How A Leader Adds Value To A Law Firm

After years of analyzing the personal and professional styles of lawyer managers who are perceived as leaders of professionally and financially successful law firms, three inescapable conclusions have become readily apparent to the author:

1. The authority of lawyer management is derived from the willingness of partners to be managed;
2. Partners in most law firms perceive themselves as being owners of the firm, having certain prerogatives and independence, not as employees to be “managed”; and
3. Law firms have their own personalities and cultures; and management techniques that may be effective in one firm may be marginally or not successful in another.

It is the author's opinion that the greatest, and perhaps the most frustrating challenge with which effective leaders of law firms must deal is the approach to follow to provide leadership to their firms. Central to this conflict is whether to lead by consensus or decree. Astute leaders achieve the appropriate balance of building consensus among the partners versus managing as an autocrat.

In today's highly competitive environment, authority for managing a firm's administrative and substantive activities needs to be centralized in a managing partner and/or a management committee, to some extent. It is no longer feasible or desirable for attorneys to exercise their independence on virtually every issue. Partners must be willing to subordinate their prerogatives as owners of the firm for the “good” of the firm. This is frequently referred to as “being a good citizen of the firm.”

In determining and defining the leadership role of a law firm leader, it is important, as part of the process, to recognize those individuals who are not necessarily leaders simply by virtue of one attribute. While many firm leaders fit one or more of these descriptions, the below characteristics do not immediately signal leadership potential:

1. Partner with high billable hours;
2. The rainmaker who controls a substantial portion of business;
3. The attorney who feels he is a leader simply by virtue of seniority; and
4. The attorney who feels he is a leader simply by virtue of title.

Characteristics of a Firm Leader

While firm leaders certainly can incorporate many of the above characteristics, those characteristics, combined with the below, make for the more effective and appropriate leader:

Leadership by example

A leader should not expect attorneys to develop business or to be productive unless he or she has had a history and track record or either doing the same, or recognizing and promoting productivity and rainmaking in others. In other words, it is not an absolute necessity that a firm leader be a successful rainmaker or have the highest hours. This certainly varies by personality and circumstance. On the other hand, any realistic leader of a law firm in the present time must recognize, give value to and promote the absolute need for productivity and business development.

A combination of attributes

A leader cannot simply be someone who excels in one area of practice. The most successful leaders of law firms and businesses almost always combine several or more elements necessary in moving a business forward. It is suggested that the more successful leader combines such elements as business development with administrative skills so that one particular talent is not seen in a vacuum.

A willingness and ability to work with people

Not to be confused with the ubiquitous term “people person,” leaders need to understand the value of knowing and interacting with firm personnel. There is a need to get a feel for the people who provide attorney and support services to a law firm and this is missing by simply sitting behind a desk. There is equally a need to have some understanding and appreciation of the subtle differences between various attorneys and support staff and particularly to have some openness to individual needs, as well as being able to recognize particular strengths of others that can be matched up with needs of the firm.

Decision making

Attorneys in law firms often express strong opinions, but all too few are willing to actually make final decisions. A leader is willing and able to get to the point where a decision needs to be made, make the decision, and stand by it.

Earned respect, which is not forced or demanded

To be a true leader, one needs to have the respect of others. True respect is something that is earned through actions and history. There is absolutely no value to attempting to force acts of respect from others through title, position, seniority or simply forceful behavior. It is not genuine, has no value, and creates negative feelings that impact the firm.

Treating attorneys and staff in a way that inspires production and loyalty: A true leader does not need to constantly demonstrate the fact that he or she is a leader and has a certain position of authority. In treating those under his leadership, particularly support staff, with respect and understanding, a leader can certainly inspire loyalty and better production.

Reputation in the legal and business community

By virtue of their accomplishment, firm leaders are able to establish a certain favorable reputation in both legal circles and the business community as a whole.

How Value is Added Through a Leader

Value is added through a leader by:

1. Inspiring attorneys

By both setting an example and communicating with attorneys, a sense of respect and loyalty is developed. Setting an example in terms of productivity and work habits, business development and professional development has a value that is not easily quantified, but can have a tremendous impact in creating more successful attorneys and ultimately a more successful firm.

2. Getting the most out of the staff

Again, by setting an example, listening to concerns, being accessible and showing interest, greater support staff loyalty is created and ultimately greater productivity is seen.

