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
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.
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.
In the CPA profession, we talk a lot about delegation. Usually, my conversation with partners is about how to get better at delegating. So many CPAs are very poor delegators.
Today, I want to address the multitudes of you (staff, managers, admin) who are receiving delegation. I recently read a very helpful article provided by MindTools. One of The Five Ways to Deal With Delegation is No. 2 – Check The Facts.
Check The Facts:
Give yourself the best chance of success by gathering from your manager as much information about the task as you can. He may lead the delegation process, but you’ll be able to balance your and your boss’s needs by asking him questions such as:
- What exactly is the task? What’s its purpose and value?
- Why are you asking me and not another colleague? Do I have the most relevant skills, or the most time available? Do I need training or resources?
- When does it need to be done by? Is the deadline realistic or flexible?
- Who else has an interest in, or influence over, the task? Who do I need to involve or inform? (Influence maps and stakeholder analysis can be useful tools here.)
- How would you like to manage and monitor this task? How often, or at what stages, and in what format, would you like me to update you about my progress? Also, how much freedom to make decisions do I have?
- Which of my existing work should I “park” to free up the time and resources that I need to complete this new task?
The answers will give both you and your manager a clearer understanding of what’s expected. And you’ll know whether you can accept the request outright or if you need to agree a compromise.
Those of you delegating, be sure you can supply the answers to all of these questions. Read the entire article to learn about No. 1, 3, 4 and 5.
The informative article also gives you tips on how to say “No” when necessary.
If you are struggling with staff retention and other human resources issues, maybe it is time to be more proactive and listen to your own people. Many successful and progressive CPA firm have established a Staff Advisory Board or a Team Advisory Council.
The advisory board is formed to assist the CEO or Managing Partner in leading the firm to future success. It can be defined as a group of employees who meet on a consistent basis to provide support and constructive feedback to firm leadership.
A common structure is to have team members serve for a specified term. In some firms, they are elected by the entire staff and in other firms they are appointed because of their mature perspective and past performance. The members should represent all levels within the firm and the size of the group should be kept relatively small.
In some firms, it has become a very sought-after and prestigious role. The advantage for the members is that they have the opportunity to work directly with the firm CEO on important topics for the firm. They get to know the leader on a more personal basis and have the opportunity to better understand firm operations.
A staff advisory board, comprised of engaged and knowledgeable members can be a real asset when deciding upon HR issues or possible changes to employee benefits.
It is important for the managing partner to meet with the group on a regular basis. Once a month is a common practice but it should not be any less than quarterly. Most importantly, the managing partner and other firm leaders must be willing to listen to the feedback and take action based upon some of the feedback that is received.
Some larger firms even have sub-committees under the advisory board banner. One to focus on salary/benefits, one for morale and maybe one for performance feedback.
Many young accountants working in public accounting have a strong desire to work their way up the ladder and become a partner someday.
There are a few problems with this scenario. First of all, “someday” is not nearly descriptive enough for young accountants just beginning their career.
Most non-partner accountants have no clue what they have to do to become a partner nor what they must do once they become a partner. Even worse, many current partners in accounting firm really don’t have a clear understanding of what is expected of them, even if they have been a partner for years.
You have heard it and read it many times, people entering the profession of public accounting want to know what their career path looks like, beginning on day one. They want to know what the next level, and all the levels after that, look like and how long does it take at each level.
I have observed that many firms have realized they need to document the career path process at their firm for their new hires. But, what about the current partner group?
I remember, several years ago, listening to Sam Allred of Upstream Academy describe a few things that CPA firm partners need to do:
Give up The Right to Remain Silent – When you become a partner, you must speak up at THE meeting (the partner meeting). It is not acceptable to nod your head and then go door-to-door after the meeting talking to the other partners. Not speaking up, in the proper forum, creates artificial harmony.
Keep an Open Mind – I relate this one to the 7 Habits, “seek first to understand and then be understood.”
You Give Up the Right to Make All Decisions – Sole-practitioners have this right. When you make the decision to be part of A FIRM, you give up that right.
