Managing Partners Corner

Managing Partners: Transform Your Law Firm by Leading With Transparency

By Wendy Merrill

Once upon a time, the innermost workings of law firms were discussed only at the partnership level. Even then, partners’ understanding of every cog in the firm machine was debatable. As long as the partners made their money and the bonus structure for the other attorneys was subjective, it seemed everyone was satisfied, and the firm grew. Fast-forward to 2024, and the future of private practice looks different. Secrecy is out, and transparency is very much in demand, fundamentally transforming the culture within law firms.

leading with transparency

Out of the Dark and Into the Light

The lawyers who will soon be in line to succeed senior partners want a different career than the ones their predecessors have had. Money is still important, but quality of life has become a priority for millennial and Gen Z lawyers.

The younger generations crave control and predictability and want to have a say in what they do and how they do it. Factors shaping how they approach their private practice careers include the desire to co-parent and protect themselves from stress and anxiety. The level of client service required for the delivery of excellence is still paramount, but the methods for getting there are being called into question. The days of doing whatever it takes to get the job done are waning.

Even at the most junior levels, lawyers believe they have the right to question the “why,” “what” and “who” behind firm decisions and future plans. Lack of transparency from senior partners and firm leadership leads younger lawyers to conclude they are not valued, which leads to disengagement and increased attrition.

At the same time, I often hear seasoned attorneys complain that their greener counterparts lack the work ethic that they possess themselves. They lament that associates are asking for more money while not meeting their hourly requirements. And if talented associates approaching their ninth year of practice show no interest in entering the partnership queue, it’s enough to send ripples of confusion and panic throughout the firm.

How does a firm move past this generational impasse? Managing partners play a vital role in changing the conversation. Unlike in the past, today’s firm leadership must secure buy-in for their vision from everyone in the firm and ensure engagement in its execution. To do so, the firm must adopt a policy of transparency, and the managing partner must lead the effort.

What Is Transparent Leadership?

Transparency in leadership refers to the practice of openly sharing information, including the firm’s decision-making processes and its expectations for partners and employees. Leading with transparency means ensuring everyone understands the firm’s vision and goals through open communication. It means regularly sharing information about the firm’s performance, good and bad, and being open about the reasons for keeping sensitive information confidential. While not all decisions will be popular, being open about how and why decisions are made helps reduce fears, suspicions and attrition.

Open, transparent communication with employees inspires trust and a feeling of ownership. When leaders are honest and open, people feel respected and valued.

When firms succeed in practicing transparency, all stakeholders and employees know where the firm stands, what it stands for, and its future direction. Importantly, they also understand where they stand and their role in contributing to the firm’s overall strategy.

By adopting a policy of transparency, managing partners can become leaders who inspire trust, fostering a more collaborative and productive firm culture.

Three Key Elements of Law Firm Transparency

Set Goals for Every Lawyer

Identifying goals is an exercise many lawyers do not incorporate into their practice. In the past, as long as the attorney was billing enough hours and bringing in a healthy number of clients every year, they were considered successful. As lawyers were chasing moving targets such as more money, more clients, and joining the partnership table, they set themselves up for high levels of stress, poor self-esteem, burnout or worse.

Without clearly stated goals, it is impossible to account for one’s efforts, recognize what goes right, and accept what needs to be adjusted. Firms should expect partners, associates and professional staff to set goals, create annual plans to reach those stated goals and measure the outcomes. Along the way, regular, honest feedback, training and coaching support, and routine performance reviews are critical.

Being transparent about this process is the only way to run an efficient and profitable firm with a healthy culture.

Prioritize Accountability

Goals are meaningless without a transparent system of accountability to support their realization. Firms should employ systems and processes to facilitate success — and impose consequences for noncompliance.

Managing partners must take ownership of their firm’s approach to accountability. Anyone who strays from following firm procedures must be made to understand the effect their noncompliance has on overall firm growth, efficiency and profitability. Leadership should be transparent with the entire firm about the importance of everyone’s individual roles in the firm’s collective success. Educating the team about the value of individual contributions, along with the cost of falling short, is essential to securing the vitality and sustainability of the firm.

Make Open Communication the Standard

The most detailed system for creating goals and a foolproof system of accountability is worthless without clear and consistent communication. Unfortunately, with the busy nature of private practice and the pressure of deadlines and client demands, internal communications often fall by the wayside.

Clear messaging, regular team meetings and reviews are essential for maintaining open communication and transparency within the firm. Partner meetings, closed-door strategic planning, pricing revisions and succession planning should not be veiled in secrecy. Associates and staff know when something is going on, and their anxious anticipation of change and how it might affect their jobs can only be quelled through frequent communications from the top.

The firm’s leadership should be transparent about growth plans and aim to galvanize everyone with an eye on a well-defined prize. Succession planning must be done, and when it is, leadership needs to share the outcomes with the firm.

Transparency in Leadership Builds Firm Loyalty

For firms committed to securing a robust and sustainable future, it falls to their managing partners to set a tone of transparency. The more everyone in the firm understands the “whys” behind the “whats” and “whos,” the more united the team will be in giving it their all.

More on Leadership, Law Firm Growth, and Employee Engagement


Image © iStockPhoto.com.

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Wendy Merrill Wendy Merrill

Wendy Merrill is a fierce advocate for improving the practice of law. She has worked with thousands of lawyers around the world, providing practical guidance and proven techniques designed to help lawyers and their firms thrive. Wendy is both the proud CEO of StrategyHorse, a consulting firm committed to boosting law firm profitability with proven strategies, and co-founder of The Savvy Advocate, a unique associate training program designed to prepare younger lawyers and their firms for success. She is also an author and prominent speaker on law firm growth strategy, winning the war for legal talent, bridging the generational gap in law firms, and more.

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