Jack Welch, the highly regarded and successful former CEO of General Electric, once said: “My main job was developing talent.  I was a gardener providing water and other nourishment to our top people.  Of course, I had to pull out some weeds, too”.

Welch recognised that succeeding at succession involves building a pipeline where you recruit the right people; identify potential to develop the people who are then ready to go onto the bench awaiting the next available position.  People come out the top of this pipeline bubbling with success while others drop out or, as Jack Welch says “are weeded out”.

But wait …

I'm sure you've heard all this before and, indeed, the logic of building a pipeline can’t be argued with.  However, what I have observed over many years of consulting to professional practices is that no amount of logic will lead to successful succession unless there  is motivation (motive for action) to actually put a process in place. I have devised a simple succession satisfaction test to see how you are feeling about succession in your practice right now:

Now add up your current satisfaction levels and score it out of 50.  A low score, in other words low levels of satisfaction, will make it more likely that you will overcome the natural human resistance to change.  Let's not beat around the bush, if your current satisfaction levels are high then it is most unlikely that you will make any changes. 

We know this from studies of people who find themselves in what seems like a very unsatisfactory situation in their private or business life, yet no matter how much advice they receive, will stay in that situation.  The reason is that there are more psychological and physical benefits for them not to change.  We also know that they will not change (even if dissatisfied) unless they have some vision of a different future or some idea of where to start.

Tipping point

If you are dissatisfied with succession or just a little curious my aim in this report is to give you some practical and useable information to up your potential for change.  

Much of what can be said about succession, indeed around the process which I started outlining at the top of this report, can be found in many places on the internet or in some wonderful books.  In this report, I intend to create a difference in what information I share with you that could be the tipping point for the proverbial “weight on your shoulders” around succession in your practice.

In this report, I will emphasise the human side (not the mechanics) of succession and outline six principles of successful succession that I have learnt in consulting over the last 15 years.

What is succession?

Succession is the process of recruiting, training and developing skills and competencies in your people to enable them to take on additional responsibilities with successful results.

Most importantly then succession starts with an intention and the mindset that we make ourselves superfluous.  There needs to be a mindset of talent spotting and development which matches the time you spend on your own development.  Are you giving time and energy to thinking about what one of your team (or partners) need to get their job done, to have more interesting work and stretch them to perform to a higher level?

So principle one is intention and mindset.

Getting out of the car parking spot

If you had the right people in place today would you move to one side in your role?

If you answered ‘yes’, then you're ready and heading in the right direction with succession.  If ‘no’, then succession is not likely to happen.  Succession will not happen unless you can get out of your existing car parking spot (current role).

Let's follow this metaphor a little further.  If you move out of your car parking spot only then does it allow someone else to come in.  At the same time, to reduce your own anxiety (some is normal), you have to have some idea and belief in the person taking on your role and a belief in yourself to take on a new role (occupy a new car parking spot).  If the belief in yourself and the other person is not there, you will be tempted to head back into your car parking spot and with someone else already there what is most likely is a big crash.  It can be very messy!

I find a powerful way of testing this belief is the “When I am alone” test.

When you're alone, what do you say to yourself about yourself (or others)?  It's in these quiet moments that will give you an insight into your belief and, indeed, into the belief we have in others.  Are you delighted to be out of your car park and looking forward to the new (car parking spot) challenge?  Or are you saying you can’t do it and don’t want to do it?  Are you doubtful that your staff can take over?  Are they really incompetent or do they just do it differently to you?

So principle number two is belief.

Pulling on an important lever

One of the best levers for successful succession is an effective structure within your business and clear role definitions which enable tasks given to your people to be completed to expectations.  Furthermore, your structure should give people the prospect and opportunity to progress.  An effective structure means you can grow and by growing serendipitously you are able to create a much more effective structure.

Let's delve a little deeper.

As a manager there are certain tasks you must complete to be effective in your role.  When engaging with your staff, at one extreme, a manager can abdicate by over delegating leaving your team member floundering..  On the other hand, the manager can be controlling which means whilst it may look like they are delegating, they are actually micromanaging and hovering around the person giving them little chance to breathe, let alone perform. 

