In this article, Nick suggests ten typical reasons for partner underperformance and ways of dealing with them. The article is extracted from a much longer chapter in “Tackling Partner Underperformance in Law Firms” (Ark 2011).

Partner performance management systems attain their sharpest focus in how they cope with the issues of non-performance and under-performance. Nick suggests three essential infrastructure elements which will help firms address this difficult problem area.

The issues of partner performance and rewards are rising on law firm agendas, especially with the impact of new age discrimination legislation. Law firm leaders talk a good game about how the firm ‘rewards what it values, and values what it rewards’ but in reality many firms give scant regard to anything except seniority and billing. Nick suggests ways in which law firms can get the best out of partners across all areas of the firm by setting the right targets and sharing profits based on the achievement of those targets.

For many firms, partner compensation has long been managed in isolation from the firm’s overall business strategy, which is primarily focused on external factors, such as markets and clients. But, by aligning compensation models with strategic objectives, firms will be far better equipped to achieve their goals. Nick suggests four main ways in which a Compensation and Rewards System can support the firm’s strategic direction and goals.