Any Vision for Your Practice?

The age-old dispute whether law is a noble profession or a business, has been long laid to rest. Law firms are set up for the practice of law and to render legal services, just as hospitals are set up to render medical services. However, highlighting the importance of the administrative and business aspects of the law profession, does not diminish its nobility. There are the professional aspects, and the business aspects of the law. Only a well-run business, can be an efficient and successful professional firm. Law is both a noble profession and a multi billion Dollar business. The Financial reports (2018 gross revenue) of a few law firms sufficiently attest to this fact -Kirkland & Ellis USD 3.76 billion, Latham & Watkins USD 3.39 billion, Baker & McKenzie USD 2.9 billion; DLA Piper USD 2.84 billion, Dentons USD 2.42 billion. Wachtell, Lipton, Rosen & Katzs’ turnover in 2018 -USD 763 million; $6.530,000 in profits per equity partner. Kirkland & Ellis profits per partner $5,037,000; Latham & Watkins $3,452,000, DLA Piper $1,757,000

The sizes and corporate structures of these firms, also underscores the importance of the business and administrative aspects of law practice. In the UK, despite the uncertainties of Brexit and the much touted impending recession, The Lawyer (a UK based legal research magazine) – reported that, well-managed law firms continue to thrive in their practices and benefit from new opportunities in the UK. The research magazine published the 2019 gross revenue of 200 top UK law firms - DLA Piper was at the top of the list, with a revenue of £1.946 billion, followed by Clifford Chance £1.693 billion, Linklaters £1.628 billion, Allen & Overy £1.627 billion, etc.

Coming home to Nigeria, though we are bereft of statistics on law firms, the financial value of a few reported legal transactions sufficiently proves that, law is both a profession and a business.

The Business of Law From the business of law perspective, a law firm is made up of a group of people working together to deliver legal services for profit. A law firm is a vehicle formed to earn profits that will increase the wealth of its owners, all stakeholders and the community in which it operates. A law firm is an organised effort or activities by Lawyers working together to provide legal solutions, with the intention of building a going concern, an enduring entity. From the business of law perspective, a law firm is a professional service that must be taken to the market (consumers); therefore, it is subject to the market forces of supply and demand. Consequently sound technical knowledge alone – howbeit in Latin and English (Certiorari, Ad litem, Habeas corpus etc.), legalese, wig and gown, the gavel, and other sacred ornaments of the legal profession alone, do not guarantee the success of a law firm. A Law firm should be run on sound business skills, knowledge and practices, to ensure its financial sustainability. No law firm can survive and thrive, without the combination of multi- disciplinary skills and professionals, which the changing aspects of law practice today demands.

Front or Backend? Every business has a frontend, and a backend. Law is no exception. There are the professional aspects and the business aspects, of the law practice. The professional aspects – constitute the frontend, and the business aspects constitute the backend. Is the frontend of a business

more important, than its backend? Can the backend be overlooked or compromised, without consequences? In business, the quality of the backend heavily impacts the frontend.

What constitutes the backend of a law firm? The “messy little details” like human resources, people or talent management, recruitment, retention, training and development, welfare, compensation, performance management, career progression and development, succession planning. Office Acquisition, facilities management, space planning and ergonomics. Strategy, visioning, policy formulation, goal setting, mission and objective. Procurement, Logistics, operations, file management. Library and knowledge management. Business/client development, value proposition, branding, website, social media, market collateral – brochures and newsletters. Finance – budgeting, profit drivers, pricing, fee setting, billing and collection, cashflow management, tax, insurance, cost control and internal audit. Governance and structure. Information technology Practice support systems; Computer hardware and software systems, Electronic privacy issues, Disaster management and Business Continuity Processes, Document and Knowledge Management Systems, Artificial Intelligence,

disruptive innovation like the commoditisation of legal services etc.

