PRACTICE MANAGEMENT
in leadership is temporary; sometimes it’s longer term, as is the case when a leader will not be returning. Typically created by a consultant and documented by an attorney, a PCA helps maintain service continuity in unsettling times. It is important that all parties are comfortable in the agreement. After all, there are risks and rewards — and often high emotions — for everyone involved. A PCA should be tested periodically, much like a fire drill or burglar alarm. Firms should check in to make sure both (or all) parties are still interested, are still comparable in their perspectives, and can provide the services necessary to meet the firm’s current client needs.
LIVE THE SUCCESSION PROCESS The results of any succession plan will be optimized by a vigorous and disciplined approach. Initiatives that will be part of your approach need to be monitored quarterly and the overall plan should be reviewed every two years at a minimum. Feedback should be gathered from internal and external centers of influence. An effective succession process must be integrated with a strategic plan and a business plan. Firms of all sizes will be best positioned to perpetuate the firm by emulating the best practices of businesses, and that means being much more structured and more open to perspectives. Solo practitioners have to be ready to move up to being a small firm by adding a partner or adding management roles so as to be stronger and deeper. All firms must continue to pivot and study trends and to recalibrate their team and service offerings.
There are practical and powerful steps practices can take to handle the most common kinds of transitions through both anticipated and unanticipated events. You can always anticipate that leadership will need to change—and that the firm needs to be prepared for change no matter the conditions. If your firm is as important as you would like your clients and staff to believe, then perpetuating it is top priority. Firms have common succession concerns, and each firm will have its own path. Define your process and live it well. You, your clients and staff deserve it. n
Ira S. Rosenbloom, CPA (LR), is the chief operating executive (COE) of Optimum Strategies, LLC, a niche CPA practice management advisory firm that specializes in guiding firms to greater success with methods that include viable practice combination efforts such as mergers and acquisitions (M&A), profit enhancement programs, and helping firm owners create the right leadership engagement and succession plans for long-term business continuity and success. A well-known and respected leader in the accounting community across the Mid-Atlantic region, Ira works with dozens of clients each year to help them build stronger CPA firms designed to improve profitability, accountability, and client satisfaction. He is known for his ability to motivate internally and externally for strong bottom-line results. ira@optimumstrategies.com optimumstrategies.com
Success at succession is not about mapping out a solution to every what-if scenario. It is about being prepared to handle situations and navigating the unknown and the predictable.
WANT MORE FROM IRA? Check out his June 2021 VSCPA Leading Forward podcast episode. He discusses why it’s important to start succession planning and developing talent early. Subscribe to Leading Forward wherever you listen to podcasts or check out the episodes and transcripts at vscpa.com/podcast.
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DISCLOSURES
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SUMMER 2021
