Dealing With Problem Partners

Source: Partner's Report

Problem partners can hurt a CPA firm unless steps are taken to address the problem. This article offers tips for dealing with three types of problem partners:

• Unproductive or unaccountable partners. For partners whose practice areas are languishing, consider moving them into more active areas. If a partner has trouble with marketing or time management, tailor marketing activities to his or her personality or provide training. Examine how compensation plans reward good performance or punish poor performance. Face-to-face discussions with the partner are critical to identifying the underlying problem.
• "I refuse to compromise" partners. Potential solutions include "pulling rank" by the managing partner or executive committee and redistributing responsibilities to reduce the partner's influence. If the problem partner is the managing partner or handles the firm's largest client, the remaining partners "may have no choice in the short run but to go along, and to consider their longer-term options."
• Partners under the influence. For partners with substance abuse or gambling problems, make sure they get professional help, providing a period of leave if necessary.

If these problems can't be resolved, it may be necessary to separate from a problem partner to protect the firm's health and future.

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From Partner's Report, The Monthly Update for CPA Firm Owners, Institute of Management and Administration, Inc., [email protected], April 2010, p. 1, "Three Varieties of Problem Partners -- And How to Deal With Them."