LAW.COM - July 18, 2024

In the ever-evolving legal landscape, mid-size law firms find themselves at a critical juncture. Seismic shifts, accelerated by the pandemic, have reshaped the very fabric of our industry. Now, more than ever, agility, innovation, and a steadfast commitment to meeting client needs are not just desirable traits, but essential for business survival.

Leaders of mid-sized firms are looking for solutions to challenges ranging from shifting client expectations to technology adoption and remote/hybrid work dynamics to reimaging client engagement, among numerous other issues, all with financial constraints unique to mid-sized firms. Still, most U.S. mid-size law firms have successfully navigated these challenges and even thrived in this environment.

That success is not due to our “mid” size or our plucky reputations. Mid-size firms have succeeded by identifying and embracing their values, changing the way work is done to attract and retain talented professionals, and addressing “third rail” issues, such as succession planning, head-on.

Law Firms Pressured to Take a Stand

Today, businesses in every industry are being asked to identify, demonstrate, and uphold core values. In the legal profession, these pressures can come from clients, lateral recruits, professional staff, and law students. Firms that clearly and transparently communicate the “how” and the “why” of decision-making and career success tend to have better recruitment and retention. New research also backs this up: 73% of employees will leave their current job for even a modest pay raise, particularly if they also feel their jobs are not stable or if they lack flexibility or opportunity for advancement.

Firms overcome these challenges by fostering transparency about their values and prioritizing internal initiatives that tackle crucial topics like career advancement, succession planning, flexible/hybrid work arrangements, childcare provisions, student loans, medical leave policies, and other top-of-mind issues at each respective firm.

Meeting Employees Where They Are, No Matter Where They Sit

As much as there appears to be an industry push for Return to Work (RTW) initiatives, flexibility rules the day. What worked for businesses and law firms five years ago doesn’t work today, and with the current pace of cultural and technological advancement, it is all but guaranteed that today’s business operations won’t cut it five years in the future. The only constant is change, and successful firms are those who have embraced a nimble approach concerning flexible work arrangements and other policies. This nimble approach also necessitates transparent, regular, open communication.

Every office culture, geographic market, and industry is unique and specific. It follows that each firm’s “remote work” approach and policies should also be tailored. No “one-size” fits all firms, even for various positions and offices within the same firm. Open communication and transparency facilitate consensus around shared values and commitment to common outcomes. This isn’t to imply leadership can or should attempt to please every internal and external constituent, but in the battle for legal and professional talent, it behooves firms to think proactively and clearly articulate those values and goals.

Numerous factors impact individual and firm-wide performance. Some law firms that have embraced flexible work arrangements are saving operations costs by taking their existing office space and doing more with it. When law firms do not require the same footprint, new office layouts may reflect fewer conference rooms, uniform individual office floor plans, and in some instances, hoteling and shared workspaces. These kinds of creative strategies indicate a significant — and positive — evolution for mid-sized firms, emphasizing adaptability and efficiency in the modern workplace.

Positioning the Next Generation of Leaders: Succession Planning In a Flexible Work Environment

From personal observation, it’s evident that succession planning is top of mind for almost every law firm leader. Effectively identifying and developing talent, while transitioning clients as senior top performers move toward retirement, is probably the one undertaking that managing partners dread most. It is the most often cited argument against flexible work arrangements. Without face time, how will we ever transition clients to the next generation of legal professionals?

However, many of the upcoming and current generation of leaders, including our best and brightest Gen X and millennial attorneys, prefer and are more comfortable with connecting through technology. This can be part of your succession planning solution, not part of the problem. Remaining nimble to embrace policies that accommodate multiple workstyles can position emerging leaders to shine.

Communication skills, adaptability, problem-solving, and collaboration are all essential for success in remote work environments. Performance metrics and feedback mechanisms can be shifted to fit remote work dynamics by focusing on outcomes and overall performance rather than input metrics, such as hours billed. Moreover, succession planning for remote workers requires a proactive approach to knowledge management and institutional memory. If your law firm does not have a “sharing” culture, your remote employees may be deprived of informal conversations or impromptu knowledge sharing that occurs in physical office settings.

To effectively compete in today’s flexible work environment, law firms must invest in robust knowledge management systems, enforce best practices for document management, and create centralized repositories for sharing resources and insights. Ensuring that critical information is accessible to all employees regardless of their location with collaboration tools and virtual communication channels facilitates knowledge sharing and cohesion among remote teams, positioning attorneys at all career stages to advance within the firm.

Incorporating Technology to Work Smarter, Not Harder to Connect with Clients

Getting to know some of our top-performing young attorneys in my first three-year term as managing member has made me realize that building client relationships has morphed into a largely technology-enabled effort for many attorneys. Still, many prefer to visit their clients in person. Here, again, flexibility and customizing the approach is the name of the game.

In a post-pandemic culture, we’ve found that many clients prefer the efficiency of Teams or Zoom rather than meeting in person. Depending on the situation or matter, some client engagements continue to necessitate face-to-face interaction. Ultimately, all clients want to know that you can get their work done on time, within budget, and without errors. Leveraging technology to facilitate virtual mentorship programs, online training modules, and networking events represent virtual meeting tools in every attorney’s toolbox. Because of the robust technology offerings now available, these tools can be customized to create the most meaningful and productive engagement based on the client’s and attorney’s preferences and the work at hand.

Ensuring Equitable, Not Physical, Access to Development Opportunities and Mentorship

Succession planning in a remote or hybrid environment requires a shift in mindset from traditional hierarchical structures to more agile and inclusive leadership models — models specifically designed to get the most out of people by meeting them where they are now. Embracing agile leadership models and prioritizing knowledge sharing are essential steps in building a resilient and adaptive workforce. This shift in mindset is particularly well-suited to younger professionals who want open communication, transparency, collaboration, diversity, and inclusion in the workplace.

Successful mid-sized law firms recognize that diversity extends across all aspects of the organization, from geographic areas to practice specialties and industry focus groups. Diversity encompasses not only demographics but also the lived experiences of our attorneys. Implementing workplace wellness and camaraderie initiatives supports business development and succession planning efforts by helping your team be at their best. These kinds of employee-centric programs build community and cultivate an environment where natural collaboration and respect thrive.

Use strategic communication and transparency to boost employee satisfaction, position your people to do their best work, and your law firm as a leading employer of choice. Top-down edicts are out of favor with today’s workers seeking a consistent and inclusive organizational structure and culture. By strategically injecting regular “positive disruption” into your governing positions across practices, offices, committees, and affinity groups, law firm leaders can make flexibility a beneficial standard practice. By investing in attorneys at all career stages, across industries and regions, law firms can grow and develop future rainmakers while nurturing and rewarding the rainmakers of today.

This article was published on LAW.COM on July 18, 2024, and is reprinted with permission.