Start by asking whether you want employees or partners. What is the criteria for becoming an equity partner? Is client development part of that criteria? Should they contribute capital? If they are not adding value to the firm - growth - you are diluting the earnings pool and reducing the size of the pie for yourselves. Personally, I think that in most firms criteria for becoming an equity partner should, among other things, include client development and a capital contribution. They should have some skin in the game, contribute capital, and signup for their share of the liabilities. I also believe they should then be included in the inner circle.

Develop equity, non-equity, and associate career progression plans - associate to non-equity partner and non-equity partner to equity partner - outlining timeline for consideration, the consideration process, the criteria, and the respective and expectations for each. (What it means)

Make the criteria tough and resist the temptation to make everyone a partner.

A survey of 115 mostly large law firms has found partner billable hours are on the decline, and some lawyers will find themselves without employment as a result.

Fifteen percent of the firms surveyed by Wells Fargo Private Bank plan to cut partners in the first quarter of 2013, Reuters reports. The number is higher than the usual 5 percent typically reflected in the survey, but lower than recession highs of about 25 percent.

Question I am the owner of a 12 attorney firm in Dallas. We have 26 people including attorneys and staff. I founded the firm 20 years ago. While we have an Accounting Manager - I am responsible for the management and direction of the firm. While we have done okay over the years - I often feel deficient as a manager and am not always sure that I am covering all of the bases. Is there such thing as management 101 for guys like me?

Answer:You are not alone. Mention management 101 and I think of the five functions of management. Each of these roles must be performed by someone in every law firm and business if it is to be successful. In a small firm such as yours you must perform each of these functions and be reasonably good at all of them. Here are the five functions:

Are you looking for a quick and dirty checklist to use to review the profitability of your practice. Click below for a copy of our Law Practice Profitability Checkup.

We frequently consult and work with law firm clients working on implementing succession strategies that involve the sale of a law practice, merging with another firm, or hiring lateral talent. If you are looking to join up with another firm keep us in mind. We will be posting confidential listings on our website in the near future.