Making Legal Cents: Firm Culture Is The New Game Plan, Published in Law360

In this installment, I tackle a perennial issue that's become more urgent: creating an environment where everyone at your firm drives better financial performance.
2 Minute Read
Making Legal Cents: Firm Culture Is The New Game Plan

A Note from Shireen Hilal

I love this topic because so much of what happens inside a law firm comes back to the people. These are people businesses. Your workforce is your biggest cost, asset, and risk, and a lot of the issues that show up in profitability, client service, retention, and execution start there.

I wrote this article because firms usually respond to performance pressure with short-term pushes (e.g., bill more, collect faster, etc.), but those efforts only go so far if the culture underneath doesn’t support the behavior leaders want to see.

In the article, I focus on a few ways firms can make culture more concrete:

  • Move from values to promises: Vague values like “excellence,” “integrity,” or “client service” don’t tell people what to do differently on a busy Tuesday. Promises are more specific. They explain what the firm expects, what clients and colleagues can count on, and which behaviors should show up in hiring, onboarding, reviews, incentives, and daily decisions.
  • Give people context, don’t control them: Firms don’t need to micromanage every decision, but they do need to be clear about what requires strict compliance, then give people enough information to use judgment everywhere else.
  • Use transparency to create accountability: People can’t support firm priorities (e.g., better profitability)  if they don’t understand how the business works. Sharing the right context helps them connect daily choices to the firm’s performance.
  • Let culture be co-created: Culture isn’t built through leadership memos. But leaders can help create the right culture by involving others and then rewarding the right behaviors.

We help law firm leaders build more successful firms, and one piece of that is strengthening culture and accountability. If your firm is looking to level up and not sure how to get there, I’m happy to be a sounding board. Meanwhile, the full Law360 article is below.

As Published in Law360

From Short-Term Fixes to Sustainable Success

Billable hours, collections and profits-per-partner calculations dominate monthly management and practice group meetings, with discussions often sparking repeat campaigns to "do better" — bill more, collect faster, etc.

These sprints can offer short-term boosts. But, like crash diets, they aren't sustainable. Real  improvement requires a law firm lifestyle change.  

Most firms know a more sustainable solution is needed, but find it difficult to move past  symptoms and identify root causes.  

So what is the root cause? Culture. Strong financial footing comes from ecosystems where  profitability thrives naturally, the accountability and commitment of your team becomes a  competitive advantage, and client loyalty is enhanced with strong results and consistent  value.  

Culture is often dismissed as a so-called soft factor — platitudes on a website that seem  disconnected from the bottom line. But law is a people business. Your workforce is your  single biggest cost, asset and risk, and trusted relationships are the foundation of new  business.  

Firms with intentional cultures build engagement, accountability and connection into their  DNA. The key word here is "intentional" — strong cultures don't happen by accident.  

This article provides an actionable road map for embedding a thriving culture into your day to-day operations. It's time to take culture from a soft concept to a hard strategy — one  that delivers measurable results for your firm and clients.  

The Data: A Challenging 2025 Forecast 

This year's financial outlook for law firms highlights upcoming challenges: Expenses are  projected to stay at historically high levels, while demand for legal services is expected to  shrink.[1]  

Adding to these pressures are shifting client expectations. A study released in January by  software company BigHand Ltd. revealed that 85% of firms saw "an increase in client  demand for financial transparency, reporting, and additional discounting" last year, while  72% saw higher write-offs last year, and 75% expect the same this year.[2]  

This dual squeeze — rising costs and client-driven pricing pressure — means firms can't  

afford inefficiency. Thriving in this environment requires more than competitive fee  structures or the right technology stack. It takes building a culture where doing the right  thing — for clients, colleagues and the business — is second nature for your entire  workforce.  

Other industries have provided a road map. For example, the best tech firms are known for  rigorously hiring for both cultural alignment and exceptional performance, selecting  individuals who are likely to meet high standards within their unique environments. They  then empower their workforce with transparency and agility, enabling them to innovate,  scale rapidly and sustain competitive advantage.  

Law firms, though different in structure, can adapt these examples while building on the  nuances that build the best professional services firms.  

Point being, the wheel has already been built, and your firm can (bank)roll faster.  

Actionable Strategies for Transforming Your Firm 

To transform your firm, you need a framework that ties culture, operations and client value.  The following sections outline programs that build on each other, creating a foundation of  operational strength and cultural clarity to drive results.  

Excellence Over Expansion 

Excellence is table stakes at any great services firm — driving client retention, employee  engagement and long-term profitability. Without it, growth initiatives fail.  

Too often, firms focus on expansion — new practice areas, locations or lateral hires — while  neglecting the core question: How do we become the best at what we already do? This  approach overextends teams, leads to uneven client experiences and squanders  opportunities to build an enduring reputation for excellence.  

