What drives the introduction of partner appraisal schemes? How to introduce and maintain

1. FICPI - 2009 Partner performance & culture © 2009 Duncan Hart dh@duncanhartconsulting.com

3. What do we mean? How to introduce and maintain Partner performance & culture

4. Profit allocation

5. Or something more sinister?

6. Culture? © 2009 Duncan Hart dh@duncanhartconsulting.com

7. What leads to its introduction? Partner performance & culture © 2009 Duncan Hart dh@duncanhartconsulting.com

8. Abolition of goodwill Impatience Easy in easy out regime Less long term ‘loyalty’ Pressure on profits Talent shortage Talent mobility Globalisation

9. Better understanding of what drives profit Capturing and analysis of information More professional management in HR Firms getting larger less personal Standards imposed on staff Pressure from below – partner performance © 2009 Duncan Hart dh@duncanhartconsulting.com

10. Need to have career path in place More scrutiny on who becomes a partner Recognition that more preparation required Technical skill alone not sufficient Performance management more accepted Need for mentoring and guidance Need for more formality in approach © 2009 Duncan Hart dh@duncanhartconsulting.com

11. Means to change partner behaviour Link change to profit share and rewards Capture competitive advantage

12. New staff looking for it Attract and retain staff Improve skills across the board Competitive advantage if have it Mentoring & guidance

13. What does it look like? What do we mean? Pluses and minuses Partner performance & culture © 2009 Duncan Hart dh@duncanhartconsulting.com

14. Strategic vision and objectives Align partners activitieswith agreed objectives Monitor progress of partners toward achieving those aims Rewarding those who contribute more Encouraging long termbehaviour Measuring by meansotherthan purely financial! Build collaborative workplace Develop skills to manage others and attract new partners! © 2009 Duncan Hart dh@duncanhartconsulting.com

15. Goals STRATEGY Competitive Differentiation Comprising… Customer Strategy Geographic Strategy Business Line Strategy Service Strategy Pricing Strategy MEANS OF IMPLEMENTATION Human Systems Structure & Governance Culture Leadership JW Lorsch & TJ Tierney: ‘Aligning the Stars’ 2002, Harvard School Press Strategic Alignment Goals STRATEGY Competitive Differentiation Comprising… Customer Strategy Geographic Strategy Business Line Strategy Service Strategy Pricing Strategy MEANS OF IMPLEMENTATION Human Systems Structure & Governance Culture Leadership © 2004 Duncan Hart Consulting

16. Must be equitable - based on agreed KPIs Allow for differing practices/profitability Administered impartially Reviewed annually to set weightings © 2009 Duncan Hart dh@duncanhartconsulting.com

17. Provide a clear career path and guidance Set out standards and expectations Differentiate between income and equity © 2009 Duncan Hart dh@duncanhartconsulting.com

18. Provide for guidance and mentoring Utilise external resources if necessary Teach planning at individual and firmlevel

19. Introduction and maintenance What do we mean? What leads to its introduction? Pluses and minuses Partner performance & culture © 2009 Duncan Hart dh@duncanhartconsulting.com

20. Introduce at retreat

22. Systems and processes

23. Growth and learning

24. Translate them into partner plans against which they are to be appraised

26. Your own sub headline Learning and Growth Financial To achieveour vision howwillwesustainourability to change and improve? Objectives Objectives Objectives Objectives Measures Measures Measures Measures Initiatives Initiatives Initiatives Initiatives Targets Targets Targets Targets To succeedfiancially, Howshouldweappear to ourstakeholders? Internal Business Processes Customer Strategy & Vision To satisfyourshareholders and customersWhat business processes must weexcel at? To achieveour vision howshouldweappear to ourcustomers?

27. Plan on a page © 2009 Duncan Hart dh@duncanhartconsulting.com

28. Make sure data collection and reporting is reliable

29. Agreea transparent oversight mechanism

30. You may need to change your partnership deed © 2009 Duncan Hart dh@duncanhartconsulting.com

31. Don’t introduce to target individuals

32. Pluses and minuses What do we mean? What leads to its introduction? How to introduce and maintain Key features Partner performance & culture © 2009 Duncan Hart dh@duncanhartconsulting.com

33. Don’t try and fit round pegs...

34. Summary What do we mean? What leads to its introduction? Pluses and minuses Key features Partner performance & culture © 2009 Duncan Hart dh@duncanhartconsulting.com

35. Plan and implement carefully

36. Process is important!

37. You have to be committed!

38. Build a culture of shared accountability

39. Coach And Introduce progressively Be strategic Strategic Priorities Are vital Educate/monitor Planning individually Is central Be clear On your objectives Terms of Partners agreement © 2009 Duncan Hart dh@duncanhartconsulting.com © 2009 Duncan Hart dh@duncanhartconsulting.com