While the extremes may be rare, managers do oscillate between them and I find the best place is to sit somewhere in the middle giving just enough instruction and training to get the job done.  In getting the job done the team member derives satisfaction and motivation for the next task.  At the same time (and most importantly) this builds trust in the working relationship between manager and team member and what follows is a willingness for each to take on new tasks and thrive.

So, principle number three is trust.

The right conversations

In developing succession there are a number of conversations that need to be carried out.  I do recommend some tools (360 feedback, strengths profile and performance reviews) that can be used to have these conversations, however, it's important to remember it's not about the tools, it’s about the conversations. 

The conversations should be around performance, career development and client service.  A person needs (and most want) feedback from their manager and also from their fellow team members.  The feedback has be honest and sometimes people need to be trained and prepared on how to give honest feedback.  In Australia (yes the research backs this up) there is a tendency to work around issues and not have the honest conversations.  Once people are trained in giving honest feedback and see the benefits, they usually seek it out like kids find sweets in the supermarket!

So, principle number four is honest conversations.

Having more time

A few years ago I facilitated a planning workshop for 15 key staff of a growing business.  We evolved a grand vision, strong objectives and an action plan that delighted everyone.  Of course, as happens in most planning workshops, the anxieties of all are usually voiced by at least one who asks: “Where will we get the time to put all these things into action?…We are so busy already”.  The managing director had a simple response: “We just have to find it!”

So how do you find this time?  I suggest that clients adopt a time philosophy to help accumulate more.  With a philosophy you give yourself permission to make time (without the guilt) and what tends to happen is finding the time energises you to do the ‘day to day’, so you end up getting it all done anyway.   

For more information, refer to our previous be your best report.   

So, principle number five is the discipline of making time.

Be strong and of good courage

In the end, you never know how strong you are until being strong is the only choice you have.  Don't wait for that and take action now.  Have the honest conversations you probably already know you need to have.  Make the changes you feel necessary and you will be amazed how people respond if you handle things in an honest and respectful way.  You can even have people walking out of your room feeling good that you've just changed their role! 

Entering the courage zone is where you will really feel alive.  Working through this zone makes people walk 12 feet tall.  They feel proud of themselves and have a real sense of achievement as they have done the hard work. 

So, principle number six is courage.

Beyond the internet and books

I've outlined six key principles of succession that are oriented around your interaction with people and your own self management.  If you rated yourself with high levels of dissatisfaction, do you have some clues now of where to start to overcome the natural resistance we all have to change? 

If you are still stuck then find yourself a good friend, mentor or business coach that will help you see your blind spots and give you the necessary feedback to make a success of succession in your practice. Everyone can improve.

Let's start by removing some confusion.

People seem to have a lack of clarity between the notion of change versus change management.  Maybe you don't have this confusion and for those who have, let me straighten it out for you.  Change is actually easy and it's moving from your current state (how things are at the moment) to a desired future (how things will be). 

Think about it, in one stroke of a pen you can write a cheque and pretty soon a new piece of software is installed in your practice.  Maybe for some, parting with the money may not be that easy, however, that's a subject for another day!

The big challenge is to get people to use the new (and invariably improved) software programs.  How many times have I walked into a practice and heard a lament that goes something like this “We have new software that people aren't really using to its full potential.  They are working around it and still doing things the old way!”

The challenge for leaders and managers is to transition your people from the old way of doing things to the new.  This is often called change management; however, I like to call it “leading transition”.  Change management implies something that you can organise into neat little coloured Lego blocks and assemble following a prescribed plan.  Nothing can be further from the truth because in leading transition you are dealing with people who are your unit of currency for effective implementation of the change.  And, people being people, the value of the currency will be directly and proportionally related to the willingness and ability of your people (in particular those directly impacted by the change) to move from the old to the new.

