Succession planning

Information Technology Alliance president Ron Eagle announced at the organization's spring collaborative meeting in Fort Lauderdale, Fla., earlier this month that he would not be renewing his contract as president, effective Sept. 1, 2012.

Central to any functional succession plan is a focus on the clients, and seamlessly transitioning those relationships from one partner to the next.

The general administrator role takes manyforms: office, human resources, marketing or IT manager; chief operating officer; firm administrator - and even managing partner. But firms, especially smaller ones, should consider a consolidation of these operations to save the necessary partner time to grow their practices.

Succession planning, recruiting, M&A and developing top talent and pricing pressures were among several front-burner issues that came to the forefront during a roundtable discussion by members of the Advisory Board.

A new survey finds that 77 percent of business owners say they started their companies to provide for their families, yet less than half of them feel confident with their current financial situation.

Faced with the confluence of a still uncertain economy, ongoing fee and margin pressures, torrid competition for clients, and new business and the continual challenge to sustain growth, running some of the nation's top accounting firms has undoubtedly caused a number of sleepless nights for more than one managing partner.

Accounting firms typically have multiple partners, some of whom may want to retire or move on in the near future, and others who want to stay longer.

James Turley, the global chairman and CEO of Ernst & Young since 2001, said he plans to retire at the end of June 2013.

IMGCAP(1)]Accounting firms typically have multiple partners, some of whom may want to retire or move on in the near future, and others who want to stay longer.

The former and current managing partners of super-regional CPA and business advisory firm Plante Moran have released “Succession Transition: A Roadmap for Seamless Transitions,” a book that offers an inside view of strategies to cultivate staff members into leadership positions.

The International Federation of Accountants has begun an executive search for a CEO to succeed incumbent Ian Ball, whose contract expires in February 2013 and who is not seeking another term.

IMGCAP(1)]The recent announcements by Apple CEO Steve Jobs and University of Tennessee women’s basketball coach Pat Summitt of their battles with illness remind us of the dramatic impact that one individual can have on an organization.

With the early waves of Baby Boomer partners retiring or getting ready to hand over the keys to the firm, a diverse panel of partners and firm owners said constant communication with high-potential staff about growth opportunities, coupled with making firms appealing to younger professionals via investing in cutting-edge technologies, will serve to ease transition issues with regard to leadership succession.

Accounting Transition Advisors, a consulting firm that provides succession, transition, and merger and acquisition services to accounting firms, has partnered with a trio of Canadians to expand its services across the border.

The ground inside many CPA firms is beginning to shake as the first wave of over 76 million Baby Boomers (those born from 1946 to 1964) reaches retirement. The result of this quake is an expansion in the generational divide within firms - especially between Baby Boomers and their up-and-coming Generation X (those born from 1965 to 1981) partners, principals and senior managers.

Jeffrey Donovan has been named managing partner at Donovan Certified Public Accountants and Advisors.

While there are some things you can control, there are many more that you cannot. The real issue is not what you can control or not, but how you react to these type of disasters, and how well your firm carries out its “contingency planâ€� (if it has one). The difference may mean the firm’s survival (and retention of its asset value).

IMGCAP(1)]Today many businesses, including accounting firms, have a sobering problem when it comes to older partners.