The “Village” Idiot

You know what’s worse than getting no help in a bad situation?

Getting the wrong help.

Sort of like the friendly guy who helps you change a flat tire and forgets to tighten the lug nuts.

I’m sure we’ve all been there.

Sadly, I found it’s often no different in the CPA profession.

Case in point.

I was speaking to a two-partner firm in the Northeast recently about succession, which was not even a blip on either’s respective radar although with no discernable alternative with regard to an internal transition, it certainly should have been.

In any event, one of the owners said they had retained a consultant to lead their firm retreat the year before and said consultant recommended that they build a “village” internally rather than look toward an upstream merger.

Yes, you heard correctly – he advised them to look for young talent and stock their bench with high-potentials who would someday take the leadership reins.

Again, stop me if you’ve heard this before.

Aside from the absolute pipe dream that they would be able to locate what we like to call “The Holy Grail” – a young CPA with, or even without, a book of business, I told them in no uncertain terms that a two-partner firm could not realistically compete with larger firms in the talent wars. They neither have the money nor the resources – period.

But for argument’s sake, let’s say Karma was on their side and somehow they managed to snare the Holy Grail.

Fast forward a year or two.

Suppose he or she didn’t work out or wasn’t making the progress they had hoped. That’s precious time they’ve lost in a failed and most likely expensive experiment. So, if say they had a transition timeline of five years before they wanted to slow down to part time, they’ve sort of painted themselves into an uncomfortable corner and not by choice will have to work a few years more than they wanted.

He thanked me for my opinion (they always do before most of them completely ignore what I tell them) and said he would “take it back to his partner.”

I’ve learned that’s accountant-speak for “let me think about it before I say no.”

I wished him luck but unfortunately could envision what will eventually transpire before they begin pushing the panic button.

It’s like the person who unwittingly buys a watch instead of a compass and then is unable to figure out why they’ve been walking in circles for the past hour.