Setting Partner Expectations and Reporting to Drive Performance and Accountability

www.convergencecoaching.com©Copyright 2000-2013

ConvergenceCoaching, LLC All rights reserved.

Setting Partner Expectations and Reporting to Drive Performance and Accountability

Presented byJack G. Lee III, CPA


ConvergenceCoaching, LLC All rights reserved. 2

Poll #1

• What answer best characterizes your reason for attending this web seminar?– To understand the concept of “ownership” within the firm– To learn how to define customized partner role

descriptions – To get better and more effective at partner goal setting– To improve the return and report process in my firm– Other



Partner Performance and Accountability Webinars• Our 2013 Partner Accountability Webinar Series has

been designed to spark your strategic thinking in the area of partner performance and accountability, and includes the following sessions:– In today’s session (Session 1), we’ll focus on “Setting Partner

Expectations and Reporting to Drive Performance and Accountability”– In Session 2 on Tuesday, July 16th, we’ll learn about “Driving Partner

Performance and Accountability with Feedback and Straight Talk”– In Session 3 on Tuesday, August 20th, we’ll conclude with a discussion

on “Managing Conflict Successfully”



Our Agenda

• In this session, we will explore how to improve partner performance and accountability by:– Understanding the importance of “ownership” in driving

firm initiatives forward– Gaining insight on the “link” between written partner role

descriptions and execution of your firm’s strategy– Getting better and more effective at partner goal setting– Developing a “return and report” process to support

achievement of agreed upon goals and strategies



Keys To Performance and Accountability• To improve partner performance and accountability,

there are three key attributes on which to focus:– Unity – establishing partner unity around your firm

strategy with trust as your foundation– Ownership – defining partner roles and goals and taking

responsibility for achieving results– Accountability – monitoring and evaluating your

performance, being willing to “return and report”, acknowledging you can be better

These come together in our Leadership Development Model…



The Leadership Development Model

Establish Unity Around Firm

Strategy

Ownership

AccountabilityTrust



Quick Overview:Unity – The Foundation of Partner

Accountability


Strategy



What Does Unity Mean?• Unity means:

– Agreement and alignment on a strategy and direction for your firm and around key decisions• Majority agreement is required, but “super-majority” is

preferred – Respect, trust and edification at all times

• This includes following the agreed upon direction, abiding by decisions and working towards the strategy in which the majority agreed (even when you are in the minority!)



What Unity Does Not Mean• Unity does not mean that:

– You have 100% buy-in or that everyone agrees all the time

– Conflicts won’t arise– All partners like each other and are “friends”– Everyone will stay together forever



What To Do When Unity Is Missing:• When the firm’s strategy is unclear - decisions aren’t supported because

partners cannot “see” where the firm is heading– Action: Establish the firm’s strategy

• When we all want different things – and don’t disclose our self interest– Action: Establish the firm’s strategy with it’s multi-faceted elements and

communicate (relentlessly) the firm’s purpose and vision for the future• When partners won’t submit to an agreed upon strategy because it

requires a change in behavior– Action: Change management and new behaviors are required, including

submission• When there is no “cost” for the lack of submission, compliance or unity

– Action: Put accountability structures and rewards for contribution to the strategy in place



Lack of Trust =Lack of Unity• The main reason firms struggle with forming and supporting a

unified strategy is the lack of trust• For real unity to occur, trust is required among your leaders

– It is the only way to empower your leadership roles (and committees) • Lack of trust shows up as:

– Inability to make decisions, or “churn”– Triangulation and “side conversations”– Internal competition vs. external– Unresolved conflict among partners, and inability to move forward– Lack of passion and energy– Unwillingness to submit to or support group decisions



Three Trust Building Behaviors • Integrity is more than “honesty” or “doing the right thing”

and includes:– Keeping commitments – not over-committing and under-delivering– Resetting expectations when commitments cannot be kept

• Accountability is following through on commitments and includes: – Taking responsibility when their “things” are not going as planned– Holding others accountable

• Straight Talk uses candor and honesty in all communications and tells it like it is, and includes:– No beating around the bush– No avoiding difficult subjects

Integrity

Straight Talk

Trust

Account-abilit

y



Bottom Line on Trust

• Without trust you can’t have accountability and without accountability, you can’t have trust

• Don’t attempt to implement or improve your partner accountability process in a low trust environment

• Start with building or restoring trust among the partners– In some cases, forgiveness may be required



Ownership:Establishing Partner Roles and

Goals


Strategy



“Few things help an individual more than to place responsibility upon him, and to let him know that you trust him [or her].”

