{"id":83548,"date":"2021-05-01t12:20:12","date_gmt":"2021-05-01t16:20:12","guid":{"rendered":"\/\/www.g005e.com\/?p=83548"},"modified":"2022-12-22t00:43:28","modified_gmt":"2022-12-22t05:43:28","slug":"how-long-should-it-take-to-make-partner","status":"publish","type":"post","link":"\/\/www.g005e.com\/2021\/05\/01\/how-long-should-it-take-to-make-partner\/","title":{"rendered":"how long should it take to make partner?"},"content":{"rendered":"<p><strong><a href=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/05\/hourglassmoney_dollarphotoclub_13907897.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-41301\" src=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/05\/hourglassmoney_dollarphotoclub_13907897-590x393.jpg\" alt=\"hourglass on money background\" width=\"424\" height=\"283\" srcset=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/05\/hourglassmoney_dollarphotoclub_13907897-590x393.jpg 590w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/05\/hourglassmoney_dollarphotoclub_13907897.jpg 300w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/05\/hourglassmoney_dollarphotoclub_13907897.jpg 600w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/05\/hourglassmoney_dollarphotoclub_13907897-290x193.jpg 290w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/05\/hourglassmoney_dollarphotoclub_13907897-190x127.jpg 190w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/05\/hourglassmoney_dollarphotoclub_13907897.jpg 1600w\" sizes=\"auto, (max-width: 424px) 100vw, 424px\" \/><\/a>your top candidates might not want to wait.<br \/>\n<\/strong><\/p>\n<p><i>by marc rosenberg<\/i><br \/>\n<a href=\"\/\/www.g005e.com\/shop\/mr20rmp\/\"><i>the role of the managing partner<\/i><\/a><\/p>\n<p>accounting today\u00a0published a very interesting piece of research titled\u00a0\u201cthe long path to partner.\u201d the polling question: how many years does it take to make partner at your firm?<\/p>\n<blockquote><p><b>more: <\/b><a href=\"\/\/www.g005e.com\/2021\/04\/15\/how-a-good-managing-partner-impacts-profitability\/\">how a good managing partner impacts profitability<\/a> | <a href=\"\/\/www.g005e.com\/2021\/04\/08\/the-9-biggest-merger-pitfalls\/\">the 9 biggest merger pitfalls<\/a> | <a href=\"\/\/www.g005e.com\/2021\/02\/25\/10-ways-to-hold-partners-accountable\/\">10 ways to hold partners accountable<\/a><br \/>\n<strong><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-49700 size-full\" src=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/08\/yellow_key_clip_art-e1375897299811-36p-hi-1-e1603911598474.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\/2021\/05\/01\/how-long-should-it-take-to-make-partner\/\">log in here<\/a> or <a class=\"external\" style=\"color: #b79c00;\" href=\"http:\/\/goprocpa.com\/\" target=\"_blank\" rel=\"noopener\">2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n<p>the results:<\/p>\n<ul>\n<li>less than 5 years: 9%<\/li>\n<li>5-7 years: 12%<\/li>\n<li>8-9 years: 12%<\/li>\n<li>10-13 years: 30%<\/li>\n<li>more than 13 years: 17%<\/li>\n<li>don\u2019t know: 20%<\/li>\n<\/ul>\n<p><!--more--><br \/>\ni\u2019ll wager that the \u201cdon\u2019t know\u201d firms are mostly in the 10 years or more categories, with the majority more than 13. so i extrapolate that at roughly two-thirds of all firms, it takes 10 or more years to make partner, which translates to an age range in the mid-30s.<\/p>\n<h3>why does it take so long?<\/h3>\n<p><strong>the quick, expected response. <\/strong>i have asked this question of cpa firm partners on numerous occasions. most of them say the long period of apprenticeship is necessary because it takes that long to acquire all of the necessary technical, supervisory, leadership, interpersonal and business-getting skills and to gain credibility with clients.<\/p>\n<p>contrast this to the medical and legal professions. doctors are ready to practice their life-saving skills in their late 20s and early 30s. lawyers often make partner in their early 30s. it\u2019s hard to imagine that the skills needed to be a cpa firm partner are more technically demanding than those of a partner in a medical or legal practice.<\/p>\n<p><strong>a \u201cbusiness\u201d reason? <\/strong>at many firms, the promotion to equity partner often depends on whether or not the firm can afford to or needs to add a partner. at some firms, there wouldn\u2019t be enough clients to go around, so there may not be sufficient income to add another partner. of course, if new partner candidates develop large enough client bases of their own, then there is usually no delay. since 80-90 percent of <strong>new<\/strong> partners have yet to develop anywhere near a full client base on their own, this \u201cbusiness\u201d reason for the long wait often prevails.