no partner candidates? whose fault is that?

8 competencies to develop.

by domenick j. esposito
8 steps to great

as i travel across the country working with small and midsized cpa firms, one of the most common concerns expressed by managing partners and other senior partners at these firms is, “we don’t have a sufficient number of partner candidates who can help perpetuate the firm into the next generation.”

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when i ask the question, “what are you doing to develop the next generation?” i usually hear a lot of lip service and superficial things that, in most cases, don’t add up to a hill of beans.

what firm leadership puts into developing the next generation of leadership is what will come out on the other end. after all, input equals output. partner candidates don’t grow on trees and if your firm isn’t doing very much to develop its youth, then it shouldn’t expect to have an impressive number of partner candidates who have the potential of perpetuating the firm.

“the function of leadership is to produce more leaders, not more followers.”

– ralph nader

there are eight competencies that need to be developed in the next generation if the superstars are to become the future leadership of the firm. it is the responsibility of the managing partner and the other senior partners to give a professional (with the potential of becoming partner) the opportunity exhibiting the following skills and abilities within these eight competencies:

client relationships and client service excellence

demonstrating strong business acumen and judgment
becoming a trusted business advisor so clients seek counsel on multitudes of business matters
developing sustained long-term client relationships by continuously creating business expansion and business referral opportunities
managing client relationships and engagements with the highest level of integrity
providing clients with the highest level of consulting and advisory services
turning client relationships into long-term personal relationships so clients have the perspective of viewing the firm’s services as invaluable

technical capabilities and distinctions

exhibiting and recognized as a “go-to” person for technical competence and quality that is sought internally and externally
developing technical excellence in others
having an acute sense of risk assessment and risk management
staying abreast of industry developments and professional standards
attracting business based on expertise and demonstrating the ability to monetize that expertise

personal attributes

demonstrating integrity in actions. as an example, if faced with a challenge of a serious issue in an engagement in which he/she strongly disagrees with a partner, raising that issue with firm’s management
demonstrating a strong team orientation that recognizes the importance of creating and leading highly effective work teams
instilling a culture of client service excellence
driving others to see the importance of helping their team members to ensure professional development and client service
earning the respect of partners and team members
creating a positive first impression
contributing and/or leading an important firm and/or office and/or practice area initiative
demonstrating a commitment to quality in everything done (including services performed, work products, staff evaluations and leadership commitments)
demonstrating the resilience and agility to operate in dynamic environments
maintaining composure and managing stress during times of intense pressure while successfully managing staff and meeting client delivery expectations

staff development

leading teams and demonstrating effectiveness in mentoring and coaching
attracting great talent and, through sustained development, turning above-average players into “a” players
serving as a role model
being a team player, taking part in firm activities, with a genuine willingness to help out
being recognized as being a part of the “glue” that keeps the firm/office/practice area together

business development

originating new business (brand-new client relationships that are not current clients) of an amount that is established by the firm as a minimum threshold
demonstrating the ability to cross-sell and expand business in a consistent fashion over several years
contributing to or participating in:

o writing articles

o speaking engagements

o networking forums

effectively networking; listening for the opportunity and closing a sale
maintaining a strong network that generates leads and converts those leads into business
sustaining track record of developing new opportunities for the firm
being an active leader in various associations and business groups and regularly attending industry and community meetings
contributing to the growth culture of the firm by prioritizing practice development and communicating this priority to others to help build practice development skills
continually expanding existing client opportunities by cross-selling other services and service providers
being “famous” for introducing other firm resources/expertise to existing client relationships

office leadership/firm management

making a significant contribution to the management of an office or practice area
demonstrating the ability to think strategically, have a big-picture/long view and being instrumental in driving firm strategies
thinking and acting “firm first”
identifying and retaining top talent by championing a performance-driven culture
building rapport with colleagues and staff
consistently striving to increase one’s level of responsibility – not content with the status quo
consistently displaying a high level of integrity that is apparent with interactions with colleagues and staff

communications

possessing strong written and oral communication skills
demonstrating that communication skills are very solid and enable meaningful connections with others through engaging conversational and listening approaches
having strong presentation skills when meeting with clients and/or potential clients
possessing the ability to network with others

administrative responsibilities

adhering to firm administrative policies such as timely client billing and collecting
attending and participating in firm meetings, office and practice area events
responding timely to requests for information, evaluations, billing, time and expense entry, etc.
creating a positive influence in the office

in conclusion

no doubt about it. developing future partners is hard work but it has to be done by the managing partners and other senior partners in small and midsized cpa firms – the owners of the business. it is necessary to give every opportunity to an up-and-coming superstar to develop the competencies referred to above.

