Managing Partner Evaluation Process: Maximizing Impact

1. HOW AM I DOING? EVALUATING YOUR IMPACT AS MANAGING PARTNER PRESENTED BY SAM M. ALLRED, FOUNDER & DIRECTOR OF UPSTREAM ACADEMY

2. On December 2 and 17, 2009, I presented a Management Presentation entitled Partner Evaluations: If Nothing Ever Changes, Why Bother? This presentation has been a catalyst for many firms within our profession. 2

3. We have received very positive feedback from firms that have adopted the recommended partner evaluation process. The managing partner evaluation process we will discuss today follows many of the same principles and steps recommended in December. 3

4. Observations regarding the managing partner’s roles and responsibilities Key principles for effective evaluations Recommended managing partner evaluation process Questions and answers Email questions tosallred@azworld.com PRESENTATION ROADMAP

5.  OBSERVATIONS REGARDING THE MANAGING PARTNER’S ROLES AND RESPONSIBILITIES

6. Many managing partners feel their partners do not fully understand nor do they appreciate the challenging roles and responsibilities that come with being the managing partner. OBSERVATION #1 6

7. The size of the firm and system of firm governance often determine the roles, responsibilities, and authority of the managing partner. In our profession, these three things can vary widely even between similar sized firms. OBSERVATION #2 7

8. The managing partner’s responsibilities can easily become the firm landfill, where everything that is frustrating, being done poorly, or being neglected is identified as fitting within the managing partner’s job description. OBSERVATION #3 8

9. The role of a managing partner is so different from the role of a line partner that using the same evaluation form and process is both ineffective and frustrating to all concerned. OBSERVATION #4 9

10. While many managing partner roles are outlined at least briefly in the partnership agreement, most firms fail to develop a formal evaluation process for their managing partner. Instead, they adopt a reactionary process that says in effect, “We’ll let you know how you’re doing somewhere along the way.” OBSERVATION #5 10

11. With the retirement of the baby boomers, we will experience more changes in the managing partner’s seat during the next decade than we have in the past three decades combined. OBSERVATION #6 11

12. Many newly-appointed managing partners are struggling in the current recession because the previous 18 years of strong economic growth allowed weaknesses to develop in their firms. Those soft spots are now being exposed by the recession. OBSERVATION #7 12

13. While many important responsibilities fall upon a managing partner’s shoulders, two stand out as most important: Developing, communicating, and implementing the firm’s vision Getting the maximum horsepower from the partner group OBSERVATION #8 13

14.  KEY PRINCIPLES FOREFFECTIVE EVALUATIONS

15. Reality is always our friend; it is never our enemy. One of the top priorities of all managing partners should be to seek a healthy dose of reality. We should earnestly desire to know our true Point A. KEY PRINCIPLES 15

16. While surveys and evaluations can be wonderful tools to illuminate reality, the key is in the design of the questions and in the process that is followed to get open and honest feedback. If a survey or evaluation doesn’t produce open and honest feedback, it is of little worth. KEY PRINCIPLES 16

17. The evaluation process needs to be a catalyst for positive change. The primary purpose of the evaluation process is to help the managing partner perform at his/her highest level. KEY PRINCIPLES 17

18. The process should provide honest feedback regarding needed improvement. Evaluators need to openly interact with each other rather than being allowed to complete the evaluation process while sitting at their desks. KEY PRINCIPLES 18

19. There should be a group discussion about strengths and areas for improvement. The managing partner evaluation should cover the same six areas as the partner evaluation but the criteria must be modified to fit the managing partner’s role in the firm. KEY PRINCIPLES 19

20.  RECOMMENDED MANAGING PARTNER EVALUATION PROCESS

21. KEY PERFORMANCE AREAS 21

22. RATING SCALE 22

23. MANAGING PARTNER EVALUATION 23

24. MANAGING PARTNER EVALUATION 24

25. MANAGING PARTNER EVALUATION 25

26. MANAGING PARTNER EVALUATION 26

27. MANAGING PARTNER EVALUATION 27

28. MANAGING PARTNER EVALUATION 28

29. MANAGINGPARTNEREVALUATIONFORM 29

30. EVALUATION PROCESS • The evaluation team should consist of the board of directors or the executive committee or management team. • If the firm’s governance doesn’t provide for a governing body, then the evaluation team should consist of the partner group. • Ideally, the evaluation team should consist of 3 – 5 members.

31. EVALUATION PROCESS • An evaluation meeting should be scheduled for all members of the evaluation team. The meeting should take 60 – 90 minutes. • Prior to the meeting, each member of the evaluation team should independently assign a numerical score to each of the six performance categories.

32. EVALUATION PROCESS • One of the evaluation team members should be assigned to enter the data from the evaluation into the Excel spreadsheet.

33. EVALUATION PROCESS • After the numerical score has been assigned, the evaluation team will brainstorm the managing partner’s strengths first, then areas for improvement, for each performance category. The comments will then be summarized and documented on the scorecard.

34. EVALUATION PROCESS • After the brainstorming session, each evaluation team member may reconsider his or her numerical rating for any of the six categories. • Talk through differences of scores that are more than one point apart and reach a consensus if possible.

35. EVALUATION PROCESS • At the conclusion of the evaluation meeting, the individual who has entered the data and comments into the Excel spreadsheet should complete and review the evaluation comments and email the spreadsheet to each of the evaluation team members for their review.

36. EVALUATION PROCESS • The evaluation should be presented to the managing partner by the evaluation team.

37. FOR MANAGING PARTNERS • Many of you may not have distinguishing strengths in every performance category. • Manage around your weaknesses. Work to get a little better every day, design and utilize a support system, use your strength(s) to overwhelm your weaknesses.

38. FOR MANAGING PARTNERS • Identify those traits where you excel and build them into distinguishing strengths. Reinforce with practice and learning. • We have identified six performance categories that every managing partner should build strengths in to excel. Continual improvement isn’t just a good thing, it’s an obligation to partners and to the firm.

39.  QUESTIONS AND ANSWERSEmail questions tosallred@azworld.com

40. UPCOMING EVENTS MANAGEMENT PRESENTATION Making Your Firm Governance Model Work for You, Not Against You August 10 & 13, 2010 BESTPRACTICES CONFERENCE October 28-29, 2010 San Antonio, Texas

41. Thank You! sallred@azworld.com