Preparing for Partnership

Preparing for Partnership is an invaluable resource for lawyers seeking to achieve the ultimate career milestone of partnership, and for team leaders and management as they help aspiring partners to prepare.

Becoming a partner in a law firm is a significant milestone in a lawyer's career, and requires a combination of strong legal skills, business acumen, leadership abilities and a commitment to the firm's success. Preparing for Partnership reviews the essential steps that lawyers need to take to make partnership a reality.This book outlines the critical factors for success, from building a strong track record to developing a loyal client base, demonstrating leadership skills and meeting the firm's criteria. Contributors to the book discuss how to network and build relationships within the firm, review the financial aspects of partnership, and how to seek feedback and mentorship from other partners.Preparing for Partnership is an invaluable resource for lawyers seeking to achieve the ultimate career milestone of partnership, and for team leaders and management as they help aspiring partners to prepare. This book will help lawyers navigate the complex path to partnership and realize their full potential in the legal profession.

Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ixAbout the authors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xvChapter 1: What does “partner” even mean? . . . . . . . . . . . . . . . . . . . . . . . . 1By Michael Roster, former managing partner, Morrison & Foerster’s Los Angeles officeSome economic factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Doing excellent legal work matters – a lot . . . . . . . . . . . . . . . . . . . . . . 4Time to partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Your clients are both outside and inside the firm . . . . . . . . . . . . . . . . 7Some personal factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7In conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Chapter 2: So you want to make partner?Evaluating your firm’s partnership prospects . . . . . . . . . . . . . . . . . . . . . . . . 9By David Parnell, founder of True North Partner PlacementIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Assumptions / disclaimers / expectations / axioms . . . . . . . . . . . . . . 11Evaluate your readiness first . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Evaluate your firm’s readiness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Your competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Associate investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30Chapter 3: Demonstrating readiness for partnership . . . . . . . . . . . . . . . . . 33By Jennifer Bluestein, chief talent and HR officer, Perkins CoieIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33Being a great lawyer – excellence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33Have a brand or specialty that sets you apart . . . . . . . . . . . . . . . . . . 34Self-sustaining network within the firm . . . . . . . . . . . . . . . . . . . . . . . . 35Understand the business and where you fit in . . . . . . . . . . . . . . . . . . 36Create a business plan that aligns with the firm’s strategy and platform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38Generating a book of business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39Developing a team, including a lieutenant . . . . . . . . . . . . . . . . . . . . . 40Firm citizenship – what does it mean and why demonstrate it? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41Chapter 4: Making the choice about partnership . . . . . . . . . . . . . . . . . . . . 43By Claire Rason, director, Client TalkWhy we must remember it’s a choice . . . . . . . . . . . . . . . . . . . . . . . . . . 43Gender imparity at partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45The impact of choice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46Is it about when we have to make a choice? . . . . . . . . . . . . . . . . . . . 47The confidence factor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48Common concerns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49The fear of business development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50Authentic leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51Juggling other commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52“It didn’t look like fun” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53Getting to gender parity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54Implications for diversity initiatives more broadly . . . . . . . . . . . . . . 54Chapter 5: The business and personal traits of a partner . . . . . . . . . . . . . 57By Pippa Blakemore, The PEP Partnership LLPStrategic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59Management and business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62Personal traits of a partner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66Chapter 6: Relationships are (the) key to a successful and fulfilled career . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71By Paul Williams, managing partner, Denver office, Shook Hardy & BaconWhere do relationships begin? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73The cultivation of relationships – mutual respect . . . . . . . . . . . . . . . 73The power and privilege of relationships . . . . . . . . . . . . . . . . . . . . . . . 75Tending to avoid mending relationships . . . . . . . . . . . . . . . . . . . . . . . 76It’s not too late to identify and build relationships . . . . . . . . . . . . . 78Chapter 7: The importance of relationships – the seven pillars of development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81By Pippa Blakemore, The PEP Partnership LLPUnderstanding the importance of strong relationships . . . . . . . . . 81Knowing with whom you should build and maintain durable relationships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82The mindset that lawyers need to progress from associate to partner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83Principles of nurturing relationships . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86Where to relationship-build to strengthen your future when you become a partner . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86Appropriate communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89How to turn these contacts into a loyal client base and a strong book of business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93Chapter 8: Business development for the aspiring partner . . . . . . . . . . . . 95By Tom Bird, bestselling business author, trainer and keynote speakerThe context of BD for an associate . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95What clients want over and above the work – the starting point for any BD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97Key priorities for associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98What is the “right” kind of relationship to build? . . . . . . . . . . . . . . . . 102The role of goal-setting in BD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105Chapter 9: Financial management 101 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109By Tony Young, partner, and Hung Tran, partner, BDO Business ServicesUnderstanding the drivers of the firm . . . . . . . . . . . . . . . . . . . . . . . . . . 110Impact of structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111Due diligence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112Firm-wide governance and discipline . . . . . . . . . . . . . . . . . . . . . . . . . . 114Correct management of working capital . . . . . . . . . . . . . . . . . . . . . . . 115Distribution management and policies . . . . . . . . . . . . . . . . . . . . . . . . 116Growth prospects and succession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117Preparation begets success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118Chapter 10: The practicalities and realities of financial management as a partner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121By Nicky Owen, partner, professional practices team, Crowe UK LLPIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121Legal background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121Reward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122Partnership capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123Statutory accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124Partnership accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124Management accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125Balance sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125Partners’ accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127Profit and loss account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128Management information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129Demystifying the finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130Chapter 11: Tax and accounting as a partner . . . . . . . . . . . . . . . . . . . . . . . 133By Nicky Owen, partner, professional practices team, Crowe UK LLPIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133How will you be taxed? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133A partner in a UK LLP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133Salaried member rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133Non-UK LLPs and other types of partnerships . . . . . . . . . . . . . . . . . . 135Tax rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135National Insurance Contributions (NIC) . . . . . . . . . . . . . . . . . . . . . . . 136How you will be assessed for income tax . . . . . . . . . . . . . . . . . . . . . . . 136What are the taxable profits? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139Tax administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140Tax payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141Late paid tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143Tax reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144International matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144Partnership capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145Pension contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146Chapter 12: Wellbeing and partnership in law firms – challenges and opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149By Jean-Baptiste Lebelle, head of HR, Allen & OveryIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149Wellbeing – a continuing challenge for partners in a complex and moving environment . . . . . . . . . . . . . . . . . . . . . . . . 149Resources and strategies for partner wellbeing . . . . . . . . . . . . . . . . . 152Wellbeing requires a holistic and multidimensional approach with concrete initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157About Globe Law and Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159