Analysis

3 Qualities That Help Law Firms Thrive In Times Of Crisis

By Aebra Coe
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Law360 (June 3, 2020, 2:08 PM EDT) -- As the legal industry grapples with the upheaval caused by the coronavirus pandemic, law firms that possess certain characteristics will not only survive but thrive in this time of massive uncertainty.

Law firm management consultants who spoke to Law360 said three characteristics are vital to success for firms right now and during any tumultuous period: empathy, adaptability and wise leadership.

Here is an in-depth look at those qualities and how they can help law firms successfully reach the other side of a crisis.

Empathy

In order to be truly successful during a crisis like the coronavirus pandemic, law firms must demonstrate compassion and empathy toward lawyers, staff and clients, according to Silvia Coulter, co-founding principal of consultancy LawVision.

Many attorneys and staff are grappling with isolation, working parents have to now be teachers and caretakers of children and other family members, and families will miss summer vacation, graduations, births, deaths and other important life occasions, she said.

"Leaders who are empathetic to these unusual and stressful circumstances and who show their support will be remembered for that," Coulter said. "Clients expect firms to uphold their values and their support to their firm members and need to know their outside counsel are taking care of their people."

Law firms and firm leaders must also cultivate cultures that are constructive, actively promote diversity and drive a spirit of teamwork, said Marcie Borgal Shunk, president and founder of The Tilt Institute.

"Especially in the post-COVID-19 world, clients and professionals will expect to bring their whole self to work, or to their home office, and to engage with others on an authentic, personal level with respect," Shunk said. "Cultures that can cultivate self-actualization and collaboration and actively promote diversity will thrive."

Firms and their lawyers must also show empathy for their clients in order to succeed during these times, according to Peter Johnson, founder of Law Practice Consultants LLC.

He said that based on interviews with general counsel and chief operating officers during the pandemic, he has determined that it's important for lawyers to demonstrate empathy, caring and humanity in communications with their clients.

"Calling instead of email is appreciated and provides the opportunity for a discussion as opposed to a series of soliloquies by email. This is a time for listening, not selling — listening to understand more than to respond," Johnson said.

Adaptability

There have been massive changes to how legal work is performed and how lawyers do their jobs during the coronavirus pandemic, and the need for adaptability will not stop after many employees return to the office, said Frank D'Amore, founder of Attorney Career Catalysts.

"There are a lot of changes underway — such as lawyers working much more from home — and others that are surely coming due to the environment we're in," D'Amore said. "The firms that are more adaptive to what's happened and what is coming will reap the benefits."

That need for adaptability goes beyond law firm operations and policy to how firms can be flexible with clients and employees, according to Shunk.

Sectors are faring dramatically differently as a result of COVID-19 and, similarly, some attorneys are thriving in their at-home work environment while others are struggling, she said.

"Flexibility extends to knowing an organization or person's unique situation and tailoring the response," she said. "Firms able to acknowledge and adapt to various scenarios will be better equipped to weather the storm."

Another element of adaptability, according to Shunk, is looking beyond the short-term, even during a time of uncertainty and crisis.

The short-term nature of law firms' cash accounting and the partnership structure, combined with a tendency to respond to a crisis rather than think ahead will continue to stymie efforts to make long-term plans at many firms, Shunk said.

"Having a long-term mindset includes devoting time to contemplating future scenarios, establishing a vision and investing the needed resources — whether in technology, new talent models, or innovative service delivery — to build for the new legal services environment," she said. "Equally important at the moment is ensuring short-term decisions are made with an eye to lasting sustainability."

Wise Leadership

According to D'Amore, laissez-faire leadership is not usually effective in times of crisis. Instead, law firm leaders must take charge and demonstrate strength, he said.

"Lawyers, like any professional, want to be led in difficult times and will respond to leaders who can see a step or two ahead, are decisive, and can inspire confidence," he said.

One way to inspire confidence is through communication, according to LawVision's Coulter. Communicative leadership during a crisis such as a pandemic is absolutely essential in order to make it to the other side, she said.

People want to know firm leaders are mindful of the current situation, and while they don't have all the answers, they are on top of managing the firm through a difficult time, Coulter said.

"Leaders don't have all the answers but frequent and ongoing communication about the state of the firm — 'We are here to help you, we know times are tough, here's where we are at as a firm' — will be comforting and helpful to all firm members," she said.

Firm leaders often also have to make difficult decisions regarding finances during crises, which requires strength and foresight, she added.

"Now is the time to review all the expenses and be prepared to make decisions that will disappoint some, but will drive the firm to a more focused, disciplined approach to reaching its goals," she said.

--Editing by Kelly Duncan.

For a reprint of this article, please contact reprints@law360.com.

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