| Source: CPA Practice Management Forum
Firms with managing partners who do not have a book of business tend to be more successful. But managing partners often get bogged down in administration instead of leading the firm. The managing partner should be:
- Developing a strategic plan. People should be held accountable for achieving the strategic initiatives. This is far more effective than comparing results to the budget.
- Filling jobs with people suited to them. Try the Kolbe index.
- Managing revenues per FTE by benchmarking the current level. Include all personnel. If partners work too many hours, they get burned out and the firm loses leverage.
- Creating a culture in which everyone teaches and learns. Include the standard accounting and auditing CPE, but add technology and soft skills.
- Developing processes including workflow and scheduling. Beware of allowing each partner to use his/her own processes.
- Delegating responsibility along with the requisite authority. Beware of the “no one can do it as well as I” syndrome.
- Developing written policies and procedures for firm functions. Compare them to best practices of peer firms.
- Making your firm different from the competition, particularly in the area of setting standards for creating value for clients.
- Managing cash flow. Agree with clients up front on your cash payment expectations. Consider progress billing, frequent billing, and deposits.
- Promoting the idea that clients belong to the firm, not to the partner. Without such promotion, cross-selling suffers.
From CPA Practice Management Forum, CCH Incorporated, 800-449-8114, February 2006, p. 8. |
