Best Practice: Getting law firm partners onboard

Asked and Answered By John W. Olmstead, MBA, Ph.D, CMC Q. I am the managing partner of a 90 attorney firm in Chicago. We have 45 equity partners, 20 non-equity partners, and 25 associates. We have a three member executive committee as well as other committees in place in addition to the managing partner. Five years ago we formulated a strategic plan and have been attempting to successfully implement it since that time. We have had limited success. We don't seem to be able to get our partners "on board" with the actual implementation. I will tell you - I am truly herding cats here. Any ideas on how to get these guys and gals on board? A. Getting your partners on board is always a challenge. The obstacles are almost too numerous to outline. Yet if law firms want to be successful in this turbulent environment they must embrace change and get their partners not only behind new strategies but often they must also be the ones to implement these strategies as well. Managing lawyers in general is like herding cats. But trying to manage "star partners" is a real challenge. They are the "hitters" upon which a firm's future often depends. True star partners are:

1. Building enduring client relationships
2. Consistently performing up to their full potential
3. Putting the firm first and implementing strategic imperatives

Star and other partners in the firm must continually balance their roles as producer, manager, and owner. Often, these roles may be in conflict. Also there are personal strategies and agendas as well. Actually, I don't think they can be managed - but they can be led. There is a difference. But in order to accomplish this the following need to be well designed, in alignment and balanced: Strategy The personalities, emotions and needs of your partners constrain a firm's ability to design and implement strategy. Keep in mind that firm leadership cannot order the troops forward; instead the troops (partners) must essentially vote with their feet to pursue a new strategic direction. Absent a crisis, partners tend to stay on track and support only modest adjustments to strategy. Organizational (Structure, Governance, HR Systems) When organizational characteristics - structure, governance, and HR systems (recruiting, training and mentoring, performance management, and compensation) are aligned with the needs of the partners and the strategy of the firm, they create the conditions under which strategy can be implemented effectively. Matrix and team structures are the norm.  Collegial partnerships, consensus based governance, and leadership at the pleasure of the partners, rules the day. The cats have the power and the leader serves to a large extent at their pleasure.

1. Look for ways to build consensus and create buy-in
2. Involve all partners in major decisions - more than input - but a say
3. Implement a first-rate partner performance management/review/evaluation system
4. Review and insure that your compensation system is fostering alignment
5. Provide as much transparency as possible
6. Review your organizational structure

Culture The firm's culture deals with its underlying core of beliefs and values, which shape the behavior of the firm. Nothing can weave new strategic and organization choices together and hold them in alignment better than culture. A strong culture can also provide enormous help in attracting, retaining and motivating stars. A strong culture is the glue that helps a firm overcome major obstacles, it can help foster major changes in strategy and or organization, and it can be a strong force for unity and coherence.

1. Work at building and managing the firm's culture.
2. Recruiting, compensation, training, mentoring, performance management - should also be deployed to reinforce the firm's culture.
3. Guard the firm's culture and keep in mind the impact that laterals, mergers, etc. might have upon it.

Leadership As the firm's leaders you and the other leaders in the firm are serving at the pleasure of your partners. You are probably elected by them. Your positional power is limited - sort of like the President of the United States and the Congress. As a result exceptional leadership skills are needed and each of you must master the skills of building consensus and facilitating decisions so your partners will agree with and support them.

1. Pick the right priorities
2. Pick the right fights and fight the right battles
3. Build support and coalitions through integrity and trust

For a good read on this subject – the book “Aligning the Stars” by Jay W. Lorsch and Thomas Tierney is an excellent resource. Good luck! Click here for articles on other topics Click here for our blog postings on partnership and governance 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.