Managing The Professional Service Firm

Above all else, they are cheerleaders who suppress their own egos in the name of the institutions they head.

At such firms (in contrast to many competitors), high growth is not a declared goal. Rather, such firms aim for controlled growth. The approach is one of, “We’ll grow as fast as we can train our people.” As Ron Daniel of McKinsey phrases it: “We neither shun growth nor idolize it. We view it as a by-product of achieving our other goals.”

Unlike many of their competitors, all of the one-firm firms tend to “grow their own” professionals, rather than to make significant use of lateral hiring of senior professionals.

one-firm firms tend to be more selective than their competitors in the type of business they pursue.

Without exception, one-firm firms are led (not managed) in a consensus-building style. All have (or have had) strong leaders who engage in extensive consultation before major decisions are taken.

every partner has an opinion on how the firm’s affairs should be conducted and believes that no decision should be made without his or her input.

All professional service firms list in their mission statement what I call the “3 Ss”: the goals of (client) service, (financial) success, and (professional) satisfaction.

All of the firms discussed here have reputations for long hours and hard work, even above the norms for the all-absorbing professions in which they compete.

Goldman Sachs: “You learn from day one around here that we gang-tackle problems. If your ego won’t permit that, you won’t be effective here.”2