DEVELOPING PARTNERS, WHILE DEVELOPING CULTURE

“You’ve got to admit it’s getting better, it’s getting better since you’ve been mine”. GETTING BETTER. THE BEATLES.

In my I&P 72 about a year ago (“Are you developing your partners talent?”) I mentioned the importance of partner development as a key component of the firm future success. During last year I spoke with many partners in Latam firms asking their views about partner development and what they do about it. A majority of firms don’t do something specific about partner development, confirming my view that partners develop on their own … if they do that at all. The concept that associates that become partners know all they need to succeed is very ingrained in law firms culture. A minority of law firms do believe that they dedicate efforts to develop their partners potential but that typically goes through the evaluation and compensation process. Partners are evaluated according to certain goals and the results impact their career and compensation.

The problem with using compensation as a developing tool is that it is difficult to get the priorities right. Compensation is always tied primarily with what the partner give to the firm. It’s a reward concept: you give me this, I give you that. For that reason, the main element in compensation systems (even the holistic ones) is the financial contribution of partners. That may be measured in better or worse manners, but it is always a financial contribution. Other non-financial goals are sometimes included but they tend to be less important than financial targets, and even then, they are still within the reward dynamics. This may create a defensive structure between the partner and the firm: all suggestions for improvement, even if done in a productive way, might affect negatively the partner’s career and compensation. Therefore, it is not uncommon that partners find hard to accept criticism and suggestions for improvement. The development aspect of the equation is not a priority.

For the above reasons, is that I suggest that partners development should have a separate tool and environment in which partners do not feel immediately threatened and can concentrate on improving their skills. This makes all sense, especially considering that the quality of partners is probably the biggest differentiator from one firm to another. Another aspect is that clients tend to value mostly those skills that are not related to legal knowledge. That knowledge is assumed by clients when they work with major law firms in each jurisdiction. But the non-legal aspects that are more related to soft and emotional skills, tend to make a huge difference for clients when sensitive and complex matters need to be solved.

I am working on partner development programs that contemplate; (a) a different time and environment than the evaluation/compensation process; (b) an internal and confidential 360 survey that provides objective information on each partner’s strengths and weaknesses based on a set of seven talent dimensions; and (c) subsequent seminars where the results of the survey are discussed, in a first stage, at a general and confidential level with all partners and, in a second stage, at an individual level to allow personal improvements.

This article is too short to expand on all the details of this idea, but it seeks to accomplish some key objectives: (1) give a relevant place to partner development outside the compensation system, to reinforce its strategic importance; (2) work on critical soft skills that are key to a high level partner development; (3) use objective information through the internal 360 confidential survey, which is outside the usual firm management evaluation process; and (4) generate a partner’s discussion about what those skills mean in the real world for the firm, which is an effective way to discuss and create culture around goals and values. It is this culture aspect that I want to address below.

Culture is a very undefined and abstract term. People talk about culture without knowing exactly what that means. When partners talk about “our culture”, it tends to be a vague concept that include general values that normally would apply, at least from an aspirational perspective, to any good firm. But it becomes more difficult when it needs to be applied to specific day-to-day situations; and yet, this is what culture is about. A set of implied and very concrete values and behaviors that define the style and personality of a firm, may they be good or bad in their results.

The problem is that culture is mostly created and discussed in informal settings, where partners are not even aware that culture is build. Probably, the evaluation and compensation process is where the more institutional discussion of goals and values takes place. But compensation is not the best environment to discuss goals and values, and its impact on culture, because the controversial aspect of compensation might get in the way and prevent a fruitful discussion of what the firm’s main values and goals should be.

The best environment to discuss and create culture is when we talk about how we should develop talent, especially partners talent. An open discussion about what a good partner should look like based on real information would require a detailed analysis of values and goals and consensus of what is important for the firm, not from an abstract perspective but in a real life day-to day behaviors. To make a discussion like this productive, would require (1) to remove the typical restraints that partners experience, mainly the fear of being critized and undervalued, and (2) to avoid being too general and aspirational, preventing concrete results and improvements. For that reason, is that a partners development context could be a perfect setting to allow and foster a discussion about culture that would help the firm and its members to develop and mature to higher levels of performance and achievements.

Talent development, and partners development in particular, might be the biggest challenge for law firms in the next decade. Creating a culture and systems that promote this development is the main task of the current leadership in Latam law firms. It is time to shift from our usual standards where we feel comfortable managing our firms to find other ways to deal with a constantly changing world.