Why Lawyers Lack an Ownership Mentality and How to Address it
"An ownership mentality" in a law firm refers to the mindset and attitude of partners who take responsibility for the success and growth of the firm, treating it as if it were their own business. However, many lawyers may not have this mentality due to a lack of training in business management and a focus on their legal craft. To promote an ownership mentality among partners, firm leadership can provide training and education on the business side of the law, and encourage a culture where partners are actively engaged in the growth and success of the firm.
One of the main reasons for the absence of an ownership mentality among law firm partners is that many lawyers are not taught to view the practice of law as a business. According to Elaine Fitch of Kalijarvi, Chuzi, Newman & Fitch, most lawyers become attorneys because they want to practice law, not run a business. This mindset can be linked to the personality traits of those who choose a career in law - many lawyers view themselves as craftsmen and not business owners. Their dedication to their craft allows them to excel in their field, but it can make it difficult for them to transition into an ownership role, as they may feel a disconnect from the business aspect of the firm, as Joshua Driskell of Lagerlof notes.
The Importance of Business Training and Education for Law Firm Partners
Another challenge to promoting an ownership mentality among law firm partners is the lack of training in business management. Many law schools do not provide education in this area, leaving many lawyers unprepared for the business aspects of running a law firm. As Brian Temins of Minden Gross notes, this lack of training can have negative consequences down the road. Making the transition from practicing attorney to business owner requires more than just a title change, it requires training and preparation. Additionally, Bijal Vakil of Allen & Overy stresses the importance of having business acumen not only for acquiring clients but also for maintaining and retaining them.
Firms often neglect to expose their lawyers to the business aspects of the firm, starting from a young age by encouraging them to solely focus on developing their legal skills rather than acquiring clients. This can lead to lawyers not fully understanding the financial and operational aspects of the firm and how they contribute to its success. Providing education on the financial side of the business, such as billing, client relations, and acquiring new clients, can broaden attorneys' understanding and give them a more comprehensive perspective.
Additionally, it's possible that some attorneys may already have an ownership mentality but are not allowed to express it due to resistance from senior partners who prefer to maintain traditional practices and are not open to new ideas. This lack of support can discourage other partners from taking an active role in the business and exhibiting an ownership mentality.
Creating a Culture of Engagement and Transparency in the Law Firm
To promote an ownership mentality among law firm partners, many leaders suggest involving more attorneys in the business side of the firm through transparency and education. One approach is to involve young lawyers in the client intake and billing processes from the start, as suggested by Tom Segars of Ellis & Winters. David Lackowitz of Moses Singer also emphasizes the importance of transparency by sharing information about lawyer productivity, revenue, expenses, hiring and firing, strategy, and goals with all attorneys, especially early in their careers. This can help create a sense of ownership and investment in the firm's success.
Firms should share as much financial information as possible to encourage an ownership mentality among their lawyers, rather than keeping it within a small group of partners. When lawyers understand the mechanics of the business and feel they have a stake in it, they are more likely to work harder for the firm as a whole, says Sean Dolan of Evans & Dixon. This process should start early by involving associates in the client relationship, as when they see the value and impact of their work, they will feel a sense of ownership towards it. Involving associates in the entire project rather than just assigning tasks will also help them develop a sense of ownership towards the firm, as explained by Mickey Maher of Hecht Solberg.
Firms should also give younger lawyers opportunities to take on significant roles in legal proceedings such as hearings, depositions, and trials, and involve them more in client interactions by encouraging clients to reach out to them directly for questions. This will foster a sense of ownership and investment in the firm.
Promoting an ownership mentality among partners also aligns with retention efforts. As Heather Linn Rosing of Klinedinst notes, fair compensation, wellness programs, community involvement, and opportunities for employee feedback and participation all contribute to a positive work environment that promotes retention.
Finally, active mentorship and sponsorship by senior lawyers, particularly for women and diverse attorneys, is essential in fostering an ownership mentality and promoting career growth within the firm.
Empowering Young Lawyers to Take Ownership of the Firm's Success
Promoting teamwork can also help reinforce an ownership mentality among law firm partners. Activities that promote bonding, teamwork, and cross-selling can be challenging to motivate lawyers to participate in, but they are valuable in fostering a sense of ownership. Involving lawyers on firm committees, such as recruiting, as suggested by Heidi Yernberg of Jayaram Law, can help instill an ownership mentality by bringing them into the operational aspects of the firm and encouraging them to take on a variety of responsibilities, such as project management, workflow, budgeting, business development, and thought leadership.
Developing a strategic plan with input from all attorneys and staff is another way to encourage involvement and ownership. The plan should be regularly reviewed to ensure that it guides the direction of the firm, allowing all stakeholders to see how it is being used.
Creating an ownership mentality among law firm partners can be challenging, but it is important for the success of the firm. One approach is to have partners develop their practice plan that aligns with the firm's overall plan, as suggested by Mary Vandenack of Vandenack Weaver. Ellis & Winters takes this a step further by working with each attorney to develop an individual business development plan that focuses on their interests and strengths while holding them accountable for implementation.
Accountability is a crucial part of this process, but it can be difficult for managing partners to hold their partners responsible. Marco Antonio Gonçalves of Veirano Advogados suggests giving partners actual business responsibilities and holding them accountable for those responsibilities and their role as firm partners.
One way to reinforce the responsibilities of being a partner is through partnership skills training, as Harrity & Harrity does by requiring new partners to meet with the managing partner regularly to review scenarios related to hiring, firing, and handling potential malpractice issues. When partners have an ownership mentality, they hold themselves accountable for the success of the firm.
Ultimately, creating an ownership mentality among law firm partners requires providing training, resources, opportunities, and support, but it is up to the individual lawyers and partners to fully embrace the role of being a law firm owner.
REFERENCE:
Practice Innovations: Why lawyers lack an “ownership mentality” and what to do about it
https://www.thomsonreuters.com/en-us/posts/legal/practice-innovations-ownership-mentality/
