Does Making Partner Mean Much Today?

Published November 1, 2005

Two recent events got me thinking about the state of the “partnership” in today’s law firms:

  • A survey by marketing guru Larry Bodine reported that most law firms require their associates to have business development skills and to bring in new business, yet 57% of those firms fail to provide any training to generate new business.
  • A roundtable of large law firm managing partners that I chaired reported that, in the big New York firms, only 1% of the lawyers make equity partner. The limited number of partners creates no incentive to stay at these firms, a situation worsened by the significant income disparity between partners and associates, and between junior and senior partners.

Today, ascension to partnership is still an event, but partnership itself may be less of an achievement. Despite being called partnerships (or LLPs or PCs), the governance of large law firms has fallen to a very few in the organization (“the management committee”). The remaining “partners” have begun to look, act and think like employees, not owners.

When I was practicing as an associate, I had a conversation with the managing partner. I showed him what percentage my billings were of the firm and what my expense and profit to the firm were. After getting over the shock that I would attempt to create this “P & L” for my own work in the firm, he asked me why I did this. I said I enjoyed my job, wanted to keep it and knew that the firm could/would not keep me if I were not profitable for them, for the year if not for every month. Shortly after that discussion I was invited to become a partner.

Associates who don’t know how to develop books of business, or who face second class partnership status at best, will neither know nor care about the financial workings of their firm. No such firm can expect to stay financially strong.

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Audience type: Associates