New Survey Examines Law Firm Leadership Roles, Priorities, Compensation

(Newtown Square, PA, March 20, 2007) –   The Altman Weil 2007 Senior Leadership Survey for Law Firms has just been released.  The Survey reports on law firm leadership roles, priorities and compensation for lawyer and non-lawyer management positions.

Management Roles
In firms nationwide, 93% of lawyer-managers (including Managing Partners, law firm Chairs and Presidents) report that they maintain client contact and responsibility in addition to fulfilling management roles.  Their time is allocated as follows:  35% on firm management, 10% on business development and 45% on the practice of law.  The amount of time spent on management varies in direct proportion to firm size, with those in the largest firms (130 or more lawyers) spending 70% of their time on firm management, 15% on business development and 10% practicing law.

“We think it’s important for law firm Managing Partners to nurture and build relationships with clients,” says Altman Weil principal Tom Clay.  “It’s not a good idea for a firm to have a leader who is divorced from client contact.  And maintaining those client relationships will make for a softer landing when he or she transitions back to full-time practice after the leadership tenure ends.”

Strategic Guidance
Fifty-five percent of leaders report having the guidance of a business or strategic plan to focus their leadership and management efforts.   Again, the likelihood of having a strategic plan increases proportionately with firm size -- up to 93% for firms with 130 lawyers or more.

“Having a clearly defined, strategic plan is the single greatest tool for a law firm leader who wants to be effective,” Tom Clay comments. 
 
Top Priorities
When asked about key areas of responsibility, all participating lawyer-managers ranked firm profitability first overall, followed by firm organization and strategic planning.  Managing Partners in firms with 130 or more attorneys had different priorities, naming mergers and acquisitions as top priority, followed by geographic expansion, and firm profitability.

All non-lawyer managers (Executive Directors, Administrators, and Chief Operating Officers) ranked their key responsibilities as: personnel management first, followed by facilities/equipment management and office technology.   Those priorities were identical in firms with 130+ attorneys.
  
Compensation
The Survey reports the median total compensation package for Managing Partners in 2006 was $500,000.  The median for Managing Partners at firms with 130 or more lawyers was $725,000. 

Non-lawyer managers received total compensation worth a median $155,000 annually, while those in the 130+ attorney category received $450,000.  In firms with 25 or more lawyers, top administrator compensation fell between that of the lowest paid partner and the average partner, while in smaller firms the administrator earned less than the lowest paid partner.

Job Satisfaction
When asked about their major sources of satisfaction, top lawyers most often said having a role in the success of the firm gave them satisfaction.  Administrative managers valued the authority and autonomy of their roles most highly.

On the flip side, Managing Partners complained most often of two things:  a lack of cooperation from their partners and time constraints imposed by the job.  Administrators also named lack of lawyer cooperation as their chief source of dissatisfaction.

About the Survey
The Altman Weil 2007 Senior Leadership Survey for Law Firms (formerly the Managing Partner and Executive Director Survey) is based on data collected from 267 law firms from November 2006 through January 2007. The Survey is available from Altman Weil Publications at www.altmanweil.com/SLS.

Altman Weil Publications conducts and publishes numerous surveys on the legal profession, including: the Survey of Law Firm Economics, the Compensation Systems in Private Law Firms Survey, the Paralegal Compensation Survey, and the Retirement and Withdrawal Survey for Private Law Firms. For additional information visit www.altmanweilpubs.com.

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Contact Information

Thomas S. Clay
Altman Weil, Inc.
(610) 886-2015
tsclay@altmanweil.com