Profitability in Law Firms through Values-Based Leadership

Center for Values-Driven Leadership Ethics, Leadership, Values, Values-Driven Leaders

Law Firm | Values & ProfitHow can law firms – and other client-service industries – add real value to those they serve? Strengthen their internal values, then those of other clients.

New article in prominent law magazine highlights role of values in driving profitability.

 

Mission, vision, and values statements are not new business for law firms, says author Katy Goshtasbi, a securities attorney writing in the current edition of Law Practice magazine. But Goshtasbi says there’s room for significant growth in the integration of these statements in the daily practices of the firm.

“In my experience,” she writes, “financials are a lagging indicator of law firm success.”

So what is the leading indicator? Among other things, Goshtasbi says we should look toward a firm’s values, and their leadership’s adherence to them, as a leading indicator of firm success. Her article’s insights can be applied more broadly to others in client-service industries such as consulting, project management, and accounting.

Goshtasbi notes that clarity around values leads to firm efficiency and success in many ways, including:

  1. Brings your team together around common language and expectations.
  2. Makes decision making easier.
  3. Lessens conflict.
  4. Leads to increased profitability.

In the article, Goshtasbi identifies values particularly important to law firms, such as leadership, appreciation, creativity, passion, integrity, equality, and compassion. Who is responsible for driving the firm’s conversation around values? Quoting Dr. Jim Ludema of the Center for Values-Driven Leadership, Goshtasbi places responsibility on the firm’s top leaders.

Read the full article, for more ways law firms can clarify their ethics and values, at this link.

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