1. Partner Equity – Performance or Parity
Presentation for FICPI Australia on Freehills Partner Appraisal System
by Brett Connor
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2. Freehills Management Structure
Board – 8 directors; 2 external and 6 internal
Executive – CEO; CFO; 4 Practice Group Heads (PGH)
Partners – 200 plus
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3. Review Process Annual Unit Review
submission of unit review document directed to 6 criteria
interview with PGH and CEO – April - May
CEO makes recommendation to the board – June
Board approves unit allocation for the next year
partners advised end of June/ 1 July
14 day appeal period
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4. Objectives of the Appraisal System
team focussed behaviour
coaching and development of people
advancement of the firms strategic client initiative
investment in the future of the firm
sustained performance over a longer term
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5. Assessment criteria
contribution to the success of other Partners and staff and the Firm as a whole
client service/satisfaction
staff development/satisfaction
contribution to business development
personal professional development
profitability (including efficiency, financial hygiene and practice management).
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6. Contribution to the success of others
Building Capacity - eg assisting partners to develop their practice
Building Collaboration – eg sharing contacts and facilitating introductions
Building credibility – actively taking steps to build market profile/reputation of other partners
Building confidence – supporting, coaching recognising other partners
points system where partners award points to other partners who help them
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7. Client service/satisfaction
who are your main clients
what have you done to improve your relationship with the client
any evidence of feedback
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8. Staff development/satisfaction
which staff report directly to you
how have you helped each to improve
what have you done to build engagement with the team
have you had any departures and why
results of upward appraisal process
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9. Contribution to business development
what new client or new work have you originated
do you have a role in any of the firms client and growth strategies
profiling activities
client surveys
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10. Personal professional development
Activities to improve your capabilities and how will that impact your practice, eg
stress management
benefits of coaching
leadership or management
team building/performance
communication skill improvement
work/life balance
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11. Profitability financial hygiene ie WIP days and debtor days
utilisation of staff who report to you
contribution margin ie managed fees less expenses and drawings
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12. Policy issues attached to Unit allocation
longer term contribution considered – 3 year view on all criteria
scoring of non financial criteria
need to balance number of units in each practice area against revenue
unit inflation needs to be controlled
loyalty to older partners who have contributed over a long period of time
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13. Pros Pros partners are remunerated for their contribution to the firm
results based remuneration
rewards results of effort over a period of time
if weighting is not dominated by financials then it encourages teamwork
allows older partners to wind down
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14. Cons Cons can lead to competition between partners wrt unit levels
large management burden each year
need transparent systems for non financial metrics
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15.
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