<\/p>\n<p><strong>a \u201cbe like mike\u201d issue? <\/strong>average partners at typical local cpa firms are in their early 50s, manage over $1 million of clients, have 20-25 years of solid experience, are very street-smart and earn over $400,000 per year. at many firms, the existing partners want new partners to be like them \u2013 an awfully high standard for new partners to meet.<\/p>\n<p><strong>why am i raising this issue? <\/strong>i bring this up because the traditional model of operating a cpa firm is crumbling and that model has driven away many young, highly skilled staff unwilling to wait until their mid-30s or later to make partner.<\/p>\n<p><strong>the fallacy in the \u201cbusiness reasons\u201d for taking so long to make partner. <\/strong>the problem doesn\u2019t lie with the new partners failing to qualify for a partnership. the real problem is that many existing partners don\u2019t perform two critically important partner duties <strong>themselves:<\/strong> bringing in business and developing young people into leaders. let me explain.<\/p>\n<p>at well-managed larger firms, clients are serviced with a firm, not an individual, orientation. partners are expected to bring in new business continually. they are not allowed to coast once they build up a $1 million-plus client base.<\/p>\n<p>when people are promoted to partner, many of the clients they serviced as a manager become their client responsibility. also, other partners may transfer clients to new partners to build up their client responsibility. these two actions, combined with the new partners\u2019 own origination, result in an overall client responsibility amount that is respectable for a first-year partner.<\/p>\n<p>what happens to the existing partners who \u201close\u201d clients when new partners are made?\u00a0as true partners, they are now responsible for bringing in new business to replace the clients they transferred.<\/p>\n<p>this process has two system requirements. first, the firm must track business originated (finding) separately from client responsibility (minding) for each partner. at many firms, the finder and the minder for a given client are often different people. second, the firm\u2019s partner income allocation system must be sophisticated enough to avoid (1) unfairly penalizing partners who transfer clients to others for the good of the firm and (2) granting windfalls to new partners who are the fortunate recipients of client transfers.<\/p>\n<p>a complementary process is the use of a non-equity partner position as a middle step between manager and equity partner. this non-equity partner slot becomes a partner-in-training position. it will prepare personnel to handle a large client base and help partners evaluate their ability to handle it successfully. once they become proficient, they may be elevated to equity partner.<\/p>\n<p>with these systems in place, it becomes easier to offer partnerships to star managers at a much earlier age.<\/p>\n<h3>shorten the path to partner<\/h3>\n<p>firms should take a serious look at their systems and criteria for making someone a partner. for the vast majority of partner-potentials, it doesn\u2019t take 13-20 years to develop the skills and personality to function as a partner. shortening the path will go a long way toward retaining the best and the brightest because (a) they see an opportunity for rapid advancement, (b) the firm recognizes their strong skills and personality traits and (c) they are well positioned for a dramatic increase in compensation.<\/p>\n<p><strong>path to partner milestones checklist<\/strong><\/p>\n<table>\n<tbody>\n<tr>\n<td width=\"186\"><strong>milestones for bringing in new partners<\/strong><\/p>\n<p>&nbsp;<\/td>\n<td width=\"91\"><strong>who?