There are two ways to justify a seniority-based system: First, the senior partners’ past efforts have contributed to the firm’s current profitability, and second, their greater experience makes them more valuable to the firm now. Both are testable propositions, however, and should not be assumed to be true. Some partners’ past contributions may long ago … Read more

Partner Self-Evaluation 1. PROFITABILITY Please comment on your contribution to firm profitability through wise engagement management control of billings, accounts receivable, work-in-process, and other financial matters. 2. QUALITY OF CLIENT RELATIONS AND SERVICE What special accomplishments have you achieved is providing outstanding service to clients, either through technical achievement or relationship management 3. COACHING AND … Read more

The process should begin with the firm sending to each palmer the quantitative information it keeps on partner performance (preferably including financial and nonfinancial scorecards, as described above) with a note saying Please prepare a self-evaluation of your accomplishments this year. As you prepare your review, please examine the enclosed quantitative formation on your activities. … Read more

One of the unfortunate quirks of professional firm accounting is that most of the critical strategic activities (such as training, allowing selected individuals reduced chargeability in order to develop new specialties, developing new project methodologies to achieve efficiencies, engaging in new service development) do not show up as “investments” in the firm’s accounts. Rather, they … Read more

Usually, the team will be sent away from the first such meeting to revise its thinking, and return for a second presentation. In most cases, this process will result in a clear plan of action and a request for some form of investment. When the management has listened to (and challenged) the plans of each … Read more

Some “Friendly Skeptic” Questions to Appraise a Strategic Plan What special capabilities do you plan to have that your best competitors cannot match? Why can’t they match them? What actions will you take to put these capabilities in place? In what way are your investment priorities likely to be different from those of the competitors? … Read more

There is a second problem with top down, firm wide strategic planning. If a central group (however formed) develops a vision of how to compete, then, as noted above, there remains the task of “persuading” the rest of the partnership to implement the prescribed course of action. It is on this rock that most professional … Read more

A good coach recognizes that coaching is a continuous process and does not “save up” feedback and performance guidance for a once-a-year grand counseling session. Constructive feedback and suggestions are much more likely to be accepted and hence be effective) if they are offered in small increments. Similarly, if counseling advice is given long before … Read more

I once interviewed the managing partner of a large office of an international professional service firm. I had been told that, without changing personnel or investing extra funds, he had converted a number of the firm’s declining and demoralized branch offices into flourishing practices. I was eager to learn the secret of his success. Would … Read more

Traditionally, admission to partnership in a professional firm has brought with it a complex bundle of rewards: Equity Participation. Partners share in the net profits (or losses) of the firm, while non-partners receive salaries and perhaps bonuses. Tenure. In most situations, partners cannot be removed except by an extraordinary vote of the partnership Autonomy. Whereas … Read more