Podcast: What to do if partners just don't want to develop business?
What to do if partners just don't want to develop business?
In a delightful discussion on The Rainmaking Podcast recently, Scott Love and Michael Roch peeled back the layers on how to use partner compensation to incentivize business development.
To begin, partner compensation is only one part of the equation - the firm's culture around expectations, how partners advance and leadership maturity are hugely important factors.
Partner reward plays a significant role. Unfortunately, many firms either oversimplify it e.g. through an "origination" formula that can't ever do justice to the nuance of personal relationships, or make it overly complex e.g. through pages of policy explaining how to allocate different types of credit.
Scott and Michael discussed three starting points for how partner compensation encourages business development:
Three key points stood out from our discussion:
1. The right approach depends on firm size, strategic priorities and partnership culture.
2. Firms also need to recognize how partners contribute. One-size fits all originations rarely tell the full story. Some partners win new clients. Some expand key accounts. Some protect crown jewel relationships. All are valuable.
3. Compensation serves as a lever. It does not create action on its own. Leadership sets the tone, defines clear expectations and holds partners accountable.
Listen to the podcast if you want to ensure your partner reward system supports strategy and drives growth.
TRP 295: [Legal] How to Incentivize Partners for Business Development with Michael Roch
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