making partner: the essential metrics

from mastering business-building skills to people-building skills.

by marc rosenberg

there are many ways to measure the performance of staff on the path to making partner.

more: making partner: what managers need to know | the 17 rules for making partner at a cpa firm | who shouldn’t be a partner? | nine reasons people are promoted to partner | how to make partner?
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as is my style, i will present far more measures than most firms actually use. but i doubt you’ll perceive any of the methods here as unimportant. they are not listed in any particular order of importance.

stellar performance appraisals. this includes oral feedback that is shared among the partners.

masterful management of client responsibility. before staff are considered for partner, they should have been assigned a small client base to manage. this includes performing the work, managing client relationships and attending to all the administrative aspects of engagement management, such as billing, collection and planning.

mastery is evidenced by the following:

  1. clients call the potential partner instead of the prior or originating partner. some clients prefer this.
  2. clients are retained.
  3. the partner potential has moved the firm’s services to clients upscale.
  4. realization targets are achieved. write-offs are at an acceptable level.
  5. projects are delivered on time. billings and collections are timely.
  6. potential partners achieve formal, written goals. all managers should participate in a goal-setting program, just like partners.

skillful management of staff.

  1. staff give the manager strong scores on upward evaluations.
  2. the manager is effective in mentoring staff and giving them timely performance evaluations, as evidenced when staff advance under the partner potential’s tutelage.
  3. the manager exhibits strong supervisory skills, including delegation, training, review of work, timely job-by-job evaluation and accessibility.

business development. potential partners are both active in business development activities and successful in originating business. they demonstrate a healthy, positive attitude toward bringing in business.

technical skills.

  1. the partner potential manages multiple projects at the same time.
  2. when the partner potential’s work is reviewed, minimal changes are required.
  3. the manager works on highly complex matters so that partners delegate these projects confidently.

productivity. achieves the firm’s targeted billable hours at strong levels of realization consistently for many years. productivity also relates to nonbillable activities such as staff management, billing, collection and performance of assigned firmwide projects.

specialization. over time, the partner potential has acquired one or more specialized skills and/or industry expertise and is considered a go-to person in these areas by the firm.

the baseball umpire’s credo: the partner potential is mobile, assertive and loud. he or she speaks up at partner meetings and is influential, assertive and self-confident. the person seeks responsibility.

strong work ethic. the partner potential is willing and able to work extra hours to get the job done, ensuring that clients’ needs and deadlines are met.

how firms create a path to partner

“i think nothing is more important than what a firm does to create partners. i mean from day 1 of someone’s career. or maybe when a person is identified as a star. it’s critical what the firm does to nurture that person so that they become a partner someday.” – harry steindler, partner, michaelsilver (chicago)

here is what the best firms do to create a path to partnership. these practices are not ranked strictly, but items at the top of the list are more common and effective than those toward the bottom. however, all the items are important.

  1. firms maintain a formal mentoring program. keys to effective mentoring programs:
    • there needs to be a firmwide mentoring champion.
    • limit mentors to those who have the skills for it.
    • mentees can choose mentors, but be careful not to overload one mentor with too many protégés.
    • mentors advise staff where they stand in the firm and what they need to do to advance.
    • mentoring meetings should occur at least monthly.
    • mentors should make mentees feel safe.
    • mentors help mentees set goals.
    • mentors are usually not the best people to conduct performance evaluations.
    • mentors should not be assigned permanently.
  1. firms send staff to outside leadership development programs. the better programs convene multiple sessions over a period of time ranging from several months to two or three years.
  2. a huge part of a partner’s job is to develop people. firms must reward what they expect. partners’ compensation should include a meaningful factor for the extent that staff advanced under their tutelage. partners should make clear, impactful contributions to developing and retaining staff.
  3. staff attend high-level client meetings to observe partners’ conduct and style, even if their time is not billable. as much as possible, staff should prepare the agenda and prepare minutes of the meetings.
  4. partners rarely go on sales calls alone. they take staff with them.
  5. early on, identify staff who have star potential. says jennifer wilson of convergencecoaching: “star performers are valuable because they rise above others in initiative, intention and investment. they are driven to seek the next level in their careers. communicate this to the staff and see how interested they are in being on a partner track.”
  6. partners proactively help staff become partners. the stars are given plum assignments and opportunities to work with the firm’s best clients. the firm errs on the side of giving the stars challenging work projects at an early stage in their development. stars get higher salary increases and bonuses than the other staff.

some firms are concerned that giving certain staff star treatment will alienate average or marginal staff. get over it. giving special attention to your above-average staff is far more important than appeasing the ordinary or marginal people. besides, if you compensate the stars the same as the others, it will upset the stars. you can’t win!

treat your stars like partners before they actually become partners. let them lead. keep them engaged. err on the side of promoting them too soon.

  1. adopt the gradual release of responsibility model of training (from jennifer wilson of convergencecoaching). this is particularly effective when a partner or manager is teaching a staffer a complex project. it consists of four steps, in this order:
    • i do/you watch.
    • i do/you help.
    • you do/i help.
    • you do/i watch.
  1. provide long-term training in business development.
  2. give staff responsibility for managing clients. as the staff earn promotions to senior and manager, begin to assign small clients to them to give them the experience of managing engagements and client relationships.
  3. involve them in a formal, written goal-setting program.
  4. encourage staff to pursue niches and specialties.
  5. partner potentials should be educated in the business of public accounting. they should understand how the firm makes money and what holds profitability back. they should understand how cpa firms are managed and what makes them successful and efficient.
  6. assign partner candidates to firm initiatives in service and technical areas.
  7. managers and non-equity partners should attend portions of equity partner meetings and partner retreats.
  8. managers should undergo the same performance appraisal process as partners, with the same criteria for evaluation.