Vol. 6 No. 5, May 2014
The Leadership Forum is a panel of the most prominent thought leaders in the profession. Each month we ask them to respond to a question dealing with CPA firm management and leadership.
This month's question is:
Does tying partner compensation to strategic initiatives really work? Should firms spend more time meeting with their partners on how their performance was rated, and what should be the ultimate objectives of these meetings?
Consultants and Other Prominent Observers
| August Aquila | AQUILA Global Advisors, LLC | www.aquilaadvisors.com [email protected] |
| ...The real issue is this: If a firm spends time to develop a strategic plan then doesn't it make sense for the firm to reward those partners that help the firm achieve their strategic goals, more than those that don't. Also, if you don't provide partners with some guidance as to what they should be doing during the year, they will do what they think is best. And it may not be best for the firm!... More | ||
| L. Gary Boomer | Boomer Consulting, Inc. | www.boomer.com [email protected] |
| Only in firms that are willing to hold partners accountable. It all starts with the firm vision (strategic plan) and the commitment of the partners to be managed. All people, including leaders, need to be managed if they expect optimal performance... More | ||
| Terrence Putney | Transitions Advisors, LLC | www.principa.net [email protected] |
| ...The most effective way to manage partner performance is at the individual plan level. The firm's strategic initiatives and an individual partner's role in executing those initiatives need to be reflected in the individual plan and that should drive a portion of the partner's compensation... More | ||
| Marc Rosenberg | The Rosenberg Associates | www.rosenbergassoc.com [email protected] |
| There are two types of CPA firms: Those that are strategic planning-driven and those that are production driven. Strategic planning-driven firms' model is to create a vision for where the firm wants to be in 5 years and work to achieving that vision. These firms believe that successful pursuit of this model leads to growth, profitability and success. The strategy of production-driven firms is simple:... More | ||
| Jennifer Wilson | ConvergenceCoaching LLC | www.convergencecoaching.com [email protected] |
| ...Yes, the managing partner, or in larger firms, service line leaders should meet with partners at least semi-annually, but ideally quarterly, to review performance, discuss roadblocks and agree on new expectations... More | ||
Firm Leaders
| Ed Fahey | RINA | |
| As with most things, it works for a good percentage of the group. These are the ones that are aligned with the vision and impact of the initiatives. It has taken 3-4 years for the system to be accepted and better executed at our firm... More | ||