Protect your law firm by promoting star performers

Before considering the options, please remember that the best lawyer will not necessarily make the best head of department. You may lose fee income and the skills required to manage a department will not be there. Managing skills are not the same as those required for client facing work and management skills are required at partnership level especially when considering the needs of the continuing competence regime.

At the same time as thinking about promoting a star performer look at the structure of the firm. Is it appropriate to today and the type of firm your business has become or you might want it to become? Seek expert advice, not only tax, include matters necessary to reach the targets you set yourself. No business can be successful without a plan, especially for the next three to five years. Without a plan your business will drift. You may believe you are doing well but the reality is others are doing better and your risk profile will worsen.

How easy is necessary decision making? This is a very important question when considering the firm's structure. See above.

Some Key points:

1. Do not promote out of fear that the people concerned might leave if you do not promote. Promote on a good business case. Some matters to consider; desire, performance, relationship with colleagues, leadership skills, relationship with clients, ability to price and deliver work on time and within budget etc.

2. There are a number of situations where people have been promoted to partner because they have been at the firm longer than others. WRONG. See 1. above.

3. Identify those areas which need to be strengthened to benefit the firm and look to promote to satisfy these demands.

4. Reward longer term growth to meet targets. See 1 and 3 above.

5. Encourage and reward teamwork.

6. Ensure the management structure includes those capable of leading the firm.

7. If there is a dread of going to the office every day, there is a significant problem. An unhappy person will not be of benefit to the firm.

8. Different people have different qualities. Play to strengths and remember the other points raised above.

9. Promoting a star performer must be considered as part of the firm's overall strategy.

10. The person concerned should have an established reputation with clients and be admired, respected and a team player.

11. Plan your promotions and management and produce a timetable. Put more responsibility on the star performers as in 1. above and monitor how they react before taking the massive step to partnership.

Promoting from within should be easier as you already know, or should know, the individual's strengths and weaknesses. As I have said above, promote thinking about and using the information in 1. above.

In conclusion, important matters are, has the candidate:

• performed well during the last two years or more and achieved budget and profitability,
• had good feedback from clients,
• added to the good reputation of the firm,
• encouraged a good collegiate atmosphere,
• shown leadership potential,
• been involved in some business development,
• contributed in some way to the growing reputation of the firm and lastly
• complemented the partners in their strategy to improve profitability.

This post is intended as a guide to some important matters to review when thinking about promoting a new partner. Always seek professional advice. Do not think because you may be an expert at law, you are necessarily an expert at business. Remember an incorrect decision will cost the firm a great deal more than if a professional had been employed to assist. Finally, losing fee income because of time spent on the process of finding a new partner or not spending sufficient time on the exercise again may be more costly than employing a professional.

Contact me to discuss in confidence and free of charge and without obligation until a letter of engagement is agreed and signed.