Law Practice Management Asked and Answered Blog

Category: Leadership

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Feb 18, 2026

Law Firm Leadership – Midsize & Smaller Firms

Question: 

I am a partner in a 30 lawyers insurance defense firm in Phoenix, Arizona. We have 7 equity partners, 10 non-equity partners, and 13 associates. We represent insureds through insurance companies that are our clients and pay our bills. We also represent self-insured companies as well. Our firm is in second generation. The original founding partners have all retired and they are the ones that brought in all of the clients and managed and ran the firm. The firm was primarily run by a strong managing partner. Since the founding partners retired we have been struggling in managing the firm, getting new clients, and finding and retaining lawyers and staff. Now all seven partners are involved in managing the firm and while we are all good lawyers we are not good managers or leaders. The firm has lost clients and lost lawyers and we are struggling. All our partners want is to work in their own silos and work on their files and cases. They consider firm management “non-billable” and not deserving of their time. Do you have any thoughts?

Response: 

Law firms are finding that developing effective leadership skills can be a very difficult task. Dealing with leadership is a very emotional issue for most law firms due to the independent nature of most lawyers and the general unwillingness of firm lawyers to put aside their personal interests for the good of the firm. In fact, in many cases existing law firm partnership structures and compensation systems reinforce this tendency. What is needed is a balance between partner autonomy and partner accountability. Leaders will either have to be recruited externally (i.e. lateral partners) or skills will need to be developed internally.

The firm can begin by conducting a self-assessment using the following 10 point checklist:

  1. Only the best should lead and be placed in key leadership positions. Does the firm have its most capable people in leadership positions?
  2. Does the firm have partners or other lawyers with leadership skills or potential leadership skills? How many?
  3. How many lawyer leader positions are there in the firm that require leadership skills? How many lawyers have these skills?
  4. Does the firm’s compensation system reward management and leadership activities?
  5. Does the firm’s compensation system have a team reward component and are non-billable firm investment activities respected and rewarded?
  6. Does the firm’s culture support a team orientated practice or an individual type practice?
  7. Does the firm’s governance structure provide for administrative, management, and leadership roles and responsibilities?
  8. Does the firm have an in-house leadership training and development program?
  9. Does the firm invest and budget funds for leadership development?
  10. Is the firm willing to make the commitment?

While professional non-lawyer executive directors, administrators, and office managers can provide some relief, the equity partners must still develop appropriate leadership skills and perform upper-level leadership roles. In some firms these skills are simply latent and need to be identified and appropriately reinforced. In other firms such skills are nowhere to be found. Such firms will have to either recruit partners with requisite skills from the outside or develop leadership skills internally. This will take time and will require dedication, focus, patience, and hard work.

This author believes that improvements in law firm leadership will only come about as a result of improved leadership selection and action orientated leadership development programs. Attorneys must begin to shift their attention from a transaction orientation to a firm-first client orientation. Attorneys must begin to make investments in non-billable time and consider such as investments for the future. Attorneys must begin to formulate a balance between accountability and autonomy and begin to embrace change. Only then will an environment be created that supports leadership development that fosters an organization that can facilitate ongoing new client acquisition and retention in the future.

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John W. Olmstead, MBA, Ph.D, CMC

Jan 28, 2026

Law Firm Leadership – Responsibility of the Partners

Question: 

Our firm is a 14 lawyer firm in St. Louis, Missouri that focuses on small businesses – both transactional and litigation matters. There are eight equity partners, two non-equity partners, and four associates in the firm. We are managed by a three member management committee and a firm administrator.

While we have been successful over the past fifteen years since the formation of the firm, we are experiencing numerous issues including:

  1. Defections of partners, associates, and others leaving the firm.
  2. Difficulty in finding, hiring, and retaining attorneys and staff.
  3. Dissatisfaction by lawyers in the firm concerning the way things are done.
  4. Partners and associates are expressing growing dissatisfaction with firm management and policy.
  5. Lack of faith in the management committee.
  6. Lack of open communication between the management committee and the rest of the firm.
  7. Dissatisfaction with the partner and associate compensation system and the belief that it is unfair. The management committee makes all compensation decisions and the factors that are considered are unknown as well as the performance expectations.
  8. There is a lack of adequate succession planning for the transfer of client responsibility from senior partners to younger partners.

We would appreciate any suggestions that you might be able to offer.

