The Ensemble Practice

Introduction xiii Acknowledgments xv PART I: STRUCTURING AN ENSEMBLE CHAPTER 1 The Ensemble Defined 3 The Ensemble Concept 5 Ensemble Demographics 7 Ensembles Are More Profitable and Valuable 10 Clients Prefer Ensembles 12 Should Everyone Be an Ensemble? 14 What's Next and Who Should Read on 16 Notes 17 CHAPTER 2 The Ensemble Structure 19 The Service Advisor Model--Leverage 21 The Emerging Partnerships--Sharing 24 The "True" Ensembles--Leverage and Sharing Combined 28 The Super-Ensemble Firms 34 When Large Becomes Too Large 37 Notes 37 CHAPTER 3 Growing into an Ensemble 39 The Right Time to Hire 39 Whom Can You Hire? 41 Structuring Client Service 45 Service Advisors and Client Relationships 47 The Hiring Process 50 The Selling Question 53 The Equity Question 55 Making the Decision 57 Notes 58 CHAPTER 4 Merging Together 59 Your Shared Strategy 62 Your Shared Values 63 The Data 65 The Business Plan 67 Partner Roles and Compensation 68 The Deal 69 Mergers of Not So Equals 70 The Deals after the Deal 71 Owner Rights 72 Making Decisions as Partners 73 Buy-Sell Agreements, Retirements, and Breaking Up 75 Communicating the Deal to Clients and Employees 76 Notes 78 CHAPTER 5 From Silo to Ensemble 79 Creating a Shared Bottom Line 80 The "Mine, Yours, and Ours" Model 83 Assign Management Responsibilities 83 Share Client Meetings 84 The Prenup 85 Change Your Thinking 86 Note 88 CHAPTER 6 Partner Responsibilities and Partner Compensation 89 Labor versus Equity 89 Using Profit Centers or Silos 92 Setting Owner Base Compensation 94 The Role of Equity Ownership in Income 99 Discretionary Expenses and Perks 100 Partner Compensation Discussion Worksheet 100 PART II: MANAGING AN ENSEMBLE CHAPTER 7 Creating Ensemble Culture 105 Establishing Priorities and Values 106 Customers--Service as Culture 108 How We Deal with Each Other 110 Who Owns the Client? 115 Mom and Dad 116 Tribes 117 Manage Yourself 118 Notes 119 CHAPTER 8 Making Partner 121 When Can You Add a Partner? 122 Whom Do You Want as a Partner? 124 How Do They Buy-In? 128 Alternatives to Full Partnership 131 Why Do You Promote Partners? 134 Notes 135 CHAPTER 9 The Big Idea 137 Four Stages of Growth 137 Steps to Institutionalizing 140 Notes 144 CHAPTER 10 Managing Professional Compensation 145 Compensation Philosophy 146 Setting Salaries 148 Payout-Based Compensation 150 Incentive Compensation 151 Benefits 155 Compensation Management Process 156 CHAPTER 11 The Bottom Line 159 The Owners' Personal Income and Income Bogey 160 The Income Statement 163 Managing Engagement Economics 166 Unit Economics 167 Managing Staffing Cost and Productivity 174 Overhead Management 176 Key Ratios on Your Dashboard 177 Budgeting and Financial Management Discipline 178 Notes 180 CHAPTER 12 The Devil in the Details 181 Agreement on Service Process 181 Investment Committee 183 Leadership in Operations 184 Customization and Efficiency 185 Technology Selection 186 Quality Control and Risk Management 187 Vendor and Strategic Partner Choices 188 PART III: WHAT HAPPENS NEXT CHAPTER 13 Recipes for Failure 193 How to Fight with Your Partner 194 Losing Control of Your Own Firm 196 Agree to Disagree--aka Avoiding Difficult Decisions 198 The Porch of Indecision 199 People Who Don't Develop 199 Protecting Your Ensemble 200 Note 201 CHAPTER 14 Doing Deals 203 Equity Planning for Ensembles 204 Consolidation Deals 207 Other Acquirers 209 Finding Your Deal 211 Note 211 CHAPTER 15 The Future Belongs to Ensembles 213 About the Author 217 Index 219