CPA Practice Advisor - 25

THE STAFFING & HR ADVISOR
Successful Succession:
7 Tips for Getting There
PAUL McDONALD

Senior Executive Director
Robert Half
paul.mcdonald@cpapracticeadvisor.com

DEDICATED ACCOUNTING FIRM executives, not unreasonably perhaps, may not be able
to imagine the firm without them. Nor do they want to tempt fate and think too heavily
about losing critical colleagues or direct reports.

On the corporate side, nearly half of CFOs in a
Robert Half Management Resources survey reported
they have not identified a successor, primarily
because they're not planning to leave soon. You may
see similar trends in public accounting - and even
at your own firm.
A strong dedication to the organization is
admirable, of course, but using it as an excuse to
not engage in succession planning is misguided.
Even if you expect to stay for the foreseeable future,
you never know what you'd do if an irresistible
opportunity came your way. If you are up for an
internal promotion, your firm may want assurance
someone can quickly step in before they make a final
decision. What about your colleagues and staff? Not
all employees share the same commitment to the
firm. Failing to plan for every possibility imposes a
major self-induced risk to your business.

WHY YOUR FIRM NEEDS A
SUCCESSION PLAN
Succession planning isn't something to be left to
chance. Here's why:
■■Staffing continuity - The departure of a leader
disrupts workflow, productivity and customer service.
On the other hand, when you codify processes and
ensure someone else has the know-how to take over a
role, the firm can weather transitions more smoothly.
■■Institutional knowledge - Each employee who leaves
your firm departs with a wealth of experiences and
skills that can't be quickly passed on. By recognizing
this ahead of time and taking action, leaders will
be ready to transfer critical legacy knowledge - as
opposed to finding themselves in a panic.
■■Business strategy - Companies facing an unplanned
departure might be forced to put key decisions on hold,
and this has a negative effect on major initiatives,
including client service, business development and the
introduction of new technology. Succession planning
ensures important projects don't get derailed.
■■Employee retention - Talented CPAs know their skills
are hot in today's job market. If they're uncertain about
their advancement opportunities in-house, they might

seek them elsewhere. Succession planning gives key
performers another reason to stay on, and you another
way to reward their hard work and retain them.

7 TIPS FOR IDENTIFYING AND
PREPARING SUCCESSORS
Understanding the need for succession planning is one
thing, but how do you go about it? Here are seven tips:
Plan for each position. You need a succession plan
only for senior roles, right? Wrong. Management should
have a strategy in place so they know what to do when
anyone leaves.
Know your options. Sometimes the succession answer
is a series of promotions, while for other roles you
could divide responsibilities among existing staff
until a new employee can be hired.
Prepare early. Succession planning doesn't
happen overnight, and you certainly don't want
to be doing it under pressure. Prepare promising
candidates as soon as you've identified them,
which can be as early as a new hire's first months
on the job.
Provide growth opportunities. For future
leaders to expand their skill set, they need the
right conditions. Assign them to head up progressively larger teams with progressively more
responsibilities. Give them more opportunities
for working with your firm's leaders and for public
speaking. Have them back up senior managers on
leave or vacation. The more they can hone their
skills before being in the spotlight, the greater
their chances of success.
Institute formal mentoring. An excellent way
to transfer institutional knowledge and train
future leaders is to pair them with a current
one. This master-apprentice model has worked
well throughout history. A mentor can also help
mentees grow their network, which is crucial for
collaboration and professional support.
Give them formal training. On-the-job learning
is essential, but that may not be enough for
certain executive roles. Some may require
another certification, while others would benefit
from an MBA. A good succession plan budgets for

professional development resources and education costs.
Review the plan regularly. Market conditions, clients,
technology, business expansions and contractions -
nothing remains the same. That's why you need to
keep your succession strategy updated. Good times to
re-evaluate the plan include the start of the financial
year and after performance reviews.
You've frequently managed clients' business risk
as part of your job. Now it's time to minimize internal
risk by making sure retirements, resignations and
other staff departures won't get in the way of your
firm's success. ■

JULY 2019 ■

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