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The Problem of Standards

By David H. Maister

They ask their clients to log in every two


A speech delivered at the Legal weeks to indicate on a simple scale of
Solutions Conference, The Hague, one to four their level of satisfaction
Netherlands, September 11, 200. It with the client project so far. The
includes many topics addressed in other chairman of this $15 billion company
articles, but shows how some of my (EDS) can log in and see the feedback
themes were combined in a single from every client for the entire company,
presentation. and that is the first thing he does every
day.
Technology is potentially wonderful, but
professional firms will never capture its The likelihood that you will do good
benefits because there is no point in project management and great client
giving advanced tools to a group of service with this system in place goes up
people who do not have the discipline to 1000 percent. The system keeps you
do the basics. honest by introducing an unavoidable
accountability.
If you really want to get the commercial
benefits of any strategy, you must put in What’s impressive about EDS is not the
a system that forces you to execute that technology but the willingness to be held
strategy. The tragedy is that they will not accountable to high standards. Most
accept accountability for standards. professional firms haven’t even got an
Giving them technology is like giving a internal project management system, let
machine gun to a baby. You first teach alone one where you would give access
the baby that there are certain standards to the clients.
to live by, and only then can you give Professionals say, “Well, I am not very
them the advanced tools. good at project management. Can’t I
You have all heard of EDS, the ignore it?” Oh yes, the firm replies, we
computer services giant. It is about a $15 forgive you as long as you’re good at
billion company. They have a web-based your discipline (or bill a lot of hours).
project management system that records Another Example: Client Service
everything about the project—the next
Take the topic of client service: You all
due dates, what’s been done, what’s on
have in your mission statement, or on
time, what’s delayed, how much of the
your website, a commitment to client
budget has been spent and accumulated.
satisfaction and client service. But how
Here is the key point: This information
many of you have a feedback system
is entirely accessible by the client! At
where you regularly ask clients at the
any time, the client can log in and see
end of every transaction how happy they
where his or her project stands, with
are? (About one-fifth of audience
budget, due dates and deliveries.
members raise their hands.)

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The Problem of Standards

How many of you publish those results, recognize that you’re probably never
with the name of the relevant partner, to going to be anything other than no worse
everybody in the firm? (Two people than anybody else.
raise their hands.) What you have is a There are times when I get my client
belief that client service is very service wrong; I’m not saying I’m
important, but except for one or two perfect. All I’m saying is that I’m
shining examples, there is a refusal to prepared to be accountable. Now, I blow
accept accountability to do it. You leave it occasionally, and all I ask is that
it to self-discipline to accomplish the people tell me why. And if they tell me
standard, and that doesn’t do the job. why, I can say, “You know, that’s
Firms often have inspirational speeches actually fair.” I probably should’ve done
at their partner meetings about service that or done this differently. And then
and commitment to clients. But if there I’m going to carry on working for them.
is no system that keeps people honest I’m not that good. I don’t always get it
about actually doing it, then you don’t right. But I’d rather have a system that
get the benefits. The only way to get the forces me to try because over time I’m
benefits is to accept the discipline. going to make more money on a system
Like all of you, I believe in outstanding that forces me to try.
client service. The way I try to make that If you don’t want to try that hard, you
real for me is that even though I charge don’t have to. Just don’t announce client
obscene fees I give an unconditional
service as your strategy. That’s my
client satisfaction guarantee. Every
message. You can pick whatever
invoice that goes out from my office (I strategy you want. But if you’re not
don’t discuss it with my business prepared to be strictly accountable for
manager; it’s a standard invoice) says, what you declare your strategy to be,
“Here is the bill in the [obscene] amount
you’re fooling yourself and you’re
that we agreed on. However, if you are wasting time. Pick something you
anything less than completely satisfied
actually believe in.
pay only what you think it was worth.”
That’s my system. Supervising Work
Now, if you think about that system you Consider another topic: meeting the
can see where the benefit comes from. It following standards in matter
doesn’t come because it’s a marketing supervision. Imagine a world where I
tool; it comes because I have no choice come to your firm, let’s say six to nine
but to do my best. The key is, if you months from now, and I stop every
really want to make something happen, professional that you have working for
don’t leave it to self-discipline. If you you and ask, “What’s it like working
really want to make something happen, here?”
create an external discipline. And they say, “In this firm, one thing
And if you don’t want to try that hard, if you can bank on, guaranteed, is that you
you don’t want to be held strictly will be superbly supervised on every
accountable, then fine—drop that transaction because it is a matter of
strategy and move on to something else. professional principle with us. We don’t
But if you can’t find anything you’re do work unless we supervise it
prepared to actually commit to, then superbly.”