By embedding high standards into every process, you create a culture where exceptional  results are the norm. Here's how to make it happen.  

Strengthen your strengths. 

Double down on areas where you already excel. Sharpening strengths is far more effective  than stretching resources to fix weaknesses that won't become competitive advantages.  

Focus on one area at a time. 

Don't try to fix everything at once. Each month or quarter, select one improvement area for  the firm. Allow each function or practice group to tailor that focus to their specific workflow  so the goal resonates across your firm.  

Layer and build over time. 

Every small improvement should become a permanent standard. Over time, these  nonnegotiables create a well-oiled system of excellence that drives consistent results and  earns client trust.  

Here is an example of how a firm might approach this in practice, ensuring both client-

facing professionals and internal teams feel ownership: If client communication is a strength  on which the firm wants to double down, its real estate group could create a framework for  proactive client updates during transactions, while IT builds a dashboard to give clients real time insights into matter progress.  

Moving From Values Into Promises 

Choosing areas of excellence ensures you're starting from a position of strength, but it's not  enough to rely on individual initiatives. Firms need overarching frameworks that guide  decisions, behaviors and priorities at every level.  

Values, as they're usually articulated, don't cut it. Vague statements like "integrity" sound  good in theory, but fail to resonate or drive action.  

Instead, transform values into clear, actionable promises that set the standard for success  and create a compelling value proposition.  

The goal isn't to appeal to everyone — it's to attract and keep the right people, while  demanding excellence. These promises guide critical processes like hiring, promotions and  compensation by defining the traits and behaviors that thrive at your firm. Some examples  of reinforcing promises include:  

  • Balance flexibility and accountability. Associates should have control over where and  when they work, but also be expected to log time daily. This ensures accurate  budgeting, equitable workload distribution and visibility into capacity — no matter  where they are.  
  • Invest in growth for a purpose. For instance, employees could receive a professional  development budget to pursue certifications, workshops or courses. In return,  they're expected to grow into new responsibilities, mentor peers or take on initiatives  that directly benefit the firm.  

This level of clarity is powerful. But promises only work if they are operationalized. Unlike  abstract values, they should be embedded into policies, training and daily workflows. Here's  how to make them a lived reality.  

Train for real-life situations. 

Show — don't just tell — employees how to live the promises through practical, scenario based training.  

For example, a firm that expects personalized service should train teams on how to adjust  communications based on client needs and risk appetite. A corporate general counsel may  need concise and actionable recommendations, while a startup founder might appreciate  more context and options.  

Align incentives for employees. 

Reward employees for behaviors that deliver on promises. For example, you might give spot  bonuses to departments with high client feedback scores on factors they affect.  

Bake promises into onboarding and reviews.

Make promises a central part of your new hire process and ongoing evaluations. Examples  include (1) onboarding manuals, which can include promises and provide practical examples  of how to meet these standards; and (2) review metrics, which can tie performance reviews  to promises, helping employees see how their contributions align with the firm's  commitments.  

Create transparent feedback loops. 

Use tools like client satisfaction surveys and anonymous employee feedback to monitor how  well promises are being fulfilled. Act on this data to refine processes and build trust, both  internally and externally.  

Bottom line: High-performing firms create alignment between firm goals and daily actions.  

Empowering Your People With Purpose Over Process 

Delivering on your promises requires a culture of trust and empowerment. Excellence isn't  achieved by micromanaging every detail — it comes from being clear about what requires  rigid compliance, and giving your team the autonomy to make smart decisions everywhere  else.  

Top talent stay engaged in environments where purpose drives actions. They care less  about perks like free lunches or happy hours, and more about making meaningful  contributions, having the tools to succeed and working alongside other top talent.  

Law firms thrive when so-called zero-defect processes — which leave no room for error,  e.g., filing deadlines or trust accounting — coexist with purpose-driven flexibility in areas  like client communication and internal collaboration.  

In contrast to zero-defect processes, other areas benefit from empowering employees to  use their judgment to meet client needs and achieve firm goals.  

Here's how you ensure better decision-making.  

Clarify decision-making authority. 

Create frameworks that provide employees with clear boundaries, but allow flexibility where  it matters most. For example, partners could be empowered to discount bills up to 7%  without additional approval if predefined criteria are met, such as preserving a key client  relationship.  

Give every role meaning and autonomy. 

When employees at all levels feel empowered, the firm benefits from their creativity and  engagement. For example, administrative teams could have a small budget for client  engagement, allowing them to proactively support relationship-building.  

