Practice News

In the latest ISBA Trusts and Estates newsletter, Jay S. Goldenberg offers a simple remedy for a nettlesome problem. Suppose that, as in Jay's case, your wife is your primary agent under your POA for health care, but you want your successor-agent daughters to be kept in the loop about your status and treatment. Under HIPAA, the hospital is authorized to release information only to your primary agent. How do you open the spigot? Here's what Jay did: "I added the following language to the statutory form just after Paragraph 5 (which lists successor agents). 'Without changing the order of succession as agent, I give permission to any health care provider to release any and all of my medical information to any successor agent named hereunder, regardless if acting.'" So far, it's done the trick, Jay reports.

By John W. Olmstead, MBA, Ph.D, CMC Q. I am a partner in a 14 attorney firm. We have 9 partners and 5 associates. Currently, the firm is governed by all of the partners voting, usually just consensus, on all management decisions. We are thinking about going to a management committee. What suggestions do you have? A. You have reached a size where it is counterproductive for all of the partners to be involved in every management decision. In a recent posting I discussed the difference between management and administration. There should be a role for all partners in the management affairs of the firm (the partnership) but they do not need to be immersed in the day-to-day administrative concerns. Also, to what extent should a management committee be involved in administrivia. Successful firms have a good governance and management structure in place and effectively manage the firm. A major problem facing many law firms is the lack of long range focus and the amount of partner time that is being spent on administrivia issues as opposed to higher level management. A management committee may be the right direction if properly integrated with a governance/management plan for the firm. There is no "best approach" for structuring a law firm. However, keep in mind that there is still a role for the partnership at large and for your office manager or administrator as well. Here are a few ideas to get you started:

The Illinois Supreme Court announced Wednesday that DuPage County State's Attorney Joseph E. Birkett has been appointed to the Appellate Court of Illinois, Second Judicial District. He takes the position presently held by the Honorable John M. O'Malley, who is retiring from judicial office on December 5, 2010. This appointment is effective Dec. 13, 2010 through December 3. 2012.

Asked and Answered By John W. Olmstead, MBA, Ph.D, CMC Q. I am the managing partner of a 90 attorney firm in Chicago. We have 45 equity partners, 20 non-equity partners, and 25 associates. We have a three member executive committee as well as other committees in place in addition to the managing partner. Five years ago we formulated a strategic plan and have been attempting to successfully implement it since that time. We have had limited success. We don't seem to be able to get our partners "on board" with the actual implementation. I will tell you - I am truly herding cats here. Any ideas on how to get these guys and gals on board? A. Getting your partners on board is always a challenge. The obstacles are almost too numerous to outline. Yet if law firms want to be successful in this turbulent environment they must embrace change and get their partners not only behind new strategies but often they must also be the ones to implement these strategies as well. Managing lawyers in general is like herding cats. But trying to manage "star partners" is a real challenge. They are the "hitters" upon which a firm's future often depends. True star partners are:

1. Building enduring client relationships
2. Consistently performing up to their full potential
3. Putting the firm first and implementing strategic imperatives

Star and other partners in the firm must continually balance their roles as producer, manager, and owner. Often, these roles may be in conflict. Also there are personal strategies and agendas as well. Actually, I don't think they can be managed - but they can be led. There is a difference. But in order to accomplish this the following need to be well designed, in alignment and balanced: Strategy The personalities, emotions and needs of your partners constrain a firm's ability to design and implement strategy. Keep in mind that firm leadership cannot order the troops forward; instead the troops (partners) must essentially vote with their feet to pursue a new strategic direction. Absent a crisis, partners tend to stay on track and support only modest adjustments to strategy. Organizational (Structure, Governance, HR Systems)