3. Making the hard decision

Many attorneys will deal with problematic personnel issues, difficult client issues, issues of compensation or other volatile areas by offering complaints, setting forth general suggestions, but never bringing the problem to the point where a final decision is rendered. Problems can exist for years, are recognized, and yet the final difficult decision is not made. This costs the firm huge amounts in terms of financial resources, firm time and administrative time in particular. A leader is willing to make rather than discuss the hard decision and is willing to participate in the follow-up process when the decision is implemented. This is a necessity in a properly functioning law firm.

4. Reputation leads to business development

The establishment of an attorney as a leader within the firm and the extension of that reputation to a leadership position in the legal community and the business community ultimately leads to business development. The leader himself can generate business through his or her involvement outside the firm and can also act as a figurehead to accompany others in marketing efforts. The leader can be the deciding factor in terms of attracting and maintaining significant business.

5. Reputation leads to more effective litigating and negotiations

In firms in which negotiations or litigation are part of practice, the leader, based on reputation and presence, can be a significant factor in terms of successfully litigating matters or finalizing successful negotiations.

6. Attracting new attorneys and laterals

Individual attorneys, practice groups and other firms tend to be more attracted and interested in joining or merging with a law firm with a recognized leader or leaders in the legal community. The firm is perceived as one in which there is strong leadership and therefore, by perception, has better management and administration. The firm is also perceived as having a positive reputation based upon the affiliation with the leader and therefore is more attractive to the newcomer. Leaders should be involved in the process of bringing aboard laterals and merger candidates.

7. Serving as a marketing tool

By accompanying other attorneys in marketing efforts or allowing the use of the leader's name in marketing materials, the leader's reputation becomes an effective marketing tool which helps to enhance the presentation by other attorneys in the firm.

8. Giving the firm direction and the opportunity to grow

A firm cannot successfully exist as simply a collection of attorneys billing files and bringing in business. A leader gives the firm direction and a plan and helps to establish the character of the firm and its practice. A leader needs to perceive the need for change in practice areas, the need to add lateral attorneys, merge with other firms or institute administrative decisions to continue to allow the firm to progress. A firm need not necessarily grow in size of work force, but rather can grow more successfully in terms of revenue and successful practice areas. A true leader needs to take the lead in promoting the changes and making the decisions to keep the firm viable.

9. A leader brings vision and awareness

The leader looks to the future, acknowledges what has worked for the firm and what needs to change. The leader has a forcefulness to push for the elements to complete his or her vision of the continuingly successful law firm.

After years of analyzing the personal and professional styles of lawyer managers who are perceived as leaders of professionally and financially successful law firms, three inescapable conclusions have become readily apparent to the author:

1. The authority of lawyer management is derived from the willingness of partners to be managed;
2. Partners in most law firms perceive themselves as being owners of the firm, having certain prerogatives and independence, not as employees to be “managed”; and
3. Law firms have their own personalities and cultures; and management techniques that may be effective in one firm may be marginally or not successful in another.

It is the author's opinion that the greatest, and perhaps the most frustrating challenge with which effective leaders of law firms must deal is the approach to follow to provide leadership to their firms. Central to this conflict is whether to lead by consensus or decree. Astute leaders achieve the appropriate balance of building consensus among the partners versus managing as an autocrat.

In today's highly competitive environment, authority for managing a firm's administrative and substantive activities needs to be centralized in a managing partner and/or a management committee, to some extent. It is no longer feasible or desirable for attorneys to exercise their independence on virtually every issue. Partners must be willing to subordinate their prerogatives as owners of the firm for the “good” of the firm. This is frequently referred to as “being a good citizen of the firm.”

In determining and defining the leadership role of a law firm leader, it is important, as part of the process, to recognize those individuals who are not necessarily leaders simply by virtue of one attribute. While many firm leaders fit one or more of these descriptions, the below characteristics do not immediately signal leadership potential:

1. Partner with high billable hours;
2. The rainmaker who controls a substantial portion of business;
3. The attorney who feels he is a leader simply by virtue of seniority; and
4. The attorney who feels he is a leader simply by virtue of title.

Characteristics of a Firm Leader

While firm leaders certainly can incorporate many of the above characteristics, those characteristics, combined with the below, make for the more effective and appropriate leader:

Leadership by example

A leader should not expect attorneys to develop business or to be productive unless he or she has had a history and track record or either doing the same, or recognizing and promoting productivity and rainmaking in others. In other words, it is not an absolute necessity that a firm leader be a successful rainmaker or have the highest hours. This certainly varies by personality and circumstance. On the other hand, any realistic leader of a law firm in the present time must recognize, give value to and promote the absolute need for productivity and business development.

