Follow my lead
The current economy and demanding market put more demands than ever on law firm leaders, but with the profession as a whole still undervaluing effective leadership, how can you embed its values in your firm? Simon Tupman gives his five top tips
We live in challenging times, and for law firms, having strong leadership will be essential for those wanting to survive and thrive during them. I recently conducted an online survey of over 100 ‘leaders’ (available on my website), 48% on whom indicated that "leadership" was "critical" to their future; a further 42% indicated it was "important". But 67% stated that, compared with five years ago, the challenges they face are far more complex; the most common challenges they identified were motivating their team, delivering on change and hitting targets.
Leadership in law firms seems more important than ever before, yet it is still a rare quality. So is there anything that can be done to change that, and if so, is it likely to be worth the investment in time and money?
What is leadership?
Many lawyers fail to appreciate the true nature of leadership, and equate it with management. While there may be overlap, there are some important differences: leadership is about creating change, whereas management is about improving the status quo; leaders focus on people, whereas managers tend to focus on systems; leaders have a long-term perspective, whereas managers tend to have a short-term perspective. As Richard Susskind observes in his book The End of Lawyers?: "The much bigger challenge for law firms is ensure their long-term health. This calls for leadership, vision and strength of purpose, quite different from those management skills that improve efficiency."
Traditionally, within the context of a law firm partnership, the word "leader" has been used to describe a person in a position of either authority or seniority, or both, such as a chair, senior partner or managing partner, sometimes with a responsibility for management or at least overseeing other managers. These individuals are usually there because of their influence internally or their innate ability to see the bigger picture, but not necessarily – unlike in the corporate world, law firms appoint people to leadership positions who have little or no formal training, education or experience. To approach leadership in such a happenstance way is a dangerous strategy.
Why is it important?
Rod Macqueen once described his leadership challenge in coaching the Australian rugby team as to lead "a group of individuals with diverse talents and unite them to a common cause". Although he clearly successfully overcame that challenge, since his team won the 1999 World Cup, he understood that a team of champions does not necessarily make a championship team.
Law firms work in the same way. They are unquestionably made up of talented individuals but, in my experience, many are not united, and do not have a common cause. Many simply operate as a cooperative, sharing office space and secretarial support fuelled by an ‘eat-what-you-kill’ mentality. This can lead to inefficiencies because people are not working together, missed cross-selling opportunities, poor performance caused by a lack of motivation, and many other problems.
Numerous global studies provide compelling evidence that leadership is the single largest determinant of business success. For example, AON Hewitt, widely regarded as one of the world’s leading HR consultancies has, since 2001, studied the factors that drive a winning leadership culture. The annual study, recognised for its global scope and research rigour, attracts hundreds of companies around the globe that seek insights on leadership development and employee engagement. They consistently provide evidence of the correlation between leadership and business success. Is it worth the investment? According to Jim Collins, author of the acclaimed Good to Great, the great companies he researched with effective leadership were distinguished by a return 6.9 times greater than the stock market average over a 15-year period.
And all studies tend to agree on one thing: motivated people perform more effectively than de-motivated people. In preparing for this article, I spoke to a number of law firm leaders, including David Sharrock, managing partner of Melbourne firm Sharrock Pitman, who described the role of leader as very much about the people: “My heart and soul is of more critical importance than all my plans and strategies. I work hard at building trust with the team. I try to lead as a servant who has been entrusted with great responsibility and not as one wielding power and authority. I always want the very best for my lawyers and I coach them toward reaching their full potential. The focus is never on what I can get out of them."
Effective leadership can be fostered in any law firm, of any size, as long as there is sufficient commitment and effective implementation. Here are my five top tips for getting started.
1. Get thinking about the future
Start a discussion among your partners about the future of legal services and the future of your firm. Ask questions such as:
· What are the critical issues ahead?
· How will those issues will impact on our firm?
· What should we do to prepare?
· How should we operate in three years' time?
· What sort of people will we need to recruit?
· What will your clients want from us?
· What impact will technology have on our services?
