Passing the Leadership Baton
Source: Accounting Today
In this article, Jennifer Wilson addresses the challenges that are arising for CPA firms as Baby Boomers reach retirement. According to Wilson, many firms facing the transition from older leadership to new younger leadership are currently operating with a considerable amount of unspoken tension stemming from each group's fears and expectations about the transition of leadership.
Here are some concerns she identifies from each leadership group:
- Retiring leaders:
- Insufficient funds for retirement
- Decreased influence on firm decisions
- Loss of business and friend connections
- Uncertainty about personal purpose in the future
Rising leaders:
- Unsure of how to take on leadership, needing guidance to do so
- Facing a future they are unable to influence because they currently lack decision-making power within the firm
- Concern that the financial requirements of the current leadership's retirement agreements are more than the firm can realistically support
- Having to move forward without the business relationships and experience the retiring leaders brought to the team
- Being left with an inexperienced or less talented staff to lead
- Having to wait to reap the rewards of their hard work, while other partners experience immediate financial benefits
Wilson believes there are ways to resolve these tensions if each party is willing to consider the other's needs, wants, concerns, etc. She encourages firms to provide an opportunity for both sides to express their perspectives about the coming changes in order to reach resolution and move forward with healthy communication and clear expectations.
For the complete article, read “Crossing the great divide.”
From Accounting Today, January 1, 2011, SourceMedia Inc., One State Street Plaza, 27th Floor, New York, NY 10004, 800-221-1809.