We win when our clients win. That is the essence of our approach to compensation. That is why our clients come to see us as “partners.”
Although we are always responsive to our clients’ preferences in terms of methods of compensation, we recommend that our compensation be tied to the results we are working with the client to improve. When there is such linkage, we experience the high level of client co-operation that is critical to improving results.
Firms considering using us for the first time frequently ask “isn’t it difficult to establish the right performance benchmarks?” Sure it is. But if those benchmarks aren’t known to both parties, then how would one know if the program is a success. Everyone—our clients and our colleagues—work more collaboratively when they share a focus on the results to be achieved.
Now you are probably thinking that such an approach must lead to frequent disputes. We have never had a dispute with a client regarding our compensation. Furthermore, we don’t ever expect to have one as we choose only to work for clients who demonstrate their understanding of the concept of partnering. Because of our careful client selection, our engagement letters make clear that the ultimate determination of whether any benchmark has been met rests with our client. Our safety valve is that if we are truly producing competitive advantage for our client, they wouldn’t want to risk ending our “partnership” by being anything other than fair.
We win when our clients win. Like our commitment to market exclusivity, our compensation approach is one of the many ways we earn the right to be “partners” with our clients. Contact us to discuss, on a confidential basis, how we can improve results in an important area of your firm.
