The legal industry has been roiled in recent weeks due to executive orders and other actions by the Trump administration. Multiple Big Law firms have entered into settlement agreements with the administration. Other firms are choosing to challenge the administration’s actions in court; some firms have offered support through amicus briefs. At the same time, many firms are remaining silent, trying to avoid the heat. There have been public resignations, recruiting boycotts, and public grief and anger from former colleagues. These are dangerous struggles to manage.
But informed leadership must consider this: the task is not simply how to manage the outward-facing issues, but how to handle the internal ones. How cohesive is your organization? How strong is your leadership? How do you lead your people credibly and effectively amidst the doubts of those you lead?
Law firm management is especially fraught when policies change dramatically and quickly and in ways that can seem existential for some of the targeted law firms. As one leader put it, “Last month, I was exploring how to reassess DEI programs. This week I am trying to ensure my firm survives.”
I have seen two poles of thought emerge. Jake, a managing partner at a boutique firm, when asked by his associate whether their hiring policies would change, said aloud, “No way! We are proud of the talent we have attracted, proud of our zealous representation of our clients and we will do our best to stay the course.” And across town, George, a managing partner, just sighed and said, “At least I don’t have to fill out those damned diversity forms anymore.”
But these are days when many firms will be forced to choose: whether to cooperate to keep their client list intact, or whether to oppose executive orders that may challenge the ethical obligations attorneys have to the law. Leaders in either camp face a dilemma: how to lead their employees through times of rapid change when norms are questioned and challenged.
Law tends to be conservative—our guiding principle is stare decisis: let the decision stand. So responding to rapidly shifting terrain fraught with legal peril is a challenge not many encounter regularly. It is not the intention of this column to advise on the specific course any firm should take. My purpose here is to ask this fundamental question: How can leadership best manage rapid change, with issues that may be existential threats to the continued viability of a law firm? How do leaders steer their firm through treacherous waters without losing the cohesion of their membership?
Here are a few arguments clients have voiced to me:
- We represent clients in federal law matters. What can we offer our clients if we are in disfavor with the government?
- We spent a fortune on our lateral hires in the last three years. Now they are threatening to bolt, taking our clients with them.
- If our ability to represent clients depends on the whim of the administration, what is the future of any legal practice, including our own?
- Why should I stay at a firm that only values money?
- How can lawyers contemplate being part of any infringement on the right to counsel?
- What happens if I lose my job in this climate?
- How bad are these settlements anyway? We still get to do what we do for our clients.
- We are strictly a transactional practice. We can’t let our clients down when they are so invested and depend on us.
- What are our obligations to the rule of law?
Some Principles That May Help
The goal of any firm—any organization, for that matter—is to get the best talent from the widest pool available. People are a law firm’s greatest asset, and like any asset, they must be preserved and cultivated. Firm leadership must ensure that every individual is empowered to deliver their highest and best performance. Regardless of policies and noise, this principle—getting the best talent from the widest pool—remains constant.
In such a fraught moment, the first guiding principle for any leader to approach their membership must be humility. Admit there is much you do not know and much you cannot predict. Any decision is fraught.
The next principle is curiosity: do not assume you know what your firm’s employees are thinking, or how much they know about the risk you are managing. Stipulate to facts and share them. Be sure your people understand exactly the stakes of your decision. Are the recently hired lateral partners about to leave? Are clients? Are you worrying about whether you will have to lay off associates and support staff? How do you interpret the conflict between zealous representation of your clients and your ethical obligations to preserve the rule of law?
Once you articulate those questions, remain curious to hear the responses of the people around you. They can offer unique vantage points that will undoubtedly broaden your own assumptions. You have likely gotten an earful from many, but assertiveness from some is different from candid input from all. Aim for the latter. Then welcome their feedback as the gift it is: honest data. Receiving it graciously is a best practice of leadership.
Articulating Firm Values
Which brings me to the next crucial question: what are your firm’s values? Please note: Values are not the same as morality. Morality is someone’s belief about what is right or wrong. Morality is therefore individual and cannot be legislated by a workplace—nor should it. These are serious questions and lawyers are right to struggle with them—there are no easy answers here.
Firm values are a somewhat different matter. They are the principles or standards that have brought this organization together, and keep it cohesive. They must be consciously articulated and lived out loud. Examples of firm values are:
- The firm’s value of security and freedom—to compensate our people and give them the opportunity to build economic security.
- The firm’s value of allegiance to our legal system.
- The value of law as an instrument to let us help others and to manage the social order.
- The value of the individual people whose work defines our firm.
- The value of our ability to zealously represent our clients.
- The value of a workplace where our individuals can perform at their best.
- The value of a firm with our history, and a legacy that will outlast its members.
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. Understanding the firm’s core values can help chart its path forward.
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 and with care, how you reached the conclusion you chose.
There is a lot to unpack here. It is rare that law firms face so much peril and from so many sides. These decisions will affect the firm’s standing, its clients, its associates, its business professionals, its partners, not to mention its future reputation. Gather the best minds you can to help people understand the reasoning behind your decision. The informed consensus of your organization is the best insurance that your firm can weather this storm. And that is a true test of leadership.
Lauren Krasnow, JC, PCC, is an executive coach, speaker and consultant to law firm leaders. She is a chapter leader of the International Coaching Federation (ICF). In 2023 and 2024, Lawdragon named her a Global 100 Leader in Legal Strategy & Consulting.
Reprinted with permission from The American Lawyer. © 2025 ALM Media Properties, LLC.
Further duplication or distribution without permission is prohibited. All rights reserved.
Reprinted with permission from The American Lawyer. © 2025 ALM Media Properties, LLC.
Further duplication or distribution without permission is prohibited. All rights reserved.