Managing the Professional Service Firm

In executing its strategy responsibility, the firm’s management should review policies (“rules of the game”) such as the following: Performance appraisals (For what do we hold people accountable?) Profitability and other measurement systems (How do we keep score?) Systems for salary, bonus, and profit allocations (What incentives drive the behavior

A full program to differentiate the firm through client service requires action on five fronts (in this order): 1. Measurements 2. Management 3. Tips and tools 4. Training 5. Rewards

to place less emphasis on the partners’ personal efforts (i.e., chargeable hours) and to make partners primarily accountable for the net income per partner (or net income per partner hour) of each engagement.

should include, inter alia, methods for making written communications (including reports) more useful to the client, ways to involve the client more in the process, ways to make meetings more valuable to the client, and devices for keeping client informed.