When to Make Someone a Partner in a Law Firm — And When Not To
One of the most important decisions a law firm can make is who becomes a partner.
And one of the most common mistakes I see is promoting someone for the wrong reasons.
Because partnership isn’t just a reward.
It’s a long-term business decision that impacts:
culture
profitability
leadership
and the future of the firm
The Common Trap: Promoting Based on Originations Alone
A strong book of business often puts someone on the partnership track.
And while originations matter — a lot — they shouldn’t be the only factor.
I’ve seen situations where:
a partner brings in significant work
looks strong on paper
drives top-line revenue
But underneath that:
billing is inconsistent
accounts receivable are high
collections are weak
the practice is disorganized
A Real Example
I worked with a firm where one of the top originators:
generated significant revenue
was viewed as a strong partner candidate
But:
bills weren’t going out on time
collections weren’t a priority
A/R was the worst in the firm
operationally, the practice lacked structure
So while revenue looked strong…
Actual performance and cash flow told a different story. This is why “If you don’t know your numbers, you don’t know your firm.”
Why This Matters
Promoting someone in that position sends the wrong message.
It signals:
originations matter more than execution
revenue matters more than profitability
leadership standards are flexible
And over time, that impacts:
culture
accountability
and financial performance
What Partnership Should Actually Represent
Partnership should reflect:
business contribution (not just originations)
operational discipline
leadership and accountability
alignment with how the firm wants to operate
Because partners don’t just produce work.
They set the tone for the firm.
Other Factors That Matter
When evaluating partnership, firms should also consider:
1. Sustainability of the Book
Is the work consistent and repeatable?
2. Financial Discipline
Are billing, collections, and cash flow managed properly?
3. Leadership Capability
Do they contribute to the broader success of the firm?
4. Alignment With Firm Standards
Do they operate in a way that others should emulate?
The Risk of Getting It Wrong
Promoting the wrong partner can lead to:
misaligned incentives
cultural issues
operational inefficiencies
long-term financial impact
And unlike other decisions, partnership is difficult to unwind.
The Real Question
Instead of asking:
“Are they producing enough to be a partner?”
Ask:
Are they operating like a partner already?
Do they contribute to the firm beyond their own book?
Do they reflect the standards we want to set?
Are we reinforcing the right behaviors?
If your firm is evaluating partnership decisions, it’s critical to look beyond top-line revenue and assess the full picture.
I work with law firms to align leadership, structure, and incentives so partnership decisions support long-term growth.