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Why Partner Integration Should Be On Your Agenda

Why Partner Integration Should Be On Your Agenda

Partner integration signifies that partners are working, both individually and as a group, in a manner that optimizes firm performance and is in consonance with their expectations.

Firm management is customarily occupied with monitoring the project pipeline, the productivity of professionals, client satisfaction, hiring the best professionals and winning and managing work. These are considered key contributors to a firm’s performance and success.  However, partner integration can be an element of even greater significance to a firm’s performance and cannot be neglected or taken for granted.

Any sub-optimal performance at the partner level can have a multiple effect on the performance of the firm. This is because partners inevitably assume some management responsibility, whether managing a practice area, overseeing a group of professionals, handling certain client relationships or developing services and new business.

Partners consider themselves “owners” in the firm and, at a minimum, feel they should have some influence on how the firm is governed and managed.  To the extent that is not achieved it can lead to dissatisfaction, a lack of motivation and even disruption, resulting in a significant, and often costly, distraction for firm management.

Do any of the following symptoms of a lack of integration sound familiar to you?

Some of these situations may be overt (i.e. self-evident) while others may be covert (i.e. they exist but are not perceptible without specific questioning or analysis). All of them are examples of potential deficiencies in partner integration.

Where is your firm on the performance/integration map shown below?

Clearly performance and integration do not have unique definitions. They are a function of the values and objectives of a firm.  Their measurement is dependent on an evaluation of a series of characteristics, many of which are qualitative rather than quantitative.

For example, performance may not be based purely on revenue growth or levels of profit but also on levels of client satisfaction, growth in certain service areas or practices and retention rates of professionals and/or clients. Similarly, integration may include evaluation of such elements as time spent on partner issues, level of partner satisfaction, client feedback, level of cross-selling and partner turnover.

Can you plot your firm’s position based on your interpretation of the level of performance and integration?  Experiment doing this before reading on.

Let us now analyze the potential (common?) characteristics of firms in each quadrant of the map as indicated below.

Quadrant 1   LOWER PERFORMANCE/LOWER INTEGRATION

Risk: disruption, loss of partners/associates

Opportunity: improve financial returns, motivation and lifestyle 

Quadrant 2   HIGHER PERFORMANCE/LOWER INTEGRATION

Risk: loss of stars and/or practices

Opportunity: collaboration/synergies/cross-selling/joint client development

 Quadrant 3   LOWER PERFORMANCE/HIGHER INTEGRATION

Risk: retention of performing partners, lack competitive advantage, lack of growth and retention of professionals

Opportunity: high growth opportunity and competitiveness

 Quadrant 4   HIGHER PERFORMANCE/HIGHER INTEGRATION

Risk: low risk of partner issues or defection

Opportunity: focus on growth and development and market leadership.

Clearly Quadrant 4 is the place to be by maximizing opportunities and minimizing risks. There is no perfect firm and there is no such thing as zero risk, but moving toward the top right corner of the map should be on any firm’s agenda.

That move would consist of making adjustments to the firm’s structure, policies and procedures, its mode of management and partner expectations. These may be included in a Partner Integration Program (“PIP”) that could then evolve into an on-going process as the subject matter is fluid and requires monitoring.

A PIP may address the following, amongst other needs:

An effective partnership does not mean that all partners need to contribute in the same way but rather that the individual strengths of a diverse set of partners are used to maximize the strength of the partnership as a whole.

 A PIP will consist of the following phases:

Remember that certain situations may be covert and therefore, to be complete, any diagnosis should include some form of consultation with the partners themselves (interviews, surveys, etc.). Such consultations should be conducted by persons independent of management so as to avoid conflicts and not constrain responses.

Given that recommended actions will likely have a significant impact on partners’ roles and involvement with the firm, it is considered imperative that partners be consulted before any actions are approved. 

I would be delighted to explore further the idea of implementing a Partner Integration Program, (PIP) should it be of interest to you.

Leon Sacks
Author

Edge Principal is a trusted international executive with over 30 years’ experience in consulting and law firms. He is based in Miami and currently advises such firms on business strategy and operations with a focus on the Americas. He has worked extensively in Latin America and is fluent in Portuguese and Spanish. Contact: [email protected]