PRESS RELEASE<\/p>\n
David Shapiro of Sanford Rose Associates – Legal Search featured in Legal Management Magazine Article: The Current State of the C-Suite: Part Two:\u00a0<\/strong>How Firms Can Find (and Retain) the Right Executive<\/strong><\/p>\n Dallas, TX | 3\/21\/2014: (www.legalmanagement.org) —\u00a0In 2010, 250-attorney firm Brownstein Hyatt Farber Schreck LLP appointed a Chief Executive Officer Blane Prescott to oversee its strategy and operations. Prescott had more than 25 years of law firm management experience, working as a consultant, firm senior vice president and managing director, and law firm executive committee member \u2014 but he didn’t have a law degree.<\/p>\n In February 2012, Pepper Hamilton LLP appointed Scott Green, who has an MBA from Harvard and a bachelor\u2019s degree in accounting from the University of Idaho, as its first Chief Executive Officer. Green also isn\u2019t an attorney; he was serving as executive director of 1,000-attorney firm Wilmer Hale when Pepper Hamilton approached him about the position.<\/p>\n \u201c[Pepper Hamilton] had made the determination that having a non-lawyer executive was a good business move,\u201d Green says. \u201cThey wanted to be structured more like their clients, with more of a corporate model.\u201d<\/p>\n With the number of firms with a gross revenue of $1 billion or more rising from 17 to 20 from 2011 to 2012, it\u2019s not surprising that large firms would consider appointing a leader with significant finance and operational experience \u2014 even if meant uprooting the traditional partner-run law firm business model.<\/p>\n However, BigLaw isn\u2019t the only industry sector adopting a new management structure. Now this trend is becoming more common all across the board.<\/p>\n \u201cComing out of the downturn, law firms in particular were looking at ways to modify and streamline their business solutions,\u201d says Charles Volkert, Executive Director of legal staffing agency Robert Half Legal. \u201cWe\u2019re now seeing chief information officers, chief operation officers and chief executive officers of law firms of all sizes \u2014 big, small and mid-sized firms.\u201d<\/p>\n Gibbons P.C., a 230-attorney firm with offices in New Jersey, New York, Philadelphia and Delaware, was ahead of the curve. The firm created several new C-level positions 12 years ago; June Inderwies, who started at the firm 28 years ago as a temp, was named its Chief Operating Officer and Executive Director.<\/p>\n \u201cThe firm was growing,\u201d Inderwies says. \u201cIt wanted to have the professionals in those industries handle the business side, and have the lawyers do the lawyering.\u201d<\/p>\n It\u2019s a fairly simple concept, but one that can be difficult to execute. Once a firm recognizes that it needs a business professional on board, how can it attract and hire the right executive \u2014 and cultivate potential internal C-suite talent? What qualities should a firm seek in the C-level hire to ensure that person can fill the role successfully?<\/p>\n FINDING THE RIGHT C-LEVEL HIRE<\/strong><\/p>\n <\/strong>A firm\u2019s list of desired attorney attributes won\u2019t necessarily apply when it comes to the requirements for a C-level business hire. Executives need several skills to succeed in a law firm environment, such as:<\/p>\n Real-world experience<\/strong><\/p>\n <\/b>Education isn\u2019t everything. According to a recent report from executive search firm Crist\/Kolder Associates, just 40 percent of chief executive officers have graduate business degrees. Aaron Boyd, Editorial Director of C-Suite Insight magazine and Director of Governance Research for Equilar, which compiles analysis on public company management roles, says a study conducted by CSuite Insight several years ago found that roughly 50 percent of chief executive officers didn’t have an MBA. \u201cExecutive recruiters and coaches and companies are looking for individuals who have strong leadership skills and are able to lead a company in a way that will be effective not just in the current era, but going into the future,\u201d Boyd says.<\/p>\n Financial knowledge<\/strong><\/p>\n <\/b>According to Crist\/Kolder\u2019s 2013 Volatility Report, the number of chief executive officers with a finance background hired by Fortune 500 and S&P 500 companies increased substantially in 2013. The legal industry isn\u2019t immune to that trend.<\/p>\n \u201cOne of the main roles of the executive director or chief financial officer or chief operating officer of a law firm is the bottom line,\u201d says Simone Green, Legal Staffing Director at CLS Legal Staffing, which places management and support staff at law firms and Fortune 500 companies. \u201cWho [could be] better than someone who has worked in the financial services industry and is all about making a profit?