<b><I>Leadership:</I></b> Linking Law Firm Leadership with Revenue Generation

What is missing in driving revenue growth at law firms is accelerating leadership. It is one of 12 exceptional management practices that firms should focus on, including branding, building client value, strategy, team building, and so forth.

The key to building recurring, sustainable revenue lies with the firm's leaders — such as managing partners, practice group leaders and partners-in-charge of offices. Developing accelerated law firm leadership is the focus of this article and, by the way, our practice.

There are more than 350 definitions of leadership in dictionaries and social media. We have distilled the list down and created the Six Laws of Exceptional Leadership:

1. Leaders Listen.
2. Leaders Make Decisions.
3. Leaders Communicate.
4. Leaders Hold People Accountable.
5. Leaders Take Risks (Not “bet-the-company”).
6. Leaders Leave a Legacy.

1. Leaders Listen

Perhaps Winston Churchill said it best: “Good leaders stand up and make decisions. Great leaders sit down and listen.” You must have advisers who can generate ideas, assess potential consequences, and help lead the implementation process for the team.

2. Leaders Make Decisions

The second law of exceptional leadership is that leaders make decisions. To quote another British Prime Minister, Margaret Thatcher: “Standing in the middle of the road is very dangerous. You get knocked down by traffic from both sides.”

Many law firms are managed by consensus or collegiality. After a reasonable time of “listening,” a decision must be made. Active support from your advisers, management committee, etc., is to be expected.

3. Leaders Communicate

The third law is that leaders communicate. We recently conducted a survey of American and Canadian firms on Client Retention. We learned that over a third of the time, in-house counsel terminated law firm relationships due to a lack of communication.

And, communicating within your firm is critical. General Motors CEO once said, “People will do the 'what' if they understand the 'why'.”

4. Leaders Hold People Accountable

This fourth law, the one leadership responsibility we find missing far too often, is leaders holding people accountable. According to Stephen Covey, “Effective leadership is putting things first. Effective management is discipline carrying it out.”

You and your advisers must remind colleagues of their commitments and help them move beyond any obstacles. Because in our role, holding our clients accountable for their commitments, some refer to us as “Mentors and Tormentors.”

5. Leaders Take Risks

This is the fifth law of exceptional leadership. We are not talking about “bet the company” risks. The key is looking outward for new ideas, not just refining what you are already doing. Build on what sets your firm apart. Differentiate your firm from others. Risk-taking is often the difference between success and failure.

As Elon Musk stated, “When something is important enough, we should do it even when the odds are against us.”And Sir Richard Branson puts it all in perspective: “Opportunities are like buses. If you miss one, another will be coming along as long as you keep your eyes open.”

6. Leaders Leave a Legacy

This last, sixth law of exceptional leadership is that leaders leave a legacy. Make an impact on your followers, know their strengths, apply them to your objectives and follow through to accomplishment.

“Your brand is what stays in the room after you leave the room,” says Jeff Bezos.

Summary

We know from experience that law firm managing partners, practice group leaders and partners-in-charge of offices are often given the titles, but little guidance or support. And, therefore, the cost of client acquisition is often overlooked. But by incorporating these Six Laws of exceptional leadership, you will gain sustainable revenue growth, a strategic competitive advantage, and improved client experience.

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Dr. Allan Colman, CEO of the Closers Group and a member of Marketing the Law Firm's Board of Editors, specializes in accelerating rapid revenue growth for law firms. He may be reached at www.closersgroup.com.