five reasons that leaders fail

do you have these habits of highly ineffective ceos?

by august j. aquila
what makes a great partnership

several years ago there was an interesting article in fortune magazine. it dealt with the topic of why ceos fail. for example, “chainsaw al” dunlap was let go by sunbeam after two years of dismal performance and questionable conduct.

more: what managing partners must be doing | managing partner: the toughest job in the world | eleven things partners must do | do your partners pay their own way? | why partners need written goals | seven keys to becoming an equity partner | how to create firm accountability | eight criteria for partnership | how to achieve partner unity | 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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what do cpa firm managing partners have to learn from corporate america?

the fortune article identified several habits of highly ineffective ceos. are there any that you relate to?

people problems – nearly 50 percent of the ceos cited in the fortune article had people problems. there are a lot of managing partners in cpa firms who have severe people problems but do nothing to change. very few partner groups remove a strong managing partner and hence this issue lingers on. if your firm has a high turnover of partners and key administrative professionals who work with the managing partner, this could be a problem at your firm.

decision gridlock – 41 percent of the ceos suffered from this malaise. how are decisions made in your firm? do partners need to vote on everything? is there just complacency among the partner group?

lifer syndrome – if the current managing partner has been in the position for more than 20 years, it may be time to start thinking about a succession plan. no matter how good someone is, we all get stale doing the same thing year after year. the ultimate mistake of “lifers” is that they believe they know everything.

bad earnings – in the public company arena, this is often a kiss of death. there are cpa firms that continue to suffer from poor performance because of the influence of a powerful managing partner. the buck should stop with the managing partner.

missing in action – only a handful of ceos suffered from this unhealthy habit. sometimes the managing partner hangs on too long and simply retires on the job or starts taking too much time off. leaders always have to lead.

if you see any of these in your firm, it’s time to resolve them. don’t be afraid, the firm will come out stronger.