Post #770 – Wednesday, January 18, 2017

What Leadership Messages Are You Sending?

One of the more profound things I’ve learned and try to pass along to new leaders (be they managing partners or practice heads) is to “act like you are on stage at all times… because you are!”  Everything you do and say will send messages, set a tone, establish expectations and communicate direction about what is of priority to you.

With that in mind, you need to carefully orchestrate what symbolic acts you may want to execute to create a lasting impression and convey what you stand for in 2017. In other words, you need to always think through the following items.

Read the remainder of my latest column on Legal Executive Institute.

Post #769 – Wednesday, January 11, 2017

What Do You Know About BlockChain?

In 2015, Virgin’s Richard Branson hosted a “blockchain summit” on his private Caribbean island.  In that same year, while addressing a Conference of managing partners and legal marketing professionals, I asked the audience, how many of them had heard about BlockChain and to my surprise not a single hand was raised.  And that has been the pattern throughout all of 2016 whenever I broach the topic with some group of lawyers – including in December when I raised the topic again amongst the partners of a significant I.P boutique.

Well, for what it’s worth, I received a note the other day from Gerald Celente, Publisher of The TRENDS JOURNAL, updating me on a few of the latest developments.

Groups ranging from Wells Fargo to the London Stock Exchange are getting ready for a blockchain-based future.  Overall, more than $1.5 billion has been invested worldwide in blockchains’ possibilities so far.  Goldman Sachs has put $50 million into startups creating their own blockchains.  And the U.S. Federal Reserve, the Bank of England and the Bank of Canada have all announced plans to examine the pros and cons of digital currencies.  Perhaps as early as this year, your bank or investment manager could be managing your money with blockchains.  But blockchains will reach beyond banks — it’s good for much more than logging payments. They can be used to validate the security of anything with value.

Gem, a blockchain entrant, has partnered with Capital One and healthcare giant Philips to smooth and speed payments for medical insurance claims.  The Cambridge, Massachusetts, company Learning Machine has partnered with MIT’s Media Lab to create a blockchain that stores and verifies academic degrees and professional certifications. A college graduate can store diplomas and certificates electronically on a smartphone.

In June, the U.S. Department of Homeland Security gave a $199,000 grant to Factom, a company in Austin, Texas, to figure out ways to use blockchain designs to maintain the integrity of the so-called internet of things.  With every device connected to every other one through the internet, the potential for hackers and malware skyrockets. Blockchains may be a new tool for cybersecurity.  And with a grant from the Bill and Melinda Gates Foundation, Factom is setting out to apply blockchains to secure electronic medical records as well.

It’s not only about keeping snooping insurance companies from prying into your health history.  There’s also the problem that medical records in developing countries or remote regions aren’t always accessible and sometimes not updated quickly.  Blockchains resolve those problems.  Using the blockchain’s options, people could decide who may see their medical records. People could even have ready access to their own records, instead of wrangling with a doctor before getting a look.

Major companies are betting big on blockchaining’s future.  To set a standard, more than 30 major companies — including Hitachi, JP Morgan and Intel — have formed Hyperledger.  That project aims to settle on a general-purpose blockchain structure that can be used by any enterprise in any industry. IBM already has chipped in tens of thousands of lines of software code to the venture.  These companies, like so many others, invest in the effort because they foresee the benefits.

I believe that Blockchains will transform the way we exchange value in our digital, cyber-insecure future.

Post #768 – Friday, December 23, 2016

2016 Year End Review

I’m often asked about my consulting practice, what kinds of assignments I get called in on, for what sized firms; what I’m currently researching and writing about, and just generally how I spend my professional time.  As always, at this time of the year, I looked back over my various activities.  With some of these items (like clients served) activity is not a sufficient measure; results and the client’s satisfaction are really what counts (and to that end, you can find over 100 client testimonials and endorsements throughout this web site).  But for purposes of looking at where one’s time is invested, here is what my 2016 looked like:

CLIENTS / FIRMS SERVED

• Geographic Locations:
86% U.S. Based
14% International (Europe & Asia)

• Nature of Assignments:
26% developing / implementing strategic plans
62% governance and leadership issues
12% client relations and marketing counsel

• Firm Size Range:
29% firms of over 500 attorneys
14% firms of 300 to 500 attorneys
29% firms of 100 to 300 attorneys
21% non-legal client firms
  7% corporate legal departments

SPEAKING ENGAGEMENTS

• Participated in Presenting at 7 Webinars
Law Firm Succession  - Ark US Events (May)
Addressing Performance Issues – Ark US Events (July)
Practice Leadership – Association of Legal Administrators (August)
Succession Planning – CPA Leadership Institute (October)
Pricing Different Practices Differently – Ark US Events (November)
Create High Performance Practices – Ark US Events (November)
Effective Groups – Leadership Excellence (December)

