the partnership

if you don’t eat what you kill, what do you eat?

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credit: telberg photo

clearing up confusion over partner compensation in the one-firm concept. bonus: the four phases of goal-setting.

by bill reeb

we are picking up this column with the goal-setting process. after we have this discussion we can move to the next phase, which is reviewing how we would evaluate the actual performance outlined below, and how that performance assessment would impact pay, assuming the firm was on budget, over budget, or under budget.

more: 3 ways to emphasize the one-firm concept | 8 steps for a successful change process | building competency on every level | change happens: how to master it.
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accountability for partners

for partners, accountability is best described as having a system in place that rewards partners for following processes and procedures, living up to their roles and responsibilities, and implementing the firm’s strategy. and on the other side, it provides sanctions when partners don’t do the above.
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3 ways to emphasize the one-firm concept

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large rocks in road… and 8 likely obstacles.

by bill reeb

in the past, we’ve written a multi-part series on partner compensation that started out discussing the following:

  1. the eat what you kill (ewyk) model of operations and how that impacts partner compensation
  2. the most common criteria used in ewyk partner compensation formulas
  3. the building a village (bav), or one-firm concept, model of operations and why partner voting has to be addressed to clear the way for changing partner compensation
  4. addressing the retirement issue and separating it from partner compensation so that you are finally positioned to create a bav partner compensation model

more bill reeb: 8 steps for a successful change process | building competency on every level | change happens: how to master it.
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based on our experience, these are all issues that need to be discussed and addressed before a firm will make the decision to move from an ewyk to a bav compensation system.
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why governing by partner ownership is bound to fail

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5 major issues that firm agreements must address.

by marc rosenberg
the rosenberg practice management library

getting sick and tired of ownership percentage driving your partner decisions?

i sure am.

more: 6 ways to retain nextgen staff | how to develop a truly progressive nextgen culture | the top 5 concerns of great managing partners | partners: when to speak up and when to shut up
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why? imagine you entered into an ownership position in a cpa firm in your mid-30s. over the next 30 years or so, you’ll be paid your share of millions of dollars. do you want your share to be based on judgments that are rational and logical, or unfair and lacking in common sense?
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six ways to retain nextgen staff

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wilson
wilson

68% of young employees are job hunting in the next year. how about yours?

by marc rosenberg
the rosenberg practice management library

our chicago roundtable, consisting of the most prestigious and largest local cpa firms in the windy city, convened a conference that brought the house down. jennifer wilson, who leads convergence coaching, was our speaker.

more: how to develop a truly progressive nextgen culture | the top 5 concerns of great managing partners | partners: when to speak up and when to shut up
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having the right staff and using people in the right way – highest and best use – and keeping your best people is still the #1 challenge that firms face. jen addressed this issue with magnum force.
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how to develop a truly progressive nextgen culture

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three businesspeople of different ageswhy following up is so important.

by marc rosenberg
the rosenberg practice management library

earlier this year our chicago roundtable, consisting of the most prestigious and largest local cpa firms in the windy city, convened a conference that brought the house down.  our goal was (a) to address the #1 challenge to cpa firms today – managing all staff issues from recruiting to retention to developing nextgen leaders and (b) to bring in the #1 authority on these issues to speak to us about state-of-the-art practices.

more: the top 5 concerns of great managing partners | partners: when to speak up and when to shut up
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jennifer wilson was our speaker and wow, did she hit it out of the park! jen, who leads convergence coaching, is regularly recognized by “accounting today” as one of the top 100 most influential people in accounting and by “inside public accounting” as one of the most recommended consultants to cpa firms.
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the top 5 concerns of great managing partners

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industrial metal number 5growth and mergers didn’t make the cut, so what did?

by marc rosenberg
the rosenberg practice management library

i recently updated my research on the role of the managing partner. how better to do this than to poll great mps from across the country? so that’s what i did.

