|
One of the biggest questions asked by leaders in any profession
is, “What organizational principles should I implement
that will help my firm improve its performance?”
Management theories abound claiming to cure the ills of
any organization, and while there is no shortage of supposed
answers, the challenge facing leaders is to sift through
all the choices and pick an approach that will work for
them. Fortunately, a book has recently hit the shelves
that can provide some guidance. It seems by now that
everyone and their mother has read or heard about the
book Good to Great, written by Jim Collins,
and they all seem to agree that his conclusions are
visionary for a variety of businesses. The problem is,
however, whenever such superb books are published, there
lacks specific instruction as to how these powerful
ideas apply to the unique factors that exist within
specific industries.
We all know our legal industry is unique, so while
we might agree that his principles have profound ramifications
for law firms, what we need is a more specific roadmap,
one that acknowledges and accounts for the particular
issues faced by our profession. The following article
is my attempt to fill that gap. First, let’s talk
about the book itself for those of you have not been
baptized in his gospel.
Good-to-Great Companies
Collins started with 1,435 companies and conducted
exhaustive research to find 11 companies that exhibited
superior results over a sustainable fifteen year period.
He then studied those companies to find common characteristics
that distinguished them from others, and found that
these companies went through three stages:
- They found disciplined people
- They engaged in disciplined thinking
- They took disciplined action
While on the surface this seems to be the blinding
flash of the obvious, as always, the devil is in the
details. Let’s first take a closer look at these
three stages before talking specifically about how to
make them work in a law firm.
Disciplined People
Collins uses the analogy of a bus, and states that great
companies first need to get the right people on the
bus, in the right seats and the wrong people off. He
also tells us that these companies have what he calls
“Level 5” leaders, people who possess a
rare mix of personal humility and a strong desire to
help the organization succeed. These are individuals
who have strong ambition, not for themselves, but for
the organization. His advice is to place people who
exhibit these qualities in leadership positions, and
move the wrong people out.
Disciplined Thought
Making the move from good-to-great also requires an
honest look at the current reality. Collins tells us
that his great companies all engaged in a process of
looking at the “brutal facts” and engaging
in “vigorous debate” to gain “shared
insights.” These companies all had a standing
body, the “Council” that engaged in these
discussions and developed a simple, unifying strategy
around which the company could rally.
Disciplined Action
Collins goes back to his prior principles and states
that if you find disciplined people who conduct disciplined
thinking, you will get disciplined action. He says the
great companies create a “stop doing” list
of things that are not in alignment with the overall
goals, and they focus only on those activities that
support their simple, unifying strategies. The key is
to make a series of incremental changes, not dramatic
ones, in order to build momentum and thus get the organizational
“flywheel” moving. Collins observed that
under the right conditions, the problems of alignment,
commitment, motivation and change dissipate, and the
momentum builds upon itself, getting the flywheel moving
even faster.
The Reality Inside Law Firms
As I mentioned earlier, we need to translate these
basic principles so they can be applied in our particular
industry. This section will describe some of the initiatives
you can undertake that can get these dynamics in play
in your firms.
Disciplined People: Choose New Leaders
Collins shows us that great companies first have the
right people in the right places. In many law firms,
however, the wrong people occupy the wrong seats. Practice
group leaders are often given their jobs because of
seniority, or their books of business, not because of
their skills as leaders and managers. The answer is
simple; find the right people, with the right leadership
traits, and put them in the right positions. What is
not so simple are the hurt feelings and political maneuvering
that will result. Leaders also have to keep the pipeline
of future leaders full, which means recruiting and developing
people who have the requisite skills, while also providing
ongoing opportunities to hone their leadership abilities.
Disciplined Thought: Highly Functional Leadership
Team and Aligned Planning
Right thinking usually requires a process, a system
that 1) establishes an environment that allows for good
decision making; and 2) takes the decisions and applies
them to all levels of the firm. Unfortunately, many
leadership teams can’t get an effective process
started because of dysfunctional dynamics like internal
politics, infighting, power struggles, turf battles,
and egos. As a leader, your job is to reduce the influence
of these factors so that you can get to the truth and
make decisions that are in the best interests of the
firm as a whole. Skilled facilitation can get a group
focused on the big picture and establish an environment
where these negative influences are reduced and a new
dynamic for positive, productive interaction becomes
the norm.
It takes more than just a leadership team coming together
to form a unifying strategy to get the ball rolling.
Everyone in the firm must understand their role in making
the strategy a reality. The best process I’ve
seen is a series of aligned planning sessions, starting
with the firm-wide perspective, followed by the practice
groups, then shared services, and then staff. You get
the flywheel moving when you get everyone pushing, and
aligned planning makes sure everyone is pushing in the
right direction.
