Creating and Effective Associate Development Program for Tomorrow's Leaders.
This presentation reviews the essential components of an effective program including:
- evaluation and feedback
- practice planning
- compensation
- advanced criteria
2. ATTORNEY DEVELOPMENT PLAN
ATTORNEY DEVELOPMENT PLAN
WHAT IS THIS ALL ABOUT?
✓ Developing talented and motivated lawyers
✓ Ensure the best attorneys stay with the firm
✓ Building a high performance culture
3. ATTORNEY DEVELOPMENT PLAN
ATTORNEY DEVELOPMENT PLAN
WHAT DOES IT TAKE?
✓ Equity member commitment
✓ Associates and Income Members have to perform
✓ Honestly evaluate performance
4. ATTORNEY DEVELOPMENT PLAN
ATTORNEY DEVELOPMENT PLAN
HOW IS IT ACCOMPLISHED?
✓ The right recruiting strategy
✓ The right evaluation and feedback systems
✓ Priority training and development (the best and the rest)
5. ATTORNEY DEVELOPMENT PLAN
ATTORNEY DEVELOPMENT PLAN
HOW IS IT ACCOMPLISHED?
✓ Short and long term incentives
✓ Placing the right people in the right roles
✓ Advancement criteria
7. ATTORNEY DEVELOPMENT PLAN
EVALUATION AND FEEDBACK
SUBJECTIVE CRITERIA
Quality of professional work
Client relations and service
Personal development
Business development efforts
Profile building
Administrative compliance
Training and teaching
Firm values
8. ATTORNEY DEVELOPMENT PLAN
EVALUATION AND FEEDBACK
OBJECTIVE CRITERIA
Billable hours
Timekeeper profitability
Business credit
Managing/billing profitability
Originating profitability
9. ATTORNEY DEVELOPMENT PLAN
EVALUATION AND FEEDBACK
REWARDS
SUBJECTIVE OBJECTIVE
More salary emphasis Less salary emphasis
Less bonus recognition More bonus recognition
Equal Advancement weight Equal Advancement weight
BUILDING LONG TERM VALUE PROFIT CONTRIBUTIONS
10. ATTORNEY DEVELOPMENT PLAN
EVALUATION AND FEEDBACK
DATA COLLECTION AND ANALYSIS
Online Form - demonstration
Grading Scale
Practice Level
Performance Measures
14. ATTORNEY DEVELOPMENT PLAN
PRACTICE PLANNING PROCESS
WHAT IS A PRACTICE PLAN?
Non billable time investments
General investments
Firm specific investments
15. ATTORNEY DEVELOPMENT PLAN
PLAN DEVELOPMENT CONTEXT
Years 1 – 5 heavily influenced by the members
After year 5
Attorney choices aligned with the firm’s opportunities
Personal choices balanced with the firm’s needs
As a lawyer matures, more latitude is afforded
PRACTICE PLANNING PROCESS
16. ATTORNEY DEVELOPMENT PLAN
PLAN DEVELOPMENT CONCEPTS
Shared vision of success
Train associates to view career strategically
Focus efforts according to potential
PRACTICE PLANNING PROCESS
17. ATTORNEY DEVELOPMENT PLAN
SAMPLE PLAN REVIEW
Economic summary – sample plan
Plan detail
Frequency
PRACTICE PLANNING PROCESS
18. ATTORNEY DEVELOPMENT PLAN
PRACTICE PLANNING PROCESS
FREQUENTLY ASKED QUESTIONS
Do people really do this?
Are there any compensation guarantees?
Is compensation based on these plans?
What if I do not participate?
25. ATTORNEY DEVELOPMENT PLAN
PROMOTION TO INCOME PARTNER
COMMON CRITERIA
Minimum of 5 years with the firm
Ability to grow existing firm business
Bar or civic association leadership
Speaking and publishing success
26. ATTORNEY DEVELOPMENT PLAN
PROMOTION TO INCOME PARTNER
COMMON CRITERIA
Recruiting support
Composite score of 4.0 on a 5.0 scale
Ability to leverage other lawyers and paralegals
Economically viable
27. ATTORNEY DEVELOPMENT PLAN
INCOME PARTNER TO EQUITY PARTNER
COMMON CRITERIA
Continued satisfaction of income member requirements
Annual originations of $350,000
Newly originated recurring billings of at least $75,000
29. ATTORNEY DEVELOPMENT PLAN
ORIGINATION FUNDAMENTALS
BOOK OF BUSINESS DEFINED
Business originated and controlled
Inherited business trough a succession or strategic plan
Certain client sharing credits
30. ATTORNEY DEVELOPMENT PLAN
BOOK OF BUSINESS DOES NOT INCLUDE
Business without opportunity cost
ORIGINATION FUNDAMENTALS
31. ATTORNEY DEVELOPMENT PLAN
COMPONENTS OF A SAMPLE BOOK
Business that you originate should be at least 50%
Business that you inherit or share in 45%
Nominal client credits from other partners 5%
ORIGINATION FUNDAMENTALS
32. b r i a n @ p e f o r m l a w . c o m
PerformLaw.com
Notas do Editor
What do we have to do together?
