Leading stallions: 11 rules of engagement for equity partner meetings

Managing partners are charged with identifying strategic goals for a law firm and driving that strategy forward. A key challenge for any managing partner is leading the partners on that journey.

The equity partnership is a curious model for driving change. The owners of the business and those doing the business are one and the same. Many expect and are entitled to be consulted on key decisions.

A vote on a particular issue can never be guaranteed to turn out how one might expect. A ‘no’ vote to a key strategic move could be seriously detrimental not only to the firm’s direction but also to the managing partner’s tenure. This can mean that, if there is no clarity on strategy, no cohesion at equity level and difficult decisions to make, the partnership is at risk of feeling fragile.

The managing partner has to work hard to keep all partners pointing in the same direction and aiming for the same goals. There must be absolute clarity around the strategic goals of the firm and the types of behaviours that will and will not be tolerated by the partnership. It must also be clear to the partnership which areas the firm has agreed not to pursue – it is easy, when faced with an opportunity, to be distracted.

While some flexibility is necessary, the managing partner must keep the partners on the main path at all times. If there is clarity around goals, decision making should be easier and, while the decision may not be one that partners want to make, if the rationale can be linked back to the firm’s strategy, then there is a much greater chance of the decision finding favour and being accepted and adopted.

Once a business plan is agreed and strategic goals are set, it will be tested constantly. In particular, whenever a difficult decision arises, it will be challenged if there is a path of ?least resistance.

Meetings of equity partners are therefore extremely important as a forum to shape the strategic direction of the firm, to remind partners of the firm’s goals, the reasons for them, and to influence the minds of those making decisions.

If the strategy is clear, the outcome of a decision should usually be pretty obvious. Persuading even those who say they have fully bought into the firm’s strategic direction is not always easy.

A mixed herd

Imagine a pending equity partner meeting. A key decision for the firm needs to be addressed, the papers are circulated and you know that the decision (as is often the case) will have a greater impact on one group of partners than another. A 75 per cent resolution is required.

There are going to be a number of facts about that meeting which are clear in advance.

• Some partners will not have read the paperwork, while others will have been through it with a fine tooth comb. They will be ready ?for the detail, while others won’t even be sure why they are having the meeting.?

• Certain partners in the room ?will be more affected by the decision than others. Some ?may be personally affected in terms of their income or role.?

• Even partners who buy into a strategy and want to drive the long-term direction of the firm have their own personal agendas, which will affect how they vote.

• Some partners will be willing to take a long-term view of issues (generally, the newer equity partners), while those closer to retirement may have a more short-term agenda.?

• Human beings are unpredictable!

With this in mind, is it possible to get the decision you want? Managing partners who work in a culture where ?they simply inform partners what is happening and don’t really expect them to dissent will probably not even be having the meeting.

For those firms, however, where the culture requires a more collegiate approach to decision making and/or the partnership agreement requires majority partner consent to a decision, all of those obstacles need to be overcome in order to keep the strategy moving forward. ?At the same time, a managing partner needs to keep the majority of the ?partners aligned.

The meeting will become a forum for influencing and persuasion. The content of the decision to be made is actually fairly secondary at this stage. As the leader of the firm, the managing partner will have already decided what is required – what is needed from the meeting is a majority ‘yes’ vote and, wherever possible, one that is not given grudgingly.

So how can managing partners successfully persuade equity partners ?to vote in favour of the strategic ?decision identified?

Winning majority support

1. Be clear

State your goal – do not shy away from the decision or apologise for the decision. Your partners will want to be confident that a difficult decision is right for the firm. They will need to see that the management team is confident.

Retain ownership of the decision and ensure your management team collectively share responsibility for the decision.

2. Remind them of firm strategy

Why is the decision necessary and what part of the firm’s strategic plan does it drive forward?

By linking it back to strategy, partners will understand the context in which the decision is made and enable them to communicate it back to their own teams ?as necessary.

3. Listen

The people in the room understand their business; they will have strong views and, in many cases, will be making very valuable points. Quite often, those points will not move the decision forward, nor change ?the decision. Sometimes they will invite further debate.

Just because a point does not ?really change matters does not mean ?that it should not be given air time ?and acknowledged.

4. Control the introduction of ?the decision

Most managing partners will know their audience well. They will know who the likely dissenters are and how they may ?be persuaded.

Use your introduction of the decision to acknowledge the issues you believe partners may have with it. Explain how those concerns can be addressed or, if they can’t be addressed, why not.

5. Watch out for rabble rousers

Allow rabble rousers to speak, but control the meeting. Do not tolerate bad behaviours. Remind those who are letting their personal agendas rule of the importance of the issue for the firm.

6. Identify supporters beforehand

Find out which partners support your decision and ask for their views early on in the meeting. Ask them why they think it is a good idea – this will remind others of the strategy and depersonalise it from being your project.

7. Constantly highlight common ground

If it becomes clear that two camps are emerging, keep reminding people of the points on which everyone agrees and confine the points of disagreement to ?one or two.

Often it will be small components ?of the decision that are contentious, ?but many elements of the decision will ?be uncontroversial.

Focus on the areas of agreement. If you can succeed in persuading a room that, although there is a lot of noise, the main points are actually agreed, that is even better.

8. Remember that dissent is good

Dissent tests the decision and, often, listening to dissenting views is all that the partners require. They will understand the strategy and know why the decision needs to be made, but just want to air their dissatisfaction (usually personal).

If you can get them to accept that the strategy is right and the decision inevitable, despite their dissent, even better. Then, those who were beginning to be swayed in the meeting by the dissenters’ arguments will realign with the strategy.

Most importantly, if you give ?those who disagree the time to ?explain their thoughts:

• you will appear confident in your decision, particularly if you can acknowledge their issues, note ?that they were considered and ?explain why they did not influence ?the outcome;?

• it gives you a chance to explain why their alternative is inconsistent with ?the firm’s strategy; and ?

• they will leave the meeting feeling ?that they have had their say.

9. Make small concessions

There will often be points you can concede without really affecting the substance of the decision. If this helps in making a particular partner feel that he has changed the decision or that his point has been listened to, then agree the point. This will encourage further debate and give others in the room confidence to make their own points.

10. Forget your personal agenda

This is not about beating those partners who are not on board. It is about moving the firm forward. That should be front of mind at all times.

11. Don’t take things personally

This is the firm’s strategy and it is your job to lead it. Partners are entitled to their views and consensus will not be achieved all the time, as much as we would like it to be. If they disagree, it is very unlikely to be because it is you who is proposing it.

Equity partner meetings will always be unpredictable. They will always ?be a challenge for managing partners, ?but they can be controlled if the ?strategy is clear and the rules of engagement understood.

Vicky Brackett is the managing partner ?at UK law firm Thomas Eggar ?(www.thomaseggar.com)