Originally published in The Legal Intelligencer/law.com
Smart Strategy
Glaring statistics about associate retention, dismal track records with lateral hires and the revolving door of C-suite professionals shine a harsh light on Big Law workplaces. In high-stakes environments, harbingers of attrition may be lurking in even the most welcoming cultures. Gallup studies attribute most variability in engagement to “middle managers.” Within law firms, this suggests partners may hold the key to transforming their firms into sought-after opportunities with staying power.
Yet not all partners have the skills they need to take on the role of people management and development (let alone the mandate or predisposition). Traditional models of lawyer development—apprenticeship or osmosis (a.k.a. sheer proximity will result in growth) simply didn’t account for teaching how to motivate or develop others. Nor did they place the burden on partners, but instead encouraged the most ambitious of associates to forge their own path.
Times have changed. Structural, generational and workplace trends are redefining the professional development landscape. There is a new model emerging—one which recognizes the value of human skills in client development and talent retention and acknowledges the firm’s responsibility in helping budding lawyers build these skills. Yet today’s partners, raised by wolves (OK … perhaps not quite that dramatic), typically have notable gaps in the areas most needed today. One area, in particular, few get the training they need to be most effective in leadership.
Leadership Skills as the Lynchpin
Leadership skills are emerging as the lynchpin to engagement, development and retention. Leadership skills include the ability to motivate a team, spearhead an initiative, manage conflict, create enthusiasm for a firmwide strategy, demonstrate the courage to make difficult decisions, and more. All of these abilities have the power to ignite transformational shifts in law firm workplaces.
Engagement and Productivity:
Substantial Cost: Gallup studies underscore a strong correlation between management quality and employee productivity, engagement and well-being. They estimate the cost of disengaged employees is $1 trillion per year. In legal, with associate attrition rates of 1 in 4 and lateral success rates of just 50%, lawyer losses alone likely cost the sector upward of $10 billion.
Finding Time for Empathy: When partners and leaders foster a sense of belonging, make employees feel valued, and provide clear expectations and feedback, they energize those around them and cultivate more productive cultures. This involves active listening, regular check-ins, and genuine interest in employees' personal and professional lives, all expressions of empathy.
Yet in the words of one practice group leader, “I don’t have time for empathy.” Providing partners with the tools they need to understand empathy, distinguish empathy from problem-solving, empower others and foster trust not only helps improve team performance, but also emboldens the partners themselves to be better at client service, business development and streamlined delivery. A win all around for the firm and its people.
Lead or Manage: The emphasis of many law firm leadership efforts and metrics is squarely in the realm of management. Budgets, staffing and matter management keep the trains running on time. Yet it is leadership that determines where the trains are headed and how fast they’ll get there. Directing and training partners to align, influence and motivate others can be the difference between a strategic plan that collects dust on a shelf and one that propels a firm to new heights.
Development
Generational Disconnects in Learning Styles: Developing others is an essential aspect of every partner’s role in a law firm. In many firms, generationally, the most substantial segment of their partner class is Gen X. Gen X leans into a largely individualistic approach to learning. They are of the “give it to me and let me run with it” mindset, preferring self-directed learning. The generations below them, in contrast, millennials and Gen Z, tend to learn best with a more guided approach, whether being taught or shown how to be most successful. It is this disconnect, perhaps more than any other, which may be hindering associate development and putting greater onus on professional development teams to make up the difference.
Filling in the Gaps: The laser focus on associate development in law firms can often overshadow the critical development needs of partners and professionals. It exacerbates the already existing gap in development and may leave partners and professionals without the critical tools they need to be effective in supporting and engaging those around them. Partner development programs can focus on enhancing leadership skills, strategic thinking, business acumen, and client relationship management. Many professionals will benefit from the same, as well as project management and team dynamics.
Retention:
Why People Stay: Various studies in the legal industry point to why people choose to remain at—or leave—their firms. The No. 1 reason partners leave, for example, is lack of confidence in firm management and strategy (Major, Lindsey & Africa). Leopard Solutions reported 90% of women leave Big Law due to law firm culture. Equipping partners and leaders with the tools and resources they need to be most effective in their roles will mitigate these challenges, helping to cultivate positive, inclusive cultures and boost retention.
Leading Self to Lead Change: An often-overlooked component of driving change at an individual team, practice or firm level is the ability to first lead one’s self. Enhanced skills built from a foundation of deeper self-awareness, a growth mindset and personal responsibility empower partners to more successfully guide their firms forward. It can help them achieve objectives ranging from adoption of AI tools to enhanced matter profitability to expanded client relationships.
The Need for Conflict: Advanced and sophisticated skills can take partners and the firm one step further. Often, law firms confuse the absence of conflict as a sign all is well. It is not. Lack of dissension in the ranks typically stems from deep-seated issues indicating a fear of speaking up. Conflict in any relationship or organization is healthy and normal. Equipping partners with the tools to surface and manage disagreements and make difficult decisions helps to alleviate stressful situations, enhance employee wellbeing and promote safety and inclusivity, all of which can improve retention.
The Path Forward
Talent is the competitive advantage of the future in legal. Savvy firms that take steps to bridge the gap in leadership skills today will gain strides, enhancing their strategic position for years to come.
Key strategies to consider include:
Core Competencies: Establish a clear, comprehensive set of core competencies for all lawyers around human skills including leadership, motivating others, managing conflict and more.
Personalized Development Plans: Create customized development plans that address the specific needs and goals of each partner and each cohort within the firm.
Mentorship and Coaching: Hire experienced mentors and coaches to provide guidance, support, and accountability for partners on their leadership journey.
Leadership Training Programs: Invest in high-quality training programs that cover a wide range of topics, including managing self, influential communication, goal-setting, leadership styles and more.
Foster a Growth Culture: Encourage a culture of continuous learning by providing opportunities for professional development, modeling the importance of learning, encouraging personal responsibility for growth and establishing individual budgets for external self-improvement (e.g., books, online courses, etc.)
Leverage Technology: Utilize technology tools to enhance learning and development, such as virtual classrooms, online learning platforms and mobile apps.
Firms willing to invest today in equipping partners with the fundamental leadership skills required to enhance engagement will benefit from higher workplace satisfaction, lower attrition rates and overall more productive (and profitable) cultures for years to come.
Reprinted with permission from the [November 19th edition of the Legal Intelligencer] © 2024 ALM Global Properties, LLC. All rights reserved. Further duplication without permission is prohibited, contact 877-256-2472 or asset-and-logo-licensing@alm.com.