{"id":56358,"date":"2018-10-25t17:58:40","date_gmt":"2018-10-25t21:58:40","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=56358"},"modified":"2018-10-31t14:22:26","modified_gmt":"2018-10-31t18:22:26","slug":"ineffective-management-is-hazardous-to-your-firms-health","status":"publish","type":"post","link":"\/\/www.g005e.com\/2018\/10\/25\/ineffective-management-is-hazardous-to-your-firms-health\/","title":{"rendered":"ineffective management is hazardous to your firm’s health"},"content":{"rendered":"
<\/a>9 warning signs, plus 4 things a managing partner should not be.<\/strong><\/p>\n by domenick j. esposito<\/i> hard to believe but every year there are a number of small and midsized cpa firms that either \u201cdie on the vine,\u201d break up or merge up as \u201cdamaged goods\u201d if a well-run firm is willing to take them on.<\/p>\n more on strategic planning: <\/b>why do we accept poor new business results?<\/a> | is it time to manage your receivables like a real business?<\/a> | mine vs. yours vs. ours<\/a> | 22 things leaders must do<\/a> | 21 questions to help unlock accelerated growth<\/a> | m&a candidates: valuations and vetting<\/a> | ai likely to accelerate merger mania<\/a> why is it that so many firms continue to spiral into a slow death? it\u2019s because they are aware of the danger signals but little, if anything, is done about them or because they are not paying attention to the warning signs including the following: why do these things happen at a firm? usually it\u2019s because the firm management, particularly the managing partner, is unable to make the tough decisions and cut them off at the pass.<\/p>\n \u201ccontrol your own destiny or someone else will.\u201d\u00a0<\/span> does your firm have some of these symptoms? if yes, there still may be time for you to do something about it. it starts by evaluating the effectiveness of your managing partner, because without an effective managing partner, a firm runs the very real risk of failure.<\/p>\n at small and midsized firms, many leaders \u201cgrew up\u201d in small firm environments and have little understanding, if any, of what it takes to operate a successful firm and what the managing partner\u2019s objectives and job responsibility are. an effective managing partner has to set the tone at the top and, when necessary, make the tough decisions that are required to keep the firm viable. he\/she has a very big impact on the firm\u2019s culture, behavior and compensation of the partner group. being a cpa firm leader requires a person to walk the talk, to lead by example, \u201cto do as i do, not as i say.\u201d it\u2019s a very challenging and daunting responsibility. as a leader, every word a managing partner says and every action taken has a tremendous impact not only among the partner ranks but also throughout the firm.<\/p>\n followed by what an effective managing partner is not, the following summarizes the key objectives and job responsibilities of a firm\u2019s managing partner.<\/p>\n key objectives<\/strong><\/p>\n key job responsibilities<\/strong><\/p>\n while from time to time this kind of arrangement works, many times it doesn\u2019t and is therefore a step that should be taken with lots of caution. too often firms with co-managing partners are plagued with inaction or conflicting directions with little, if any, consistency on strategy. if co-managing partners could be avoided, i encourage firms to take the bold step and the tough decision \u2013 select the right person for the job today and make sure that you do the best to retain the other contender(s) for the position. i acknowledge retention is not very easy to accomplish. so, the best advice i can give is to avoid a scenario like this completely by being very clear as to the characteristics a firm is looking for in a managing partner \u2013 then go for it.<\/p>\n many firms select a new managing partner from their ranks at an age somewhere between 45 and 53. candidates are usually excellent client relationship partners with substantial client service responsibilities. the thought of giving up a substantial portion\u00a0\u2013 if not all \u2013 of the client relationships that have been developed over years of service is very scary to many.<\/p>\n for sure, there is a risk in being a managing partner. candidates ask, \u201cwhat happens if i\u2019m not successful? in the spirit of trust, i lose most of my client responsibilities and begin to lose touch with my outside referral sources. i\u2019ll have nowhere to go but to exit the firm when i\u2019m no longer managing partner.\u201d<\/p>\n this is a very real concern and i have found many firms do not want to recognize the severity of the concern. instead firms say, \u201ctrust us\u201d and while that is easy to say, history has found that this trust has been misplaced.<\/p>\n my advice is that firms consider \u201cprotecting\u201d the managing partner with an agreement\u00a0\u2013 with compensation, severance and enhanced retirement provisions\u00a0\u2013 that ensures employment for two or three years after the person steps down as managing partner. while this is rarely done in today\u2019s world, i suggest that the lack of such an agreement could very well be one reason a firm has difficulties in attracting effective managing partners and, as a result, is unable to remain a viable firm.<\/p>\n firms need to be very careful in selecting their managing partner. the goal should be to ensure a high probability of success. that\u2019s not only good for the managing partner, it\u2019s also good for the firm and for future managing partners.<\/p>\n today, more than ever before, the managing partner is the quarterback in a firm. don\u2019t shortchange the importance of the role. i have seen too many firms fail when the managing partner is ineffective. it\u2019s usually the beginning of a slow and torturous death.<\/p>\n","protected":false},"excerpt":{"rendered":"
\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<\/p>\n\n
\n\u2013 jack welch<\/p><\/blockquote>\n
\nso, let\u2019s begin there.<\/p>\nwhat an effective managing partner must do<\/h3>\n
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what an effective managing partner is not<\/h3>\n
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in conclusion<\/h3>\n