the partnership

how to deal with underperforming partners

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man preparing to fly paper airplane at office deskmake sure the firm isn’t part of the problem.

by august j. aquila
what makes a great partnership

i’ve been dealing with underperforming or dysfunctional partners for a quarter of a century. while the underperformers and dysfunctional ones haven’t changed much in that time, the way firms are dealing with them certainly has.

more: when ‘quiet quitting’ hits the partner ranks | nine ways to handle partners with strong views | rate managing partners in six areas | five ways to keep your edge as a leader | managing partner: the toughest job in the world | why partners need written goals
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the so-called white gloves in the accounting profession came off many years ago when dealing with competitors. they are now off when dealing with these two types of partners. in addition, modern technology of time and billing software can and does generate every conceivable productivity report. partners are ranked from top to bottom in terms of billable hours, dollars collected, new business developed, collections, etc. there is no place for these partners to hide.
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when ‘quiet quitting’ hits the partner ranks

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sad businessman sitting at desk outdoors and looking straight aheadand 11 steps to take in response.

by august j. aquila
what makes a great partnership

over the years i have been called in to firms to help address an underperforming partner. i have learned that underperforming can mean a lot of different things and the underperformer can have many different problems.

more: nine ways to handle partners with strong views | nine standards for partner compensation | five ways to keep your edge as a leader | why partners need written goals | eight criteria for partnership
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i have also learned that many managing partners waste a lot time and energy either trying to “fix” the underperformer or just ignoring the 5-ton elephant in the room.
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nine ways to handle partners with strong views

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angry businessman discussing with his colleague on a business meeting in the officetake a moment to focus on learning, not winning.

by august j. aquila
what makes a great partnership

question: since recently becoming our firm’s managing director, i’ve been engaging a number of my colleagues in discussions on how we should be concerned with delivering more value to our clients. i think this is an important issue for us going forward and find that most of my partners are on board conceptually and willing to explore the issue.

more: nine standards for partner compensation | 12 points of a good compensation plan | ten steps to a new managing partner | what managing partners must be doing | do your partners pay their own way? | how to create firm accountability | five questions to ask your partners about accountability | how you can get partners to change
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however, there are a few who are have responded uncompromisingly, with rather curt, dismissive statements whenever the topic comes up. any tips for me on how you might handle the partner who holds strong beliefs on high-stake topics and demonstrates little willingness to either listen or consider alternative views?
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nine standards for partner compensation

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number 9 created by gaps between many small green plastic 9'splus six questions to ask about your plan.

by august j. aquila
what makes a great partnership

ever wonder what the most appropriate partner compensation system is for your firm and how to assess partner performance?

more: 12 points of a good compensation plan | rate managing partners in six areas | five ways to keep your edge as a leader | managing partner: the toughest job in the world | why partners need written goals | eight criteria for partnership | how you can get partners to change
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

a firm’s compensation system is a reflection of its culture and external competitive factors. when was the last time you gave your partner compensation system a checkup?
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what buying-in actually means

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two women in office shake handsyou’re probably not an owner.

by marc rosenberg
how to bring in new partners

there are two components to the value of a cpa firm: capital and goodwill, the latter of which is often stated as a percentage of the firm’s annual revenue. capital is on the balance sheet; goodwill is not.

more: why buying into a firm is such a great investment | four philosophies for managing a cpa firm | public accounting as a business, 101 | 16 steps to creating a partnership path | six ways new partners differ from managers | the four essentials for every new partner | tell potential partners what it takes
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here’s a crash course in cpa firm business valuations. assume a firm with annual revenue of $10 million. most firms have accrual basis capital of roughly 20 percent of their revenues, consisting mostly of wip and a/r. if we value the goodwill at 100 percent of revenue (this used to be so common it was automatic; today it is still common but much less so), the total value of the firm is $12 million: $2 million of capital and $10 million of goodwill.
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12 points of a good compensation plan

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green checks being made on checklisthow to reward partners.

by august j. aquila
what makes a great partnership

during the last 13 years i have focused a large part of my practice on helping firms develop compensation plans. a critical element in keeping partners engaged is having a compensation system that rewards them for doing the right things. here’s what i found to be some of the best practices.

more: rate managing partners in six areas | eight ways managing partners make a real difference | five reasons that leaders fail | eleven things partners must do | seven keys to becoming an equity partner | how to achieve partner unity | the seven building blocks of a great partnership
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  1. every compensation plan should be constructed to help the firm enhance its ability to service clients, achieve its strategic goals and attract, reward and retain the right people. if a firm’s plan does not accomplish these objectives, it needs to be restructured.

