All for one?
As the economic turmoil intensifies and law firms face up to the possibility of further job cuts at increasingly senior levels, partners need to rapidly develop a more complex and subtle understanding of their partnership. Now more than ever law firms need to take a long-term view and appreciate the intricate system of fine checks and balances that partnership creates. Partnership can be a very special relationship, developed gradually over time and carefully nurtured. But it can be destroyed by careless action on the part of management, and the relationship could prove impossible to rebuild.
April 01, 2009 at 08:33 PM
6 minute read
What kind of partnership do you have – a band of brothers or a ship of pirates? Laura Empson says identifying the type of partnership that runs your firm can be the key to its survival
As the economic turmoil intensifies and law firms face up to the possibility of further job cuts at increasingly senior levels, partners need to rapidly develop a more complex and subtle understanding of their partnership.
Now more than ever law firms need to take a long-term view and appreciate the intricate system of fine checks and balances that partnership creates. Partnership can be a very special relationship, developed gradually over time and carefully nurtured. But it can be destroyed by careless action on the part of management, and the relationship could prove impossible to rebuild.
The partnership form of governance is an effective means of resolving the tension inherent in any professional service firm – between the needs of the individual and the needs of the collective. Each partnership strikes the balance in a different way – some favour the individual, some the collective.
But there is a further tension that develops as a partnership grows, between the autonomy of partners and the authority of management.
During my research I have been struck by two phrases that interviewees use repeatedly: "one for all and all for one" and "band of brothers". The first is the rallying cry of Dumas' Three Musketeers; the second is from Shakespeare's Henry V – the king's speech to his troops before the Battle of Agincourt. While the interviewees use these phrases to convey much the same sentiment, the contexts from which the quotes originate in fact suggest very different forms of partnership. By examining the metaphors that lie behind these phrases we can explore alternative models of law firm partnership, and demonstrate the different ways in which firms strike the balance between individual commitment and managerial control.
The Three Musketeers
The three musketeers were inseparable friends and brilliant swordsmen, united in their opposition to the encroaching power of Cardinal Richelieu. But they were also unruly mavericks.
A law firm that operates like the three musketeers, with high levels of individual commitment and low levels of managerial control, provides a context within which individual partners can pursue highly successful careers. However, they will fight against the imposition of more stringent partner management systems. A partnership like this can grow quickly, but without a more mature understanding of management, it can never operate effectively on a global scale.
Band of brothers
Shakespeare portrayed Henry V as an inspirational commander, who led his English troops to an astonishing victory over the numerically superior French army. The English triumphed due both to their ability and their discipline – they combined a high level of individual commitment with a high level of managerial control.
Given the reluctance of most lawyers to accept authority, this is not an easy model for a law firm to emulate. A founding partner may have such authority. In a more mature partnership this kind of leader can emerge at a time of crisis; but this individual may struggle to retain the support of his or her peers. Law firm leaders need to keep winning battles, both externally and internally.
The pirate ship
There is a third metaphor that sheds light on an alternative model of partnership. Some law firms resemble a pirate ship. In a strong market this model can be highly effective, with powerful individuals sailing together in pursuit of galleons full of treasure, unconstrained by naval discipline. But pirates spend a lot of time squabbling over the division of the spoils – and when the pirate captain fails to deliver the treasure the pirates are quick to mutiny.
Lacking high levels of individual commitment to the firm and with low levels of managerial control, such a law firm will struggle to survive during an economic downturn. The partners will not be able to work together to present a unified response to an external threat and may turn against each other.
The gladiators
A fourth metaphor may become increasingly relevant in the current economic climate: a troop of gladiators. In this kind of law firm, the level of managerial control is increasing, as the partners struggle to increase profitability. At the same time, individual commitment is decreasing, as partners resent the encroachment on their autonomy and wait anxiously for the next round of layoffs.
Gladiators were highly-trained, highly-effective fighters who operated under the strict control of their owner but knew they could ultimately win their freedom if they fought bravely. In the meantime, as long as they stayed alive, they could enjoy celebrity status and sexual favours from Roman noblewomen. These men made the best of an inherently compromised situation, enjoying significant short-term gains while coping with an uncertain future.
These metaphors are of course caricatures of reality but they represent useful intellectual shorthand for understanding what kind of partnership you are and what kind you may become. You can reflect upon where you currently lie, where your partnership needs to get to, and where you run the risk of ending up.
As the global economic downturn starts to bite harder, a carefully cultivated partnership ethos may suffer in the rush to greater managerial control – particularly if the partners perceive that their peers are not being dealt with fairly. In these difficult times it is all the more important to understand which aspects of your partnership are valuable and must be defended and which are redundant and can be safely surrendered. It is all too easy for the troop of gladiators to end up becoming galley slaves.
Laura Empson is director of the Centre for Professional Service Firms at Cass Business School.
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