Everything you need to know to manage partner reward in your firm
A comprehensive handbook covering reward structures and governance, and how firms manage, measure and assess partner contribution.
About the book
A firm’s profit sharing model is central to its partnership ethos and culture.
While one adage says that “there are as many profit-sharing systems as there are partnerships”, there has recently been the emergence of a global practice about what “merit” means and how risk and reward are shared among partners in professional service firms.
In The Partner Remuneration Handbook, Michael Roch and Ray D’Cruz provide guidance on designing effective profit-sharing systems, reaching fair reward decisions efficiently and implementing motivating contribution management processes.
Filled with practical insights, this book draws on principles of partnership, motivation and incentives in human capital management, and executive compensation in closely held businesses.
- Trends shaping partner reward
- The three partner remuneration elements in context
- The seven primary partner reward systems
- Formula systems: cost sharing, ‘eat what you kill’ and fixed allocation
- Merit systems: financially driven versus holistic meritocracies
- Lockstep systems and their variations
- A partner’s profit-sharing waterfall: drawings, bonuses and distributions
- Corporations operating as partnerships, internal markets and talent ecosystems
- The future of partner contribution management
- Motivating achievement-orientated partners
- Using partner contribution frameworks to align partner contribution with firm strategy
- Aligning personal objectives with partner contribution expectations
- Using measures, metrics and KPIs
- Partner accountability through ongoing conversations and informal check-ins
- Self-assessments, ratings and other design considerations for formal partner reviews
- Conducting effective partner review conversations
- Addressing underperformance
- Using technology for better partner contribution management
- Analytics: using quantitative and qualitative data for evidence-based decisions
- The role of HR and business services in partner contribution management
- Key elements of effective reward governance
- Remuneration committee basics: when to have one, its remit and its members
- Managing to an annual calendar
- Reward round preparation, heuristics and decision aids
- Reaching reward conclusions while avoiding biases
- Transparency in reward communications: nuances of open and closed compensation system
- Appeals: benefits, drawbacks and process considerations
- Collaboration among partners
- Rewarding partners in management roles
- Diversity, equity and inclusion
- Partner reward in international partnerships
- Engaging partners in remuneration policy changes
- Well-being and mental health
- Ten principles for partner remuneration systems in ambitious professional services firms
Michael Roch
Michael Roch is a global expert in partnerships, alliances and ecosystems. He is the Managing Director of MHPR Advisors.
Michael helps cultivate cohesive partnerships in pursuit of a winning strategy. Beyond taking clients by the hand, he has been in the “hot seat” as Managing Partner of an internationally operating consulting firm and as Europe Co-CEO for a global platform-based talent ecosystem.
Michael’s partnership expertise gained throughout his career forms the basis of this comprehensive guide to partner remuneration in professional service firms.
Ray D’Cruz
Ray D’Cruz is CEO of Performance Leader, a consulting and software business that helps professional services firms harness the creativity and intelligence of their partners and employees.
Ray helps organizations solve complex problems in areas such performance, collaboration and feedback through a flexible approach and deep sector knowledge.
Working in leading professional services firms as both a lawyer and HR leader means Ray understands the nuances of professional services and partnership structures. He has used this expert knowledge to co-create this comprehensive guide to partner remuneration in professional service firms.
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