The work of William Bridges on leading transition has particularly influenced me and many practitioners in the change and project management field.  Let me try and explain his simple model:

Imagine a piece of paper with three columns.  In the left hand column is the Current State and in the far right hand column is the Desired Future.  In the middle column is what’s called the Neutral Zone which is that time that people take to move to the new.  This time in the neutral zone can be a micro second, several weeks, months or years or (hopefully not) forever.  In the neutral zone people are feeling lost, resentful, fearful and uncertain about the change.  It’s the neutral zone that is the real work of leading transition and it’s the workplace of a leader, manager and agent of change.  Those who can learn more about the people side of change will become more effective change agents.  I will return to this shortly.

The Business Case

Before tackling the issues around leading transition we need to look at change itself and the case for change.  This has to be the starting point and if we go back to our example of a new piece of software then a well thought out business case needs to be established.

Developing a business case is a great practice management discipline.  It gives you an understanding of the costs and benefits as well as preparing the ground work for the reasons you give to your team for the change.  When you prepare a business case those reading the details of the business case will see that thought and work has been put into the decision to change.  It’s far better than mentioning it to someone around the water cooler and expecting, while they are in the middle of thinking about a phone call from a client or have an urgent piece of work that needs to be done, that they will give it the attention that it deserves and that you certainly would like.  It’s like having a well thought out meal with brilliant presentation compared to a takeaway.  Both will satisfy your hunger, but only one will leave a lasting impression and get an emotional positive reaction (if done well).  Isn’t that what you would want from your team?

Here are the elements that are most useful in producing a business case:

1. 1. Executive Summary
2. 2. Objectives - What do you want to achieve
3. 3. What are the options - Benefits, costs and risks
4. 4. Recommendations - Outline thinking and conclusions
5. 5. Implementation Plan - Include project team, roles, responsibilities and  timelines
6. 6. Post Implementation - Monitoring including KPIs (how we know it’s working)

If you would like an ic leadership Business Case template please complete the contact us form.

Leading Transition – Five key principles

When assisting people through the transition within professional practices and other organizations at ic leadership, we have developed five principles (NAMSR) that stand the test of time.  I think you will find whilst each of them makes common sense, the challenge is they are not always common in their application.  Those leaders and managers who can master these will be true agents of change.  The five are:

1.      Create the NEED to change.  Explain what will happen if we do and what will happen if we don’t.  Give people the big picture and make it as clear as possible.  Avoid general statements like “we are going to get more efficiency into the office”.  Look to sell the problem before going to the solution.  Think and develop your narrative before delivering it to the team.  For example, you might say “The world is changing and people can now buy goods on the internet, track the order and have it delivered to their door in five days from the other side of the globe.  We are competing with this type of service that our clients now expect and so it’s now good business practice to be able to give our clients information on the progress of their work.  So we now have to ......[insert your own situation].”

2.      ACKNOWLEDGE the old.  Explain that the old way was great for its time.  Look for opportunities to recognise the contribution that people made to the organisation, to the systems and to the success of the organisation in the past.  Build a bridge between the past and the necessary future.  For example, you might say “Terry did a great job in setting up our old system and making it work well so that we could process our clients’ documents efficiently.  What we need to do now is use those same skills that Terry has and has taught others to put this new system in place so we can demonstrate to our clients....... and also remove some of the manual parts of retrieving documents which sometimes can take hours.”

3.      Create MOTIVATION (motive for action).  Explain what will be different and why it will benefit them.  However, at all times be honest so if somebody is, in fact, losing out because of the change, acknowledge that.  Don't hide from what's really going on.  Listen and empathise.  This will reassure people you are on their side.  It diffuses opposition and builds trust which will end up giving you information you otherwise would not have and, therefore, be better placed to get the new software used well.  Avoid frustrating self talk like “they ought to be able to get going with that, it’s only changing some software”.

4.      Give people SKILLS – Complete a skills assessment and ascertain what gaps there are and what training is required to ensure that team members feel confident and competent to work with the new and leave the old behind.  

5.      REINFORCE the change.  Look for opportunities to acknowledge success.  Reward with praise and other appropriate incentives.  Ensure you monitor the implementation as sometimes, to save face, people won't say something and just resort to the old way of doing things which drags the project down.