Response:

I understand your dilemma. You are at a difficult size. It sounds like you are facing many of the problems that firm leaders face at your stage of growth. Your leaders must be willing to:

  1. Invite active participation and input from all attorneys concerning matters of firm governance. For example, revitalize the management committee by rotating its membership and limiting tenure and consecutive terms or establish a compensation committee that represents attorneys from all levels of the partnership. Also, give the attorneys a voice in policy determination and other important administrative decisions.
  2. Implement a lawyer career advancement program that outlines a program for attorneys to advance from associate to non-equity partner and then to equity partner. A common complaint that we hear from our interviews of associates is lack of feedback on short term performance and what it takes to “make partner” and how they are progressing toward eventual partnership. During a recent interview an associate told me:
    1. I would like to know: What does it take to become a partner – consideration criteria?
    2. What do I have to do?
    3. What is the timeline for consideration?
    4. How am I doing – am I partnership material?
    5. What does partnership mean in this firm? Will I have a voice?
    6. What are the mechanics of admission? (Is there a buy-in)
    7. Is there a buyout for retiring equity partners?
  3. Set up a compensation system that attempts to be fair and consistent in rewarding all of the lawyers for their total contribution to the firm. Identity and share the specific factors that are considered if the system is a subjective-based or subjective-objective hybrid system. Develop an incentive system whereby attorneys get credit for client their working attorney fee collections, client origination, including enhancement of present client relationships, management of the firm and its practice areas, training of associates and paralegals, pro bono activities, and other nonbillable activities.
  4. Develop a formal evaluation program that will let the attorneys know where they stand and allow qualified associates to progress to partner status. Encourage active participation in pro bono activities, especially ones in which the attorneys have a particular skill or interest.
  5. Assign responsibility for client matters at an early stage in an attorney’s career. Introduce attorneys to the clients as early as is practical. This will enable the attorneys to step into the fray from the beginning and be more involved and informed on client matters.
  6. Establish an ongoing, organized training program for professional growth. This can be done by setting aside time for attorneys to attend CLE seminars or meetings sponsored by other professional groups. Regularly scheduling in-house training sessions, under the guidance of partners with specialized expertise, would develop the skills required to succeed in various practice areas, including business development and management techniques.
  7. Give the attorneys an opportunity to train and supervise other attorneys and paralegals to provide support on specific client projects or in the substantive areas in which the attorneys are involved.
  8. Assist attorneys in building their individual reputations through participation in programs sponsored by the bar association or by writing articles on substantive areas of practice for publication in bar association or professional journals. Encourage their participation in programs sponsored by the firm and other associations, such as accounting firms for clients and prospective clients.
  9. Provide an ongoing forum for the attorneys to participate in discussions with one another concerning client matters (i.e., strategies), research findings, and input on decisions that may affect matters they are working on. Circulate an agenda before each meeting, and include all partners and associates.
  10. Develop a strategic plan that enables partners and associates to determine the firm’s immediate and long-term objectives.
  11. Show care and concern for the professional and personal welfare of both partners and associates as well as staff.
  12. Encourage the opposing viewpoints and consider other opinions.

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John W. Olmstead, MBA, Ph.D, CMC

 

Feb 14, 2024

Law Firm Succession – Transition of Senior Partners Leadership and Management Roles

Question: 

I am one of three founding partners in a 17 lawyer insurance defense firm in Houston. We have a total of 18 lawyers in the firm – 3 founding equity partners, 4 other equity partners, 5 non-equity partners, and 6 associates. The three of us founding partners are in our 60s and approaching requirement and are concerned about succession planning and transition. We feel that we are in good shape concerning transition of clients but not so concerning management roles and responsibilities. The firm is managed by the three of us and we have kept tight reigns on the administrative/management side of the house. We would appreciate your thoughts.

Response: 

A successful transition strategy involves three components.

  1. Legal Skills (lawyering skills)
  2. Client and Referral Source Relationships
  3. Firm Management and Leadership Roles

While it sounds like you are in good shape concerning legal skills of your other partners and client and referral source relationships, work needs to be done in the areas of firm management and leadership.

Law schools do not train or develop managing partners or lawyer managers, nor does doing excellent and complicated work for demanding clients. Highly competent attorneys do not necessarily make good managing partners or lawyer managers. Some of the best lawyers are the worst managers. The better lawyer managers have a second sense for people and management, in addition to being good lawyers and possibly outstanding rainmakers. Many firms develop successors to management by delegating to selected mid-level and junior partners short term management assignments and by rotating these partners through various management areas to develop their general management skills rather than developing particular lawyers as specialists in specific management areas. These firms begin to train mid-level and junior partners by assigning short term, low risk management activities before entrusting them with key management jobs.

