A number of firms, especially the larger regionals, are going corporate. This approach to firm governance is seen as having an overall advantage over the strict partnership model as partners at different stages in their careers and with different specialties and concerns often find it hard to reach consensus or take decisive action quickly.
Corporate governance is seen as more effective because the overall profitability of the firm takes more center-stage, and a reluctant partner, not part of the executive committee, has less power to sidetrack or stymie initiatives seen as beneficial to the firm. Although this explanation is a bit simplistic, it helps illustrate that some aspects of the corporate model work very well and can be applied to accounting firms. On the flip side, there are some that don’t.
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