Professional firms have nothing to sell except their people. Surely it would be a matter of simple logic for such firms to excel at energizing their people, so why are law firms so bad at it? asks David Maister
Most business discussions focus on clients. But to serve clients well, you must first excite and energise your people. And that requires managers who know how to do this. Most law firm managers don’t.
Of all the goals firms say they have (to make money, please clients, attract and develop talented staff), the least well done are those related to managing people.
Yet the evidence I have gathered in researching my latest book proves that the more financially successful professional firms do better on virtually every aspect of partner and non-partner attitudes, and those that do best on attitudes are measurably more profitable. This proves it is attitudes that drive financial results, not the other way around.
People are not just the brains of most businesses; they are the heart, soul, guts and the rest of the anatomy as well. For many managers this is an uncomfortable, and sometimes, unfortunate necessity. They feel more comfortable within the financial, technical, intellectual, rational or artistic boundaries of their field. Dealing with people and human emotions is something they feel unprepared for and are inclined to avoid.
Professional firms have nothing to sell except their people. Surely it would be a matter of simple logic (or self-preservation) for such firms to excel at energising their people. But they don’t.
One possible explanation is that many firms assume that people will be self-starting and inherently self-motivating, and therefore do not work very hard, if at all, at managing them. If managing means to energise, challenge, exhort, inspire and enthuse individuals, then little managing takes place inside most law firms.
Instead, what passes for management is a system of strict financial controls, with periodic general meetings to listen to the latest inspirational speech and unfold the latest branding slogan or mission statement poster. This represents a combination of tight administration and weak attempts at visionary leadership. Even when done well, neither of these is managing.
When selecting people to become firm or practice group leaders, firms tend to focus on ‘business skills’ (business development or financial management) rather than people skills. The ability to energise others (i.e. manage) is rarely a primary criteria for choosing managers.
