Legal Business

The last word – the state of law firm leadership

With a spate of executive elections taking place recently, we ask the c-suite at leading City firms how management has changed over the last five years


CONSENSUS APPROACH

‘The command and control structure doesn’t generally work in law firms. Nonetheless, the last five years have seen a greater acceptance from partners for the need to operate more tightly and collectively. Partnerships will always have mixed feelings about their leadership. Leading a law firm is about managing ambiguity, ambivalence and disparate viewpoints.

All law firms have their own ways of choosing leaders. My own view is that, while an election undoubtedly confers authority, the collateral damage in many cases is unacceptable. If leaders can emerge through consensus that is preferable.’

Charles Martin, senior partner, Macfarlanes

 

PEOPLE BUSINESS

‘There’s been an electric pace of change in that the demands on law firm leaders have risen exponentially. At heart is the vital need to have a vision then to lay out a clear strategy as part of the whole firm to execute it.

Above all, though, it’s always about people: everyone needs to be working towards a common goal and they need to feel fully engaged with a firm’s vision and values. And key to that, especially in challenging times, is retaining a sense of fun.’

Tim Eyles, managing partner, Taylor Wessing

 

PARTNERSHIP BUY-IN

‘The power that the executive in a law firm has derives from the partnership. We’re governed by our constitution. Partners agree how much power they are happy to let management have. If management is seen to be acting competently and delivering a strategic vision while operating the firm efficiently, partners are happy for the management to get on and do its job. That will vary from partner to partner, of course. But if management delivers what it says it’s going to, I see no reason why partners should feel otherwise.’

Stephen Parish, chairman, Norton Rose Fulbright

 

‘If management is seen to be acting competently and delivering a strategic vision, partners are happy for the management to get on and do its job.’
Stephen Parish, Norton Rose Fulbright

COMPANY LAW

‘You accept that you’re managing a law firm and not a company. For firms like ours that want to continue to function as real partnerships, with partners having a voice, you would expect less unfettered power to be given to c-suites in a law firm than the equivalents in a commercial corporation.

At Travers Smith, over time, the dividing line between the senior and managing partner roles has fluctuated to reflect the personality doing each job. We see it working best if the scope of the role is slanted towards the strengths of the particular incumbent. Partners do know what they want from the senior team but how it’s been subdivided between those two top roles has quite rightly been allowed to ebb and flow a little bit.’

Andrew Lilley, managing partner, Travers Smith

 

COMMUNICATION IS KEY

‘Leaders have had to embrace technology and also the need that people have for greater communication. News travels fast and people expect instant access to things, so as a leader you have to be ahead of that. Greater awareness of what other industries are doing is key – law can’t be seen as this silo any more.

As long as you get the communication aspect right, the partnership model can be extremely nimble when it comes to decision-making. If you get that wrong, ultimately it starts to undermine the ability to make decisions from the centre.’

Lee Ranson, managing partner, Eversheds

 

NON-LEGAL LEADERSHIP

‘There’s been a growing recognition in law firms over the last few years as to the importance of effective law firm management. Law firms have recognised that engaging the best quality and fit of management talent is fundamental to success, regardless of whether that talent is a lawyer or not. I see our operational team as a critical component of our success – their expertise gives us a competitive advantage.’

Andrew Leaitherland, managing partner and chief executive, DWF

 

DEMOCRACY OVERRATED

‘During the last five or six years, management has had to become a lot more focused, a lot more hands on and much more proactive. Ultimately what partners want is a sense of direction from the top but also from leaders they fully trust. For all of us in leadership it’s worth always remembering that that trust is hard won and easily lost.

I’m a great believer in democracy but not always in choosing law firm leaders. Fundamentally you want the best person, not necessarily the most popular.’

Peter Crossley, European managing partner, Squire Sanders

 

STRATEGIC MANAGEMENT

‘What used to be a nurturing and nudging role for senior partners in many law firms has become much more of a strategic function, with responsibility for setting the agenda and driving change within the organisation. In that respect, management has moved from being reactive, or passive if you like, to being much more proactive.

Central leadership can make a difference but it would be a mistake to confuse what makes lawyers (and therefore law firms) tick with what works in other businesses. This isn’t just the “people business” angle – it’s about the fiercely autonomous, single-minded, client and output-focused hunger, paranoia and pride (as well as arrogance) that drives successful lawyers. So while leadership is important, you need to balance that with effective engagement with partners to ensure they buy into the change or strategy proposed.’

Paul Olney, practice partner, Slaughter and May

 

PREFERRED PARTNERS

‘In the last five years management in law firms has changed, in 15 it has transformed. In the old days you could be as incompetent as you liked and you’d be better than most of your competitors. Look at the firms that have met with serious problems or failures and you’ll probably find underneath them some poor leadership.

A very popular notion touted around is that management should have more authority and firms should run like corporates. To some extent it is true – they should have more autonomy – but at the same time I think you can destroy the ethos of partnership. The great thing about partnership is that people feel like they are in it together.’

Quentin Poole, senior partner, Wragge & Co