Resolving the Enigma of Law Firm Leadership

The first installment of this article in September addressed the necessity of law firm leadership. The conclusion discusses qualities needed in a manager.

Manager's Qualities

The leader must garner respect and support, have clout, and wield it when necessary. The leader must possess a rich mixture of judgment, timing, and vision. For practical reasons, a junior partner cannot be a successful managing partner. The managing partner must keep the objectives of the firm in perspective and understand that the good of the firm must come first. The managing partner must be able to make decisions and have them stick, and must want to manage the firm. Many partners want to have a great deal of “say” in firm operations; however, they stop short of following up on their advice or opinions with recognizable action. Such “management by debate” leads many management committees down the proverbial blind alley. It is not the way most lawyers want to conduct business in their professional lives.

The amount of time available for management is limited and must be used wisely. The principal role of the committee and managing partner should be to make certain that the important aspects of the firm's operational activities are being managed. Leaders must encourage collaboration, since this produces team effectiveness, assures improved firm performance, and generates the best ideas and options for managing the firm. In the most successful firms, much gets done by teams of partners pulling together.

Assigning the responsibility for various functions should depend on making certain that the managing partner and the committee are charged with those functions that require their specific talent, energy, and interest. Among other things, the management committee should:

• Monitor the firm's economic performance;
• Provide overall, long-range planning policy and direction;
• Make certain that systems are established and individuals are responsible for all areas of firm management;
• Make major decisions and recommendations in such areas as: lawyer compensation, billing rates, decisions with significant economic consequences, opening additional offices, and entering new areas of specialization;
• Communicate with the firm so that the management committee has the benefit of input from other lawyers so it understands the decisions and programs adopted.

It is not necessary for the management committee to undertake all the legwork and analysis regarding these issues. It should, however, evaluate the pros and cons, the effect of each decision on the firm's economics and individual lawyers, and how the decision fits into the firm's other policies and programs.

The managing partner should provide leadership, including maintaining morale; anticipating management needs and recommending ways to fulfill them; supervising the administrator; making decisions on matters that do not warrant consideration by the committee, such as implementing personnel policy; implementing committee decisions by informing the proper attorneys and by following up; coordinating all management activities; and making certain that the systems and individuals responsible for the firm's management are functioning properly.

Responsibility for the following functions can be fulfilled by the managing partner, a member of the management committee, or another lawyer: overseeing the firm's financial matters and reporting system through the administrator, including preparation and monitoring of budgets, billings, collections, cash flow, analysis of management reporting for time and money, recommending on investment of excess funds, banking relationships; overseeing lawyer career development, including evaluation, training, and general work assignments; overseeing legal assistant career development, including evaluation, training, and work assignments; investigating, evaluating, and making recommendations to the management committee regarding special projects such as acquiring senior lawyers, opening offices, and specialization in new areas; and overseeing firm facilities, particularly expansion or remodeling.

The prudent managing partner will recognize the need to chart a course between the requirements of the practice of law and the needs of those who perform the work.

Joel A. Rose, a member of this newsletter's Board of Editors, is President of Joel A. Rose & Associates, Inc., a firm of management consultants based in Cherry Hill, NJ. He may be contacted at 856-427-0050 or [email protected].

The first installment of this article in September addressed the necessity of law firm leadership. The conclusion discusses qualities needed in a manager.

Manager's Qualities

The leader must garner respect and support, have clout, and wield it when necessary. The leader must possess a rich mixture of judgment, timing, and vision. For practical reasons, a junior partner cannot be a successful managing partner. The managing partner must keep the objectives of the firm in perspective and understand that the good of the firm must come first. The managing partner must be able to make decisions and have them stick, and must want to manage the firm. Many partners want to have a great deal of “say” in firm operations; however, they stop short of following up on their advice or opinions with recognizable action. Such “management by debate” leads many management committees down the proverbial blind alley. It is not the way most lawyers want to conduct business in their professional lives.

The amount of time available for management is limited and must be used wisely. The principal role of the committee and managing partner should be to make certain that the important aspects of the firm's operational activities are being managed. Leaders must encourage collaboration, since this produces team effectiveness, assures improved firm performance, and generates the best ideas and options for managing the firm. In the most successful firms, much gets done by teams of partners pulling together.

Assigning the responsibility for various functions should depend on making certain that the managing partner and the committee are charged with those functions that require their specific talent, energy, and interest. Among other things, the management committee should:

• Monitor the firm's economic performance;
• Provide overall, long-range planning policy and direction;
• Make certain that systems are established and individuals are responsible for all areas of firm management;
• Make major decisions and recommendations in such areas as: lawyer compensation, billing rates, decisions with significant economic consequences, opening additional offices, and entering new areas of specialization;
• Communicate with the firm so that the management committee has the benefit of input from other lawyers so it understands the decisions and programs adopted.

It is not necessary for the management committee to undertake all the legwork and analysis regarding these issues. It should, however, evaluate the pros and cons, the effect of each decision on the firm's economics and individual lawyers, and how the decision fits into the firm's other policies and programs.

The managing partner should provide leadership, including maintaining morale; anticipating management needs and recommending ways to fulfill them; supervising the administrator; making decisions on matters that do not warrant consideration by the committee, such as implementing personnel policy; implementing committee decisions by informing the proper attorneys and by following up; coordinating all management activities; and making certain that the systems and individuals responsible for the firm's management are functioning properly.

Responsibility for the following functions can be fulfilled by the managing partner, a member of the management committee, or another lawyer: overseeing the firm's financial matters and reporting system through the administrator, including preparation and monitoring of budgets, billings, collections, cash flow, analysis of management reporting for time and money, recommending on investment of excess funds, banking relationships; overseeing lawyer career development, including evaluation, training, and general work assignments; overseeing legal assistant career development, including evaluation, training, and work assignments; investigating, evaluating, and making recommendations to the management committee regarding special projects such as acquiring senior lawyers, opening offices, and specialization in new areas; and overseeing firm facilities, particularly expansion or remodeling.

The prudent managing partner will recognize the need to chart a course between the requirements of the practice of law and the needs of those who perform the work.

Joel A. Rose, a member of this newsletter's Board of Editors, is President of Joel A. Rose & Associates, Inc., a firm of management consultants based in Cherry Hill, NJ. He may be contacted at 856-427-0050 or [email protected].