Management Skills

The following are recommended areas in which the management skills of mid-level and junior partners can and should be developed:

  1. Client relations, including origination, development and retention;
  2. Acceptance of new clients and matters and the management of performance of legal work in substantive practice areas and sub-specialties;
  3. Associate recruitment, training and development of a personal and professional nature, promotion, evaluation and compensation and termination;
  4. Administrative staff organization, relationships and utilization;
  5. Budgeting for revenue, expenses, capital expenditures; billings and collections; financial and variance reporting and utilization of resultant financial data and management information;
  6. Technology including computers, software, other equipment and technical support from non-lawyer specialists;
  7. Leases, space utilization, negotiations and construction.

Techniques for Developing Skills

On-the-job-training is the most effective technique for developing and refining the management skills of mid-level and junior partners. Three of the most frequently used approaches for teaching management skills include being assigned to a committee, being elected or appointed to a management or leadership position and serving as a member of a special team.

  1. Committee Membership: Mid-level and junior partners may be appointed or elected to serve on the management or other committees. Depending upon the form of firm governance, partners may be appointed or elected to represent various age groups and/or regional offices in multi-office firms. They may be chosen to serve on other committees such as marketing, associates, recruiting, lateral hires, administrative staff, financial, ethics or the management committee, etc.
  2. Appointed positions: Partners may be appointed to manage functional areas of administrative or substantive firm activity. For example, a partner may be appointed to chair a practice area or one of its sub-specialties. Another one may chair the marketing committee. A third may serve as the firm’s ethics partners, etc.
  3. Special Team: A partner may lead a special team to address a specific issue or function. For example, a partner may be requested to recommend new or emerging practice areas. Another may explore the feasibility of establishing a new regional office. A third partner who has an interest or background in technology may direct the firm’s automation effort, etc.

The mid-level or junior partner selected for training should receive administrative assignments and his or her performance should be evaluated accordingly. Each lawyer manager should be requested to develop a plan for the year, including goals and proposed action plans for accomplishing their objectives. They should be required to review these plans with the head of the committee or the partner to whom they are accountable. Partners who are appointed or elected to specific positions should be accountable to a partner or committee responsible for their actions and be evaluated on their performance. Many law firms consider the success or failure of partners in planning and implementing administrative assignments when recommending or setting their compensation levels. This is done to encourage the firm’s “best and brightest” partners to accept administrative assignments and not feel uncomfortable because they may record fewer billable hours. Also, it would be wise for the managing partner or executive committee to identify and provide other non-monetary forms of recognition to successful lawyer managers.

Planning for the transition of law firm leadership and management calls for the ability of the current managing partner or members of the management committee to spot leadership and management potential among the partner complement. Once this potential has been identified the current management must nurture and develop this potential so as to provide the future leaders of the firm.

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John W. Olmstead, MBA, Ph.D, CMC

Feb 09, 2022

Law Firm Succession – Management Training for Future Firm Leaders

Question: 

Our firm is a sixteen lawyer firm in Cleveland, Ohio. There are six equity partners, three non-equity partners, and seven associates in the firm. Our firm is a litigation boutique that represents small to mid-size companies. Three of the six equity partners are initial founders and three became equity partners later. All six are in their sixties and plan on retiring at different times over the next three to six years. The firm is managed by the six equity partners. The non-equity partners have no involvement in firm management. The six of us have concerns as we approach retirement that there will be a leadership vacuum and no one will have the management skills to manage the firm. What are your thoughts regarding this issue?

Response: 

Failure to train younger lawyers as managers in both the business of law and the practice of law aspects of a firm can result in a disaster either from a “internal revolution”, because the firm is unwilling to address the question and provide the opportunity, or from a decline in earnings and the exodus of key partners because the firm waits too long and ends up using untrained lawyers to undertake key management positions.

Law schools do not train or develop managing partners or lawyer managers, nor does doing excellent and complicated work for demanding clients. Highly competent attorneys do not necessarily make good managing partners or lawyer managers. Some of the best lawyers are the worst managers.

The better lawyer managers have a second sense for people and management, in addition to being good lawyers and possibly outstanding rainmakers.

