Decades ago Peter Drucker observed that “culture eats strategy for breakfast.” Fewer business maxims have proved to be more accurate. However, when it comes to developing a business strategy for an accounting firm, success often depends on the partners’ willingness to accept culture change. Let’s look at a few examples: Specialization — As firms move…
Perhaps the most pivotal role in an accounting & advisory firm is the client service partner, sometimes called a relationship partner. These are generally the audit partners who have overall responsibility for the client relationship. These roles are defined in terms of revenue responsibility, new business, staff development, technical abilities and so forth. But it’s…
Interviewing stakes are highest when the candidate is a lateral partner. This makes the quality of the interview critical. Here are some key issues and questions organized by the prospective role of the lateral partner candidate. Client Service Partner Partners in this role make up the overwhelming majority of the partner group in all firms.…
Several years ago, we ran a series of staff focus groups for a professional services firm that was struggling to engage its staff. It wasn’t a sweatshop by any means. The culture was best described as: (1) high on accountability — aka measurement, (2) driven by utilization — aka hours, and (3) heavily crediting tenure…
Many accounting & advisory firms have programs that give bonuses to staff for sourcing candidates for open positions. In some cases, these programs are highly successful, in many they are not. What makes the difference? The answer is culture. The companies that do this well begin the process before staff join the firm. During recruiting…
Most Accounting & Advisory firms were founded by managing partners who were great rainmakers, developing a disproportionate part of the firm’s new business. Some of these legends are still in place. Most have been succeeded by future generations of managing partners who are heavily involved in firm management, particularly for firms that have reached a…
Why do larger accounting & advisory firms grow faster organically than mid-size firms? Believe it or not, the main reason is how they develop their managers and their partner admission standards. Back in the 1980s when Big 8 firms first started hiring lateral talent, they applied a new standard: asking lateral senior managers to…
Fifteen years ago Tom, a partner in a national accounting & advisory firm and leader of a specialty practice group, was attending his firm’s annual partners’ meeting. As he listened to the managing partner Steve’s address on firm strategy, he heard the words: “and partners, we may even tinker a bit with our old friend…
As we work with our clients on business strategy, we see a consistent trend: young star performers at the partner, senior manager and director levels who are not being used to their highest potential. The forum for these observations is work-stream meetings where we get to see practice leaders present their business areas and…
By next June, our economy will be 72 months into the current economic expansion. That’s a long time. And the expansion has been heavily stimulated by a lot of government intervention in the forms of hard cash to bail out major financial institutions, low-interest rates and record government spending. We’re not predicting an imminent…