BACKGROUND
Law firms typically conduct annual or semi-annual performance evaluations. These assessments assess legal skills, work ethic, and other relevant factors. Ballard Spahr faced several challenges related to attorney performance evaluation and compensation:
- Subjective Evaluations: The existing evaluation process relied heavily on subjective assessments, lacking the quantifiable metrics the firm wanted to include.
- Opaque Compensation Decisions: Attorneys were unsure how compensation decisions were made, leading to dissatisfaction.
- Manual Workflows: Administrative tasks related to the evaluation process and compensation were time-consuming and error-prone.
OBJECTIVE
- Objective Evaluation: Implement a system that objectively measures attorney performance.
- Transparency: Provide clear criteria for compensation decisions.
- Efficiency: Streamline administrative processes.
DASHBOARDS and DATA UX
Data dashboards were designed to pull in sensitive data related to performance markers. Billable Hours, actual and forecasted are tied to profitability, clients and matters, and other core value metrics.
- Individual Contributions: Attorneys received evaluation scores for non-billable contributions (e.g., business development, mentoring, pro bono work).
- Billable Hours: Attorneys’ billable hours were tracked automatically using integrated timekeeping tools.
- Profit Contribution: The system calculated each attorney’s contribution to the firm’s profitability based on revenue generated.
Evaluation Portal
- Committee Members: A designated committee evaluated attorneys using the portal.
- Comments and Feedback: Committee members and partners provided specific feedback on each attorney’s strengths and areas for improvement.
ANNUAL COMPENSATION
- Transparent Process: Attorneys received a breakdown of how their compensation was calculated.
- Weighted Factors: The system assigned weights to billable hours, profit, and individual contributions.
- Equity Partners: The system factored in equity partnership status and tenure.
RESULTS
- Fair Compensation: Attorneys appreciated the transparency and understood how their compensation was determined.
- Efficiency Gains: Administrative workload decreased significantly, allowing staff to focus on strategic tasks.
- Improved Performance: Objective evaluation led to better alignment with firm goals and increased motivation.
CONCLUSION
The Partner Allocation System transformed the processes related to evaluations at this level. Ultimately fostering a culture of transparency, fairness, and data-driven decision-making. Attorneys also had a clear path to partnership, business opportunities, and visibility to their own performance metrics, and the firm saved time and money.