As with any strategic initiative, progress can be significantly derailed by individuals that nod their heads in agreement in public but do not adopt processes and/or quietly countermand them in actual practice.
Reasons for non-compliance/support vary and must be actively discussed within the owner group to get full buy-in, many of which are seen as the firm’s “sacred cows” that are not to be discussed. Here are five specific discussions around owner resistance that can only be resolved at the owner level:
Existing compensation structures often reward short term efficiency. Giving up compliance work that partners personally perform may result in lower compensation for that owner, creating silent resistance.
Firms must ensure that financial incentives reward the firm growing and not individual books of business. This means re-evaluating and re-negotiating compensation to reward those that support the strategic direction of the firm.
This post originally appeared on AccountingWeb.
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