It is vital that you don't skip any of the above steps.  If, for example, you only explained why the organisation needs to implement a new piece of software and then proceeded to give people the training, your chances of successful implementation will be significantly diminished.  Skipping out acknowledging the old and, importantly, creating a desire for the person to change will almost certainly lead to them asking the question “what’s in it for me?”  If they don’t get a clear answer they will most likely not engage in the training (which is not the same as attending), not use the new software well or stay attached to the old way of doing things.

Reinforcing the new

There can be a long process of getting a new piece of software in place and once people start to use it, it’s usually accompanied by a sense of relief.  You may even have a celebration.  However, it’s now so very important that you put some processes in place to ensure that the change sticks.

Here are a few things you can do to ensure that the change has taken hold:

1. 1. Survey the staff and conduct mini audit of usage;
2. 2. Look at any exceptions and establish cause;
3. 3. Have meetings to reinforce successes and discuss/correct exceptions;
4. 4. Meet with people personally to discuss progress; and
5. 5. Celebrate successes.

In summary

The goal of leading transition is to enable and encourage the successful individual transitions required by a project or initiative - since organizational results are only achieved when the individual employees impacted by a change embrace and adopt the new way of doing their jobs.

The research speaks volumes for ensuring you lead the transition well.  It’s somewhat counter intuitive to spend a lot of time leading the transition (“Oh they will work it out,” you say) however, spending this time with your people during transition will repay you in spades.  In our experience at ic leadership, and indeed the research shows that, the more effective the leading of transition the greater will be 1) meeting the desired objectives of the project, 2) staying on schedule and 3) staying on budget.

The next time you are faced with the prospect of having to change something pull out a piece of paper or prop yourself in front of a flip chart and start writing your business case and then a plan of the key areas to address (use NAMSR as a checklist) to help your team more easily move from the old to the new and reap the rewards including getting change that sticks and becoming a much more successful agent of change.

Some background

We have all been in front of a refrigerator late at night (I know I have) looking for something to nibble on.  We may be a little hungry, however if we are honest with ourselves, we could easily go till the morning without eating anything.  At a logical level (the more evolved part of the brain) we know we shouldn't do it however the reason we do is, in simple terms, because of the evolution of our brain.  It’s the emotional, or the reptilian, brain (responsible for survival, habits and addictions) that taps us on the shoulder at night and suggests we pay a visit to the refrigerator.

We have all got an inkling that there is a difference between the logical brain and the emotional brain, for example we have emotional outbursts from time to time that, if looked at logically, we would never do.

Over the last decade or so, being intelligent about our emotions (emotional intelligence) has become one of the hottest buzzwords in the corporate world.  Emotional intelligence has been popularised (although it was conceived back in the 1940s) by Daniel Goleman in his seminal book Emotional intelligence: why it can matter more than IQ (Bantam, 1995) due to Goleman’s ability to break down the tricky area of human behaviour into bite-size manageable chunks. 

Skills at work – three categories

Over the years I've conducted many training sessions and a myriad of personal coaching with highly intelligent professionals.  Most often the reason that they are using our services is that they have some struggle with issues surrounding their relationships and progress at work.  It's interesting to note that man can build computers and go to the moon, but still we continue to seek guidance on our capacity and skills to interact with other human beings. The Greek philosophers and Indian Sages were offering advice thousands of years ago about how to get on with ourselves and others.  Some things do take a while to learn!  

I've observed in my work that there are three categories of capabilities that a professional can be endowed with:

1) Technical skills- The capacity to gain and process (sometimes complex) knowledge, in a specialist area, that enables the person to solve a problem for a client or colleague.  For example, to deliver a set of financial accounts that are accurate, to assist a client with a shareholders agreement or deliver a financial plan.

2) General skills - The capacity to manage your day to day activities to deliver on expected results.  For example, time management,  computer literacy,  writing skills and documenting a new process.

3) Human skills - The capability to work with yourself and others to get expected results.  This would include working in a team, dealing with adversity, patience, drive and motivating others.  

