Managing Partner – More than Just a Highly Desired Designation
Law firms need clearly defined criteria when selecting a managing partner
Every law firm has its share of rainmakers, intellectuals, enforcers and senior partners. In many mid-sized and smaller law firms, the managing partner is chosen from one of these groups, based on one specific role and the importance the firm gives to that role.
I often ask my clients whether their firm has defined criteria for the appointment of a managing partner. Has it taken the time and effort to lay down guidelines with respect to the selection process, delegation of authority and power, role, responsibilities, duties, tenure and other relevant issues?
In most cases firms claim to have answers to all my questions in their minds. However, when they consider the actual decisions they have made in the past, they see that rarely have these points been covered.
The appointment of the managing partner is on many occasions a matter of convenience or a continuation of a pre-established practice. The founder, senior-most partner, or the partner who brings in the most business is not necessarily the best choice to be nominated as the managing partner.
At times, partners opt for a “safety first” approach by pushing the case for a conformist and cordial managing partner, rather than one with all-round managerial skills and an appetite for expansion.
Where a managing partner is chosen based on his or her exceptional performance in a specific role – such as bringing in new clients – extra caution must be maintained to ensure that other relevant factors that make or break a law firm are also nurtured. It is necessary to avoid a situation where aspects such as professional development, quality control, recruitments, relationship management, partner coaching – all of which are equally important for the success of a law firm – are neglected in favor of skills in business development.
Many firms have dedicated departments and partners who take care of the planning and strategy for the various aspects relevant for the functioning of a law firm, and most partners are part of the decision-making process. Nevertheless, as in every other commercial organization, an overseer is needed to ensure that all the cogs in the wheel are running smoothly and to step in whenever a cog needs oiling. This is where the addition of the word “managing” before a partner’s designation suggests demanding responsibilities: it cannot be considered merely as a prefix, added as a sign of respect or authority.
One fact that must be accepted by all law firms is that a managing partner’s billable hours will considerably reduced, owing to the additional responsibilities that need to be undertaken as part of running the firm. The managing partner has a fine line to walk in order to create a balance between maintaining a positive environment at the firm and taking hard decisions for the firm’s growth. A reduction in the billable hours may be offset by increased rates, but never by taking time away from running the firm. In any event, improved all-round management will improve the profitability of the firm.
A common denominator among successful firms is the presence of dedicated and dynamic managing partners with a focus on growing the firm in totality, rather than just in specific areas of comfort.
