Page 10 - Law Firm Management

S10 | MONDAY, MAY 9, 2016 | Law Firm Management
| NYLJ.COM

Relationship Between Leadership

Management
And in Law Firms

OCK
GST
BI

During the last three years, Baxter Rice has While these factors might indicate that “I won’t be there, but George will
announce it at tomorrow’s irm meet-
BY JOEL A. ROSE
acquired two smaller irms. Although these the crisis falls on the issue of age and the
Facquisitions have been successful from an unwillingness of the older partners to spend ing. We’ll also probably want to see
inancial stability within a law irm prac- economic standpoint, the acquired partners money to progress the irm, these are not that labor specialist for a inal wrap up.
tice does not guarantee harmony within and a few of the irm’s mid-level and junior necessarily the crux of the actual problems. There’ll be some shifting around down
the partnership itself—far from it. Law partners have begun grumbling about the The problem of lack of irm leadership has there once he’s aboard but that area is
irm management that does not acknowledge irm’s lack of leadership and direction, going been built into the system, layer by layer, over flexible. Eileen, tell Fred I’m ready to
or relect the importance of irm leadership forward.
the years. In order to plan effectively for the those contracts.”
and the contributions and needs of its mem- Although the firm’s overall client base “I’m sorry Mr. Baxter, Fred is at a direc-
future, irm management must delve within tor’s meeting this afternoon.”
bers endangers a irm’s cohesiveness and its appears to be solid, in light of the highly com- and undo the chain of events, issue by issue
very existence, no matter how many clients petitive market in which the irm practices, that has led to its present crisis. The irm “Did they ask for him?”
come through the front door.
several partners believe that more innova- needs more and better leadership to conduct “I didn’t take the call.”
By examining the lack of leadership in a tive plans must be developed to address the more strategic planning to determine what “Sam, this is Ed Baxter. Could we get
hypothetical mid-size law irm, Baxter, Rice internal and external trends that are most the partners would like the irm to become, together about some contracts I need
& Stern, some changes and solutions could likely to affect the future of the irm generally. going forward.
suggest themselves to irms that may not These changes include considering adding The scenario. Ed Baxter is the senior man- for a meeting in the morning?”
know they have problems or wish to avoid one or two other practice areas so the irm While this exchange is taking place, junior
certain problems.
can provide better service to its key clients aging partner and a member of the execu- partner Fred is on the road, cultivating his
tive committee. His contacts and reputation
and planning for a smoother transition when have been the irm’s mainstay since its incep- own patch. Given the present state of affairs
Exercising Leadership
some of the older partners step down by dint tion. Tom Rice is the second member of the at the irm, he feels justiied in setting his
of age, health, etc.
executive committee. His ancestors’ good own strategy for success. While the client
Hypothetical irm, real problems. Baxter, Several of the younger and mid-level works have kept many doors open to the he is seeing is not yet the irm’s largest, it
Rice & Stern is at a crossroads. It is no longer the partners are familiar with many of the irm. George Stern is the third member of will be after Fred meets with the company’s
irm founded 18 years ago by three partners, Ed, current trends for promoting the firm, directors this afternoon. Then at tomor-
Tom and George, who left a larger irm because developing new client business and invest- the committee. He sits on a lot of boards and row’s irm meeting, he will make his own
of their dissatisfaction with a big-irm setting.
ing in lawyer additions in growth oriented has toyed with the idea of running for politi- announcement.
Today, their own firm is run by a man- practice areas. Also, they resent the nega- cal ofice in the city. These three partners Every partnership, no matter the size,
are quite satisied in the manner in which
agement committee comprised of the three tive responses given by several senior and the irm has evolved and would like to keep needs leadership. Leadership and manage-
senior (and founding) partners. The commit- mid-level partners concerning the invest- it that way until they decide to reduce their ment need to exist in every law irm. A inan-
tee determines policy, makes major decisions ment of irm capital to upgrade the irm’s active involvement in the irm.
cially and professionally successful law irm
affecting the irm, and sets partner compen- technology to facilitate the production of does not simply evolve. It must be built in an
sation. Partner meetings are held monthly. client work. These feelings of frustration Fred has been a partner for two years, and orderly and systematic manner based upon
The irm agenda and summaries of inancial are not unreasonable from the younger Sam will be a partner by the end of the year. ive principle factors: (1) the values that are
reports are distributed to partners at the irm members’ point of view. They have There are many other such Freds and Sams at important to the partners of a irm, (2) the
meetings.
not necessarily received the beneits of the irm. Imagine that the following exchange external changes affecting the irm over which
takes place between Ed Baxter and Tom Rice
these long-term relationships and, more to late one morning:
the partners may exercise little or no control;
the point, have not been invited to partici- (3) the internal changes within the irm over
JOEL A. ROSE is a consultant at Joel A. Rose & Associ- pate in their cultivation. Also, they resent “Tom, have you seen Fred?”
which the partners may exercise some or
ates, Management Consultants to Law Oices, and a the overly conservative attitude of senior “He was around earlier. Check with his
complete control; (4) the motivational needs
member of the Committee on Law Practice Manage- partners to spend irm money to invest in secretary. Say, are we hiring that real and incentives required by the partners to sat-
ment of the New York State Bar Association.
the future of the irm.
estate guy?”
isfy their professional, personal and inancial