A System for Partner Accountability
Source: Journal of Accountancy
In this article, authors Dom Cingoranelli, Jennifer Wilson, and Bill Reeb outline steps necessary to drive partner accountability. According to a recent survey by the AICPA Private Companies Practice Section, “partner accountability and unity” was the top concern among firms with 21 or more partners and the number two concern among firms with 11 to 20 partners.
To achieve partner accountability, firm leadership needs to set up a system and obtain partner buy-in. The latter requires “persuasion and perseverance to convince partners to accept and commit to a system that grants someone the power to hold them accountable for meeting performance expectations.” Partners should agree to regular reviews of their goals, which should be updated regularly to reflect changing roles and responsibilities, as well as economic and market changes.
The system should:
- Set realistic, measurable goals with each partner. Supervisors should accomplish this by holding individual goal-setting meetings at the beginning of each fiscal year and putting the agreed-upon goals and metrics in writing.
- Provide for continual communication and feedback. The authors recommend monitoring partner progress with quarterly (or more frequent) check-in meetings, high-level written status summaries, to-do lists, practice management system reports, and other techniques.
- Establish rewards and sanctions. Rewards might include bonuses, promotions, or public praise. Sanctions might include private reprimands, pay reductions, demotion, or termination.
The article includes several examples, a list of sample partner goals, and ideas for check-in meetings.
For the complete article, read “How to drive partner accountability and unity.”
From Journal of Accountancy, American Institute of Certified Public Accountants, February 2013, http://www.journalofaccountancy.com/Issues/2013/Feb.