I assume that you will be offering equity partnership to some of the non-equity partners in the near future to ensure that there are equity partners in place committed to carrying on the firm in the future after the six of you retire.

Many firms develop successors to management by delegating to selected junior partners short term management assignments and by rotating these partners through various management areas to develop their general management skills rather than developing particular lawyers as specialists in specific management areas. These firms begin to train junior partners by assigning short term, low risk management activities before entrusting them with key management jobs.

Management Skills

The following are suggested areas in which the management skills of non-equity partners can and should be developed:

  1. Financial Management
  2. Facilities Management
  3. Technology
  4. Business Development and Marketing
  5. Human Resources

Also keep in mind that transition of clients and referral source relationships will need to be considered and planned as well and this can take some time.

Based upon your retirement timelines I would start this process as soon as your can.

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John W. Olmstead, MBA, Ph.D, CMC

 

Jan 31, 2018

Law Firm Leadership – Profile for a Legal Administrator for an Eight Attorney Firm

Question: 

Our firm is an eight attorney estate planning firm in the Chicago area. Our firm has grown from two attorneys to our present size in four years. We have five partners and three associates. Currently management is handled by a managing partner. The partners have been discussing hiring a legal administrator. We were thinking of hiring someone with experience in managing law firms and a solid background in human resources and bookkeeping/accounting. One of our clients suggested that we hire someone with a strong academic background, MBA, CPA type that has served as the CEO of a mid-size corporation. What are your thoughts?

Response: 

I think you are too small to justify hiring a person with this background that is currently employed in such a role. Such a person would be unaffordable and if you could locate such a person your firm would probably be a stepping stone until they find a position elsewhere. If you were able to find someone that is retired and willing to work in a small firm setting that could be a possibility. Another option would be to hire someone that has served as CEO, COO, or CFO of a smaller company – with or without MBA, CPA designation. You could also look for an experienced legal administrator that has worked in a larger firm – possibly with a CPA or MBA. Again affordability will be an issue as well as long term retention. Personally, at your current size I think you should look for someone with BA or MBA degree in business, with a strong background in accounting and human resources, and experience as an administrator in a law or other professional services firm such as an accounting firm, consulting firm, engineering firm. Look for someone that has worked in a firm with 15-35 attorneys/professionals. Be careful of applicants that have worked in very large firms – i.e. 50+ attorney firm for example, as they may only stay a short while in a firm your size and move on to a larger firm when a position becomes available. They may also not be the “hands on jack of all trades” administrator that you need in a firm your size.

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John W. Olmstead, MBA, Ph.D, CMC

Mar 08, 2016

Law Firm Administrators – New Administrator – Accounting vs. Human Resource Background

Question:

Our firm is a 18 attorney firm based in San Diego. We are considering hiring our first legal administrator and have interviewed several candidates and have narrowed our search down to two candidates. One candidate has a strong financial background and has worked as a director of administration in several very large firms – 200 plus attorneys. The other candidate has a strong HR background, a weaker financial background, and has worked as a firm administrator in two different law firms – a 30 attorney firm and a 20 attorney firm. We like both candidates. Which candidate would you lean toward?

Response:

I would lean toward the administrator that worked for the smaller law firms. Having worked in smaller firms this candidate would be a more hands on administrator which is what a firm your size needs. In a firm your size the critical need is people management and leadership. As long as the candidate has a working knowledge of accounting the candidate should do fine with the oversight of your CPA firm. If you have to you can supplement any accounting deficiencies with outside resources – you can't outsource people management.  

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John W. Olmstead, MBA, Ph.D, CMC

Jun 23, 2015

Law Firm Management -New Firm Administrator – Implementation of Ideas

Question:

I am a new and a first law firm administrator for a 16 attorney firm in Chicago. This is my firm law firm and after attending a few partner meetings I am concerned about how and where to start getting some ideas and projects implemented. I have lots of ideas. I would appreciate your suggestions.

Response:

Lack of focus and accountability is one of the major problems facing law firms. Many times, the problem is having too many ideas, alternatives and options. The result, often, is no decision or action at all. Ideas, recommendations, suggestions, etc., are of no value unless implemented.

Look for ways to insure that your, and your partners, time spent on management is spent wisely. At first identify a few (maybe three) management initiatives that you can move forward fairly quickly and get implemented. Then build upon these successes.

