Good Governance in Law Firms

How can governance incorporate management information and concepts of risk management into the decision-making process? The fourth in this popular series on the business of law, published in association with the International Bar Association, the book concludes with an examination of emerging trends that will shape law firm governance in the future

Governance today is more than just writing a good partnership agreement. Our multidisciplinary team of contributors demonstrate how governance has become a unifying and integrating system for a wide range of critical strategic and business issues. The inquiry starts with an overview of modern governance structures in law firms, and how the concept of governance has expanded to include features such as professional managers and partner remuneration systems.To be effective, a law firm's governance system must facilitate, not complicate, the solution of important internal challenges, such as change management, managing partner performance and succession planning. How can good governance help law firm owners to make better decisions? How can governance incorporate management information and concepts of risk management into the decision-making process?The fourth in this popular series on the business of law, published in association with the International Bar Association, the book concludes with an examination of emerging trends that will shape law firm governance in the future. It provides visionary, but entirely realistic, insights into how law firm governance will need to continue to adapt to new regulatory regimes for the legal profession, stress testing concepts and new alternative business structures.

Introduction 5Norman K ClarkWalker Clark LLCPart I: Building an effective structureStrategy drives governance 9Leopoldo Hernández RomanoRupprecht Graf von PfeilRocío Vázquez ZavalaKermaPartnersThe evolution of modern governance in law firms 17Norman K ClarkWalker Clark LLCGovernance as an organising framework for managing the practice and the business 31Tony WilliamsJomati Consultants LLPGovernance and structure: supporting the long-term success of a partnership 41Michael RochKermaPartnersThe role of professional management in law firms 57Iryna NikitinaIndependent consultantPart II: Challenges for law firm governanceEffective decision making in law firms 79Sarah MartinCoombs MartinGood governance and partner performance 97Lisa M Walker JohnsonWalker Clark LLCRiding the compensation tiger 121Norman K ClarkWalker Clark LLCPartner compensation and partnership structure 131Martín CarrizosaprietocarrizosaManagement information – what does the managing partner need to know? 137Aku SorainenSORAINENGoverning risk 147Norman K ClarkWalker Clark LLCSuccession, retirement and beyond 157Lisa M Walker JohnsonWalker Clark LLCPart III: Governance tomorrowGovernance for lawyers 173 in a new era – ‘alternative’ law firmsStephen RevellFreshfields Bruckhaus DeringerManaging change 203Lisa M Walker JohnsonWalker Clark LLCAbout the authors 231