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The Problem of Standards

Tell me what commercial benefits would profits, greater client satisfaction, more
come to that firm if it were true that this retention of people, more motivated
was always done superbly. Where would staff. And what do you have to do to get
the firm see the benefits? (Audience: the benefits? Basic supervisory actions!
Clients would notice.) When you give somebody a piece of
Which is terribly scary because maybe work, make sure they know what they’re
that means they notice now that we don’t doing. If you’ve got more than one
supervise their work superbly. person on the job, make sure the left
hand knows what the right hand is up to.
What else can I write down? (Audience:
This is not advanced PhD stuff; even
We would retain people.) Of course. Do
your tax partners could do this!
you think the quality of the work would
go up? (Audience: Yes.) So here is the issue: Why are firms not
getting these benefits, when the benefits
If we always supervise, the quality
are everything we say we are after—
would go up. What else? (Audience: We
quality, professional pride, money, great
would spread skills faster.)
work environments—when to do it
Is that good for the law firm? OK, what requires only a set of very basic skills
else can I put up there? (Audience: that can be taught in a weekend with a
Clients might be less fee sensitive if they copy of the One Minute Manager? Why
found someone who always supervised does the average firm not enforce this
the work well.) standard? (Audience: We can get away
That’s your theory? So incrementally we without doing it.)
get higher fees. How else does profit go That’s called professionalism, right? We
up if you do it? There would be less will only do what we are forced to do.
wasted time and rework, right? Professional firms are completely
So the direct profit effect is that you unprofessional. They have no standards
have lower write-offs and higher of quality whatsoever that are actually
realization because there would be less enforced. They have wonderful
work done that we could not charge for standards of quality that are preached.
because we had better supervision. But we forgive any partner who does not
do this as long as he does not go to the
Also, if I knew that every junior had opposite extreme and do something
been treated this way since the day they ugly—like sexual harassment or getting
joined the firm, I might actually trust us sued.
those people and delegate, whereas if I
am living in the normal firm where As long as it is not the other extreme, we
nobody ever does this, then it’s quite will let anybody live who does a sort of
logical never to delegate because the okay job of this. Business is a lot simpler
juniors are untrained, unguided missiles. than everybody thinks it is. If you are
You get better leverage because people not supervising your work it doesn’t
would feel more confident to delegate to matter which market segment you go
trained people. So you get lower write- after.
offs, better leverage, higher rates. Reading Clients’ Trade Press
There are two lists on the screen now. A Take another topic: You go to the
handwritten list of benefits: higher typical firm and say, “How many

