3 Important Steps to Change a Law Firm’s Organizational Culture by James McCarthy
THE SOCIAL CONTRACT Many law firms have developed over time what is called a “Social Contract.” In this contract, the organization “agrees” to provide such things as structure, meaningful work, policies and procedures, associate career tracks and training, compensation, and experienced partner-level oversight. In return, staff provides time, effort, knowledge, skills, abilities, motivation, experience, etc. Together, these things harmonize to make a firm productive, and to run more or less smoothly. This Social Contract also helps form the basis for the Culture of an organization. As you will see shortly, culture consists of, or is reflected in part by the rules and regulations; agreements on how decisions are made; structures; symbols—such as mottos, dress codes, and space allocations—and perhaps most importantly, the underlying values and assumptions that guide everyday work and behavior. Culture is an excellent “lens” through which to look at what is happening in any firm. It touches all levels and all areas of the business. When a major change occurs, such as reorganization, a merger, or the introduction of a new strategic focus for the firm, that whole cultural foundation that has been built upon the unspoken agreements of the social contract can be shaken, severely damaged, or even destroyed. 6
Attorney Journals San Diego | Volume 202, 2020
In that scenario regular staff and perhaps even some Partners who knew more or less what their future would most likely be, now may not. They are not sure if their skills or background will be a match for the new requirements. They don’t necessarily know how to behave anymore. They may not even know how to do the work anymore, as such processes as billing arrangements and targets may change, schedules and assignments become unclear, seem to be arbitrary, or have simply disappeared. They do not have a clear sense of what is valued any longer. All this uncertainty helps them become frustrated and scared, and when people are scared, very dysfunctional things can happen. Because employees are worried and unsure, resistance to the changes can occur. It may manifest as conflict between workers; conflict with management; an increase in sick time usage or accidents; work slowdowns may happen; quality and productivity may suffer, there will be unclear messaging; potentially vague lines of authority, and more. Management is not exempt in any way from this process. Potentially, non-equity Partners, and perhaps some Full Partners may no longer be sure of how to do their jobs effectively; how to communicate; how to evaluate people; how to motivate; instruct, and develop subordinates—it may even be unclear how to strategize and set goals since a clear Strategic Future Picture may no longer exist.
