Laying the groundwork for change among older partners

There is an increasing tension between the traditional practice of law and the need to use sound business practices for a law firm to be a sustainable business. While each equity partner is an owner in the firm, not all partners have the same understanding of business operations and practices.

Added to this is the fact that there are various generations of lawyers working together in law firms today, from the remaining members of the ‘greatest generation’ to the millennials. Law firm leaders need to approach each group differently to engage them in addressing the changes that need to be made to keep their practice competitive. The challenge, however, is motivating partners, particularly those who have been practicing for several years, to accept change and be part of that process.

Need for change

The first key element is to get all partners to agree that, no matter what their age, status or book of business, everyone has
a responsibility to the firm and to each other as partners. They also have to understand that the sustainability of the firm will not just happen, no matter how many years it has been in existence or
how successful the firm may have been, and that no firm is immune from having
to address the need for change.

Studies show that demand for legal services has been virtually flat over the past five years, even with the improvements in the overall economy,
so the competitive nature of the practice of law will continue to increase.

The second key element is that everyone has to understand that there
is an urgency to address these business issues. Firms that proactively address them from a position of strength are
the most likely to succeed. But, while
the urgency exists, firm leaders also
need to allow time to build a consensus on key decisions. Mandates requiring change announced from the top down are unlikely to be accepted or successful.

Many long-time partners are likely to feel that the need to address these issues does not apply to them. They may also resist what they consider to be changes to the firm’s culture. One way to involve these partners is to engage some of their peers who are well respected throughout the firm and who support and recognise the importance of such strategic change. These targeted efforts will help to get those partners who might otherwise resist change more involved.

Long-time respected partners who support these initiatives can be valuable participants in the process. However,
if they are also among the top business producers in the firm, they should also consider how to address partners who are not currently significant rainmakers.

It is essential that these partners and the firm as a whole consider the steps being taken by partners who are making efforts to increase their business production but have not yet been successful; these should be treated as an investment in the firm’s future. These partners need to be treated differently
than those who, for whatever reason,
are not making such efforts.

Another way to engage not only more senior partners but partners at all stages of their careers is to have a number of special purpose meetings where the agenda for each is to address and discuss specific issues in a more in-depth fashion. Such meetings should include sessions involving all attendees, while allowing time for smaller breakout groups to meet and discuss particular issues and then report back to the group as a whole.

In many instances, partners who may not typically engage in larger group meetings would welcome the opportunity to participate in a smaller group setting. Such meetings require significant advanced planning to establish points for discussion, facilitators for breakout groups and the composition of the groups.

Essential communication

Business models in which issues are addressed by all partners as a ‘committee of the whole’ at one extreme, or where the managing partner or management committee mandate change at the other, are unlikely to be successful or accepted, especially by more senior partners.

Communicating information about business practices, as well as trends
in the practice of law, is essential to
gaining acceptance and consensus for decisions among partners at all levels.
This is particularly important when redefining the roles of the managing partner, management committee, equity partners and non-lawyer professional staff.

Ultimately, managing partners
will need to spend much more time communicating with individual and small groups of partners at different stages of their careers, as well as with all partners in various group settings, to successfully implement the strategic changes that are necessary for the firm’s future sustainability and success.

Art Lafionatis is chair of the board at US law firm Lerch, Early & Brewer
(www.lerchearly.com)