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Compensation as a Strategic Asset

Book Description

Everyone wants to work at a successful firm where the rewards are both financial and professional.  What makes the top firms successful is not merely superior execution, though that's a good place to start, what makes them stand out is excellence at hiring and keeping the best, and having a smart succession plan in place.  Partner compensation can be an effective tool in achieving these goals.

Authors Aquila and Rice show how to use recruiting, retention, goal-setting, evaluation, and pay for performance practices recommended by the top CPA firm management consultants.

This is the one guide you need, tailored specifically for professional practices, to implement the leading methods to align compensation with performance and strategic initiatives.

You get:

  • Analysis of leading views on performance management, hiring, and retention
  • Specific, step-by-step guidance on how to implement compensation systems that align to goal-setting and performance measurement
  • Methods for growing the compensation pie to pay for excellent results

Compensation as a Strategic Asset shows how to align mission, vision, values, strategy, leadership, goal-setting, performance management and compensation to achieve long-term success at your firm.

Table of Contents

  1. Cover Page
  2. Title Page
  3. Copyright Page
  4. Contents
  5. Foreword
  6. Preface
  7. Acknowledgments
  8. Chapter 1: Why We Need a New Compensation Paradigm
    1. Paradigm Shifts in the Accounting Profession
    2. Paradigm Shifts in Owner Compensation
    3. Final Thoughts
  9. Chapter 2: How to Grow the Compensation Pie: The Leadership Factor
    1. What It Takes to Be a Leader
    2. What Leaders Do
    3. How to Be a Leader
    4. Final Thoughts
  10. Chapter 3: Growing the Compensation Pie: The Big Picture Factor
    1. The 7S Model
    2. Applying the 7S Elements to Accounting Firms
    3. The Organizational Effectiveness Cycle
    4. Final Thoughts
  11. Chapter 4: How to Grow the Compensation Pie: The Mission/Vision/Values Factor
    1. Determining Mission and Vision
    2. Developing Values
    3. Final Thoughts
  12. Chapter 5: How to Grow the Compensation Pie: The Balanced Scorecard Factor
    1. The Balanced Scorecard
    2. Building the Scorecard
    3. Strategy Maps
    4. Final Thoughts
  13. Chapter 6: Compensation Terminology and Criteria
    1. Compensation Terminology
    2. Total Compensation
    3. Compensation Criteria
    4. Final Thoughts
  14. Chapter 7: Current Compensation Methods
    1. Formula Method
    2. Equal Pay Method
    3. Lockstep Method
    4. Hybrid Approach Method
    5. Managing Owner Decides Method
    6. All Owners Decide Method
    7. Ownership Percentage Method
    8. Pay for Performance Method
    9. Eat What You Kill Method
    10. Compensation Committee Method
    11. Executive Committee Method
    12. Pen and Paper Method
    13. Final Thoughts
  15. Chapter 8: Designing a New Compensation System: It’s About People
    1. The War for Talent Is Not Over
    2. Get the Right People on the Bus
    3. Final Thoughts
  16. Chapter 9: Designing a New Compensation System: Attract, Reward, and Retain Top Performers
    1. Key Learnings
    2. What Makes a Good Plan
    3. Designing a Compensation Plan
    4. Rolling Out the Plan
    5. Incentive Plan Success Factors
    6. Include Noncash Rewards
    7. Final Thoughts
  17. Chapter 10: Setting Goals and Managing Performance
    1. “Line of Sight” or Cascading Performance Goals
    2. Set Cascading Performance Goals
    3. Prepare to Write Cascading Performance Goals
    4. Write Cascading Performance Goals
    5. Define Measures of Success for Cascading Performance Goals
    6. Categories of Cascading Goal Measures
    7. Set Tasks and Action Steps
    8. Determine Personal Readiness Level
    9. Prepare Final Cascading Performance Goals
    10. Manage Performance
    11. Final Thoughts
  18. Chapter 11: Is a Pay for Performance System Right for You?
    1. Pay for Performance Challenges
    2. Performance-Based Compensation Is Not a Silver Bullet
    3. Getting Started—Diagnose Before You Design
    4. Goals and Attributes of an Effective Compensation System
    5. Building a Pay for Performance Plan
    6. Structuring a Pay for Performance Compensation System
    7. Providing Feedback in a Pay for Performance Compensation System
    8. Translating Performance Into Compensation
    9. Effects of a Pay for Performance Compensation System
    10. Final Thoughts
  19. Chapter 12: Pay for Performance: Align Compensation to Firm Initiatives
    1. Only Performance Is Reality
    2. Align Compensation to Strategic Goals
    3. Real-Life Example One—A Firm in Transition
    4. Real-Life Example Two—One Managing Owner’s Wake-Up Call
    5. Real-Life Example Three—Needed: Firm Growth; Challenge: How to Get There
    6. Real-Life Example Four—Tiered Reward System
    7. Real-Life Example Five—Compensation System in a Mid-Sized Firm
    8. Real-Life Example Six—Using the Balanced Scorecard
    9. Final Thoughts
  20. Chapter 13: Compensating the Managing Owner
    1. What Is a Managing Owner Worth?
    2. What Is an Administrative Owner?
    3. What Is a Real Managing Owner Worth?
    4. What Are Managing Owners Paid?
    5. Final Thoughts
  21. Chapter 14: What Will You Do Tomorrow?
    1. Four Keys to Success
    2. Considerations
    3. Benefits
    4. Final Thoughts
  22. Appendix 2006 Owner Compensation Survey
  23. Bibliography