Who Should Lead Your New Niche?

Source: Practical Accountant

There is a good chance the leader of a new niche will come from outside the firm. Reasons to look to the outside include:

• It is difficult for an existing partner to maintain a client base and workload while developing a new niche—one that will probably require all his or her time.
• Sometimes the leader will be an industry expert, not an accountant.
• The leader may be someone who already has a contact network and other resources such as report forms, checklists, research wherewithal, etc. He or she may also have contacts who can be hired to work in the niche.
• An outsider may have a reputation that inspires internal people to work in the niche. This can help develop staff passion for the niche.
• An established outsider can train people in the firm.
• Qualified inside people are less likely to be accepted by clients than an established outsider.

One firm hired a CFO from a local construction contractor to lead its construction niche. He had previous public accounting experience, a strong network within the industry, and the perspective of a client.

Sometimes the best path is to form a strategic alliance rather than build an internal capability.

Reasons not to go outside:

• You may get the niche running faster using an inside leader.
• If you already have some degree of concentration in the niche area, finding an inside leader may be easier.
• A non-accountant may not be as compatible with the personalities of the typical accountants or the firm’s culture.
• If the new leader is not a partner or owner, staff and other partners may not believe the effort is wholeheartedly supported by the firm. It is crucial to get all the partners to buy into the idea of the new niche.

Whether the person is from the outside or inside, the crucial factor is that he or she wants to lead the niche. Having expert technical qualifications does not make a person a leader.

For the complete article, click here and select the article They Are The Champions. From Practical Accountant, November 2007, SourceMedia Inc., One State Street Plaza, 27th Floor, New York, NY 10004, 800-221-1809.