Law firms as managed businesses and lawyer accommodation of changing professionalis

316 Pages·2015·1.78 MB·English

The Management of Professional Partnerships:
Law firms as managed businesses and lawyer
accommodation of changing professionalism
Juliet Andrews
(BA, MA (Psych))
A thesis submitted in fulfilment of the requirements for the award of the degree of
Doctor of Philosophy
School of Management
Australian School of Business
University of New South Wales
October 2014
THE UNIVERSITY OF NEW SOUTH WALES
Thesis/Dissertation Sheet
Surname or Family name: ANDREWS
First name: JULIET Other name/s: SARA
Abbreviation for degree as given in the University calendar:
PhD
School: School of Management Faculty: Australian School of Business
Title: The Management of Professional Partnerships: Law firms as managed businesses and lawyer’s accommodation of
changing professionalism
Abstract
In addressing external and internal pressures, large legal Professional Service Firms (PSFs) in Australia are adopting a more
commercial and managerial orientation. Senior practitioners and legal institutions express concern over this increasing threat to
the traditions of the profession. Examining two large commercial law firms and one smaller, the research employs a comparative
case study approach to understand the extent of managerialism in the firms, outcomes for the profession and outcomes for its
members.
Drawing on archetype theory to frame the research, qualitative and quantitative methods were applied to determine the
correspondence of each case firm to a traditional professional archetype form, the Professional Partnership (P2) or the Managerial
Professional Business (MPB). Data from lawyers from the three case-study firms was collected and analysed to better understand
individual lawyer responses to increased managerialism.
The research found that while the larger firms correspond to many of the elements of the MPB, important differences emerged.
First, a retention of traditional professionalism remains evident in the firms, as partners and specialist managers attempt to
maintain a semblance of conventional values, structure and systems. Second, some elements of managerialism are more
extensive than those articulated in the MPB. Accordingly, a new archetype form is proposed, the Professionally Managed
Partnership (PMP). This more accurately describes the organisation and management of these firms, and possibly the broader
sector of large commercial firms. The smaller case firm in general displays more traditional values, beliefs, structures and systems,
yet is not entirely of the P2 type. The individual professional responses further revealed that lawyers in all case firms
accommodate facets of managerialism, and the norms and practices of this altered professional mode are accepted and
understood.
The thesis proposes that the intersection of managerial and traditional values and beliefs exist within a new conceptualisation of
professionalism, incorporating greater market dominance while retaining features of tradition. Market professionalism places the
client at the centre of the professional environment and incorporates managerial practices, within a traditional partnership
structure, to meet client demand. These managerial and market features may become commonplace in the legal sector, signalling
a permanent alteration in professionalism.
Declaration relating to disposition of project thesis/dissertation
I hereby grant to the University of New South Wales or its agents the right to archive and to make available my thesis or
dissertation in whole or in part in the University libraries in all forms of media, now or here after known, subject to the provisions of
the Copyright Act 1968. I retain all property rights, such as patent rights. I also retain the right to use in future works (such as
articles or books) all or part of this thesis or dissertation.
I also authorise University Microfilms to use the 350 word abstract of my thesis in Dissertation Abstracts International (this is
applicable to doctoral theses only).
…………………………………………………………… ……………………………………..……………… ……….……………
Signature Witness Date
The University recognises that there may be exceptional circumstances requiring restrictions on copying or conditions
on use. Requests for restriction for a period of up to 2 years must be made in writing. Requests for a longer period of
restriction may be considered in exceptional circumstances and require the approval of the Dean of Graduate Research.
FOR OFFICE USE ONLY Date of completion of requirements for Award:
COPYRIGHT STATEMENT
‘I hereby grant the University of New South Wales or its agents the right to archive and to
make available my thesis or dissertation in whole or part in the University libraries in all forms
of media, now or here after known, subject to the provisions of the Copyright Act 1968. I
retain all proprietary rights, such as patent rights. I also retain the right to use in future works
(such as articles or books) all or part of this thesis or dissertation.
I also authorise University Microfilms to use the 350 word abstract of my thesis in Dissertation
Abstract International (this is applicable to doctoral theses only).
I have either used no substantial portions of copyright material in my thesis or I have obtained
permission to use copyright material; where permission has not been granted I have
applied/will apply for a partial restriction of the digital copy of my thesis or dissertation.'
