partners as role models: the good, bad & ugly

two older businessmen talkingaccountability and reviews are more important at higher levels, not less.

by bill reeb and dominic cingoranelli

evaluation of performance and goal achievement is something done that should be performed multiple times during the year. unfortunately, many cpas tend to think of management as a waste of time, and evaluations as purely a human resources requirement created by the government to protect employees to the disadvantage of the organization.

more on performance management: how to implement strategy, step by step | how the best managing partners turn ideas into reality | make accountability a process | accountability requires clear expectations | base retirement on today’s operations | how involved should retired owners be? | how to find a partner’s replacement

well, that is one way to look at it. but we think it’s the wrong way.
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integrating partner comp with strategic planning

businessman shooting arrows at targetwhy firms fail at strategic planning and how it relates to compensation.

by marc rosenberg
partner comp: art & science

the majority of firms under $10 million don’t have a proper written strategic plan, with partner goals, in place.

more on partner compensation: 3 non-performance-based comp systems | the 3 best partner compensation formulas | 11 points in designing a partner comp system | what partners earn and how they earn it | partner compensation: an art, not a science | why most partner comp systems are performance-based

a proper strategic plan should include these features:
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how to implement strategy, step by step

businessman's shoes toeing words "what's your next step?"be specific and find ways to “catch” the partner in action.

by bill reeb and dominic cingoranelli

an example of the process

it’s one thing to say “the managing partner implements strategy,” another to put it into action.

more on performance management: make accountability a process | pay varies when performance varies | accountability is for everyone | who decides what? | firms say what would change retirement pay | action plans for transitioning partners | how retirement issues affect succession planning | how partner ratings factor into equity | develop your employees or suffer the consequences

following is an example of this process, providing more detail to show how it might look in actual practice. let’s assume that one of the goals of a partner is to increase the most trusted business advisor activity for his or her top clients. in the initial goal sheet, for this one goal from the managing partner, that might look like this:
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crash course: operating a compensation committee

business people working in office18 lessons to take to heart. and a few words of warning.

by marc rosenberg
partner comp: art & science

operating a compensation committee isn’t for the faint of heart. here are points all members would do well to heed.

more on partner compensation: 5 other systems for paying partners | the 3 best partner compensation formulas | 11 points in designing a partner comp system | what partners earn and how they earn it | how partners view compensation: it’s not all about the money | why most partner comp systems are performance-based

1. the partners must understand the heart and soul of the compensation committee (cc) approach: the system can only work if the people being judged are willing to trust the judges. period. if the partners aren’t comfortable with this, they should not use the cc.
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how the best managing partners turn ideas into reality

man and woman in meeting across deskapproaches can differ dramatically from one partner to another.

by bill reeb and dominic cingoranelli

how can the managing partner operationalize the strategy within the policies, process and budget set forth by the partner group?

more on performance management: accountability includes partners | accountability requires clear expectations | base retirement on today’s operations | how involved should retired owners be? | how to find a partner’s replacement | best practices for mandatory retirement | 7 succession questions to ignore for now

to keep this simple, because it can get very complex extremely fast, let’s say that the firm has three strategies the partner group has mandated:
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