How One Firm Plans for Succession

Source: CPA Practice Management Forum

Michael Swaim, managing director of SwaimBrown P.A. in Spartanburg, South Carolina, identifies three keys to succession planning:

• Developing future leaders.
• Working with current partners to prepare them for leadership.
• Communicating with clients.

The following apply specifically to the environment and culture at SwaimBrown but may be applicable to many other firms.

Future leaders may initially be skeptical—apprehensive about what their commitment means and uninformed about the firm’s future and that of the accounting profession. As a remedy for this problem, the firm provides leadership training from its association, PKF North American Network. The training is appropriate for all managers and partners, including the managing partner. Training objectives include:

• Enhanced appreciation of the accounting profession.
• Self-analysis of leadership techniques.
• Evaluation of personal strengths and weaknesses.
• Development of a support network within PKF.
• Creation of the foundation for evolution from follower to leader.

Current partners must be trained by leaders once they have set probable dates for retirement. This can start with a gradual increase in specific client responsibilities. The process may include suggesting to specific clients that they are welcome to request changes in lead partners.

Younger partners should be induced to become coaches and mentors to others in the firm. This not only prepares the young partners for leadership, it prepares the firm to recognize them as leaders.

Identifying and training the successor to the managing partner should start three years prior to the expected retirement date.

Clients should be prepared for retirement of partners in charge of their accounts. If they haven’t asked about it, they should be informed perhaps three years prior to the expected date. Their friendship with, and trust in, the partner isn’t easily transferred, so the process must be gradual.

To read other articles on this subject from our archives, click on this link: Practice Management Index and scroll down to Succession Planning. You will find several articles on this subject.

From CPA Practice Management Forum, CCH Incorporated, 800-449-8114, January 2007, p. 5.