Simply put, Parkinson's Law states that, left unchecked, “work generates work” and “expenses rise to meet income”.  The counterpoint for the managing partner is that he or she has to be constantly at work eliminating and simplifying—reallocating resources to the right things.

In a sidebar item appearing in the Law Practice magazine some time ago, Patrick J. Mckenna wrote about “routines”:

“Your routines represent all of those memoranda, reports, e-mails and trivial matters that conspire to sap you strength and smother your ability to focus attention on activities that really are the highest value-added use of your time. Routines will get you into ruts, dull you senses, stifle your creativity, constrict your thinking, remove you from real-world stimulation and destroy your firm’s competitive vitality”

The word “management” implies accomplishing things through others. Thus, when I say the managing partner should be constantly at work simplifying and eliminating, what I mean is that he or she should build a cultural basis within the firm for doing so.  As Mckenna wrote, constantly question the way things are done and never rest on your laurels. As the managing partner, make it everyone’s job to simplify and eliminate—to preserve the firm’s energy and attention for the main things the firm’s success depends on.

Morepartnerincome.com is sponsored by Juris, Inc.  For information about Juris® products and services for increasing law firm performance and partner income, go to www.Juris.com.

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It is the pursuit of opportunities, not fixing problems, that separates excellent enterprises from the “also ran”.  An important rule for the managing partner to live by is, “Not all problems need to be solved, and of those that do, not all need to be solved by me”.

Problem-solving is often incorrectly viewed as Management’s job.  Opportunities, not problem-solving, should be top priority. But, what about those problems that do need to be solved—and solved by you?

It is important to understand what most people identify as a problem is the gap between the way things actually are and the way they should be.  Most problem solving simply closes the gap.  This only returns the things to normal expectations. That kind of problem solving adds no new value. It simply puts things back the way they should be. It treats the symptoms but not the “cause”.

If management is going to concentrate on opportunities, it must avoid problems. That means when you do have to tackle a problem, you should do so with a no-return policy. Look for the conditions that permitted the problem to occur and take steps to prevent reoccurrence.

With that in mind, excellent managers take problem definition seriously.  They ask five “Whys?”

Who and why?

What and why?

When and why?

Where and why?

How and why?

If your system crashes as a result of an electrical outage, the program gap is closed, the symptom solved, by restoring from backup.  It takes adding a temporary power pack that will allow an orderly shut down, or even better a backup generator, to solve the problem with a no-return policy.

Terminating an associate who provided misleading information on his or her résumé treats a symptom.  Improved interviewing, pre-employment testing, and verification of resume information is needed to tackle the problem with a no-return policy

Writing off an uncollectible account gets the issue behind you, but it takes improved client intake procedures, tighter no payment/no work policies and improved collection procedures to void similar problems in the future.

Recovering funds due to embezzlement only puts money back in the bank where it should have been to start with.  It takes improved internal controls and better management review of financial statements to protect the firm in the future.

You get the idea.  If management is going to concentrate on opportunities, it must avoid problems. It must select carefully those problems to be solved, and once selected, the problem should be dealt with in such a way that they will not have to be dealt with again.  Cure the cause; don’t postpone the cure by spending time treating symptoms. Adopt a No-Return Policy when it comes to problem solving.

Morepartnerincome.com is sponsored by Juris, Inc.  For information about Juris® products and services for increasing law firm performance and partner income, go to www.Juris.com.

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Lawyers appreciate two simple words “thank you”.  They take on our individual and business problems and make them better. They make our dreams and business goals a reality.  They make sure that our wishes are followed when we can’t. They are “doctors” of law. They often place our interests and needs ahead of their own. They do what they do for more than just the fee they earn. They have chosen to serve and those who do deserve our gratitude for a job well done. 

This post is a "lawyers appreciate" post as conceived by Julie Fleming Brown of Life at the Bar and Stephanie West Allen of Idealawg—10 full days of appreciation in the legal blogosphere. 

