Actually, looking at the data, we seem to learn nothing:
- Of the “good” 50 firms:
- 24 increased head count, 26 cut it
- 24 increased equity ranks, 23 cut and three stayed flat
- Of the “bad” 37 firms:
- 14 increased head count, 23 cut it
- 12 increased equity ranks, 23 cut it and two stayed flat.
Graphically, here it is:
This makes it look like a coin toss, supporting “we learn nothing.”
Not so.
We actually learn something critically important: Pushing these buttons does nothing. More rigorously, changing the readings on these dials has no systemic impact. Something else must be afoot that explains out- and under-performance.
The answer, I suspect, has a lot to do with knowing who you are and what clientele you’re targeting and virtually nothing to do with throw-weight.
Yes, I know this used to be easy. Increase headcount and increase revenue; increase equity partner ranks and increase the rain-maker quotient. What could possibly go wrong?
Welcome to a post-“growth is dead” world. It’s time to think new thoughts. I have a few, so let me know if you’d like to chat.
In times of turbulence the biggest danger is to act with yesterday’s logic.
—Peter Drucker
