Partner Concerns

Partner Compensation Systems

Partner compensation is the topic of constant conversation and numerous how-to conferences. The real answer is that the right plan for you depends on your firm. No two comp plans are alike. We re-wrote our comp plan several times over the years to incorporate changes in the firm and the profession. The Adamson Advisory process is to help you assess your compensation plan and revise it, if needed and includes the following:

• On site interviews with all partners individually and as a group.
• Understanding the history behind your current system.
• Balancing objective criteria with subjective judgment.
• Balancing salary/draw with bonus and how much is at risk.
• Balancing performance with seniority/history.
• Helping you decide the right performance criteria for your firm.
• Integration of firm goals into the process.
• Building in partner goals and accountability to the process.
• Comp plan for management.
• Assessment of open vs. closed system.

Partner Goal Setting and Accountability

This is one of the most critical parts of any partner performance and compensation system, yet it is missing in many firms. Matching partner goals to overall firms goals and creating a system to help each partner optimize their contribution to the success of the firm are the two keys to success. A process to improve individual partner performance will improve the overall results of the organization. See our related article, Five Tips to Make Your Partner Goal Setting More Effective.

We can help you:

• Match up partner goals with firm goals.
• Directly link achievement of goals to your compensation plan.
• Individualize goals to play on partner strengths.
• Separate hygiene (basic expectations of a partner) from goals.
• Build the process in your firm to include:
  • Coaching by firm leadership or outside coach.
  • Regularly scheduled meetings to review progress.
  • Consider publishing partner goals inside the firm.

Partner Coaching

During my years as a managing partner, I participated in two different executive coaching programs. The outside coach and mentor helped keep me focused and pushed me to achieve goals that I probably would not have done on my own. As a result, my firm created a partner coaching process where I coached the partner group.

Adamson Advisory is now providing that same partner level coaching to our clients. We work with your entire partner group. It is especially effective for new managing partners and newly admitted partners. Our process is built around quarterly on-site visits to your firm and face to face meetings with the partners. The benefits to your firm include:

• We hold you accountable and we help everyone improve their game.
• We break the goals and expectations down to manageable three month segments – you’ll get more done.
• We have the MP experience to help your managing partner.
• Making the investment to bring us in from the outside elevates the process and helps assure that your partners play.
• Many managing partners are either just too busy or don’t have the skill set to get the job done – we can help.

Partner Agreements, Partner Admission, Partner Retirement

Many of us look at our partner agreements even less frequently than we look at partner comp. The documents go in the file and rarely get any type of review. The result is that they don’t keep pace with changes in our firms or in the profession.

We recently completed a re-write of our partner agreements including changes in retirement provisions, in my prior firm. As a part or that process we conducted a survey of retirement provisions for over fifty of the top two hundred firms to help us benchmark.

I want you to pull out your agreements, dust them off and read them. You might be surprised at what you see.
Do Your Partner Agreements Include These Five Key Provisions?
Adamson Advisory will help your firm work through a process to review your partner agreements. We can tell you what the trends are and help you address key issues such as mandatory retirement, client transition, firm value and retirement benefits. Take a look at our article, Do Your Partner Agreements Include These Five Key Provisions?

We also have tools to assist you with new partner admission which includes how to handle lateral hires, how to structure a partner in training process and how to establish a no equity or low equity partner position in your firm.

Conflict Resolution

We understand the profession, partner relationships and common practices. We have the background and resume to help you. If you find yourself in a difficult or antagonistic partner situation we will help you to work towards a resolution that avoids litigation and benefits both parties. If you are already involved in litigation and need expert testimony we will support you there as well.