wsg latin american regional meeting

WSG LATIN AMERICAN REGIONAL MEETING
Challenging Times:
Growth and the New Structure of the Firms
Moderator:
Ramón Ignacio Moyano
Partner, Estudio Beccar Varela
Panelists:
Fernando C. Alonso
Partner, Hunton & Williams LLP
Pablo Peschiera
Managing Partner, Define Consultoría S.A.
Jose E. Quiñones
Managing Partner, Quiñones, Ibargüen & Luján & Mata, S.C.
Ronaldo C. Veirano
Founding Partner, Veirano Advogados
Path to Partnership
Hunton & Williams
Equity
Partner
(Levels)
Equity
Partner
Non-Equity Partner
Counsel
(Indefinite duration/
contract )
Counsel
Other firm
Associates – 8 to 9 years of practice
Associate Retention
Jose E. Quinones
Guatemala
SIMPLIFIED STRUCTURE
Team Leader (Partner)
Corporate, M&A, Tax &
Financing Structures
Associate
Assistant
Team Leader (Partner)
Corporate &
Financing
Associate
Assistant
Team Leader (Partner)
Corporate &
Electricity
Associate
Assistant
Assistant
Associate
Assistant
Associate
Assistant
Assistant
Team Leader (Partner)
Arbitration &
Litigation
Associate
Associate
Assistant
Team Leader (Partner)
Labour Law
Assistant
Assistant
Associate
Assistant
Assistant
Associate
Assistant
Assistant
Associate
Assistant
ASSOCIATE ISSUES
Correct allocation of business risk
 Significance of Corporate Culture
 Nudge with compensation packages,
practice areas, specialty clients, flexible
schedules
 Flexible compensation structures as a
mean for customization of individual
situations
 Managing apparent hurdles like Gender
Polarization

Overall trends in evaluation of
personal success
Direct Economic Comparisons Vs.
Overall happiness
 Research in Hapiness
 New approaches to “Well-being“

PARTNERSHIP CONSIDERATIONS
Win / Lose decision process vs. career
alternatives
 Adapting to different requirements,
involves revisiting the business model?
 Stripping of Partnership Benefits &
Obligations

24/04/2012
Challenging Times: Growth and the New
Structure of the Firms
Define’s Case
Agenda
Our Business
Ownership Structure
Organization structure
Distribution of Benefits
Our Business
Six Lines of
Business
Management Consulting
Define
Consultoría
1997
Financial Advisory
Economic Research
Define is a group of three
professional services
companies
Define
Servicios
2010
Dirige
2000
Accounting and Administration Services
Supervision and Control Services
Company and Asset Liquidation
13
Ownership Structure
Transition
Process
Partners were admitted early on
Some partners were not up to the challenge
The target is to
Share risks and rewards across business lines
Motivate cross selling and synergies
The founder needs to
make room for younger
partners
Founder
Define
Holding
Partners
Define
Consultoría
Define
Servicios
Dirige
Partners
Define
Consultoría
Transition
Define
Servicios
Dirige
14
Organization Structure
Structure and
Career Paths
Partners
Board
Retaining young talent
Continuos learning
Compensation
Professional growth
Flexibility
Retirement:
no policy yet
The founder will be
the first to retire
Managing
Director
Consulting
Director
Accounting
Director
Supervision
Director
Liquidation
Director
Project
Manager
CPA
Project
Supervisor
Assistants
Consultant
Sr. & Jr.
Accounting
Assistant
Analyst
Analyst
15
Distribution of Benefits
Criteria for
Distribution of
Benefits
Short term motivation
Alignment of long term interests
Potential for developing the business
The challenge is to
balance short term
motivation with long term
interests
Commercial drive to build client base
Innovation and service development
16
Distribution of Benefits
Short Term
Motivation
Salary
Originating Bonus
Cash Bonuses
The challenge is to
balance short term
motivation with long term
interests
5 – 10% of fees
Execution Bonus
We calculate the contribution margin for each project
Part of this margin is paid in cash and shared by the Project
Manager with the project team members
We keep a “current account “ of the managers’ projects
Bonuses are paid monthly or at the end of the project
17
Distribution of Benefits
Alignment of
Long Term
Interests
Compensation in
stock
We expect associates
and partners to “bet” on
the growth of the
company and long term
value generation
The founder gave stock to partners / associates based
on
Individual performance and contribution to growth
The employee’s long term potential of for developing the
business
We are currently implementing a profit sharing scheme
by which
The Execution Bonus paid in cash is caped at a % of the
project income
The excess over the cap is paid in stock to the manager /
associate at the end of the year
18
HOJE
GOVERNANÇA CORPORATIVA
PLENÁRIA DE SÓCIOS
Elege e destitui sócios de capital; Elege Conselho de
Administração; Aprova alterações na estrutura organizacional;
Aprova contas semestralmente.
CONSELHO DE ADMINISTRAÇÃO
Aprova o plano estratégico e o orçamento semestral; escolhe o CEO e
aprova os demais gestores; avalia a performance dos gestores;
interage com o Conselho Consultivo e recomenda candidatos a
sociedade de capital.
COMITÊ GESTOR
Elabora e executa o plano estratégico e o orçamento; coordena a
avaliação dos advogados; define a distribuição de bônus; foca na
rentabilidade e produtividade através do aumento de receita e
redução de custos.
CONSELHO CONSULTIVO
Avalia e aconselha sobre as diretrizes do negócio. Os
conselheiros não podem ser clientes do Veirano.
SISTEMA ORGANIZACIONAL
Sócio Gestor
Finanças
Marketing
Práticas
Jurídicas
RH e
Administração
Tecnologia da
Informação
Sócio Gestor e de Finanças | Pedro Freitas
Gestor de Marketing | Otavio Carneiro
Gestor de Práticas Jurídicas | Ricardo Veirano
Gestora de RH e Adm | Kristie Vasconcelos
Gestora de TI | Tânia Maria Sales
PRÁTICAS JURÍDICAS
Video: How to Make
Work – Life Balance Work