Duties of a Managing Partner in a Law Firm

Functions of Managing Partners

A law firm’s managing partner is primarily responsible for overseeing the entire organization from a big picture perspective, which involves a variety of strategic responsibilities. Managing partners are expected to both develop a compelling long-term plan for their firm and to execute that plan in ways that are productive for the firm’s clients, financially successful for the firm, and supportive of key attorney talent within the firm.
In addition to developing a long-term plan based on the firm’s goals, a managing partner evaluates the daily operations of the firm and how those operations contribute to the overall plan for the firm. This includes managing lawyer, support staff, and other professional resources in ways that are aligned with the plan for the firm and producing maximum efficiency and productivity. By examining the day-to-day operations of the firm , a managing partner can make decisions about how to best utilize the firm’s resources to maximize profitability and efficiency.
Part of a managing partner’s job is to inspire confidence and enthusiasm within the firm’s employees by creating broad direction and clear leadership regarding where the firm is going and how it intends to get there. Developing this type of vision requires a managing partner to engage in planning that is both big picture and practical. The planning role must be both internal and external in nature—understanding how the firm operates from the ground up while also having an awareness of what is happening in the legal market. Planning requires the collaboration of numerous parties, including practice group leaders, executive committees, and marketing departments.

Competencies and Qualifications of a Managing Partner

The road to becoming a managing partner often requires a substantial legal career in addition to management experience. Many managing partners are outstanding lawyers who have demonstrated trial and industry expertise, and legal acumen is essential. A managing partner must also be able to identify with the culture of the firm and the people who comprise it in order to be an excellent leader.
In addition to these qualifications, the skills necessary to become a successful managing partner include attention to detail, an appreciation for the bottom line, a sense for human emotions, extreme resourcefulness, highly developed strategic thinking skills, and an appetite for hard work. Because a managing partner must be an effective communicator, strong interpersonal skills are also critical. Building consensus and motivating, mentoring and consulting with other lawyers and staff are all part of the day-to-day responsibilities of a managing partner. Business skills, often honed through years of practice experience, are fundamental. Managing partners must be well organized and outcome-driven.

Issues Facing Managing Partners

The role of a managing partner is not without its challenges. Although a managing partner has a strategic vision, that vision often must bend to the will of department heads and senior shareholders. While managing partners may have some degree of financial authority, their access to client revenues is often dependent on shareholder goodwill. Client relationships are at times controlled by the shareholders and the managing partner may feel handcuffed when a major client relationship changes or is lost. A client relationship soiled by a conflict of interest may remain under shareholder control for the sake of inertia and continuity. Managing partners also often suffer when it comes to conflict resolutions. Many managing partners serve at the pleasure of the shareholders and have very little power when it comes to addressing interpersonal dynamics. Senior members of the firm may view a managing partner as a liability and as such, will resist constructive cultural change led by a managing partner. Dissenting voices may become bitter as time passes and resentment builds. In the end, disagreements among shareholders may lead to the ousting of the managing partner, however well he or she may have served. These hurdles are very real and must be overcome if a managing partner is to achieve the goals set for the firm and for themselves.

The Contribution of a Managing Partner to the Growth of a Law Firm

The effect of an effective managing partner can be felt throughout and by every aspect of a law firm. Law firm success is typically a reflection of the individual efforts of each firm’s managing partner. Considering the complicated nature of running a law firm, minimal generalizations about what makes for a successful law firm can be made. Each firm has its own challenges, strengths and weaknesses that must be considered when judging a law firm operator’s effectiveness. However, one of the keys to a successful law firm is a managing partner. And the most successful firms understand crucial role a managing partner plays in law firm success. The author of "The Partnership: The Making of a Franchise, How an Old-line Law Firm Leads the Way," James Doran, noted how nearly all law firm failures occur when: "[C]hanges in the market are not recognized promptly. Growth in the law firm comes to a rapid standstill, and high morale of a previous high growth period is lost, and is replaced by an overall economics, and passionless routine." The procedures and techniques needed to complete most deal work are highly sophisticated; thus , development of ethical, adequate, and profitable law firm practices is a core role of any managing partner; and a necessary role of every firm for that matter. An important function of a firm’s management team is developing law firm policies and procedures regarding the quality of their work product. Law firms that lack a standard, up to date procedures and practices, especially with respect to the updating of old forms or templates, may find their firm’s reputation suffers, along with the actual quality of the work provided. A law firm’s managing partner must fully utilize the administration or management team to develop procedures and practices so that every attorney and paralegal is performing meets the firm’s necessary standards. But the writing and implementation of a firm’s policy and procedures is only one of a firm’s many functions. It is the function of a company’s managing partner or management team to put these procedures in place and monitor the firm’s compliance with these procedures. That is part of the importance of a law firm’s management team; and how they can maintain a firm’s success.

Path to Becoming a Managing Partner

Achieving the position of a managing partner typically follows a path of steady upward mobility within a law firm. As a young lawyer, you may first join a firm as an associate, where the focus is on gaining experience in various areas of law and honing your skills under the mentorship of seasoned partners. Demonstrating a strong work ethic, a commitment to the firm’s values, and the ability to collaborate effectively with colleagues from diverse backgrounds is paramount.
Excelling in this associate role often opens the door to being elevated to the rank of junior partner, where the expectations broaden to include greater control over your caseload, strategic involvement with clients, and opportunities to contribute to the firm at a more fundamental level. This may also involve attracting new business to the firm and developing a deeper understanding of the leadership challenges, as well as the administrative functions that support the law firm’s success.
From this level, a path to managing partner generally requires consistency in achieving positive results for clients and the firm. Your reputation within the firm and the legal community, coupled with a proven track record of success, will help to accelerate your career progression. Participation in special projects, such as a merger with another firm or a successful litigation case, combined with awards and accolades, is also a positive sign.
The timeline for becoming a managing partner varies widely, but it is a role earned through longevity, competence, and an unwavering commitment to the firm’s success.

The Changing Nature of Managing Partners in Contemporary Law Firms

While the position of a managing partner has traditionally been one of oversight for operations, budgets, and people within the law firm, modern legal consumers, the expansion of technology within the industry, and trends toward virtual and flat rate firms have caused philosophy behind the position to shift as the role evolves. In order to stay engaged with the firm’s changing client base and their individual needs, the modern day managing partner is moving away formalized management structures that are overseen by partners in favor of a more collaborative environment for day-to-day operations .
By managing their practice with a focus on improving client service through operational efficiency and strategic flexibility in setting firm goals, most modern firms now see their managing partners more as CEO’s than just the metaphoric figurehead of the firm. All the while, today’s managing partners also face pressure to achieve profitable growth, which is compounded by fee pressures from larger clients, the development of sophisticated in-house legal departments, more motion in the marketplace and aggressive competition from alternative business structures (ABS).