AUTHENTICITY STATEMENT
‘I certify that the Library deposit digital copy is a direct equivalent of the final officially
approved version of my thesis. No emendation of content has occurred and if there are any
minor variations in formatting, they are the result of the conversion to digital format.’
Page | i
ORIGINALITY STATEMENT
I hereby declare that this submission is my own work and to the best of my knowledge it
contains no materials previously published or written by another person, or substantial
proportions of material which have been accepted for the award of any other degree or
diploma at UNSW or any other educational institution, except where due acknowledgment is
made in the thesis. Any contribution made to the research by others, with whom I have
worked at UNSW or elsewhere, is explicitly acknowledged in the thesis. I also declare that the
intellectual content of this thesis is the product of my own work, except to the extent that
assistance from others in the project’s design and conception or in style, presentation and
linguistic expression is acknowledged.
Page | ii
Abstract
In addressing external and internal pressures, large legal Professional Service Firms (PSFs)
in Australia are adopting a more commercial and managerial orientation. Senior
practitioners and legal institutions express concern over this increasing threat to the
traditions of the profession. Examining two large commercial law firms and one smaller,
the research employs a comparative case study approach to understand the extent of
managerialism in the firms, outcomes for the profession and outcomes for its members.
Drawing on archetype theory to frame the research, qualitative and quantitative methods
were applied to determine the correspondence of each case firm to a traditional
professional archetype form, the Professional Partnership (P2) or the Managerial
Professional Business (MPB). Data from lawyers from the three case-study firms was
collected and analysed to better understand individual lawyer responses to increased
managerialism.
The research found that while the larger firms correspond to many of the elements of the
MPB, important differences emerged. First, a retention of traditional professionalism
remains evident in the firms, as partners and specialist managers attempt to maintain a
semblance of conventional values, structure and systems. Second, some elements of
managerialism are more extensive than those articulated in the MPB. Accordingly, a new
archetype form is proposed, the Professionally Managed Partnership (PMP). This more
accurately describes the organisation and management of these firms, and possibly the
broader sector of large commercial firms. The smaller case firm in general displays more
traditional values, beliefs, structures and systems, yet is not entirely of the P2 type. The
individual professional responses further revealed that lawyers in all case firms