Sending a Starbucks gift card to a client who rescheduled multiple times or a bottle of wine  to celebrate a promotion reinforces the firm's client-first ethos, while also giving staff a  sense of pride over the part they have to play in maintaining client relationships.  

Transparency to Drive Accountability

If you're going to give your team the autonomy to make decisions, you need to provide  enough information for them to make the right calls. Without this visibility, attorneys and  staff are left guessing, unable to fully support the firm's direction or connect with its  success.  

Law firms often create a so-called black box effect, where nonpartners operate without  insight into the firm's financial health, strategic priorities or performance expectations. But  professionals who don't understand how their work affects the firm's bottom line are less  likely to think proactively about pricing, efficiency or long-term client relationships.  

Transparency doesn't mean sharing every detail — it means providing enough context for  employees to align their actions with firm goals. Here's how to equip your team with the  right level of visibility.  

Give better information. 

Most firms hold quarterly or annual all-hands meetings, but too often, these are filled with  generic updates that don't provide real insights.  

Instead, use these meetings to share the firm's strategic direction. For example, instead of  a vague statement like, "We're focused on profitability this year," provide specific insights,  like, "Our realization rate dropped 4% last quarter — here's what's causing it and how we  can improve."  

Explain the "why" behind billables and profitability. 

Many professionals, especially those early in their careers, don't fully understand how law  firms make money beyond the billable hour. Educate them on profitability drivers,  realization rates and how efficiency affects margins.  

For example, explain the concept of realization — if billable hours are routinely written off, it  signals inefficiency, misaligned client expectations or pricing gaps.  

Pair this insight with tactical solutions, like contemporaneous and detailed time entries that  reinforce value for clients.  

Give compensation clarity. 

Align rewards with behaviors that drive the firm's strategic goals. Recognize and incentivize  high client-satisfaction scores, cross-department collaboration and proactive client  communication.  

Transparency around what's rewarded helps employees focus on what truly matters to the firm's success.  

Cocreating Your Culture 

Every section of this road map — excellence, promises, empowerment and transparency —  ultimately leads here. Culture isn't dictated from the top down; it's built together.  

Too often, firms try to shape culture through leadership memos, core values statements or  one-off initiatives. But a firm's actual culture isn't what leadership says it is — it's the daily 

experience of employees, the way decisions are made and the behaviors that are rewarded.  

Firms that treat culture as a leadership directive often end up with disengaged teams who  feel disconnected from the values they're told to embrace.  

Here's how to bring employees into the process, so culture becomes something they  actively contribute to — not just something they're told to follow.  

Let employees shape firm initiatives. 

Employees are far more invested in programs they've helped design. Instead of leadership  deciding everything — from training programs to internal engagement efforts — give  employees ownership over key firm initiatives. Examples include:  

  • Lunch-and-learn ownership: Instead of assigning training topics from the top down,  let associates and managers select topics that address real knowledge gaps or  challenges they're experiencing.  
  • Staff-driven social and professional events: Allow teams to take the lead in  organizing firm events — whether it's mentorship circles, innovation workshops or  social gatherings that reinforce firm culture.  

Have collaborative town halls. 

Firmwide meetings are usually one-way broadcasts. Instead, turn them into dynamic  conversations. Examples include:  

  • Highlighting employee-led wins: Dedicate part of the meeting to employees  presenting successful projects, efficiency improvements or client wins.  
  • Providing cross-department insights: Give teams outside of leadership a platform to  present new initiatives. For instance, have your marketing team share how they're  refining business development strategies.  

Involve fresh perspectives in key firm decisions. 

When firms revisit policies, processes or internal workflows, they often rely on leadership's  perspective. But employees — especially those on the front lines — have keen insights.  

For example, when evaluating processes, include input from those most affected, whether  that's asking new hires to help shape your onboarding, or letting client-facing teams refine  service delivery.  

The firms that embed cocreation into their culture don't just get better engagement — they  get better ideas.  

Conclusion 

Firms that operationalize excellence, align promises with actions and empower their people  to act decisively build something unshakable: trust. Trust with clients, among teams and in 

the firm's future.  

Start small. Build intentionally. The results will speak for themselves.  

If you have feedback or are identifying trends or challenges you'd like to see addressed next  quarter, I'd love to hear from you.  

Shireen Hilal is the chief executive officer at Maior Strategic Consulting.  

The opinions expressed are those of the author(s) and do not necessarily reflect the views  of their employer, its clients, or Portfolio Media Inc., or any of its or their respective  affiliates. This article is for general information purposes and is not intended to be and  should not be taken as legal advice. 

[1] https://www.thomsonreuters.com/en-us/posts/legal/state-of-the-us-legal-market 2025/.  

[2] https://www2.bighand.com/bighand-enhancing-profit-insights. 

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