A multi-stage model of governance in ... - Cass Knowledge
A multi-stage model of governance in ... - Cass Knowledge
A multi-stage model of governance in ... - Cass Knowledge
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<strong>Cass</strong> Centre for Pr<strong>of</strong>essional Service Firms – Work<strong>in</strong>g Paper 004 - 2010<br />
Although a vote <strong>of</strong> the full partnership was still required for all key management<br />
decisions (e.g. election to management roles, election <strong>of</strong> new partners and enforced<br />
departure <strong>of</strong> underperform<strong>in</strong>g partners), the Manag<strong>in</strong>g Partner and Senior Partner<br />
began to assume <strong>in</strong>creas<strong>in</strong>g authority for the day-to-day management <strong>of</strong> the global<br />
firm. The Manag<strong>in</strong>g and Senior Partner were behav<strong>in</strong>g as if the firm had moved <strong>in</strong>to<br />
the Delegated phase <strong>of</strong> <strong>governance</strong>, although the partners had formally delegated<br />
only limited authority to them. A substantial proportion <strong>of</strong> MegaPartners’s partners<br />
began to perceive that the firm was becom<strong>in</strong>g ‘Corporate’. This impression was<br />
re<strong>in</strong>forced by certa<strong>in</strong> symbolic changes, such as the Manag<strong>in</strong>g Partner and Senior<br />
Partner’s decision to change their titles to CEO and Chairman. Partners meanwhile<br />
perceived that the Management Committee was becom<strong>in</strong>g more remote or<br />
‘Disconnected’ from the partnership.<br />
Management were struggl<strong>in</strong>g with a whole load <strong>of</strong> quite difficult issues post<br />
merger, and they became more and more closed-<strong>in</strong> on themselves…They took<br />
decisions themselves, didn't talk to other people. I th<strong>in</strong>k, to the average partner,<br />
that appeared very arrogant. (Management Committee Partner)<br />
I th<strong>in</strong>k we were just gett<strong>in</strong>g on with try<strong>in</strong>g to mould the new firm but, <strong>in</strong> do<strong>in</strong>g that,<br />
we sort <strong>of</strong> became more authoritarian automatically. The old partners really<br />
noticed the difference. I th<strong>in</strong>k there was probably a note <strong>of</strong> over-confidence as<br />
well. I th<strong>in</strong>k we thought we were really clever to have pulled <strong>of</strong>f the mergers and<br />
were eager to do really well. (Management Committee Partner)<br />
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