partnership

the dna of a practice leader

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manager standing in front of wall of tvsa lesson in customer service and reputation.

by martin bissett
passport to partnership

in order to become a commercially aware practice leader, we need to understand the dna of leadership.

more passport to partnership: surviving vs. thriving | it’s not the challenge, it’s your response | what challenges really mean for partners | commitment: your view and your firm’s | businesses place value on expertise |  for pro member exclusive content: sign in here or 2022世界杯足球排名 now

any woman or man leading an accounting firm, who chooses to overcome each operational or client challenge as it if their future depended on it, will not only succeed in practice but will become capable of delivering advisory value to their clients unmatched by their competitors, thus achieving true differentiation.
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surviving vs. thriving

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plant seedlings growing out of coin stacks , both increasing in sizewhat commercial awareness really means. plus 5 reasons firms don’t thrive … and how to solve them.

by martin bissett
passport to partnership

a big concern in recent years has been how the incoming partners will purchase equity or fund the capital account and exit of a retiring partner.

more on the passport to partnership: it’s not the challenge, it’s your response | why hitting your numbers isn’t enough | what do your true colors say about your commitment? | how to build your pipeline | 6 keys to the perfect proposal | communication can’t be overrated | how to read your firm’s cultural blueprint | 12 ways to determine your competence | passport to partnership: new research shows wide gap between partners and partners-to-be

much has been written that examines the mathematical complexities of this topic but the bottom line is simple. would-be partners in the age demographic of 28-42 are part of a generation who are already heavily borrowed in the form of credit card debt, mortgage debt and other forms of personal loans.
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it’s not the challenge, it’s your response

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young businessman standing on edge of rock mountain and looking acrossbonus checklist: 5 questions for self-evaluation.

by martin bissett
passport to partnership

when challenges come our way, regardless of what shape or form they arrive in, our world seems to lose a bit of brightness, there’s a little knot in the gut and a sense of peace broken.

more on the passport to partnership for pro members: why hitting your numbers isn’t enough | what do your true colors say about your commitment? | what commitment really means for partners | how well do you represent your firm? | communication: putting it all together

the question is, if we were watching our own responses to these trials, would we appoint ourselves as the next partner of the firm?

let’s examine 30 checkpoints to test your own, or your staffers’ abilities, to overcome challenges.
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system vs. system: partner compensation best practices

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chart outlining multitier system
for full size, see full article

bonus lists: 12 allocation systems and 22 intangible performance attributes.

by marc rosenberg
cpa firm retreats

“if people are concerned about their absolute level of compensation, then they can be satisfied. however, if their focus is on relative standing, then they can never be satisfied.” – andrew grove, former chairman of intel

you’ve decided you’re going to discuss partner compensation at your next retreat, then you’ll need to start with some warm-up materials.

begin with this partner compensation best practices13-point checklist:

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partner comp: three subjective compensation systems

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plus balloting details for those who use paper and pencil.judge gavel,dollar banknotes and calculators

by marc rosenberg
partner comp: art & science

there are at least three performance-based systems for partner compensation. none rely completely on intractable formulas, but instead introduce various degrees of subjectivity. needless to say, none are without some controversy.

more on partner compensation: 11 points in designing a partner comp system | 3 tiers of compensation | what partners earn and how they earn it | how partners view compensation: it’s not all about the money

but each system requires serious thought. here’s a comprehensive of the three approaches. which does your firm use now? why? which might be a better approach?

let’s take a closer look:

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11 points in designing a partner comp system

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businessman sitting on scales with stack of coins in other traybonus checklist: the 12 systems used by firms to allocate partner income.

by marc rosenberg
partner comp: art & science

because partner compensation is the most sensitive aspect of cpa firm practice management, adopting a new system or modifying the current one requires an exceptional amount of thought, care and study. here we summarize the many issues firms need to address in designing their partner compensation system.

