'I want to draw a line under that' – Ashurst's new managing partner on turning the firm around
Paul Jenkins on devolving power to partners and the accountability that will come with this as the firm bids to boost its profitability after a difficult year
August 04, 2016 at 08:48 AM
5 minute read
Paul Jenkins is under no illusion about the difficult task ahead of him as managing partner of Ashurst. He acknowledges that the international firm had a very tough 2015-16, with average profit per equity partner crashing by almost 20%, revenue dropping by 10% and a regular flow of partner departures.
"We did have a tough year and I was disappointed with the results. It's now very much about me getting out there and bringing partners along with me to improve the firm's position. It's very much about improving our profitability," he says.
Since he took up the role from predecessor James Collis three months ago, he has visited 16 of the firm's 26 offices worldwide to set out his plans to partners and introduce a more collaborative – but firm – new leadership style.
While Jenkins praises the previous management team for leaving him a "great platform", he points to an internal focus as the firm implemented its new strategy and a centralised approach at the top that needs "devolving".
"Before, there was a period of great change as management implemented a new strategy," he says. "That creates a period of internal focus. We now need to drive external focus. I see my role as the enabler of that. I don't sit on the top saying 'this is how we do things' – I lead from the front but I do bring people along with me."
They now have power as well as the accountability that goes with it
He says he has spoken to partners about devolving management, adding: "I think that partners didn't feel they had that degree of autonomy that was necessary to encourage entrepreneurialism. I've been reinforcing the message that they do now have that power, as well as the accountability that goes with it."
Changes to partner remuneration voted through this week are likely to improve buy-in, as the extended lockstep ladder and new bonus pool should make it easier for the firm to reward star performers; something that will be particularly important given the lower PEP figure.
People realise that if they work hard they will be rewarded
Up to 5% of Ashurst's annual profits will be set aside for the new bonus pool, while the equity ladder now has an extra 10 points at the top, which is intended to reward only a small number of top performers. The changes will be backdated to the start of this financial year, though no one will move to the new top of the lockstep until next April, with the bonus to be paid out during the 2017-18 financial year.
"It's about creating a higher performance culture. People realise that if they work hard they will be rewarded," says Jenkins.
As part of this process, Ashurst will be measuring the performance of individual offices as well as sectors and practices, with Jenkins giving office managing partners more responsibility to drive local performance. The flipside of this is that Jenkins will not tolerate individual offices dragging down firm-wide performance.
He comments: "We see ourselves as top of the market and we strive for that positioning in each office. I will not be happy if I hear that one of our offices is letting down the firm as a whole."
A big push on improving client relationships is also expected. Jenkins will be working closely with head of clients Logan Mair and individual client relationship partners, with the firm aiming to serve multinational clients from at least three offices.
Despite last year's performance and the potential impact of Brexit, Jenkins is hopeful. He says 2016-17 has got off to a good start, with Asia and Australia in particular performing "strongly", with France and Spain also performing well.
There is a necessity for us to have a deeper capability in the US
Given last year's performance and the investment Ashurst made in technology and lateral partner hires during that year, office openings or mergers are not on the cards right now.
Jenkins recognises however that, like many UK firms, Ashurst needs to improve its US offering. "We realise there is a necessity over time for us to have a deeper capability there," he says. "If the right opportunity arose we would look very seriously at it."
Jenkins seems well steeled for the fight ahead if he is to return Ashurst to its former glory. With an invigorated partnership and a more even spread of power throughout the firm, he is hopeful that the financial targets he has set (which he will not discuss) will be achieved.
"I really want to draw a line in the sand under that [last year] now. My goal is to get everything in place for partners to succeed. I'm absolutely determined and passionate about ensuring that is the case."
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