These questions are sure to focus your partners’ minds on the important issues. A good occasion for such a discussion is a firm retreat, or even your weekly or monthly partner lunches or catch-ups.
2. Find a vision
Every self-respecting law firm needs to have a vision – some idea of what it is trying to achieve and where it sees itself in the future – otherwise it will drift and be blown in any direction by market forces. The vision must be exciting, appealing and compelling to the people in the firm. It is lot easier to lead if partners are in agreement on the questions of want the firm wants to achieve and how it will operate. Sir Nigel Knowles, joint chief executive of DLA Piper highlighted the importance of a vision when I recently interviewed him for my book Legal Eagles (2010). He said of his firm’s growth: "You have to have a vision, and you have to be uncompromising in how you take it forward. We needed the discipline to have a vision, to develop a strategy, and to identify responsibilities. It was about turning a partnership into a proper business." An effective way to get your firm looking into the future is to present the following scenario to your firm's people: "Imagine you leave the firm tomorrow for a three-year sabbatical. When you return, you are amazed by the transformation. What is it that you see?"A simple way to manage this exercise is by online survey. Simply distribute the link to your team and allow them to answer anonymously. I often run this exercise before a partners’ retreat.
3. Stick by your standards
Having talent is one thing; having standards is another. One of Macqueen’s early challenges was to instil discipline into his team, both on and off the pitch, and to uphold their standards at all times.
Many firms attempt to articulate their standards or values but, in my experience, they are not always uncompromising in upholding them. Recently, I was facilitating a retreat for a small four-partner firm. It was having difficulties with one solicitor who, in spite of his undoubted talent as a litigator, was a law unto himself. Apart from his financial underperformance, he simply was not engaged at work, often failing to turn up for internal meetings. After the partners had articulated their values, I then asked them to consider if this litigator lived up to those values. The answer was clearly no. "So what’s he doing at the firm?" was my next question. Silence. My point is that your values count for nothing unless you are prepared to uphold and enforce them, even if it means dismissing someone of undoubted talent.
4. Learn from other leaders
There is no shortage of examples of organisations, including law firms, with good leadership. Leadership can be learnt through observation, mentoring and even study. Some firms may have clients whose insights on how to instil leadership may be especially valuable. Another option is to identify and appoint a locally recognised business leader to fill the role of non-executive chair. This person would have a mandate to oversee governance and to mentor the leaders of the future. And there is no shortage of programmes, courses and books available on the subject of leadership. Invest some time and money and inject some of that thinking into your firm.
5. Look to the future
Law firms need to appoint and support people with the right character, motivation and attributes to take the firm forward. Finding someone within the ranks is not always easy, because the role is a completely different one from practising law, with very different skill sets and challenges. Firms need to put in place an effective talent management strategy, offering support and orientation to prepare promising fee-earners to take on leadership roles. And they need to recognise and reward leaders for the work they do. Many firms make the mistake of valuing billable hours more than change initiatives (which is why some firms appoint outsiders to come in and fill the role of CEO).
Conclusion
Leadership will clearly be vital for those firms wishing to thrive in the future. As renowned leadership authors Jim Kouzes and Barry Posner remind us in The Leadership Challenge (Jossey Bass, 2007): “The domain of the leader is the future. The most significant contribution leaders make is not simply to today’s bottom line; it is to the long-term development of people and institutions so that they can adapt, change, prosper and grow.” This is clearly a heavy responsibility, and not one for the faint-hearted. But, done well, it can bring real rewards for the individual as well as the firm, as David Sharrock explains:
"As a leader, I have a lot of grey hair. It goes with the job description, because effective leadership requires a lot of sacrifice on my part. I sometimes think that I give more than I get. But, then again, there is nothing wrong with that, because therein lies the real reward and the real reason for me aspiring to become the very best leader that I can be. The journey really does make it all worthwhile.”
The leadership challenge is not just a personal one, but also a collective one for all involved in the delivery of legal services. The ability to lead lies within us all. It is imperative that we tap into that ability and rise to the challenges ahead. If we do, then not only will our firms be better off but so will the communities we serve.