\u201d<\/p>\n The ability to work within law firm structure<\/strong><\/p>\n <\/b>Executives need to respect the way attorneys think and work, and work that way themselves. \u201cLawyers like to think about an issue and come to a decision,\u201d says Ronda Muir, Founder\/Principal of Law People Management LLC, a consulting firm that implements behavioral science principles in the legal workplace. \u201cThe person who walks the halls and tries to brainstorm will not be welcome.\u201d<\/p>\n Providing clear reasons \u2014 and desired outcomes \u2014 for new policies or operational changes will help C-level executives obtain support for proposed plans. \u201cLaw firms are steeped in tradition; you can\u2019t try to make wholesale changes overnight,\u201d Volkert says.<\/p>\n \u201cBut at the end of the day, the firm is looking for someone who can help it grow, and from a law firm\u2019s standpoint that means everyone makes more money if [the idea] works.\u201d<\/p>\n An extroverted nature<\/strong><\/p>\n <\/b>\u201cLaw firms are a very different world,\u201d says David Shapiro, President\/Managing Partner and Owner of legal search firm Sanford Rose Associates. \u201cYou really have to be a consensus building machine and have a lot of emotional capital.\u201d<\/p>\n Historically, managing partners led law firms; but successful attorneys don’t necessarily have a business background. Adding a business expert to its team can help a firm\u2019s productivity and profits rise. Yet, in addition to making sound business decisions, they also need to know how to lead. \u201cThey have to bring someone with finance or management experience to be able to fine tune the firm like a lean business,\u201d Shapiro says. \u201cIt\u2019s almost like bringing a quarterback on board.\u201d<\/p>\n ENTICING EXECUTIVES<\/strong><\/p>\n <\/b>Finding qualified C-level candidates is only half the battle. Convincing them to accept a position in a completely different industry may require a strong sales pitch. Retaining qualified C-level employees can be just as tricky. But it\u2019s important: The total cost of replacing staff members may be as high as 90 to 200 percent of an employee\u2019s annual salary, according to a 2008 Society of Human Resource Management study. Higher salaries \u2014 such as the ones C-suite executives command \u2014 can result in a greater potential loss.<\/p>\n Firms may be able to attract and retain business executives by highlighting C-level law firm job benefits, including:<\/p>\n A new undertaking<\/strong><\/p>\n <\/strong>\u201cMost are seasoned professionals and have been in different industries for several decades,\u201d CLS\u2019 Green says. \u201c[This can be] an opportunity to do something different and have a big new challenge.\u201d One of Shapiro\u2019s clients, a Boston-based, 70-attorney law firm, recently hired a chief executive officer who had previously worked in a position similar to a chief operating officer for an Am Law 100 firm. The executive was happy to make the move to a smaller firm because it meant dealing with less personalities and more responsibility. \u201c[His feeling was], \u2018A small firm wants to bring me in and give me the reigns; that\u2019s a great opportunity for me,\u2019\u201d Shapiro says.<\/p>\n A better work\/life balance<\/strong><\/p>\n <\/strong>Firms may want to stress that they can offer corporate executives a different experience. Shapiro says, \u201cThe general vibe is typically not as stuffy as a large corporation,\u201d adding, \u201cYou may not be answering to as many people; it can be a more relaxed lifestyle than in the corporate world.\u201d<\/p>\n Law firms can also often be more flexible about where an executive is based. Volkert says the executive doesn\u2019t necessarily have to be based at the headquarters office. \u201cHe can work in one of the firm\u2019s other locations, which may be appealing from the lack of relocation standpoint,\u201d he says.<\/p>\n Equal Executive Pay<\/strong><\/p>\n <\/strong>Like many high-level attorney candidates, C-level executives want a sizable salary. Firms may actually have more flexibility when determining non-attorney compensation.<\/p>\n \u201cThe firm can pay that person whatever it wants to,\u201d Shapiro says. \u201cThere\u2019s not going to be any issue from an attorney who says he brought in $1 million in business and questions why the firm is paying a lateral hire $700,000 walking in the door.\u201d<\/p>\n However, money alone may not be enough to retain key C-level talent. Corporate executives often sacrifice lucrative extras when transitioning to the legal world, including:<\/p>\n Stock and other items<\/strong>: Because many corporations have started paying executives in equity over the years, C-suite professionals now consider more than just take-home pay when looking for a new job, according to Boyd. \u201cAn executive will consider how many rewards the person has that haven\u2019t vested yet,\u201d Boyd says. \u201cThere can be quite a bit of value to that, beyond just what the typical executive salary is.