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The Problem of Standards

partners in this firm could put hand on You can probably guess the emotions.
heart and say they regularly read every The first emotion is, “Somebody has
issue of their main client’s trade made a mistake but I am not going to tell
magazine?” Not all your clients, just them.” And the second emotion is, “I
your main client. can’t wait to tell Mum.”
Anybody want to guess in a typical firm, But then the third emotion kicks in: “Oh
whether it is in Lithuania or New my goodness, this is a life changing
Zealand or the United States, what choice. Am I willing to give up a firm
percentage of partners could honestly that has only the basic standards in place
answer, “Yes,” to that? (Audience: 3 and voluntarily join the Olympic team,
percent.) where I know from the start that it is run
The percentage is in single digits, isn’t on intolerant principles because it’s
it? The lesson is prebiblical that clients actually trying to win Olympic gold (and
the consequence of that is the standards
like us to show an interest in their
business. Do you act as if you care about are real)?” And the questions to ask are,
your clients? In the typical firm the “Which game would you rather play?”
answer is, “No, our partners don’t like and “Which team would you rather
clients. They love the work; they hate belong to?”
clients.” You can see attractions on both sides. I
can stay with my tolerant institution
What Team Do You Want to Belong
where it’s impossible to not meet the
to?
standards. In fact, it’s impossible to get
Let me give you a piece of personal fired because we don’t believe in that;
autobiography that illustrates the point. we believe in keeping the family
My first teaching job was at a good, together. So no matter what you do, as
solid regional university. They were long as it doesn’t actually involve
really nice people and as a result it was indecency with a child, you are one of
friendly, supportive and collegial. But us. Other than that, no other standards
part of the consequence of that niceness are enforced—though they are preached.
is that it was a very tolerant place. If, as We preach client service, we preach
an individual, you wanted to go for supervision, we preach collaboration, but
national fame, then people would be which ones do we actually enforce?
friendly and supportive and collegial and None of them—because different people
help you do what it takes. have different strengths and therefore we
try to understand each other. It’s a
But if you didn’t want to do that, if what wonderful environment. You can do
you wanted to do was teach introductory what you want and as long as you cover
economics for the seventeenth year in a the basics you are left alone. You do
row that was okay, too. They said, “Oh, things your way and nobody ever
that’s covering your billable hour target; bothers you.
that’s acceptable.”
The question now is, why would I join
Then the tragedy in my life occurs. The the Olympic team where you’ve got to
phone rings and a voice says, “How show up for practice and if you don’t
would you like to be a professor at you are off the team, and you’ve got to
Harvard Business School?” accomplish certain standards and if you

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The Problem of Standards

don’t then you’re out? It is not that the have no quality standards. Most firms do
Olympic team is unfriendly. They say, not. Seriously, you know, most firms
“Well, where else do you want to work? don’t have any requirement of energy. If
Tell us what you want to do. Take your one of your partners hasn’t written an
time. We will help you with whatever article in ten years you don’t care. You
you want to do, but we are actually don’t actually have any expectations of
serious and our standards are real. If you each other but you still shine. Your
can’t or won’t meet them, you cannot be expectation of each other is that you are
a member of this team.” not completely messing up. There is
nothing wrong with that. That’s okay.
The question is, why would people want
Feel good about it—just stop coming to
to choose a team with high standards,
conferences. Stop listening to
strictly enforced? You can argue that it’s
consultants.
neurotic behavior. That’s what my friend
at the regional university thinks of me. Your Lives Are Miserable
He says, “David, why are you writing I can usually get a firm’s partnership to
another book? The last book’s selling vote for the “going for the gold” by
well; the phone’s ringing.” And I am proving to the partners that their lives
saying, “Look, I am the kid from the are miserable. I say to people, “Please be
streets of London. I’ve got a little bit of honest with me, or at least semihonest. I
recognition, which I never expected. I want you to tell me about your work and
want to see how far I can go if I try.” divide it into three categories. Category
And my friend says, “David, that is one: Is this work where you say, “God, I
insecure, paranoid, schizophrenic love this. The hairs on the back of my
behavior. You’re doing well. Why don’t neck stand up every time I do a
you enjoy it?” And I say, “But I want to transaction like this”? It’s not a strategic
see how far I can go.”
question or a moral question—it’s a taste
So here’s the choice that you have to question. “I just love this stuff” and
make: Which firm would you rather you’re allowed to love what you love.
belong to—one where they are going for You’re allowed to love tax; you’re
the gold, seriously, or one where the allowed to love wills. The only question
slogan is, “Let’s not mess up. As long as is, are you doing stuff that you love?
it’s not broken we don’t have to change The middle category is, “I don’t love it; I
anything”? There’s nothing morally can tolerate it.” That’s why they call it
wrong with either side. But it is the work. My passion I save for my family.
height of idiocy to keep running your This is work, and I’m a responsible,
firm, pretending you are going for the conscientious, dutiful citizen, so yeah, I
gold when you know you don’t have the do what I’m supposed to do. I’m a good
discipline to do it. If you know you don’t player, but do I have any positive charge
have the discipline, stop making New from this? No, this is what I do for a
Year’s resolutions. Enjoy the choice you living. I’m just waiting for 65 to come.
have made. My enjoyment comes from things that
The only sin, I believe, is hypocrisy. The are outside the firm (if the law firm ever
only sin is lying to yourself and gives me any time to enjoy it).
pretending you are going to do And the last category is this: “I cannot
something when you are not. It’s okay to even tolerate it. This portion of my work

