Law firm billing systems are moving away from the traditional practice of having a partner as the head of a legal team. Instead, CEOs are being recruited to lead teams and handle the day-to-day operations. Legal billing consulting services have been moving toward this shift for some time now, and some firms seem to be more successful than others at getting their CEOs on board with the idea. But why are law firms turning to CEOs? And why are they so successful at it? Hiring a CEO is often seen as a way to get more value out of an existing team. The CEO will often bring experience in business integration and migration for law firms that can be useful in terms of marketing strategy, human resources, support staff, planning, and day-to-day operations. They will be able to manage their time effectively and help solve all the problems by bringing in new ideas and solutions to the challenges. The move has been driven by an increase in the number of law firms that have started up in recent years and the growth of venture capital funds, which have provided seed money for many new firms. The firm can move into a new market and adopt a model that is more in accordance with its customer by bringing in his or her abilities.
A poll of attorneys conducted by BoweryHR in 2012 revealed that the trend of law firms going to recruit a Chief Executive Officer (CEO) as the business head is likely to continue. Law firms hiring CEOs as business heads will be more willing to take risks and form partnerships with other companies to leverage their successes and create new ideas. The decision was made as a result of an increase in the number of law firms that have been established in recent years and the rise of venture capital funds, which have given many new businesses seed money to get off the ground. This is a swing from the traditional model and is gaining momentum. The rise in the importance of CEOs reflects an increased focus on risk management by law firms. Yes, they need to understand what their key risks are and what actions they will take if those risks materialize which requires more sophisticated planning, analysis, and decision-making than was required before. In addition, CEOs need to have strong financial skills so that they can manage their law firms effectively as well as provide legal services. This move will result in many positive benefits as it helps them focus on what matters most and reduces stress levels, which makes them more productive and efficient at work. They can focus on their work rather than managing other people’s time or workloads.
Law firm management is shifting to an agile model, with professional services firms becoming more successful as they embrace the complete end-to-end customer experience. And so, the role of the lawyer is now evolving from being a staid employee to being a business-oriented individual.