Effective leaders at law firms are adaptive, guiding staff through industry shake-ups with a collaborative, guidance-focused mindset. To do this, they must be transparent and clear with their goals.
However, attorneys often resist such incursions into their autonomy. This makes implementing strategic plans challenging. Adroit leaders avoid this instinctive reaction by communicating with resisters early on.
Treat People Fairly
Despite the often insulated nature of the legal profession, law firm leaders must manage the same types of challenges faced by other businesses. That includes staff reductions, lost deals, reorganizing and remote working. In these challenging times, effective law firm leadership relies on a blend of organizational and management skills coupled with human capital and business development skills.
As a result, it’s important for firms to have a well-defined culture and to be transparent about the firm’s values and expectations. This can be done by promoting diversity initiatives, offering flexible work options and investing in professional development opportunities. Firms should also set clear metrics for performance and provide guidance for attorneys. Otherwise, it can be easy for partners and senior associates to place undue pressure on junior employees who may not meet their metrics.
Leaders need to be comfortable with ambiguity and change and understand that people react differently to different situations. This requires emotional agility, which is a trait that can be learned. In addition, effective law firm leaders possess personal resiliency and are able to navigate industry shake-ups.
Lastly, effective law firm leadership depends on an ability to communicate with team members and clients. This can be done by hosting open office hours, providing training on new technology, and making a point to get to know your team. It’s also helpful to highlight successes, big and small, and to show appreciation for your team. This will help create a sense of community and support, which can be especially beneficial during difficult times.
Be Transparent
Several firm leaders reported that their firms are seeing an increased need for transparency on how associates can progress into partnership and leadership roles. This is a result of a more mobile professional workforce and the pressure that many rainmaker partners feel to move on to other firms when they aren’t being given adequate opportunities at their current firms.
While law firm leaders often proclaim that their firms are operating more like businesses, they have yet to adopt many of the talent management practices that are required for this shift to happen. In fact, law firms still spend a relatively small percentage of their revenue on formal training and mentoring for their attorneys.
The truth is that law firm leaders are frequently reluctant to embrace new realities. This can be a problem when a change is needed because the law industry and the legal marketplace are constantly evolving. Denying or ignoring these changes can neutralize a firm’s most competitive strengths and advantage, eventually leading to the demise of the business.
One example is that many firms struggle to keep up with the shifting market conditions while balancing the financial needs of partners and associates. Law firm management teams must strike the right balance between achieving financial success and maintaining the firm’s core values and culture. Creating an environment where all firm members can pursue their financial goals without feeling that they are jeopardizing the culture of the organization is essential to a successful outcome.
Similarly, law firm leaders must recognize that the people in their firms who are most likely to generate the major innovations required for the future of their firm are senior associates and junior partners, not the current partners on the firm’s executive committees. It’s critical to identify these people and empower them with the authority, resources, and opportunity they need to fulfill their leadership responsibilities.
Build Trust
Having an open dialogue with your firm’s team members is the key to creating healthy law office culture. Whether it’s through regular meetings, informal brainstorming sessions or an online feedback system, leadership communication is the foundation of strong relationships. Without it, you’ll likely run into trust issues with clients and the rest of your firm.
One of the biggest challenges with leadership in a law firm is striking the right balance between financial success and firm culture. According to Keith Donovan, managing partner at Morris James, a full-service law firm, this is achieved by establishing clear roles and expectations.
This includes ensuring that new hires understand exactly what their job entails and how it aligns with the firm’s goals. It also means providing regular training and mentoring programs to help them develop their skills and advance within the firm.
Donovan believes that a law firm’s leadership can make or break their success during an industry shakeup. It’s essential for leaders to embrace change and navigate industry shifts with a forward-thinking mindset. If they can’t, it could be a sign of a lack of emotional intelligence (EQ) and an inability to remain adaptable.
EQ is an intangible trait that can be hard to identify during a job interview. However, a person with high EQ has the ability to lead themselves while remaining self-aware. They can also handle conflict and ambiguity while exhibiting personal and organizational resiliency.
Developing a strong leadership framework is essential for the long-term success of your firm. By focusing on building trust and setting clear roles, you’ll create a stronger foundation for growth.
Embrace Change
While some firm leaders may be tempted to lead with the same strategies that have worked in the past, this approach will likely fail in the future. The legal landscape is changing faster than ever, and firms that can’t adapt will be left behind.
Leaders need to be able to understand and anticipate the challenges that their teams will face in order to create and implement innovative solutions. They need to be able to see the bigger picture and connect team responsibilities and goals with firm-wide initiatives, making it clear how their contributions contribute to success. Like the NASA floor sweeper who proudly stated “I’m helping to put a man on the moon”, leaders need to be able to make sure everyone knows they have a role in the organization’s big picture. Amidst these challenges, a group claims firm can be a valuable resource, offering specialized expertise in handling large-scale litigation and ensuring that the voices of many individuals are heard through collective action.
Law firm leadership requires a balance of financial success and maintaining the firm’s culture. Donovan believes that firm leaders must strive to achieve both, and he encourages all partners to discuss how they will strike this balance during the interview process.
Several of the panelists also discussed how firm leaders need to find ways to retain talent and manage client relationships. Several participants noted that they are seeing an increasing number of partners abandoning their practices for in-house positions or to join competing firms. In some cases, these partners are citing disincentives to leadership roles, particularly when they require the sacrifice of a substantial portion of their practice income.
To combat this trend, some firm leaders have found success by implementing an open door policy and holding regular “office hours” to meet with staff and answer questions. This type of communication has been shown to improve engagement, and it allows for more individualized feedback on career development and other issues.
Lead by Example
Developing strong relationships is one of the most important aspects of law firm leadership. Effective communication is key to building a strong foundation in any relationship, and it’s even more essential for the people within your law firm. Law firm leaders who lack solid communication skills will not only have difficulty closing clients, but they’ll also struggle to create a high-trust work environment for their team members.
A strong leader understands that their success depends on the success of their team members. Therefore, they make it a point to set goals and expectations for their teams in the most clear and transparent way possible. This ensures that all team members have a good understanding of how their contributions are valued and helps to avoid confusion over performance metrics.
Furthermore, a law firm leader who prioritizes open communication will take the time to meet with their teams on a regular basis. This will allow them to provide feedback and give their team the opportunity to voice concerns in a healthy manner. This is crucial because it will help to prevent misunderstandings and conflict in the workplace.
Moreover, a strong law firm leader will also take the time to provide support and guidance for their team members. This will include helping them overcome challenges that may arise in their careers and guiding them through changes in the legal industry. For example, many firms have had to adjust their business practices during the pandemic to remain competitive. Those who had an effective management style were able to navigate these changes with ease and confidence.
As the legal landscape continues to evolve, firms will need to have a stronger focus on law firm leadership and management in order to thrive. This includes focusing on communication, employee development, collaboration, and empathy.
