© U PSTREAM A CADEMY 20121 W ORLD C LASS T RAINING: G ETTING Y OUR F IRM O N T RACK P RESENTED BY S AM M. A LLRED, F OUNDER & D IRECTOR O F U PSTREAM A

© UPSTREAM ACADEMY 2012 1

WORLD CLASS TRAINING:GETTING YOUR FIRM ON TRACK

PRESENTED BY SAM M. ALLRED, FOUNDER & DIRECTOR OF UPSTREAM ACADEMY

WHAT ALL NEW PARTNERS NEED TO KNOW AND UNDERSTAND

PRESENTED BY TIM BARTZ, CPADIRECTOR OF UPSTREAM ACADEMY


1. Observations Regarding New Partners

2. What All New Partners Need to Know and Understand

3. ELA Participants Answer Key Questions

4. Question and Answer Session

PRESENTATION ROADMAP


OBSERVATIONS REGARDING NEW PARTNERS


More partners will retire from our profession in the next decade than have retired in the past three decades combined.

This means our profession will likely see more new partners in the next ten years than in the past thirty years combined.

OBSERVATION #1


New partners have a lot riding on their shoulders.

One of their most significant responsibilities will be to successfully retire their senior partners.

OBSERVATION #2


The profession is changing at an ever-increasing pace.

New partners will need to be prepared to help the firm of tomorrow adapt to and capitalize on these constant changes.

OBSERVATION #3


Many firms do a poor job of properly training new partners. There seems to be a shared belief that new partners already know what it’s all about.

OBSERVATION #4


Partners are frequently the biggest barriers to the firm’s progress. In the weighty matters of change, commitment and accountability, partners seem to be among the worst offenders.

OBSERVATION #5


It has long been said that “culture is the glue that holds the firm together.”

You will not find a more powerful method to teach firm values and culture than the example of partner behavior. It’s impossible to create a culture inconsistent with partner behavior.

OBSERVATION #6


The firm’s “chance for success” approach on endeavors often leaves new partners far short of the success they anticipated.

We sometimes set new partners up for failure because we don’t understand the difference between support and commitment.

OBSERVATION #7


While commitment can’t always guarantee success, support usually guarantees failure.

This applies to new services, new offices, positions of leadership, strategic relationships, administrative assignments, etc.


Many firms fail to create a culture that values constructive feedback.

“The trouble with most of us is that we would rather be ruined by praise than saved by criticism.”

Norman Vincent Peale

OBSERVATION #8


In many firms, partner performance appraisals are accomplished in a mediocre way. The

focus seems to be more on compensation than on helping partners advance in their careers.

OBSERVATION #9


Virtually every firm in our profession has issues with under-performing partners. At conferences and workshops, we hear more complaints about partners than about anything else.

OBSERVATION #10


Many complaints about underperforming partners stem from poor communication. Clear expectations need to be established.

We can only determine if an individual is performing when there are defined performance standards and specific personal goals.

OBSERVATION #11

© UPSTREAM ACADEMY 2012

WHAT ALL NEW PARTNERS NEED TO KNOW AND

UNDERSTAND

16


Partner Role

Partners are at a point in their careers where they need exceptional focus on their strengths and talents to bring value to the firm’s clients and the leadership of the firm.

17


Partner Role

Partners should have a clear understanding of their role in the firm, and how firm leadership sees them as making the greatest contribution.•personal expertise•client service•leadership positions•mentoring relationships

18


Partner Evaluations

Understand how the partner evaluation process works, how partner goals are established and the impact evaluation results and successful goal setting will have on your current income and career path.

19


Firm Financials

Obtain a clear understanding of the firm’s balance sheet, including the specific assets (normally the non-trade receivables and the valuation of the intangibles), debt structure of the firm (noting your obligation for guarantees), and capital structure.

20


Firm Financials

Take time to meet with the managing partner or CFO to obtain a clear understanding of the profit metrics of the firm. Learn the history of the firm’s profitability and where the firm is uniquely profitable or unprofitable.

21


Firm Financials

Finally, learn how the firm is valued using the numbers from the firm’s balance sheet and income statement.

22


Contribution to Firm Profits

Make it your goal to be a low maintenance, high yield member of the ownership group.

Never forget your responsibility to contribute to firm profits every year. This comes through commitment to firm and department efforts, personal production, effective engagements, and business development.

23


Firm Governance

Read the firm’s governance documents carefully and note how the firm is structured and how decisions are made. Understand partner rights and position descriptions, noting responsibility and authority for each key leadership position. The firm is your business; be an active and knowledgeable part of it. Ask questions early and often.

24


Compensation

Be sure you understand the firm’s compensation system for partners.

What are the critical factors within the system?

How do new partners meld into the system and grow their share of the pie?

25


Partner Buy-Outs

Ensure you understand the mechanics of partner buy-outs even though you won’t be selling any time soon. You should have a clear understanding of the process because you will be retiring a number of partners over your career.

26


Partner Buy-Outs

Understand:•how partners are supposed to transition their clients•how equity is redistributed as partners leave the firm•the financial obligations associated with each buy-out in the form of capital and deferred compensation

27


Personal Effectiveness

It’s vitally important that you work diligently at becoming more valuable each year, both to the firm and to clients.

You should consistently work to become an expert in one or more areas.

28


Partner Relations

Make every effort to personally know every one of your partners and commit to “have their back” in every situation. Learn what they are pursuing professionally and how they like to spend their free time. Know their spouse and children by name.

You should never say a disparaging thing about another fellow partner or his/her family.

29


Understand Your Impact

Your image will change as a part of the firm’s ownership group. Be humble and realize that others evaluate the firm by what they see in you.

Be very careful about speaking negatively about others. As a partner, your opinions carry great weight and have long-lasting impact on the careers of others.

30


Speak Up

You will never be seen as a leader if you choose to remain silent in meetings. Develop the courage to speak up in partner meetings.

Don’t allow or encourage others to be your spokesperson on issues you feel strongly about.

31


Career Killers

Beware of AGC –Arrogance, Greed, and Complacency. These three things will significantly hamper your relationships with your partners and other members of the firm and will limit the effectiveness of your career.

32


ELA PARTICIPANTS ANSWER KEY QUESTIONS


We have asked a number of Year 3 ELA participants to respond to several questions regarding this Leadership Training Forum.

Please know that response to these questions is not limited to those participants who have been contacted in advance.


Describe what you liked most about your orientation into the ranks of firm leadership? What did your firm do exceptionally well in this regard?

QUESTION #1


Describe how your life (professional and personal) changed once you became a member of your firm’s leadership group.

QUESTION #2


Describe how you plan to go about developing deeper relationships with your firm’s partners now that you’ve become part of the leadership group.

QUESTION #3


Describe how you plan to guide your career now that you are part of the firm’s leadership group.

QUESTION #4


QUESTION AND ANSWER SESSION


Thank You!

[email protected]

Documents

© U PSTREAM A CADEMY 20121 W ORLD C LASS T RAINING: G ETTING Y OUR F IRM O N T RACK P RESENTED BY S AM M. A LLRED, F OUNDER & D IRECTOR O F U PSTREAM A