Morepartnerincome.com is sponsored by Juris, Inc.  For information about Juris® products and services for increasing law firm performance and partner income, go to www.Juris.com.

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 I take a bit of exception to Ed Poll’s post on How To Fire An Associate.

I do agree about the need for a termination policy and, as I wrote in the earlier post Law Firm Security Risk from Within, there are important security considerations any time someone leaves the firm. The steps related to a departing attorney or employee should be clearly spelled out. Responsibility for overseeing the implementation of those steps in a timely fashion must be clearly assigned with responsible reporting and oversight in place. This is too important to be handled in a casual fashion—it is not personal; it is strictly business.

There are clearly situations that call for Ed’s step-by-step scenario that concludes with the terminated individual being “escorted away from the premises!” However, if things have reached that point, there has usually been a management failure within the law firm.

Rest assured that the firm escorting that person away from the premises now has an enemy on the outside. You don’t need any more enemies than absolutely necessary. You need more alumni proud to list the firm on their résumé. You need friends and sponsors who will send you business, not cost you business.

Moving underperformers out of the firm is essential. A prerequisite for doing it right is a culture that fosters the concept that the inability to succeed in a particular place in a particular job doesn’t mean that the same individual could not be a success elsewhere. When hiring an individual, you had to try to answer three important questions:

Can they do the job?

Will they do the job?

Can they and will they in this environment with these people?

The "in this environment with these people" question is the toughest part. You do a disservice to the individual and to others by continuing employment of someone who is not succeeding in “this environment with these people." However, when you send someone into the job market as a terminated employee, you have placed them at a great disadvantage. You should make sure they, not you, are the cause. You hired them, and they deserve the opportunity to move to a new environment with different people where they can have an opportunity to succeed.

Termination is failure on the part of both parties. The best way to correct a hiring mistake is to counsel the individual out of the organization. Treated with dignity, that individual can be retained as a friend and alumni.

Morepartnerincome.com is sponsored by Juris, Inc. For information about Juris® products and services for increasing law firm performance and partner income, go to www.Juris.com.

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There are a number of studies that address issues surrounding lateral movement among law firms. Two important sources includeNALP, the National Association for Law Placement, and IOMA, the Institute of Management & Administration.

A NALP foundation survey looked into the issue of why laterals leave and what makes them stay. For managing partners, the important finding is that laterals don’t leave or stay for compensation reasons. At least compensation is not at the top of their list. This finding agrees with IOMA’s report that as far back as 1997, surveys indicated that higher compensation was one of the least important factors in getting lawyers to switch firms. What is number one on their list? It is something that midsized firms are equipped to deliver. It is professional development.

Midsized firms are in an excellent position to give lawyers exiting the mega firms what they are looking. The problem is two out of three lateral additions are turning out badly. Laterals represent a significant source of work-experienced lawyers and, unfortunately, most of the time midsized law firms are not successfully taking advantage of the resource. What is going wrong?

It all comes back to the selection process. It is easy to determine if a candidate has the needed qualifications. When you hire, you have confidence that they “can do the job.” The unknown is “will they” in “this environment” with “these people.”

IOMA points to these mistakes in the selection process:

• The firm relies on the word of a partner that a prospect is a “good catch” and skip normal due diligence. It usually takes 18 to 24 months to move a bad addition out of the firm. Hiring is too important to skip the basics. Partners need to agree on a regimen of steps that must be taken prior to offering a candidate a position with the firm.
• Making room for a good catch. No matter how good a candidate appears to be, adding a new lateral places stresses on the organization. Hire only for pre-defined economic and/or strategic reasons.
• Not doing adequate due diligence regarding the lateral’s expectation of bringing clients with him/her. The mobility of clients is almost always overstated leading to disappointment among firm partners and a drop in expected compensation for the lateral.

