Question:
I am the owner of a three attorney law firm in Rockford, Illinois. While we do a lot of business litigation we are primary a general practice firm that serves individual clients. There are two associates in the firm in addition to myself, two paralegals, and a receptionist. We outsource the bookkeeping work to an accounting firm. We have been having issues with the accounting firm and I am considering bringing the accounting in house and hiring a bookkeeper that can also handle office management responsibilities as well that I currently have to perform. I know that many law firms now days have law firm administrators. Should I consider hiring a professional firm administrator?
Response:
Generally a firm your size would have a office manager/bookkeeper as opposed to a firm administrator. A firm administrator is generally a higher level position with responsibilities and expectations such as the following:
A firm administrator usually has a strong financial background, higher level of education than a office manager/bookkeeper, and often a CPA or MBA in larger firms that facilitates the candidate’s acceptance by other attorneys in the firm as a peer professional as well as provide the candidate with the academic tools needed to carry out the expectations of the position.
A firm administrator is rare in a firm your size and for firms under 10-15 attorneys. Many firms your size have office managers/bookkeepers. The downside to establishing an administrator such a position in your firm will be the salary that you will have to pay – more than some of your attorneys – and turnover in the position when an opportunity from a much larger firm comes along.
I have a few client firms your size that do have firm administrators. Sometimes for the first year or two there is a lot of administrative work – employees handbooks and procedural manuals to be written, new billing systems to implement, office space renovations and relocations, etc. But after major projects are completed there is not enough work to keep them busy. These firms have made the position work by adding client billable functions to their role. For example:
There is no magic size. We just completed an engagement recruiting an administrator for a seven attorney firm. We also have law firm clients with over 40 attorneys that don’t have an administrator. I believe that an administrator, or office manager, is appropriate in firms of all sizes. It is a matter of attitude and commitment on the part of the partners and whether they are willing to delegate responsibility and authority to an administrator to run the day-to-day operations of the firm. The firm should start with a job description and then decide whether the firm is willing to delegate responsibility and authority. If not, the firm should not hire an administrator.
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John W. Olmstead, MBA, Ph.D, CMC
Posted at 07:48 AM in Career Management, Human Resources