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Booker T. Washington



Ownership Starts At The Top

• When partners exhibit ownership, they:– Put in the necessary amount of time and physical and

mental energy to strategize about, forward and improve the things assigned to them

– Actively communicate on the status of the things assigned to them with stakeholders impacted by their success (without prodding)

– Take responsibility for the results of the things they own – both positive and negative



Ownership Challenge

• In most firms, the exact items “owned” by each partner (and staff person) is often fuzzier than it should be

• When you are unclear as to who owns what, it is hard to hold anyone accountable for performance

• Let’s explore some ownership ideas that can clear up any confusion…



Our Organizing Principles• We believe there must be clearly defined ownership for all

key areas of your organization - ONE owner for every:– Business function– Service Line– Office– Client– Engagement– Employee

Bottom Line – things don’t progress without a clear owner and performance expectations aren’t clear without ownership defined



Avoid Ownership Politics

• Sometimes we avoid defining who owns what because we don’t want to “award” ownership to any one person due to:– Politics between two parties who both want the “power” or “glory”– Two parties wanting to co-own something because they don’t want to

all of the risk or burden– Fear on behalf of any potential owners that they will have to do all of

the work (so no one wants the job)• Ownership does not mean that the owner:

– Always has to be a partner– Does all the work– Makes all of the decisions by themselves or without input

The owner is a facilitator and strategist for their “things,” but they use a team approach to develop and implement their plans



Establishing Ownership • We like to use “roles grids” to identify and assign

ownership for each of your firm’s functional areas, service lines and initiatives – Use first-level roles grids to identify ownership for each

functional area and service line– Then have each owner create a second-level roles grid to

break their items up into small pieces to delegate ownership at a lower level

Let’s review some sample roles grids…



Firm Roles Grid

Leadership Strategic Planning

Staff Recruiting

Staff Retention

Financial Planning

Billing and Bookkeeping

Marketing Sales

Service Delivery and Scheduling

Risk Management

Client Satisfaction

Internal IT

Office Admin. Director of Fun Service Line Service Line



Level Two Roles Grid – Tax Department

Tax Strategy Corporate Tax 1040 Business Tax Marketing

Tax TQM Tax Technologies Tax Processes Tax Planners

Tax Update Communications

Tax CPE Tax Compliance and Legislation

Tax Research

Other Other Other Other



Tax ClientEngagement Roles Grid

Coordination with Audit Team

Tax Provision Review (FIN 48)

Scope, Timing, Budge,

Deliverables

Obtain Engagement Agreement

Staff Scheduling Request / Obtain Tax

Data

Return Preparation

Federal Return Review

State Return Review

International Reporting

Final Review and Sign

Processing Tax Return for Delivery

Delivering Tax Return to Client

Analyze WIP and prepare

invoice

Identify Projects for Follow-up

Other Wrap-up Matters



Creating Partner Role Descriptions• Once ownership is established, formal written role

descriptions should be developed for each partner, outlining the “areas” they own

• Role descriptions are “one-size-fits-one” – tailored to each individual partner

• They should answer these questions: – What are the duties and responsibilities of the assigned role?– What clients, people, initiatives do they own?– How do we measure their success?– What skills, education, abilities, core competencies, and behaviors

are required for the assigned role?• Don’t focus only on technical abilities – especially if the role is

responsible for leading, developing and managing others



Sample Excerpt – Service Line Leader• Creating and executing a strategic plan, budget and capacity plan

for the service line / initiative each year• Identifying and directing product/service mix, pricing, promotion

(marketing management)• Taking responsibility for service line’s financial performance• Directing and leading the team involved in delivering the service

