Author: Michael Roch,Lead author, The Partner Remuneration Handbook (2022)

In partnership with Performance Leader, MHPR Advisors is pleased to share the key findings from the KPIs & Metrics in Partner Contribution & Compensation roundtable.

Finding and using the right key performance indicators (KPIs) and metrics for equity partners is a significant challenge for most firms.

Our recent 2020 Equity Partner Contribution & Compensation Survey showed disconnect between commonly used KPIs and metrics, and the strategic issues facing firms.

Production metrics dominate in firms today, with 75% of the five most important metrics used by firms are production related. The next two most common metrics relate to business development and leadership.

The problem is what’s missing, specifically KPIs and metrics that relate to:

Our roundtable asked, ‘how can a firm tackle these issues while 75% of the KPIs and metrics used for equity partner contribution and compensation management are production-related?

Break out groups identified KPIs for three of these challenges:

The roundtable also considered common problems in the application of KPIs and metrics, and potential solutions.

We presented the following summary table on this point.

Common problems in the application of KPIs & metrics

KPI and metrics health-check for partner compensation

In helping our roundtable participants to consider their firm’s approach to these issues, we asked them to self-assess the following statements on a five-point strongly disagree to strongly agree scale. We won’t disclose the responses for confidentiality reasons, but we share these questions with you in case you might like to ask them of yourself or your equity partners.

Our thanks to our roundtable participants for a stimulating conversation. If you have any questions about the report or would like to discuss how we can help your firm with KPIs and metrics then please get in touch.

This article, co-authored with Ray D’Cruz, also appears on Performance Leader.