New practice areas, staffing concerns, changes in technology, development of alliances, and marketing services are some of the factors forcing heads of firms to limit working their book of business and think more strategically. "The world of accounting has changed dramatically in the last few years," says managing partner Larry Unruh of Hein & Associates in Denver. "Scandals have brought increased scrutiny and regulation for companies and their auditors. We have at least three generations, all with their own views on balancing their work and personal lives, trying to deliver service to a greater diversity of clients who expect more value for their dollar. And all this is going on while the marketplace has become increasingly global and new technology threatens to make our investments in operating systems obsolete. These new demands call for a fundamental shift in the way we run accounting firms."

Unruh took his MP post four years ago, inheriting "a solid firm with well-established lines of business in many markets. However, the changes in our profession have made the past four years very challenging. As I stepped into my new position, I knew that I would have to set a new course to ensure continued prosperity for the firm." Research on the notion of leadership has led him to form his own perspective on the qualities that make a leader successful in a professional services firm. "Leadership goes well beyond administrative and management issues," he points out.

"A leader must be visionary and paint a compelling picture of the future. The leader has to articulate the vision and attract the kind of people needed to make it happen. To be effective, leaders must be respected and admired. Above all, they must be trusted. Your people must have confidence that, in difficult situations, you will do the right thing. You must engage and energize your partners and staff. After all, you can't lead if no one will follow."

"There are rainmakers and leaders, and they're not necessarily the same people anymore," says David Graling, managing partner of Gelman, Rosen-berg & Freedman in Bethesda, Md. As the strategic thinker, he says he's able to step back from the practice and focus on the firm, "where we'll be five years from now."

Jeffrey Smith, managing member with Brown Smith Wallace, in St. Louis, confirms that rainmaking is only one aspect of effective leadership in a firm. "Imagine if every $20-, $50-, or $70-million dollar business out there had leadership that only worked part-time? As business advisors, we'd think that was an unsound practice. Not to mention what if they were regularly competing with companies that had full-time leadership?"

"Today's firm leadership has to be more strategic," points out Vic Alex-ander, chief manager with KraftCPAs in Nashville, Tenn. "We have to develop systems and also processes that ensure that we have best practices, and identify key performance indicators and critical success factors. Leaders establish and communicate a vision and the tone for the organization. Many firms refer to this as their culture and/or core values."

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