No matter how big or small their CPA firm, a solid Managing Partner thinks about the different aspects of their business, and how to make the areas the most effective. Whether you are currently a Managing Partner at your firm, aspire to be one, or just want to be the best at what you do, getting into the mindset of a Managing Partner has an important bearing on the firm.
We've divided Managing Partner Mindset priorities into four main topic areas, and have included a checklist of questions that each firm should ask of its future leaders. The first two, Productivity and Profitability, are below. Part 2, Marketing & Business Development and Personnel, can be found here.
Is our firm placing value on client service production and non-client service (administrative) production? What benchmarks are being used to assign proper values and to control the balance for client and non-client service production?
Is there a budget for administrative hours by period? Is it broken down for each person at the firm? How are we addressing variances?
What is our turnaround time on projects? Are projects being completed and vetted within a certain amount of time?
Are we measuring and evaluating project review time by client project to address performance issues and quality concerns?
Do we emphasize best practices to enhance performance and client satisfaction?
What is the average achieved rate per hour billed for the firm, broken down by product line? Is that average matched to projections?
What are our days receivable?
Are we meeting our work in process (WIP) carry criteria?
What are the utilization results by category of service provider?
How are we using out technological potential to achieve superior engagement results?
Are we using metric dashboards for all levels of our staff and how are they responding?
Are partners’ achievements in line with their performance goals?
Thinking through these questions and going through this kind of preliminary checklist can mean the difference between a good leader and a great leader, and, by extension, the difference between a good and a great firm.
The right Partner – whether Managing Partner or not – wants a great firm, and wants the whole team to see it the same way. Make it happen and you’ll be on your way.