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why buying into a firm is such a great investment

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hand watering small plant in pot shaped like upward arrowcaution: don’t get hung up on ownership percentage.

by marc rosenberg
how to bring in new partners

accepting a partnership invitation offers two terrific, lifetime benefits to new partners that for most people cannot possibly be matched in any other career pursuit.

more: four philosophies for managing a cpa firm | how partner and staff actions impact profits | nuts and bolts of mentoring staff | nine ways to measure staff performance on the path to partner | sixteen duties of a partner
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if they don’t see this and agree with it, then perhaps it would be unwise for them to accept the partnership offer.
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rate managing partners in six areas

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blue pencil on survey formincluded: six tables to help you do just that.

by august j. aquila
what makes a great partnership

according to marc rosenberg, managing partners should focus on the following six areas:

  • leadership
  • profitability
  • strategic planning
  • team building
  • learning/training
  • asset protection

more: eight ways managing partners make a real difference | ten steps to a new managing partner | what managing partners must be doing | do your partners pay their own way? | how to create firm accountability
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each of these areas is important and worthy of further discussion. the size of your firm, number of partners/owners and the existing management team will influence the areas of importance. the following rating scale applies:
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four philosophies for managing a cpa firm

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closeup of businesswoman writing on a flipchartbonuses: org charts for small, medium and large firms, plus 25 best practices.

by marc rosenberg
how to bring in new partners

when we discuss how cpa firms are managed, there are two kinds of firms.

more: how partner and staff actions impact profits | the business side of cpa firms | it shouldn’t take so long to make partner | three types of skills you need to become a partner | seventeen basic expectations of partners | nine ways to woo a prospective partner
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the first kind of firm argues that there is not much that needs to be managed at a cpa firm. these cynics might say, “come on. running a cpa firm isn’t rocket science. you hang out your shingle. you get clients. you hire staff. you do the work. bill and collect. what needs to be managed?”
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experts: what it takes to become partner

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//www.g005e.com/2021/04/29/industry-experts-speak-on-partner-competence/
dobek, tierney, baker

first, consider why you want it.

by martin bissett
passport to partnership

the skill in producing financial reports is limited by the quality of the information presented to the cpa by the client. the motivation of the client to influence that financial information comes in many forms, some intentional and some unintentional. competence comes first in being able to resist pressure and present a true and accurate position of the client’s organization.

more: business won’t come to you | win your first client: yourself | perception is reality, client version | 10 questions for reconsidering your prices | would you make yourself a partner? | prepare the next generation now
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sounds obvious, doesn’t it? but there’s a twist.

competence doesn’t actually rank highly among the requirements for partners in our study at all.
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eight ways managing partners make a real difference

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friendly business team looking at tablet in office lobbywant to play at the peak of your game?

by august j. aquila
what makes a great partnership

so, what do the truly successful managing partners do that differentiates them from their peers? in this short post i will quickly summarize the results of my research, which entailed interviewing 150 practicing and managing partners in a cross-section of consulting, accounting and law firms across europe and the u.s., before focusing on the things great managing partners did to ensure they were always at the top of their game.

more: ten steps to a new managing partner | five ways to keep your edge as a leader | managing partner: the toughest job in the world | why partners need written goals | eight criteria for partnership | how you can get partners to change
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

the model

this model of what successful managing partners do is adapted from the leadership model in “when professionals have to lead,” which rob lees co-authored with tom delong and jack gabarro. i have used the same overarching dimensions of direction, commitment, execution and personal example and added context to reflect its impact on what firm leaders need to do.
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ten steps to a new managing partner

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three people standing, smiling and talking in an office walkwayhow to execute a smooth, graceful transition.

by august j. aquila
what makes a great partnership

one of the most difficult events that a firm faces is the transition of power from one managing partner to another, especially when it’s the first time. knowing when to pass the baton and how to pass it are critical decisions every firm will have to make.

more: five ways to keep your edge as a leader | five reasons that leaders fail | eleven things partners must do | seven keys to becoming an equity partner | how to achieve partner unity | the seven building blocks of a great partnership
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

the most important thing you can do at this point is to plan, plan and plan some more for the transition. the sooner you lay out your plan, the easier it will be for you to achieve it.
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how partner and staff actions impact profits

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seniorbusinessman5others_a-31774-629six specific examples, plus benchmarking norms.

by marc rosenberg
how to bring in new partners

these four metrics are key to any analysis of cpa firm profitability.

  1. fees per equity partner. the firm’s billings divided by the number of equity partners. this is one of the ways we measure leverage. the more billings each partner can manage, the higher the firm’s profit margin.

more: the business side of cpa firms | public accounting as a business, 101 | 16 steps to creating a partnership path | six ways new partners differ from managers | the four essentials for every new partner

goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

on average, partners do 10-15 percent of all work performed for clients; the remaining 85-90 percent is performed by staff under the partners’ supervision. the higher the percentage of client work the partners perform, the harder it is for them to find the time to build their client base and help the firm achieve a high fees-per-partner ratio. to manage a large client base properly, partners need to delegate as much of the client work as possible to staff.

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