plus five ways that don’t work.
by august j. aquila
what makes a great partnership
i have worked with many firms in helping them build team unity, especially when the firm is undergoing a change in managing partner, merging or just trying to implement its strategic plan.
more: five questions to ask your partners about accountability | how you can get partners to change | the seven building blocks of a great partnership
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everyone knows that partner unity is one of the keys for overall success and sustainability. and, we know the benefits of having greater partner unity than the next firm – better client service, less employee turnover, superior profitability.
the problem that many firms face is this – they don’t know how to create partner unity. it’s not something that is forced on the partners. partners are strong-willed individuals and don’t really like to be told what to do. there is more than one way to create partner unity. i want to provide you with a process that will get you started.
first, let’s define what partner unity is not.
- all partners are not clones of each other.
- all partners do not have the same skill sets.
- all partners are not at the same stage of their career and personal lives.
- all partners do not agree 100 percent on how the firm should be managed.
- all partners are not “best” friends.
i’m sure you can add several additional bullet points to the above list.
now, let’s define what unity is.
- agreement on the firm’s mission, vision and core values
- genuine openness with one another – authentic trust
- willingness to engage in passionate debate of ideas
- holding each other accountable
- focusing on accomplishing key firm objectives by working together
creating partner unity
management programs – such as the balanced scorecard, pay for performance and strategic planning – don’t create partner unity by themselves. they can certainly help manage and direct the firm, align compensation with firm goals and allow partners to grow personally and professionally in the firm. at the end of the day, it’s all about the people. while you don’t want to completely forget about these programs, you will want to focus on getting your partners aligned and developing partner unity.
based on my experience with accounting and other professional services firms, i have found the following to be the five most common errors that firms make when trying to create a culture of accountability.
- let’s make it into a checklist. one thing you can count on – accountants love checklists. it seems that a checklist is the answer to all our problems.
- just create a list of obligations. if we just outline what people have to do, they will do it. don’t we wish it could be that simple? what about individual determination and will to change?
- capture more production information. this trap assumes that accountability is all about production – charge and billable hours, realization, book of business, etc. the way to make people accountable is by having more reports.
- tinker with the compensation formula. this will surely change behavior, won’t it? all we have to do is threaten some of the partners. this thinking implies that paying more or less to individual partners will make them accountable.
- no clear framework. builders know that you can’t construct a strong building unless you have a solid foundation and framework. the same applies to accounting firms. if the firm has no vision, mission, standards of performance, performance management system, structure, policies or systems, how can it expect to have a culture of accountability?
each one of these traps ignores the real meaning of accountability – “the obligation to accept responsibility or to account for one’s actions.”
what does culture have to do with it?
think of a continuum. at the left end is a culture of non-accountability and at the right a culture of accountability. a firm will occupy a specific spot along the continuum.
the further to the right the more you have a culture of accountability and the more the firm benefits. at the next partners’ meeting, ask your partners these questions:
- how would you explain the way we do things around here?
- what are our standards for behavior?
- do we act as lone rangers or are we part of a team?
- what shared goals do we have?
- what shared values do we have?
- how aligned are we as a group?
- what behaviors do we accept that are harmful to the firm’s success?
- what behaviors do we exhibit that are important to the firm’s success?
building the culture
accountability is an overused word in the profession today. everyone will tell you that partners need to be accountable, but they don’t tell you what that means or how to get it. for firms with partner unity, accountability is easy to achieve.
for these firms accountability means that any and all partners are willing to call their peers out on performance or behavioral issues that are hurting the team. it’s the team that holds each other accountable. partner goals are known by every partner and progress reports are issued quarterly. in this environment, underperformers feel pressure to improve.
a culture of accountability does not just happen. you need to build it!
there are seven building blocks that form the foundation and the framework for building this culture. they are shown in the following exhibit:
- trust. as i have said before, partnerships have to start with trust. without it there can never be a productive and efficient partnership or solid relationship.
- strong strategic leadership. the foundation of any organization is its strategic vision, mission and core values. firms will not embrace these concepts unless the strategic leadership comes from the top.
- does the firm have a clear, compelling and realistic mission and vision?
- are our decisions based on achieving your mission and vision?
- performance culture. this is all about getting things done – execution. most firms don’t have a performance culture. high-performance firms achieve what they say they are going to do.
- do we regularly and rigorously evaluate the right measures?
- do we take prompt and corrective action in response to the performance information?
- do we reduce barriers to higher levels of performance?
- do we generate new and better ways of doing things and approach challenges creatively?
- clearly defined authority and responsibility. are the responsibilities and authority of each stakeholder clearly stated and understood throughout the organization?
- are partner roles and responsibilities clearly defined?
- are expectations clearly set with each partner?
- are individual partner goals aligned with the firm’s strategic vision?
- does the firm tie partner performance to compensation?
- embedded core values. many firms have core values and most partners and team members can’t remember them or know what they stand for. an embedded core value is one that is an integral part of the firm’s dna. it’s not just a word on a page.
- are our core values defined?
- do we have specific examples of how each one is lived?
- do we evaluate each individual on how well they live the core values?
- do we reward those who live the core values?
if you don’t evaluate and reward people for living the core values, then they are probably not embedded in your culture.
- transparency. an organization with transparency is free from pretense or deceit. if partners are to achieve more together than by themselves they must create an open environment with one another. you know your firm has this when partners openly ask each other for help, they admit their mistakes and they focus on important issues not politics, and look forward to working together as a group.
- do owners clearly have the best interests of others in mind?
- is the information we provide clear, consistent, truthful, relevant and thorough?
- do we disseminate the right information to the appropriate stakeholders?
- do we do what we say we are going to do?
- shared ownership. shared ownership is closely tied to the first building block – strategic leadership. it’s almost impossible to have a shared ownership if you have no clearly stated mission, vision and core values. shared ownership implies that you have something in common with each other. partners are in business to achieve more together than they could by themselves. that’s why partner unity begins with having a real mission, vision and core values that are lived in the firm. a mission tells everyone why the firm exists (and it’s not to be the best firm in the marketplace). vision lets owners and staff know where the firm is headed and what it means to them when it arrives there. core values identify specific behaviors that are acceptable in the firm. in short, your partners and staff understand not only what they have to do, but also why they do it.
- do we hold the same beliefs when it comes to client service, employee growth and learning, etc.?
- do owners call out others when they are not living up to our common beliefs?
- have each of our partners bought into what they have clearly and specifically promised to achieve?
- engaged owners. if you had to take a passion test in your firm, how passionate are your partners about the practice? engaged owners are passionate owners. they have a certain fire in their bellies about the business.
- does our engagement of critical stakeholders inspire passion and motivate commitment to the organization?
- what percent of our partners are truly passionate about the practice?
building a culture of accountability – partner questionnaire
what is accountability?
why is it important in any professional services firm?
what is working in your firm in regard to accountability? what are the results that you see?
what is not working in your firm in regard to accountability? what are the signs or symptoms that you see?
where do you think you can have the greatest impact on improving accountability? (circle one or more.)
trust
strategic leadership
embedded core values
shared vision/mission
partner standards
performance
culture change
what would you do?
additional thoughts/notes/action items: