The Conflict between practicing law and managing the business

The Conflict between practicing law and managing the business: when this problem emerges and how to solve it.

In one of my first metaphorical comparisons about the business called LAW FIRMS, I compared them to a restaurant, asking the following question: What makes a person go (or return) to a certain restaurant?

The answer was (and still is): great food, great treatment/services and consistent price!

As it has already been mentioned, Law Firms perfectly fit in this answer, only replacing the expression “great food” with “great legal solutions”, or “great legal solutions, great treatment/services and consistent prices!

For this to be possible, we shall need great professionals (legal or managerial), current systems and technology, much training and mainly a properly sized and very good organization and it is at this very point that the mentioned conflicts begin to appear.

I again need, in this moment, to refer to the natural evolution of a law firm after its creation. We have already seen that offices are generally set up by the agglutination of two or more legal professionals who, due to several reasons (complementation of areas, professional affinities, entrepreneurship, personal and ethical objectives, etc.) get together and set up a law firm.

Again, the metaphorical comparison with a restaurant becomes illustrative, as we can compare the lawyer(s) that hold the knowledge and the technical skills to provide ideal legal solutions to their clients, to a Chef that also holds the knowledge and skills to make delicious dishes.

Now, let us imagine that this Chef in the evening (just as an example) will be heading the production of those dishes, but he also has to worry mainly about the correct choice and purchase of the products (meat, fish, vegetables, seasonings, etc.); with the contracting and training of maîtres, sommeliers, waiters, receptionists, etc.; with the decoration and presentation of the tables and, at last, with the financial aspects of the business called the “restaurant”.

In the same way a Chef likes to create and make his dishes,  the lawyers also like to advocate and create legal solutions to their challenges, but they must also worry about  all the other tasks and decisions that are inherent  to the managing of their business and that are generally regarded as “boring obligations” or” necessary evil”.

As the business grows, (because of the good dishes or the great legal solutions offered), it is natural that the management becomes more and more complex, requiring  the Chef’s or the manager partner’s  more and more attention and “stealing” their time in the production of their technical works (to which they so much like to dedicate).

The solution to this conflict comes up when the company (whatever it is) begins to worry about the other back-office works, as important as the ones of the so-called “core business”, which are necessary for the fulfillment of other requirements in order to be successful.

The correct dimensioning and training of the administrative team of a good technical level; the adoption of the current technological infrastructure and correctly adapted to the business; the constant training and improvement of all members of the company and, mainly,everyone’s alignment to the company’s ´philosophy, are fundamental to relieve the managing lawyer, giving him more time to dedicate himself to the legal production.

All those aspects, added to the delivered product, enable the company to achieve the quality that is necessary to satisfyits clients and this answers our initial question!

José Paulo Graciotti, is consultant and founding Partner of GRACIOTTI ASSESSORIA EMPRESARIAL, engeneer by Escola Politécnica Universidade de São Paulo, with Financial MBA at FGV and specialized in Knowledge Mnagement by FGV. ILTA Member since 1998 (International Legal Technology Association) and ALA (Association of Legal Administrators), with more than 28 years managing Law Firms in Brazil – www.graciotti.com.br

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