Ten Ideas for Becoming a Better Managing Partner
Source: CPA Practice Management Forum
1. Compare abilities of your staff with job requirements to make sure there is a fit. Use testing such as the Kolbe Index. Make sure poor fits are remedied quickly even if it means discharging people.
2. Set standards for revenue per FTE. Meet standards by, among other things, avoiding over-hiring during tax season, and compounding the problem by retaining the people afterwards. Use temporary people or outsourcing.
3. Emphasize training. Include soft skills and technology, as well as the traditional CPE material. Focus on systems and best practices. Don’t overlook administrative personnel and partners. They need training. Everyone in the firm should teach as well as learn.
4. Systematize every process in the firm. Don’t allow each partner to use his/her own systems.
5. Your strategic plan should be the focal point of the management process. Focus on strategic objectives, action plans, and performance metrics, and spend less time on mission statements.
6. Delegate. You don’t need to be involved in every initiative, and neither do your partners. Find people who have unique abilities better than yours in specific areas, and delegate the responsibility and authority necessary to get the job done.
7. Standardize as much as possible. Procedures and policies should be written and enforced. Use task forces to develop standards. Task forces can be involved in determining best practices of other firms.
8. Clients need to be wowed by your service. Make sure your service conforms with clients’ expectations, and is delivered on time and courteously. Always discuss fees and terms of service prior to beginning work.
9. Focus on cash flow. Up-front discussions with clients on payment terms will help. Implement progress billings, and obtain deposits whenever possible. Deliver bills with the statement or tax return, in person if possible.
10. Clients are the best market. Success with clients allows you to sell them more services, and to ask for and get referrals. Listen to your clients to learn their problems. This will open opportunities for more services.
From CPA Practice Management Forum, CCH Incorporated, 800-449-8114, March 2005, p. 4.