Asked and AnsweredBy John W. Olmstead, MBA, Ph.D, CMCQ. I am a partner in a 16 attorney firm in Memphis. Our firm has had the same partner compensation system for 20 years and we are generally happy with it. It is an eat-what-you-kill system. Since we are generally happy why should we consider changing it?A. You can start with the following firm self-test. Has the firm experienced or is it experiencing:Partner defectionsFirm splits and breakupsPersonal fiefdomsMaverick partnersHoarding workSystem perceived as unfairProblems acquiring and retaining top legal talentLow productivityLow profitabilityClient dissatisfactionLow moraleDisputes with former partnersIf your firm is experiencing or has experienced the above symptoms, it is time to really examine where the firm is headed and what messages your compensation is sending to your partners. Is the firm trying to be a firm or merely a group of lone rangers? Even though your partners are content, your compensation system may be holding the firm back from becoming all that it desires to be. Contentment may not be the best measure of success.Click here for our blog on compensationClick here for our published articles
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