Is your partner compensation system a strategic liability?
A law firm's compensation system should promote and reward performance and contribution to the long-term value of the firm.
In many firms, however, compensation actually undermines performance. An inadequate compensation system can also be a major factor in a firm's inability to recruit and retain the lawyers and other professionals that it needs.
Which compensation system is the best?
All of them and none of them...
Every compensation model -- even the much maligned "lockstep" and "eat what you kill" systems -- can work very well. Every compensation model can also fail miserably. This is why each Walker Clark professional compensation system is custom-designed for each firm.
We have no "preferred models" for professional compensation. Each firm's rules, procedures, and structures for distributing profits to partners should be a unique reflection of the partnership's goals and business values, as well as the financial characteristics of the firm's business. Regardless of the model that a firm selects, the partners need a way to reward extraordinary performance and to manage underperformance.
We can help.
We will assign a multidisciplinary team -- not just one consultant -- to work with your firm. The basic review and redesign of a compensation system usually takes 45 to 90 days. We charge a fixed fee, which includes all expenses, depending on the size of the firm and the complexity of the firm's current compensation system. Most firms can recover this amount in less than nine months, in terms of improved financial performance, business results, and the tangible benefits of improvement in the collegiality and collaboration in the partnership.
Ask your partners.
Are some of your partners less than completely satisfied with your current compensation system?
Are there issues about compensation that are so sensitive that you and your partners have avoided them?
Do you want to get better business performance from your partners?
If you think that the answer to any of these three questions is yes, contact us for a complementary initial consultation to design a project that fits your firm's unique situation, issues, and goals.
Not sure that you need to revise your partner compensation system?
Even if you believe that your current structures and policies for partner compensation are working well, you still need to know about your risks, some of which can materialize into a crisis in only a few months.
One of the most cost-effective investments that a small or midsize law firm can make in its future is to conduct a Walker Clark Partner Compensation Review, which will identify the strengths and risks that could affect the stability of your partnership and your firm's current and future financial performance. This service is especially designed for the special economic and professional dynamics of small and midsize law firms (i.e., firms with fewer than 30 partners). Contact us for a complementary initial consultation.