Business Challenge - The European Partnership of this Global Law Firm suffered from significantly lowered Profit per Equity Partner (PPEP), and suspected that a proportion of its Partners and their teams weren’t adequately contributing to profits or were only just covering their costs.
- Our Role in the Solution - Our consultant was invited to undertake a strategic review of the Partnership, the nature of its income and costs, and the distribution of profits amongst the varying degrees of seniority of its partnership.
- The Outcome - The review identified where teams and individuals performed well, but also those that were a drain on the organisation. Our consultant worked with the General Council, the Senior Partner, the Managing Partner and HR on a course of action to exit underperforming partners, and to keep but censure average performers. In parallel, a 20% trim of non-fee earning support services was also implemented.
- Achievements - The restructure was meticulously planned, in strict secrecy and then executed swiftly. There was a comprehensive charm operation to explain the rationale and outcome to clients and to the remaining partners and staff.
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