The complex relationship of business areas in the structure of law firms

There is some unresolved friction with business area professionals in law firms. Although the description of their functions is very clear, their location in the organizational and hierarchical scheme is somewhat blurred.

The following is an excerpt from the publication made by Miguel Ángel Pérez de la Manga for the newspaper El Confidencial in its May 14, 2024 edition (La compleja relación de las áreas de negocio en la estructura de las firmas de abogados (elconfidencial.com)

As law firms grow, their organization becomes more complex. Business area professionals have always played a complex role in the structure of professional services firms, where decision flows have their own characteristics.

There is a certain unresolved friction with business area professionals (marketing, finance, HR, IT, knowledge management, communication, business development, and any other that each firm considers necessary) in law firms. Although the description of their functions is very clear, their location in the organizational and hierarchical scheme within the firm is somewhat diffuse. There is a tendency to compare their fit with similar figures in product or service (non-professional) firms, which is not very accurate. This comparison can generate an expectation that is not in line with reality, and in the long term, frustration for the professional if he/she does not feel identified with his/her work. Let’s see where this complexity lies.

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Finally, the process of evolution towards the maturity of law firms begins with very simple structures, formed exclusively by lawyers, to which are gradually incorporated professionals who assume the functions that are not part of the provision of legal services. As firms grow, these functions become more abundant and require more professionals, to the point of having directors for each area who have their own team.

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But this is not something that has to do exclusively with lawyers. The director of legal counsel in a communications agency or an engineering firm would be in the same situation. The point is that a professional is more fully self-realized when he or she is in an organization where the core business is his or her profession. It’s that simple and that complicated. Let’s remember that partnerships exist because they give their members freedom over who to associate with, they choose the scope and depth of knowledge to devote themselves to, and they share their reputational risk in the form of socialization. None of this happens with anyone who is not part of the service delivery.