CLIENT
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Large multinational consulting firm that was spun off from parent company |
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SITUATION
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The partner group wanted to redesign the global partner compensation system to fairly distribute firm income to individual partners consistent with the new organization and business strategy. Acceptance of the new system required a super-majority vote by 200 partners in 28 countries, making change management essential to the success of the project. |
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APPROACH
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Over the course of six months, ThreePoint Consulting:
- Managed the design and change management process working with a steering committee of partners from six countries
- Conducted “pulse surveys” to assess the opinions and mindset of the global partner groups
- Benchmarked relevant competitor pay practices, including
compensation structure and levels for partners in consulting firms
- Redesigned performance measures used to evaluate company performance and unit results
- Developed an individual performance assessment framework for partners, incorporating both individual financial results and desired behaviors against defined competencies
- Conducted extensive financial modeling for the distribution of profit under different performance scenarios to each country and each individual
- Prepared steering committee members to complete a “roadshow” in each region, describing the new compensation system and gathering input/feedback
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RESULTS
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The partner group voted overwhelmingly (>90%) to adopt the proposed changes, and the new bonus plan was successfully implemented. As a consequence of significant partner involvement in the process, the new compensation system represented a powerful tool for re-affirming what the organization values, how partner contribution and performance will be rewarded, and what partners could expect throughout their careers. The approved partner compensation system has worked well and is still in place today. |
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