WHY DON'T PARTNERS GET ALONG?

• Author: Rosenberg, Marc

"Isn't it a shame we pay a consultant to travel halfway across the country to get us to really talk to each other--something so simple, yet something we have not been able to do ourselves."

A managing partner said this during a partner retreat. It was the first time the partners of his strife-torn firm had convened a meeting--of any kind--in years.

Sound like an exception? Well, it isn't. Two-thirds of the firms I work with either have major partner-relations problems or a pronounced lack of partner communication.

The CPA profession is undergoing a veritable revolution. Firm partners must contend with the profession's consolidation, the rapid growth of consulting services, the effect of new technology on their day-to-day activities, the need for proactive marketing, a declining supply of good staff and the necessity of adding new professionals to their firms to create multidisciplinary practices. Each of these changes must be addressed by CPA firm partners at a time when the demand for traditional services has never been stronger. Decisions have to be made to prepare for these important changes, but unfortunately the partners in many firms are suffering a form of "paradigm paralysis"--they know they need to change, but they aren't sure how or what they should be. If partners aren't communicating well with each other, or if the firm is experiencing difficulty with partner relations, it is nearly impossible to resolve problems and the firm will be unable to move forward.

Differences between partners

Following are some examples of partner-relations problems common to many small- and midsize- CPA firms:

* Partners do not meet or do not hold retreats. Because of this, they don't have an opportunity to discuss the firm's future or determine how satisfied they are with its present state--and the firm, as a result, lacks direction.

* The firm's two major departments function like two separate firms. Lack of cohesiveness and inconsistent leadership are the result.

* A partner, who's a rainmaker, is interested only in his own practice and how much money he makes. His behavior toward the staff is characterized by surliness and a lack of respect, which may explain the high associate turnover.

A partner engages in excessive promotional activity outside the firm. This partner's production is well below the other partners and it will affect the general harmony.

* A firm has a production-based formula for partner compensation. Some of the partners dislike...