Perspectives from the Profession: A Future Leaders Framework to Ensure Accounting Firm Succession

This article originally appeared here on Inside Public Accounting.

If you are sick of hearing about firms looking for ways to stay independent, wondering how long this Private Equity bubble will last, or even AI, then you are in good company in our industry, attempting to grasp the fastest evolution our businesses have yet experienced. Public accounting is once again shaping up to be part of history and its rewrite. We are at an inflection point, but I’m not telling you anything you haven’t already read, heard about or experienced for yourself. Nearly every firm is feeling the continued effects of talent shortages, increased turnover, and a widening gap between experienced partners and rising professionals. This is not “news”. At the same time, the expectations placed on firms are expanding, and clients want strategic advice that aligns with their changing work, that’s backed by innovative, technology driven solutions. It is fitting for the neologism, a mindfull, which is defined as a thought, idea, or experience that challenges one to expand their understanding or adopt a broader, more adaptive way of thinking; something that stretches one’s cognitive capacity and invites growth, reflection, and new perspectives. And, on top of all that, this is happening whilst employees are seeking workplaces that reflect their values and humanity (culture quotient) and desire a forward thinking leadership acumen that can embrace the new normal. Now ask yourself, is your firm prepared to do all that?

In my doctoral capstone research, focused specifically on leadership development as a strategy for retention in U.S. public accounting firms, I interviewed leaders across firm sizes, markets, and practice areas. Despite differences in geography and structure, their experiences pointed toward a shared truth: technical excellence alone is no longer enough to sustain a firm’s future. What drives retention, engagement, and leadership readiness is the quality of human connectedness inside the firm. Five dominant themes emerged from this research, creating a system or a roadmap for firms ready to evolve their leadership approach and build a pipeline that lasts. This framework, rooted in academic research leverages human capital theory (Becker, 1964) and transformational leadership theory (Burns, 1978). One may wonder why theories developed more than 30 years ago might have relevancy today, and to that I would remark that they are proven, repeatable and relevant to impact to a sense of belonging which is undeniably what the speed of communication has in fact bred both positively and negatively on our industry.

Individualized Leadership & Culture: Belonging Is a Leadership Strategy

Employees remain where they feel safe and seen. On the laurels of Maslow (1943), whom recognized a framework that was consistent with making certain that basic needs were met before embarking on further individual growth to reach actualization, firms that demonstrated the highest commitment to retention were those that recognized that people do not grow in identical ways yet still required a formulaic basicness. Leaders in these organizations made space for individuality and not just in work style. Through tailored communication, motivation, and career

pacing, these firms achieved a level of adhesion that other firms did not recognize in real time. Individualized leadership, most academically explored by Transformational Leadership frameworks, expands the ways people can succeed. When individuals feel they belong, they stay. The development of culture that embraces this theme actively curates and intentionally designed culture in a way that everyone experiences it unanimously. This was specifically true of the firms that had high rates of retention and is echoed by Dr. Jessica Levin’s research on culture and connectivity (2024).

Empathy & Trust Development: Leadership is Built Through Relationships, Not Roles

The leaders who were most effective at developing talent practiced empathetic behaviors such as listening before fixing, asking questions before instructing, acknowledging stress, and building trust through follow through. Empathy is not necessarily an innate skill and those that do not possess this emotional response fluently often are left without followers or at a loss for true connections. Those that participated in research acknowledged that empathy didn’t always come naturally and that they had to work on it, develop it and flex this skill in practice. It is that extra activation that aided in their success. The same can be true for building trust. It is not a soft skill per se; rather, it is a retention mechanism. A lever in ways that falls along the lines and parallels of attributes for great mentors and coaches. One way to develop trust amongst professional staff is in feedback delivery and learning ways in which coworkers communicate. As such, employees notably stay where they feel supported and understood, reemphasizing intentional firm culture awareness.

Mentorship & Human Connection: Professional Growth Requires Structure

Mentorship cannot rely on chance. Almost every firm I’ve spoken to has some iteration of a mentor program. One firm may call it a STARS program, another may call it a Coaching University, nonetheless, firms that formalize mentorship see greater loyalty, clearer career vision, and reduced anxiety about advancement. Effective mentorship includes pointed pairing of new professionals to seasoned professionals, scheduled conversations, shared accountability, and clarity of goals. Mentorship is not a perk, it is infrastructure designed to develop and retain future leaders. Too many times, I’ve been told that a partner was expected to have the capability of mentoring/coaching/leading at the go of their reign, yet, they had not been trained, nor explained the role or responsibilities. How can we have this expectation without tutelage?

Human connection is an innate quality of being human. This starts as an infant and continues to build our entire lives. We will have both personal and impersonal connections with others, yet the majority of interactions with “strangers” will occur in a workplace setting. It is, therefore, incumbent upon the organization’s leadership as well as the individual employee to develop and seek out ways to connect even in an uncomfortable setting. Embracing this very real and necessary human component amidst a highly technological environment can strategically make a difference in our firms and in the world.

Business Acumen & Innovation Readiness: Developing Future Partners

Future leaders need more than technical skills. This sentiment has been echoed industry wide, yet not all firms have the budget or futuristic approach (hence why our industry is currently being targeted) to execute. We must learn how the firm operates as a business, the business of accounting. Leadership development must include exposure to financial drivers, client advisory strategy, workflow economics, and opportunities to innovate. And how might we train innovation to our future leaders? The same way we taught engineers to build, with Legos. Give them the tools and lets them create, embrace delegation as a guide to advancement. Without choice business acumen skills, firms risk producing excellent technicians who are simply unprepared to lead.

Ethical Leadership & Modeling the Way: Culture Is Behavior

Culture is not stated, it is demonstrated. Employees watch how leaders handle conflict, deadlines, boundaries, and fairness. Modeling ethical leadership is not just listening to the required, otherwise rote tri-annual ethics training and it’s more than the verbiage we use in our Vision Statements of “Integrity”. It is the fabric of the way you as a leader show up every day for your firm, your clients and your people. Future leaders learn from what leaders do and not just what they say. Integrity is taught through example.

Where Firms Go From Here

Leadership development is no longer optional; it is the most strategic retention tool a firm has, and from where I sit, one that will be the guide to firm independence. Firms that invest in human centered, mentorship driven, business aware leadership development programs will retain more staff, strengthen culture, accelerate partner readiness, and improve client continuity.

The future of public accounting is not just technical. It is human.