Seven ideas for effective partner reviews

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Managing Partner Performance is a new book from Globe Law and Business that covers a range of issues relating to partner performance and underperformance.

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Contributing editors Nick Jarrett-Kerr and Jonathan Middleburgh asked me to contribute two chapters: one on designing and implementing effective performance reviews for partners, and one on the use of technology in partner performance management.

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In this article, I provide seven key takeaways from my chapter: effective performance reviews.

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1.    Importance of performance reviews.

Performance reviews are crucial for assessing partner contributions and setting expectations for future performance. Whether firms operate with merit-based or lockstep models, reviews are essential in aligning partner goals with the firm's strategy, providing transparent assessments and ensuring a sense of fairness and partnership cohesion about relative contribution.

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2.    Hybrid feedback model.

While some have argued for eliminating formal performance reviews, we advocate a hybrid approach combining formal reviews with regular informal check-ins. Formal reviews offer structure and fairness, particularly for compensation decisions, while informal check-ins promote continuous development, adaptability and a future focus.

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3.    Comprehensive and balanced evaluation.

‍Effective performance reviews incorporate both qualitative and quantitative inputs. Quantitative inputs such as financial metrics, and client and staff measures are important. So too are qualitative inputs which provide context and meaning. Leaders, reviewers and Remuneration Committees need to embrace for this subjectivity and train for it to ensure decision making is fair and unbiased.

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4.    Efficiency and effectiveness.

While it is critical for review processes to be thorough, efficiency should not be overlooked. Complex and burdensome review processes can lead to disengagement and decision fatigue, which in turn affects the quality of outcomes. Firms should aim for streamlined and focused review designs to balance depth with practicality. While this is a critical process, partners are time poor. Balancing efficiency and effectiveness should be a major decision consideration.

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5.    Recognition and feedback.

Regular recognition of partners is essential for positive engagement and wellbeing. Performance reviews offer a structured opportunity to recognise achievements, to the individual partner and the broader partnership. A lack of regular feedback can leave high-achieving individuals feeling undervalued, yet too many firms use financial reward to offset a poor recognition culture.

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6.    Managing difficult conversations.

‍Effective performance management requires leaders to handle difficult conversations effectively. This is especially challenging for partners engaging with peers. It’s even more difficult for relatively junior partners challenging senior colleagues. The chapter suggests that being open and direct with feedback is the best option, complemented by empathy and support.

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7.    Ongoing accountability.

Beyond annual reviews, regular check-ins foster continuous performance management and ensure accountability. These informal conversations help prevent surprises in formal reviews, and offer ongoing opportunities for feedback, development, and a future focus on goals.

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Managing Partner Performance contains a range of great contributions from experts in the field, including our friends and collaborators: Michael Roch, Dr Heidi Gardner, Ivan Matviak, Joel Barolsky and others. It’s available for purchase from Globe Law and Business here.