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succession: the questions to care about

december 2, 2015

bonus checklists: 5 rules to govern a succession plan. 8 keys to an effective compensation system.

by bill reeb and dominic cingoranelli

we’ve seen a lot of frequently shared, misdirected advice on commonly discussed succession issues. we would rather stop focusing on symptoms and start focusing on resolving the root cause issues that a good succession plan should address.

more on performance management: 7 succession questions to ignore for now | hazards of not reallocating equity | develop your employees or suffer the consequences | how to target what skills to develop now | what having your employees’ backs means

our solution: the robust succession framework

first and foremost, good succession management is a function of good business operating practices. over and over, we find successful firms – including many that have even effectively retired partners in the past – that are overlooking some very important best practices.
read more →

7 succession questions to ignore for now

november 24, 2015

by succession institute

there’s some misdirection in succession management out there.

by bill reeb and dominic cingoranelli
卡塔尔世界杯常规比赛时间 / succession institute

you can’t go a week without seeing some article or blog focused on succession management and everyone seems to have a different opinion as to what is important when addressing succession. so, we thought it was time we challenged some of the more common misconceptions.

more on performance management: how partner ratings factor into equity | hazards of not reallocating equity | the pitfalls of equity allocation and reallocation | develop your employees or suffer the consequences | 5 harmful management attitudes (and how to fix them) | do cpa firms need management or leadership?

the first thing most authors want to focus on with succession is the development of future leaders. then the dialogue will shift quickly to mentoring programs, leadership training and more. well, it would be hypocritical for us to disagree with this because we actually develop and conduct these kinds of programs. however, training such as this is only valuable after many other issues are addressed first. so, while it is important, i guess the best phrase to describe this is “first things first,” and this is not first by any stretch of the imagination.

tax & accounting employment hits new highs

november 20, 2015

by 卡塔尔世界杯常规比赛时间 research

cpatrendlines jobs report tilt — join the survey. get the results.

by 卡塔尔世界杯常规比赛时间

the number of employees in the accounting industry keeps climbing and toppling old records. the latest data from 卡塔尔世界杯常规比赛时间 shows more than 40% of firms are hiring.

the 卡塔尔世界杯常规比赛时间 careers and hiring outlook

today’s bonus question: what’s the most important trait or skill needed to succeed in the accounting business?

join the survey. get the results.

in this report, 卡塔尔世界杯常规比赛时间 covers:

current hiring trends in each of the cpa, tax, payroll and bookkeeping segments of the industry, indicating growth and shrinkage among sectors.
average hourly wages for key segments, with trends in employee pay rates.
typical hours worked per week, showing utilization and productivity.
trends concerning women in the workforce, including hiring rates.
including 25 charts and graphs

nine factors for dividing the partner pie

november 17, 2015

by succession institute

how to decide who gets how much voting power.

by bill reeb and dominic cingoranelli

people who can lead, develop, train and supervise others are worth much more than those who can just make themselves faster, better and stronger.

equity ownership allocation is a critical success factor if you expect your firm to continue after you leave. for many firms, reallocation of equity ownership is or will be an important part of succession planning. while it can cause some anxiety for your owners’ group as you go through the process, it’s better to confront the issues now, to help ensure that your firm is in good hands after your leave. it’s not necessarily easy, but it must be addressed for long-term success.

more on performance management: hazards of not reallocating equity | the pitfalls of equity allocation and reallocation | develop your employees or suffer the consequences | cpa firm performance assessments: 15 core competencies, 21 questions | do cpa firms need management or leadership?

when you are deciding which partners should have more say (or less say, which is just as important), you need to consider issues such as whose judgment partners trust, who is pulling the wagon, who consistently acts in the firm’s best interest, or who is viewed as a current or future leader. with this in mind, here are nine areas to evaluate or each partner: read more →

the hazards of not reallocating partner equity

november 10, 2015

by succession institute

“this stage is usually when the crap hits the fan in many organizations.”

by bill reeb and dominic cingoranelli
卡塔尔世界杯常规比赛时间 / succession institute

let’s look at the common pitfalls we find with ownership distribution, using scenarios to drive home various points. let’s say we have a five-partner firm.

the ownership and age is as follows:

partner equity age

senior partner 1 (sp1) 35% 65

senior partner 2 (sp2) 35% 63

junior partner 1 (jp1) 15% 53

junior partner 2 (jp2) 10% 48

junior partner 3 (jp3) 5% 42

first of all, many firms would die for this kind of age split as – unfortunately – many firms have partners much closer in age than this 23-year range example. but continuing on, let’s say senior partner 1 (sp1) wants to retire at the end of this year. if this would occur as it does in many firms, we would be scrambling for additional partners. but for the sake of this discussion, let’s say we just addedjunior partner 3 (jp3) last year and we will add jp1 immediately after sp1’s retirement with an ownership interest of 5 percent.

so, if this were to occur without unusual intervention, the new ownership percentages would look something like this a year later:

when two partners isn’t enough and three is too many

october 27, 2015

by succession institute

the pitfalls of equity allocation and reallocation.

by bill reeb and dominic cingoranelli

i want to address the issue of equity – how it is commonly allocated to begin with, and then making adjustments to it over time.

for many firms, the idea in the beginning is that “all the partners are the same, so their ownership should be the same.” when the firm starts out with only a shingle, this is a very fair premise. so, for the sake of this column, let’s start out with a two-partner firm and build from there, talking through the common issues that arise in the area of distributing equity ownership.