• Participated in 5 Conferences, Workshops & MasterClasses
Co-facilitator – First 100 Days Masterclass   (Atlanta in January)
Facilitator – Practice Group Leaders Workshops (San Francisco in February / Chicago in August)
Facilitator – Managing Partner Forum Boot Camp  (London in March)
Presenter – Managing Partner Institute  (Los Angeles in April)

THOUGHT LEADERSHIP

• Contributed Chapter to 1 New Book:
Inovativni Pravnici - Proceedings From CCE Conference about Innovations in Law (E.conomia, Czech Republic, 2016)

• And Acknowledged As Contributing Source:
How to Become The Firm of Choice: Win the best clients, Recruit the best people, Increase profitability by taking your firm to the next level - - August J. Aquila and Robert J. Lees (CPA Trendiness, 2016)

• Authored or Contributed to 24 Articles in Publications including:
AmericanLawyer.com
Forbes
Law.com
Leaders Excellence Journal
Legal Business Insider newsletter [UK]
Legal Business World Magazine
Legal Executive Institute
Of Counsel – Legal Practice and Management Report

• Two new issues (Spring & Fall) of my INTERNATIONAL REVIEW 24-page glossy magazine were produced and distributed to 1800 firm leaders.

• Wrote and posted 12 different articles covering leadership and strategy issues on my LinkedIn site.

OTHER ACHIEVEMENTS 

• Appointed as a Faculty Member for the MBA Workshop Series conducted by Leaders Excellence at Harvard Square.

This is an online executive development program consisting of highly interactive sessions with MBA topics, at MBA level, by MBA faculty and guest star leadership experts; designed for those seeking cross-functional management and leadership development. Each workshop consists of 1 hour of effective online lecturing and is presented LIVE in our online study rooms in order to provide you with inspirational ideas, penetrating insights, and practical advice from MBA faculty and leadership experts. If requested by the professor, each workshop can be prolonged up to 30 minutes.

• Profiled in the 35th edition of The Writers Directory – as published by Gale / Cengage Learning.

• Have now received over 150 “UNSOLICITED” LinkedIn Endorsements for my strategic expertise from firm leaders and senior professionals in major firms including:

Allen & Overy (Europe); Baker & McKenzie (Asia); Barnes & Thornburg; Dickinson Wright; Faegre Baker Daniels; Fasken Martineau (Canada); Fragomen Del Ray; Gordon & Rees; Gowlings (Canada); Jackson Lewis; Kutak Rock; Linklaters (Europe); Mayer Brown; Miller Canfield; NautaDutilh (Europe); Nelson Mullins; Shook Hardy & Bacon; Skadden Arps; Thompson & Knight; and Wyatt Tarrant.

To all of my valued clients, colleagues and friends, I want to say THANK YOU for allowing me to spend time with you; for your confidence, your commitment and your fellowship.  I wish you and your families the Very Best in 2017

Rant #767 – Tuesday, October 25, 2016

Law Firms Suffer The Behavior They Tolerate

93% of AmLaw 100 firms have experienced bullying, a lack of respect, and “me-first” attitudes among their ranks, despite 87% of them reporting how important it is to have written value statements sufficiently specific to ensure behavior that is consistent with those values.  In the first of a series of Leader’s Pulse Surveys, consultants David J. Parnell and Patrick J. McKenna find from the survey results of 124 responding firms (both in and out of the AmLaw 100) that partly to blame is that only one in four firms “have any clear and tough sanctions for behavior that does not comply with their values”. Further, firm leaders tolerate bad behavior among their partners, and often among those who may be considered their higher performing colleagues.

What Kinds Of Bad Behavior?

The top five most common detrimental behaviors that firm leaders cited, say Parnell and McKenna, include: “bullying behavior and lack of respect” (by 89% of respondents); “not being a team player with a ‘me-first’ personal agenda” (84%); “poor matter management habits like getting in time, etc.” (80%); “failure to achieve work quality standards” (76%); and “negative attitude infecting others” (69%).

Among the AmLaw 100 respondents, while these top five were the same, there was a three-way tie at the #1 spot with “poor matter management habits like getting in time, etc.”; “bullying behavior and lack of respect”; and “not being a team player with a ‘me-first’ personal agenda” – all scoring at 93%. 

