Every once in a while I read a blog post or article which is so spot-on I am compelled to share it. That’s the case with “A (Don’t Be) Dewey Dozen: Use This Checklist to Make Sure Your Firm Isn’t Dewey” which was written by Paul Lippe. It appeared in ABA Journal Law News Now. If you’re wondering why Lippe’s name is familiar, he’s the guy that worked hard to get Gary Hart elected President — twice. The insightful comments at the end of his post (over 25) add much food for thought on top of this excellent post. No matter what the size of your firm, this should be on your must read list. Following I highlight and comment on a couple of points I feel strongly about.
4. Do mergers and acquisitions advance the strategy? Whether it’s merging with another firm or bringing in a lateral partner, law firms are constantly engaged in some form of M&A. When I was running M&A for my old company, our one-question test was” “What do we say to our top 20 customers the morning after the deal is announced explaining how they are better off?”
If you look at some of my past posts and articles regarding mergers, you’ll see me ruminating about this same point. [See, for example, "Post Merger Economics".] It’s not simply about size or economies of scale when it comes to mergers; it’s about synergy. One plus one better equal more than two, or the merger has no external value, and probably even less internal value. Lippe really nails it with his one-question test. Simple and eloquent. He really says a lot in few words. I’m thinking about printing this and adding it to the very few items on the tack-it board above my monitors — reserved for especially cogent thoughts. I consider it my business haiku bulletin board. Earning a spot on there means a lot. I’m sure I will be sharing this one-question test with clients in the future.
6. Does management render unto Caesar? Lawyers use logic and reason to argue indeterminate facts, and they do it well. . . .but at minimum firms need to recognize that there are some inarguable facts. As my old boss Sen. Daniel P. Moynihan said: “Everyone is entitled to his own opinion, but not his own facts.”
The old adage, “figures lie, and liars figure” came immediately to mind when I read this. I continue to encounter attorneys who somehow manage to dismiss what I find to be self-evident facts which are as plain as, well, the nose on their face. It’s one thing to play devil’s advocate for love of the debate. It’s great at the dinner table with cherished guests, during a round of golf, or over drinks at ones favorite establishment. But it’s not so great when it’s a never-ending process at the firm. It wears the heck out of your partners and administrative management. It seriously impairs the firm’s ability to evolve and realign to a constantly changing marketplace. It creates dissension and dissolves the glue between partners which many firms work so hard to develop. In short, it’s detrimental to the health and vitality of the firm.
I’m not suggesting that you blindly accept numbers put in front of you. Far from it. But there has to be collaborative effort to allow and enable objective analysis, and let the chips fall where they may once that is done. Stop arguing endlessly just because you don’t like the numbers. Put that same energy into improving them through some innovative thinking, difficult discussions and decisions, and an action plan to implement change.