Building Rainmakers: CPA Firms Must Seek out or Create the Kind of Business Development Partners Necessary to Compete in the 1990s
New business is the lifeblood of every CPA firm. But do people become CPAs to spend their careers marketing and selling professional services? Probably not. I certainly didn't. After a career in outside sales, I became a CPA specifically to avoid having to sell anything again. Most CPAs are a lot like me: somewhat reserved and frequently critical by nature. Only about 10% are natural salespeople (fewer in some firms). The rest of us were attracted to public accounting for numerous reasons: perhaps because we were task oriented; we wanted to think for a living; we were craftspeople at heart; we liked being challenged and helping people. But usually the reason was not because we enjoyed selling and marketing. Most firms go out of their way to hire the brightest accounting majors right out of school. Many of these graduates have spent their nights and weekends studying rather than interacting with their peers in social settings and outside activities. Many firms built by entrepreneurial founders hire technicians to do the work the founders brought in--technicians who have little talent for or interest in becoming marketers. This staffing strategy served CPA firms well until fierce competition arose in recent years. Some firms are stumped by the challenge of funding their entrepreneurial founders' retirement when the remaining partners aren't skilled in or thrilled by practice development. In addition, our profession has been experiencing radical changes. According to Bill Pruitt, managing partner of Arthur Andersen & Co.'s Miami office, "Some products are getting old--we have to go into new ones. To introduce new products, we must market them. We as a profession are forced to learn the market better." There are four basic ways for CPA firms to hire and create the right kind of entrepreneurial partner and manager to help firms grow in the 1990s: They can provide mentors for them or acquire, hire or develop them. ACQUIRING Many firms have had success in merging or acquiring practices. To improve marketing efforts, firms might look to purchase practices in which savvy marketing partners are still actively involved. Bringing proactive partners into a firm not only builds a practice but also can provide a good example for existing staff and partners and inspire them to invest time in marketing. MENTORS Firm rainmakers traditionally have been shown the ropes by a veteran marketer. The best training involves observing an experienced partner, being tutored in methos and approaches and having initial efforts nurtured and encouraged. Of course, this approach requires rainmakers willing to take younger colleagues under their wings. At Blackman, Kallick, Bartelstein in Chicago, "we have a member of our marketing staff who works with the managers and supervisors to help them develop their networks," says Dan Fensin, managing partner. "He makes introductions for them at banks." In addition, "partners meet with staff regularly. Every staff member is assigned to a partner. We call it the 'One-on-One' program. We have lunch with them and talk to them about our own experiences in building a practice. I've told people there's nothing more exciting than that prospect calling up to say you have the work. It's the greatest feeling in the world." HIRING Marketing problems can be avoided by choosing people right for the firm. "It all starts in the recruiting phase with the kind of person you hire," according to Steven Messing, partner in charge of tax at KPMG Peat Marwick in Miami. Here are some ways to improve the chances of recruiting a future entrepreneur: * Be direct with prospective employees. Let candidates know the firm wants more than staff accountants. They should be told that every employee is responsible for building the firm's business. Inform them that becoming a partner depends on building a powerful referral network and bringing in a material amount of work. …