Understanding Corporate Literature to Maximize Practice Management and Client Service

Corporate America is far ahead of law firms in systematically studying leadership and organizational effectiveness. As law becomes more of a business - and as leadership becomes even more critical at all levels of a lawyer's practice - it makes sense to consider what corporations know that lawyers and law firms may not. For instance, what distinguishes the great from the merely good? What factors contribute to sustaining success in today's rapidly changing economic environment?

Lawyers who understand this information possess a competitive advantage in two ways. First, they can take advantage of their knowledge to strengthen their own organizations and to inform their practice management. For instance, True North (previously reviewed in Leadership Matters for Lawyers) may inform lawyers' perspectives on leadership development; Made to Stick may guide the way lawyers present substance and even client pitches; and Good to Great may direct lawyers' thoughts on how to organize and manage a successful law firm. Though not every lesson will be directly applicable to law, the analogies can be useful.

Second, though perhaps more importantly, awareness of corporate literature (and specifically literature pertaining to leadership) permits lawyers who represent corporate clients to share a common understanding and a common language with those clients. A good lawyer always seeks to understand her client's business and industry. A great lawyer goes even deeper and understands context and culture that informs how the client approaches his business. Even lawyers who represent individuals rather than corporations may find common ground this way, since many individuals work in or with the corporate world.

Example: implementing values and strategy

One key precept from corporate literature can inform both legal practice management and client relations. Whether in business or in law, the findings are consistent throughout the literature: strong organizations place people and values first, even in bad times. Organizations that succeed over time are those that have a strong values-driven culture. They are people-centered organizations.

Law practice management often takes a turn away from this recognition. In the conventional way of designing strategy, executives (including law firm managing partners and executive committee members) answer two fundamental questions:

1. What business are we in?

2. How shall we compete?

This is reasonable, rational and likely exciting only for those at the top engaging in this intellectual exercise. It is not engaging to those charged with implementing the strategy. It does not engage anyone on an emotional level. After the strategy is announced, only then are practice group leaders, team leaders, and so on encouraged to ensure that the "values" and practices of the firm are aligned with the strategy. The message is to pick values that fit the strategy. And only afterwards are non-executive level lawyers involved in order to get them on board with what the firm's executives have declared. Moreover, can you see that clients are considered only to the extent that competition rests on client service?

In contrast, a values-based view of strategy starts with a set of fundamental values that are energizing to everyone in the organization. These values are capable of unlocking the human potential of their people. Such values may include fun, fairness, challenge, service, trust, respect, community and family. All management practices are screened for how they are consistent with these core values. In this approach to management, strategy comes last, after the values and practices are discovered and aligned, and after the firm produces capabilities that set it apart. In other words, the firm determines "who" it is (with an eye to client relationships particularly) and then decides how to convey that to clients and the legal community.

Herb Kelleher of Southwest Airlines is fond of saying, "We put our employees first, our customers second, and our shareholders third. In that order it works and out of that order nothing works." Southwest is hands-down the most successful airline. What if law firms operated using the same priorities - substituting clients for customers? How would practice look different - internally and externally?

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