{"id":53420,"date":"2017-12-30t05:01:43","date_gmt":"2017-12-30t10:01:43","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=53420"},"modified":"2024-08-14t09:35:16","modified_gmt":"2024-08-14t13:35:16","slug":"compensation-must-align-strategy","status":"publish","type":"post","link":"\/\/www.g005e.com\/2017\/12\/30\/compensation-must-align-strategy\/","title":{"rendered":"solve the partner comp problem"},"content":{"rendered":"
<\/a>now is the time to take a hard look at your partners and your compensation model.<\/strong><\/p>\n by domenick j. esposito<\/i> let’s take a deep dive into both a firm\u2019s partner mix and its compensation model.<\/p>\n more on strategic planning: <\/b>21 questions to help unlock accelerated growth<\/a> | growth: the difference between the disruptor and the disrupted?<\/a> | use compensation to shape partner behavior<\/a> | the importance of m&a culture due diligence<\/a> | are you attracting the new breed of equity partners?<\/a> in a “good to great” research study on high-performing organizations performed by jim collins, it was concluded that the method of compensation, as a causal factor for high and sustained performance, is largely irrelevant. the study concluded that whatever system is in use, it simply must be rational and equitably managed and that high sustained performance is largely the result of doing many things well. \u201cthe purpose of a compensation system should not be to get the right behaviors from the wrong people, but to get the right people on the bus in the first place, and to keep them there.\u201d<\/p>\n \u2013 jim collins<\/p><\/blockquote>\n with that said, i ask that you visualize your partner group fitting into a bell curve and:<\/p>\n does your firm have the right partners on the bus? every cpa firm needs more than 50 percent of its partners in quartiles #1 and #2. if your firm doesn\u2019t, there is work that needs to be done before you can achieve satisfactory growth on the top and bottom lines. this is particularly true if your firm has more than 50 percent of your partners in quartiles #3 and #4 who probably don\u2019t care what your compensation model is as more compensation usually isn\u2019t much of a driver for them.<\/p>\n if your firm doesn\u2019t have the right mix of partners, it is incumbent upon you to change the partner mix sooner rather than later. easier said than done but if you don\u2019t, it is costing you today and will continue to cost you in the future \u2013 no matter what your compensation model looks like!<\/p>\n for purposes of this perspective, let\u2019s assume that your firm does have the right mix of partners but, nevertheless, isn\u2019t clicking on all cylinders as the market becomes tighter, competition gets more intense and billing rate pressures continue to increase. if this is the case at your firm, the year 2018 is probably the time for you to take a hard look at your compensation model to see if there is a better way to motivate your partners by getting your compensation philosophy right. this, in turn, will enable you to get partner compensation right to ensure continued financial prosperity and perpetuity.<\/p>\n i suggest that your 2018 compensation model needs to:<\/p>\n if you think that the year 2018 might be the year for you to take a hard look at your partners, i encourage you to do so with compassion and conviction. one of the hardest responsibilities for a managing partner is to deliver tough love to a partner who isn\u2019t living up to expectations and something must be done about it.<\/p>\n if you think that the year 2018 might be the year for you to take a hard look at your compensation model, i encourage you to:<\/p>\n remember, there isn\u2019t a perfect compensation plan. the world of public accounting is changing rapidly and the areas of compensation emphasis in the past probably aren\u2019t the same areas of emphasis today and tomorrow.<\/p>\n i have always believed that if you showed me your compensation model, i could tell you what your firm\u2019s strategy was. if you did that simple analysis at your firm, would you conclude that your firm strategy and partner compensation philosophy are aligned? if not, 2018 is your year to tackle this challenge.<\/p>\n","protected":false},"excerpt":{"rendered":" is 2018 the year to take a hard look at your partners and your compensation model?<\/strong>
\n8 steps to great<\/i><\/a><\/p>\n
\nexclusively for pro members. <\/span><\/strong>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n
\n
\ncollins emphasizes that the key to high performance is having the right people on the bus.<\/p>\n\n
\n
\n
\n
\n
\nby domenick j. esposito<\/em>
\n8 steps to great<\/a><\/em><\/p>\n","protected":false},"author":1596,"featured_media":49054,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[1908,2374,3120,2266],"tags":[2429,572,38,1416],"class_list":["post-53420","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-management","category-pay-compensation","category-pro-member-exclusive","category-partner","tag-earnings","tag-pay","tag-salary","tag-wages"],"acf":[],"yoast_head":"\n