Change in organisations with a partner structure

Change in organisations with a partner structure: Why traditional change approaches don’t always work (and what does)

Lawyers, accountants, consultants. They differ in many ways but share one ambition: supporting clients as effectively as possible in achieving their goals. But the very qualities that make them strong service providers often create extra challenges when facing internal changes.

The board of a large accountancy firm presents its new strategy to the partners. The ambition is: shifting from being a service provider to becoming a proactive strategic partner. The partners agree to the strategy. But months later, little has changed in practice. Employees have heard something about a new strategy, but can’t really say what it involves. Most partners remain focused on their day-to-day work and are not working on the changes required to bring the strategy to life. These changes are not featured in the annual plans either. As a result, the strategy remains abstract and far away from reality. More is needed to get professionals in this kind of organisation moving.

As this example shows, change can be challenging in professional services. Why? In many such organisations, the partner structure makes change difficult. Daily management lies with a board appointed by the partners but the partners themselves are the owners and ultimately have the final say. And the independence (or should we say stubbornness) and outward focus of the professionals working here can also be obstacles. Both elements – the professionals and the structure – are key to the organisation’s success. But what happens when the organisation itself faces major change? How do you ensure the internal transformation gets enough attention? And who actually leads the change process: the board or the partners? In this piece, we share our insights into organisational change in professional services.

Change in the world of professional services

The professional services sector is undergoing major changes. Technology – particularly AI – is turning the way people work upside-down. Routine tasks are being automated, and the role of advisors is shifting to a more strategic level. Clients expect more than just technical expertise; they want proactive sparring partners who not only address their immediate questions but also understand the broader context. What’s happening in the market? What interests are at play? What larger challenges lie behind the client’s question? Developing such a broad perspective requires a different mindset, different skills and different behaviours from professionals. At the same time, the complexity of regulation is increasing. New demands in the areas of compliance, sustainability and transparency affect how firms operate. Smaller firms often struggle to absorb rising operational costs, leading to more mergers and acquisitions.

These developments have a huge impact on how professionals practise their profession. Organisations used to advising others in challenging times are now being asked to look inward and become agile themselves.

A balance between direction and room is crucial

But how do you do that, get these professionals moving? After all, we are talking about highly autonomous, critical individuals with strong convictions about their profession. You can’t simply tell them to change.

This calls for a clear, shared direction: a story about the why, how and what of the change. What does the strategy mean for our team, our clients, and the way we work? And why are we pursuing this direction? And what is the reason we are making this move in the first place?

It also requires room for everyone in the organisation to play an active role in realising the change. The role of leadership is crucial here. Leaders must engage with their people, to build on a shared direction that everyone can and wants to contribute to. They need to encourage and support their people to take action, grow and learn new behaviours.

Who leads the change?

Leadership is, therefore, essential in any change. But how does that, for example, work in an accountancy or law firm? In organisations with a partner structure, the dynamics are complex. The formal management structure does not always align with the actual power dynamics. Often, it is the partner group that has the final say, that is where the most important decisions are made. And professionals first and foremost look to the partners for direction and role-modelling. The board’s mandate is more limited than in a ‘typical’ organisation. This also limits the authority and leadership role the board can play. They can initiate, support and advocate for change – but they cannot push it through without backing from the partners.

That is why it is so important that the partners feel ownership of the change process. They need to do more than sign off on plans. They also need to take on a leadership role in translating change into daily practice. Our experience shows that this is a real challenge. Partners tend to be deeply focused on their daily work and are not exactly queuing up to take the lead in an internal change. Their incentives are often mainly tied to revenue and client work.

So how do you entice them to take on a leadership role anyway?

Horizontal leadership is the solution

The answer is not just driving change top-down, but adopting a bottom-up and a ‘horizontal’ approach. Start with the group of employees and partners who want to pioneer the change. Here, the necessary leadership doesn’t come from above but from the side, from peers with authority. What does that look like?

Hereby the most important features of horizontal leadership:

1. Change plans and major steps in implementation are approved by the partner group. This goes beyond the WHAT. It also includes the broad lines of the HOW, and the division of roles in bringing about the change.
2. The movement is driven horizontally, not just top-down. The board and management can provide direction and put the change on the agenda within the partner group and the wider organisation. But real change only happens when partners themselves start to strengthen the movement from within. They make a difference by leading by example, keeping the conversation going, and inspiring and involving their peers.
3. Realising change starts with a broad group of people who are willing to change – both partners and employees. Not through imposed plans, but by giving this group of early adopters the room, time and resources to experiment with new behaviours and initiatives that support the change. Their actions create a visible impact in daily practice. This way, the change grows step by step, until it reaches a tipping point where it cannot be ignored. That is when a new social norm emerges, pulling along colleagues – partners and employees – who previously stayed on the sidelines.
4. This group is supported in their movement by ‘enablers’: people, resources and conditions that ensure those who want to make the shift can adopt new behaviours and ways of working. Think of a tailored development programme for professionals, aimed at strengthening both strategic insight and skills in collaboration and client interaction. Also ensure access to systems and data, so that new ways of working are practically feasible. And offer inspiration by sharing good examples – within the organisation and beyond – so professionals can learn from what works elsewhere, and see that the effort is worthwhile.
5. As momentum builds and the social norm grows stronger, the partner group can agree on more direction and steering around the change. Then, the change no longer relies solely on enthusiasm and voluntary effort, but it becomes embedded in planning and performance management. For example, by including change objectives in the annual plans for teams and partners. That way, the strategic shift becomes visible in both choices and results.
6. It is then crucial to actively track the progress: where is the change gaining momentum, and where is it getting stuck? These insights should be discussed regularly in the partner group, to keep ownership and engagement high. At the same time, the rest of the organisation is also involved in this progress, through ongoing and visible change communication. That not only creates peer pressure but also turns the change into a shared journey. And it is precisely that sense of collective ownership that helps the movement spread across the whole organisation.

A final thought

Horizontal leadership might sound a bit odd, but in professional communities, it is actually quite normal. Authority is not necessarily tied to your spot in the hierarchy, but to your position and experience in the profession. That means professional ‘thought leaders’ (whether employees or partners) can set progress in motion. But that does call for a smart approach. All important steps are anchored in clear agreements with the partner group. Still, the movement starts small, with those leaders who want to take the lead and the professionals who are ready to make the shift. Because in organisations full of strong individuals, the power does not lie in top-down control, but in momentum that grows from within.

Want to know more?

Curious to learn more about change in organisations and the role of direction, room and enablers? Take a look at the book Change Made Simple. And if you’d like to discuss change in your organisation, Involvers Hilde and Celine would be happy to think along with you!