more on performance management: develop your employees or suffer the consequences | cpa firm performance assessments: 15 core competencies, 21 questions | how to target what skills to develop now | what having your employees’ backs means | 5 harmful management attitudes (and how to fix them) | do cpa firms need management or leadership? | job 1 for the practice owner: client management

start with two

the most common approach would be for the two partners to split the ownership 50/50. the reason why this often works so well is because the two people who join together often are brought together because of their complementary skills. for example one might be very technically competent and the other more marketing savvy. together they make a great team – one, without the other, is less effective.

develop your employees or suffer the consequences

october 21, 2015

by succession institute

every employee, for developmental purposes, needs to directly report to somebody.

by bill reeb and dominic cingoranelli
卡塔尔世界杯常规比赛时间 / succession institute

you may have established a competency model for your firm, but how do you use it to develop your people? let’s walk through what an action plan might look like to drive that development.

it is common for firms to have talented partners and principals. depending on the firm’s size and organization structure, things start getting fuzzier from a competence perspective from there on down the organizational chart.

more on performance management: cpa firm performance assessments: 15 core competencies, 21 questions | how to target what skills to develop now | what having your employees’ backs means | 5 harmful management attitudes (and how to fix them) | do cpa firms need management or leadership? | job 1 for the practice owner: client management

for example, some firms have a strong management group with a gap in talent starting at the senior or supervisor level. others might experience their talent gap at the manager level because everyone who shows any self-starting initiative or promise is moved to a principal position early on. it doesn’t matter the size of your firm, you will likely be feeling a big gap or drop in talent somewhere in your organizational chart.

tax & accounting firms lead u.s. economy in growth rates

october 17, 2015

by 卡塔尔世界杯常规比赛时间 research

employment and hours trending up.

by 卡塔尔世界杯常规比赛时间

professional and business services such as accounting are emerging as a bright spot in our economy, according to 卡塔尔世界杯常规比赛时间 sources.

the national unemployment rate remains at 5.1 percent. total nonfarm payroll employment increased by 142,000 in september, with 31,000 of those jobs coming in professional and business services. overall job growth has averaged 198,000 per month, compared to an average monthly gain of 260,000 in 2014. in professional and business services, monthly job growth has averaged 45,000 in 2015, compared to an average 59,000 in 2014.

: accounting and bookkeeping employment hit the 1 million mark this year and keeps climbing.

in accounting and bookkeeping services overall, the industry continued its upward climb, reaching 1,014,600 employees. the peak reflects a gain of 5,400 or 0.5 percent in the past month, and 47,000 or 4.9 percent in the past year.

cpa firm performance assessments: 15 core competencies, 21 questions

september 29, 2015

by succession institute

checklist: how to fine-tune your own firm’s performance management systems.

by bill reeb and dominic cingoranelli
卡塔尔世界杯常规比赛时间 / succession institute

when evaluating people within a firm, “relative importance” is a way to differentiate expectations regarding the same competency for various levels within your firm. we decided the best way to drill down even further into a competency model was to share some of the details of our competency model with you.

more on performance management:how to target what skills to develop now | what having your employees’ backs means | 5 harmful management attitudes (and how to fix them) | do cpa firms need management or leadership? | job 1 for the practice owner: client management

it considers the following six levels within a cpa firm (each firm needs to choose whatever breakdown works best for them):

how to target what skills to develop now

september 22, 2015

by succession institute

bonus checklist: 12 competencies everyone in the firm needs.

by bill reeb and dominic cingoranelli
卡塔尔世界杯常规比赛时间 / succession institute

in discussing how to become a more effective people manager and developer, the first question we ask is, “what skills and aptitudes are you trying to develop?”

more on performance management: what having your employees’ backs means | 5 harmful management attitudes (and how to fix them) | do cpa firms need management or leadership? | job 1 for the practice owner: client management

in other words, just saying to someone, “you need to improve” is weak advice.

what having your employees’ backs means

september 8, 2015

by succession institute

why failure is a value proposition.

by bill reeb and dominic cingoranelli
卡塔尔世界杯常规比赛时间 / succession institute

i want to start by talking about the phrase “having your employees’ backs.” so what does this mean? simply that, as the boss, you will take the bullets publicly for your people’s mistakes. this is such a rare phenomenon that many of you have never experienced what i am referring to – a boss taking the heat for his or her people.

more growth & succesion: 5 harmful management attitudes (and how to fix them) | do cpa firms need management or leadership? | job 1 for the practice owner: client management

most of the time, when problems are uncovered, company cultures are “at the ready” to quickly identify someone to blame regardless of the situation. in these organizations, those with exceptional cya skills are the most highly valued. no, i did not misspell this acronym as it was not meant to be cia (as in the government intelligence agency or certified internal auditors), but rather those good at covering their butts (i guess i should have referred to it as cyb).

industry employment surge shows no signs of slowing

september 8, 2015

by 卡塔尔世界杯常规比赛时间 research

chart showing number of employees in the accounting industry according to bureau of labor statistics — all employees in the accounting and bookkeeping industry; numbers reported in thousands

record highs seen in overall employment, staff wages, cpa firm employment and staff, and more.

by 卡塔尔世界杯常规比赛时间 research

the u.s. tax, accounting and bookkeeping industries show no signs of slowing down, according to 卡塔尔世界杯常规比赛时间 sources.

here 卡塔尔世界杯常规比赛时间 reports on:

current hiring trends in each of the bookkeeping, tax, payroll and cpa segments of the industry.
average hourly wages for key segments.
typical hours worked per week.
and trends concerning women in the accounting workforce.