Why your firm needs a partners' code

Although there is almost always a written contract between the firm and its partners in terms of a partnership, members' or shareholders' agreement, this rarely touches upon the psychological agreement between the firm and its partners. Often unwritten and unspoken, the psychological agreement focuses on what the firm can do for its partners and, equally, what the partners can do for the firm. It is the latter part which is often neglected.

Partners generally have great expectations of what the firm ought to be doing for them in terms of status and respect, working conditions, recognition and well being, as well as remuneration. All too often, this is not balanced by buy-in on the part of individual partners to the firm's reasonable expectations for hard work, innovation, willingness to learn and keep up to date, tolerance, flexibility and commitment to values.

In addition, while most firms have a written set of values that they espouse, these are very often neglected in practice. Though it may seem an obvious point, many firms have no formal approach to gaining partner acceptance to such a set of values or to an agreed code of expected conduct and behaviour - the partner end of the psychological contract.

Talking the other day to a partner in a large professional services firm, ?he mentioned that, when he was in the army, they had a code of conduct which was set out in a huge document that you had to read and solemnly sign. I am not personally in favour of a voluminous set of rules, but I do think that getting partners to sign up to a short statement of principles has some merit - preferably on a single sheet of A4. At the extreme end, it can help to provide the grounds for ejecting both jerks and underperformers. It also helps to remind the partners of some of the basic tenets of partnership and to gain their acceptance both to the stated values of the firm and the behaviours expected of partners.

The four pillars

A partners' code should cover four areas.

1. Strategy and values

First, it should hold partners responsible for their dealings with the firm by requiring them to accept the spirit and the letter of the firm's strategy and to take cabinet responsibility for decisions that have been made in accordance with the firm's decision-making processes.

It should also require them to embrace the firm's values. It should establish or reaffirm the firm's expectations in terms ?of commitment, hard work and effort ?from every partner.

2. Client service

The second area addresses the fair treatment of the firm's clients. It requires clients' interests to be paramount and promotes the highest standards of professionalism, truthfulness, integrity ?and trustworthiness.

This of course sounds so obvious that many partners may think such principles not worth embodying in a code. Yet, there are still many firms at which the partners fall down on their most basic obligations of quality and service, and treat clients with varying degrees of grudging acceptance ?or resentment.

3. Internal relationships

The third area deals with internal relationships. Partnerships can be riven ?by cliques, political games and lack of respect for each other. Professional managers are often treated with disdain, and juniors with little consideration.

Hence, it is worth reaffirming the ?need for respect to other partners by delivering what is promised, communicating appropriately and supporting each other. Equally, partners should sign up to treating all non-partners with respect by being committed to a learning, development and training culture, by delegating and supervising responsibly, and by coaching, mentoring and educating so as to develop the abilities of people across the firm.

4. Learning and development

Finally, all partners should be expected to continue to learn, develop, improve and innovate. They should develop the self-discipline to work with purpose, to perform to the best of their abilities and to gain results. In particular, they should be expected to act as role models for others, and to set an example of open communication for others to follow.

Make it binding

Drafting a partner's code and getting everyone to sign such a document ?never of course nails the subject of ?partner behaviours and the adherence ?to minimum standards and values.

However, lawyers tend to place great value to the signing of a formal contract. A written partner code can therefore help to concentrate partners' minds on their obligations to the firm.

Nick Jarrett-Kerr advises law firms worldwide on strategy, governance ?and leadership development ?(www.jarrett-kerr.com)