Parnell and McKenna reported that there was no shortage of additional examples of bad behavior raised by numerous leaders: “blocking the advancement of others and acting out”; “failing to share credit and failing to treat staff with respect”; “not managing files to a budget”; “big egos engaged in internal empire building”; “failing to address and support diversity issues”, and even “general poor behavior: the ‘- - - hole factor’.”

Fear Of Addressing The Problem

“It is our view,” say Parnell and McKenna, “that a significant number of firm leaders feel deeply uncomfortable with confronting the inappropriate behavior of their colleagues, thereby delaying or even preventing intervention altogether.”  By way of supporting evidence, their survey results indicate that when firms were asked whether discomfort among leadership in challenging detrimental actors has been strong enough to delay addressing the problem, they were told that that was indeed the case in 41% of the firms – about which, they opined, “if we think about it, is a pretty tough question for many leaders to hear, given that they may have to admit some degree of failure.”

The authors of the survey went on to say, “We then went even a step further and inquired as to whether that ‘discomfort was strong enough to altogether prevent leaders from addressing the problem’, and had a surprising one out of four firms – 22% – freely admit that that was the case.”

The consultants report that a very telling observation came from one managing partner who said, “Any of the above could be actionable,” regarding the detrimental behavior elaborated upon in the survey, “but typically is limited to consideration in compensation for partners. However, the status of the partner and the amount of billings appears to affect what action, if any, is taken.” 

When asked about how they might confront bad behavior if-and-when they do, the survey uncovered that 82% of leaders would “first confront detrimental actors – one-on-one”, but with some reporting “not as often as we should” and “our less well managed groups and offices just ignore it until someone else has to deal with it.”

The Effectiveness Of Current Methods Of Intervention

So just how effective are those leaders who do confront bad actors within the firm? Many will see little real change in behavior!  In fact, sadly, the consultants were informed by 47% of the firms that “our detrimental actors have been repeat offenders despite intervention.” Some of these firm leaders reported a range of responses from “the intervention is often tepid and carried out by the wrong people” to “these actors repeat but less frequently and less severely.”

The consultants conclude: “What is clear to us is that law firm leaders, in order to protect their important cultural and competitive standing, need to not only more actively encourage behavior consistent with their stated firm values, but to also confront those acting out quicker and with more effective methods than they seem to be doing currently.  As one firm leader expressed it best, ‘These kinds of problems don’t go away on their own and they certainly don’t improve with age.’”

Rant #766 – Thursday, October 13, 2016

Succession Planning Is Inevitable

Other than taxes and death, the only other sure thing that will happen in all organizations is succession planning.  Failure to plan for succession is, perhaps, the greatest current threat to the future of professional firms and should be one of your most important strategic issues.  Since the issue won't go away or won't be resolved by itself, it is critical to have your firm management or the partner group address this issue rather than ignoring it.

Please join me on October 27^th for a special Webinar on Succession Planning where I will be joined by:

August Aquila, founder and CEO of Aquila Global Advisors and a key thought leader for professional service firms.

Vincent A. Cino, the Chairman of Jackson Lewis P.C. a Global 100 law firm and responsible for the entire firm's day-to-day administration and management.

William Herman, former Managing Partner from 2001–2009 at Plante Moran, he was on the firm's leadership team from 1995–2001 and launched the Ann Arbor office in 1982.

You can obtain further details HERE

Post #765 – Tuesday, August 30, 2016

The Fall-Winter 2016 Issue of International Review Is Now Available

INTERNATIONAL REVIEW is my 24-page glossy, printed magazine, distributed to over 1600 law firm chairs and managing partners throughout North America.

Our Fall-Winter issue begins with Your Guide To Charting A Strategic Direction For Your Practice Groups.  You may recall that in my “Bring Your Strategy Process Back To Life” article (see my Spring-Summer 2016 issue) I advocated for making your practice groups the key building blocks for your firm’s future direction.  I reported on how “there is nothing more exciting than to observe lawyers enthusiastically devoting their limited and precious non-billable time into developing new and potentially lucrative practice niches.”  This article is intended to serve as your hands-on guide to understanding how to make this happen in your firm.

I was delighted to join some old friends, Vincent Sergi, Chairman Emeritus, Katten Muchin Rosenman; Edwin Reeser, occasional article co-author and former office Managing Partner of an AmLaw 40 firm; and Nick Jarrett-Kerr, Principal with Edge International UK in conducting a Webinar together.  The Underproductive Lawyer: Addressing Performance Issues is a transcript of some of my remarks in response to the questions posed.

Effective Leaders Are Not Necessarily Nice is a counterintuitive reminder on how, while we may all want to be liked, admired and perceived as loyal to our colleagues, we need to remember that “nice” leaders don’t always enforce rules or take on difficult situations which can ultimately contribute to their not producing results.