– Partners and managers may report to them – depending on your firm’s size, staff may, too

– Hiring and firing authority– Reviewing and approving promotions and raises

• In addition to the specific responsibilities for each role, there may be responsibilities for certain firm management functions



Creating Partner RoleDescriptions• Role descriptions should be organized by skill block for each

partner type in your firm, including: – Managing Partner – Operations Partner – Service Line Leaders or Department Heads (Tax, Audit, etc.) – Line Partners – Business Development Partners

• This will help with succession planning and transition of duties to the future “owners”

• Role descriptions should be shared openly with the entire team



Poll #2

• What is the status of your firm’s partner role descriptions? (specify only one)– They are written, current and customized to each partner– They are written and current, but not “customized”– They need to be updated– We do not have written partner role descriptions– Other



Defining Performance:Setting Goals and Measures of

Success


Strategy



"A goal properly set is halfway reached.“

Abraham Lincoln



Setting Goals or Measures of Success• To be able to measure the success or contribution of each

partner, each should establish goals specific to their role – Your goals need to contribute to the overall firm strategy – Also consider growth and personal development opportunities

• You should have no more than 2-3 “stretch” goals that tie directly to your role and your areas of ownership– Decide on your priorities, don’t establish too many goals– Obtain input from others and approval by the leadership group– This process should be completed annually

• Achieving your goals should point to your success and directly (and positively) impact your compensation– Conversely, not achieving your goals should adversely impact your

compensation



Minimum Performance Expectations• “Minimum” partner performance expectations should be

defined in competence areas such as:– Firm core values and leadership– Client service– Technical excellence– People development– Business development– Financial contribution

• Each partner should set goals that go “above and beyond” minimum expectations based on each partner’s strengths – and goals must s-t-r-e-t-c-h you to make a difference



Two Types of Goals

• Consider both types of goals when you are developing your goals --– Those that improve a behavior or skill

• For example – more straight talk, less triangulation, better communication, improving business development

– Those that produce a deliverable or tangible end result• For example – set goals around things you own – specific initiative

goals, assigned roles, etc. (“current production”)• Or goals around succession, developing future leaders,

transitioning of clients, developing new business (“future capacity to produce”)



When Establishing Your Goals

• Make them:– Specific – your goals should be specific rather than

general and answer the “W” questions (who, what, why, when, and where)

– Measurable – establish specific criteria for measuring progress whether financial, based on activities, etc.

– Realistic and Relevant – a goal must be something the organization is committed to and that you are willing and able to work toward

– Written and Shared – commitment to performance increases when goals are written and you tell others



Name: SL:

Mentor Partner:

Sample Partner Goal Form

YOUR FIRMPartner Goals

Evaluation Period ________________________

Goals – Be Specific• What is your goal?• What steps will you take to

accomplish this goal?• Who owns these steps?

Measurement - Specify how we will measure progress and completion

Timing – Specify the “by when” date for completion

1.

2.

3.

4.

5.



Goal Examples – Financial Performance• Achieve $X in personal revenue production by XX/XX/XX• Grow my personal revenue production by X% year over year• Increase my revenue per client to $XXK per client by XX/XX/XX• Increase my engagement realization to XX% by XX/XX/XX• Increase my realized hourly rate from $XXX to $XXX by XX/XX/XX• Improve my on-time billing performance to eliminate reminders

from finance as evidenced our billing manager acknowledging this improvement by XX/XX/XX

• Increase the profit contribution from the service line that I manage to XX% by XX/XX/XX



Goal Examples – Business Development• Bring in X new audit clients from contacts generated by me worth

$XX,XXX by XX/XX/XX • Refer $XXK in new business for our OTHER SERVICE LINE by

XX/XX/XX• Conduct an average of 4 referral source or prospect meetings per

month, or 48 meetings in total by XX/XX/XX; track these meetings and their outcomes/next steps in our CRM or in Excel

• Increase revenue per client for my top 10 clients by XX% by XX/XX/XX



Goal Examples – Client Management• Hold strategic client account planning meetings for my top 15 clients,

completing three specific actions or outcomes determined for each client by XX/XX/XX