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The Problem of Standards

here is junk. How the hell did I end up do the proper thing, but I have no
getting stuck doing this?” If I asked the positive energy to add it.
partners (and if they were honest with And the last category as you can see is,
themselves and with me) to give me “I can’t even tolerate them.” You know,
three numbers that add up to a hundred it’s not a strategic question. It’s not a
that describe their lives, what do you moral question. There’s always
think the average is for the typical mismatch. I’m sorry, but by my taste
established firm? What percentage of these clients are idiots in boring
partners can say, “God, I love this”? businesses. Possible? Yes.
What percentage says, “I can tolerate
this”? And what percentage says, “You Give me your best guess; again, without
know, this is crap”? Anybody got a exaggeration. Don’t be negative; don’t
reasonable guess? Don’t be stampeded be optimistic. Best guess, what does the
up or down. Give me a reasonable guess. typical lawyer feel about his or her
(Audience: 10, 80, 10.) Is that good clients? What are the three numbers that
enough for discussion for everybody? the typical professional would give me?
Can I use that for discussion? (Audience: 5, 85, 10.) Boy, you have
really added an inspirational note to the
Now the question is, having told me proceedings. Good enough for
what you think about your work, please
discussion?
tell me what you think about your
clients. And I’m going to make this a Just look at those numbers, and if those
hard test. Category one is, “I like these guesses are correct, tell me what the
people.” I don’t have to defend it or implications of those guesses are. What
justify it to anybody—I’m allowed to flows from the fact that the average
like who I like and dislike who I dislike. professional in the average successful
I happen to like these kinds of people. firm loves what he or she is doing about
And notice, this is a tough test. I’m half a day a week and likes the people
doubling a few things up; not only do I they are doing it for about a quarter of a
tend to like the people who are my day a week? Tell me what the
clients, but the sector they are in implications of that are. (Audience: They
fascinates me. I read their trade won’t be doing their best.) They’ll be
magazines for fun. Notice again, it’s a good citizens, they’ll be conscientious
taste question; you don’t have to justify and they’ll be at half energy—and that
it to anybody. I happen to like this means what? Go to the next level for
sector—for my own idiotic reasons. But that.
the key point is, is it a company or a (Audience: They are never going to
government sector that energizes your achieve excellence.) Is that fair? They’ll
own passions? do okay. They’ll have the famous slogan
The middle category again is, “I can that every firm should put on its website,
tolerate them; they’re clients.” You “We are no worse than anybody else.”
know, throw engagements, throw That’s the main strategic plan of
money, bend over, let me get to work. most firms. What else is an implication
I’m a good citizen, I will do all the right if those numbers are true, if they are
things, I’ll be responsible, but do I have true?C

