Apart from the monthly billing figures, how do you assess the contribution of each partner to the success of the firm, asks Rachel Stone?
We are often asked to assist managing partners with the challenging task of setting out performance criteria for partners. Many firms still focus on billable hours, but recognise that they should be taking a broader approach. By looking at overall partner responsibilities, it is possible to build a far more specific and adaptable model to identify clear performance indicators for each partner. We usually start with a simple model of the four areas where all partners have some responsibility, whatever their role.
Identifying key performance indicators
All partners have responsibilities in each area, but clearly the balance is different for each partner role. Working with your partner group, you can build a set of performance measures that reflect your current and future expectations of each partner. This gives you a structured starting point from which to discuss development objectives. For example, financial measures such as billable hours, recovery and team revenue are all important; so too are business development measures such as marketing activity, lead generation and conversion of prospects into clients.
Over time, this model can also form the basis of a more focused approach to partner reward, creating an opportunity to build a reward package that reflects financial contribution to the firm, but also assessing the impact of partners' work in other areas, particularly in developing and winning new business.
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