• Introduce two other manager or partner contacts to my top five client contacts by XX/XX/XX

• Make two additional C-level, board member or key service provider contacts for each of my top five clients by XX/XX/XX

• Transition thirty smaller corporate or personal tax clients to PERSON’S NAME or OUT OF OUR PRACTICE by XX/XX/XX

• Develop the client portion of my succession plan by identifying who I will transition each client to and by when and reviewing that plan with my department head by XX/XX/XX



Goal Examples – People Development• Develop procedures and best practices associated with estate and

gift tax service line that are approved by the Tax Department Head and rolled out in a web-based training to all Tax staff by XX/XX/XX

• Mentor PERSON’S NAME to prepare her to move to the role of Manager including taking her to 2 referral source meetings, 2 sales meetings and including her in 2 performance conversations with staff by XX/XX/XX

• Recruit a senior audit manager into our group by XX/XX/XX• Transition the CLIENT NAME audit relationship and engagement

management to PERSON’S NAME by XX/XX/XX



Goal Examples – Leadership• Develop a written plan to develop our penetration in the X market

and gain approval from PERSON by XX/XX/XX• Stop participating in triangulation and complaining about others and

bring my concerns instead to PARTNER NAME. This will be measured based upon input from PARTNER NAME when surveyed by XX/XX/XX

• Improve my listening skills with my team members as measured by an upstream listening assessment to be conducted by XX/XX/XX and then a check in survey conducted on YY/YY/YY

• Become better at accepting feedback on my performance. This will be measured based on input from my MENTOR and the improvement in my overall rating score for YEAR over PRIOR YEAR



Poll #3

• How are you doing with your partner goal setting? (specify only one)– We have written goals and review progress quarterly– We set too many goals or goals that are not specific enough– We have written goals, but don’t review progress regularly– We do not have a partner goal setting process– Other



“Return and Report:”Establishing a Process to Drive

Achievement of Goals


Strategy



“If you don't design your own plan, chances are you'll fall into someone

else's plan. And guess what they have planned for you? Not much.”

Jim Rohn



Once Goals Are Set

• Break them into “bite-sized” pieces each with their own “by-when” dates

• Determine the first action step and “establish momentum” by taking action to complete it right away

• Identify the “pieces” that can be delegated or assigned to others– Be sure to specify expectations and set by-when dates– Confirm that the person you delegate to is equipped to

perform the task



Why Delegate?

• Leaders must learn to improve their delegation skills because delegation:– Shifts tasks to the appropriate level in the business– Allows you to focus on other important tasks reflecting

your “highest and best” skills – Motivates team members who enjoy having increased

responsibility and challenge– Provides an opportunity for others to improve and learn

• This is vital for succession and building a firm of the future!

– And because no one can do it all themselves!

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Return and ReportProcess• Each partner should agree in advance with their performance

advisor on the timing for periodically updating their progress and status whether via meetings or e-mail updates– Doing so gives both parties the ability to check status, address

roadblocks, and uncover potential for falling short of your goals– Effective leaders don’t leave others “wondering” how they’re doing

• When you “return and report”, engage in straight talk about unmet commitments or “reasons” that will not allow you to meet the stated commitment– Don’t “ball drop” or give fuzzy language when making commitments

(i.e. “I’ll try”)– Collaborate on ways to shift plans if things aren’t working

• Always be clear on new commitments with clear actions and reset expectations with affected parties



Clearing Up Communication• Develop the habit of written e-mail recaps

– Ideally, recaps should be written by the person delivering the report!

• The recap will tell readers:– What’s going to happen– Who owns getting it done (item by item)– “By when” each item will be completed– How each person will return and report their status– Next steps or meeting date

• Clear communication will pave the way for healthy partner feedback and performance discussions to occur – which is the subject of our next web seminar (July 22nd)



Poll #4

• What one thing will you commit to do out of today’s discussion on establishing partner expectations: – Identify ONE owner for each business function, client, etc.– Develop or update role descriptions for each partner– Establish or refine your partner goal setting process– Update my own personal goals– Use “return and report” to support goal achievement – Other

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Thank You!

• Contact us at any time!

