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.
- This client is important; their work is a top priority.
- That client is more important, put them in front of other clients.
- You have 4 voicemail messages from this morning, they need attention.
- Young Ted has several questions about #2.
- Barbara, your admin assistant, called in sick today.
- You promised that banker that you would have lunch with her today.
- You just went to get coffee and someone put an empty pot back on the burner.
- A client just called to ask when their tax return would be ready – See #1.
- That new software we are using this year still has some bugs and staff are complaining to you.
- The marketing director strongly suggests that you make an appearance at the charitable fundraiser that is scheduled for tonight.
- Your spouse has another commitment this coming Saturday and you need to be in the office.
- A kind-of-big client just notified you that he is using another firm this year.
- 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.
I was recently re-reading some of David Maister’s material. In his book, Managing the Professional Service Firm. A story he tells about being sought out to give a keynote at an in-house event made me wonder how many firms (and the people within them) are living the firm’s published values.
Here’s the passage:
Most of the calls I receive about speaking to in-house company events are from companies that want a speech that is entertaining, informative, stimulating, or motivating. What they don’t seem to want is anything that specifically addresses the way they run their firms or the real-world changes they are really trying to make.
For example, I recently received an inquiry asking me to convey to the audience the importance of living up to the organization’s “sacred values” (including the need for collaboration). They wanted me to be inspiring.
However, when I asked if I could poll the audience as to how well the organization was currently performing on collaboration and what the current barriers to collaboration were, the organizers were terrified at the potential for disruption. I was not hired for that speech.
Here’s a link to an online article by Maister on the same topic.
I urge partners not to continue living in a world of denial when it comes to serious issues they must address. This applies to a serious issue in many firms, the need to “out-place” a partner.
One of the biggest challenges for managing partners, other partners, and firm administrators is to figure out how to design a partner compensation system that is effective, yet fair.
I hope you will join me on Wednesday as I discuss the most common compensation systems in use today and provide my perspective as a former managing partner of a top 200 firm. I will help you determine what is right for your firm and how a firm evolves from one system to the next as it grows. I will also give you some tips on setting up a performance-based system in your firm and how to align your compensation system to your firm’s strategic plan.
Wednesday – – September 4, 2019 – 1:00 to 1:50pm ET
The webinar is in conjunction with CPA Leadership Institute and is free to members. Become a member for only $49 and have access to all webinars.
Click here for more information and to register.
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.
Inside CPA firms, we usually call the person holding the highest leadership position the Managing Partner. Have you considered if that title, in your firm, truly fits the position? Maybe you need to be a Leading Partner rather than a Managing Partner.
There is a big difference between managing and leading. When you think about your role at the firm, do you lead or manage? Maybe you don’t do a good job of either one.
Make sure your managers are managing and enlist all partners to be better leaders. Truthfully, most of your partners are managers or followers, not actually leaders.
Many CPA firm leaders become focused on doing what other firms are doing. Partners, COOs, firm administrators, IT managers and marketing directors go to conferences where they can learn something we call best practices. Then they return and try to convince the entire partner group to embrace these best practices.
The role of the Leader is not about copying from others. It is about identifying a direction for the firm, specific to your firm. That can’t happen if you are imitating someone else’s best practice. You are not leading, you are following.
Successful leaders create value and drive the firm toward something new. Many managing partners fall back on the usual solutions or quick fixes. They are reactive rather than proactive.
Leading Partners study their own firm, listen to everyone, and spend time simply thinking. They read extensively and not just tax and audit updates – they read current events and a wide variety of books and novels. Reading sparks ideas. So does listening to podcasts.
Leave the managing to your COO/Practice Manager. As of today, become the LP (leading partner) of your firm.
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.
Have you heard the term “ear to the ground” lately? I haven’t heard it used much in recent times. I believe that it is something that managing partners and others inside a public accounting firm need to practice, keeping their ear to the ground.
It means: To be or try to be well informed about current trends and opinions.
Partners, managers and supervisors, you have to practice keeping your ear to the ground relating to both employees and clients. It is important for CPAs to develop the ability to skillfully listen and it has been written about numerous times. Yet a majority of CPAs in public practice will openly tell you that they have never had any sort of listening training.
Often, you want to impress a subordinate or a client with the high-level of knowledge you have developed over the years you have worked in the accounting profession. So, you talk and talk and at times almost brag.
You want employees to realize that you are knowledgeable and experienced so that they can trust your comments and opinions. You want clients to realize all the wonderful things you can do for them and how you and your firm are highly-trained accountants and very experienced business advisors. So, you talk more than you listen.
Try to listen more intently and always keep your ear to the ground.
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:
- uniting people around an exciting, aspirational vision;
- building a strategy for achieving the vision by making choices about what to do and what not to do;
- attracting and developing the best possible talent to implement the strategy;
- relentlessly focusing on results in the context of the strategy;
- creating ongoing innovation that will help reinvent the vision and strategy; and
- “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.
“Steady as she goes” is something you might have heard growing up. We don’t hear the term used much any longer. Steady as she goes is an order for a helmsman to keep a ship’s current course.
I think it also applies to CPA firm leadership. During my many years inside a CPA firm and consulting with many other CPA firms, I have seen many interesting styles of leadership from managing partners.
Some managing partners are dictators, benevolent dictators, collaborators, delegators, know-it-alls, consensus builders, and even radicals. Some are very strong and some are wimps.
When it is time to appoint a new managing partner, beware of inconsistency and go with steady and dependable. I remember one firm that had a choice of two partners to take the role of managing partner as the current managing partner moved into retirement.
One was a great rainmaker, very involved in the community and great at client service. He was always quick to take action; however, he could be described as hot and cold. You never knew which personality you would be dealing with on any given day.
The other candidate had similar positive characteristics but he was steady, consistent and dependable. He was always easy to talk to and sought out feedback from everyone in the firm. He was confident but careful. He demonstrated the same demeanor day in and day out.
I guess you know which one was selected to be the firm’s next managing partner.
I don’t know how to put this in a softer way but, way too many CPA partners think they know it all.
I don’t mean to be harsh or disrespectful. Experienced CPA partners do know a lot. They have spent years developing their technical skills. Many have become true experts in a specific niche or discipline. Often, they discount their vast knowledge by not charging fees that are appropriate for their exceptional expertise.
However, when you mention Emotional Intelligence (EQ), they are in the dark. In working with many partner groups over the years, I have found that usually, but not always, the managing partner demonstrates more traits of EQ than the other partners. That is probably why the managing partner was elected managing partner.
Emotional Intelligence is a term created by two researchers – Peter Salavoy and John Mayer – and popularized by Daniel Goleman in his 1996 book of the same name.
Some define it as the ability to:
- Recognize, understand and manage our own emotions
- Recognize, understand and influence the emotions of others
This means being aware that emotions can drive our behavior and impact people (positively and negatively), and learning how to manage those emotions – both our own and others – especially when we are under pressure.
According to TalentSmart, 90% of top performers have high EQ. EQ is responsible for 58% of your job performance and people with high EQ make $29,000 more annually than their low EQ counterparts. Maybe it is time to provide some EQ education and training to all your staff.