accommodate facets of managerialism, and the norms and practices of this altered
professional mode are accepted and understood.
The thesis proposes that the intersection of managerial and traditional values and beliefs
exist within a new conceptualisation of professionalism, incorporating greater market
dominance while retaining features of tradition. Market professionalism places the client at
the centre of the professional environment and incorporates managerial practices, within a
traditional partnership structure, to meet client demand. These managerial and market
features may become commonplace in the legal sector, signalling a permanent alteration in
professionalism
Page | iii
TABLE OFCONTENTS
ABSTRACT III
CHAPTER ONE: INTRODUCTION 1
1.1 BACKGROUND TO RESEARCH 2
1.2 RESEARCH QUESTIONS 6
1.3 DEVELOPMENTS IN THE ORGANISATION AND MANAGEMENT OFAUSTRALIAN LAW FIRMS 6
1.4 UNDERSTANDING ORGANISATION AND MANAGEMENT IN PRIVATE LAW FIRMS: THE ROLE OF ARCHETYPE THEORY 22
1.5 LAWYER ACCOMMODATION OF MANAGERIALISM: A NEW PROFESSIONALISM? 24
1.6 SUMMARY OF ARGUMENT AND THESIS OUTLINE 25
CHAPTER TWO: UNDERSTANDING PROFESSIONALISMAND THE PROFESSIONS 31
2.1 INTRODUCTION 32
2.2 THE PROFESSIONS AND PROFESSIONALISM: THEORETICAL DEVELOPMENT1900–2010 34
2.3 HOW LEGAL PROFESSIONALS ARE ORGANISED 40
2.4 INDIVIDUAL ACCOMMODATION OF MANAGERIALISM AND/OR RETENTION OF TRADITIONAL PROFESSIONAL VALUES 47
2.5 ARCHETYPE THEORY: APPLICATION TO ORGANISATIONAL RESEARCH 50
2.6 THEORETICAL ARCHETYPES REGISTERED IN THE LEGAL SECTOR 57
2.7 CONCLUSION 68
CHAPTER THREE: RESEARCH STRATEGY ANDMETHODOLOGICAL PROCEDURES 70
3.1 INTRODUCTION 71
3.2 OVERVIEW: THEORETICAL FRAMING OF RESEARCH STRATEGY 71
3.3 RESEARCH QUESTIONS 73
3.4 ARCHETYPE DIMENSIONS: RESEARCH DESIGN PRECEDENTS 74
3.5 ARCHETYPE FORM AND MEANING: RESEARCH METHOD 77
3.6 INDIVIDUAL ACCOMMODATION OF MANAGERIALISM: RESEARCH METHOD 84
3.7 LAWYER POPULATION SAMPLE 87
3.8 DATA ANALYSIS 89
3.9 CONCLUSION 91
Page | iv
CHAPTER FOUR: ARCHETYPE FORM AND MEANING: INTERPRETIVE SCHEME 93
4.1 INTRODUCTION TO CHAPTERS FOUR, FIVE AND SIX: ARCHETYPE FORM AND MEANING 94
4.2 ARCHETYPE FORM AND MEANING: INTRODUCTION TO THE INTERPRETIVE SCHEME 95
4.3 INTERPRETIVE SCHEME ANALYSIS:AVERYBELL 98
4.4 INTERPRETIVE SCHEME ANALYSIS:LINESADLER 111
4.5 INTERPRETIVE SCHEME ANALYSIS:FOXSTEVENS 119
4.6 CONCLUSION:INTERPRETIVE SCHEME COMPARISON OF THREE CASES 127
CHAPTER FIVE: ARCHETYPE FORM AND MEANING:STRUCTURE 130
5.1 INTRODUCTION: ARCHETYPE STRUCTURE DIMENSION 131
5.3 ARCHETYPE FORM AND MEANING: STRUCTURE DIMENSION 144
5.4 INDICATIVE RATING ANALYSIS OF STRUCTURE ELEMENTS 152
5.5 SUMMARY: ARCHETYPE STRUCTURE DIMENSION 154
CHAPTER SIX: ARCHETYPE FORM AND MEANING: SYSTEMS 156
6.1 INTRODUCTION: ARCHETYPE SYSTEMS DIMENSION 157
6.2 SYSTEMS ELEMENT: STRATEGIC CONTROL 157
6.3 SYSTEMS ELEMENT: MARKETING-FINANCIAL CONTROL 170
6.4 SYSTEMS ELEMENT: OPERATING CONTROL 179
6.5 CONCLUSION: ARCHETYPE FORM AND MEANING ANALYSIS SUMMARY 190
