While the practice of law continues to undergo many changes, one thing remains the same. Law firms will always need attorneys with energy, experience, and skill to survive. Smart firms help their people to realize and reach their fullest potentials while there are still other law firms that take a much narrower view of their relationships with their attorneys.
For obvious reasons, law firm partners will invest untold amounts of time, money and energy into their client relationships. But what if these law firms invested similar energy into the people they rely on daily? Most probably, the firm would find increased job satisfaction, higher productivity and reduced turnover.
We recommend law firms create an Attorney Relationship Management System (ARMS) to prevent poor performance, low morale, and turnover. Contrary to what smaller firms may think, a system like this is not only applicable to large law firms. This system applies to any sized firm wanting to improve attorney performance or hire solid attorney candidates in the near future.
Foundational Components
Before launching an Attorney Relationship Management System (ARMS), we recommend starting with assessments of three key areas that include:
Advanced Components
Once these 3 key areas are assessed, the firm can further the development of an effective ARMS system by focusing on advanced components such as:
We believe all components are essential to develop thriving long term relationships. Each of these areas is discussed in further detail below.
**Download Foundational Components Graphic
Everyone should understand the culture of the firm today and the plan is for making it better.
Certain aspects of a firm’s culture can weigh more heavily than money on the success or failure of a relationship with a successful lawyer. Small and mid-sized firms who typically offer a narrower scope of opportunities have to work harder to create cultural factors that outweigh the perceived benefits in larger firms.
In this phase of creating an ARM system, we recommend soliciting input from all attorneys in several key areas including:
Objective: Ensuring that the firm’s culture is a benefit to the recruiting and retention process
Process Steps
Process Deliverables
Among other things, a good culture includes transparency, fairness, a commitment to training and development, lifestyle blend, and strong communication. A commitment to diversity, inclusion and equity also contributes to a strong firm culture.
Everyone should understand the drivers of profitability and have the ability to improve their results.
Economic factors are not viewed in isolation but are afforded significant weight. Poor profitability is an indication that a lawyer is struggling in the firm’s environment. Struggling lawyers often suffer from poor business hygiene, weak work ethic, poor training, insufficient supervision or mentoring , or lower quality work. Strong profitability is often an indication that a lawyer has gained enough valuable skill sets to thrive in the firm’s existing environment. Profitable lawyers may also benefit from preferred client and case assignments, which is a potential fairness issue.
Objective
Evaluating the factors that affect profitability and address any inconsistencies in pay and performance that could lead to turnover.
Process Steps
Process Results
As mentioned earlier, profitability is an important factor in the evaluation of attorney performance. Providing attorneys with the tools, training and guidance to practice profitably will lead to healthier long term relationships.
Everyone should understand how they are doing and have the information they need to progress.
Once a firm gains a clear understanding of each lawyer’s financial performance and pay level, it is necessary to look deeper into performance in qualitative areas. We recommend measuring the progress of each lawyer, including those who have left in the last five years, against a model set of criteria. Firms who have not taken the time to document the necessary practice skills and the expected timeline (model criteria) for developing these skills should undertake that process first.
Performance evaluation systems, properly administered, can ensure attorneys have the information they need to succeed in their roles.
Objective: To ensure that the firm has the necessary evaluation tools and processes to reduce the likelihood of losing successful lawyers from inadequate performance measurement systems.
Process Steps
Process Results
Most attorneys, particularly young attorneys, appreciate clear expectations and advancement criteria. Transparency, continuous feedback, and consistency in the application of advancement criteria are equally important.
Once the initial assessment phase is complete and the indicated improvements areas are addressed, a firm can begin to develop a bond with their people that transcends money by advancing the development of the Attorney Relationship Management System.
In addition to a healthy culture, a solid economic model, and effective performance evaluation systems, we recommend implementing the components described below. All these components when properly managed, can lead to more successful long-term relationships, a more efficient use of time and resources, and better hiring and advancement practices.
Everyone should appreciate the firm is committed to fair processes and availability of opportunities
A solid practice planning process will help guide the right people to the right roles in their firm. It will also ensure that individual lawyers strategically consider their career choices while there is still time to make changes. The practice planning process should start in the first year a lawyer is hired. A well-structured process will help ensure that all lawyers receive senior-level attention, feedback, and direction. It can also help reduce the possibility of overlooking talented lawyers. The process also helps identify those attorneys who can progress more quickly and those who may not fit.
The strategic elements of the process include:
Objective
Improved attorney performance, a strong career development process, and better retention of attorneys.
Process Steps
Process Results
In our experience, the practice planning process does not improve the performance of those who are poorly suited for their role or not a cultural fit. In other words, the process will not turn a C lawyer into an A lawyer. What we have experienced, however, is that a properly executed practice planning process supports the retention of top performers, promotes stability among good performers, and identifies those better suited for other roles or practices.
Everyone should understand who is getting ahead and why.
