How to drive consistent results.
By Domenick J. Esposito
8 Steps to Great
Presented below are excerpts, including some illustrations, of two forms to be used to drive consistent partner behavior:
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Here’s a simple way to implement your distribution plan.
By Domenick J. Esposito
8 Steps to Great
Let’s say your firm has five offices that handle audit/tax compliance services and two advisory and consulting lines of business (tax consulting and management consulting). Let’s refer to them as business units and let’s also say that net profits were generated as in the chart at right:
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Let’s keep the example simple. Let’s assume that each of the seven business units is self-sustaining, and that certain high-performing business units do not have to “give” profits to others and that lower-performing business units do not have to “take” profit from others.
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Five management objectives to address.
By Domenick J. Esposito
8 Steps to Great
“Show me your compensation plan and I’ll show you your strategy.” – Dom Esposito
As you strive to become a mid-market sustainable brand, your firm needs to become a performance-driven organization if you want to take advantage of future opportunities and drive growth and profitability. An effective performance management and compensation plan (PMCP) is critical to making your firm’s strategic plan a reality.
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The basic premise is that compensation rewards first look to:
Six areas for evaluation.
By Domenick J. Esposito
8 Steps to Great
Once you have attracted a new partner or a lateral, the next question is: “What do I need to do to develop my existing partners?”
Exclusively for PRO Members. Log in here or upgrade to PRO today.Here is where I find so many CEOs, managing partners and other senior partners falling short.
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Your efforts have implications. Don’t assume everyone is as prepared as you are.
By Domenick J. Esposito
8 Steps to Great
“If you pick the right people and give them the opportunity to spread their wings – and put compensation as a carrier behind it – you don’t have to manage them … This whole game of business revolves around one thing: You build the best team, you win.” – Jack Welch, former CEO of General Electric
Now that you are equipped with a strategic plan that is realistic and focused on implementation and accountability, and you have a sound governance and economic model, let’s chat about what else it takes to build a mid-market sustainable brand.
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It begins by recognizing that all partners are not created equal. You need a combination of
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Accountability is key.
By Domenick J. Esposito
8 Steps to Great
In my experience, making sure that your economic model becomes reality only happens with persistent and consistent accountability.
Exclusively for PRO Members. Log in here or upgrade to PRO today.To achieve accountability, I recommend three management tools that will help you create focus and improve performance:
Take a hard look at your partners.
By Domenick J. Esposito
8 Steps to Great
Let’s take a deep dive into both a firm’s partner mix and its compensation model.
Exclusively for PRO Members. Log in here or upgrade to PRO today.In a “Good to Great” research study on high-performing organizations performed by Jim Collins, it was concluded that the method of compensation, as a causal factor for high and sustained performance, is largely irrelevant. The study concluded that whatever system is in use, it simply must be rational and equitably managed and that high sustained performance is largely the result of doing many things well.
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Don’t stay attached to traditional models that no longer suit you.
By Domenick J. Esposito
8 Steps to Great
When it comes to growth, two of my core beliefs are:
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The proof is in the pudding.
The difference between the disruptor and the disrupted.
By Domenick J. Esposito
8 Steps to Great
I was recently asked, “Why is growth important?”
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My short answer was that it comes down to perspective – do you want your firm to be relevant and be a disruptor or do you want your firm to be irrelevant and be disrupted because, without growth, your firm will certainly be the latter.
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Six types and how to move them.
By Domenick J. Esposito
8 Steps to Great
“Tiger Woods did not always win majors with ease; after his narrow victory in the 1999 PGA, he slumped and sighed as if he’d been carrying rocks uphill all afternoon.” – John Updike
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A CPA firm must move many rocks that are on the path to growth. If a firm doesn’t effectively address these rocks, it will not be able to grow at a satisfactory rate.
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