Emerging challenges of managing law firms in the Indian sub-continent

Traditionally, Indian firms have originated from small family firms into 50 to 100-lawyer organisations. However, over the past five to ten years, at least 20 firms have moved beyond the three-digit number and set up multi-locational offices. The management of Indian firms has traditionally been with the founding members but, with the challenge of size and multiple locations, the approach to managing them has also evolved.

In an emerging recession where the US and Europe are challenged, the paradigm is shifting to law firm practice management with greater efficiency, time and cost management and speed of delivery of services. Commoditisation of law is a reality, as standards can be set and processes managed for several repetitive functions in firms.

In the hierarchy of law firms, the single city firms, multicity firms in a region of a country (regional firms) and multicity firms in a nation (national firms) are now competing with global regional firms, global national firms and international global firms for legal work.

The organisational processes for each of these types of law firms significantly differ. Establishing a common standard, a common culture and common firm values across regions and nations is the greatest managerial challenge for any managing partner.

Whereas the smaller firms are built on personal relationships and friendships among lawyers which may have originated from law school, when size becomes a criterion, the engagement of talent which is multicultural, multi-gender, multi-regional and of diverse age and religious beliefs is the biggest challenge.

Adapting strategy

With every 100 additional fee earners being admitted to a law firm, the dimensions of the practice and the mode of organisational effort and planning changes.

Growth without structure and strategy is meaningless. Working capital and financing infrastructure requirements have to be planned well in advance before new hires. Adding infrastructure, managing cashflows and moratoriums on rent and planning expenditure is an art and not a casual process.

Building trusted relationships within the law firm and creating the right values of empathy, excellence, hard work and collegiality are not matters of overnight training: they take years to build and ingrain in the firm’s lawyers.

Ensuring the competitive ‘animal spirits’ of lawyers align and jointly cooperate in creating excellent service is a painstaking exercise and has to be repeatedly hammered home before it becomes second nature.

Values and culture

The modern law firm organisation is not merely about the lawyers, however. It is also about the service professionals needed to implement the culture and build the reputation of the firm.

This internal service parallel within the firm is like the skeleton of the human body, bound as a connected bone structure with flesh and muscle. The finance, human resources, IT, knowledge management and office administration functions all go to make the head, heart, hands and feet of the organisation, so that it functions as a vibrant human service.

This stronghold of internal service providers looks after the workforce and gender issues. For young mothers, establishing a crèche and facilities for the continuity of their legal careers is vital.

Freedom from gender bias, gender inequality, diversity and freedom from religious bias are all developed by the internal service providers. They play a vital role in reinforcing the founding father’s value systems.

We take so much for granted from our family cultures that we do not pay attention to setting the work culture. It is therefore imperative to think through the human dimensions with the law firm for raising satisfaction among the firm’s internal constituents. Their satisfaction determines their pride in the organisation and their joy in serving clients.

These are the softer challenges of running the modern law firm.