Selecting Your Next Firm Leader: A Strategic Approach to the Managing Partner Succession Process
If you’re reading this, chances are you’re facing one of the most critical decisions a CPA firm can make: navigating the managing partner succession selection process. Whether you call the role a managing partner or chief executive officer, this transition represents far more than a title change. It’s a pivotal moment—one that impacts your people, your clients, and your firm’s future. I’ve advised firms of all sizes on this very challenge, and the guidance I share here is rooted in decades of hands-on experience, proven strategies, and the occasional hard-earned lesson.
Let me walk you through how I help firms design and implement a succession process that not only identifies the right leader but also sets the stage for a smooth, strategic transition that earns trust across the board.
This blog is your step guide to building a thoughtful, strategic, and transparent managing partner succession plan. I’ve included a case study from a recent engagement (anonymous, of course), along with best practices compiled over years of working with both mid-sized firms and larger firms.
Why Leadership Transitions Matter More Than Ever
We’re living through what I often call the “Perfect Storm” in the CPA profession: Baby Boomer retirements, increased firm consolidation, leadership shortages, and shifting expectations from both clients and staff. In many firms, the current managing partner is at or near retirement age. For others, succession has been delayed due to economic uncertainty or a lack of internal talent ready to lead.
But waiting until the 11th hour to address managing partner transition is risky. Unsettling times call for proactive, strategic leadership changes—not reactive ones. Your firm needs a formal succession plan. Without one, you risk client transitions going poorly, future leaders being unprepared, and current staff disengaging.
A Common Mistake: Choosing the “Next in Line”
One of the biggest mistakes firms make is assuming the next managing partner is the most senior, most billable, or most liked. That’s not always the wrong choice—but it’s often not the best one either. The right firm leader should be chosen for “this moment in time.”
Attributes and skill sets that were perfect for the firm 10 years ago may not align with today’s business strategy. A leader who thrived in a stable market may not be the one to guide you through acquisitions of accounting firms or build out new service offerings.
I guide firms through a more scientific process. And it starts with asking the right people the right questions.
“Leadership transitions don’t fail for lack of talent—they fail when firms don’t take the time to define what they truly need. The right process reveals the right leader.”
Carl George
The Foundation: Surveys and Input from Key Stakeholders
The first step in the succession planning process is to survey your current leadership, including CPA firm partners and senior managers. We ask them three essential questions:
- What attributes do you want in the next managing partner?
- What skill sets are critical for our next firm leader?
- What should their top priorities be during their first 12-24 months?
This feedback is anonymous, compiled, and summarized to shape the leadership profile your firm needs. I’ve facilitated this with firm management teams across various-sized firms and geographies, and the results consistently surprise leadership.
You may think your team values decisiveness, but they may prioritize empathy. You may believe the firm needs a technical guru, but the team might prefer someone with strong communication skills and business strategy acumen.
This exercise does more than build consensus—it clarifies the expectations of the new firm leader and lays the foundation for an individualized development plan if you’re grooming internal successors.
Building the Job Profile Around Reality, Not Templates
Many firms default to using generic job descriptions when selecting a new managing partner, but this approach often fails to reflect the firm’s current needs and strategic direction. Instead, best-practice firms create a customized job profile grounded in stakeholder input, including partner responsibilities, strategic goals, and client service requirements.
This tailored profile serves as the foundation for a leadership development strategy—whether that involves a formal succession plan or a broader professional development plan—aligned with the firm’s overall business strategy.
Key competencies such as technical skills, leadership capabilities, and business intelligence are commonly incorporated. The result is a practical roadmap for identifying and evaluating potential successors who are best equipped to lead the firm forward.
Real Case Study: A Model for a Successful Managing Partner Selection and Transition Process
Let me share a recent experience working with a CPA firm that handled its succession with best-practice precision.
They engaged me to facilitate their managing partner selection process. First, they formed a nomination committee composed of respected partners. Then, we opened the floor for both self-nominations and peer nominations. Candidates submitted interest, and the committee vetted applicants utilizing the customized job profile.
Simultaneously, we conducted a firm-wide survey (as mentioned earlier) to identify the top desired attributes, skills, and initial priorities.
Each candidate was asked to:
- Complete an in-depth leadership questionnaire
- Participate in one-on-one interviews with the nomination committee
- Submit a position paper addressing firm challenges and opportunities
We also reviewed existing psychological assessments and past performance reviews, and then held open partner discussions.
In the end, three highly qualified candidates emerged. All had different strengths. But using the profile and survey priorities, the nominating committee and the partners selected the individual whose attributes most closely aligned with the firm’s future direction.
No one walked away feeling like they had lost. The two other candidates are still thriving as future leaders and remain committed to the firm’s success. And the new managing partner? They hit the ground running with partner buy-in, clear expectations, and a solid client transition plan in place. The firm continues to experience growth in the profession, and the partners are rowing in the same direction.
Navigating Partner Dynamics and Governance
CPA firm management isn’t just about picking the right person—it’s about getting broad agreement among stakeholders. Whether you use a supermajority vote, a nominating committee, or executive committee vetting, the process should reflect your firm culture and governance structure.
The key is transparency. The more inclusive and well-communicated your process is, the more likely you’ll achieve agreement structures that lead to a successful transition.
Aligning the Partner Selection with Client Service Excellence
Ultimately, the managing partner role exists to elevate both internal operations and client interactions. During succession, it’s essential to preserve client trust, client satisfaction, and service continuity.
That’s why my process incorporates a transition plan that includes:
- Transition of client relationships
- Updated client meeting protocols
- Client loyalty check-ins
- Clear ownership of client responsibilities
Client retention and firm leadership are closely linked. When clients see your firm taking succession seriously, they gain confidence in your long-term stability.
Closing advice from an expert in the field of the succession planning selection process of the next MP or CEO
The succession planning process is not just a checkbox item—it’s a strategic lever. Give yourself ample time. Engage your partners early. Consider potential compliance issues and compensation policies. And don’t forget to develop future leaders as part of your broader succession series.
This is where Carl George Advisory can help. I bring expert advice, strategic planning for CPA firms, and deep experience in managing partner transitions.
If you’re staring down a managing partner transition, don’t go it alone. It’s too important to leave to chance.
Let’s build your next chapter—together.
