Advice from Prominent CPA Firm CEOs

Source: Possibilities for CPA Firm Leaders

In Las Vegas recently, CEOs from some of the best-known, non-national firms in the world talked about what worked for them. Their wisdom applies to much smaller firms too. The following is reprinted with permission from Possibilities for CPA Firm Leaders.

CEO #1—Tim Christen of Virchow, Krause & Company, LLP, with revenue of over $200 million:

As a profession, we must raise the bar on partner performance. The MP must use “Intense candor” about each partner’s personal performance.

In dealing with partners, Tim’s responsibility is to communicate in a style he describes as: “Difficult messages delivered with love.”

The only reason for a partner not to accomplish their goal is their funeral.

VK has admitted 18 “direct admit” partners in 18 months (partners making lateral moves from other firms. Big Four, etc.). From the beginning, it is clearly stated that they MUST get on board with the firm culture and, again, Tim communicates this with “intense candor.”

About people: It is not that your people (Millennials) don’t want to work. They want to know what they are working for.

About firm growth: It takes focus and quality. Hope is not a strategy.

CEO #2—Tom Marino, CEO of J.H. Cohn, LLP. J.H. Cohn, LLP has over 1,000 people with the biggest concentration in New York and New Jersey.

Here’s what Tom says about “Raising the bar on partner performance.”

• Keep them hungry.
• Individual goals tied to firm strategy.
• Incentive-based compensation—No element of seniority.
• Always room for good people.
• Act when you need to remove a partner.
• No BS—Let a partner know where they stand.

Tom has great insight on the evolution of the CEO Role in an accounting firm:

• Change from being “partner of the people” to “best interests of the firm.”
• Change focus for what you do (did) to what must be done.
• Empowerment of partners—Put partners in charge of offices/departments and let them run with it.
• More focus on the profession and strategic thinking.
• Firm evolved to a true “corporate structure.”

CEO #3—We turn our attention to another CEO of a very large accounting firm, Sandy Manson. And while there is something definitely different about this CEO, the issues will sound very similar to the other CEOs featured this week.

I guess I should say TWO differences, first of all, his firm, Johnston Carmichael, is in Scotland. Secondly, I can attest to his expertise, experience and charisma because he’s a much admired friend of mine and I was so proud to see him featured at the Winning is Everything Conference.

Here’s what Sandy had to say:

• Develop a vision that excites and ignites your people.
• Be generous with your team—pay 30% of first-year fees for new business.
• You must have a fast-track to ownership for your stars.
• Be sure your young talent can “see” vacancies at the top.
• Partnership does not come from seniority—have a rigorous partner selection process.
• Your firm is not a community association—it’s a business—run it like one.
• If you are making the transition to a new CEO, be sure that person has a visible “100 day plan” to “develop a vision that excites and ignites the people.

This article was reprinted with permission from Possibilities for CPA Firm Leaders, (February 4, 2008) the Blog of Rita Keller, shareholder of Brady Ware, a nationally known regional CPA firm. Rita is also a nationally known consultant, speaker and author on CPA firm management. Visit http://cpamanagement.blogspot.com/.

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