Background

Three years after the merger of two smaller professional services firms, the combined firm continued to face problems of morale, dueling cultures, and turnover.

Approach

Weekly strategy sessions were instituted with the firm’s partners and key decision makers. These meetings went beyond day-to-day operations and focused on higher level issues. These private meetings were also where partners voiced concerns to one another about their own, and each other’s, abilities to execute. At these sessions, important cultural changes were impacted from the top down.

Simultaneously, senior associates and staff were provided management training. Particular attention was given to the annual review process, which previously had been inconsistent and largely ineffective. A committee was put together to solicit feedback from employees and to explore options for improving the review process. The committee was used as a model for bilateral communications between employees and management; its successes were celebrated publicly, and its challenges were studied by senior management and used to diagnose deeper issues.

Finally, because of the relatively small size of the organization, steps were taken to identify key individuals who had a disproportionately large impact on the overall culture of the firm. Top management took the time to meet with these individuals, explain the direction of the firm as well as what was to be expected of employees moving forward, and then challenge them to take leadership roles in combating turnover at an interpersonal level. Coaching, training, mentorship opportunities, and other tools were provided as needed. Importantly, management also “wiped the slate clean,” taking responsibility for any past performance issues and establishing a new baseline for the newly requested behaviors.

Results

Eighteen months later, firm revenues had risen steadily to more than double the combined revenues of the two, pre-merger firms (based on the last available growth projections). Turnover reached its lowest rate since the merger. With a stabilized workforce, better-trained management staff, and positive culture, the company not only increased revenues, but was finally able to make critical investments in technology and marketing that had been repeatedly postponed. Two high performers achieved partner promotions and several others separated as a result of accountability to a new set of performance standards.

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