Learn to Make the Proper Commitment – Saying/thinking, “I will stay out of the way” is not making commitment. It’s a case of “grudging compliance” vs. “spirited commitment.”
Willingness to Get Outside Your Comfort Zone – You cannot stand still. Becoming partner doesn’t mean you “made it” and now you can coast.
You Become a Leader for Change, Not an Anchor – You are helping row the boat, not sitting in the back and throwing out anchors when something doesn’t go your way.
Inside every accounting firm there is a naysayer. It’s the person who denies, refuses, opposes, or is skeptical or cynical about almost everything. It is the person who says, “we can’t do that.” Maybe your firm has more than one of these types. They always seem to see the glass half empty.
In progressive, well-managed firms, firms with strong, rich cultures, you will find people having conversations about the firm that are positive. Conversations that move the firm forward.
In these firms with positive cultures, when someone whines and says, “Nothing good is happening here,” someone else will often say, “Oh, what about the additional holiday they added last year?” or “Didn’t you just get assigned to one of the firm’s top five clients?” Negativity is diplomatically discouraged. And, if something truly negative is happening, management deals with it immediately.
Sometimes there are negative conversations and even less-than-tasteful jokes about some of the firm’s clients. Of course, you also discourage these kinds of comments. However, be aware and be realistic. Do some of your clients need to go elsewhere?
In firms that get it, you will find people who are keeping the vision alive. The vision lives in the conversations inside the firm. These positive conversations about the firm and the firm’s clients will help the firm grow and prosper.
Promote your positive culture by hosting a lunch & learn and ask your team members to identify positive things about your firm. Discuss them and then enlist your team in talking more about the positives on a daily basis.
Also, do the same exercise focusing on negatives at another lunch and learn session. Once the negatives are aired, select one or two and promise the team that management will address them.
It’s that time of year again. You and your team members are beginning to dread the time when you have to deal with certain clients. In the CPA profession, we call them D-level clients.
Maybe some of the following descriptions might apply to those clients you dread:
- Fred, the owner of XYZ Excavating, is always last minute when it comes to providing you information to complete his tax return.
- Betty, the owner of ABC Resort On The Lake, is rude, always complaining, requesting you to do some task but doesn’t want to pay for it. She thinks everything she asks is part of the tax preparation service you provide.
- Barney is the pompous, solo-attorney (and old friend of one of your partners) who walks on the edge of actually harassing your female staff members.
- Ted is the owner of three fast food franchise stores and has to be continually hounded to pay your invoices.
These are “D” level clients and need to be outplaced. In our busy world, time is so valuable and these clients waste your time. Take steps to finally get rid of clients that no longer fit your ideal client profile.
For years, I have heard partner groups discuss these types of clients. Some even designed a process to out-place them. Then, these same partners never followed through.
Times are changing and I am hearing more and more stories from managing partners that their firm is actually eliminating D-level clients from their client list. It makes their staff very happy.
Develop criteria for identifying D-level clients and then carry out the task. Of course, it should be done in a professional manner but don’t procrastinate once the decision is made.
Your winter interns will be arriving soon. I hope that you have attracted some bright, eager beginners. Many of the most successful firms now hire from their pool of interns. Monitor their progress and be sure to make offers to the best ones immediately after the internship ends.
In the accounting profession, CPA firms have been trying to implement unique and creative ways to attract talent for many years. The game is becoming more and more competitive.
Many unique tactics are being used as companies, big and small, try to differentiate themselves in the eyes of talented business students.
CPA firms need to keep pace and develop ways to up their game. Here are some examples via Fortune – The crazy things companies are doing to recruit business school students.
–At recruiting events, General Mills offers students goggles to see a virtual reality tour of the company’s Minnesota campus. The recruits can see everything from the company gym to the executive offices.
–Goldman Sachs is using Snapchat to recruit college students.
–PwC is offering to pay back student loans for its junior employees. (Your firm could do this. The amount would be up to you.)