This article first appeared in the May 2012 edition of Managing For Success, the quarterly publication of the Law Management Section of the Law Society of England and Wales.
Post your comments here.
We live in challenging times, and for law firms, having strong leadership will be essential for those wanting to survive and thrive during them. I recently conducted an online survey of over 100 ‘leaders’ (available on my website), 48% on whom indicated that "leadership" was "critical" to their future; a further 42% indicated it was "important". But 67% stated that, compared with five years ago, the challenges they face are far more complex; the most common challenges they identified were motivating their team, delivering on change and hitting targets.
Leadership in law firms seems more important than ever before, yet it is still a rare quality. So is there anything that can be done to change that, and if so, is it likely to be worth the investment in time and money?
What is leadership?
Many lawyers fail to appreciate the true nature of leadership, and equate it with management. While there may be overlap, there are some important differences: leadership is about creating change, whereas management is about improving the status quo; leaders focus on people, whereas managers tend to focus on systems; leaders have a long-term perspective, whereas managers tend to have a short-term perspective. As Richard Susskind observes in his book The End of Lawyers?: "The much bigger challenge for law firms is ensure their long-term health. This calls for leadership, vision and strength of purpose, quite different from those management skills that improve efficiency."
Traditionally, within the context of a law firm partnership, the word "leader" has been used to describe a person in a position of either authority or seniority, or both, such as a chair, senior partner or managing partner, sometimes with a responsibility for management or at least overseeing other managers. These individuals are usually there because of their influence internally or their innate ability to see the bigger picture, but not necessarily – unlike in the corporate world, law firms appoint people to leadership positions who have little or no formal training, education or experience. To approach leadership in such a happenstance way is a dangerous strategy.
Why is it important?
Rod Macqueen once described his leadership challenge in coaching the Australian rugby team as to lead "a group of individuals with diverse talents and unite them to a common cause". Although he clearly successfully overcame that challenge, since his team won the 1999 World Cup, he understood that a team of champions does not necessarily make a championship team.
Law firms work in the same way. They are unquestionably made up of talented individuals but, in my experience, many are not united, and do not have a common cause. Many simply operate as a cooperative, sharing office space and secretarial support fuelled by an ‘eat-what-you-kill’ mentality. This can lead to inefficiencies because people are not working together, missed cross-selling opportunities, poor performance caused by a lack of motivation, and many other problems.
Numerous global studies provide compelling evidence that leadership is the single largest determinant of business success. For example, AON Hewitt, widely regarded as one of the world’s leading HR consultancies has, since 2001, studied the factors that drive a winning leadership culture. The annual study, recognised for its global scope and research rigour, attracts hundreds of companies around the globe that seek insights on leadership development and employee engagement. They consistently provide evidence of the correlation between leadership and business success. Is it worth the investment? According to Jim Collins, author of the acclaimed Good to Great, the great companies he researched with effective leadership were distinguished by a return 6.9 times greater than the stock market average over a 15-year period.
And all studies tend to agree on one thing: motivated people perform more effectively than de-motivated people. In preparing for this article, I spoke to a number of law firm leaders, including David Sharrock, managing partner of Melbourne firm Sharrock Pitman, who described the role of leader as very much about the people: “My heart and soul is of more critical importance than all my plans and strategies. I work hard at building trust with the team. I try to lead as a servant who has been entrusted with great responsibility and not as one wielding power and authority. I always want the very best for my lawyers and I coach them toward reaching their full potential. The focus is never on what I can get out of them."
Effective leadership can be fostered in any law firm, of any size, as long as there is sufficient commitment and effective implementation. Here are my five top tips for getting started.
1. Get thinking about the future
Start a discussion among your partners about the future of legal services and the future of your firm. Ask questions such as:
· What are the critical issues ahead?
· How will those issues will impact on our firm?
· What should we do to prepare?
· How should we operate in three years' time?
· What sort of people will we need to recruit?
· What will your clients want from us?
· What impact will technology have on our services?
These questions are sure to focus your partners’ minds on the important issues. A good occasion for such a discussion is a firm retreat, or even your weekly or monthly partner lunches or catch-ups.
