I recently read an article via Accounting Today titled, “Make your firm great again: Raise the bar for new partner admissions” by Dom Esposito.
I agree with Esposito on two points: Growing a successful firm begins with the quality of the partner group. And, too many firms choose partners because of needs as opposed to qualifications.
Back in the late 1990s and the early 2000s, accounting firms made many partners because of the then, war for talent. The partners were afraid that some great technical managers might leave the firm for greener pastures, so they brought them into the partnership.
During the recession that hit in 2008, many firms recognized the weak links in the partner and manager ranks and downsized accordingly. However, I would guess that the majority of local accounting firms have never actually fired a partner.
Of course, being technically competent is the foundation of being a CPA and for becoming a partner in a firm. But, there is so much more needed if you really want your firm to become one of the leading firms in your market.
During the partner selection process, ask yourself:
- Are they technically competent?
- Can they continually bring in a stream of new business to the firm?
We are now in a renewed and serious quest for top talent. Retention is a big issue right now at many firms. Be careful as you consider making new partners.
At my firm, we used a two-year partner-in-training program. It was well-documented and gave the current partners and the partner candidates time to assess each other, as partners.
Be sure your firm has a thorough process for admitting new partners. Most firms continue to be too top heavy.