Succession Planning is Not a One-Time Event
Source: RedZone, Play of the Month
Excerpts below are reprinted with permission from Accountants Advisory Group.
- Succession planning should be an ongoing process that takes into account partner governance and compensation, marketing, and human resources. Here are some issues to consider as you implement it into your daily routine:
- Succession planning needs to start from the top. Holding partners accountable for implementing the firm's succession plan and compensating them accordingly are keys to the success of the plan.
- Reviewing and updating the succession plan at the annual partner's meeting is not enough. A firm succession plan must be practiced daily and taken seriously by all the partners, young and old.
- Recruit and retain the best entry-level and experienced professionals that the firm can identify.
- Establish formal staff career development and leadership programs, partner-in-training programs, and mentoring programs.
- Marketing and sales training is important to replace the loss of “rainmakers” who are retiring in the future.
- Establish a staff-centric culture, including compensation and reward programs that retain and motivate your most talented professionals.
- Establish relationships and dialogues with smaller and larger firms for possible merger transactions to ensure a successful succession plan.
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From RedZone, Play of the Month, Accountants Advisory Group LLC, www.accountantsadvisory.com, “Succession Planning — A Daily Routine,” August 2010.