2. Find a vision
Every self-respecting law firm needs to have a vision – some idea of what it is trying to achieve and where it sees itself in the future – otherwise it will drift and be blown in any direction by market forces. The vision must be exciting, appealing and compelling to the people in the firm. It is lot easier to lead if partners are in agreement on the questions of want the firm wants to achieve and how it will operate. Sir Nigel Knowles, joint chief executive of DLA Piper highlighted the importance of a vision when I recently interviewed him for my book Legal Eagles (2010). He said of his firm’s growth: "You have to have a vision, and you have to be uncompromising in how you take it forward. We needed the discipline to have a vision, to develop a strategy, and to identify responsibilities. It was about turning a partnership into a proper business." An effective way to get your firm looking into the future is to present the following scenario to your firm's people: "Imagine you leave the firm tomorrow for a three-year sabbatical. When you return, you are amazed by the transformation. What is it that you see?"A simple way to manage this exercise is by online survey. Simply distribute the link to your team and allow them to answer anonymously. I often run this exercise before a partners’ retreat.
3. Stick by your standards
Having talent is one thing; having standards is another. One of Macqueen’s early challenges was to instil discipline into his team, both on and off the pitch, and to uphold their standards at all times.
Many firms attempt to articulate their standards or values but, in my experience, they are not always uncompromising in upholding them. Recently, I was facilitating a retreat for a small four-partner firm. It was having difficulties with one solicitor who, in spite of his undoubted talent as a litigator, was a law unto himself. Apart from his financial underperformance, he simply was not engaged at work, often failing to turn up for internal meetings. After the partners had articulated their values, I then asked them to consider if this litigator lived up to those values. The answer was clearly no. "So what’s he doing at the firm?" was my next question. Silence. My point is that your values count for nothing unless you are prepared to uphold and enforce them, even if it means dismissing someone of undoubted talent.
4. Learn from other leaders
There is no shortage of examples of organisations, including law firms, with good leadership. Leadership can be learnt through observation, mentoring and even study. Some firms may have clients whose insights on how to instil leadership may be especially valuable. Another option is to identify and appoint a locally recognised business leader to fill the role of non-executive chair. This person would have a mandate to oversee governance and to mentor the leaders of the future. And there is no shortage of programmes, courses and books available on the subject of leadership. Invest some time and money and inject some of that thinking into your firm.
5. Look to the future
Law firms need to appoint and support people with the right character, motivation and attributes to take the firm forward. Finding someone within the ranks is not always easy, because the role is a completely different one from practising law, with very different skill sets and challenges. Firms need to put in place an effective talent management strategy, offering support and orientation to prepare promising fee-earners to take on leadership roles. And they need to recognise and reward leaders for the work they do. Many firms make the mistake of valuing billable hours more than change initiatives (which is why some firms appoint outsiders to come in and fill the role of CEO).
Conclusion
Leadership will clearly be vital for those firms wishing to thrive in the future. As renowned leadership authors Jim Kouzes and Barry Posner remind us in The Leadership Challenge (Jossey Bass, 2007): “The domain of the leader is the future. The most significant contribution leaders make is not simply to today’s bottom line; it is to the long-term development of people and institutions so that they can adapt, change, prosper and grow.” This is clearly a heavy responsibility, and not one for the faint-hearted. But, done well, it can bring real rewards for the individual as well as the firm, as David Sharrock explains:
"As a leader, I have a lot of grey hair. It goes with the job description, because effective leadership requires a lot of sacrifice on my part. I sometimes think that I give more than I get. But, then again, there is nothing wrong with that, because therein lies the real reward and the real reason for me aspiring to become the very best leader that I can be. The journey really does make it all worthwhile.”
The leadership challenge is not just a personal one, but also a collective one for all involved in the delivery of legal services. The ability to lead lies within us all. It is imperative that we tap into that ability and rise to the challenges ahead. If we do, then not only will our firms be better off but so will the communities we serve.
This article first appeared in the May 2012 edition of Managing For Success, the quarterly publication of the Law Management Section of the Law Society of England and Wales.
Post your comments here.