–General Motors recently parked cars on the campus of Michigan’s Ross School of Business and invited students to take a test drive. Of course, they brought Camaros and Corvettes.
–On Indiana University’s Kelley School of Business campus PwC furnished an ice cream truck. On the University of Michigan campus, they provided a coffee truck (free coffee anytime for all students).
–Land O’ Lakes brought their CEO to campus. It helps students see that they have access to leaders. (Take your partners to campus, not just younger alumni.)
Advice from career services directors:
This generation of students is seeking more connection with their potential employers and the missions of those companies. Today’s students want to be connected with the company’s mission and vision. Have you clearly defined the vision of your accounting firm? I find many firms have not. The partners are not united on where they are going.
The days of attracting top students by passing out cheap stuff – like post-it notes, water bottles, pens, backpacks, lip balm, etc. are over.
If you haven’t had a partner planning retreat this year, you are not alone. Many firms procrastinate when it comes to planning this annual session.
Often when I am talking with a managing partner about their upcoming retreat, they tell me, “We used to have them every year but we haven’t had a planning retreat for several years now.” It seems everyone is too busy or other firm initiatives or challenges have taken precedence. If you allow this to happen, partner communication will suffer greatly along with partner unity. It also leads to a culture of constantly putting out fires.
Even though it is late in the year, I urge you to schedule and conduct a partner planning retreat this year. There is still time to identify important issues and begin on an action plan even though November is quickly approaching.
More importantly, I urge you to plan ahead for next year – 2017. Here are some ideas, tips, and considerations for a successful retreat:
Identify dates in late April, May or June for your 2017 retreat. Make sure that every partner makes it a high priority on their calendar now. A retreat that happens earlier in the year allows time for the initiatives to be researched, outlined and completed before another year rolls around.
Contact a qualified CPA firm management consultant to facilitate the retreat and get the dates booked on their calendar (their calendars fill up fast after April 15).
Before the retreat contemplate, discuss and define the purpose of the retreat. If you get together every year just because you have always done it without a specific purpose in mind, time (and money) will be wasted.
Plan the agenda. It will be your roadmap for the retreat and prohibit people from getting “lost” along the way. The facilitator will usually survey your group or do telephone interviews to gain insight that will help you design the agenda.
Adopt a partner retreat commitment statement. This is a short list of rules and regulations governing retreat behavior. Some examples might be that all participants will set aside the uninterrupted time (mobile device activity only happens at breaks), participants will stay on topic, participants will not interrupt when someone else is speaking, etc.
Document the action steps. Focus on fewer initiatives and shorter timeframes. Change is happening so quickly in our profession. Accomplishing two or three things is more important than focusing on six or seven and accomplishing none.
Assign a champion for each initiative. Someone has to be responsible and take ownership. If everyone is responsible, nothing will happen.
The most important activity is not the actual retreat; it is the implementation of the agreed-upon initiatives.
We are seeing a transition right now. More and more firms are finally making the switch from the long-time, baby boomer managing partner to a younger, less experienced managing partner.
It is a very difficult time for both of the people involved, and the firm, in general.
The outgoing MP struggles with relevancy and a long list of other important decisions about what to do with their remaining working years. But don’t ignore the challenges being faced by the new guy/gal.
One thing to remember is, as the managing partner of a growing, profitable firm, it is important to always be thinking of how you are spending your time.
One dilemma the new managing partner faces is how much time to continue to spend on client work and how much time do they really need to devote to actually managing the firm.
The MP should definitely keep a reasonable amount of client service work. How much varies. Much of this decision relates to the size of the firm.
Smaller firms require less management time and the MP should utilize a qualified office manager. Midsize and larger firms, of course, should have a professional firm administrator or COO who handles all administration and daily operations so that the managing partner can focus on coaching the other partners, being the community face and voice of the firm, and bringing new business to the firm.
For all firm partners, it is important to always focus on the important work. For line partners that means client relationships, nurturing team members and bringing new business to the firm.
Partners should not be doing manager work. Managers should not be doing senior and staff work. And, seniors and staff should not be looking for work.