The technical skills are usually those emphasised when a person first joins the profession and during the early years of their working life.  Some of the general skills they already have or are further developed (hopefully) during those early years of their working life.  We have all had the situation of a new (often first job) person starting and not understanding that one hour for lunch does not mean you come back at 2.10 and someone has to tell them!.  

Human skills, while we all acknowledge are important, don't seem to figure very much in early training either in a formal setting or within the firm itself.    As a result many professionals might progress, on the back of their technical skills, however flounder in their progression if the general and human skills are not well developed.  Worse still, if those areas are not well developed and the person is promoted due to their extremely good technical skills this can often be a forerunner to serious issues later.  It's not uncommon for me to walk into a practice and hear the lament of some of the partners who acted hastily in promoting somebody within a firm (to manager or even partner) without them having enough general and human skills. 

There has been much written about human skills and I have found that Goleman’s emotional intelligence competencies (about 22 of them) are extremely useful in understanding the human skills necessary for success and progress in a professional practice. Indeed, I see the journey through the three categories of professional capabilities as a journey from competent technician to a leader in the profession.  

Daniel Goleman himself said:

“It’s not that IQ and technical skills are irrelevant. They do matter, but mainly as ‘threshold capabilities’ that is, they are entry level requirements for executive positions… emotional intelligence is the sine qua non of leadership; without it a person can have the very best training, an incisive analytical mind and an endless supply of great ideas, but he still won’t make a great leader”.

At ic leadership we have found that understanding, rating and discussing your emotional competence is a powerful way to get clear on what you are good at and what needs further development.    

At ic leadership we have put together a mini diagnostic to help test your emotional intelligence competencies (complete form to receive a complimentary copy).  This test forms part of the work we do with coaching clients and also forms part of a leadership course we have jointly developed with our colleague Jon Kenfield.  

Can emotional intelligence be improved?

I have found when clients are seeking advice on improving performance and leadership they may suggest the need is for greater technical skills and that will win the confidence of their clients and team.  Of course there is some truth to this, however, technical skills as we have seen will never be enough to motivate and lead a team or build long term profitable business relationships.

What I suspect my clients are saying is that either, they don’t believe in being able to develop better human skills, or they themselves took the pathway to technical skills and it has been too anxiety provoking for them to explore the human skills (emotional intelligence)  side of life. Technical skills are seductive…they are much easier to control, deal with and develop.  

The question to then pose is: “if emotional intelligence is linked to success and it can be defined and measured can it actually be improved?”

There is a growing body of evidence (research and anecdotal) to support the notion that emotional intelligence is not something we are stuck with…it can be improved.  However, it needs to be noted that emotional intelligence cannot be developed overnight and it cannot be learnt in the same way that you learn technical skills.  Becoming more socially and emotionally competent requires more than cognitive learning to unlearn old habits of thought, feeling and actions that are deeply ingrained and to grow new ones.   We have seen that intellectual understanding does not stop us going to the fridge for the late night visit!  Having an understanding of what needs to be unlearned is vastly different to actually doing it.

My own personal experience of this occurred around 20 years ago when I retired from being a chartered accountant to work as a drug and alcohol counselor.  I did some training for this work (for one year) and found myself sitting around in a circle with my fellow students talking about feelings, emotions, role playing, getting feedback and reflecting on what I had learnt.  What I did not know then, and see now, is that we were developing our own emotional intelligence.  It is only possible to be an effective counselor (teacher/leader/coach) when you have developed your own emotional competencies.  It means you have a greater capacity to empathise with others, manage your own emotions, motivate others to change and build a rapport with the other person to have an open, trusting and long term relationship. 

Best practice in developing emotional intelligence

In my work and research over the last 15 years, I think the best practice for developing emotional intelligence can be summarised as follows:

1)     Readiness (you have to want too) and realistic expectations (you have to  be patient);

2)     Personal vision and goals  -  “what do you want”?

3)     Trusting relationships -  with trainer, coach, manager or mentor (it’s all about relationships) who provide feedback.  We are all in this together and want it to work;

4)     Assess current competencies – what are your strengths and areas to improve?  

