Over the last several years, I have traveled across the country consulting with law firms, one-on-one, and have come to an important conclusion: The most profitable law firms have two critical components at work: 1) Great Employees, and 2) Great Firm Culture. This winning combination isn’t a matter of chance or luck. These firms have methodically created a positive firm culture with mechanisms in place to motivate their employees to exceed expectations. So how can you replicate this synergy within YOUR firm?
Many law firms take the “carrots and sticks” approach to motivating their employees, by dangling short term incentive rewards, or “carrots” in front of their employees to encourage peak performance. Although this method of motivating employees can sometimes work in the short-term, it typically fails to produce the long term and consistent results you need to propel your firm forward to greater success and sustained profitability.
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I recently read a book entitled “Carrots and Sticks Don’t Work: Build a Culture of Employee Engagement with the Principles of RESPECT” (McGraw-Hill 2010), written by Dr. Paul Marciano, a leading behavioral psychologist, and authority on employee engagement and retention. In a nutshell, Dr. Marciano concludes that reward programs will never lead to sustainable changes in behavior because they have no impact on the organization’s culture. Fundamentally, these incentive programs should be tabled because culture drives behavior and behaviors reinforce culture.
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Marciano argues that while the purpose of a reward/recognition program is to increase the overall level of employee motivation, it really only serves to motivate those employees who are already your firm’s most motivated individuals in the first place, while having little impact on your company’s poor performers. In fact, in his assessment (and mine as well), these tactics often decrease the motivation of your middle performing employees. Ironically, it is those middle performing employees who represent the greatest potential to increase your overall human capital. Incentive programs recognize and reward those already high achieving employees. Using these carrot/stick incentives as your primary motivational strategy is like giving extra help to the student who is already scoring a 98 on the exam. There isn’t much room for improvement, and the rest of the class continues to lag behind.
Overall, employee engagement is the key to turning things around and motivating the masses within your firm. Insightfully, Marciano distinguishes engagement from motivation. While these terms are similar, they are not synonymous. Engagement refers to an intrinsic, deep-rooted and sweeping sense of commitment, pride, and loyalty that is not easily altered. In contrast, motivation is strongly influenced by external factors, especially expectations that certain efforts or accomplishments will yield valuable rewards such as a financial bonus for reaching a quarterly sales objective. Critically, employees who are motivated but not engaged will work hard so long as there is something in it for them, while engaged employees work hard for the sake of the organization/team and because it gives them a sense of fulfillment. Fostering commitment, pride and loyalty should be an integral part of your firm’s culture.
Employee commitment, pride, and loyalty are best fostered if you understand what drives the human heart. Mary Kay Ash, the founder of Mary Kay Cosmetics, made this important observation: “There are two things people want more than sex and money…. Recognition and Praise.” Marciano puts it in business terms, noting the powerful ROI of positive feedback: 1 minute spent on complimenting work can lead to hours of increased productivity. In recent studies, the No. 1 reason employees leave their job is not the money; it’s feeling unappreciated or having a “bad” supervisor.
Do’s and Don’ts of High-Performance Culture and Engaged Employees:
Firm Cultures that Produce Highly Engaged Employees provide the following:
1) Support/Loyalty: Employees feel that their supervisor has their back, believes in them, and wants them to succeed.
2) Relevance: Employees feel that what they do matters and can make a difference to others.
3) Pride: Employees are able to take pride in their work.
4) Trust/Empowerment: Employees feel their supervisor trusts them to do good work and doesn’t need to look over their shoulder constantly.
5) Recognition: Employees thrive because management recognizes them and gives praise/credit when warranted.
6) Team Respect/Comradery: Employees know their team enjoys working with them and respects them as valuable members.
7) Honesty: Employees receive honest interaction and communication from management.
8) Opportunity: Employees have opportunities for growth and advancement within the organization.
Factors that Promote an Employee ‘s DISENGAGEMENT: The DON’Ts:
1) Managers taking credit for employee’s work/ideas/contribution
2) Unrealistic or Unexpressed Expectations
3) Lack of coaching, feedback and management support
4) Incompetent Leaders who are not worthy of respect or are Disengaged themselves
5) Feeling underappreciated and devalued
6) When supervisors seek an employee’s input and then make him or her feel stupid
7) When management never seeks employee input
8) Gratuitous and Non-Constructive Criticism
9) No communication from management as to the firm’s goals/direction
10) Lack of Overall Respect
Marciano’s book supports what I’ve personally observed at work in successful law firms and what I have been preaching for the last several years: Employees want to feel appreciated and that they are an integral part of something larger. Great firms must have great leadership from the top down. It is up to you as the law firm owner to select great managers and supervisors and to be very clear and intentional in shaping and expressing your vision for your firm and culture. Then, you, your managers and supervisors must follow through with clearly communicated expectations for each and every employee or team member within the firm.
It is for the reasons stated herein that I believe firms should do away with the traditional performance reviews, which typically serve to waste the firm’s time and bring employees down rather than lifting them up to better engagement and performance. Instead, look at your firm’s infrastructure, policies, and management protocol to make sure you are providing your employees with the feedback, coaching, praise and peer recognition that encourages employee engagement. Also, when it comes to criticism, make sure that this communication is done in private and worded in a constructive manner designed to help the employee feel coached, supported, and mentored rather than put down and criticized.
Healthy and productive firm cultures produce Engaged Employees, but this kind of Successful Management starts with You and Your Firm’s Leadership. IF you want to have a successful law firm, you must have a leader at the helm that can implement a firm culture with core values communicated to and shared by the entire law firm. If you need some help in specific strategies, I suggest you take the time to read Carrots and Sticks Don’t Work, and then work on creating a positive firm culture of engaged employees all working together to fulfill your firm’s vision and mission statement.
