If your firm is thinking about, or currently going through succession planning, you’re not alone. 10,000 Americans turn 65 every day, so it’s probably not a shock that a generation of partners and firm leaders are approaching retirement. Succession planning can pay off in many ways, including giving current and future firm leaders the confidence to move forward. 

Three years ago I presented at the MSCPA’s Practice Management conference on the subject of “Rising Stars”.  It was for that presentation that I began to do research about why CPA partners don’t want to retire.  According to the AICPA, their #1 reason is that they don’t feel the next generation is ready to assume the leadership role to run the firm and bring in new clients.  I feel strongly that both the retiring and rising generations have some responsibility here.  The existing leadership needs to understand that the business development methods that have been successful for them are different now and will increasingly diverge from the legacy partners’ methods going forward.  

Sophisticated marketing can help set your firm up for success by providing a roadmap for emerging leaders, offering up new solutions for lead generation and growth, lifting up efforts to diversify your team and client roster, and nurturing the personal brand of rising firm leaders. Here’s how.

1. Plan for firm growth with future leaders in mind.

80% of the professional services buying process will be online by 2025 according to Gartner. Networking isn’t dead, but it can no longer be solely relied on for quality firm growth. 

Rising leaders need to understand marketing and business development trends, and the desires and expectations of buyers.  Being a generalist who serves the local market is going to lead to a far less profitable book of business for any professional service; insurance, law, accounting, etc.  Instead, being a service or industry specialist who works without geographic boundaries will allow you to command higher margins.  This works because being specialized decreases the number of competitors.  When buyers have fewer options, you can command higher prices due to price elasticity.  That is, people want your specialized guidance and will pay more for it.  

The more the partners stand behind what the firm does really really well, the more established your brand becomes. When your brand is strong, qualified leads come to you, not the other way around. 

2. Active Marketing

If networking locally to attract geographically close new clients won’t lead to the highest profit clients, we’re going to need another strategy. As buyers become more discerning with online research, comparison shopping, and are less concerned about physical proximity, you’ll need to step-up your online marketing game to get in front of your ideal clients. Marketing can help by creating a solid online presence with frequently refreshed educational pieces, industry research studies, ebooks and guides, and remote pitch meetings for the niche you decide to go after. All of this only makes sense if you’re leaning into your niches and areas of specialization (otherwise you’re just an out of town firm competing with local players). While it might seem like a big philosophical leap, encourage your team to be open to new ways of bringing in business.

3. Diversify Your Talent and Client Pool

If your firm page photo grid is relatively homogeneous, you may not be an employer of choice for tomorrow’s industry leaders. Do the work now to develop a company culture that supports workers of different abilities, racial and ethnic backgrounds, working parents and Millenial and Gen Z individuals who are looking for different benefits and opportunities than job seekers of the past. Make sure your firm culture and values are authentically represented throughout your website, social media and email communications, and in the firm's community engagement. Signaling to potential applicants that the firm is a forward-looking, modern workplace will help attract a diverse talent pool, and also signal to a wider range of prospects that your firm is equipped to handle the unique needs and challenges of their business.

4. Develop Personal Brand

Part of your firm’s success is likely due to the relationship between clients and the current partners. In today’s marketplace, that relationship doesn’t have to originate on the golf course or through a friend-of-a-friend. Social media platforms and content marketing provide the connective tissue to establish credibility with both prospects (far and wide) and current clients. Once you’ve identified who should be on the partner track and their area of specialization, start featuring them on your blog, post about their accomplishments on social media and pitch them as guests to industry podcasts. Not only will this help rising leaders build their own client base, but it will generate confidence and familiarity with your existing clients and you start bringing them into client meetings and ultimately make the transition following a partner’s retirement.

Your firm’s brand needs to be bigger than the people who are currently at the top of the org chart. Clients are looking for a firm that will be consistent and reliable for many years to come. They need to know that they can count on your firm to be there to help them whenever they need you, even if the senior partner who brought them in is no longer their primary point of contact. Marketing lets you demonstrate the depth of your bench and the strength of your brand. It communicates that your firm is more than any one partner. That you’re forward-focused and stay current with the trends that affect your clients. That your culture and values make you a firm worth doing business with, no matter who’s on your team at any given time. If you’re ready to incorporate these strategies into your succession planning, contact me today.