grissom and aquila on partner performance evaluations

woman conducting evaluationbusiness development is everyone’s job.

by august aquila and angie grissom
the august aquila leadership collection

he said: when conducting the partner performance evaluation, partners should not be surprised by the feedback. i often suggest that firms follow the following guidelines when it comes to delivering the annual (or semiannual) evaluation:

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agree together at the beginning of the evaluation period those competencies the partner should improve upon throughout the year. you may even wish to create an individual development plan that specifies those competencies and the activities in which the partner will engage to develop them.

approximately two weeks prior to the evaluation session, provide the evaluation form to the partner, and ask the partner to complete it based on his or her paradigms about his or her level of competency or performance.

identify a time and place that will be private and conducive to no interruptions.

engage in two-way conversation using empathic listening skills.

agree upon needed actions for improvement, and document them in writing with a deadline for completion.

she said: when evaluating current partners and potential partners, i like to recommend the following criteria, which are generally more stringent than criteria of past years:

grissom
grissom

can the firm support all the current partners or another partner?

if the answer is “no,” then you must explore the reasons. is it because you currently have underperforming partners (that is, partners who are unable to pay their own way and help the firm grow)?

what are your measures for admission to partnership and remaining a partner?

if you require certain performance levels for new partners, shouldn’t that criteria apply to existing partners as well?

do the potential partner and existing partner have adequate business development skills?

the lifeblood of an organization includes acquiring profitable clients and expanding the scale and scope of its work with existing clients. all partners will not have the same talents in this area, but it is necessary for all partners to have core business development skills and talents.

what will be the potential partner’s and existing partners’ economic contribution?

all partners (with the exception of the managing partner, in large firms) need to focus more time on bringing in dollars to the firm today. without cash flow, there may be no tomorrow. the metrics of cash collected, client profitability and origination are more telling than the standard metrics of hours worked, billable hours or charged hours. writedowns and writeoffs should be closely monitored.

he said: that is a great list. i really like it. there are a few more items i would add.

what accounts for the potential partner’s and existing partners’ non-billable time?

partner non-billable time can tell you a lot about the partner’s interest in the success of the firm. some partners may, in fact, need a wakeup call. as partners of the business, each must regularly perform activities (for example, marketing, networking or doing pro bono work in the community) that enhance the future value of the practice. golf or lunch with partners and each other, without a clear client-related or performance objective, is not normally a valuable, non-billable time activity.

what are the potential partner’s and the existing partners’ intangible contributions?

partners who have developed a valuable “brand” within or outside the firm can bring benefit(s) to the firm. these partners may attract business to the firm because of their professional reputation in the community or because of their leadership roles in civic, charitable or religious organizations

does the partner practice good firm citizenship?

partners need to be team players. if not, consider the effect on the firm. no matter how capable or financially productive a partner has been in the past or present, you must face the reality and consider data that suggest they are negatively affecting retention, partner development, fairness and so on.

they say: regular communication on expectations and performance will make all of the difference. discussions on performance should not only occur on a quarterly or semi-annual basis. this should be an ongoing discussion. we recommend partners ascertain satisfaction with one another, team members and clients on a regular basis by asking two questions:

  1. what is working?
  2. what can i do to improve?

sometimes situations occur when partners retire in place or just simply can no longer cut it in an organization. this happens because of complacency, entitlement and sometimes lack of effort. partners who cannot achieve minimum performance standards over a two-year period should be given two choices:

  1. move from equity to a non-equity status and no longer share in the profitability of the practice.
  2. leave the firm.

if a firm finds itself in the position of asking a partner to leave, remaining partners should consider helping the partner find a place more suitable for his or her talents or allow the partner to purchase a portion of his or her client base. this decision to ask someone to leave is not about punishing the individual partner. it is about ensuring the future of the enterprise. if the firm has a culture dedicated to excellence and high-performing partners, everyone wins.

angie grissom serves as president of the rainmaker companies. she advanced from her previous position as director of consulting, which she held for over ten years. her role in the firm involves high-level strategy, thought leadership, consulting, and program and curriculum development. she transforms the lives of clients through innovation, goal setting, coaching, training, and accountability development.

angie is consistently recognized as one of the most influential people in the accounting industry. she is a frequent presenter at national and international conferences and a regular contributor to publications. she was published in a national “ask angie” column for several years and is the “she” in accounting today’s column known as “he said, she said.” this column debates issues in the accounting industry ranging from leadership to generational differences. her reputation and passion are renowned and she brings all this to her role at the rainmaker companies.

prior to joining rainmaker, angie worked in organizational management, sales, and human resources. she earned her bs in business administration with an emphasis in marketing and pre-law at middle tennessee state university and has completed master’s-level work with an mba emphasis. she is married with two sons.