFO, Marketing Director and HR Director must be empowered to do a full job and not just be support personnel to the Managing Partner. Now more than ever you need to get your money’s worth from your administrative leaders. The firm’s economic commitment to administrative professionals requires you to maximize the decision-making role of the administrative group and to hold them accountable. Partners that you are considering to be worthy of your seat are accustomed to delegating to their team and holding the individuals accountable. Live by the same standards you set for your partners and make leverage and empowering a routine part of your performance model. Potential successors are leery to come into a world that operates differently from what they are comfortable with and believe in. 

Productivity – Managing Partners must be more client-centric 

Servicing clients is the golden rule at CPA firms. Charge hours and realization are key elements for successful engagement management, yet there are no comparable barometers for firm management. Most managing partners will tell you that the firm and its partners are their “client”, but would anybody really be comfortable with only one client. Managing Partners must experience the client service model just like the other partners, not only because it gives them common ground with the other partners, but additionally because they need to understand their product and be a role model for high level client service. Future managing partners will be uncomfortable relinquishing client responsibility for many sound reasons - not the least of which is personal economic protection. The current managing partner needs to demonstrate that there can be a productive balance and that having a multitude of clients is the right model. The managing partner should have practical standards for their productivity hours that are part of their performance review. They should be evaluated no differently than the rest of their partners who need to perform against a standard and be accountable for their variances. The successor candidates have developed a strong affinity for client service and you need to show them that level of service can, and should, be maintained.

Connectivity – Managing Partners must be relationship driven within their firms

CPA firms are made up of people.  In order to manage the firm properly, interfacing and connecting with people is critical. Managing partners have become very comfortable focusing on issues and initiatives that often distance them from the socialization and camaraderie that nurtures positive interpersonal relationships. The right candidates to succeed the managing partner will be people oriented and vested in existing relationships with their peers and associates. Authority may be enticing to some candidates, but the elimination of relationships will be a major deterrent. Managing partners must continue to be connected to the community within their organization. Mingling frequently with the partners purely for social purposes - as contrasted with conferring on business priorities - needs to be an active element of a managing partner’s routine. Conducting jovial and informal conversation with employees must be common. Managing partners must be human - that means they are connected and approachable. Candidates for succession will be prone to a collegial approach and are likely to prefer a limited tour as managing partner. Life after serving as a managing partner will be more difficult if relationships are cast aside while serving. Current managing partners should start to enhance relationships so they can be comfortable after they step down, be even better at their job and pave the way for their successor to be comfortable.

The life of a managing partner may not draw the same kind of interest of a hit TV show but it need not be the kind of production that discourages the right people from auditioning. Your mission is to make the life of a managing partner a comfortable reality. To help you tune your firm to a bandwidth that promotes a successful Managing Partner transition, we offer a customized program called Managing Partner on Call. We look forward to sharing our approach with you and to working together on a successful mission.

Asset Protection For Accountants

Mention asset protection to many CPAs and their expertise starts to flow freely, but talk about the asset protection measures they have implemented for their firms, and the conversation does not reflect expertise at all. CPA firms have two dominant asset categories – clients and personnel. The quality of these assets will vary from firm to firm - but they are the key power sources. Competitive forces are impacting client loyalty and heightening fee pressure. Economic tensions within firms and at home are setting the stage for personnel unrest and turmoil. CPA firms need to protect their most important assets, and the sooner the better. The course of action takes much discipline and effort. Here are a few ways to jump-start the process:

Activate Your Clients

Knowledge is a business treasure. Your clients turn to you for your knowledge and you should be turning to them for their knowledge as well. Start out with two key steps to tap into this valuable asset:

• Create Client Advisory Boards so your clients can help you evaluate marketing, strategic, administrative and industry oriented initiatives. The boards should be of a functional size and should meet anywhere from twice to three times a year at a minimum. Agendas for the meetings should be circulated in advance and minutes should be distributed at their conclusion. These boards should be managed in a business-like manner with leadership from both clients and the firm at the helm.
  
• Establish a Client Academy to mentor staff, clients and prospective clients on entrepreneurial excellence. The academy can encompass programs as simple as a buddy system for fellow entrepreneurs along with periodic coaching of personnel or more structured programs of intervention and education. Many firms find that starting an academy internally with a “meet the client" series is the right way to launch. In this setting, the clients tell their story and the audience is engaged with questions for the speaker. Typically, after a few presentations a coaching program will unfold.
  

Activating your clients is all about allowing them to experience how much you respect and value them. The more you allow them to play a role, the more loyal and committed they are to you - and of course, the more secure your relationship becomes, the more protected your assets will be.

Engage Your Personnel

The talent of your personnel is not just for the clients’ benefit - it is for the welfare of the entire organization. Begin to engage your personnel with the following procedures:

• Task forces composed of all kinds of personnel including partners are extremely useful and productive. These committees can address many different types of issues including but not limited to social media, technology, paperless processing, client communications, client appreciation, staff evaluations, merger integration and job management. Each task force needs to be charged with a specific responsibility and delivery date.
• Staff retreats are perfect forums for the summer. These programs should be all about educating the employees about firm news and facts and promoting employee involvement in creating initiatives for enhancing the success of the firm.  
• Round table conversations on specific topics should take place with a presentation to the entire group after the individual tables have talked. These events require an outside facilitator and bring strong results when the owners are invited to hear all the findings at the end of the day. Go back to basics and use the old fashion suggestion box – today penmanship is not a revealing factor as we can all use the computer. Ideas and complaints need to be heard and addressed.
  

The more that personnel feel vested and involved in the firm, the more they will be committed to it. Commitment, respect and communication are vital to insure a strong connection to your personnel and to secure sound relationships.

The engagement ideas that are outlined above, if handled properly, will deliver the kind of security that is in the best interest of the firm and it’s personnel. There are many more actions steps that should be a part of your asset protection plan. Asset protection for an accounting firm should be an ongoing process and not a disaster recovery program. We at Optimum Strategies are here to help you successfully enhance your most valuable asset…your firm! Feel free to turn to us at your convenience. We are proud to be a 24/7 organization.