CHAPTER SEVEN: LAWYER ACCOMMODATION OF MANAGERIALISM 196
7.1 INTRODUCTION 197
7.2 EFFICIENCY AND PRODUCTIVITY: IMPACT ON LAWYERS 198
7.3 NEW PROFESSIONAL BEHAVIOURS:BUSINESS DEVELOPMENT AND PRACTICE MANAGEMENT 206
7.4 INDIVIDUAL WELLBEING, EFFICIENCY AND CLIENT ORIENTATION 212
7.5 ADAPTING TO MANAGERIALISM AND EFFECT ON CAREER DECISIONS 216
7.6 STRUCTURES AND SYSTEMS WHICH SIGNAL EMPLOYEE‘CARE’ 223
7.7 FIRM VALUES AS AN INDICATOR OF LAWYER ADOPTION OF MANAGERIALISM 228
7.8 CONCLUSION 230
Page | v
CHAPTER EIGHT: REVIEW OF FINDINGS AND DISCUSSION 232
8.1 INTRODUCTION 233
8.2 REVIEW OF THE FINDINGS 233
8.3 THEPROFESSIONALLYMANAGEDPARTNERSHIP(PMP): AN ALTERNATIVE ARCHETYPE 237
8.4 THEPMP ARCHETYPE AND MARKET PROFESSIONALISM 243
8.5 SUMMARY: AN ALTERNATIVE ARCHETYPE AND A NEW PROFESSIONALISM 255
CHAPTER NINE: CONCLUSION AND IMPLICATIONS 256
9.1 INTRODUCTION 257
9.2 SUMMARY OF THE FINDINGS AND CONTRIBUTION TO THEORY 257
9.3 CONTRIBUTION TO LEGAL SECTOR PRACTICE AND POLICY 261
9.4 RESEARCH LIMITATIONS 263
9.5 FUTURE RESEARCH 263
9.6 CONCLUSION 265
BIBLIOGRAPHY 267
APPENDICES 281
APPENDIXA–ARCHETYPE INTERVIEW SCHEDULE 282
APPENDIXB–STRUCTURED QUESTIONNAIRE 284
APPENDIXC–LAWYER ACCOMMODATION INTERVIEW SCHEDULE 288
APPENDIXD–AGE, GENDER, TENURE AND WORKING HOURS OF SAMPLE PARTICIPANTS 290
APPENDIXE–NVIVO CODING 293
APPENDIXF-INDICATIVE RATINGS OF ARCHETYPE DIMENSIONS ACROSS CASE STUDY FIRMS 301
Page | vi
LIST OFTABLES
TABLE1: GROWTH IN LARGE AUSTRALIAN PRIVATE LAW FIRMS(1996–2008) 15
TABLE2:TRADITIONAL AND NEW PROFESSIONALISM 49
TABLE3:P2 ANDMPBARCHETYPE DIMENSIONS AND ELEMENTS 61
TABLE4:SUMMARY OF DATA SOURCES FOR ARCHETYPE ANALYSIS 82
TABLE5:ARCHETYPE FORM AND MEANING RESEARCH TOOL DEVELOPMENT AND DESIGN 83
TABLE6:SUMMARY OF SAMPLE FOR STRUCTURED QUESTIONNAIRE 84
TABLE7:ACCOMMODATION MEASURES INCLUDED IN STRUCTURED QUESTIONNAIRE 85
TABLE8:SAMPLE OF STRUCTURE QUESTIONNAIRE ITEMS AND CONVERSION TO INTERVIEW QUESTIONS 86
TABLE9:CONVERSION OF PROFESSIONALISM QUESTIONNAIRE ITEMS TO INTERVIEW QUESTION 87
TABLE10:SUMMARY OF RESPONDENT SAMPLE IN CASE FIRMS 88
TABLE11:PARTICIPANT’S EMPLOYMENT LEVEL IN THE CASE FIRMS 88
TABLE12:P2/MPB ARCHETYPE DESCRIPTORS 95
TABLE13:DATA REFERENCES AND EXAMPLES OF TRADITIONAL PROFESSIONALISM,AVERYBELL 100
TABLE14:EXAMPLES OF LOCALE OF COMMITMENT TO GROUP OR PARTNERS,AVERYBELL 101
TABLE15:EXAMPLES OF‘EXCELLENCE’ AS A RECOGNISED VALUE,AVERYBELL 105
TABLE16:EXAMPLES OF CLIENT EXPECTATIONS,AVERYBELL 109
TABLE17:EXAMPLES OF CONTRASTING DESCRIPTIONS OF VALUES AND BELIEFS,LINESADLER 112
TABLE18:EXAMPLES OF SOCIALISING TRADITION,LINESADLER 112
TABLE19:EXAMPLES OF LOCALE OF COMMITMENT TO GROUP OR PARTNERS,LINESADLER 114
TABLE20:DESCRIPTIONS OF SPECIALIST MANAGEMENT INFLUENCE,LINESADLER 116
TABLE21:DEVELOPMENT OF MANAGEMENT AND BUSINESS DEVELOPMENT BEHAVIOURS,LINESADLER 117
TABLE22:CLIENT EXPECTATIONS ON LAWYERS,LINESADLER 118
