Managing Partner Lessons
Source: CPA Practice Management Forum
An effective managing partner (MP) is critical to a CPA firm's success. Yet most new MPs enter the job with little training and few mentors to guide them. In this article, consultant Gary Adamson suggests that MPs begin by dividing their responsibilities into the following seven categories and determining which can be delegated.
- Running the business. Generally, MPs should delegate tasks such as cash management, human resources, technology, and facilities management to a firm administrator or other staff member and provide appropriate oversight. Time commitment: 10 to 15 percent.
- Client service. MPs can't be effective if their client load is comparable to that of other partners. They should move some clients to others in exchange for compensation guarantees that allow them to rebuild their book of business after their tenure as MP ends. Time commitment: No more than 25 percent.
- Marketing/new business development. In addition to bringing in new clients, MPs should explore opportunities for growth through M&A activities and hiring high-level talent. Time commitment: 15 to 20 percent.
- Partner issues. MPs are responsible for partner coaching, goal setting, accountability, compensation and other partner issues, with limited assistance from a firm administrator or other staff member. Time commitment: 10 to 15 percent.
- Firm governance. MPs are responsible for the smooth operation of the firm's governance structure and making sure the right people are in the right jobs. Time commitment: 10 to 15 percent.
- Strategic thinking. MPs need to think about big-picture strategy, challenge the status quo, and ask the tough questions. Time commitment: 5 percent.
- Outside firm voice. The MP is the “face” of the firm – media relations representative, firm spokesperson, firm event host, firm association representative, and so on. Time commitment: 5 to 10 percent.
For the complete article, read “Management Essentials: Managing Partner 101.”
From CPA Practice Management Forum, CCH Incorporated, 800-449-8114, December 2011, p. 5.