TinkerX

1. I am a strong believer in the complete inclusion of all personnel in the release of data about the place where they spend their working lives. I find it to be not only insulting but counter-productive, when organizations do not share financial and other important information with their entire workforce. On this count, I am heartily in favor of sharing the information. I would also expect, in the case of a firm that broadcast ongoing results, that a well-understood plan is in place to reward everyone based on firm compensation policies.

If firm management has shared, throughout the financial year, various information regarding
goals and progress, then it would be criminal to not share data about the end state. It would be like skipping the punch line.

But…

2. I am a strong believer in reason, goal-setting and plans. In many firms, there is often no ongoing communication of financial goals, progress, benchmarks, programs, processes, improvements or strategy. My guess is that, if you probed, it would come clear that the financial success (or failure) of any year is, essentially, a mystery both to the partners in general, and to management in particular. They may have an understanding of which big clients or matters led to such good results, or which fees got paid unexpectedly, but that’s the same as being able to identify the type of bird that fell down your chimney into the cook pot. It’s not a knowledge of how to hunt.

Positive results of a mysteriously occurring nature should only be officially shared if accompanied by an equally mysterious, positive reward. Otherwise, in the eyes of staff and non-partners, what difference does it make? What’s the definition of "a really good year" from a non-partner standpoint? Nobody got laid-off? If that’s the true sentiment of management — that staff should be pleased that they weren’t fired — then that’s what should be communicated.

Am I being overly harsh? No. I’ve heard, time and time again, of firms where partners gloat (somtimes subtly, sometimes openly) about how a particular year was "really good," only to turn around and award crummy salary increases to staff. That’s a major downer.

In short, you should have a well thought out strategic plan that allows for regular communication with all attorneys and staff about your firm’s progress. If you don’t, get one. Don’t waste time sharing "snapshots" that don’t provide any insight or incentive.