{"id":60394,"date":"2019-05-03t11:00:45","date_gmt":"2019-05-03t15:00:45","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=60394"},"modified":"2019-05-06t11:54:47","modified_gmt":"2019-05-06t15:54:47","slug":"keep-your-firm-from-biting-the-dust","status":"publish","type":"post","link":"\/\/www.g005e.com\/2019\/05\/03\/keep-your-firm-from-biting-the-dust\/","title":{"rendered":"keep your firm from biting the dust"},"content":{"rendered":"<p><strong><em><a href=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2019\/05\/esposito_closedsign.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-60396\" src=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2019\/05\/esposito_closedsign-424x283.jpg\" alt=\"&quot;sorry we're closed&quot; sign hanging in window\" width=\"424\" height=\"283\" \/><\/a><\/em>checklist: the 12 key objectives and 23 day-to-day responsibilities of successful managing partners.<em><br \/>\n<\/em><\/strong><\/p>\n<p><i>by domenick j. esposito<\/i><br \/>\n<a href=\"\/\/www.g005e.com\/shop\/esposito-8\/\"><i>8 steps to great<\/i><\/a><\/p>\n<p>while there are lots of reasons why small and midsized cpa firms don\u2019t realize their full potential \u2013 and, in some situations, fail or bite the dust \u2013 we have found that the downward spiral of a firm usually starts with the managing partner.<\/p>\n<blockquote><p><b>more on strategic planning: <\/b><a href=\"\/\/www.g005e.com\/2018\/12\/14\/6-ingredients-for-firm-value\/\">6 ingredients for firm value<\/a> | <a href=\"\/\/www.g005e.com\/2018\/12\/07\/4-ways-to-add-100000-in-new-business-fees-every-year\/\">4 ways to add $100,000 in new business fees every year<\/a> | <a href=\"\/\/www.g005e.com\/2018\/11\/16\/prune-your-firm-rightsize-managers-and-partners\/\">prune your firm: \u2018rightsize\u2019 managers and partners<\/a> | <a href=\"\/\/www.g005e.com\/2018\/10\/25\/ineffective-management-is-hazardous-to-your-firms-health\/\">ineffective management is hazardous to your firm\u2019s health<\/a> | <a href=\"\/\/www.g005e.com\/2018\/03\/28\/profitability-requires-discipline\/\">profitability requires discipline<\/a> | <a href=\"\/\/www.g005e.com\/2018\/02\/07\/pitching-vs-pursuing\/\">pitching vs. pursuing<\/a><br \/>\n<strong><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-full wp-image-49700\" src=\"http:\/\/4f2bur4nuye2cgakm2rm61qk.wpengine.netdna-cdn.com\/wp-content\/uploads\/2016\/08\/yellow_key_clip_art-e1375897299811-36p-hi-1-e1470686574894.jpg\" alt=\"goprocpa.com\" width=\"39\" height=\"16\" \/><span style=\"color: #b79c00;\">exclusively for pro members. <\/span><\/strong><span style=\"color: #b79c00;\"><a style=\"color: #b79c00;\" href=\"\/\/www.g005e.com\/wp-login.php?redirect_to=\/\/www.g005e.com\/2019\/05\/03\/keep-your-firm-from-biting-the-dust\/\">log in here<\/a> or <a class=\"external\" style=\"color: #b79c00;\" href=\"http:\/\/goprocpa.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n<p>the managing partner is the heart and soul of any cpa firm \u2013 the shepherd, orchestra leader, or quarterback, if you prefer, of the partner group \u2013 who didn\u2019t fully understand the key objectives and day-to-day responsibilities of his or her role, and therefore, failed to operate on all cylinders.<\/p>\n<p><!--more-->by way of background, a few points are worthy of note:<\/p>\n<ul>\n<li>at small and midsized firms, many managing partners \u201cgrew up\u201d in small firm environments and have had little exposure, if any, to what it takes to move the firm to the next level. instead, these managing partners are usually the biggest billers, the best business development partners or the partners with the most billable hours.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li>at larger firms, particularly at the top 100, on the other hand, the managing partner usually is a developing professional who<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>has been exposed to what it takes to operate a complex organization,<\/li>\n<li>exhibits the skills to build and leverage the resources of the firm and, therefore,<\/li>\n<li>has the potential to move the firm to the next level.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li>and while a successful managing partner \u2013 regardless of the size of the firm \u2013 usually carries a very small client load to stay grounded in client service and to remain credible with the partner group, billings and chargeable hours are truly a very small part of the job. in my view, a managing partner\u2019s clients are the firm\u2019s partners, giving them the opportunity to maximize their strengths while minimizing their weaknesses. it\u2019s a very challenging and daunting responsibility.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li>as a leader, every word a managing partner says, and every action taken, has a tremendous impact not only among the partner group but also throughout the firm. this can\u2019t be overemphasized!<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li>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, if not all, of the client relationships that have been developed over years of service is very scary to many. 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<\/li>\n<\/ul>\n<blockquote><p>\u201cthere are no secrets to success. it is the result of preparation, hard work and learning from failure.\u201d \u2013 colin powell<\/p><\/blockquote>\n<p>this is a very real concern and i have found many firms do not want to recognize its severity. instead firms say, \u201ctrust us\u201d and while that is easy to say, history has found that this trust has been misplaced.<\/p>\n<p>my advice is that firms consider \u201cprotecting\u201d the managing partner with an agreement \u2013 with compensation and severance provisions \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 absence of such an agreement could very well be one reason firms have difficulties in attracting effective managing partners and, as a result, are unable to achieve the next level of success.