Fairly compensating and promoting nonowner lawyers (associates, income partners, counsel, of counsel, etc.) is best accomplished using a structured process. We suggest a transparent process that includes:
Additionally, a reward system is most effective and credible when lawyers and firm members can easily comprehend the results of the process. It is important that the firm commit to a pay-for-performance work environment.
Objective: A compensation structure that promotes long term success and establishes a clear connection between behavior and compensation.
Process Steps
Process Results
Organizational development on this scale works best for firms who have transcended the start-up phase and desire to build long-term organizational value. It is hard work, often resisted in the early stages, and threatening to some. Investing the time, however, to write these policies, customize them to the firm’s culture, consider best practices and market influences, and apply them consistently can result in a more productive and satisfied lawyer group.
Enabling lawyers to reach their full potential faster
Law firms are more likely to identify their future leaders and implement succession plans when they initiate a training process early in a lawyer’s career. Focusing on attorney development early also gives law firms a competitive advantage in attracting and retaining the most talented lawyers.
The goals of an attorney development system include:
To achieve these goals, we recommend an approach that includes a combination of in-house and external resources. Smaller firms may have to rely more heavily on external training, which requires a focused approach to ensure affordability.
Objective: The training and development program should result in increased profitability, reduced turnover, and better client service.
Process Steps
Process Results
A strategic approach to staffing (aligning client work with training needs or developmental opportunities) although challenging, can also materially speed up attorney development. Client collaboration is often necessary, and creating economic incentives (cost savings) for using junior staffing can make strategic staffing possible.
A quality attorney development system that includes these essential elements, systems and processes enhances a firm’s ability to operate more profitably and helps ready lawyers for future leadership and management positions.
Attracting and retaining best fit lawyers whose association with the firm transcends money
Recruiting and hiring processes are often a candidate’s first introduction to a firm. It is important to take full advantage of the opportunity to make a positive first impression. A well-defined recruiting strategy, with an emphasis on diversity and inclusion. And a thorough hiring process can help improve the chances of hiring good fit candidates.
The goals of a law firm recruiting and hiring process include:
Strategic recruiting requires a firm to carefully consider the most important attributes of a successful attorney. Some firms review their previous attorney hires and develop model or role specific criteria. Other firms focus more on academic credentials first and personality traits second. It is equally important to consider the best candidates who can help the firm compete in the modern legal environment.
Smaller firms must take a more deliberate approach because they have a lower tolerance for turnover costs and disruption. Regardless of firm size, everyone benefits from a strong recruiting and hiring process.
Objective: To identify, attract and successfully hire attorneys that fit the practice and culture of the firm
Process Steps
Process Results
We appreciate the recommended approach to recruiting and hiring seems onerous, especially for smaller firms who have less in-house human resources support. Some firms rely on recruiters for much of the process work, which we think is a mistake. The good news is that outside help is available and applications exist to automate much of the process.
Creating a natural inclination toward collaboration and service
The employee experience or firm life, has a tangible impact on employee satisfaction. Beyond pay, benefits and case assignments, how a firm is run, communication systems, and how easy or difficult it is to interact with firm owners, management, administrative staff, and third party providers, can have a positive or negative impact on firm life. Ease or difficulty of tools (software, ergonomics, technology, etc.) and processes can also impact the employee experience. For example, firms using outdated technology may lose motivated attorneys who fear their skills sets will diminish if they stay.
If daily life at the firm creates friction and anxiety, reduced productivity and even turnover can result.
Objective: To ensure that firm life is a positive and nurturing experience
Process Steps
Process Results
It is much easier for happy employees and staff to do their jobs, collaborate , and project a positive image to clients. One poorly designed process, toxic personality, poor attitude, or outdated policy can negatively impact firm life. If the issues are severe, good people will leave or worse only stay for the money
Everyone should appreciate the firm is concerned for their total well-being
Associates are often balancing what may seem like impossible demands on their time. Financial pressures related to student loans and cost of living, family commitments, or demanding work relationships, can all make staying focused at work a challenge. As a lawyer matures and builds a good support network, balancing work and personal commitments become more manageable.
Firms who care about their lawyers on this level and offer structural support and advice can build goodwill and morale among their lawyers. Providing access to resources in the areas of financial counseling, family counseling, managing conflicts, change management support, and career coaching are all helpful.
Flexible schedules, remote working, and health, welfare and retirement benefits are also key to work/life blend programs. We also recommend referring more serious counseling services including substance abuse, work-related harassment, and other more difficult challenges to trained human resource professionals and attorneys.
Objective: To create a work/life blend environment that goes beyond the typical work for pay approach
Process Steps
Process Results
At first glance, programs on this level can seem only cost-effective for larger firms, but not always the case. Often, a firm can find outside advisors who will provide services at no cost. For example, financial planners and the firm’s bankers are often happy to help young attorneys who need financial advice and support. Career coaches do not necessarily have to come from the outside, but cost effective outside resources also exist.
A relatively small investment in support services on this level can lead to a less distracted attorney and produce exponential returns. Consider, for example, the impact in terms of profit a 10% improvement in work quality and productivity could create.
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