Equity, Achievement, Camaraderie

"An associate at a major, national firm" wrote recently with this lament:

"Lately, I really have been plagued by how law firms are managed:  I see the inefficiencies and how employees are treated (both at my firm and at other firms), and I can't help but conclude that the Ponzi scheme of partnership and current business practices will come crashing down."

None of this is exactly unheard-of, nor is his itemized bill of particulars including incessant pressure to increase billable hours, having to start projects over from scratch because of a lack of forethought at more senior levels, partners behaving obnoxiously, or an "us vs. them" mentality between associates and partners.

But what distinguishes this particular chap is that he actually went out and did some research in the management literature and came up with a book I'm about to commend to all of you responsible for managing people (at any level) in your firm:

The three co-authors comprise the founder and Chairman Emeritus of Sirota Consulting, a firm specializing in attitude research and organizational effectiveness, a Senior VP, and their Managing Director and General Counsel; they bring nearly 80 years of combined experience in the field of employee motivation to the book.

But the book is far more than their opinions, however well-informed they might be.  Rather, they "back up their findings with three decades of research reaching out to over 2.5 million employees in 237 private, public and not-for-profit organizations located in 89 countries."  As one reviewer put it, this leads to an analysis that is "sound if at times a bit overwhelming."

Richard Parsons, Chairman and CEO of Time Warner, said this about it:  "If you're looking for proven ways of increasing company performance . . . this book is for you. I recommend it enthusiastically."

So what's it about?  As the dust jacket summarizes it (emphasis original):

"Enthusiastic employees far out-produce and outperform the average workforce: they step up to do the hard, even 'impossible' jobs. They'll rally each others' spirits in even the toughest times. Most people are enthusiastic when they're hired -- hopeful, ready to work hard, eager to contribute. What happens? Management, that's what."

The guiding principle is that enthusiastic, engaged, committed employees are enormously more productive than those who are merely going through the motions or, worse, who are hostile and resentful.   This may seem common sense—as it should—but we know how often it's honored in the breach.

The authors posit that three factors "characterize what the overwhelming majority of workers want:"  Equity, achievement, and camaraderie.

"Equity" essentially means being given a fair shake in terms of compensation and job security, being treated respectfully, and being treated fairly vis-a-vis one's peers.

"Achievement" means being able to take pride in one's accomplishments by doing things that matter and doing them well.  Interestingly, they distinguish between the "turn-on" that comes from genuine achievement, and the lesser (and in some ways, dubious) state of being "happy."  (Not incidentally, David Maister makes this same distinction.)

"Camaraderie" involves have warm, interesting, and cooperative relations with your colleagues in the workplace—including, importantly, your superiors.

I've often noted that human beings have evolved with an exquisitely tuned sensitivity to inequity and unfairness, and nothing will destroy the motivation of of an enthusiastic employee to go above and beyond the job requirements faster than a whiff of injustice.  Injustice breeds anger and resentment which, however irrational the response may be, motivate the aggrieved employee to all sorts of dysfunctional behavior including slacking off and treating colleagues and clients disdainfully.

And how much does it cost you, again, to lose an associate? 

One reviewer went so far as to elevate it to the true pantheon of managerial literature:  "I believe that this book is a useful addition to other research into high-performance organizations, such as Tom Peters & Robert Waterman (In Search of Excellence, 1982), Jim Collins & Jerry Porras (Built to Last, 1994), Jim Collins (Good to Great, 2001)." 

While I'm not prepared to go that far, I do recommend you buy yourself a copy, look it through, and then decide whether every leader in the firm needs one of his or her own.

Posted by Bruce at April 21, 2006 12:14 PM | TrackBack
Posted to Compensation | Cultural Considerations | Finance | Leadership | Partnership Structures | Practice Group Management

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