The system can work well in small firms when each partner has sufficient knowledge of the other partners' contributions. In larger firms it becomes more difficult to have a good understanding of the contribution of each partner. The individual ratings are kept confidential and only the summarized tabulations are reported to the partners. Under the prospective approach, points or shares are determined at or before the beginning of the year and apply to that year. Likewise, retrospective systems determine the allocation at the end of the year for that year.
Most law firms use a prospective approach.
F irms with a lockstep compensation system generally assign points or shares on an annual basis, based on the number of years a lawyer has been a partner, up to a maximum number of points after fifteen or twenty years. Some firms operating under the lockstep system find that it serves them well and avoids controversy. This is particularly true where all partners are perceived to be making an equal contribution to the firm's overall economic success. T here are a number of drawbacks to the lockstep system, the major problem being that it rewards only seniority. The system also is lacking in accountability and tends to unfairly favor the least energetic, least aggressive, and least capable.