Asked and AnsweredBy John W. Olmstead, MBA, Ph.D, CMCQ. I am the managing partner for a 18-attorney insurance defense firm in Atlanta. We have 6 partners and 12 associates. Most of our associates have 10 years plus experience. They receive a salary plus discretionary bonus. We are having problems with six of the associates not reaching performance goals. (1,800 minimum billable hours per year.) While we have some attorneys billing 2,400+ hours per year - these six are not - some are billing 1,400 hours. What sort of incentive should we be thinking about to improve their performance?A. The incentive is to get to continue their employment, maintain a full work schedule, progress to partnership, and to receive future pay raises and bonuses.I know of some insurance defense firms that pay a billable hour bonus above a certain level. However, this approach often causes other problems such as milking hours in client files and overbilling often resulting in client dissatisfaction and potential loss of key clients. In addition, other factors are also important - quality of work, results obtained, teamwork, client relationships (minding) etc. that are often not considered and left out of the equation.