The One Firm System – Part 2

Turnover at one-firm firms is clearly more carefully managed than it is among competitors. Those one-firm firms that do enforce an up-or-out system (McKinsey and Andersen) work actively to place their alumni in good positions, preferably with favored clients. McKinsey’s regular alumni reunions, a vivid demonstration of its success in breeding loyalty to the firm, … Read more

The One Firm System

The characteristics of the one-firm firm system are institutional loyalty and group effort. In contrast to many of their (often successful) competitors who emphasize individual entrepreneurialism, autonomous profit centers, internal competition, and/or highly decentralized, independent activities, one-firm firms place great emphasis on firm-wide coordination of decision making, group identity, cooperative teamwork, and institutional commitment. Hewitt … Read more

Resting on Past Laurels

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

Evaluating Partners – Part 2

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

Evaluating Partners

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