any care that this is this client versus any


other? No. I’m responsible. I’m going to

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The Problem of Standards

(Audience: Turnover.) We’re going to percent majority vote to go for the gold
get a lot of turnover because it’s not an —because I can prove to the partners
inspirational environment. Well, what that they are very, very bored; that they
you’re saying is, the partners are telling are living in a world they can’t stand;
us that they are basically bored to tears. that they are sick of having no standards;
And you want them to get excited about and all it’s about is billable hours. And
marketing and growing to bring in even how about we live in a place that’s got
more junk work that they don’t care high standards and we help each other
about! You guys are making the money. achieve the standards?
Most of the average firms pay good I had a Dutch firm (I won’t tell you
money. The issue is not that you’re not where in the country) but it was a
making the money. The issue is that consulting firm and we went through this
you’ve got an entire firm filled with and I said, “Now, okay, we’re going to
incredibly intelligent, incredibly have a vote. Which firm would you like
qualified people who have miserable to belong to?” And there were about 16
lives. partners in this firm and we did a scale
If those were my numbers I would slit of one to five, with one being, “Let’s not
my wrists. I’ll tell you why. Because I mess up,” and five being, “Let’s set and
am not going to reach my tombstone enforce high standards.” Half the
with it saying, “He did tolerable work partners voted for one, and half voted for
for tolerable people because they paid five. Now you’re all advisors in one way
him.” I’m not that much of a whore. or another. Give me your business
These numbers say that the basic advice. What would you advise that firm
operational principle is, “Pay me and I’ll at this point? (Audience: Split up.)
do it but don’t expect me to care. I’ll See how easy the answer is when you
fake it if you want me to.” That’s the
are not personally involved? There is
dictionary definition of prostitution.
only one answer that is not about you,
I hope I’m making clear that this is not which is that the people on the left are
an anticommercial argument. You not morally wrong. If they want to serve
cannot pull away from the pack as a firm their local clients and just socialize
if this is how you view your work and locally, and the other people on the right
your clients. The only way to pull away want to be the hyperactive egomaniacs
from the pack is to do stuff that turns and write an article a month and get
you on for people you can care about. famous—you can’t argue about who is
Because if you are doing stuff that morally correct. All you can say is [that]
excites you for people you can care these people should not be partners with
about, you will get rehired, you will get each other. They want different things.
the premium things, you will get the It’s like a bad marriage. You don’t have
referrals. You can go back to the to be unkind to your spouse but
dictionary definition of what it is to be a sometimes you just marry the wrong
professional, which is putting the client’s person. The best thing you can do is say,
interests first, caring about your clients. “We made a mistake. We don’t actually
want the same things. We need to be as
Deciding on the Level of Commitment
nice to each other as we can and separate
I will report to you that I can get eight as fast as possible, so we can each get on
out of ten professional firms to get an 85 with what we want in our lives.”

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The Problem of Standards

Now, my point is, you all saw the American, it would be the usual reasons:
answer when it was about somebody divorce, alcoholism, cocaine, manic
else. I’m going to say that this is depression, the kids have been arrested
your firm. You’ve got partners who want again. You know that things happen, and
to really go for excellence and are at some stage in your life you’re
prepared to accept the disciplines to do probably a loser. If you’re lucky you
it, and you’ve got partners who just deal with it and get back; if you’re
don’t want to accept those disciplines. unlucky you get stuck.
And the only right solution is to split the Now the cruisers are a very important
firm. You cannot run a firm if its category. You can see by definition that
partners fundamentally want different the cruisers are not losers. The cruisers
things, and you don’t have enough guts are your good, solid citizen partners.
to make that happen. Whenever there’s They come in each week and they make
an issue like that, you say, “Well, let’s the sausages. They come in next month
not address that issue. Let’s bring in the and they make the sausages. They come
IT people to develop something new.” in next year and they make the sausages.
Dynamos, Cruisers and Losers And everybody knows those sausages
I’ve talked about supervision. I’ve talked are fabulous. You’ve got a sausage job,
about quality. I’ve talked about liking call Henk, because Henk is fabulous at
the client. You can reject all of those and sausages. The quality is there. The hard
maybe it’s something else. I’ll just give work is there. But Henk isn’t actually
you one more standard: the level of going anywhere. All he’s done for the
energy and ambition. I talk about last seven years is make sausages. In
meeting three kinds of partners— other words, he’s acting like he’s got a
job, but if you said to Henk, “Where do
dynamos, cruisers and losers. Please
allow me to define these my way. It’s you want to go next, Henk, with your
not about business getters versus those career? What kind of transactions do you
want to be doing three years from now?”
who only do billable hours—that’s not
he’d say “sausages.” Henk has no
the definition.
particular desire to advance his
A dynamo is somebody who is always professional career. So if you accept my
acting like they have a career, but in definition, a cruiser is a good solid
addition to taking care of this year, every citizen, meeting every standard you’ve
year they are doing something to bring got, but acting as if he or she has a job,
about their personal future. Am I making not a career.
sense? Every year they’re always saying,
Another guess from you, please. In the
“Where do I want to go next and what
typical firm—don’t get optimistic on me,
do I do today to make that happen?” Am
don’t get pessimistic, give me your best
I making sense on what a dynamo is?
guess—what percentage of all the
Somebody who is acting as if he or she
partners might fall into those three
was in the middle of a career.
categories? (Audience: 15, 75, 10.) If
Losers—this, by the way, is not about that guess is correct, tell me what it
different people—this is all of us at means. If that’s the makeup of the
different stages in our lives. My theory is typical partnership in the typical firm,
that you don’t get through life without what flows from that fact? That only 10
being a loser sometime. If you were percent of the partners are trying to get