Finally, Solving The ‘Commitment Drift’ Frustration is some straight-forward guidance on how to prevent the situation wherein well-meaning partners may make promises to you and their fellow group members, but don’t always follow through.

As always, I sincerely hope that you find practical ideas, tips and techniques here that you can put to use immediately.  Please send me your candid observations, critiques, comments and suggestions with respect to any of these articles.

Click on the Cover to download your complimentary PDF copy of the magazine.

Post #764 – Monday, August 29, 2016

New Law Firm Leadership Testing Results

A new study emanating from the UK attempts to investigate the influence of personality on leadership potential in lawyers.  Based on the responses from over 100 lawyers the research found that lawyers are less able to cope with uncertainty and less suited to handle difficult situations, than are other professionals.

Edward Walker, a psychology postgraduate at Leeds University and former law firm graduate recruiter who conducted the study, reported that this research has interesting implications for identifying and developing leaders in law firms: ‘Cognitive ability and personality traits are the two most reliable predictors of future success; it therefore makes logical sense that firms pay careful attention to both when recruiting and developing their lawyers.’

You may access and read Edward’s 7-page report: The Influence of Personality on The Leadership Potential of Lawyers

Post #763 – Thursday, August 25, 2016

Innovative Design For Your Law Office

Visiting one of my clients in Washington DC recently, I was struck by a number of the innovative features that were contained within their Reception area, which was a sharp contrast to some of the more sterile environments that many firms seem to create.  In a similar manner I came across and was thoroughly impressed by the work on Nick Kazakoff, co-founder of OneTwoSix Design and recently profiled by Western Living Magazine (August issue) as one of a handful of rising design stars –  “Industrial Designers To Watch.”

One standout piece is their Loop phone booth (shown here)—a modern glass-and-maple soundproof phone booth that provides privacy for confidential phone calls or for working on your laptop, in open-concept offices.  “It’s so creative and so practical,” says Judge Paolo Cravedi.

And, given the increasing costs of downtown commercial real estate and the decreasing sizes of both partners and associate's offices these days, this innovation may just work as an office for some of your professionals.

For more information, have a look at Nick’s website - http://onetwosix.design

Post #762 – Friday, August 5, 2016

Skills Women Need To Be Successful Leaders

A session recently organized by Cadwalader explored the skills that women need to be successful leaders:

•    Cultivate your own leadership style and find your own voice, deriving confidence through competence.  It's also important to avoid being too self-critical. 

•    Welcome not only positive feedback, but honest and constructive appraisals. Entrepreneurialism is also important - for example, looking for opportunities and making the most of them.

•    In general, women are good team managers, adept at conflict resolution and juggling various personalities and logistical demands. Women's capacity to encourage and motivate the marginalized allows them to bridge gaps more naturally and find common ground.

•    When negotiating salary offers, let your negotiating counterpart know that you understand their position and that your own position is legitimate and justifiable. Showing effective negotiation skills enhances women's role in a firm.

•    Firms need to show greater commitment to supporting their female talent through key career crossroads, and by encouraging men to take paternity leave.

•    The global competitive environment places a premium on leaders who can encourage and guide their teams, and the growth of strong women's networks and sponsorship programs provide the support and opportunities crucial to advancement.

Women should feel empowered and ask for what they believe they deserve.  Confidence backed by a logical argument is a winning combination.

The panel discussion was moderated by Claire Cockerton, Chairwoman, Entiq, and Co-Founder of Innovate Finance, and included Eileen Herlihy, Executive Director and EMEA Head of Clearing Sales, J.P.Morgan; Cathryn Lyall, Chief Operating Officer, CurveGlobal, London Stock Exchange Group; Joanna Nader, Chief Investment Officer, JRJ Group; Meryam Omi, Head of Sustainability, Legal & General Investment Management; and Louisa Watt, Partner and Head of Cadwalader's Debt and Claims Trading Practice. 

Post #761 – Monday, August 1, 2016

Solving The ‘Commitment Drift’ Frustration

If there is one single frustration that I hear from firm and practice leaders on a continual basis it is trying to determine how to deal with the “commitment drift” of those partners who make promises but don’t always follow through. In other words, how do you ensure task completion on important projects when your partners agree to do something at the implementation stage, and you’re uncertain that you will see the necessary committed follow-through?

Whether it is in a practice group setting, around the table with the members of your Strategic Planning Committee, or wherever colleagues are meeting, this seems to be one of the most common challenges. That said, there are seven important steps you can take to ensure results (in most cases):

Read the remainder of my latest column on Legal Executive Institute