Don’t hide behind strategy, planning, and endless debate. Attorneys love to postpone implementation. Find ways to focus the firm and foster accountability from all.

Don't attempt to initially, in the short term, take on management projects that the firm is unwilling or unable to implement.

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John W. Olmstead, MBA, Ph.D, CMC

Oct 09, 2012

Survival Tips for Law Firm Legal Administrators

Question:

I am the Director of Administration with a 45 attorney firm in Des Moines, Iowa. I am new to this position and could use some pointers on what I need to be successful in my role. This is my firm law firm.

Response:

Few things are as important to an administrator’s future as that person’s ability to influence the decision-making process and effect change.   Skills and competencies are important, but so are results. To transcend to the next level and enhance your value to your law firm, you must help your firm actually effect positive changes and improvements and improve performance. This requires selling ideas to partners in the firm, and having them accept and actually implement those ideas. To succeed, you must achieve three outcomes:

1.  You must provide new solutions or methods.

2.  The firm must achieve over time  measurable improvement in its results by having adopted the
     solutions, and

3.  The firm must sustain the improvements over time.

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John W. Olmstead, MBA, Ph.D, CMC

Aug 14, 2012

Law Firm Management Roles – What Do I Need To Be Good At?

Question:

I am the owner of a 12 attorney firm in Dallas. We have 26 people including attorneys and staff. I founded the firm 20 years ago. While we have an Accounting Manager – I am responsible for the management and direction of the firm. While we have done okay over the years – I often feel deficient as a manager and am not always sure that I am covering all of the bases. Is there such thing as management 101 for guys like me?

Response:

Mention management 101 and I think of the five functions of management. Each of these roles must be performed by someone in every law firm and business if it is to be successful. In a small firm such as yours you must perform each of these functions and be reasonably good at all of them.

Here are the five functions:

1.  Planning

Deciding in advance what to do, how to do it, when to do it, and who is to do it. Planning bridges the gap from where you are to where you want to go. It makes it possible for things to occur which would not otherwise happen. Planning is often referred to as business, long range, or strategic planning.

2.  Organizing

Creating an intentional structure of roles, duties and responsibilites, and accountabilities. Defining  what is to be done, by who, and how? Sometimes this involves establishing departments or practice groups.

3.  Staffing

Manning the jobs which involves hiring, performance management, training, mentoring, and development of people to fill the organizational roles.

4.  Directing

Directing employees involves motivation, communications and leadership.

5.  Controlling

Measurement of accomplishments of events against the standard of plans and the correction of deviations to insure attainment of objectives according to plans. In essence this involves reviewing your business, long range or strategic plan or budget against actual performance using metrics and dashboards/reports to determine how well you are making progress. If you are falling short of firm goals – determine problem areas and take corrective action to get performance back on course.

Use the above functions as a report card. Ask your self – how good are you at performing each of these roles? Are you performing them at all?

In addition to these roles you need to have a working knowledge of accounting and finance and be able to manage the financial affairs of the firm "work the books" as well as being good at getting the right people on the bus (hiring right) and keeping them there.

As you continue to grow you will eventually need to hire management talent to delegate some of these functions to perform.

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John W. Olmstead, MBA, Ph.D, CMC

Jul 24, 2012

Focused Effort in Law FIrms – Effective Problem Solving and Implementation

Question:

Recently our firm of 14 attorneys decided to transition from all partners weighing in on every management decision to a managing partner form of management. I was elected to the new managing partner position and have been in the position for four months and I have accomplished very little during this period of time. I am not sure where to start. I would be interested in your ideas.

Response:

You might want to read last week's blog/posting on governance. Structuring and Running Your Firm Like a Business

Lack of focus and accountability is one of the major problems facing law firms. Many times, the problem is having too many ideas, alternatives and options. The result, often, is no decision or action at all. Ideas, recommendations, suggestions, etc., are of no value unless implemented.

Look for ways to insure that your, and your partners, time spent on management is spent wisely. At first identify a few (maybe three) management initiatives that you can move forward fairly quickly and get implemented. Then build upon these successes.

Don’t hide behind strategy, planning, and endless debate. Attorneys love to postpone implementation. Find ways to focus the firm and foster accountability from all.

Don't attempt to initially, in the short term, take on management projects that the firm is unwilling or unable to implement.

Click here for articles on other topics

Click here for our blog postings on partnership and governance

John W. Olmstead, MBA, Ph.D, CMC

 

 

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