5)     Real time learning – reflection, feedback - one on one meetings and on the job;

6)     Support at work – active engagement with managers/mentors and ensure obstacles removed (in particular lack of time); and

7)     Evaluate progress and adjust as necessary.

Benefits of developing emotional intelligence

The benefits can be both personal and organisational:

Personal

Often our own self talk defeats us before we start on something new.  We create diversions from what is required and put obstacles in the way of realizing our very best.  We do not believe we can change our thoughts along those lines.   In other cases people have the courage to start something however find the same pattern emerges when others are needed to assist and find the task is either incomplete, the quality is compromised or they find they have to finish it themselves.  

On the other hand we have all seen or heard of people who have overcome their own limitations and shown they have the willingness and capability to be leaders.     If we allow ourselves to develop our emotional intelligence (something that is possible with the right support) there is a feeling of mastery, confidence and belief that we can change and we can be better leaders.     As one client recently said to me (who is working on developing his emotional competencies) “This work has made a huge impact on my leadership…it’s been career changing”.  Finally by helping ourselves change we have a much better chance of assisting others in our practice to change…it is called “walking the talk”.  

Organisational – teams

There is an increasing need today in professional practices for people to work in teams. The teams could be in specialist areas (like superannuation and family business), administration areas, or industry areas (retailers or builders).

 A lack of team performance can, of course, be put down to training and technical skills however most often a lack of performance can be put down to negative dependencies, poor communication and, a lack of consideration empathy and understanding.   There is often an excessive amount of competition rather than collaboration amongst the team members.

In contrast, emotional intelligence skills can underpin a team that performs well.  This team would find it helps see and discuss problems as they arise so that the final product would not be compromised. This team would display characteristics of positive interdependence and interaction that promotes achieving expected performance.  They would understand that success is based upon each member's contribution and recognise that team members have different personalities and experience problems at different stages.  They would feel that it is healthy to discuss and offer constructive help and criticism in trying to resolve problems and are very aware of the consequences if emotions in the team are not dealt with in a proper manner.

As there is an increased importance in working in teams there will be a competitive advantage to any practice that continually works to boost the emotional intelligence within their practice. 

Organisational – clients

Providing services in a professional environment is a combination of hard skills (technical knowledge), general skills (time management and problem solving) and soft skills (empathy, awareness etc). In what proportion this is required is hard to say however as David Maister (Strategy and the Fat Smoker, 2008) has said “Ultimately hiring a firm is about confidence and trust. It is an emotional act.”

I have conducted surveys of the clients of professional practices over the last 15 years and mostly what dissatisfies the clients are things that would fall into the soft skills category. Things like being pro-active, investing in the relationship and anticipating what the clients might need. 

It follows then, that there is bound to be some advantage in getting and keeping clients if one can operate with high levels of emotional intelligence.  Yes, there will be some clients who might only be interested in the hard skills however, generally most clients will respond to those professionals who can work positively with the myriad of emotions that happen in a human interaction.  Just ask yourself, what do you like when seeking professional advice?

There is a growing awareness that success in the workplace and higher levels of emotional competency are linked.  The good news is that developing emotional competency is possible for all in the workplace.  It's a journey that is possible with the right motivation by the learner and the right support of coach, trainer and manager within the professional practice. 

It is clear that one walks into their workplace in the shadow of the past and while the shadow can light the future path it can also bring with it habits, reactions and attitudes which won't serve the individual or the practice well.  There is a distinct competitive advantage to be gained from any practice that adopts a learning and development mindset and backs it up with support and resources. It is never too late to start.

Your comments

Please share your comments, observations and experiences in the comment section below.  Do you agree that emotional intelligence is important?   Have you experienced its development?  Have you seen others develop?  What did they do?   

This is a story* of someone who made the shift from being an effective production manager and bored accountant to an energised leader. This is a story many professionals relate to who have been in their position for several years and feel the fire they once had is now smouldering at best.

