The Finance Side of Goals and Compensation

Man counting $100 bills into three pilesRemember the "one firm" concept is at the core of this discussion.

By Tommye Barie
The Succession Insitute

Previously we reviewed the goal-setting process, including which person or group should orchestrate which parts of it. Now we will conclude the discussion by walking through the financial side of assessing goal accomplishment and how it works when considering actual firm profits.

MORE: The Partner Comp Battleground | If You Don’t Eat What You Kill, What Do You Eat? | 3 Ways to Emphasize the One-Firm Concept | 8 Steps for a Successful Change Process | Building Competency on Every Level | Change Happens: How to Master It.
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Let’s start with some statistics from our latest Succession Planning survey, which we did in partnership with the AICPA’s PCPS. The following tables show information regarding compensation systems, broken down by size of firm (by full-time equivalent [FTEs] which includes everyone, from administrative to staff to partner): READ MORE →

The Partner Comp Battleground

Businesswoman holding giant dollar symbolWho decides and how, including setting and monitoring goals.

By Tommye Barie
The Succession Insitute

Previously we reviewed the goal-setting process, introduced how the managing partner should orchestrate the partner goal-setting process and discussed why the goals should be based on normal expectations of any partner rather than on the exceptional performance of a specific partner. Now let's discuss who is in charge of what parts of the compensation-setting process and more.

MORE: If You Don’t Eat What You Kill, What Do You Eat? | 3 Ways to Emphasize the One-Firm Concept | 8 Steps for a Successful Change Process | Building Competency on Every Level | Change Happens: How to Master It.
GoProCPA.comExclusively for PRO Members. Log in here or upgrade to PRO today.

Who’s in charge of what parts of compensation?

Once the decision has been made to implement systemic changes to hold partners accountable to specific performance expectations rather just relying on everyone to put in a self-proclaimed “good day’s work,” the next battleground is how compensation is determined and who is responsible for which parts of the process.

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What Happens When You DON’T Push Work Down

Pile of documents on desk stack up high waiting to be managed."Stop defaulting to asking every talented person you have to work more hours doing stuff other people can and should be doing."

By Tommye Barie
The Succession Insitute

As we said in our previous column, Why You Must Constantly Push Work Down, we are talking about how firms will need to alter their thinking regarding outsourcing, administrative support and the administrative time of partners and managers. We discuss how the lack of delegation impedes competency development, why partners working more hours end up creating a weaker bench, and more.

Outsourcing

In this case, we are talking about outsourcing offshore. For many years, firms turned away from this idea because of the fact that they need to inform their clients that the services they provide were not 100 percent made in America. And most of our firms would say something like, “Our clients won’t tolerate us shipping their data overseas” or “Our clients will leave us if we outsource some of our work to India or China.” Both of those statements continue to be proven wrong every day.
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