Successful addition of laterals is all about the screening process. The former President Reagan’s mantra, “Trust but verify,” fits the selection process well:

• Verify whether the candidate really has the credentials reported
• Confirm the experience listed on his/her resume.
• Understand his/her reasons for leaving the existing firm
• Check with his/her clients and personal references.
• Check with people that haven’t been listed as references that you think should have been listed on their resume
• Do a thorough conflicts check
• Check for complaints, insurance claims, and past investigations of the candidate or former partners.
• Determine the candidate’s financial status and perform a credit history check.
• Identify all of the clients the candidate has worked on, the type of work done, the billing arrangement, the primary client contact, and who at the former firm was the attorney in charge
• Review a multi-year history of billed hours, collected fees, billing rate, write offs and adjustments.
• Is the lateral bringing in additional staff? You must consider each as you would if hiring any new professional employee or staff

You must thoroughly understand the candidate’s current compensation arrangement and level of compensation for a multiple year period. Also, the candidate must clearly understand and agree with the compensation arrangement that will apply following their addition to the firm.

A lateral with a book of business is a small acquisition; treat it as such. Laterals bring their baggage as well as their book of business with them.

The step most often omitted by midsized law firms is testing the candidate in an effort to determine if the individual possesses the characteristics and personality traits that are likely to make them a success in the interviewing law firm. You should test all candidates using a professional testing service or using tools like the Meyer-Briggs typology test (available on the web) in an effort to determine if the individual “will do the job in your environment with your people”. If, like most firms, success in business development is a requisite skill, your test should also be targeted to determine the presence of personality traits conducive to relationship building and business development.

IOMA published the “Complete Guide to Lateral Hiring & Integration Best Practices for Law Firm Leaders” in 2005 containing case studies of actual practices in place at selected firms. It also includes an appendix containing the Lateral Recruitment and Due Diligence Checklist used by Sullivan & Worcester, LLP when pursuing a lateral addition at the partner level. Page 44 of the guide includes a test used by some firms for evaluating whether a candidate will make a good fit for their firm. Pages 48 and 49 include critical interview questions as well as a reminder of the questions you should never ask. For the firm without a track record for successfully recruiting and assimilating laterals, the publication is well worth its $299 cost. Another source that warrants your interest is the numerous articles written by Joel A. Rose of Joel A. Rose & Associate, http://www.joelarose.com and particularly his article titled A Primer on Due Diligence for Acquiring / Merging with Lateral Hires.

Morepartnerincome.com is sponsored by Juris, Inc. For information about Juris® products and services for increasing law firm performance and partner income, go to www.Juris.com.

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I previously posted concepts that involved individual achievement, and the post was received with its share of critics. Some were looking for motivational concepts and didn’t find what they were hoping for. Concepts like “Pros Play Hurt” convey expectations for excellence rather than provide inspiration. It takes both inspiration from the top and individual accountability among team members to forge a truly great organization. Great leaders understand what best ignites the passions of its people but they start with the best materials, outstanding team members.

The notion that what we are is determined through the eyes of those who judge us isn’t always a welcome concept, nor is the opportunity wedge. While people can always make decisions to expand the opportunities available to them, the failure to make such decisions has the opposite effect of denying to the individual those would-be opportunities. These are basic notions of personal accountability. Some people believe in life’s great lottery rather than the concept that we are accountable for and the product of our own decisions and actions. Does luck play a role in life? Are some of us born with superior abilities or advantages? Sure, but never forget that “chance favors the prepared mind.” You can possess a great talent and have enjoyed great advantages without benefiting from them in the end. There are inspiring stories of those who have overcome adversities to achieve great things in the eyes of others.

Morepartnerincome.com takes the perspective of law firm owners, not that of associates or non-owner employees in the law firm. Those associates and employees are the key to the firm’s success. As Jim Collins says, “first get the right people on the bus.” Mentoring of associates is an important asset-building function, and it should include an approach that encourages motivation aligned with the organization’s objectives. Mentoring is team building. It is cultivating the future partners or leaders of the firm. But law firms are only a finishing school. The finishing process starts by hiring people who have the training and knowledge to do the job. They have to have within themselves the motivational drive to do the job. Business recruiting is about playing the odds that new additions will be a success. You want to hire people who “can and will do the job in your environment with your people.” The difficult part of this hiring process is determining the “will they” part.

