UPDATE: The case study below was published in my latest book – The Wealthy Accountant. The results in the table were for calendar 2018 and 2019. Since then both Partners AND their senior client manager have got their client chargeable time to ZERO.

That’s right – 3 leadership team members all at 0% chargeable. They achieved this as of June this year. It’s taken 20 months but now all 3 team members can work 100% ON the business and grow it to whatever size they want. They are truly running a Business rather than a Practice.

For every firm I coach the objective is to get Partner chargeable time below 500 hours and profit per partner above $1M. This firm tackled the time first.

If you’re interested in exploring the structure for your firm then let me know. We can hook up with a Zoom call and I’ll let you know if it’ll work for your firm.

Rob

 

CASE STUDY

When Partner chargeable time goes down and the time is re-allocated to the right growth activities the business will grow. Case in point is the 2 Partner firm lead by Jim and Sharon from Texas. Between them they had 1,344 hours of Partner IN time. One year later it plummeted to 229 hours – an 83% reduction in Partner hours – yet the revenue grew by 64%!

Why? Simple. We got the Partners to sell more instead of doing more. We got the Partners to lead more and build the foundations of a thriving business. The have built out an offshore team in the Philippines who work just for them and they even have one of their Filipino team members managing all the workflow (and the team) in the USA – from the Philippines.

With a new brand just rolled out, a very clear niche to target this business will achieve it’s goal of $10M in revenue over the next few years.

Metric Before coaching Year 1 of coaching Difference
Partners 2 2
Total team excluding Partners* 10.2 15 47%
Revenue $1,218,908 $2,000,117 64%
Profit before Partner salaries $364,853 $503,352 38%
Partner ‘IN’ time* 1344 229 -83%
Average Hourly Rate* $81 $113 39%
Profit Time Index* $271 $2198 710%

*Total team excluding Partners – includes ‘full time equivalent’ part time, full time, contractors, onshore, offshore & administration team members

*Partner ‘IN’ time – includes Partner client work (charged or not charged), team management and firm administration

*Average hourly rate – for client hours – revenue / client charged hours

*Profit Time Index™ – a measure of how well the firm operates without the Partners – Profit / Partner ‘IN’ time