Tough Love or Team Play?

Maybe they’re both right!

rita-keller-photo-mug.jpgmark-bailey-07.jpgMark Bailey (pictured at left) at Mark Bailey & Co. and Rita Keller (pictured at right) at BradyWare are having a spirited discussion about ranking employees based on performance and value to the firm, and then being frank with them about where they stand in the rankings.

Rita agrees with the Moss Adams method, and quotes CEO Bob Bunting as saying:

To build your best talent, rank everyone to identify who the best are now. Rank people by the criteria that are valued by your firm. Tell people where they stand in the ratings and then invest in the top-level rated people. These staff should get the best mentors and assignments, faster promotions and extra leadership training.

This may make some firms nervous about losing people in an environment where every pair of hands is seen as necessary now, even those of poor performers. Partners should consider how staff will react to this approach. Staff see this as a motivator for them to get higher rankings. At Moss Adams, no one quit. They wanted to know how to be better. We paid attention and gave the kind of feedback they wanted.

Mark counters:

We’ve chosen a different direction. One that minimizes competition, micromanagement, and places responsibility on the professional knowledge worker for their own career and development. We have virtually no turnover; a waiting list of professionals who have applied to join us; and a professional staff that is unparalleled in expertise, committment, and personal development. Most came from national firms. I’ve heard their comments (and they are invariably negative) regarding published rankings of charge hours, realization, etc., and the culture it engenders.

… Which just goes to show that every firm is different and Vive la différence!

See the original posts at Rita’s CPA Management and Mark’s Innovative Practice Management blogs.

FOLLOW-UP: Bob Bunting writes to make absolutely clear: “You are referring to our practice of annually rating staff 1-10 on overall performance. We do not ‘publish’ those ratings for all to see. We do share each person’s ratings with them individually.”

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Posted at March 13, 2008
Filed Under BSG [CPA TRENDLINES] | Leave a Comment

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