In accounting practices there is usually at least one production manager, (and probably more), although we don’t usually give them that title.  The “production manager’s” role is to ensure that the lodgement program is met, the work is of an acceptable quality, the information on the returns submitted can be justified and verified and any other client needs that arise from time to time are met.  

Well performing production managers are very good at developing systems for quality, training staff, meeting deadlines, are task oriented and take action to remedy any bottlenecks in the system.  While this is very necessary and useful for most clients, what often happens is that members of the management team (usually the partners) play the role of production manager and this role is so consuming it does not allow time to stop, lead the practice and envision a compelling future that delivers on the needs of the partners, clients, prospects and staff. 

I do see that many practices are swamped with work that needs to be organised and completed.  The view expressed in this blog report is not a value judgement but rather a compelling case for building a business that beats boredom, attracts the best possible staff, is sustainable beyond the current partners and ultimately delivers enormous value to clients.

It wasn’t so many years ago that Tony Collins was at a career ‘fork in the road’.  He and his three partners had a solid reputation but they were predictable in their approach to the work.  They were solid trustworthy professionals who maintained high standards of work, done well and on time.  Their clients never had to be concerned that they would be fined for any non-compliance and they always seemed to be available to answer a question or help solve a business problem.

Tony however was finding his professional life mundane except for a new client every so often and the purchase of a small local practice, (which added some short lived spark into his life). Tony felt his life predictable without direction and he was often too tired for much else.  He was in his mid 40s and was questioning whether he wanted to stay in the profession.  He felt his practice as in a rut and there was no way out!

As Tony sat at the dinner table talking things over with his partner, she mentioned that she had heard a story about a Business Coach (Darren) , who had helped someone else get some more passion and purpose in his working life.  Tony was not one to usually seek out assistance but was feeling a bit lost and thought a chat with someone could not hurt. 

He made an appointment with Darren for the following week and in the meantime completed a short questionnaire that Darren provided him with to get him thinking and reflecting on some areas for discussion. The time for the appointment came quickly and Tony was feeling some trepidation while at the same time hoping for some relief to the anxiety he was feeling about his situation.

Darren proved to be an open person with excellent listening skills.  He guided the discussion without too much interjection.  He gave encouraging nods as well as asking great questions that made Tony think further about what he wanted and what is important to him.  Tony was struck with how the conversation was steered by Darren away from fault, blame and victim to teasing out some possibilities and generating hope.

From this first session with Darren, Tony realised that he still wanted to be in the profession and have a firm that was alive and well and ready for him to step away from, at his choosing, sometime in the future.  Tony wanted to take an integral role in creating a firm he wanted to stay in and to have partners and staff he wanted to work with.   Tony could see his first starting point was to “lead” his other partners to see that the way they were structured was no longer serving them.  What was needed was a managing partner who was responsible and accountable for implementing a strategy decided upon by the partner group.   Tony realised that this was important and needed to start work on this immediately.   He called a meeting of his partners and outlined to them his thoughts.  He was amazingly honest with them avoiding blame but rather starting to speak about the possibilities.  He was feeling good as he spoke as was being the leader he wanted to be and that the practice needed.   He outlined the role of the managing partner and how this person eventually had to have very little chargeable work but would rather be held accountable for things like growth, staff development, culture and overall achievement of the KPIs of the practice.  

Most of the partners, except for Warwick, were open and on side with Tony’s thinking.  They noticed he had more vigour in his voice and some of the old. Tony had returned - something they had not seen for several years. To assist Warwick in understanding, Tony asked Darren (the business coach) to address a partners’ meeting to give Warwick and the rest of the partners more idea of the practice growth model he had suggested.  

Darren’s visit came around quickly and one observation Darren shared was that Cutler and Co had many excellent Production Managers and team members.  Well intentioned and reliable professionals whose week was focused on drafting, checking and completing returns principally for the Taxation Office.  This work would be puntuated by a variety of (sometimes interesting) requests from clients.

