| HCM at Law Firms
Law firms' ability to deliver results, satisfy clients, grow, generate profits, and differentiate themselves from their competition is totally dependent on their employees. In essence, law firms are a pure "human capital play." Yet they are notoriously bad at managing and developing their people (with, of course, some exceptions).
With that in mind, McBassi partnered with the Association of Legal Administrators to undertake an analysis of the human capital management (HCM) factors that determine law firms' success. Sixty-nine law firms participated in this analysis.
The most important determinants of law firm success and profitability are partners' leadership skills and practices. To experts in the field of organizational development, this finding will come as no surprise. To some in the legal profession, however, this will be an eye-opening finding.
In particular, the most successful law firms have leaders and managers with the following characteristics:
Skilled at eliminating unnecessary barriers to effective work
Inclusive
Provide frequent and constructive feedback to employees who report to them
Inspire confidence
Communicate openly and honestly |
Other Important HCM Determinants of Law Firm Success
After leadership skills and practices, the next most important determinants of law firm success are learning and knowledge practices. In particular, the most successful law firms have the following characteristics:
Finally, the most successful law firms also successfully engage their employees in the following ways:
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Demonstrating commitment to employees through adequate job security, appropriate recognition of employees for their accomplishments, and the provision of opportunities for advancement
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Implementing systems for tracking and improving employee engagement
Ready to get started? Every law firm can improve each of these factors.
The first step toward doing so is to quantify and measure your firm's current strengths and weaknesses on these factors. This creates a benchmark that can both provide guidance about which interventions will be most effective in improving your firm's success, and serve as a baseline against which future progress can be measured. |
| Want to Know More?
To download a free copy of our new white paper, Leadership and Law Firm Success: A Statistical Analysis, click here.
The American Bar Association recently published Leadership for Lawyers, by McBassi's Chief Strategy Officer Herb Rubenstein. More information is available by clicking here. |
