are your projections sending your firm backward?
by martin bissett
passport to partnership
how do you react to challenges?
more on the passport to partnership: what does the next generation of practice leaders face? | commitment: a cautionary tale | how to build your pipeline | 6 keys to the perfect proposal | communication can’t be overrated | how to read your firm’s cultural blueprint
ask yourself and answer these questions when considering the current and future “challenges” behaviors that you’ll employ.
- what is my first reaction to being notified of a client complaint?
- how well do i understand the role that everyone else plays in the firm, especially the challenges faced by its leadership
- is my focus on making myself look good or solving issues for the firm and its clients as effectively and efficiently as i know how?
a case study
michael had gotten to the end of a tiring and challenging financial year. he was pleased with the fruits of his labors as he had hit both his billing and profitability targets that had been set for him by his managing partner 12 months earlier.
in preparing for his review of this financial performance with the managing partner, his sense of achievement made the challenges that had come his way over the year – including some internal roadblocks that seemed to be trying to prevent his success – seem worthwhile and it was with an air of quiet satisfaction that he entered the managing partner’s office.
“michael…” began the managing partner, “i and the partners are pleased that you’ve managed to demonstrate that you are equal to the expectations that we’ve had of you in terms of your financial performance.
“however, this year has seen an unprecedented rise in staff salary increases, corporate benefits such as your new car and increased utility, technology and maintenance bills across the entire firm.
“as one of our rainmakers therefore, we have reviewed your forecasts for the next 12-month period and are disappointed to see a budgeted increase of less than the rate of inflation, which if this is all you achieved, would mean the firm taking a backwards step in terms of your contribution to our revenues over the next year.”
“whoa, hang on a minute!” exclaimed michael, practically yelling. “these figures are the best performance any senior manager has ever posted in this firm and i dare to say a lot better than some of the other partners too. we’re at capacity with the work i’ve introduced. i asked you for increased staff provision for this next year six months ago and it was refused, with my instruction being to increase productivity from existing resources. well, we’re at breaking point now and what you’re asking is unworkable.”
“really? at breaking point? explain to me then why there is no one from your department moving any faster than a normal walking pace around this building? why are we allowing extended lunch breaks with no catch up…”
“you won’t authorize overtime!”
“…michael, you’re going to get one warning about raising your voice in front of me, before disciplinary action is brought against you.
“as i was saying, there are numerous extended lunch breaks and your team have got time to chat at the water cooler and i’ve yet to hear a conversation about work topics go on there.
“you need to stop thinking you’ve made it just because you’ve hit your numbers for once. you need to understand that every wage rise, every extended lunch break, every perk that we offer is funded out of profitability.
“my job is to manage the cash flow of this firm among other things and your job is to wake up, stop patting yourself on the back and revise these forecasts in line with our stated objectives for growth next year as can be found in the strategic plan.
“you’ve had a good year michael, and there’s a lot of goodwill for you here, but when it comes to the numbers, you’re only as good as today’s performance. let’s see what you can really do in this firm.”
one response to “why hitting your numbers isn’t enough”
butch
with a managing partner like that it is time to start testing the waters.