\u201d<\/p>\n Corporate perks:<\/strong> Many organizations have reduced perks in recent years due to shareholder input and increased spending scrutiny, according to Boyd. However, if your C-level candidate will be giving up access to a corporate jet or paid club dues, consider sweetening the deal with a bonus. Some firms are able to offer incentive-style bonuses that may, in fact, outpace the corporate world, according to Volkert. And, Shapiro says, \u201cThe partnership could say, \u2018Depending on how well you do your job, we\u2019ll award you certain points against firm profits.\u2019\u201d<\/p>\n Establishing specific goals to evaluate C-level performance can help firms gauge just how much extra money their executives are worth. Muir says, \u201cOne thing I push with firms is that they measure and compensate for the amount of collaboration and mentoring that happens so they have some way to get feedback on the benefits other partners or officers have with the [C-suite executive].\u201d<\/p>\n CREATING A C-SUITE FROM WITHIN<\/strong><\/p>\n <\/strong>Crist\/Kolder\u2019s annual executive survey found that just 28 percent of all new U.S. CEOs were recruited from outside their companies in 2013. Law firms that vastly reduced staff during The Great Recession may have a hard time immediately identifying future C-level talent \u2014 but they can benefit from investing on who\u2019s left, according to Muir. \u201cThey\u2019ve worked to maintain the bottom line, but to grow and compete, they know they\u2019ll have to start looking at internally developing their own people,\u201d she says.<\/p>\n To help young attorneys or staff members who show managerial promise prepare for a future C-level role, law firms can fund financial and management education \u2014 or offer their own courses. For example, in 2011, Gibbons established the Gibbons Leadership Academy. The program, which Inderwies says, \u201cwas developed to develop internal talent,\u201d features courses based on executive coaching, building a practice and other management skills attorneys will need to eventually run a department or an entire firm. Gibbons has used it to train 80 percent of the firm\u2019s attorneys.<\/p>\n Key clients can also provide learning opportunities by mentoring younger attorneys. Volkert says, \u201c[Firms can] get lawyers more accustomed to what\u2019s happening with their corporate clients, and take that association and partnership to have them work on site with the corporate partners.\u201d<\/p>\n An external corporate chief executive officer brings a lot to a law firm\u2019s table: management practices from other industries; experience working with a different business model; and a fresh look at firm operations.<\/p>\n Some law firms, however, may find that priming an employee to someday govern the firm offers them a unique advantage.<\/p>\n \u201cEven small firms and boutique firms are seeing the benefit of having someone run their firm from amore non-trade track, so to speak,\u201d Green says. \u201c[But] firms would love to groom someone from within who truly understands the culture and could take over a leadership role.\u201d<\/p>\n ABOUT THE AUTHOR<\/p>\n Erin Brereton specializes in writing articles and white papers about the legal industry, business management, finance and other topics.<\/p>\n Source: http:\/\/www.legalmanagement.org\/features\/current-state-c-suite-part-two<\/p>\n","protected":false},"excerpt":{"rendered":" PRESS RELEASE David Shapiro of Sanford Rose Associates – Legal Search featured in Legal Management Magazine Article: The Current State of the C-Suite: Part Two:\u00a0How Firms Can Find (and Retain) the Right Executive Dallas, TX | 3\/21\/2014: By Erin Brereton (www.legalmanagement.org) —\u00a0In 2010, 250-attorney firm Brownstein Hyatt Farber Schreck LLP appointed a Chief Executive Officer Blane Prescott to oversee its strategy and operations. Prescott had more than 25 years of law firm management experience, working as a consultant, firm senior vice president and managing director, and law firm executive committee member \u2014 but he didn’t have a law degree. In February 2012, Pepper Hamilton LLP appointed Scott Green, who has an MBA from Harvard and a bachelor\u2019s degree in accounting from the University of Idaho, as its first Chief Executive Officer. Green also isn\u2019t an attorney; he was serving as executive director of 1,000-attorney firm Wilmer Hale when Pepper Hamilton approached him about the position. \u201c[Pepper Hamilton] had made the determination that having a non-lawyer executive was a good business move,\u201d Green says. \u201cThey wanted to be structured more like their clients, with more of a corporate model.\u201d With the number of firms with a gross revenue of $1 billion or more rising from 17 to 20 from 2011 to 2012, it\u2019s not surprising that large firms would consider appointing a leader with significant finance and operational experience \u2014 even if meant uprooting the traditional partner-run law firm business model. However, BigLaw isn\u2019t the only industry sector adopting a new management structure. Now this trend is becoming more common all across the board. \u201cComing out of the downturn, law firms in particular were looking at ways to modify and streamline their business solutions,\u201d says Charles Volkert, Executive Director of legal staffing agency Robert Half Legal. \u201cWe\u2019re now seeing chief information officers, chief operation officers and chief executive officers of law firms of all sizes \u2014 big, small and mid-sized firms.