Everyone is motivated. They are not, however, all motivated the same way or for the same thing. There are seven life choices among which a law firm’s team member can allocate their energy and time: job, family, religion, civic activities, health, recreation and self-development. Each of those choices competes against all others. How an individual chooses to allocate their time depends on their individual values. Firms that make the “best place to work” list tend to be those that are most accommodating to individual goals. But even among the most accommodating there are limits. It is usually the failure of law firm management (or the inability of the firm in pursuit of its own objectives) to accept an individual’s unique priority of values that results in demotivation and eventual separation from the firm. Harmony has to exist between the superior “goals” of the firm and the secondary “goals” of the individual.

Every individual has their own pattern of strengths and weaknesses, and each allocates his/her interest differently among the seven life choices. No sound law firm is looking for a team of stepford people. Strength comes from diversity of personalities. But when you net it all out, the individual’s pattern of strengths and weaknesses and their individual goals must come together in such a way as to make them a positive contributor to the organizational goals of the law firm. Individuals with behaviors that send them off in a different direction from the firm, that endanger the firm, or that obstruct the success of others should go elsewhere.

This brings us to the issue of hiring professionals–recruiting at both association and lateral level. What separates a sound addition from a bad one is the individual—the candidate. The facts are that 60% of lateral additions usually turn out badly. Truth be told, most law firms do not have any better batting average in the selection of new graduates. It usually takes 18 to 24 months to move a mistake out of the organization. Hiring failures are costly and they are distractions to other members of the professional team and to the pursuit of the organization’s goals.

Many commercial organizations hiring at compensation levels equivalent to that of a new associate or an experience lateral use professional testing services. They use testing to identify the personality traits of candidates in an effort to determine if they have the motivational drive to meet the “will they” test. Likewise, testing before hiring can increase the odds that your selection will meet the “with our people in our environment” test. Professional skills are the easiest to determine, and they will not assure that a candidate will be a successful addition to your law firm team. You start by considering only those candidates with the requisite training and experience and then narrow your selection to those who “will do the job with your people in your environment.”

I contend that successful candidates will be the candidates who understood and accepted that they are always judged by others. They will be the candidates motivated to achieve excellence in the eyes of those who judge them, including the law firm’s clients.

Morepartnerincome.com is sponsored by Juris, Inc. For information about Juris® products and services for increasing law firm performance and partner income, go to www.Juris.com

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  “Leverage or not to Leverage?” seems to be the question now days.

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A reader posted the following comment to the May 12 entry titled: Client Satisfaction Questionnaire:

“Client satisfaction surveys are important not only to measure quality at your firm - but to also measure quality of firms to whom you may regularly refer your clients……… “

Great comment — why didn't I think of that?  Firms practicing the "rule of the fewest” and "concentration" will refer existing and prospective clients to other law firms when the prospect has needs outside of your firm’s areas of concentration.  When you do, you are going to be judged by the company you keep, i.e., the firm to which you refer the prospect.  You need to inspect with respect the job they are doing.  A modified client satisfaction survey is an excellent way to demonstrate your continuing concern that the client’s needs are being met to his/her satisfaction.

You build your relationship when you place the client’s interest above those of the law firm.  That is delivering superior value.  However, if your referral turns sour, then your credibility will sour with it.  So follow Regan’s rule, “trust but verify”.

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Policies and procedures are ONE WAY STREETS that direct people to move in a particular direction. The planning process must include the question: what policies and procedures are hurting us and what new ones are needed to help us?

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The planning process plays another important role. It is a tool for the firm’s leadership to unify the law firm. With the team on the same track, individual day-to-day decisions begin to move the organization forward in the same direction, i.e., toward the law firm’s agreed upon goals and objectives. I refer to this as “I65 North”. 

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