Disciplined Action: Training and Coaching
Collins’ research revealed that disciplined action
is a result of disciplined people doing disciplined
thinking. Realistically, most firms need additional
support to make this “magical alchemy” manifest
itself in superior results. The dual challenges of achieving
billable quotas and a lack of crucial business skills
makes another layer of intervention necessary.
Many firms provide training on how to become a technically
good lawyer. Glaringly absent is education on how to
become a good businessperson. These skills are usually
learned through trial and error, and the outcome is
a patchwork of often conflicting opinions on running
a firm. The solution is providing a uniform set of best
practices that your leaders can follow that will drive
the success of the firm.
Leadership Training
Using the human body as a metaphor, if strategic planning
represents the head, and implementation is the feet
of an organization, then leadership is the gut. Take
an honest look at your organizational anatomy. Is your
firm’s architecture tight and lean, providing
a strong connection from head to toe, or is it flabby
and out of shape, giving no support to your organization’s
backbone? As a leader, it is your role to get a clear
line of sight connection from top to bottom, and your
group leaders are the ones who make that happen.
A well-designed training program will incorporate specific
needs and will provide a unified approach to addressing
the major management/leadership issues facing the firm.
I also suggest incorporating the ideas of the participants
in order to remove the “not invented here”
dynamic that gets in the way of full acceptance and
implementation of the training.
Coaching
It’s one thing to be given knowledge; it’s
quite another to transform it into life-long skills.
To keep the flywheel moving, coaching and mentoring
can help ingrain the training and make it a part of
their everyday practice management skill set.
Conclusion
Let’s face it, who doesn’t want to be
great? We all want to be winners, to be part of a winning
team, and your role as a leader is to provide the infrastructure
that allows that to happen. By utilizing these approaches,
you can build momentum in the right direction. It might
just be the most rewarding professional experience of
your life.
This article is reprinted from Of Counsel with
the permission of Aspen Publishers
We have heard how the Good to Great principles
were important factors in helping companies achieve
superior results. Here is how it can be specifically
to law firms.
Implementing a Good to Great Process
| Good to Great Elements |
How to Implement the Elements |
Timeline |
| DISCIPLINED PEOPLE |
|
|
| Find Level 5 Leaders |
• Succession planning |
Ongoing |
First Who, Then What
• Right people on the bus • Right
people in right seats • Wrong people off
the bus
|
• Change leaders where needed
• Recruitment – find the right people
who possess the leadership skills
|
Ongoing |
| DISCIPLINED THOUGHT |
|
|
| Confront The Brutal Facts |
• Internal survey of all lawyers
and staff • Key stakeholder interviews
• Client surveys • Market research
|
Month 1 |
The Council •
Vigorous debate • Range of perspectives
• Group dialogue • Determine the
truth • Shared insights
|
• Regular meetings between key
department and practice group leaders, board members,
key management and/or opinion leaders |
Month 1 + |
The Hedgehog Concept
• Best in the world • Find economic
drivers • Deep passion • Search
for the best answers • Fully unify behind
a decision • The “stop-doing”
list • Focus on excellence •
Build on opportunities
|
• Collaborative strategic planning
sessions
o Overall firm planning
o Cascade to aligned practice group plans
o Cascade to support services plans
o Cascade to staff plans
o Supportive budgeting |
Month 2
Month 3
Month 4
Month 5
Tied to plans
|
| DISCIPLINED ACTION |
|
|
| Technology Accelerators |
• Fund supportive technologies
identified in planning process |
As needed |
Get the Flywheel Moving
• Create the conditions to drive commitment,
alignment, motivation and change • Manage
in a way that does not de-motivate • Create
an integrated whole that is much more powerful than
the sum of its parts
|
• Individual action plans aligned
to practice group plans • Skills development
o Leadership and management skills
o Business development skills
|
Month 6 Month 1
|
A Culture of Discipline
• Manage the system, not people
|
• Coaching and mentoring |
Month 2 + |
Continue the momentum
• Compensation system designed to get and
keep the right people
|
• Communicate successes
• Reward behaviors that support Hedgehog concept
|
Ongoing
Ongoing
|
Top
David
Freeman J.D., CEO and founder of Whetstone
Consulting LLC, helps firms and individual lawyers sharpen
their performance by providing customized services in
the areas of leadership training, business development
training, and goal-focused retreats. With over twenty
years of experience, he has worked with thousands of
lawyers in over 50 law firms across North America, including
24 in the AmLaw 200. He can be reached at dfreeman@whetstoneconsulting.com.
|