Page 9 - Partnership

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Partnership | MONDAY, APRIL 24, 2017 | S9
BY BARRY WOLF
It is no secret that we have been and con- tinue to operate in a hyper-competitive legal market and that rms need to adapt in order to thrive in this “new normal.” The nancial crisis of 2008 brought about seismic changes in the legal landscape, resulting in a premier legal services market that is smaller and more competitive than ever. As the years have passed, the pressures have only con- tinued to intensify.
How can rms respond to this? One answer is to introduce business principles to law rm management. As we all know, though, this is much easier said than done. Law rms are different places, primarily because they are not just businesses, they are partnerships, each with its own culture. Nevertheless, this does not change the reality that rms must become more business-oriented in order to succeed. No longer can even the most his- torically successful partnerships cautiously “wait and see” what clients need and simply respond to the market. It is essential to be proactive and strategic in business planning. The good news is that this is achievable while maintaining, and even enhancing, culture, if done in the right way.
While none of us went to law school to learn how to man- age a business, we need to embrace new marketplace realities.
At Weil, Gotshal & Manges, we have had great nancial success in recent years by being disciplined in following a business plan tailored to who we are as a rm. We have focused on our geographic and prac- tice balance, particularly the strength of our Corporate, Litigation and Bankruptcy departments. By embracing our culture of entrepreneurialism, meritocracy, teamwork and corporate social responsibility, we have been able to drive growth while living and breathing our culture.
Getting Started
First, as with any business plan, it is critical to de ne who you are and in what practices your rm can supply value-added legal ser- vice. This may sound simple and obvious, but it is challenging, especially in a partnership environment. Engaging an outside party to assist you in this examination is one way to accomplish this. The bottom line is, if you are in a competitive marketplace, you must make a detailed and honest assessment of where and how you can deliver value to clients.
At Weil, we went through such an assess- ment with the help of an outside consultant several years ago. Upon completing this, we set our focus on targeting matters that involve
BARRY WOLF is executive partner of Weil, Gotshal & Manges and chair of the rm’s management com- mittee.
Incorporate Business Principles Into Law Firm Management
the C-Suite and boards of directors, whether that be in shareholder activism, M&A, com- plex bankruptcy or distressed situations, messy government or internal investigations, or hairy litigation. Other rms may nd their focus should be more on a niche legal area or a speci c industry or geography. Without this focus, you cannot achieve success today.
Drilling Down
Once you have de ned your focus, you must drill down on core business issues
while, at the same time, engaging your part- ners to work toward achieving the rm’s overall strategic goals. You must develop an approach to achieve buy-in from the part- ners. In addition to open communication, one way to help achieve this is to involve partners in different geographies and prac- tice areas to examine these issues, includ- ing business planning, succession planning, and speci c of ce and practice area plan- ning, while keeping a keen and constant examination of operational expenses and ef ciencies.
Some of you may now be rolling your eyes, griping, “The answer is more committees?” In our experience, it is part of the answer, as long as the committees are made up of the “right” partners, focused, held accountable, and work to engage partners across of ces.
Financial Targeting
In approaching business planning at Weil, we took a fresh look at the manner in which firm revenue and profits were projected, and—for the first time—each » Page S10
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