Who Should "Run" Your Firm?
Engage an Executive Director
In 1995, the U.S. Government recognized my service mark, The Business of Law®. At that time, no one used the word "business" in the same sentence as "profession" when talking about the law. Since then, more lawyers recognize that they are in a service business, and the principles of business are now more central to how firms are run. Today even sole practitioners would be well-advised to engage an executive director. The cost-benefits favor the lawyer many times over although too few sole practitioners recognize this.
Take Your Firm to Higher Levels of Success
Large firms now are engaging professionals to run the business of their practice. For example, Pepper Hamilton recently engaged a non-lawyer to be the CEO; this wasn't a first, though only a few firms have moved in this direction. They are beginning to understand that it is the lawyer who can set the strategy and do what only the lawyer can do: get the business (marketing) and do the work (production). But, others - professionally trained and skilled as support for the law firm - can take the law firm to higher levels of success than would otherwise be the case.
Using Lawyers As Managers
Of course, in many firms the managers are still the lawyers themselves. There may be a CEO-Managing Partner (and Chair of the Management Committee), and then sometimes a Chairman of the Board (usually a former CEO-Managing Partner). Then there are department chairs, practice group chairs and office managing partners, all lawyers and all expected to manage the firm's business affairs while conducting their own practices. Such "managers" are still lawyers and they think like lawyers, not businesspeople. They are not necessarily the best choices to improve client service quality, marketing performance, lawyer training and development, and competitive effectiveness, as the problems that many firms have faced during the Great Recession suggest.
Decisions for Business Professionals
An example illustrates the point. Years ago, when I was a Chief Operating Officer of a mid-sized firm, I was approached by several partners who said that the woman working the switchboard was super bright, super good, and needed to be advanced. Their idea of advancement was putting her into the data processing department. Aside from the fact that this was a demotion, not a promotion, I reminded the lawyers that the receptionist was the firm's first point of contact with the outside world and that we should not risk replacing her with someone who might not be so good. What we needed to do instead was recognize her, reinforce her value, and increase her responsibility in her existing position. Smart lawyers should leave decisions like this to a business professional. The entire firm will benefit as a result.
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