Adamson Advisory


Accounting firms can be crazy places, especially during the months of January through April 15.

As a partner, you find yourself in a constant state of distraction.

  1. This client is important; their work is a top priority.
  2. That client is more important, put them in front of other clients.
  3. You have 4 voicemail messages from this morning, they need attention.
  4. Young Ted has several questions about #2.
  5. Barbara, your admin assistant, called in sick today.
  6. You promised that banker that you would have lunch with her today.
  7. You just went to get coffee and someone put an empty pot back on the burner.
  8. A client just called to ask when their tax return would be ready – See #1.
  9. That new software we are using this year still has some bugs and staff are complaining to you.
  10. The marketing director strongly suggests that you make an appearance at the charitable fundraiser that is scheduled for tonight.
  11. Your spouse has another commitment this coming Saturday and you need to be in the office.
  12. A kind-of-big client just notified you that he is using another firm this year.
  13. You received 8 text messages in just the last two hours! Responses are needed.

As a partner and a leader, you need to focus. Stephen Covey, in his famous book, The Seven Habits of Highly Effective People, told us that Habit 3 is – Put First Things First.

Maybe it time you pulled out the Time Management Matrix Covey provided to help with putting first things first. Find it here.

Maybe it’s time you re-read The Seven Habits.


There Is More To Planning Than Planning

In the accounting profession, partners in public firms spend a lot of time deciding when and where to have their annual planning retreat. Then they begin to search for a facilitator and if they haven’t waited too long into the new year, they are able to book that amazing guy/gal that they have heard so much about.

The date arrives and the five or six partners (maybe more), are excited about discussing the major issues facing the firm. They are good about not getting stuck in the details about day-to-day operations and the ever-evolving drama surrounding personnel issues.

They go through the strategic planning steps, perhaps doing a SWOT analysis. They heed the guidance provided by the facilitator and determine where they should focus for the coming years. They leave the retreat on a high with a two or three-year plan in a rough draft format.

Leaders for each initiative are assigned and, then what?

That’s where I see the following Drucker quote come into play:

“Plans are only good intentions unless they immediately degenerate into hard work.” – Peter Drucker

Discussing, debating and ending with a plan is fun. In many firms, when the hard work appears on the horizon, complacency creeps in and the group ends up talking about the same issues the following year.


Sometimes What Is Obvious Is Ignored

November 12, 2019GaryBest Practices0

Tom Peters has been focusing on business management practices for decades. I enjoy reading his books and his articles and even reviewing his presentations that he makes available online.

One topic that hits true in the CPA profession is what Peters calls, Blinding Flashes of the Obvious (BFO). Here’s one I think applies to many firms:

Blinding Flashes of the Obvious (BFO) #1

If you (RELIGIOUSLY) help people—EVERY SINGLE PERSON, JUNIOR OR SENIOR, LIFER OR TEMP—grow and reach/exceed their perceived potential, then they, in turn, will bust their individual and collective butts to create great experiences for Clients—and the “bottom line” will get fatter and fatter and fatter.


There are many things that we KNOW, but over and over again, we fail to take action, we fail to implement, and/or we procrastinate. When you attended your last CPA management conference, I bet you thought… “I’ve heard all of this stuff before.” But, as OBVIOUS as it is, you haven’t taken any significant action on best practices that you learn.

Dealing With Negative Partners

The following, from Jon Gordon, says so much about life within a partner group in a CPA firm:

“Don’t get mad at the naysayers. Don’t hate the energy vampires. Instead, realize that without them you wouldn’t be as strong. If you never got sick you wouldn’t develop a strong immune system. Negative people make you more resilient, wiser and better.”

In your group, you probably have several positive, inspired, and passionate forward-thinkers, You also probably have a few of the naysayers. I hope that you do become stronger, as a firm, because you have developed a strong immune system.

I follow Jon Gordon on Twitter. I hope you do, too.

Change Means Discomfort – Get Used To It

So many discussions have happened over the years on the topic of change for CPA firms. Most of these discussions have been focused on how to get partners, owners and/or shareholders to change. After all, if employees don’t see their leaders embracing change, why should they? Soon, the status quo becomes a way of life for many firms.

In the last couple of years, you have been saturated with articles, blog posts, webinars, tweets, and presentations stressing that you and your firm must change more rapidly than ever. Are you?

Change means discomfort and people fear discomfort. As leaders, you must push people through the discomfort until it becomes comfortable. And, it will.

Sean Glaze, of Great Results Teambuilding, tell us:

In fact, the first step in dealing with discomfort is fear.

People are first afraid of what makes them uncomfortable.

The second step is when people eventually become willing to experience discomfort.

The third step is when people become comfortable with the discomfort.

The final step is when people are excited by and crave discomfort. This is simply a sign that their zone lines have shifted, and they have established a much larger comfort zone than they previously enjoyed.

I’m not sure CPA partners will actually get excited and crave discomfort, but I do know that partners want what is best for their firm and just might realize that short term pain means long term gain.

Read this helpful article by Glaze, Why Discomfort is the Strongest Catalyst for Team Growth.

Transferring Client Relationships

This is an important area when a partner retires, and it is the one that pays the bills. The annuity revenue stream that we enjoy from our clients is critical and it is the currency that most firms use to pay the unfunded retirement benefits to the retiring partner. You really do have to get this right. 

