The Perils of Ignoring External Succession in Accounting

Are you prepared for the leadership void in your accounting firm? What if your firm's next leader isn't even on your radar?

In this eye-opening episode of the Accounting Talent Podcast, Rob Brown dives into the critical topic of external succession planning for accounting firms. Building on his previous episode about internal succession, Rob explores why looking outside your firm for future leaders isn't just an option—it's a necessity for staying relevant and competitive in today's rapidly changing business landscape.

Rob highlights the alarming statistics that less than 50% of accounting firms have a formal succession plan, yet 80% expect to face succession challenges in the next five years. He emphasizes the importance of starting early, thinking strategically, and considering both internal and external candidates for leadership roles. The episode provides valuable insights into best practices for external succession planning, including defining clear roles and expectations, ensuring cultural fit, and adopting a hybrid approach that combines fresh perspectives with institutional knowledge.

Key Takeaways:
✓ Start succession planning early, thinking 2-5 years ahead
✓ Define clear roles and expectations for external hires
✓ Ensure cultural fit is prioritized alongside technical competence
✓ Consider a hybrid approach, blending external and internal talent
✓ Ignoring external succession planning can lead to significant risks and lost opportunities

Quotes:
"What got you here won't get you there."
"Succession planning is not just keeping the lights on when someone leaves. It's about setting your firm up for long-term success."

Chapters and Timestamps:
02:59 - The importance of external succession planning
06:07 - Best practices in external succession planning
08:59 - Start early and think strategically
10:10 - Define clear roles and expectations
11:20 - Ensure cultural fit
12:45 - Consider a hybrid approach
13:45 - Risks of ignoring external succession planning

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The Accounting Influencers Podcast is for accountants, bookkeepers, finance professionals and those who lead, work in, and serve them. Hosted by Rob Brown and special guests who are influential within their field, the podcast covers topics such as leadership, business growth, technology and automation, diversity and career development. Join the accounting influencers conversation at one of our virtual speed networking events for influential leaders and professionals in the accounting, finance and tech world:
https://accountinginfluencers.com/events