More and more of my meetings with managing partners start like this: I’m worried about the Firm’s growth. Our corner-stone clients are asking for write-downs, we lost out to our top competitor on a couple of summer interns and a lateral recruit, our revenue is flat over the last couple of years and our top rain maker is threatening to leave if we don’t match our market’s net partner income. How can I get everyone pulling together in the same direction, with the same enthusiasm and sense of urgency?
I generally answer their question with a question: Have the values and behaviors of the influential partners and leaders changed over the last several years? Are the values you see exhibited in partners’ behaviors the same values and behaviors you believe need to exist for the firm to achieve its desired success? To be competitive? To win in the marketplace?
Can you stay competitive if the core group of leaders in the firm don’t share the same values? Not in the long-term. And, worse, your strategy can’t succeed, your tactics won’t work and you won’t be competitive unless the influencers, the people that everyone watches and emulates, are not together on the theory of why they stay together, what they value as partners and what contributions they agree to be accountable for to each other. As Prof. Peter Drucker, Harvard Business School said: Culture eats strategy for breakfast.
Today one of the key goals in law firms’ strategy development has been to find a way of meshing or modifying cultures that are flexible and innovative and where individuals take responsibility for results. The mission is to have everyone subscribe to the same set of core firm-wide success values and be accountable to behave accordingly.
What to do? First establish a base understanding of the values and corresponding behaviors of your partners. You do this by conducting a values and behaviors assessment. There are lots of tools out there, very detailed and not really focused on professional services firms. And the assessments borrowed from the business world generally take too long.
We have developed a short, simple online values survey which asks: What are the personal and business values of the partners, senior partners, practice group leaders, executive committee and managing partner? You should consider surveying the associates and staff as they impact the firm’s culture too.
We want to understand the values and behaviors they see in the firm today. Then we ask what values and behaviors need to be exhibited in the future for the firm to succeed. Compare the differences. None? Great, everyone is rowing in the same direction with the same intensity and desire to win. But if the future values and behaviors are significantly different than existing firm values and behaviors, you need to design mechanisms to reconcile the differences, resolve the contradictions and support those values that will drive the firm forward.
For example, In our Law Firm Values and Behaviors Assessment we ask what the partners value more: “Annual profits per partner, or long-term financial stability”. If 70% answer ‘profits’ and 30% ‘stability’ you have decide if there is any strategy that can accommodate these opposing values or work on creating a middle ground strategy.
Values matter. They drive the behaviors exhibited by the firm leaders, other partners and your staff. Thery are observed and noted by clients, outside lawyers, judges and perspective hires. If you are going to win in today’s world it is imperative that everyone is on the same values page which is where the path to accountability and growth begins.
Mark Chandler, former EVP, Chief Legal Officer and Chief Compliance Officer, Cisco Systems Inc. when talking about why he picks one outside law firm over another: “The differentiator for me and why I am loyal to a firm is culture — that is reflected in the chemistry, relationships, commonalities and connection I have with the legal service providers — whether a lawyer or other professional. There has to be a cultural affinity and alignment with my providers where their principles and mine mesh.”
Steve Daitch
Steve is an expert in law firm businesses, and his customized surveys and analysis of Law Firm Culture and Law Firm Values are an incredible value-add in EvolveLaw’s strategy and growth projects.
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To learn more on how we can help you understand your Firm’s culture visit www.evolve-law.com.