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. Our team typically includes a lawyer, an economist, and a psychologist, each of whom is experienced in compensation issues in law firms. The review and redesign of a compensation system usually takes four to eight weeks. 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 six months, in terms of improved financial performance and business results.
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.