Causes of Partner Departures

Source: Partner’s Report

Here are some reasons why partners leave:

• Different views on:
  • Growth.
  • Importance of marketing.
  • Strategic decisions. (Participative strategic planning may neutralize many conflicts.)
• Conflict between rainmakers and technicians. (Partners need to learn to appreciate each other’s strengths and contributions.)
• Conflict between tax and audit, etc. (Adopt and instill a philosophy that clients belong to the firm, not to individual partners.)
• Weak leadership. Characteristics of weak leaders include:
  • Defensiveness.
  • Egocentricity.
  • Suspiciousness.
  • Inflexibility.
  • Too flexible.
  • Pettiness.
  • Insensitivity.
  • Deceitfulness.
  • Too autocratic.
• Ambiguity in, or absence of, a partnership agreement.

From Partner’s Report—the Monthly Update for CPA Firm Owners, March 2008, p.1, "Workplace Issues." For subscription information contact Institute of Management & Administration, Inc., 3 Park Avenue, 30th Floor, New York, NY 10016-5902. One-year subscription $449. 212-244-0360, [email protected].

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