A multi-stage model of governance in ... - Cass Knowledge

Cass Centre for Professional Service Firms – Working Paper 004 - 2010
It was a brilliant speech. In about 30 minutes Alistair touched every single point
of insecurity among the partners and said basically – don’t worry, everything is
going to be all right. (Partnership Secretary)
At the partner conference Alistair was elected CEO by a substantial majority. As one
member of staff explains it:
We sort of rushed headlong down a corporate-style approach and then rushed
headlong, or rather arse-end, away from it. (Business Group Head)
Over the next few years Alistair made concerted efforts to rebuild the sense of
connection between partners and management. Shortly after his election, the titles of
Managing Partner and Senior Partner were reintroduced to replace the titles of CEO
and Chairman. He also went beyond such symbolic changes. In promising to ‘give
the partnership back to the partners’, Alistair committed himself to an exhausting
programme of dialogue with the global partnership group. His relentless international
travel programme and willingness to listen to all partners’ concerns helped to allay
partners’ fears across the global network and resolved the crisis of Disconnection.
However, he found it difficult to translate this activity into effective action. In retreating
from the ‘Corporate’ style of governance, Alistair had relinquished any possibility of
exercising Delegated authority and had, in effect, reverted to a more Collegial style
of governance.
This collegial approach proved ineffective for a large global partnership. The partners
became increasingly concerned as many merger-related issues remained unresolved
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