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The Problem of Standards

somewhere. Seventy-five percent are What it Really Takes


absolutely good solid citizens, let me say I’ll give you one more, very silly
that quite clearly now. What flows from example. I don’t have children but I’ve
that mixture if that’s accurate? got lots of nephews and nieces. They
(Audience: They’re not going know I used to be a university professor
anywhere.) So just don’t waste your time and they say, “Uncle David, how do I do
with strategic planning. Just don’t well at university?” And my answer is
bother. Leave them alone because always, “Go to class; do the homework.”
strategic planning in that environment is And they say, “No, what’s the secret?”
like trying to figure out which way “Go to class; do the homework.” “But
should we point the thundering herd there are these parties, Uncle David.”
when the herd isn’t thundering. The Well, if you want to be a party animal
issue is not direction or strategy. The and work at Burger King for the rest of
issue is, do they or do they not have the your life, do it. You know, I’m not going
appetite to go somewhere? You can get to tell you what to do with your life, but
by. I know 75 percent of partners who if you want me to give you dispensation
have never wanted to go anywhere for to say you can get the benefits without
the last 30 years. And they’re on not a doing the work, sorry, I won’t play that
bad income. But if you’ve got a game. If you want to get a benefit in life,
partnership made up of three quarters you’ve got to do the work.
who don’t want to go anywhere then
You keep getting seduced by consultants
don’t come to conferences on
like me who come in and develop the
technology and strategy and marketing
next strategic slogan or the next
and branding because these people are
branding or the next positioning because
not interested.
you think that as long as you just
We come to the choice again. The choice announce it you’ll get the benefit. You
is in which gang you want to belong to. get no benefit by announcing anything.
The tolerant gang says, “If you want to You get the benefit of that which you
cruise, that’s okay. Not only is it actually do. I’m sorry that it’s so
acceptable, but it’s actually the intellectually trivial but it’s a lesson
overwhelming norm,” just like your law most of you still need to learn. You get
firms. The overwhelming norm in this the benefit of that which you actually do,
law firm is that everybody cruises. And not that which you encourage. Just don’t
if that’s what you like, stay with it, God pretend. You pretend to have a
bless. Or you could say, “How would commitment to client service, you
you like to join a law firm where the rule pretend to have a commitment to
is that you’ve got to be learning and supervision and you pretend that your
growing or otherwise you’re not meeting partners are energetic. Your partners are
your requirements as a partner? It’s not energetic—they’re asleep. And
something we have a right to expect of pretending gets you nothing.
each other, that we are all continually The way you make money in business is
learning and growing.” Notice there’s an not to be good at managing the money.
option here. The choice is whether you The way you get money in business is
want that standard in your partnership that you decide what you want to
agreement. compete on, whether it’s quick delivery

