Is Your Firm Immobilized by Politics?

Source: Partner’s Report for CPA Firm Owners

Here are the symptoms of a firm immobilized by politics, along with the remedies:

• Partners can’t agree on decisions. Leaders must demand accountability for espousing guidelines for achieving consensus.
• Partners are hampered by excessive rules and forms. Delineate decisions that partners can make and that must be approved. Eschew objections based on tradition, i.e., “That’s how we’ve always done it.” Ask questions like “Suppose we could change it? What would happen?”
• Partners praise ideas but have no intention of supporting them. The remedy is accountability. Partners must adhere to written action plans with due dates.
• Partners find fault with others. Get partners to work together.
• Decline in working hours along with a sentiment of entitlement. Get partners involved in solving issues, especially related to their special skills.
• Partners don’t deal with problems face-to-face, but talk behind peoples’ backs—this starts rumors. Leadership should make themselves approachable for discussions on problems and should be intolerant of rumors and gossip.
• Partners use their influence to spend funds in self-serving manners. Establish firm-wide budgeting for projects.
• Dishonest behavior. Punish violators of firm ethical standards.

How to handle partners who won’t conform:

• Never ignore them.
• The firm leader must handle them. Don’t rely on others to bring them into line.
• Don’t allow them to manipulate you. They will divert your attention from the problem and towards their virtues.

From Partner’s Report—the Monthly Update for CPA Firm Owners, July 2007, p. 6. For subscription information contact Institute of Management & Administration, Inc., 3 Park Avenue, 30th Floor, New York, NY 10016-5902. One-year subscription $399. 212-244-0360, [email protected].