Is your firm’s compensation plan adequate to support your business growth goals?
As president of Juris Midwest, I had the opportunity to evaluate law firm compensation models. In over 10 years of doing so, I rarely found a firm’s compensation model aligned with its business growth strategy.
Granted, laws firms are not known for their strategic planning. In fact, a 3-5 year business plan with goals and metrics to gauge progress is seldom seen. Planning means change. It means doing something different today to move towards a future vision.
Most firm compensation models are placed in service and remain static for years. The firm’s business goals change but the compensation plan doesn’t.
Compensation is the reward system for the behavior a firm is trying to encourage. Firms realize what they reward. Compensation models should be dynamic and match changing firm goals.
Ask yourself, “Is your reward system aligned to support your business growth plans?”