How Can Partners Avoid Declining Earnings?

Source: Accounting Office Management & Administration Report

Rita Keller* says that "some partners have become 'fat and happy,' complacent because their incomes have skyrocketed in recent years with relatively little effort from them." She lists some intriguing thoughts about partner behavior:

• If your team members had the guts to be honest with you (the firm management team), they would say that they are anxiously awaiting the retirement of some older, non-productive, difficult, and even incompetent partners.
• In this economy, I am hearing it said (usually by baby boomer partners), "Now I'll have to work until I'm 90!" And I think they are actually happy about the prospect.
• Put these two together and you have troubles down the road.
• Partners need to push back the routine review they do in busy season (something that has needed to happen for years for some partners), and actually use their more expensive "consulting service codes" to mentor, counsel, and focus their clients on the issues of business survival.
• I am also hearing that partner income will be flat or decrease, an even bigger motivator for partners to welcome the economic challenges of their clients and get on the phone immediately to remind clients of their expertise.
• The old attitude of "clients don't want what we offer--compliance work, a tax return, or a financial statement"--will diminish, and clients will actually want and need you to help them weather the economic storm.
• It is a great opportunity for partners to teach managers and staff how consulting actually works. Get them involved: They haven't been through times like this before (just like many of your clients).

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From Accounting Office Management & Administration Report, Institute of Management and Administration, Inc., Newark, NJ, [email protected], August 2009, p. 2, "Keller's Comments: Opportunities for Partners to Turn Over a New Leaf."

*Rita Keller is a CPA firm management consultant working with firms nationwide. She is president of Keller Advisors, LLC and can be reached at 937-424-3333 or [email protected].