Delegation's What You Need

ARTICLE ON DELEGATION FOR ACCOUNTANCY AGE ADVISER COLUMN BY PHIL SHOHET AND ANDREW JENNER, DIRECTORS, KATO CONSULTANCY - July 2005

The recent KATO managing partner survey revealed that, on average, partners in independent accountancy practices were recording over 1000 chargeable hours per annum. What should be a matter of great concern to every firm, was exactly what the partners are doing during those chargeable hours. The fact is that in the vast majority of firms partners are wasting time undertaking work that should be done by other people. For a number of reasons they are reluctant to delegate more mundane tasks and the business is suffering as a result.

Underdelegation will inevitably lead to higher job costs (and therefore reduced profitability). The by-product is that it damages the morale and motivation of support staff by starving them of more challenging work and ultimately leads to a loss of the skill building that would normally take place through the relationship of the delegator and delgatee. But perhaps more damaging to the business is the fact that partners who are spending too much time on low value client work are neglecting the high value advisory and management tasks so essential to the future success of the firm.

For some partners client work provides a ‘comfort zone’ and they persuade themselves that their involvement in low value work means that the client is receiving a better service, but the reverse is usually the case. Decisions made by those closer to the action lead to speedier results, and having properly trained ‘understudies’ at all levels leads to better organisation and a more effective department.

For others it is the risk involved that makes them reluctant to delegate. Although specific tasks, duties and authority can be delegated, accountability remains with the delegator and this can cause problems for partners who do not have complete faith in the ability of their subordinates. If this is the case then the problem is solved through better communication and training for junior staff and a more structured approach to supervision and mentoring.

The process of delegation should be methodical and understood by everyone involved. Partners need to analyse individual assignments and identify those aspects that can be delegated and to whom (a lack of suitable candidates may well highlight a need for additional training). Selecting and appointing the right people is just the start. Partners must also:

• Ensure subordinates understand the limits of the delegation
• Advise all concerned personnel of the delegation
• Give subordinates confidence by putting trust in them
• Institute occasional spot checks to monitor effectiveness, but always with the subordinates’ knowledge
• Appraise progress and set standards and targets progressively with subordinates
• Revise job descriptions (including their own!) when the task is successfully completed.

Effective delegation of work will spread the load evenly without putting too much pressure on any individual; it will enable jobs to be completed quickly and cost effectively whilst giving partners the freedom to concentrate on major planning and creative work. It will also improve staff morale as people are encouraged to develop and make full use of their skills. Clients will receive a better service and the firm will see a significant improvement in profitability.