Several years ago, I co-wrote an article with McKinsey & Company’s Dan DiPietro about alignment in law firms — specifically the link between compensation and business development. I’ve been thinking about it again recently, and if anything, the point feels even more relevant today.
Here’s the uncomfortable truth.
You can invest heavily in business development training, coaching, CRM systems, and cross-selling initiatives. But if your compensation structure doesn’t reinforce those behaviors, much of that effort won’t work the way you intend.
At its most basic level, imagine giving a partner this choice.
Option one: Additional compensation at year-end that helps pay for children’s college, supports family obligations, and provides real financial security.
Option two: Being told you are an excellent firm citizen — collaborative, generous, willing to share clients, and invested in helping others build their practices — but earning less at the end of the year because you followed the firm’s stated values rather than what is financially rewarded.
Which option is most likely to win?
This isn’t about selfishness or a lack of values. Most lawyers genuinely want to do the right thing. They care about their colleagues and the long-term success of their firms. But compensation sends a powerful signal. When it rewards individual origination above all else, it quietly discourages collaboration — even as leadership promotes teamwork and cross-selling.
That disconnect creates frustration on all sides.
Firm leaders wonder why collaboration doesn’t stick.
Marketing and business development teams feel like they’re pushing uphill.
Partners feel torn between doing what’s encouraged and doing what’s rewarded.
Alignment matters. Strategy, culture, compensation, and expectations all need to point in the same direction. When they do, firms thrive. When they don’t, no amount of business development programming can fix the problem.
The real question isn’t whether business development is a good idea. It’s whether your compensation system actually makes it possible.
I’d be curious to hear how others are thinking about this. Where have you seen alignment work well — and where does it quietly fall apart?