The Balancing Act Many law firms struggle with, balancing the professional and business aspects of running their practice. Law practice have some inherent peculiarities that may pose as road-blocks to running a successful business. For instance, law firms are usually populated with very intelligent, opinionated and individualistic professionals. Independence is highly prized by Lawyers. This is not a bad thing in itself, but it can make governance a nightmare. Also, law firms can have highly politicised internal structures and decisions are usually consensus driven, which again, can make governance a nightmare. After “all said and done”, nothing is usually done, because Lawyers can have a particular strong aversion to taking directions – and management and administration is usually about directing, planning, innovating. Law firms can be individual client focused, with power usually based on client/revenue generation, which is dangerous for firm cohesion.

Another threat to law firm cohesion, is the argumentative, competitive. adversarial and even sometimes combative tendencies of Lawyers. Further, law firms usually are shortterm focused, bottom-line focused and with a poor investment mindset. In addition, it has been observed that, Lawyers are usually risk averse.

Another peculiarity is that, most law firms have few role boundaries. It is typical to find Lawyers in firms who want to be the accountant, admin manager and human resources manager at the same time. Even some partnerships do not have and respect, clearly defined roles. Unclear roles is the recipe for confusion, in business. Importantly, running a successful business, requires a lot of creativity and nimbleness. Law firms however, are usually bound by precedents, are conservative, intolerant of mistakes - are trained to detect mistakes, impatient and pressurised because of deadlines. All these stifle creativity, which is essential for business sustainability.

From the Back Office From the Back Office, will be focused on Law as a business. My name is Joy Harrison-Abiola, I have spent 21 years at the backend of law offices, and have made some very interesting observations. Also, through the years, I have had the privilege of interacting with non-Lawyer (some Lawyers) colleagues both in Nigeria and abroad, who, like me, have spent years at the backend of law offices. These very seasoned business support professionals have shared their frustrations, observations and war stories, that have helped in my journey. So, I will be showing on this page, what constitutes the back office of a law firm and how it can be effectively harnessed, to make a law firm successful and sustainable.

The Trouble with Vision A few years ago, I visited the back office of the 11th largest law firm in Boston USA – Burns & Levinson, at the invitation of its CEO. I spent a couple of days there. So, I had the privilege of sitting down with one of its founders, and of course, my question was about Vision. What inspired the setting up of the firm, in 1960? The “old man” gave me some very interesting perspectives, on how they have navigated the very rocky American law business terrain for 50 years holding unto their vision. What is vision? Is there a relationship between vision and law practice? Does a vision drive a law firm or not? Is vision essential to the survival of a law firm? Who gets the vision? Is it essential that the vision is written and documented somewhere for easy reference? Who drives the vision? How is a vision communicated? Is it possible for a law firm to operate without a vision?

What is the vision of your law firm? Where is your law firm going? How far do you want to take your law firm? What will the destination look like? How will you know when you get there? A vision is an inspirational and aspirational destination, on the horizon. The trouble with vision is that, it is the thing Lawyers typically omit to do, when opening their law practice. Law firms ignore the articulation of a vision, for their firm. You find vision in very few law firm websites, or marketing collaterals. Meanwhile, Vision, if well crafted, contributes to your brand – it has a way of carving out an identity for a firm – what it does, what it wants to become, and what it believes in. Another trouble with vision I have observed from the back office, is that even when a law firm articulates a vision, the vision is not translated to a shared corporate vision. Most Lawyers lack the skill or the will, to do this.

Why is vision, mission, values and a strategy document vital in business? The short answer is that, without these, there is no direction, or there are several directions and confusion and wastage of resources follows. A good vision articulate’s the firm’s ultimate goals and objectives, in a way that inspires and moves the firm in a specific direction. Any law firm that ignores this, will do so at its detriment. A law firm that is serious about growth and success, will pay attention to corporate visioning.

“A LAW FIRM SHOULD BE RUN ON SOUND BUSINESS SKILLS, KNOWLEDGE AND PRACTICES, TO ENSURE ITS FINANCIAL SUSTAINABILITY. NO LAW FIRM CAN SURVIVE AND THRIVE, WITHOUT THE COMBINATION OF MULTIDISCIPLINARY SKILLS AND PROFESSIONALS, WHICH THE CHANGING ASPECTS OF LAW PRACTICE TODAY DEMANDS”