it is also important to make sure that the leaders in the firm take partner candidates under their wings. show them the ropes by example. take them out on sales calls. help them develop relationships with influencers of business and get to know them personally. the more “glue” between a partner candidate and the senior partners in the firm, the greater the chance that the potential superstar will develop into one of the leaders who perpetuates the firm into the future.

posted on november 24, 2018

dom esposito

about the author

domenick j. esposito was the ceo of grant thornton, vice-chair of bdo, and national growth director at cohnreznick.

he is the author of "8 steps to great: the eight essential strategies driving success at the world's largest cpa firms. and how to apply the lessons at firms of all sizes," published by 卡塔尔世界杯常规比赛时间.

a life in public accounting

in 2016, esposito, then a former ceo of bdo, moved from a 46-year career in public accounting into the next phase of his professional life – consulting to cpa firms, launching a boutique advisory firm, esposito ceo2ceo, that provides advice to ceos, managing partners and other senior partners of cpa firms focused on the mid-market throughout the u.s.

with the launch, esposito authored “8 steps to great," a guide for ceos, managing partners, and other senior partners on how to move their firm to the next level.

cohnreznick national growth director

esposito was one of the most qualified individuals in the country to advise cpa firms on growth and profitability. through 2015, he was national practice & growth director and an executive board member of cohnreznick, llp, a mid-market sustainable brand and the tenth-largest cpa firm in the united states. he oversaw cohnreznick’s go-to-market industry specialization and consulting and advisory service lines. he was also intimately involved in the firm’s mergers and acquisitions and strategic and tactical activities for its public company and capital markets initiatives. dom joined the predecessor firm of j.h. cohn in 2002 as the chief operating officer and executive board member.

dom was also an independent director of ethan allen interiors inc. for several years (through 2014), dom was a member of the nasdaq listing and qualifications committee to the organization’s board of directors. he formerly served as the leader of the new york state society of cpas committee for large and medium-sized firms practice management. he also was an adjunct accounting professor at c.w. post/long island university.

bdo and grant thornton

through october 2002, dom was vice chairman at bdo, a mid-market sustainable brand and the seventh-largest international accounting and consulting firm in the u.s., with almost 50 offices and 3,400 employees. during his brief time with bdo, he was responsible for the alliance distribution network (at the time consisting of over 80 cpa firms, 10 law firms, and 25 consulting firms). he was also responsible for attracting and servicing a number of clients.

from 1979 through 2001, dom was with grant thornton, another mid-market sustainable brand and the sixth-largest international accounting and consulting firm in the u.s., with over 50 offices and 4,500 employees. he joined grant as an audit manager, became a partner in 1981, led the long island office from 1984 to 1986, became assistant managing partner of the new york office in 1986, and from 1988 to 1999, led the new york office. in 1999, esposito became a regional managing partner and for two years, through 2001, was the firm’s chief executive officer.

cpa, partner, mba, leader, influencer, media celebrity

between 1996 and 1998, and while he was ceo, esposito was on the partner board and was also on the board of grant thornton international – the worldwide umbrella organization. in these capacities, he developed strong experience in strategic thinking and execution, international relationships, corporate governance, partnership matters, branding, expense control, client relationships, and new business development.

as ceo, he took grant thornton to record earnings, consummated the largest line-of-business sale in the firm’s history, developed a major joint venture with axa financial, and made the largest practice acquisition in the firm’s history. from 1969 to 1979, esposito was with price waterhouse (now pwc), servicing ibm when he was promoted to manager in 1976.

dom was a cpa, has been quoted in national and local media, and has appeared on radio and cable tv.

esposito also testified before the securities and exchange commission.

he received his m.b.a. from st. john’s university and his b.s. from ferris state university. accountingtoday, one of the leading trade journals for the accounting profession, named esposito one of the most influential people in the profession for two consecutive years.

he passed away in 2021 at the age of 74.

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