Monday, July 19, 2010

Howard’s Inner Circle, No. 18: The Subjective Forms of Succession Planning

When I was editor-in-chief at Practical Accountant, I was always intrigued by succession planning at accounting firms.

It seemed to be missing at most small ones. Probably because most practitioners viewed the practices as totally identified with themselves and were busy attending to business. At best, a few had practice continuation agreements with other firms in the case of death or disability.

In the case of the medium-sized firms, especially where the founders were still in control, it seemed like there was an enforced belief that further succession planning wasn’t tolerated or needed. The founders assumed, when they retire shortly, the firm would last long enough to make the payouts under the partnership agreement.

The larger regional firms paid the most attention. I was impressed when there was a smooth transition and the managing partner handed the baton over to a named successor over a stated extended transition period. Then, there were the knockouts of the long-term managing partner closely identified with past successes but seen as an obstacle by rainmaking partners to a needed new direction. My favorite was where the very successful, political savvy managing partner closely guarded his or her power and so ensured he or she had no successor at the firm. Those firms often ended up being acquired by an even larger firm or consolidator.

Perhaps I was so intrigued because I didn’t really understand how subjective succession planning is. Rather than looking at it from the prospective of ensuring the future survival of a firm, my starting point should have been to better understand the individuals, the size of the firm, and the firm’s power players’ interests as they would more likely determine the favored succession plan.

© 2010
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The above is from the newsletter, Howard’s Inner Circle, which periodically appears on the blog, “Instigator” at http://howardwolosky.blogspot.com/. It may be reproduced in full if that fact is stated and Howard Wolosky is credited as the author.

Friday, July 16, 2010

Howard’s Inner Circle, No. 17: Seeking Solutions

I loved doing mazes as a child and I thought I had an original approach to solving them. A couple of years ago I planned to use a maze as an opening exercise for conference attendees. After giving them time to solve the maze, I explained my theory which I had held onto for over forty years and no longer believe. You see, prior to my presentation, Justin, the art director of my company had looked at the maze and said the best way to solve that particular puzzle was neither from the start nor the finish, but to begin from the middle. He was right!

Monday, July 5, 2010

Howard’s Inner Circle, No. 16: Entries in My Black Book

Not sure all my readers know what a “little black book” is. Wiktionary defines the phase as “an address book, especially one in which the details of previous lovers are recorded.” Don’t think that applies to mine, a looseleaf binder with about 80 encased-in-plastic pages of quotes and paraphases from books I have read.

Periodically I reread my black book to see if what I captured still has value. Also, I revisit it when I feel out of kilter and want to achieve a better balance, or improve my interactions with others.

Here are five quotes that particularly caught my attention today:

“If I ask people what they think of me, they are usually polite. But if I ask them if they’d be willing to tell me what other people say about me, I give them the opportunity to say things without putting them in an awkward position of criticizing me to my face.”

“The word listen contains the same letters as the word silent for good reason.”

“You learn in life the only person you can correct and change is yourself.”

“The more innovative your ideas, the smaller the number of people who will understand it.”

“I know G-d will not give me anything I can’t handle. I just wish he didn’t trust me so much.

Maybe Wiktionary’s description as “an address book, especially one in which the details of previous lovers are recorded.” isn’t so far off. Without giving specific attribution, the five quotes are by Sam Horn, Katherine Hepburn, David Maister, Mother Teresa, and Harry Beckwith.

© 2010
*****************************************************************************
The above is from the newsletter, Howard’s Inner Circle, which periodically appears on the blog, “Instigator” at http://howardwolosky.blogspot.com/. It may be reproduced in full if that fact is stated and Howard Wolosky is credited as the author.