Paying for Current vs. Historical Performance

Two businessmen running together in officeDo you value originated and inherited book the same?

By Marc Rosenberg
Partner Comp: Art & Science

This nuance is recognized more effectively at larger firms where, to preserve one’s income or merit an increase, partners must demonstrate proactive contributions to the firm year after year. At smaller firms, partners are often able to maintain their income largely based on past performance.

MORE ON PARTNER COMPENSATION: How Profitability Affects Income Allocation | Management Stipends: Who, How and Why | Paying Part-Time Partners | How to Set the Managing Partner’s Compensation | Partner Pay: Open vs. Closed Compensation Systems | 11 Points in Designing a Partner Comp System | What Partners Earn and How They Earn It
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Partners who perform well every year:
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Fighting Restraining Forces

Post with two signs, "same" and "change"Plus 5 things we can learn from Weight Watchers.

By August J. Aquila
What Makes a Great Partnership

Let’s examine restraining forces through a case study.

MORE ON GREAT PARTNERSHIPS: How You Can Get Partners to Change | Communication Goes Both Ways | Why Shared Values Are Important | Why ‘Walking Together’ Is So Important | 6 Ways to Pay Partners | How to Build a Better Firm Through Teamwork | Innovate or Die | 8 Ways Leaders Destroy Firms
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Thomas was assigned to take over a niche area in the firm. The area had had high productivity in the past.
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13 Steps to True Commitment

Martin Bissett: "Make continual deposits in the goodwill account."What it means for partners.

By Martin Bissett
Passport to Partnership

Rising from senior manager to partner often means being promoted ahead of our peers and contemporaries. It creates a gap in earnings, stature and influence compared to those who just yesterday were our colleagues on a level playing field.

MORE ON THE PASSPORT TO PARTNERSHIP: How Good Is Your Network? | Shift Thinking from ‘We’ to ‘You’ | 7 Mistakes to Avoid When Going After New Work | Why Communication Matters So Much | 3 Questions to Evaluate Your Firm Culture | Competence: More Than Technical Skills | Are You Partner Material? Maybe Not
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It can also mean that if we are coming into a firm from the outside, we are being promoted over people who have served at that firm for many years and understand the culture of the firm a lot better than we do right now. We may have to lead these people as the head of a department and if so, they’d better be on our side.
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How Profitability Affects Income Allocation

Man counting $100 bills into three pilesDon’t put the one-firm concept at risk.

By Marc Rosenberg
Partner Comp: Art & Science

Intuitively, it makes sense for any organization (not just CPA firms) with multiple locations and departments to measure the profitability of each area.

MORE ON PARTNER COMPENSATION: Management Stipends: Who, How and Why | Partner Pay in Retirement Transition Period | How to Pay Non-Equity Partners | 5 Types of Partner Evaluations | How Large and Small Firms Allocate Income | Partner Pay: Recapping the Compensation Systems | Why Firms Use Partner Comp Formulas | Partner Compensation: An Art, Not a Science
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Industrial companies routinely measure profits by product or plant. Why shouldn’t CPA firms do the same, especially with the most obvious candidates: the accounting and auditing (A&A) and tax departments?
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How Good Is Your Network?

4 happy co-workers looking at man's tabletBONUS CHECKLIST: 5 questions to evaluate your network and skills.

By Martin Bissett
Passport to Partnership

Ask yourself and answer these questions when considering the current and future “conversion” tactics that you’ll employ.

MORE ON THE PASSPORT TO PARTNERSHIP: Shift Thinking from ‘We’ to ‘You’ | When to Ignore a White Lie: A Cautionary Tale | Communicate Your Worth and Value | Best Practices for One-on-One Communication | Learn to Read Your Firm’s Culture
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  1. If I were to start today, could I name four businesses that I’d like to reach out to?
  2. What is our firm’s net fee growth goal this year and what can I do to contribute to it?
  3. What do I need to do to be able to handle the tough stuff like negotiation, pricing and handling objections? What start to learning these skills can I make today?

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Management Stipends: Who, How and Why

Businessman sitting behind his desk in the office talking on a mobile phone listening to the conversation with a serious expressionAnd when NOT to pay.

By Marc Rosenberg
Partner Comp: Art & Science

What is a management stipend and why is it necessary?

MORE ON PARTNER COMPENSATION: Partner Pay in Retirement Transition Period | Paying New Partners and Lateral Hires | 3 Rules for Promotion to Partner | Should the MP Be the Highest Paid Partner? | Integrating Partner Comp with Strategic Planning | Partner Pay: The Declining Importance of Book of Business | 3 Non-Performance-Based Comp Systems
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Partners with significant, official internal duties require a substantial amount of time to do these jobs properly. Main examples would be the managing partner, PIC, practice group leader, executive and compensation committee members.
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Shift Thinking from ‘We’ to ‘You’

Portrait of a cheerful businessman smiling at the cameraBusinesses place value on expertise.

By Martin Bissett
Passport to Partnership

Please start understanding, valuing and respecting your own value in the marketplace with clients who could not reach their goals without you.

MORE ON THE PASSPORT TO PARTNERSHIP: When to Ignore a White Lie: A Cautionary Tale | RFPs: 7 Things NOT to Do | 5 Ways to Evaluate Your Communication | 7 Levels of Communication Management | 5 Ways to Get Buy-In for Firm Culture | Partnership: Competence Is Just the Foot in the Door | Are You Partner Material? Maybe Not
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Businesses are in need – sometimes desperate need – of your technical expertise and caring approach.
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When to Ignore a White Lie: A Cautionary Tale

Businessman covering face with handsHow well do you represent your firm?

By Martin Bissett
Passport to Partnership

The Passport to Partnership study collated a number of responses in a conversational style.

MORE ON THE PASSPORT TO PARTNERSHIP: RFPs: 7 Things NOT to Do | 7 Mistakes to Avoid When Going After New Work | Why Communication Matters So Much | 3 Questions to Evaluate Your Firm Culture | Competence: More Than Technical Skills
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The main example that really stood out as the major indicator of a need for each future leader to be able to “convert” new business is showcased below and was repeated many times in various different ways.
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