<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/td>\n<td width=\"156\"><strong>timing \/ frequency<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<tr>\n<td width=\"186\">1. talk about benefits of partnership<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/td>\n<td width=\"91\">partners talk to partner candidates<\/p>\n<p>&nbsp;<\/td>\n<td width=\"156\">start at staff level, add depth throughout career<\/td>\n<\/tr>\n<tr>\n<td width=\"186\">2. discuss future leaders of the firm<\/p>\n<p>&nbsp;<\/td>\n<td width=\"91\">partner group<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/td>\n<td width=\"156\">ongoing (at least annually)<\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<tr>\n<td width=\"186\">3. develop leadership skills<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/td>\n<td width=\"91\">all<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/td>\n<td width=\"156\">start at staff level, add depth throughout career<\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<tr>\n<td width=\"186\">4. gauge interest in joining partnership<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/td>\n<td width=\"91\">partners ask partner candidates<\/p>\n<p>&nbsp;<\/td>\n<td width=\"156\">manager level, ongoing<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<tr>\n<td width=\"186\">5. develop specific partner-level skills (e.g., business development, organizational leadership)<\/p>\n<p>&nbsp;<\/td>\n<td width=\"91\">partner candidates<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/td>\n<td width=\"156\">manager or senior manager, ongoing<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<tr>\n<td width=\"186\">6. explain role and expectations of partners at your firm<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/td>\n<td width=\"91\">partners talk to partner candidates<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/td>\n<td width=\"156\">senior manager<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<tr>\n<td width=\"186\">7. explain financials of partnership and buy-in (using realistic, estimated numbers for your firm)<\/p>\n<p>&nbsp;<\/td>\n<td width=\"91\">partners talk to partner candidates<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/td>\n<td width=\"156\">senior manager<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<tr>\n<td width=\"186\">8. identify specific managers and senior managers with partner potential<\/p>\n<p>&nbsp;<\/td>\n<td width=\"91\">partner group<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/td>\n<td width=\"156\">ongoing (at least annually)<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<tr>\n<td width=\"186\">9. evaluate fitness for partnership<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/td>\n<td width=\"91\">partner group<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/td>\n<td width=\"156\">as needed for specifically identified partner candidates<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<tr>\n<td width=\"186\">10. define timeline for adding new partners<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/td>\n<td width=\"91\">partner group<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/td>\n<td width=\"156\">ongoing (at least annually), plus specific timelines once a candidate is likely to be offered admission<\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<tr>\n<td width=\"186\">11. vote on offering partnership to identified candidates<\/p>\n<p>&nbsp;<\/td>\n<td width=\"91\">partner group<\/td>\n<td width=\"156\">as needed<\/td>\n<\/tr>\n<tr>\n<td width=\"186\">12. present partnership offer<\/p>\n<p>&nbsp;<\/td>\n<td width=\"91\">partner group<\/p>\n<p>&nbsp;<\/td>\n<td width=\"156\">as needed<\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<tr>\n<td width=\"186\">13. sign partnership offer<\/p>\n<p>&nbsp;<\/td>\n<td width=\"91\">partner candidate<\/p>\n<p>&nbsp;<\/td>\n<td width=\"156\">within ___ days of presentation of offer<\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<tr>\n<td width=\"186\">14. celebrate joining partnership<\/p>\n<p>&nbsp;<\/td>\n<td width=\"91\">all<\/p>\n<p>&nbsp;<\/td>\n<td width=\"156\">as needed<\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<tr>\n<td width=\"186\">15. set goals and expectations for new partner<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/td>\n<td width=\"91\">new partner + experienced partner<\/p>\n<p>&nbsp;<\/td>\n<td width=\"156\">at least annually<\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p><strong>your top candidates might not want to wait.<\/strong><br \/>\n<i>by marc rosenberg<\/i><br \/>\n<a href=\"\/\/www.g005e.com\/shop\/mr20rmp\/\"><i>the role of the managing partner<\/i><\/a><\/p>\n","protected":false},"author":1339,"featured_media":52068,"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":[1363,3120,3002,2266],"tags":[],"class_list":["post-83548","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-pro-member-exclusive","category-special","category-partner"],"acf":[],"yoast_head":"<!-- this site is optimized with the yoast seo plugin v24.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ 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