Fully Human Lawyer™: Leading a Law Firm in Polarized Times

Political division creates thorny issues for law firm leadership, says Lauren Krasnow, a coach to senior leaders at large law firms. Krasnow suggests that firms should articulate organizational values, support partners and employees, and clarify how to approach issues such as the recent US Supreme Court decision overturning Roe v. Wade.

It’s a tough time to lead a law firm. On top of recession concerns, firm leaders in our increasingly polarized society must consider whether to take a position on controversial issues, or sidestep divisiveness.

Firms should carefully explore how to respond to future legislation or court decisions that may produce myriad reactions from clients, partners, employees, and recruits.

When Texas legislators threatened Sidley Austin for providing abortion-related travel benefits, big firms generally responded with support for Sidley and a firm’s independence to make decisions.

This was a clear stand, not on the divisive question of abortion, but on firms’ autonomy and the rights to travel, contract, set employment terms and conditions, engage in interstate commerce, and so forth.

The Dobbs decision is just the beginning: Florida has already banned employers including law firms from requiring core principles of diversity training and is now attacking environmental, social and governance (ESG) programs, a profitable and growing practice area for many large firms.

While Florida’s current focus is precluding ESG considerations it’s conceivable that Florida’s policymakers could force law firms to choose between representing their clients on ESG, or appeasing the state that controls lawyers’ ability to practice.

With this in mind, it’s important to plan for how your firm will respond when forced to make choices that may alienate some stakeholders.

All leadership questions come down to values. These can be especially fraught for law firms.

• With lawyers’ professional ethics rules—i.e., no non-competes—rainmakers can easily leave, threatening collapse if enough partners decide their values clash with the firm’s.
• Partners can be vicariously and jointly/severally liable—such as when the Texas legislators threatened Sidley’s partners with felony charges and fines, plus disbarment.
• Lawyers’ training and bar privileges position us to fight for justice, but individual lawyers accord different weight to this privilege/obligation.

Here’s what law firm leaders can do.

Explain Firm’s Values, How They Shaped Your Firm’s Position

If your firm has positioned itself on an issue, such as Dobbs, you have probably done this. If your aim, however, is to sidestep a hot-button topic, it matters how you do it.

Taking a stance on core values and how we’re applying them is different from taking a stand on an issue such as guns, voting rights, same-sex marriage, prayer circles.

It’s a mistake for leaders to tolerate or propagate what I call “values fuzziness.” Not being clear on your organization’s core values—in words and actions—confuses and demoralizes people.

Here is a sample statement that aims for neutrality while articulating organizational values:

We as an organization decline to take a position regarding ______ [issue]. While we know some people may disapprove, we make that decision because after much discussion, we know our partners (owners) have a multitude of views.

We support people’s right to express their views if (a) clearly denoted as personal, and (b) respectful and in a professional tone.

As a firm that comprises members of the bar who are called to use our specialized training and privileges to improve our world (however we each define that), we offer billable credit of __ hours/year of pro bono work on any approved 501(c)(3) matter that is important to that person.

We appreciate this compromise may not work for everyone. While we hope it doesn’t happen, we acknowledge and accept the risk that some people may want an organization with a more monolithic approach.

Gather All Opinions Before Articulating Firm’s Values

You have likely gotten an earful from your partners, but assertiveness from some is different from candid input from all. Aim for the latter.

If you have politically underrepresented individuals in your firm, use your position to repeatedly create spaces of psychological safety. Depending on your firm’s size and demographics, this could be via individual conversations or an affinity group meeting where the underrepresented people are the overwhelming majority. Then welcome their feedback as the gift it is of honest data. Receiving it graciously is a leadership best practice.

Firm leaders often ask me, “Isn’t it worse to ask for opinions and disregard them, versus saying nothing?” Yes, if you act like you never heard them. No, if you listen carefully and consider them and then explain respectfully how you reached whatever conclusion you did.

People want to feel heard even if they disagree. They want authenticity and transparency from their leaders.

Explain Firm’s Values in Practice

Offer individuals some productive pathways forward. For example, you can encourage and/or allocate firm resources to pro bono, with a carefully crafted policy that preempts conflicts.

Give clear guidance on external communications. If your firm is tempted to prohibit public commentary, consider the costs, not just benefits. One potential cost is being labeled as the firm that muzzles individuals.

Some leaders may balk at this advice, especially those used to an ethos of checking personal issues at the door.

But extensive research and my experience both suggest that when individuals perceive themselves as having to surrender too much of their “real” self at work, the result is often burnout, disengagement, or resignation.

No matter how you define your firm’s values, you may still lose stakeholders. These are divisive times. But clarifying your firm’s values now will make the next political earthquake easier to navigate.

While your organization cannot be all things to all people, it can be the bold firm that offers individuals a clear path forward.

This article does not necessarily reflect the opinion of The Bureau of National Affairs, Inc., the publisher of Bloomberg Law and Bloomberg Tax, or its owners.

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Lauren Krasnow is a leadership coach to senior leaders and rainmakers. She practiced law with Chambers-ranked groups for many years. She serves on her chapter’s board of directors of the International Coaching Foundation.