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why hitting your numbers isn’t enough

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three darts hitting a target bull's-eyeare your projections sending your firm backward?

by martin bissett
passport to partnership

how do you react to challenges?

more on the passport to partnership: what does the next generation of practice leaders face? | commitment: a cautionary tale | how to build your pipeline | 6 keys to the perfect proposal | communication can’t be overrated | how to read your firm’s cultural blueprint

ask yourself and answer these questions when considering the current and future “challenges” behaviors that you’ll employ.
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how to address partner compensation at a retreat

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woman leading meeting, flipchart in backgroundhow do you feel about evaluations … and tying compensation to them?

by marc rosenberg
cpa firm retreats

before formally beginning the discussion part of a retreat session, it’s always a good idea to begin by asking the participants what they want to be sure to cover. as issues are suggested, the retreat facilitator should write them down on a flipchart.

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3 tiers of partner compensation

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chart of 3 tiers of partner compensationplus: 6 major factors impacting bonuses. and 4 notes from a master.

by marc rosenberg
partner comp: art & science

most cpa firm partner compensation systems consist of three tiers, each of which compensates the partners in a different way.

more on partner compensation: partner compensation 101| what partners earn and how they earn it | partner compensation: an art, not a science | how partners view compensation: it’s not all about the money | why most partner comp systems are performance-based

what is base compensation (or salary)?

it’s common to define partners’ base compensation as their historical or street value to the firm. what they bring to the firm every day. a managing partner once told me: “it’s what we would have to pay a partner at another firm to come work with us.”

practice debunked: many firms have equal bases for all partners. their thinking is that the base is merely a level of compensation that (1) is above what managers are paid and (2) is enough for the partners to live comfortably on. firms like this are operating a modified pay-equal system, which is widely viewed in the cpa industry as ineffective and unfair. not only do partners not perform equally, there is almost always a wide variation from highest to lowest performer. the case for equal bases is a weak one at best.

practice debunked: i’ve seen some firms impute partner bases as follows: first, compute hourly pay rate by dividing the standard billing rate by the firm’s billing rate multiple. then, multiply the hourly pay rate by 2,000 hours to arrive at imputed base pay. billing rate multiple is a staff person’s billing rate divided by the hourly pay rate. eighty to ninety percent of all firms are in the 3.5 to 4.0 range.

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what does the next generation of practice leaders face?

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woman's hand pressing words "ask an expert"“now, more than ever before firms need to be clear regarding their roi proposition to clients.”

by martin bissett
passport to partnership

the passport to partnership study collated a number of responses in a conversational style. the need for professionals who can remain calm in the storm is showcased below and was repeated many times in various different ways.

more on the passport to partnership: how to build your pipeline | businesses place value on expertise | communication: it’s not about you | sailing through the seven c’s to partnership

the expert council
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partner accountability: how and for what?

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13 things to hold partners accountable for, 10 ways to do it and 12 questions to ask. bonus: example of a personal accountability plan.

by marc rosenberg
cpa firm retreats

partner accountability means different things to different people. some quotations:

“if there are no consequences to failing to achieve a goal, then it is less likely that the goal will be accomplished.” – marc rosenberg

“if people are not prepared to be held accountable for what they do, it is unlikely they will achieve much.” – david maister

more on retreats: 30 marketing and growth questions to cover at a retreat | how marketing for cpa firms is different | why create a marketing plan? | thinking of merging? discuss it at a retreat | how to take action after a retreat | 12 simple rules for a retreat | leave your retreat with a to do list | every retreat needs a leader, but who? | retreats are no place for clowns | who should participate in a retreat? | retreat logistics: how long, what kind? | what should cpa firms discuss at retreats? | why do cpa firms conduct retreats?

“i’m a partner in this firm. that gives me the right to do whatever i darn well please, whenever i want to do it.” – firm partner to whom “accountability” is a dirty word
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what challenges really mean for partners

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stylized photo of businessman running on a track

the 3 challenges on the road to partnership.

by martin bissett

passport to partnership

now we move on to our sixth “c” – challenges.

again the heading has more than a single application, which we’ll explore here.

more on the passport to partnership: 6 keys to the perfect proposal | how to read your firm’s cultural blueprint | 12 ways to determine your competence | passport to partnership: new research shows wide gap between partners and partners-to-be

ultimately, the partners interviewed in our research broke “challenges” down into two key areas:
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