Page 240 - 2019 - Leaders in Legal Business (n)
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but only for certain law firms. It does work in practice; look at the premium segment of the legal
market. For these law firms with, say, up to 100 partners, the traditional partnership model is the
only conceivable structure.
What about the law factories? Law firms with offices all over the world are more like a
corporation and should structure themselves accordingly. While traditional partnerships do not
need anything like genuine management, law factories can’t do without it. That also applies to
Swiss Vereins — this structure was sold as something that could do without global management,
but in reality no Swiss Verein has a long-term future without a management structure. This has
consequences for those who are called “partners”: no veto rights and no right to deviate from the
firm’s strategy. It is not a majority versus a minority of partners; it requires partners to put the
firm’s interests over and above their own personal interests. You don’t like it? Go and choose
another firm.
Finally, the business of law firms, be it a traditional partnership or a law factory, has
nothing to do with partnership models. The firm’s IT, HR, marketing, and other service
departments have to be organized and managed like a corporation, even in traditional partnerships.
And this is it for John Doe. Three simple topics to focus upon: market position, client focus,
and structure. This should be the starting point for the firm’s plan to make sure it is still there in
three years.
225
market. For these law firms with, say, up to 100 partners, the traditional partnership model is the
only conceivable structure.
What about the law factories? Law firms with offices all over the world are more like a
corporation and should structure themselves accordingly. While traditional partnerships do not
need anything like genuine management, law factories can’t do without it. That also applies to
Swiss Vereins — this structure was sold as something that could do without global management,
but in reality no Swiss Verein has a long-term future without a management structure. This has
consequences for those who are called “partners”: no veto rights and no right to deviate from the
firm’s strategy. It is not a majority versus a minority of partners; it requires partners to put the
firm’s interests over and above their own personal interests. You don’t like it? Go and choose
another firm.
Finally, the business of law firms, be it a traditional partnership or a law factory, has
nothing to do with partnership models. The firm’s IT, HR, marketing, and other service
departments have to be organized and managed like a corporation, even in traditional partnerships.
And this is it for John Doe. Three simple topics to focus upon: market position, client focus,
and structure. This should be the starting point for the firm’s plan to make sure it is still there in
three years.
225
