2020’s Impact: A Day of Reckoning for Law Firm Leaders?

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A big thank you for the valued group of people with brilliant minds, creative ideas and generous hearts who joined in an exciting conversation on which this article is based: Tim Corcoran, Patrick Fuller, Heidi Gardner, Susan Manch, John “The Purple Coach “Mitchell, Kathleen Pearson and James Willer.

In anticipation of the market launch of “Who Runs The Am Law 200: An Analysis of America’s Largest Law Firms and Their Leadership“, ALM Intelligence brought together a distinguished group of industry thought leaders to discuss leadership and the role of executives in law firms. The agenda was laid back and rather informal, fueled by a shared interest and a recognition that the demographics and trends featured in the report are just the tip of the iceberg. Our starting premise, put in a nutshell by Heidi Gardner, Distinguished Fellow at Harvard Law School’s Center on the Legal Profession, set the stage exceptionally well: we need to recognize the formal leaders of the report studies by name only – it’s hers Title that defines them, not their traits, qualities or the ability to bring about change.

So what does it take to be a law firm executive – and what? should It takes? What is the impact of the pandemic on the role of managers? And perhaps most importantly, what potential impact can leaders have on the legal industry after 2020?

The process of (unnatural) selection

Industry insiders have long noticed the mismatch between the skills that make a lawyer more important – excellent attorneys, rainmakers, relationship building, customer service – and those that make an effective leader – humility, empathy, integrity, self-esteem. Yet it is the most successful lawyers – not executives – who are often given leadership roles and titles. Why the paradox?

Law firms face a number of challenges when it comes to attracting the right people to leadership roles. The ability to define and identify a person’s leadership skills is only one – and probably not the most restrictive. Choosing candidates for the top spot too often depends on an individual’s proven ability as a lawyer. Lawyers are reluctant to be led by someone who they believe does not have the exceptional skills or legal ability to make rain, even if that approach might be counter to their self-interest. “In a law firm, a leader’s influence is based more on relationship capital than business acumen,” said Tim Corcoran, law firm strategist and founder of the Corcoran Consulting Group. “As a result, relatively few top leaders are marketable as managing partners,” Corcoran continues. “Unlike corporate leaders with transferable general management skills, law firm effectiveness is often company-specific.”

The advantage of this qualification is of course in a professional service company: “If you know who your employees are, you have to understand the essence of the nature of your company,” as Kathleen Pearson, Chief Human Resources Officer at Pillsbury, quickly points out. Both she and Sue Manch, recently retired chief talent officer and recognized leadership coach and trainer, underscore the importance and value of trust that makes a leader effective – both in law firms and in the corporate world in general. However, trust and respect are not the same thing. Building trust requires open, honest communication. “Persistence, recognition when you don’t have all the answers, and vulnerability,” says Pearson, is an essential part of building trust. Similarly, some draw parallels between a leader’s ability to build trust through “personal communication with caring and humanity” during the pandemic and their ultimate ability to build trust in times of crisis.

The impact of the pandemic on lawyer leadership

This is an excellent transition into attorney’s role during one of the recent crises, the pandemic. Law firms overall fared better than most would have expected, but quite a few struggled. The question is often raised as to whether those firms that did not achieve financial gains and profits comparable to those of their peers also suffer from management failure or whether another dynamic was at play. Cross-industry studies show a clear connection between effective leadership and financial performance. In a year like no other, similarly situated companies have developed very differently. The likelihood that the effectiveness of the business leaders led to these results – in both directions – is high.

Research shows that lawyers tend to display anti-collaborationist behavior in times of crisis, notes Heidi Gardner, who specializes in researching intelligent collaboration. The pandemic, global unrest, and civil rights activism of 2020 created a confluence of events that are likely to send lawyers into a tailspin. Anti-collaborative behavior – becoming non-communicative, joining together in like-minded groups, increasing skepticism – have further increased the importance of leadership. In many companies, however, it was not the only leader with the highest title who rose. Instead, our discussion unearthed a variety of examples where others – whether other lawyers or businesspeople – came into the limelight.

Corcoran observed that as the stakes got higher – decisions around COVID brought with them fears of harming someone’s health or even death – it was usually a single executive who may have displayed previously untapped leadership skills. In addition, this person was often not the formal head of the company, holding the title of managing partner, CEO, or chairman of the board. This phenomenon is not all that surprising in context to those familiar with leadership styles. John “The Purple Coach” Mitchell, who coaches executives in and outside the legal department and is a co-founder of the Leadership Institute, notes that some people have a standard or natural leadership style that they tend to revert to during times of crisis. For those whose leadership style tends to be more authoritarian, a critical event can, for example, produce valuable qualities such as quick decision-making or targeted instructions.

Lawyers weren’t the only ones to pick up in the past 18 months, however. Businesspeople had their hard-earned opportunity to shine as business-critical questions turned to their areas of expertise – human resources, financial management, technology infrastructure, diversity and equity, and more. Some explain how lawyers regularly consulted business leaders during the crisis, asked “what’s right,” and admitted that their C-suite professionals “know more about it than they do … which is not often the case in law firms. Corcoran agrees, noting that law firm executives have recognized that they should have access to and listen to world-class business people. The discussion inevitably quickly led to the next significant question that Manch asked: “Will this last?”

Office manager of the future

Unfortunately, it remains to be seen whether business leaders retain their newly elevated status in all law firms. What is certain is that the industry is facing tremendously significant change that will test the skills of even the most seasoned and effective leaders – perhaps even more so than the pandemic itself. Pearson predicts that “Getting out of the pandemic will prove to be a It will prove to be much more of a challenge to running a law firm than it has been in the past year and a half. As we develop new ways of working and come back together, the trusted people that have been built or, in some cases, have been lost are put to the test. This is where real leadership will be crucial where we will start to see cracks. “

Others in conversation agreed. Challenges law firms face on their return to office include creating an inclusive culture, managing remote teams, and, at least in the short term, navigating a highly competitive environment for talent. Gardner connects the dots between diversity, leadership and performance. “Poorly managed diversity is destructive,” she says. “Well-managed and managed diversity? This is where leadership will make a huge difference. ”Leaders have the power to use their roles and influence to get better and better.

However, executive development alone cannot solve all of the challenges that law firms face. Mitchell explains, “What is tolerated in one law firm is not tolerated in other organizations. There is no good leadership development solution in a law firm until there are structural changes. ”Some of the structural changes proposed included questioning the value of tenure restrictions, creating a glide path back into practice, and introducing regular employee engagement surveys as a Instrument for measuring effectiveness and performance. In a broader sense, the partnership structure and the way law firms are paid and pay themselves further limit what is possible. To change all of that? Well, that requires effective leadership.

The report, “Who Runs Am Law 200: An Analysis of America’s Largest Law Firms and Their Leadership, “ is available exclusively on Law.com Pro. Users of Law.com Pro can download the report along with other reports from ALM Intelligence Fellows, here.

Marcie Borgal Shunk is President and Founder of The Tilt Institute, a law firm dedicated to unlocking new avenues for law firm growth through intelligence, innovation, and intuition. She specializes in helping law firm executives make better, more data-driven business decisions. Shunk is also a member of the ALM Intelligence Fellows Program.

Further information on the ALM Intelligence Fellows program can be found here.

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