A new managing partner poses a challenging question to his leadership team – What needs to change?
This large independent firm had experienced more than 5 years of nearly no fee or profit growth. The new managing partner brought a keen desire to grow the firm – he wanted a new way of working, a new era of growth.
Overview statistics
5 years
of no growth
58% growth
in 4 years
Less stress
for the team
How do you make your mark as a new Managing Partner?
Changing any business that’s set in its ways, with north of 250 team members, is a large and difficult task.
Before starting, we challenged the managing partner on his attitude and ambition and commitment to change. And, in his quiet but determined way, he was clearly committed to making things happen – to not simply talk about change, but to take action.
Then, in late 2019, having agreed to work on building strategic health into the firm, Covid struck.
The leadership team then showed their true colours of commitment and (on MSTeams and live meetings when allowed) they worked together to build a vivid and ambitious vision to which they could all commit.
Key Challenges
Key moments make all the difference...
an ambitious Challenge
Their initial and somewhat modest growth goals looked achievable compared with the lack of previous growth. But 'realistic' goals would not change their thinking or behaviour.
All credit to the leadership team, as they were open to being challenged and, after much discussion, wrangling, and constructive debate, set a 65% fee growth goal over 5 years.
WHAT DOES SUCCESS LOOK LIKE AT YOUR FIRM?
Having now answered this vivid vision question, the leadership team then set about answering the other 7 questions relating to strategic health.
This helped them create a coherent plan to direct efforts across their 250+ team.
purpose-led pays off...
Working on the clarity of, and building commitment to, a core purpose with real meaning for everyone in the firm was critical.
Building this core purpose into a set of values and behavioural standards with teeth was also key. This work established a crystal-clear vision, purpose and values for the firm and removed any doubt that they were building real commitment to Team First.
Solve the underlying problems...
The firm had been job-obsessed. In many ways, the firm’s leadership were doing the right things to complete jobs to serve their clients, but this was done without sufficient focus on their people.
As a result, team churn was reasonably high; client care was not really where they wanted it to be; succession looked to be a challenge; and the firm’s fees per full time equivalent employee (FTEE) were understandably lower than was needed. They were at £81,000 per FTEE and their 5-year vision was to achieve £140,000 per FTEE.
A KEY CHALLENGE...
They still had to grow the firm!
Knowing the big-picture goals provided the headline numbers for the whole firm.
The big-picture numbers then needed to be cascaded to the 4 key departments so that these teams felt connected and able to take ownership for their numbers. And, just as this work started with the lead department head, he resigned to go to a competitor.
Understandably, other team members in this team were also at serious risk. This proved to be the ultimate test of the leadership team’s commitment to their strategic health. Together, sleeves were rolled up to help resolve this key challenge.
CORE PURPOSE LED THE WAY...
With their core purpose as the rallying cry and their values as a cultural reference point, the leadership team made some significant decisions – decisions that made use of their core purpose and values to build stronger connections between team members, stronger connections with the right clients, stronger connections to the numbers that really matter.
Actions speak louder than words...
- They exited a number of high-value clients
- They improved the firm’s pricing processes
- They worked with the team to relieve work pressure through better working practices
...and better results happen
- Work pressure reduced
- The quality of clients improved
- The team stabilised and engagement improved
- The reputation of the firm was more secure
- Better fees with better clients generated the growth they wanted
Results Transformed...
01 65% fee growth achieved in 4 years, not 5
This set the firm up to have another conversation about their next stage of ambitious growth.
02 Fees per full time employee improved
The knock-on improved profits, then helped reward the team fairly for their efforts.
03 Reputation improved
They established an industry-leading reputation in one of their chosen market specialisms.
04 Ready to go again...
The firm has gone again! Another strategic health review has them seeking even more ambitious goals for growth.