The client transition plan needs to be orchestrated over at least two years, it needs to be written and it needs to be supervised and managed by the firm’s managing partner. More and more firms are requiring a minimum notice period for early exits, mandatory retirement ages and that the retiring partner work through a specific client transition process with the firm. There is also a trend toward penalties (reduction in retirement benefits) for the retiring partner if clients are lost because of inadequate notice and/or the client transition process developed by the firm is not completed. 

Beyond the above broad parameters, what should the process look like? First, separate the clients into groups based on their ease of transition. This really comes down to two or three factors: the closeness of the retiring partner’s relationship with the client decision maker, the degree of involvement of other people in the firm with that decision maker and the size of the client. The 1040s and small business clients may be as easy as a phone call or a letter introducing the new person. Perhaps personal introductions are all that you will need for others. The larger business clients are more likely to have other staff and partners involved and sometimes may actually be easier than accounts where the partner has been the primary contact. For the close personal relationships, which are always the toughest to transition, you should plan on shadowing through at least two year-end cycles.

Utilize the Basics of Leadership

As a CPA firm owner, I hope you continually read things that will inspire you and educate you. A great source is the online Harvard Business Review. For daily inspiration follow them on Twitter.

During extensive research for the HBR Leadership Handbook, they discovered that the best leaders with the most outsize impact almost always deploy these six classic, fundamental practices:

  1. uniting people around an exciting, aspirational vision;
  2. building a strategy for achieving the vision by making choices about what to do and what not to do;
  3. attracting and developing the best possible talent to implement the strategy;
  4. relentlessly focusing on results in the context of the strategy;
  5. creating ongoing innovation that will help reinvent the vision and strategy; and
  6. “leading yourself”: knowing and growing yourself so that you can most effectively lead others and carry out these practices.

While the leadership development industry is thriving, they found, in its fundamentals, leadership has not changed over the years. It is still about mobilizing people in an organization around common goals to achieve impact, at scale.

Read the article: The Fundamentals of Leadership Still Haven’t Changed.

Touch Base With Clients Now

Summer flew by. Fall was so busy with extended returns. Now it is November.

Fall is prime time for your competitors to approach your valuable clients about switching accounting firms. Hopefully, you are also doing the same. Year-end is approaching and it is the time of year when clients are most likely to make the move to another firm.

How many times have you touched base with your best clients throughout summer and fall? Have you sent them articles relating to their industry? Have you helped educate them about the new tax bill? Have you scheduled their year-end tax planning appointment?

Now is the time to give them a call. Even better, drop by their place of business just to see how they are doing. Every conversation with a current client usually leads to opportunities to provide additional services.

Using A Management Consultant

Old School:

The traditional way a CPA firm finds and uses a management consultant is to ask around and find out the names of consultants that other firms are using or have used. Or, you might identify someone you have heard speak at a management conference then hire them to facilitate your partner retreat.

The firm has budgeted a certain amount for the retreat facilitation and after the retreat, the consultant moves on to other engagements and the firm often does not want to spend the money to have them do follow-up work or assist with implementation and accountability

New School:

Find a consultant that you think fits your firm, based on size, service lines, people needs, partner problems, etc. You find these people by hearing them speak but also by assessing them in relation to their writings, use of social media, and ability to keep pace with current trends in business.

Initially, they will facilitate your retreat or conduct a planning day or two with your partners or management leaders. Then they attend your monthly partner meetings or executive committee meetings (60 to 90 minutes per month via Skype or another virtual resource) to continually contribute and to hold you accountable. The firm budgets an amount for the 2-day planning session and another amount for the 12-month on-going involvement.

Result: You have a much better shot at actually getting things done, at moving your firm ahead, at recruiting and retaining top talent and developing a culture within your firm of continual change and improvement. That’s the culture the new workforce wants to experience.


You Need a New Recruiting and Hiring Leader

Who does the hiring at your firm? In CPA firms, at least in those under fifty people, the recruiting and hiring activities are usually assigned to one particular partner.

Other partners and staff might be involved in various activities and interviews but usually one partner takes the lead. Sometimes, it is an experienced manager who leads these efforts.

I have observed that in many firms, this person has been playing a key role in recruiting for many years. They personally visit the college campus and conduct the formal interviews during the fall recruiting season. Sometimes they draft a manager or senior, who is an alumnus of that institution to accompany them and share the interviewing duties.

This leader also attends campus job fairs and “meet the firms” events. They may also be visible at accounting fraternity events and meetings. They work closely with the firm administrator in organizing many activities that are part of the recruiting efforts. Finally, they probably make the key decision in who receives an offer and who does not.

I want to suggest that you consider replacing this individual with another key person at the firm. I also think it is a good practice to only allow this recruiting leader to be in the role for no more than five years.

Why? Because people tend to hire people just like them. Of course, they do this without even realizing it. Studies have shown us that employers seek out candidates who are not only competent but also culturally similar to themselves.

You need a variety of skill-sets and personalities to build a successful firm. The most successful firms have programs in place to promote diversity within their firm. So, when it comes to a leader for your recruiting efforts – mix it up every so often.