Incomplete View

Because I spend most of my time with managers and partners, my observations and perspectives are particularly attuned to the issues that affect them. One observation about new and aspiring partners is that they have an incomplete view of partnership on two levels.

First, for many, partnership is viewed as another level of promotion. This is not the case. The promotion track ends just prior to firm ownership. Firm ownership isn’t a promotion. It’s a business decision, not a professional career decision. Buying into a business isn’t a promotion. Fortunately, for those who only want the title of partner and not the ownership responsibility, there are structures (non-equity or income partner, principal, etc.) that allow for it.

Second, the entire firm, from admin and throughout, is structured to protect the equity of the firm. This includes policies, processes and practices around satisfying and retaining clients, satisfying and retaining staff and creating efficient operations through technology and procedures. A huge amount of time, energy and resources are dedicated to these endeavors. However, too many professionals are led to believe that doing good work and establishing good client and staff relationships are all that is necessary to be a firm owner. While important, they are not complete. So what is the distinct role of a partner?

Primary Role

The primary responsibility of partnership is to grow the equity of the firm. Because partners own the business, growing the firm’s assets isn’t optional. It’s essential. When partners are primarily invested in maintaining the firm’s equity, they avoid their critical role of business growth.

I’m not at all diminishing the incredible value of satisfying and retaining clients and staff. As I said, the entire firm is (or should be) laser-focused on protecting the firm’s equity assets. However, there is a natural attrition of both over time, for all kinds of reasons. That’s why a continual effort to find, expand and grow the right clients and talent are necessary to overcome the attrition of both.

So, if your aspirations are to be partner, be diligent to learn the skills and practices that not only protect the firm’s equity, but also to grow it. After all, if partners don’t, who will?