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The Problem of Standards

at McDonald’s or fabulous cooking for All I’m trying to say is (and I hope this
some cuisine connoisseur or whatever it is clear) that this is what a strategy is for.
is. You don’t have to be McDonald’s It’s something we all agree to do and are
and you don’t have to be the best prepared to be held accountable for. But
restaurant in town, but you had better notice, that last clause must be there. If I
decide which you want to be, and once agree to do it, but don’t hold myself
you’ve decided which it is you want to accountable, that is not a strategy. This
be, the key to making the money is is not a moral point, just a simple fact of
enforcing the standards appropriate for life. If people aren’t willing to be
that choice. The thing that makes the accountable for it, it’s not going to get
money is not the money. The money is done well enough.
an outcome of how high your standards That’s a recommendation I suggest you
are. He or she who has the highest do with your firm. Take your mission
standards wins. statement off the website, turn it into a
You get the partners together and say, questionnaire and say, “How well are we
“What standards do we want to live by? living up to this mission?” Now that is
Should we all be expected to be my point. You’ve probably got a great
dynamos? Should we all be expected to mission—I do not recommend changing
learn and grow? Do we think we’re it—I’m just saying there is no point
prepared to accept accountability for having a mission if you never live up to
supervising the work? Should we be it.
accountable for our clients’ So the real next step for you is to put in
satisfaction?” You do not say, “Is it a place something that keeps you honest
good idea?” The question is, are we and is sent around every quarter saying
willing to be accountable? Quite simply, what all of us think about how well
what are the rights and responsibilities of we’re living up to our mission statement
a partner? What do you have to do to be (and is sent to your clients, too). And
a member of this firm? That’s all I’m again, that’s not a moral point. If you
saying you should debate. And at the really want to live up to it, make it as
moment all it is, is be billable and don’t embarrassing as possible not to do it. If
get us sued. you really want to make something
Notice the topic applies no matter what happen, the best way is public
the issue is we’re talking about— exposure—you’ll do it.
collaboration, client service, Making yourself a promise that you’ll
supervision—be energetic. Your lose weight this month doesn’t do
problem is not those topics. Your anything compared to turning to your
problem is the inability to pass a law, the spouse and saying, “I give you
inability to establish a standard that permission to withdraw marital favors if
you’re actually willing to enforce. That’s I don’t do it.” You know, if you really
the problem. It’s not what the standard want to make something happen for
speaks to. It’s the fact of a standard, yourself, the way to keep yourself honest
because you’ve bought into this is design an embarrassment mechanism
medieval notion of a partnership, which by making the commitment even more
is that a partnership is a place of no public.
standards and the partner can do what he
or she wants to do.

Copyright 2005 David H. Maister Page 10 of 10 www.davidmaister.com


The Problem of Standards

The Research Results 4. Management gets the best work out


of everybody in the office.
Let me tell you about the results reported
in my latest book, Practice What You 5. Around here you are required, not
Preach. I went to one of the global just encouraged, to learn and develop
marketing conglomerates and said, “Will new skills.
you give permission for me to survey 6. We invest a significant amount of
everybody, in 139 offices around the time in things that will pay off in the
world, in 29 different businesses, and future.
will you also give me the financial
results for every one of those offices for 7. People within our office always
the previous three years?” Some of these treat others with respect.
companies are high leverage, some of 8. The quality of supervision on client
them are very low leverage, some of projects is uniformly high.
them work for the CEO and some of
them are just dealing with purchasing 9. The quality of the professionals in
officers—there’s a huge mixture of the our office is as high as can be expected.
types of businesses they’re in. Look at number 7. If the people in the
I threw all the answers to 74 questions firm, in the office, agree with the
from 5,500 people in 139 offices into the statement, “People treat each other with
computer. (I asked them, basically, about respect around here,” then I can prove
the culture of their office.) Then, as I you will make more money than if the
told you, I got the financial results of the people in the office don’t agree with
office for a three-year period. So I threw that. It plays to a hell of a lot of values
all the financial results in, and I said, that many of us share.
“Dear, beloved computer: I’ll stay out of Here’s the test. In order to get that
it. Don’t let me interject any of my benefit, you must not only advocate that
biases. Are there some things, some standard—the message of the data is you
attitudes of people in the business, that make the money when you enforce that
are more predictive of profits than standard. What it’s saying is [that] if
others?” you’ve got a partner who does not treat
It’s pretty simple technology and the others with respect you must counsel
computer said, “Yes!” Nine factors that partner, and if the counseling
account for more than 50 percent of all doesn’t work you must fire that partner.
profit differences: We do not accept as a partner somebody
who does not treat others with respect. If
1. Client satisfaction is a top priority you’re prepared to go that far, you’ll
at our company. make more money.
2. We have no room for those who Again, look at the others; number 2 is
put their personal agenda ahead of the teamwork. The news is the team players
interests of the clients or the office. are winning. It doesn’t say, “We are
3. Those who contribute the most to team players around here.” I can prove
the overall success of the office are the you will not make more money if people
most highly rewarded. agree, “We are sort of, kind of, team
players.” I can prove you will make
more money if people in your firm say,