\u201d Gibbons P.C., a 230-attorney firm with offices in New Jersey, New York, Philadelphia and Delaware, was ahead of the curve. The firm created several new C-level positions 12 years ago; June Inderwies, who started at the firm 28 years ago as a temp, was named its Chief Operating Officer and Executive Director. \u201cThe firm was growing,\u201d Inderwies says. \u201cIt wanted to have the professionals in those industries handle the business side, and have the lawyers do the lawyering.\u201d It\u2019s a fairly simple concept, but one that can be difficult to execute. Once a firm recognizes that it needs a business professional on board, how can it attract and hire the right executive \u2014 and cultivate potential internal C-suite talent? What qualities should a firm seek in the C-level hire to ensure that person can fill the role successfully? FINDING THE RIGHT C-LEVEL HIRE A firm\u2019s list of desired attorney attributes won\u2019t necessarily apply when it comes to the requirements for a C-level business hire. Executives need several skills to succeed in a law firm environment, such as: Real-world experience Education isn\u2019t everything. According to a recent report from executive search firm Crist\/Kolder Associates, just 40 percent of chief executive officers have graduate business degrees. Aaron Boyd, Editorial Director of C-Suite Insight magazine and Director of Governance Research for Equilar, which compiles analysis on public company management roles, says a study conducted by CSuite Insight several years ago found that roughly 50 percent of chief executive officers didn’t have an MBA. \u201cExecutive recruiters and coaches and companies are looking for individuals who have strong leadership skills and are able to lead a company in a way that will be effective not just in the current era, but going into the future,\u201d Boyd says. Financial knowledge According to Crist\/Kolder\u2019s 2013 Volatility Report, the number of chief executive officers with a finance background hired by Fortune 500 and S&P 500 companies increased substantially in 2013. The legal industry isn\u2019t immune to that trend. \u201cOne of the main roles of the executive director or chief financial officer or chief operating officer of a law firm is the bottom line,\u201d says Simone Green, Legal Staffing Director at CLS Legal Staffing, which places management and support staff at law firms and Fortune 500 companies. \u201cWho [could be] better than someone who has worked in the financial services industry and is all about making a profit?\u201d The ability to work within law firm structure Executives need to respect the way attorneys think and work, and work that way themselves. \u201cLawyers like to think about an issue and come to a decision,\u201d says Ronda Muir, Founder\/Principal of Law People Management LLC, a consulting firm that implements behavioral science principles in the legal workplace. \u201cThe person who walks the halls and tries to brainstorm will not be welcome.\u201d Providing clear reasons \u2014 and desired outcomes \u2014 for new policies or operational changes will help C-level executives obtain support for proposed plans. \u201cLaw firms are steeped in tradition; you can\u2019t try to make wholesale changes overnight,\u201d Volkert says. \u201cBut at the end of the day, the firm is looking for someone who can help it grow, and from a law firm\u2019s standpoint that means everyone makes more money if [the idea] works.\u201d An extroverted nature \u201cLaw firms are a very different world,\u201d says David Shapiro, President\/Managing Partner and Owner of legal search firm Sanford Rose Associates. \u201cYou really have to be a consensus building machine and have a lot of emotional capital.\u201d Historically, managing partners led law firms; but successful attorneys don’t necessarily have a business background. Adding a business expert to its team can help a firm\u2019s productivity and profits rise. Yet, in addition to making sound business decisions, they also need to know how to lead. \u201cThey have to bring someone with finance or management experience to be able to fine tune the firm like a lean business,\u201d Shapiro says. \u201cIt\u2019s almost like bringing a quarterback on board.\u201d ENTICING EXECUTIVES Finding qualified C-level candidates is only half the battle. Convincing them to accept a position in a completely […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[200,201,89,202,158],"class_list":["post-1094","post","type-post","status-publish","format-standard","hentry","category-sra-news","tag-david-shapiro","tag-david-shapiro-in-the-news","tag-sanford-rose-associates","tag-sanford-rose-associates-legal-search","tag-sra-in-the-news"],"yoast_head":"\n
\nBy Erin Brereton<\/p>\n