A combination of attributes

A leader cannot simply be someone who excels in one area of practice. The most successful leaders of law firms and businesses almost always combine several or more elements necessary in moving a business forward. It is suggested that the more successful leader combines such elements as business development with administrative skills so that one particular talent is not seen in a vacuum.

A willingness and ability to work with people

Not to be confused with the ubiquitous term “people person,” leaders need to understand the value of knowing and interacting with firm personnel. There is a need to get a feel for the people who provide attorney and support services to a law firm and this is missing by simply sitting behind a desk. There is equally a need to have some understanding and appreciation of the subtle differences between various attorneys and support staff and particularly to have some openness to individual needs, as well as being able to recognize particular strengths of others that can be matched up with needs of the firm.

Decision making

Attorneys in law firms often express strong opinions, but all too few are willing to actually make final decisions. A leader is willing and able to get to the point where a decision needs to be made, make the decision, and stand by it.

Earned respect, which is not forced or demanded

To be a true leader, one needs to have the respect of others. True respect is something that is earned through actions and history. There is absolutely no value to attempting to force acts of respect from others through title, position, seniority or simply forceful behavior. It is not genuine, has no value, and creates negative feelings that impact the firm.

Treating attorneys and staff in a way that inspires production and loyalty: A true leader does not need to constantly demonstrate the fact that he or she is a leader and has a certain position of authority. In treating those under his leadership, particularly support staff, with respect and understanding, a leader can certainly inspire loyalty and better production.

Reputation in the legal and business community

By virtue of their accomplishment, firm leaders are able to establish a certain favorable reputation in both legal circles and the business community as a whole.

How Value is Added Through a Leader

Value is added through a leader by:

1. Inspiring attorneys

By both setting an example and communicating with attorneys, a sense of respect and loyalty is developed. Setting an example in terms of productivity and work habits, business development and professional development has a value that is not easily quantified, but can have a tremendous impact in creating more successful attorneys and ultimately a more successful firm.

2. Getting the most out of the staff

Again, by setting an example, listening to concerns, being accessible and showing interest, greater support staff loyalty is created and ultimately greater productivity is seen.

3. Making the hard decision

Many attorneys will deal with problematic personnel issues, difficult client issues, issues of compensation or other volatile areas by offering complaints, setting forth general suggestions, but never bringing the problem to the point where a final decision is rendered. Problems can exist for years, are recognized, and yet the final difficult decision is not made. This costs the firm huge amounts in terms of financial resources, firm time and administrative time in particular. A leader is willing to make rather than discuss the hard decision and is willing to participate in the follow-up process when the decision is implemented. This is a necessity in a properly functioning law firm.

4. Reputation leads to business development

The establishment of an attorney as a leader within the firm and the extension of that reputation to a leadership position in the legal community and the business community ultimately leads to business development. The leader himself can generate business through his or her involvement outside the firm and can also act as a figurehead to accompany others in marketing efforts. The leader can be the deciding factor in terms of attracting and maintaining significant business.

5. Reputation leads to more effective litigating and negotiations

In firms in which negotiations or litigation are part of practice, the leader, based on reputation and presence, can be a significant factor in terms of successfully litigating matters or finalizing successful negotiations.

6. Attracting new attorneys and laterals

Individual attorneys, practice groups and other firms tend to be more attracted and interested in joining or merging with a law firm with a recognized leader or leaders in the legal community. The firm is perceived as one in which there is strong leadership and therefore, by perception, has better management and administration. The firm is also perceived as having a positive reputation based upon the affiliation with the leader and therefore is more attractive to the newcomer. Leaders should be involved in the process of bringing aboard laterals and merger candidates.

7. Serving as a marketing tool

By accompanying other attorneys in marketing efforts or allowing the use of the leader's name in marketing materials, the leader's reputation becomes an effective marketing tool which helps to enhance the presentation by other attorneys in the firm.

8. Giving the firm direction and the opportunity to grow

A firm cannot successfully exist as simply a collection of attorneys billing files and bringing in business. A leader gives the firm direction and a plan and helps to establish the character of the firm and its practice. A leader needs to perceive the need for change in practice areas, the need to add lateral attorneys, merge with other firms or institute administrative decisions to continue to allow the firm to progress. A firm need not necessarily grow in size of work force, but rather can grow more successfully in terms of revenue and successful practice areas. A true leader needs to take the lead in promoting the changes and making the decisions to keep the firm viable.

9. A leader brings vision and awareness

The leader looks to the future, acknowledges what has worked for the firm and what needs to change. The leader has a forcefulness to push for the elements to complete his or her vision of the continuingly successful law firm.