Jack G. Lee III, CPA(414) 659-9822

[email protected]://www.linkedin.com/in/jackleecpa



Resources



ConvergenceCoaching Resources

• ConvergenceCoaching’s web site includes articles and tools on these topics

– www.convergencecoaching.com • Visit our blog for posts on various business development

and leadership topics:– http://blog.convergencecoaching.com

• Visit our learning center for access to additional courses– http://www.convergencelearning.com

• Visit us on Facebook: – http://www.facebook.com/convergencecoaching



Experienced Partner Leadership Program • The EPLP will run from September 1, 2013 to August 31, 2014,

where participants will engage in:– Two, two-day in-person workshops including valuable peer sharing

and information exchange– Tailored one-on-one coaching sessions – Virtual roundtables to discuss relevant, strategic topics facing the

profession and your firm– A program project that will benefit you and your firm– Access to resources, tools, online self-study learning, and web

seminars – And more - leading to inspiring, vision-based leadership behaviors!

• For more information and to register visit www.convergencelearning.com



Accountability and Team Building Reading• Accountability by Rob LeBow and Randy Spitzer • Breakthrough Teams for Breakneck Times by Lisa Gundry

and Laurie LaMantia• Extraordinary Relationships - A New Way of Thinking

About Human Interactions by Roberta M. Gilbert, M.D. • Nuts!: Southwest Airlines' Crazy Recipe For Business and

Personal Success by Kevin Freiberg• The Five Dysfunctions of a Team by Pat Lencioni • The Accountability Factor: The Buck Stops Here by Alan

M. Dobzinski



Blogs And Newsletters

• “Does Your Firm Have A Vision For Its Future?” by Jennifer Wilson – http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/

Newsletters/Articles_2012/CPA/Jan/VisionForFuture.jsp• CoachingConcepts Newsletter – Partner Performance And

Accountability – Issue 25 Winter 2010 – http://www.convergencecoaching.com/pdf/issue_25_winter_2010.pdf

• “What Does It Cost To Keep A Problem Partner?” by Jennifer Wilson – http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/

Newsletters/Articles_2010/CPA/Jun/ProblematicPartner.jsp



Leadership Resources

• Built to Last - Successful Habits of Visionary Companies by James C. Collins and Jerry I. Porras

• Choose To Be Great by James C. Collins • Crucial Conversations by Patterson, Grenny,

McMillan, Switzler, and Covey • Developing the Qualities of Success by Zig Ziglar • The Discipline of Market Leaders by Michael Treacy

and Fred Wiersema • Good to Great by Jim Collins (Collins, 2001)




• Built to Last - Successful Habits of Visionary Companies by James C. Collins and Jerry I. Porras

• Developing the Qualities of Success by Zig Ziglar • The Discipline of Market Leaders by Michael Treacy and Fred

Wiersema • Good to Great by Jim Collins • The Heart of a Leader by Ken Blanchard • The Last Lecture by Randy Pausch • Leadership by Rudolph Giuliani • Management by Kathryn M. Bartol and David C. Marti”• “Olympic-Level Leadership” by Jennifer Wilson

– www.convergencecoaching.com/blog/2012/08/olympic-level-leadership

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• Outliers: The Story of Success by Malcolm Gladwell • Practice What You Preach by David H. Maister • Primal Leadership by Daniel Goleman• “Reluctant Leadership” by Tamera Loerzel

– http://www.convergencecoaching.com/blog/2012/08/reluctant-leadership/

• Russell Rules by Bill Russell • The Speed of Trust: The One Thing That Changes Everything by

Stephen M.R. Covey • Time Tactics of Very Successful People by B. Eugene Griessman • True Professionalism by David Maister

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ConvergenceCoaching Strategic Partner• Avalara

– Avalara provides cloud-based, automated, end-to-end compliance services for accounting and tax professionals and businesses of all sizes, including sales and use tax calculation, exemption certificate management, filing and remittance, and other related services

– www.avalara.com– Contact:

• Ray Bigley, VP Business Development• 206.465.5198• [email protected]

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Setting Partner Expectations and Reporting to Drive Performance and Accountability

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