The Partner – Employee Paradox
A managing partner recently complained to me “I don´t know what to do with my partners. They want to have all the benefits of a partner´s status but it´s really tough to make them assume the corresponding responsibilities, other than just working with clients. They are always complaining about what is not working in the firm, but they never seem to be ready to be part of the solution. If I don´t chase them around the office, things never get done.”
The Paradox
I have seen the situation described above again and again, particularly in firms where there has been a high level of concentration in one or more partners in terms of client relationship and decision-making power. First-generation firms are bound to fall into this category.
The problem when one or few partners control what happens in the firm is that the other partners may be caught into the “partner-employee paradox”. On the one hand, they officially enjoy the partner status: recognition and respect by collegues, clients and staff. That is interpreted many times as the right to openly critize and express opinion about what happens in the firm and -although never explicitly accepted- certain flexibility when it comes to complying with firm´s rules and procedures. But on the other hand, -and this is the trap-, these same partners will apply a behavior that is more typical of an employee when it comes to provide solutions to challenges and difficulties faced by the firm.
The “employee attitude” of some partners is evidenced by various behaviors, such as: (a) lack of interest about the general state of the firm, as opposed to circumstances that could affect them economically or professionaly in a direct way; (b) a sense that somebody else will solve the problems for them; and (c) lack of creativity and/or iniciative in providing solutions or suggestions.
Partners are seldom aware of that situation and are reluctant to acknowledge this type of weakness. Leaders, on the other side, are many times part of the problem since they feel more comfortable in total control and they prefer to complain about their partners´ shortcomings rather than finding a real solution. A system is therefore created that works for everybody, except for the firm.
¿Can we change?
The only way of solving this unhealthy paradox is making partners feeling and behaving like partners. Although systems have a lot of influence in this matter (compensation, governance), the problem starts with a relationship issue. It is the way the partners relate to each other that creates these mental frameworks, specially the way leaders relate to the rest of the partners. Many times senior partners do no treat other partners like equals, with respect and appreciation, but rather like employees. This is evidenced in thousands of small details that look inconsequential if your consider them separately, but that creates a very strong system overtime that is difficult to change.
My suggestion to the managing partner mentioned above was to avoid putting more preassure initially on the other partners from a performance perspective. That could work as a reinforcing loop so well described by Peter Senge in the Fifth Discipline, since partners could react with a stronger “employee attitude” and just try to get away with the requirements. But that will not produce a change of mind where partners start thinking, feeling and acting like an owner.
A better strategy should include deep, honest and open conversations -both collective and individual- raising the following issues:
Rojo ¿Do we all agree that the firm needs partners that think and behave like partners/owners, as opposed to partners/employees?
Rojo ¿What limitations does the firm suffer to achieve that objective?
Rojo ¿Could we identify specific strategic, cultural and personal traits and systems that work against it?
Rojo ¿Are they possible to change and, if not, why?
Rojo ¿What is the best strategy to achieve improvements? ¿Do we need outside help?
Until firms take this matter seriously and do something about it nothing will change. When problems arise -and they will- change will be much more difficult and painful.A managing partner recently complained to me “I don´t know what to do with my partners. They want to have all the benefits of a partner´s status but it´s really tough to make them assume the corresponding responsibilities, other than just working with clients. They are always complaining about what is not working in the firm, but they never seem to be ready to be part of the solution. If I don´t chase them around the office, things never get done.”
The Paradox
I have seen the situation described above again and again, particularly in firms where there has been a high level of concentration in one or more partners in terms of client relationship and decision-making power. First-generation firms are bound to fall into this category.
The problem when one or few partners control what happens in the firm is that the other partners may be caught into the “partner-employee paradox”. On the one hand, they officially enjoy the partner status: recognition and respect by collegues, clients and staff. That is interpreted many times as the right to openly critize and express opinion about what happens in the firm and -although never explicitly accepted- certain flexibility when it comes to complying with firm´s rules and procedures. But on the other hand, -and this is the trap-, these same partners will apply a behavior that is more typical of an employee when it comes to provide solutions to challenges and difficulties faced by the firm.
The “employee attitude” of some partners is evidenced by various behaviors, such as: (a) lack of interest about the general state of the firm, as opposed to circumstances that could affect them economically or professionaly in a direct way; (b) a sense that somebody else will solve the problems for them; and (c) lack of creativity and/or iniciative in providing solutions or suggestions.
Partners are seldom aware of that situation and are reluctant to acknowledge this type of weakness. Leaders, on the other side, are many times part of the problem since they feel more comfortable in total control and they prefer to complain about their partners´ shortcomings rather than finding a real solution. A system is therefore created that works for everybody, except for the firm.
