Underperforming Partners

Some firms choose to ignore the signs and hope those partners leave on their own accord. And although it may seem like a good idea at the time, disengaging from an underperforming partner can be a gut-wrenching experience and one that only gets worse the longer it is delayed. It is important for managing partners to take stock now and be prepared to offer resources for reversing the trend of underperformance. It will save you time and money in the long run.

In The American Lawyer's 10th annual Law Firm Leaders survey, 113 Am Law 200 managing partners and chairs were surveyed on U.S. and world economies, lateral activity, projected hiring by practice area and office, projected billing rates and profitability levels. www.americanlawyer.com/PubArticleTAL.jcp?id=12. The general consensus among firm managing partners is that with the uncertainty of the current U.S. economy, along with financial instability in Europe and China's economic slowdown, many firms must find the proper staffing mix in order to maximize profitability. Many of the firms surveyed stated they will ask underperforming partners to leave in 2013, making way for new attorneys in greater revenue-generating market niches. For example, 55% of managing partners surveyed said they intend to ask between one and five partners to leave in 2013, and 5% said they intend to ask between 11 and 20 partners to leave.