Biglaw, Boutique Law Firms, Partner Issues, Small Law Firms

Reinventing The Law Business: A Potential Impediment To Growth, Culture, And Client Development (Part 2)

If you run a law firm, you have to get “out and about” and talk directly with everyone involved in the enterprise.

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Bruce Stachenfeld

Bruce Stachenfeld

In my last article, I wrote about the problems that arise when a law firm gets too big for a single person – a single brain – to be able to keep track of everything that is going on within the firm, including not only legal matters with clients, but culturally as well. Speaking from my vantage point as managing partner of my law firm, I identified two major concerns that flow from this situation:

The obvious first problem is that I don’t know if bad things are happening, even though I am responsible for them. For all I know a partner is abusing an associate – a lawyer is mistreating a client – or any of a myriad of bad things is going on.

The second problem is even harder, which is how does each lawyer know what the other lawyers are doing?  This is a pernicious issue and has numerous repercussions. For example, if lawyer A doesn’t know that lawyer B is an expert in widget law, she will miss the opportunity when the client says to lawyer A:  “I wish I could find a widget lawyer somehow…..”

I promised in my last article to do my best to come up with solutions to the first problem in this (second) article and in my next (third and last) article to come up with solutions to the second problem. Here are my solutions to the first problem, i.e.. how does the boss learn if bad things are happening:

First – I make it super clear – incredibly clear – ridiculously clear – that not only will I not shoot a messenger that gives me bad news; instead, I will laud that messenger. This cannot be overdone or overstated. I have to assume that people at a lower rung on the ladder will be afraid to speak up against someone higher on the ladder. This is simple self-preservation and human nature. If someone summons up the courage to do so, it is important for me to strongly validate that action. Indeed, if someone really does speak up and gets shut down (or worse) for doing so, that result spreads like wildfire underground, and it will be a long time before I get any important information from the rank and file.

Second – I have learned I have to be even more proactive. I have found I learn a ton by periodically meeting with different groups at the firm. For example, I meet with the junior associates – the summer associates – the mid-level associates – the paralegals – the administrative team – the associates en masse – and so on. I don’t do this perfectly, of course, and sometimes kick myself for not doing it enough, but I make it my business to do so. These meetings always start off awkwardly but, once it is clear I am super sincere about earnestly soliciting guidance and advice and will take it seriously, people open up and I learn what I need to know.

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Third – I walk around and talk informally with people. Actually, being honest, I am terrible about this. I don’t do it enough. I have the excuse that I am busy, but it is just an excuse. I know I am missing out by not doing this and I should do it more. Indeed, today I am going to spend some time just wandering around!

Fourth – I have found that it is critical to identify others in the associate ranks that are very “into” the firm and enlist their aid. I have found that typically there is an associate (we sometimes jokingly call a “quidnunc” (look it up)), who always knows what is going on and will give me the lowdown on things that need fixing, someone who is upset, someone needs help, etc. There is nothing better than sitting down for coffee with a quidnunc – trust me here.

Fifth – I have learned over the years that I absolutely cannot achieve a goal like this by myself. Somehow I have to get my partners to join with me. I have found that – luckily – in my firm this is not a problem. I am not “just saying” that I have good partners who genuinely care about the firm and those who work here – I genuinely do. Long ago, I tried to be responsible for this initiative myself and I plain old failed. Today, my partners do as much in this area as I do and, many of them do much more. It is a group effort. My influence is critical in making clear – as managing partner – how important I believe this is for our success that we do not let this problem harm us, but ultimately I am one out of about thirty partners.

Sixth – I make it my business to interact as much as I can with clients even if I am not doing the day-to-day work. I don’t just look to avoid screw-ups – I do a lot more than that. I probe to find out whether the client is incredibly over-the-top over-satisfied and thrilled with our law firm and its services. If not, then I consider this an alarm-bell problem that must be promptly rectified. I have learned I will not get this information by just sitting in my office. I have to go out and get it firsthand.

Along these lines, there is a great book written by Andrew Grove, the late founder of Intel Corporation, called Only the Paranoid Survive (affiliate link). I read it long ago, but in it Grove emphasizes how easy it is – and how dangerous – for the CEO to cut herself off from what is happening with the outside world. She is the last to know that customers are pissed off since the pissed-off customer rolls his eyes at the salesman (who is way down in the pyramid) and no one wants to deliver this news up-chain. The CEO is sometimes the last to know of critical problems. Hence, the title “Only the Paranoid Survive”.

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To summarize all of the above – which neatly knits into a single concept – if you are running a law firm (or any business) and want to solve, or avoid, this pernicious and dangerous problem, you have to get “out and about” and talk directly with everyone from the people at the bottom of your administrative team to your most senior partners to your clients and everyone else that has an effect on your enterprise. If you just sit in your office, you simply have no clue what is happening good or bad. And, since you are running the show, you are responsible, whether or not you know about it. Ignorance is no excuse.

Earlier: Reinventing The Law Business: A Potential Impediment to Growth, Culture, And Client Development (Part 1)

Bruce Stachenfeld is the managing partner of Duval & Stachenfeld LLP, which is an approximately 70-lawyer law firm based in midtown Manhattan. The firm is known as “The Pure Play in Real Estate Law” because all of its practice areas are focused around real estate. With more than 50 full-time real estate lawyers, the firm is one of the largest real estate law practices in New York City. You can contact Bruce by email at thehedgehoglawyer@gmail.com.

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