more: partners: when to speak up and when to shut up
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i received responses from 17 mps: three from firms with revenue exceeding $50 million; five firms were $20-50 million; six firms were $10-20 million; and three firms were $5-10 million. as i expected, i received very eloquent, powerful and somewhat diverse advice.
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partners: when to speak up and when to shut up

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sometimes the team needs to come first.

by marc rosenberg
the rosenberg practice management library

to paraphrase shakespeare: when to speak up and when to shut up – that is the question. there are times partners should speak their minds and times they should remain silent.

more on partnership: 15 partner agreement weaknesses and omissions | how business entity type affects partner income | what partnership gets you (and doesn’t) | partner comp pearls of wisdom | equity vs. non-equity partners | 5 cautionary tales in partner compensation | new partner vs. manager: what’s the difference? | partner pay in retirement transition period
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a great managing partner once told me, “if you’re not building the firm, then you’re not a partner.”  this post is about two ways (there are others) that partners build the firm. first, by speaking up when your partners need to hear what you think.
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grissom and aquila on partner performance evaluations

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woman conducting evaluationbusiness development is everyone’s job.

by august aquila and angie grissom
the august aquila leadership collection

he said: when conducting the partner performance evaluation, partners should not be surprised by the feedback. i often suggest that firms follow the following guidelines when it comes to delivering the annual (or semiannual) evaluation:

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agree together at the beginning of the evaluation period those competencies the partner should improve upon throughout the year. you may even wish to create an individual development plan that specifies those competencies and the activities in which the partner will engage to develop them.
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the seven leadership essentials for accounting firms

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businesswoman sitting on table while talking with four coworkersmanaging partners must learn when to say when.

by august j. aquila

while everyone learns by doing, we can certainly learn from others, especially those who have faced the same problem we are now facing.

more: gross profit in a professional services firm: opening a dialogue | client centricity leads to profitability | 6 steps to making your new pricing happen | preparing to change pricing philosophy
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do it sooner than later. this is perhaps the most often heard bit of advice that i hear from firm partners. too often we wait too long to address an issue. we know what the solution needs to be, but we are either afraid to decide or are hopeful that the problem will resolve itself. read more →

common approaches to partner agreement provisions

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woman winking and holding thumb upfrom retirees to part timers.

by marc rosenberg
the rosenberg practice management library

here are some best practices for partner agreement issues:

more: 15 partner agreement weaknesses and omissions | when solos bring in partners | 10 merger hiccups for partners | mandatory retirement: pros and cons (and is it legal?) | deciding how to allocate partner income
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

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15 partner agreement weaknesses and omissions

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make sure your agreement meets current standards.

by peter fontaine
cpa firm partner agreement essentials

too many firms suffer from major – often hidden – weaknesses and omissions in cpa firm partner agreements.

more: when solos bring in partners | 8 key items for partner agreements | 14 partner agreement issues in mergers | partner duties, prohibitions and grounds for expulsion
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start with this checklist to test yours.

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when solos bring in partners

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two businessmen shaking hands across desk and documents in office7 must-haves.

by marc rosenberg
the rosenberg practice management library

many major cpa firm transactions – partner agreements, mergers, the first retirement of a partner and bringing in a new partner – have one thing in common: firms have very little if any experience with them.

more: 8 key items for partner agreements | 12 basics of partner agreements | partner agreement issues affecting women | quick tip: partners investing in clients | non-equity partners: why have them? | why you might want an executive committee | buyout when a partner dies | why and how new partners buy in
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in many cases, it’s the first time they have ever contemplated this move. but bringing in a new partner cannot be done in isolation. all of the following are needed:

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8 key items for partner agreements

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forethought now can save headaches later.

by marc rosenberg
the rosenberg practice management library

a partner agreement can cover a lot of ground.

more: 12 basics of partner agreements | 10 merger hiccups for partners | mandatory retirement: pros and cons (and is it legal?) | deciding how to allocate partner income | making partner: today’s 15 essential skills and traits | how to specify managing partner duties | ownership percentage and capital accounts | 5 key reasons to have a partner agreement
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in this post, we’ll cover eight miscellaneous provisions you might include: read more →