Of the firms we work with, all those with a strong track record of growth have a business development bonus. In fact, the firms that pay the most for new business tend to have the strongest growth. Conversely, all the firms that struggle with growth tend not to pay for it. Somewhere in the middle there are plenty of mixed results—firms that don’t pay but do OK and firms that pay and do OK.
It’s a strong case for paying for growth. Still, the same can be said about paying boxers. The fighter who’s paid more (someone on the “A side,” as it’s called) tends to win a lot more, but that’s also because he or she is simply the one who has a better track record, has more titles and is favored to win. The money reflects the result, doesn’t cause it. I strongly suspect that firms growing faster tend to emphasize growth more, and as a result are likely to also offer more training, do more marketing, focus their management attention more on growth and also reinforce the effort with bonuses.
New business bonuses are not a magic pill that will energize growth in a firm, but they are like a good cup of coffee—it will perk you up, especially if you are a committed coffee drinker already.
Philip Palaveev is the CEO of the Ensemble Practice LLC. He’s an industry consultant, author of the books G2: Building the Next Generation and The Ensemble Practice and the lead faculty member for the G2 Institute.