5 Hidden Factors That Make or Break Internal Succession

Internal succession is crucial to the continuity of CPA firms. Just as the skills and drive of firm leaders change with time; the facilitation of internal succession needs to morph, as well. Too many firm leaders automatically expect talented people to want to be partners because it’s what they wanted at the same age or stage in their career.

Today, people have to be sold on becoming a partner—in the same way new clients need to be sold on hiring you. Here are 5 steps to strengthen your internal succession pipeline.

1. Broadcast the financial upside. Share the average bonus comp partners receive—or share the percentage of compensation partners receive as a bonus if that’s more comfortable. Share the ways compensation rewards efforts and the attributes that are rewarded.

   
   

2. Focus on fun. Continually communicate and build on the perks that come with being a partner, such as more autonomy and a seat at the decision-making table. Empower your marketing team (in-house or external) to develop a pitch to weave the perks into firm life.

   
   

3. Inspire engagement. Define the partner roles annually and invite your team to participate in the structuring of the job and the goals partners should have. The more people have a say, and understand that say is respected, the more likely they will be on board with it.

   
   

4. Coach early. In baseball, players don’t start in the majors. They start in high school, college, and/or the minor leagues. Create a leadership development curriculum and mentoring process which starts grooming people early in the process—for example, with three years’ experience at any CPA firm—and at least one year with your firm. Coaches should be high profile, support a message of how special your firm is, and reinforce how special the program candidates are.

   
   

5. Bond quickly. Loyalty and desire are built when people feel the owners care about and know them—and that they’re supported as part of the true team. Relationship-building should include understanding styles and what makes different successors “tick.”

Years ago, every candidate for employment as an accountant was coached to say they wanted to be a partner to get the job. Today, firms need to motivate excitement and desire to be a partner 365 days a year to learn to win at internal succession.