TABLE23:EFFECT OF NON-LAWYERCEO APPOINTMENT,FOXSTEVENS 121
TABLE24:DATA REFERENCES AND EXAMPLES OF TRADITIONAL PROFESSIONALISM,FOXSTEVENS 122
TABLE25:PARTNER AND GROUP LOYALTY,FOXSTEVENS 124
TABLE26:FIRM GROWTH BY STAFF CATEGORY,AVERYBELL(1994-2008, SELECTED YEARS) 137
TABLE27:FIRM GROWTH BY STAFF CATEGORY,LINESADLER(1988–2008, SELECTED YEARS) 138
TABLE28:EXAMPLES COMMENTS REGARDING GROWTH,LINESADLER 139
TABLE29:FIRM GROWTH BY STAFF CATEGORY,FOXSTEVENS(1989-2008, SELECTED YEARS) 140
TABLE30:EXAMPLES COMMENTS REGARDING VARIATION IN GROWTH,FOXSTEVENS 140
TABLE31:SUMMARY OF ORGANISATION OF THREE CASE FIRMS2008 143
TABLE32:P2 ANDMPB STRUCTURE DIMENSIONS AND ELEMENTS 145
TABLE33:INTEGRATIVEDEVICES–HIERARCHY,AVERYBELL 147
TABLE34:INTEGRATIVEDEVICES–CROSS-REFERRAL AS DESCRIBED BY SENIOR MANAGEMENT 149
Page | vii
TABLE35:INTEGRATIVEDEVICES–LEARNING AND DEVELOPMENT,FOXSTEVENS 151
TABLE36:EXAMPLE RATING OF‘USE OF RULES AND PROCEDURES’ 153
TABLE37:ARCHETYPE SYSTEM DIMENSION, ELEMENTS AND SUB-ELEMENTS 157
TABLE38:INVOLVEMENT IN STRATEGIC PLANNING,AVERYBELL 159
TABLE39:INVOLVEMENT IN STRATEGIC PLANNING,LINESADLER 160
TABLE40:INVOLVEMENT IN STRATEGIC PLANNING,FOXSTEVENS 161
TABLE41:CASE FIRM FORMAL VALUES 162
TABLE42:TRADITIONAL AND NEW ASPECTS OF LEGAL PRACTICE 198
TABLE43:IMPACT OF WORKLOAD ON PERSONAL RESPONSIBILITIES, SOLICITORS 199
TABLE44:IMPACT OF WORKLOAD ON PERSONAL RESPONSIBILITIES, SENIOR ASSOCIATES AND PARTNERS 200
TABLE45:CLIENT EXPECTATIONS,LINESADLER 201
TABLE46:LAWYERS AND WORK COMPLETION,AVERYBELL ANDLINESADLER 202
TABLE47:WORKING HOURS,LINESADLER 205
TABLE48:DEVELOPMENT OF BUSINESS DEVELOPMENT SKILLS FOR LEADERS, ALL CASES 207
TABLE49:ABILITY TO MANAGE PERFORMANCE, ALL CASES 210
TABLE50:SAMPLE COMMENTS ON HEALTH AND WELLBEING,AVERYBELL 213
TABLE51:SAMPLE COMMENTS ON HEALTH AND WELLBEING,LINESADLER 214
TABLE52:SAMPLE COMMENTS ON HEALTH AND WELLBEING,FOXSTEVENS 215
TABLE53:SENIOR ASSOCIATE DEDICATION TO A LEGAL CAREER, ALL CASES 217
TABLE54:SOLICITORS CAREER CALCULATIONS, ALL CASES 218
TABLE55:REQUIREMENT FOR FLEXIBILITY, FEMALE LAWYERS,LINESADLER 220
TABLE56:OPPORTUNITY FOR FLEXIBILITY,FOXSTEVENS 221
TABLE57:SENIOR TO JUNIOR LAWYER SUPERVISION, ALL CASES 225
TABLE58:CONSEQUENCES OF POOR SUPERVISION,LINESADLER ANDFOXSTEVENS 226
TABLE59:FIRM BENEFITS– DEMONSTRATING EMPLOYEE CARE, ALL CASES 227
TABLE60:CORPORATE VALUES,AVERYBELL 228
TABLE61:CORPORATE VALUES,LINESADLER 229
TABLE62:RESEARCH QUESTION SUMMARY FINDINGS 234
TABLE63:COMPARISON OFP2,MPB AND PROPOSEDPMP ARCHETYPE DIMENSIONS 238
TABLE64:INTERPRETIVE SCHEMEP2,MPB,PMP:DISCUSSION SUB-ELEMENTS HIGHLIGHTED 243
TABLE65:LAWYER PERCEPTIONS OF PERFORMANCE MEASUREMENT, ALL CASES 249
TABLE66:COMPLEX WORK AS A FACTOR OF JOB SATISFACTION,AVERYBELL ANDLINESADLER 250
TABLE67:LAW AS IMPORTANT TO SOCIETY, ALL CASES 253
TABLE68:PROFESSIONAL DEDICATION, ALL CASES 254
TABLE69:ARCHETYPE INTERVIEW SCHEDULE 282
TABLE70: LAWYER ACCOMMODATION INTERVIEW SCHEDULE 288
Page | viii