Copyright 2005 David H. Maister Page 11 of 11 www.davidmaister.com


The Problem of Standards

“We have no room for any individualist Now again, please notice—these are not
who puts him or herself ahead of the my values. I did not choose these. This is
team.” If people in your room say that’s purely numbers. I said to the computer,
us, I can prove you’ll make more money. “What best is correlated with
Teamwork wins. And again, that’s not a profit/performance?” and the answers
new idea. This is not meant to be an are these things. Now again, I must
intellectual contribution that I’m confess I like it. It makes sense to me;
making. This is boring old rubbish. it’s basics. But I didn’t choose them.
“Around here you are required, not just In other words, we have evidence that
encouraged, to learn new skills.” Now you win if you enforce standards on
again, I’m not a moralist; I’m purely basic things. It’s not about pay. We
reporting data. If the people in your firm should all be in this together, all
say, “Yeah, that’s us. In our firm you are committed to each other, and what
required, not just encouraged, to learn makes us in this together is that we
new skills,” then I can prove with hard enforce our common standards.
data that you will make more money Personally, I believe that’s how you
because people who are always adding make the most money. Unfortunately,
to their skills make more money. This is law firms don’t want to manage that
not hard, intellectual stuff. much. The idea of actually having to
You can see the rest of the list. Care manage partners makes them break out
about your clients, act like team players, in spots. So they stay tolerant and often
supervise the work—do you see that one introduce a differential reward system.
coming in at number 8 there? You make “We’ll still be tolerant. We’ll just pay
more money if the people in your office the higher achievers more and the low
achievers less and leave everybody
say, “The quality of supervision is high
alone.” And personally, I’m not sure
around here.” Again, my whole point
that’s as good a solution because you
and my whole message is this is
heard me say the issue is not
prebiblical. This was the work manual
compensation; the issue is standards.
for the pyramids. If you want to know
how to make a lot of money, stop
looking for the latest consultant’s
intellectual contribution. It’s not the
latest technology, but technology will
help you do all of these, just like EDS.
Let’s have a web-based client feedback
system so that when the client logs
feedback, every partner and junior staff
member in our firm can see what the
clients think of every partner. Now, all
I’m saying is I’m not moralist. I’m not
saying that’s a morally good idea. I’m David Maister is the author of Managing
just saying [that] the quality of client the Professional Service Firm (1993),
service will go up if you do that. The True Professionalism (1997), The
technology will offer you new ways to Trusted Advisor (2000) (coauthor),
enforce old ideas, but you’ve got to Practice What You Preach (2001) and
really believe the old ideas first. First Among Equals (2002) (coauthor.)

Copyright 2005 David H. Maister Page 12 of 12 www.davidmaister.com


The Problem of Standards

Prior to launching his (solo but global)


consulting practice in 1985, he served as
a professor at the Harvard Business
School.

TEL: 1-617-262-5968
E-MAIL: david@davidmaister.com
HTU UTH

WEBSITE: www.davidmaister.com
HTU UTH

You can automatically receive David’s


future articles via e-mail (at no cost) by
registering on his web site
( www.davidmaister.com ).
HTU UTH

Copyright 2005 David H. Maister Page 13 of 13 www.davidmaister.com

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