The Practice Leaders Critical Role in Governance
A future-focused CPA firm must have alignment among culture and strategy. When we think of structure, we typically think of governance and consider the roles of managing partners, CEOs, executive committees, etc. But where do our Practice Leaders fit into the governance structure?
I've worked with firms on their governance structures, and when I ask, "Where do your Practice Leaders fit into governance?" I often get an uncertain response. I believe this uncertainty comes from a lack of role and expectation clarity.
What is a Practice Leader? For the purposes of this discussion, a Practice Leader is someone who leads a significant business segment of your firm. This typically is a Service Line or Industry Leader, and this article will focus on those roles. In some firms, this can be a geographic leader, and, for the most part, much of what's discussed below will be applicable.
We don't often consider these roles in a governance sense. In my firm leadership experience, however, they can and should play a critical spoke in the governance wheel.
Often, we select our Practice Leaders based on their technical expertise or business development skill rather than their overall leadership skills. This approach is understandable but misses a great opportunity; we need great leaders who have comprehensive leadership attributes.
A well-rounded Practice Leader should directly impact the following:
People
Client services
Growth
Innovation
Leadership
Accountability
Practice management
Strategy
Technical proficiency
The misconception that they must be technical experts or solely a go-to-market leader is simply not the case. Let me be clear: technical strength and market leadership are critical elements and are included in my attributes above. My focus, however, is on the comprehensive nature of the needed leadership.
For example, I work with a firm that has an audit partner leading their tax department. You might say, "How can that work?" It has and, I'd say, rather effectively. It's about picking the person with the best leadership skills to address the need. It is not always about knowledge but more about the person's ability to lead strategically. This audit partner had the leadership attributes the tax department needed to grow in alignment with the firm's goals.
While I have a preference to Practice Leaders being skilled in the area they are leading, we must remember the greatest attribute is their leadership acumen.
As our CPA firms evolve, executive leaders must strategically drive growth and determine the firm's direction. These leaders can only do that if they know these elements of their practice are getting the attention they need. This is where the role of the Practice Leader becomes crucial because if they are focused on the nine attributes mentioned above, the executive committees or boards, C Suite, and others can allow themselves to be more strategically focused and can stay out of the minutiae.
If we don't have our industry and service line leaders aligned around helping drive accountability and the governance structure, we will not have the same level of success. It's time to clarify the role of and empower our Practice Leaders. This will provide clarity, trust, and even the authority needed to let our people truly impact change.
If you are ready to empower your Practice Leaders and effectively align practice area strategy with the firmwide strategy, contact me. A firm's future is impacted by effective leadership, and I want to help your firm succeed.