Optimizing Practice Management (eBook)

About the authors ................................................................................................VII

Preface ................................................................................................................IX

Foreword and acknowledgments ......................................................................... XIII

Executive summary ............................................................................................. XV

Chapter 1: Practice management – An overview ......................................................1
1.1 Setting the stage .................................................................................. 1
1.2 History of practice management .............................................................. 2
1.3 Practice management defined ................................................................. 4
1.4 The business case for practice management............................................... 4

Chapter 2: The foundation for effective practice management ................................. 11
2.1 Firm strategy .......................................................................................11
2.2 Governance and management .............................................................. 13
2.3 Leadership ........................................................................................ 18
2.4 Compensation .................................................................................. 19
2.5 Partner buy-in ..................................................................................... 25

Chapter 3: Implementing the foundational elements ................................................29
3.1 The institutional model .......................................................................... 29
3.2 The talent model .................................................................................31
3.3 The business unit model ....................................................................... 32

Chapter 4: Developing an effective practice management structure ..........................35
4.1 Selecting the primary dimension of management ...................................... 35
4.2 Matrix management structures as firms grow more complex ........................ 42
4.3 Size and make-up of groups ................................................................ 44
4.4 Requirements and standards for business unit membership ........................... 45

Chapter 5: Making practice management work .....................................................49
5.1 Interrelationship between practice management, firm functions, and systems .. 49
5.2 Management supervision and support of the practice structure ..................... 50
5.3 Measuring business unit success ............................................................ 53
5.4 Avoiding missteps in implementing effective practice management ................ 54
5.5 Case studies of two exemplary firms implementing practice management ...... 57
5.6 Q&A with a successful practice leader ................................................... 60

Chapter 6: Leadership of business units .................................................................65
6.1 Selection of business unit/practice leaders ............................................... 65
6.2 Characteristics of effective practice leaders .............................................. 66
6.3 The practice leader’s role and responsibilities ........................................... 69
6.4 Time commitment for practice leaders .................................................... 72
6.5 Developing shared leadership .............................................................. 73
6.6 Training and development of practice leaders ......................................... 75

Conclusion ..........................................................................................................77

Appendix 1: 2014 Practice Management Survey – Summary of results for participants from large US law firms .....................................................................79
I. Introduction........................................................................................... 80
II. Survey participants ................................................................................ 82
III. Overall practice management structure ..................................................... 84
IV. Practice leader selection and reporting relationships ................................... 87
V. Assignment of lawyers to practice groups .................................................. 89
VI. Practice group leaders – General information ............................................ 91
VII. Practice group leaders – Role and responsibility ........................................ 94
VIII. Practice group leaders – Hours ............................................................. 96
IX. Practice group leaders – Compensation input and allocation ........................ 99
X. Financial management and budgeting ................................................... 105
XI. Practice planning and budgeting ........................................................... 108
XII. Retirement and succession planning ........................................................ 111
XIII. Practice group professionals ................................................................. 113
XIV. Meetings/Training .............................................................................114
XV. Barriers to implementing effective practice management ............................ 117
XVI. Conclusion .......................................................................................118

Appendix 2: Practice group members – Sample position descriptions .....................119
Practice group leader: Position description ....................................................120
Department leader: Position description ........................................................125
Industry team leader: Position description .....................................................129
Practice group professionals position description – Introductory comments ...........130
Optimizing Practice Management: Driving Profitability and Market Position
Practice group professionals: Business unit director – Position description .............132
Practice group professionals: Business unit manager – Position description ...........136
Practice group professionals: Director of practice management – Position
description .............................................................................................138
Practice group professionals: Practice group manager – Position description ....... 140
Comparison of management roles ............................................................. 143