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The e-Guide to Partner Compensation

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Owner compensation within a professional service firm is often a contentious issue. The Guide to Partner Compensation walks you through this important process, with emphasis on the emerging Balanced Scorecard approach. In addition, we offer a thorough discussion of other methods, breaking down the strengths and weaknesses of each. You will also find sample plans and scorecards as well as a leadership survey to get you started.

The Balanced Scorecard

While several compensation methods have some degree of prominence within the accounting industry, one idea that's catching fire is the Balanced Scorecard approach. Its emphasis on strategy, accountability and the promotion of teamwork sets it apart from the others—which are typically only oriented around financial measurements. This new method requires vision, critical thinking, and time to properly implement, but it could also mean the difference between excellence and mediocrity.
Change may be difficult, and it will likely take time along with plenty of communication to sell this important new vision. Nevertheless, the "normal” state of affairs should not deter a firm from striving to improve its compensation system. Use the Guide to Partner Compensation to build a compensation plan that results in a win-win outcome for everybody.
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