Important work as this was, it left no time for anyone to work ON the business and creating a practice that not only met the needs of the clients and fulfilled their expectations, but also provided a stimulating and thriving environment for the staff.  As a result of this production pressure, the partners could see that even if a client had an ongoing need it was difficult to muster the time to attend to this other than as a project.  When they tried to do it ongoing the pressure of the production work was overwhelming and they were not able to meet the needs of the client.  So they either did not offer this service to the client or failed to meet expectations promised to the client when they did attempt to deliver some additional services. 

After Darren’s visit the partners at Cutler and Co made the decision to appoint Tony to the role of Managing Partner.   Over the next 18 months Tony worked closely with Darren to implement change.  The catch cry for the change was to move from “production managers” to “practice leaders” and so leaders of their clients and staff.

By the end of the first year significant changes had taken place and by the end of 3 years Cutler and Co had made remarkable progress.   Tony no longer felt lost.  He had renewed vigour and the practice had a higher level of energy and productivity.  Many clients commented on the positive culture and what a pleasure it was to work with Cutler and Co now compared to three years ago.    A few clients, (ones they wanted to keep), even conceded that had changes not been made, they would have sought other accountants and advisors. Other clients who had previously sought other ways to solve their business problems now have Cutler and Co meeting those needs.  New services were developed and clients were finding their accountants to be more like business partners adding real value to their businesses.  They really were the trusted advisors.

While everything appeared to be rosy, it was not without some angst to get the practice to take a new road.

One year into the process Warwick decided he did not have a place at Cutler and Co.  He wasn’t pushed out but could see that his approach to his clients (very hands on) was not the direction the practice was headed and so decided to set up on his own.  He left on good terms, took clients not suited to the new practice model and still refers some work to Cutler and Co.

At the end of the three years Tony reflected on the journey the firm had taken and the important learnings he took away. 

Somehow it’s not possible, (Tony is not sure why), to hold the role of production manager and be a practice leader simultaneously.  In one role the focus is on systems, processes, tasks and timelines.  In the other role it’s about strategy, direction, succession, people development and culture. 

In the last 3 years Tony has let go of all but a few clients and spends most of his working week with the partners and other functional staff as well as having relevant meetings with others.   While some could perceive that he is contributing very little because of his lack of ‘billable hours’, he looks back  with pride on the following achievements:

o   Cutler and Co have established 3 new divisions with partners heading up each division.  Two of the professional staff have risen to the role of partner and each is heading up a division.  The new divisions are consulting services, audit and family business services. Tony has noticed, with great pride, that the moment he stepped into his leadership role the leadership of others grew and developed.  Clearly Tony could not do it all on his own.   

o   The old core offering of the practice being tax and business services has been re-engineered and the clients can now see value in the offering.  Most clients are on fixed price contracts giving them certainty and are clear on the progress of their work (in real time) with the introduction of leading edge workflow management. 

o   In real terms turnover is up 15% per annum and the firm expects that this will be maintained if not exceeded in the coming years as more traction is gathered for the NEW Cutler & Co.

o   All partners and staff see the clients as clients of the practice, not the clients of the “production manager”, and refer work to each other. They share a philosophy of being a firm of trusted advisors for their target market.

o   Staff are more motivated and engaged.  Turnover has reduced with all the staff understanding the direction, philosophy and expectations the firm has for them.  Staff also know that the development programs the firm has in place for them is the best of a any comparable firm in Australia. 

o   Most importantly, Tony is once again passionate about and enjoying his role at Cutler and Co.   He no longer wants to leave or do anything else, and at the same time his new found leadership abilities inspire him to think about who should succeed him.  In his own mind he has drawn a line in the sand and said he will only stay on as managing partner for another 2 years.  In that time he will have passed the baton to Libby, one of the new partners and someone who Tony thinks will make an excellent managing partner.

 Tony is very realistic that Cutler and Co. has a way to go; however, he is delighted with the progress and very pleased that he has found a new role…that of a practice leader. 

Is there anything from this story that can make a difference to you and your practice in the next 12 months?  Leave any thoughts or just comment generally (by clicking the comments link below)  on the idea of leadership in a professional practice.