bob bunting on leadership: four crucial ideas

what you need to know to make your firm more effective.

what are today’s best leadership strategies? join the study; get the answers.

by rick telberg/at large

in these treacherous and tumultuous times, the difference between winners and losers – survivors and casualties — may well hinge on the qualities of leadership.

some firms and finance organizations are already falling by the wayside. others are clearly gaining new and powerful competitive advantages that could last for years. some will flourish; some will perish.

but how do you navigate this transformational era? and how do you insure your own success and survival?

we took our questions to bob bunting (pictured), one of the profession’s most respected authorities on leadership.

in his 22 years as president and chairman of moss adams, bob is credited with building the firm from a local boutique into an international powerhouse. he was 2004-2005 chair of the aicpa and next month becomes president of the international federation of accountants. last week, he and david m. walker, former u.s. comptroller general and now vocal campaigner for federal fiscal responsibility, each received the aicpa’s gold medal award for distinguished service.

bob gave us at least four new clues to successful strategies in leadership:

1. the foremost job of a leader is to create new leadership.

a managing partner’s major role is to create leadership.  ralph nader has said, “the major role of leaders is to create other leaders.” but i would say: the major role of leaders is to create leadership. that means everyone in leadership, whether it’s your tax director, a niche practice leader, whatever.  you must create leadership so everyone working for you has more leverage. you can’t do everything yourself.

2. the most successful cpa firms and finance organizations of the future will flex with the needs and aspirations of the changing workforce.

you have to keep people in the firms so they can develop.  they will come in young, go through child-rearing years, both male and female; they will take timeouts; they will want to slow down, will want to work part-time. they want flex.  the only way firms will get the leaders they need is if they make flex happen.  i believe you will see it in a significant way in firms.  you’ll see the most profound effect in the rapid acceleration of women leaders in firms — women who successfully were able to spend more time on child rearing and the firm allowed them to do that.  a lot of them will have developed tremendous skills to lead.  i am absolutely convinced. and i see more and more evidence that firms are making that work.

3. leadership must be earned, re-earned and regularly rebalanced based on accountability.

talking about partner performance, a lot of firms still have an antiquated notion of ownership.  say you have an old-time partner who owns own a lot of the firm, and a lot his compensation is based on ownership, then he might be kicking back and not particularly accountable.  the younger partners are looking at the fixed ownership that that older partner has, and they know they can’t improve their position until he leaves. so they don’t feel particularly accountable either.  when you have a system with fixed ownership percentages, then you also have problems getting accountability.

4. the good news is: leadership can be learned.

i’ve seen all kinds of people be successful leaders.  i think it’s a function of the culture and expectations of the firm, and how well they execute on those expectations.  if they have a very strong cultural belief in succession, then it will happen.  if they just talk about it — because they are worried that they have older partners who will go away some day — then it won’t happen.  there must be a willingness among the leadership to make cultural shifts and to create a cultural environment where people transition into a kind of leadership that’s about building people and building capability. it’s about professional “familyhood” where, instead of just feeling like owners, they feel like stewards.

with baby boomer cpa partners and executives retiring in record numbers in coming years, many firms and finance organizations are facing the same succession crisis — a looming shortage of ready, willing and able leaders to take the profession to the next generation. it’s an approaching storm that just suddenly got a lot closer and a lot more real with the global financial crisis. if the profession ever needed smart, courageous leaders, it is now.

learn today’s best leadership strategies: join the study; get the answers.

comments: rants, raves, questions or ideas? contact rick telberg.

acknowdledgements: this interview was conducted by jean caragher of capstone marketing as part of a joint research project between capstone marketing and bay street group llc.

copyright 2008 卡塔尔世界杯常规比赛时间/bsg llc. all rights reserved. first published by the aicpa.

posted on october 27, 2008