This is the second in of a series of blogs on the subject of accounting firms and their operating models: Centralized Model Locally Integrated Model Regionally Integrated Model Nationally Integrated Model Federated Model The locally integrated operating model: This is when firms establish satellite offices in areas close to the firm’s central office. A good…
Firms in the accounting industry have been expanding rapidly over the last few years, both organically and through mergers and acquisitions. This has included significant geographic expansion beyond the firm’s core location. As this pattern continues, it is becoming imperative for firms to commit to one of several operating models to enable strong governance, attract clients…
We all know the classic management principle: “what gets measured gets done.” This maxim has been around so long that no one is sure who said it first. Is it correct? Not always. It is clear that measuring results is not enough. You must also reward them. Let’s modify the management principle to: “what gets…
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…
We’ve just completed a series of three blog posts on behavioral interviewing, each focusing on different levels of candidates. It’s a good time to point out that there are actually three key aspects to interviewing: Selling the firm — At the end of the day, when it comes to the best candidates, you are interviewing…
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…
When interviewing experienced staff, the key is to understand their behaviors in the context of their experience. Here are three examples of good questions to help you do this. As you read them, you’ll notice that the questions are actually statements rather than true questions. They are open-ended — making the candidate think and synthesize…
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…
“It’s the staff, stupid”, to use Clinton-like lingo to get to the point. Our clients universally sub-optimize on their greatest asset, their people. Let’s review the elements of a great staff program for the accounting & advisory industry: 1. A strong mission statement and employee value proposition linked to the statement. The specifics will differ…