Best Practice: Characteristics of successful law firms - Basic building block 1

Asked and Answered By John W. Olmstead, MBA, Ph.D, CMC Q. My partner and I just started our firm two years ago. We have one associate attorney and one staff member. As we grow our firm what should we keep in mind so we don't repeat some of the mistakes that I have seen in other firms that have not been successful? A. I often refer to what I call the Basic Building Blocks of Successful Law Firms which are:

• Partner Relations
• Leadership
• Firm Management
• Partner Compensation
• Planning
• Client Service
• Marketing

Lets take the first one - Partner Relations. This is the foundation (bedrock) of a successful firm. A successful firm has a healthy partner culture - a good marriage. In such a culture partners share common vision and purpose, respect one another, shoot straight with each other, and have difficult conversations and discussions when needed and deal with issues and problems. In many firms this is not the case and these firms often are characterized by the following:

• Partner Defections
• Firm Splits and Break-ups
• Personal Fiefdoms
• Maverick Partners
• Hoarding Work
• Lone Rangers

Such firms are often doomed from the start. Firms that don't get this foundational building block right will build a firm on a shaky foundation. Before forming a partnership - go slow and get to know the other lawyer or lawyers and insure that the marriage makes sense, that you share similar goals and values, that you will be compatible, and you will be good partners. Once you have made the commitment - communicate, communicate, communicate and deal with issues in real time. I will address each of the other building blocks in upcoming posts. John W. Olmstead, MBA, Ph.D, CMC, (www.olmsteadassoc.com) is a past chair and member of the ISBA Standing Committee on Law Office Management and Economics. For more information on law office management please direct questions to the ISBA listserver, which John and other committee members review, or view archived copies of The Bottom Line Newsletters. Contact John at jolmstead@olmsteadassoc.com.