Date posted: 06/06/2017
3 min read
In brief
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Part one of a two-part series investigating leadership best practice in accounting firms.
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Bad leadership techniques can be a firm’s worst enemy and can impact on productivity.
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Ten examples of how principals may be undermining the ability for their practice to succeed.
In accounting
practices the principals can often be their firm’s worst enemy. This can happen
in a number of ways and often the principal may not be aware they are the
problem.
Members in practice
should consider whether any of the following are occurring in their practice.
Ten tips for better leadership
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1. The wrong plan
If the business plan doesn’t
align with the principal’s goals, it won’t have everyone’s support and will
quickly fade into secondary importance. It takes courage to tackle
uncomfortable issues, but as the principal in the practice, you must go there.
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2. Thank goodness that's over
It’s all very well to develop
an exciting business plan, but the principals need to commit resources to
implementing the plan, or it will go nowhere.
In firms anchored to the status
quo, often the principals fail to discuss the business plan regularly and track
its progress.
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3. If nothing changes then nothing changes
Not being prepared to
delegate client responsibilities and failure to allocate regular time to work
on agreed projects means the business plan will go nowhere fast.
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4. Not following new systems
The team has put
thought and effort into improving a procedure only to find that one or more of
the principals refuses to conform.
In the short term, an exception is made for
the recalcitrant few. But in the long term this sends a powerful message to
team members that their input and new systems aren’t important.
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5. Dance around longstanding team members
Principals who tiptoe
around seemingly indispensable employees for fear of triggering a resignation create
a dysfunctional firm. By continuing to let these employees do their own thing, momentum
is quickly destroyed.
Excusing their absence from team meetings and non-contribution
to team targets is bad enough. Acquiescence with their non-standard systems and
proprietary airs about their clients is worse. And while putting up with petulance
is asking for trouble, rewarding such behaviour with pay rises and guarantees
of promotion isn’t how these situations should be handled.
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6. Not communicating effectively with one another
The conditioned
response we have to “how’s it going?” is “good, thanks” or “not bad”. Yet,
there are times when such exchanges between business partners are simply
misleading.
An astute former colleague implemented a “one to five” response protocol
to this question, where “one” was, “Terrible, I’m going out for some fresh air”
and “five” was “really terrific”. This proved to be the catalyst for some frank
and very productive conversations.
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7. Judging partner performance only by revenue produced
Unfortunately this
leads to short-term thinking and discourages cross-referrals. It also implies
that implementing agreed business improvement projects is a second rate
activity.
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8. The eternal bottleneck
The classic sign of
this is an ever-growing pile of files waiting to be reviewed.
Equally so is
partners assuming the role of part-time projects officer or taking on too much work
themselves. And please, let’s see an end to partners personally attending to
accounts payable and payroll.
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9. Engage marketing consultants and not listening to them
There’s no point
engaging marketing specialists to help grow your business and then not
responding to their emails and phone calls. Making your marketer work with
substandard website developers and photographers is a recipe for mediocrity.
For
such a marketing initiative to work, principals need to actively engage with
the consultant. This means being available for scheduled meetings, being
prepared to act upon the advice received and taking an active interest in the
new collateral being developed.
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10. Not being around enough
Everyone understands
that principals need to attend to administrative matters, represent the firm at
various events and attend conferences to accumulate sufficient professional
development hours.
However, if there is an overabundance of external
commitments, long lunches, exercise sessions in work time, or numerous unexplained
absences from the office, then that sends a silent message to the team that their
leader’s attention is elsewhere.
If any of the above situations
are occurring in your firm, then do something about it. Addressing these issues
often requires little by way of direct investment; it’s more a matter of having
the courage to address them.
In some cases this
will mean instigating some challenging conversations and amending existing
practices. Keep in mind that whether you do or don’t take action, your team
members will duly follow your lead.
This is part one in a two-part series addressing leadership
strategies in accounting practices. The soon to be published part two in this
series will outline the 10 practices consistently demonstrated by the leaders
of high performing firms.
This article is
part of an ongoing Working In Practice column aimed at CAs working in SME accounting practices. If you’ve
got something specific that you would like this column to cover, email the Acuity team now.
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