<\/p>\n<p>in my opinion, managing partners at many small and midsized cpa firms would be much more successful if they went into the job with a better understanding of their key objectives and day-to-day responsibilities. to provide guidance and to help improve the success rate for new managing partners and for the firms that they lead, i am pleased to summarize the top 100 firm best practices to maximize opportunities and minimize risk.<\/p>\n<p>of course, one size does not fit all and the practicality of this guidance depends on the size of the firm, number of offices, geographic coverage and individual strengths of the professionals. this guidance should prove to be particularly helpful to managing partners responsible for multiple offices or for those with a single office consisting of 15 or more partners.<\/p>\n<h3>key objectives<\/h3>\n<ul>\n<li>create a one-firm, firm first culture and instill a team philosophy that client service transcends geographic and office boundaries. this requires partners thinking \u201cour clients\u201d not \u201cmy clients.\u201d<\/li>\n<li>communicate effectively with partners\/staff and the community.<\/li>\n<li>take an active role in client service and communication plans and ensure that partners\/staff are providing first-class, quality client service that can be measured in a number of ways including:\n<ul>\n<li>timeliness of delivery<\/li>\n<li>technical expertise<\/li>\n<li>innovative ideas<\/li>\n<li>forward-thinking strategies<\/li>\n<li>frequent communications<\/li>\n<li>thought leadership<\/li>\n<li>client appreciation<\/li>\n<\/ul>\n<\/li>\n<li>establish effective corporate governance.<\/li>\n<li>ensure a strong balance sheet.<\/li>\n<li>drive revenue and profitability that results in market compensation for partners\/managers.<\/li>\n<li>implement best practices for communications, business growth and cost controls.<\/li>\n<li>protect the firm and ensure that partners\/staff are appropriately trained, evaluated and adhering to firm policies and evaluating client acceptance and\u00a0 continuation risk.<\/li>\n<li>participate in the local community by being an active leader in nonprofit organizations.<\/li>\n<li>function as the firm\u2019s spokesperson with business and financial outlets and publications.<\/li>\n<li>mentor future leaders.<\/li>\n<li>maintain relationships with the leaders of other small and midsized cpa firms and nurture potential m&amp;a activities.<\/li>\n<\/ul>\n<h3>day-to-day responsibilities<\/h3>\n<ul>\n<li>design and develop a strategic plan and direct its implementation.<\/li>\n<li>work with firm\u2019s executive committee (strategy, firm and partner matters) and management committee (day-to-day execution).<\/li>\n<li>be readily available for big opportunities or problems.<\/li>\n<li>create an environment of trust among the partners.<\/li>\n<li>walk the talk and lead by example (\u201cdo as i do, not as i say\u201d).<\/li>\n<li>ensure that partners set stretch goals and that they are held accountable for progress.<\/li>\n<li>ensure that partners receive the appropriate compensation for their contribution to the firm\u2019s success.<\/li>\n<li>coach and\/or outplace ineffective partners.<\/li>\n<li>develop relationships with major clients and potential clients.<\/li>\n<li>market and sell the firm\u2019s products and services to clients and potential clients; an effective developer of new business is very desirable.<\/li>\n<li>ensure compliance with firm policies regarding capital expenditures and operating expenses.<\/li>\n<li>prepare and internally communicate an annual operating budget and be held accountable for its achievement.<\/li>\n<li>ensure an effective personnel plan for current and future client service needs.<\/li>\n<li>seek laterals who can beef up bench strength and diversification.<\/li>\n<li>oversee key internal go-to-market and functional partner\/staff meetings.<\/li>\n<li>hold monthly partner meetings to discuss financial performance and other firm matters. topics usually include:\n<ul>\n<li>financial performance, billed hours, collected rate per hour, personnel costs, utilization, etc.<\/li>\n<li>firm operations including key issues and opportunities<\/li>\n<li>developments at major clients<\/li>\n<li>marketing and business development activities<\/li>\n<li>business development and pipeline reporting<\/li>\n<li>personnel updates<\/li>\n<li>functional (audit, tax and consulting) updates<\/li>\n<li>risk management<\/li>\n<li>scheduling and staffing capacities<\/li>\n<\/ul>\n<\/li>\n<li>ensure an effective utilization of administrative management and financial information systems.<\/li>\n<li>resolve significant professional disagreements among the partners.<\/li>\n<li>implement and maintain effective client billing and collection protocols.<\/li>\n<li>promote diversification of services by introducing new products and services.<\/li>\n<li>work with the hr department on significant office personnel hiring and termination matters.<\/li>\n<li>monitor partner\/manager fee realization vs. plan and recommend actions for improvement.<\/li>\n<li>oversee client service transition planning for retiring partners.<\/li>\n<\/ul>\n<h3>in conclusion<\/h3>\n<p>firms need to be very careful in selecting and developing 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<p>don\u2019t shortchange the importance of the role; too many firms fail when the managing partner doesn\u2019t have the capability to move the firm forward. i strongly encourage firms to make the necessary investment in an effective managing partner.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>checklist: the 12 key objectives and 23 day-to-day responsibilities of successful managing partners.<\/strong><br \/>\n<em>by domenick j. esposito<\/em><br \/>\n<em><a href=\"\/\/www.g005e.com\/shop\/esposito-8\/\">8 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":[2741,2259,3120,3002,9],"tags":[],"class_list":["post-60394","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-checklist","category-leadership","category-pro-member-exclusive","category-special","category-strategy"],"acf":[],"yoast_head":"<!-- this site is optimized with the yoast seo plugin v24.0 - 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