{"id":52405,"date":"2017-07-13t09:17:05","date_gmt":"2017-07-13t13:17:05","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=52405"},"modified":"2017-07-14t10:43:23","modified_gmt":"2017-07-14t14:43:23","slug":"use-compensation-shape-partner-behavior","status":"publish","type":"post","link":"\/\/www.g005e.com\/2017\/07\/13\/use-compensation-shape-partner-behavior\/","title":{"rendered":"use compensation to shape partner behavior"},"content":{"rendered":"

\"\"<\/a>do you have the right mix of partners?<\/strong><\/p>\n

by domenick j. esposito<\/i>
\n8 steps to great<\/i><\/a><\/p>\n

visualize your partner group fitting into a bell curve.<\/p>\n

more on strategic planning: <\/b>ai likely to accelerate merger mania<\/a> | what a value proposition truly is (and isn\u2019t)<\/a> | does your firm need an independent executive committee member?<\/a> | 10 ways to link compensation and strategy<\/a> | develop home-grown future leaders<\/a> | how to capitalize on the trusted business advisor opportunity<\/a> | leadership must be persistent and consistent<\/a>
\n\"goprocpa.com\"exclusively for pro members. <\/span><\/strong>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n

in quartile #1, you have the stallions \u2013 the very high performers who produce outstanding contributions to the firm year in and year out. these equity partners want to win and know how to do it.
\n
\nthere isn’t much that you need to do to move the needle with them. they consistently contribute to the partnership with exceptional performances. their contributions might be in maintaining excellent client relationships, consistent new business development in excess of $250,000 a year, mentoring younger staff or firm administration. these are the partners who get the large year-end bonuses and generally are the firm\u2019s highest earners.<\/p>\n

in quartile #2, you have the solid performers \u2013 while these partners may not be stallions, per se, they are reliable team players who do their best and are sincere in furthering the success of the firm. more than likely these partners are a combination of seasoned equity partners and a number of up-and-coming nonequity partners. they are worth every penny that they get in compensation.<\/p>\n

in quartile #3, you have the journeymen \u2013 every firm has them. these partners give you a solid performance and do what they can to further the firm but generally act, look and feel like employees and not owners of the business. they usually aren’t the lead partners on client relationships because they are not effective and only occasionally bring in some new business.<\/p>\n

in quartile #4, you have partners who are always on the bubble because they are poor performers for a whole myriad of different reasons. some no longer have gas in the tanks. some never had gas in their tanks and probably should not have been promoted to partner in the first place. nevertheless, they are partners. some have been with the firm for a very long time and it is difficult to deliver the message that they are probably better off seeking different employment. waiting to deliver tough love later rather than sooner usually isn\u2019t a good thing and more than likely makes a bad situation even worse.<\/p>\n

“people don’t do what you expect but what you inspect.” \u2013 lou gerstner<\/p><\/blockquote>\n

every cpa firm needs more than 50 percent of its partners in\u00a0<\/span>quartiles #1\u00a0<\/span>and #2. if your firm doesn\u2019t, there is work that needs to be done before you can realize the firm\u2019s full potential. this is particularly true if your firm has more than 50 percent of the partner group in\u00a0<\/span>quartiles #3 and #4. if your firm has the wrong mix of partners, i strongly suggest that you start changing that mix sooner rather than later.<\/p>\n

while you’re changing your partner mix, there is a tool that you can utilize to get greater results than those you might be currently experiencing. that tool is your partner compensation plan.<\/p>\n

as i consult with small and mid-sized cpa firms across the u.s., i am surprised to find that many firms don’t have a partner compensation plan that rewards desired behaviors that can move the firm\u2019s bottom line. if your partner compensation plan:<\/p>\n