¿Can we change?
The only way of solving this unhealthy paradox is making partners feeling and behaving like partners. Although systems have a lot of influence in this matter (compensation, governance), the problem starts with a relationship issue. It is the way the partners relate to each other that creates these mental frameworks, specially the way leaders relate to the rest of the partners. Many times senior partners do no treat other partners like equals, with respect and appreciation, but rather like employees. This is evidenced in thousands of small details that look inconsequential if your consider them separately, but that creates a very strong system overtime that is difficult to change.
My suggestion to the managing partner mentioned above was to avoid putting more preassure initially on the other partners from a performance perspective. That could work as a reinforcing loop so well described by Peter Senge in the Fifth Discipline, since partners could react with a stronger “employee attitude” and just try to get away with the requirements. But that will not produce a change of mind where partners start thinking, feeling and acting like an owner.
A better strategy should include deep, honest and open conversations -both collective and individual- raising the following issues:
Rojo ¿Do we all agree that the firm needs partners that think and behave like partners/owners, as opposed to partners/employees?
Rojo ¿What limitations does the firm suffer to achieve that objective?
Rojo ¿Could we identify specific strategic, cultural and personal traits and systems that work against it?
Rojo ¿Are they possible to change and, if not, why?
Rojo ¿What is the best strategy to achieve improvements? ¿Do we need outside help?
Until firms take this matter seriously and do something about it nothing will change. When problems arise -and they will- change will be much more difficult and painful.A managing partner recently complained to me “I don´t know what to do with my partners. They want to have all the benefits of a partner´s status but it´s really tough to make them assume the corresponding responsibilities, other than just working with clients. They are always complaining about what is not working in the firm, but they never seem to be ready to be part of the solution. If I don´t chase them around the office, things never get done.”
The Paradox
I have seen the situation described above again and again, particularly in firms where there has been a high level of concentration in one or more partners in terms of client relationship and decision-making power. First-generation firms are bound to fall into this category.
The problem when one or few partners control what happens in the firm is that the other partners may be caught into the “partner-employee paradox”. On the one hand, they officially enjoy the partner status: recognition and respect by collegues, clients and staff. That is interpreted many times as the right to openly critize and express opinion about what happens in the firm and -although never explicitly accepted- certain flexibility when it comes to complying with firm´s rules and procedures. But on the other hand, -and this is the trap-, these same partners will apply a behavior that is more typical of an employee when it comes to provide solutions to challenges and difficulties faced by the firm.
The “employee attitude” of some partners is evidenced by various behaviors, such as: (a) lack of interest about the general state of the firm, as opposed to circumstances that could affect them economically or professionaly in a direct way; (b) a sense that somebody else will solve the problems for them; and (c) lack of creativity and/or iniciative in providing solutions or suggestions.
Partners are seldom aware of that situation and are reluctant to acknowledge this type of weakness. Leaders, on the other side, are many times part of the problem since they feel more comfortable in total control and they prefer to complain about their partners´ shortcomings rather than finding a real solution. A system is therefore created that works for everybody, except for the firm.
¿Can we change?
The only way of solving this unhealthy paradox is making partners feeling and behaving like partners. Although systems have a lot of influence in this matter (compensation, governance), the problem starts with a relationship issue. It is the way the partners relate to each other that creates these mental frameworks, specially the way leaders relate to the rest of the partners. Many times senior partners do no treat other partners like equals, with respect and appreciation, but rather like employees. This is evidenced in thousands of small details that look inconsequential if your consider them separately, but that creates a very strong system overtime that is difficult to change.
My suggestion to the managing partner mentioned above was to avoid putting more preassure initially on the other partners from a performance perspective. That could work as a reinforcing loop so well described by Peter Senge in the Fifth Discipline, since partners could react with a stronger “employee attitude” and just try to get away with the requirements. But that will not produce a change of mind where partners start thinking, feeling and acting like an owner.
A better strategy should include deep, honest and open conversations -both collective and individual- raising the following issues:
Rojo ¿Do we all agree that the firm needs partners that think and behave like partners/owners, as opposed to partners/employees?
Rojo ¿What limitations does the firm suffer to achieve that objective?
Rojo ¿Could we identify specific strategic, cultural and personal traits and systems that work against it?
Rojo ¿Are they possible to change and, if not, why?
Rojo ¿What is the best strategy to achieve improvements? ¿Do we need outside help?
Until firms take this matter seriously and do something about it nothing will change. When problems arise -and they will- change will be much more difficult and painful.
