The Recurring Pipe Dream

It happened once again.

Just as I thought I was about to wind up another day at the office my mobile phone told me otherwise.

On the other end was the managing partner of a firm in New York who inquired as to whether we offer executive recruiting services. He was in desperate need of a senior tax manager as filing season was rapidly approaching.

Imagine my surprise.

To his dismay I told him we don’t “head hunt” so to speak. And for the record we also don’t consult in technology or sales training either but I told him we can refer him to others that do offer those services.

At our next company retreat I may respectfully suggest that we at least look into adding an HR unit considering the number of calls we get on the subject.

While it’s certainly understandable to want an experienced person to help guide you through tax season when you’re short-handed, I’m still astonished how many firm owners think that recruiting or “poaching” experienced seniors and managers – with or without a book of business - from their competitors is the key to solving future succession issues.

There are a number of words and phrases I’m tempted to throw out in reaction to that strategy, but in the spirit of mixed company I will hold my tongue – only slightly.

Repeat after me: the above-mentioned plan is not a succession solution, it’s a pipe dream. You and approximately 50,000 other firms around the country have the same idea.

The Holy Grail is what we like to call a young CPA with 5-7 years’ experience and they have become the hottest commodity in the profession – by far.

A succession solution lies in one of two places: internally or externally. If you’ve been proactive enough to build a strong bench and have a number of high potentials you envision one day assuming an equity role, then you’re fortunately light years ahead of too many firms in the U.S.

If not, then your succession lies externally via an upstream merger. And if you have to go the external route, you need to begin the transition at least five years before you plan to slow down. Otherwise you’ll be forced into a merger under less than desirable terms.

But whatever fork in the road you take, don’t dream that a dynamic young CPA is just going to walk into the office and ask if you’re hiring.

I guarantee you’ll be waiting an awfully long time.