The members of the firm are committed to providing each attorney with the training, feedback, mentoring and incentives to perform at a very high level
The associates in turn will be expected to perform at very high levels and to prepare themselves for increased responsibility
The evaluation and feedback system
Please review the evaluation form being passed out
Grading scale
Excellent
Exceeds expectations
Meeting expectations
Below expectations
Unacceptable
Overall practice level
Overall practice level
Novice
Intermediate
Advanced
Expert
Specific performance measures – all
Quality of professional work
Client relations and service
Personal development
Business development efforts
Profile building
Training and teaching
Administrative compliance
Firm Values
The evaluation and feedback system
Each attorney will have be given a summary of their evaluation scores in each area
Each attorney will be given the opportunity to review the actual evaluation forms complete with written comments
Each attorney will participate in at least an annual detailed evaluation meeting with one or more of the equity members
These evaluation meetings will provide an opportunity for structured feedback
The evaluation and feedback system
Important points
Scores lower than a 3 are an issue
As you will see later, to progress to Junior Membership, you must have a composite score of 4.0 of a 5.0 scale, with no grades lower than 3.0
As you become more experienced, the tougher and more comprehensive the evaluation scope
For example, in the beginning years of your practice several areas will be graded as NA, which has no effect on the evaluation
What is a practice plan?
A plan to focus investments of non billable time on those activities that will create the most value for the associate
General investments
Time investments that are good for all lawyers
Firm specific investments
Time investments of particular value to the firm
How is a practice plan prepared?
In the early years of an attorney’s ATTORNEY, the plan is guided mostly by the members of the firm
As an associate becomes more experienced, the substance of the plan is more heavily influenced by the associate
ATTORNEY choices based on the firm’s opportunities
Personal choices balanced with the firm’s needs
How is a practice plan prepared?
In the early years of an attorney’s ATTORNEY, the plan is guided mostly by the members of the firm
As an associate becomes more experienced, the substance of the plan is more heavily influenced by the associate
ATTORNEY choices based on the firm’s opportunities
Personal choices balanced with the firm’s needs
What is the practice planning process?
Review sample practice plan
Economic summary
Planned billable expectations
Hours
Billings and realization
Collections
Other firm specific economic measures
Review sample practice plan
Review at meeting
General notes
Not all of the activities will be priorities at all times in your ATTORNEY and may vary among associates depending upon individual talents and firm needs
Generally, as you become more experienced, you plan contains more priorities
Frequently asked questions
Do people really do this?
Are there any guarantees?
Do I do this even after I have my own clients and become a member?
What if I do not participate?
Bonus
A minimum of X years with the firm
An ability to grow existing firm business
Leadership in bar or civic associations, for example:
Attorney will have been published in an accredited bar journal or other publication at least once during the 5 year evaluation period
Active member of at least 1 professional organization
Conducted professional speaking engagements
Support the firm’s recruiting efforts, as appropriate
Have a composite score of 4.0 on a 5.0 scale on the previous two attorney evaluations
No grade lower than a 3 in any one area.
Managing enough business to demonstrate an ability to leverage other lawyers and paralegals
Annual billings of at least $25,000 as a billing timekeeper
Continued satisfaction of requirements of junior membership
Attainment of $350,000 in annual billings credit as originator, billing timekeeper, or as a part of client credit sharing agreement with another member, for the two years preceding advancement.
Newly originated or developed business of $75,000 (counts toward the $350,000 requirement), such new business must be recurring in nature and been attained in each of the immediate 2 years preceding advancement
Achieve consistent (2 years or more) leveraged billings of at least $100,000
Receive the affirmative vote of the Equity Members holding at least 70% of firm membership interests
What is a book of business and why is it important?
Your book includes:
Business that you originate and control
Business that you have inherited and control through a succession or strategic plan- or by accident
Business that you receive credit for within the firm’s client credit sharing system
Your book does not include:
Business that you operationally help manage for another partner who is significantly involved in the client relationship and/or cases
You may receive nominal client credit for this service
What is a book of business and why is it important?
Your book includes:
Business that you originate and control
Business that you have inherited and control through a succession or strategic plan- or by accident
Business that you receive credit for within the firm’s client credit sharing system
Your book does not include:
Business that you operationally help manage for another partner who is significantly involved in the client relationship and/or cases
You may receive nominal client credit for this service
How much business should come from each component of a book?
Difficult to answer but let’s try this:
Business that you originate should be at least 50%
Business that you receive trough a client sharing program in which another partner is active and controls the relationship should not exceed 5% of your total book (good citizen credits)
Business that you inherit or are given strategically (client or case significance) would make up the difference 45%