Managing partners are being undermined by short-term thinking

What is it that makes for a successful managing partner? Most recognise that
it is important to communicate well with and actively listen to both partners
and staff. But, beyond that, what does it take to be really effective in the role?

A broad range of skills and knowledge is required. This includes the ability to understand the firm's finances as well as the needs and motivations of lawyers from different backgrounds and generations. Even more important is being able to develop
a shared vision for the firm and to lead it through strategic decisions that will inevitably
have pain points for some. To do this, you need to be aware of how best practice in law
firm management is evolving. You also need to have the time, resources and training to perform your role well.

One of the most common complaints made by managing partners is not having the headspace to fully consider and plan for the firm's future - there are too many competing demands on their time. The result is that those who shout the loudest are dealt with first and longer-term strategic issues are deprioritised. Managing partners become firefighters instead of leaders.

With pressure rising at some global firms for full-time managers to return to fee earning and to contribute to the profit pools from which they are drawing, there is a danger that other law firms will take this as a sign that important management work can and should be deprioritised in favour of client work. This thinking appears to be already in place at international law firm Dechert (see Profile: Jason Butwick).

But, when partners insist on a short-term focus on profits, they put their firms' longer-term business sustainability at risk. If there's one lesson that can be drawn from the global recession and the collapse of law firms like Dewey & LeBoeuf within it, it's that a myopic focus on short-term financial targets can be catastrophic.

Every law firm would benefit from being led by full-time managing partners who are solidly grounded in modern business management principles - whether that comes from learning on the job, training by an accredited provider, leadership experience at a client organisation, specialist resources like Managing Partner or a combination of these.

And, once you, as managing partner, can demonstrate that you have the requisite
skills and knowledge to lead your law firm, your work needs to be given the respect that it truly deserves. Without it, your business will struggle from this financial year to the next without the ability to anticipate and prepare for the future. And how will that help your partners to increase their drawings?

Until next time,