Any of you who started out as sole practitioners surely remember that it was you – no one else – who made your firm successful.  You brought in the business.  You did top notch work and delivered it on time. You nurtured and grew your client relationships so they came back asking for more.  When…

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Years ago, a senior partner at a 12-partner firm retreat I was facilitating gave us all an ‘aha’ moment: “A partner compensation system is just a way of allocating income among the partners.  It’s not meant to be the primary way to manage a firm.” There are two messages here: one obvious and one that is deeper.…

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I recently polled managing partners of mid-sized CPA firms to see what they do to ensure that their technology has the optimal impact on their firm’s success.  I received some excellent responses – the results have been previously posted. But the response that caught my attention the most was one from a $15M firm in…

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This is the 2nd of a two part series on our recent partner compensation survey.    As part of CPA firms’ never-ending quest for the perfect partner compensation system, our company recently conducted a survey of firms’ compensation techniques and methodologies in conjunction with our colleagues at CPA Leadership Institute. But before we begin, a…

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CPA firms have struggled with their partner compensation systems forever. We’re constantly trying to build a better mousetrap.  Why is this quest never-ending? The simple answer is that it’s difficult for financially-minded, mathematically-inclined CPA firm partners to agree on what is fair for both themselves — a subject on which they are understandably but regrettably…

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A presidential advisor known by all infamously invented what is now an everyday term.  When asked to defend blatant lies, with a straight face, this advisor said the falsehoods were “alternative facts.” Partners and their firms aren’t immune to creating alternative facts.  Here are some examples: ARE YOU ACTIVE IN PRACTICE DEVELOPMENT? Alternative fact: “I’m…

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The most difficult and complicated partner compensation scenario may surprise you – it’s firms with 2-3 partners.  Why?  Because regardless of the system used to allocate income, at the end of the day, each partner has to look the others in the eyes and say,  “I’m OK with our final comp numbers.  They are fair…

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