What Kind of Firm is Yours?

Source: Accounting Today

L. Gary Boomer, Boomer Consulting, Manhattan KS, describes two kinds of firms: “Shared vision” firms can grow exponentially, while “shared service” firms generally grow only incrementally.

Shared vision firms have at least nine of the following 13 characteristics:

1. A strategic plan to which all the members are committed
2. Professional management
3. A CEO or managing partner
4. Partner compensation based on achievement of objectives beyond charge hours and business controlled, including:
   1. Management of the firm or an office
   2. Management of people
   3. Development of others
   4. Practice development and client service improvement
   5. Development of systems and procedures
5. Succession and retirement plans
6. Technology viewed as a part of the firm’s strategy, rather than as overhead
7. Policies, standards, and procedures are formalized
8. Partners who comply with the above

Shared service firms can succeed; however, they tend to focus on the partners rather than the entire firm.

From Accounting Today, July 25, 2005. For the complete article click on the following link: http://www.webcpa.com/article.cfm?articleid=13817&;pg=acctoday.