As part of our series on taking a balanced approach to measuring partner performance, Rachel Stone looks at the vital area of existing client relationships.

Partners pride themselves on the size, prestige and value of their client portfolios. Being valued as a trusted adviser by their clients is part of the core motivation for most individuals who reach partner level. It is a key differentiator between those who develop a loyal and long-standing client base, and those who find it difficult to build and maintain long-term client relationships.

Client standards for every partner

There is always a danger of taking existing clients for granted, particularly when relationships have worked well for years. Measures for the quality of client relationships need to include the provision of current services and the opportunity to introduce clients to other services your firm may offer, which could support their business.

In terms of looking at a partner's existing client relationships, it may be worth considering some of the following issues.

  • Does the partner have a structured client contact and support programme in place?
  • What proportion of the partner's clients stay with the firm each year?
  • How many clients choose to move to other firms and for what reasons?
  • How much cross-selling activity has been carried out to the existing client group and with what success?
  • How much new work has the partner's existing clients referred into the firm?
  • How successful has the partner been in creating a broader and deeper advisory relationship with key clients?

Measuring client satisfaction

Not every firm chooses to invest time in gathering formal feedback from its clients, but well-designed client feedback tools can provide timely and valuable data. For example, surveys or structured review meetings can inform the review of partner performance and the overall client support approach of the firm.

Useful information can be gathered by asking clients about their level of satisfaction. Questions might include some of the following.

  • How well is our firm meeting your needs?
  • How would you rate the quality of our advice?
  • How would you rate the overall value of our offering to your business?
  • Would you be prepared to act as a referee or be included in a testimonial for our firm?

How a client responds can feed directly into a balanced review of partner performance.

In the next issue of Professional Practices News, we will look at partner performance in terms of internal management measures.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.