From competition to collaboration: Why incentives matter more than intentions

Jan Thornbury and Moray McLaren explore this issue as part of a broader series on culture and performance

Many law firms invest significant time defining values around collaboration, teamwork, and shared ownership. Yet those same firms often struggle to see the behaviours they want emerge in practice. The reason is rarely a lack of intent. It is structural.

The partnership contradiction

From the earliest stages of a legal career, competition is designed in. The up-or-out associate model, utilisation targets, chargeable hours, and informal patronage systems all reinforce individual performance and internal rivalry. Associates learn quickly that visibility, favour, and personal metrics matter.

When those individuals reach a partnership, the expectations often change abruptly. Firms now ask them to share work, collaborate across practices, and prioritise collective outcomes. The transition is not automatic.

In practice, we consistently see that the most financially secure, high-performing partners are the most generous with work and credit. Those who feel exposed or uncertain tend to behave more defensively. These behaviours are highly visible and contagious. Over time, people respond not to stated values, but to what they see rewarded and tolerated.

Accountability and collaboration must be designed together

This is not an argument against individual accountability. Clear targets and performance measures are essential. The issue is balance.

When systems over-emphasise individual metrics without counterweights, they unintentionally undermine teamwork. When work allocation and recognition rely on informal sponsorship, competition is reinforced, and perceived fairness erodes.

The question is not whether to measure individual contribution, but whether the overall system supports the behaviours the firm says it wants.

Culture follows incentives

Culture is shaped by three interrelated elements:

• Beliefs – what people think matters

• Behaviours – what people actually do

• Artifacts – the systems, incentives, processes, and symbols that reinforce behaviour

  
  

Incentives sit firmly in the third category. They are powerful, visible, and immediate. If incentives pull in a different direction from stated values, culture change will stall.

Recognition systems illustrate this clearly. Firms often celebrate new client “wins” while undervaluing long-standing client stewardship and repeat work. Over time, people optimise for what is recognised, even if it is not what drives sustainable performance.

Defining values is not enough

Effective culture work starts with honesty about the current culture and clarity about the desired one. Values must be translated into observable behaviours: what this value looks like in practice, and what it does not.

Authenticity matters. Values must reflect what the firm genuinely believes or is genuinely committed to becoming. Stretch is acceptable; pretence is not.

Embedding culture: three practical levers

Firms that succeed focus on three parallel actions:

1. Consistent communication – explaining what is changing and why

2. System alignment – testing incentives, rewards, and processes against desired behaviours

3. Behavioural reinforcement – leadership role-modelling, targeted behaviour campaigns, and structured feedback

   
   

Culture shifts when people experience different consequences for their behaviour. Culture does not change because firms declare new values. It changes because incentives, recognition, and leadership behaviours are aligned with the outcomes the firm wants.

Until that alignment is addressed, collaboration will remain an aspiration rather than a reality.

Watch the full series on Lexington's dedicated YouTube channel