Catalyst Definition of Law Firm Governance: Law firm governance encompasses how the firm is managed with respect to firm assets, policies, processes, and procedures, financial accountability, marketing and human resources by directing and controlling firm activities with best business practices and protection of its assets.
Decisions made are always in the best interests of the firm with accountability and commitment to firm vision, the values that guide it, and integrity. It relies on the external marketplace and provides for a healthy governing owner or partnership which drives the vision of the law firm. It is established by the ownership of the firm. Governance covers everything from management to partnership parameters to work culture. How you determine your governance program is directly related to your ability to succeed.
Catalyst believes that most firms wait until it’s too late to discuss issues of governance as directed by the owners of a law firm. Even the sole proprietor needs to be thinking and making decisions on aspects of governance and deciding how the firm should be governed.
Partnership documents are living, breathing documents that need to be reviewed every year. As the law changes, so do partnerships. A healthy partnership is one that is not afraid to confront issues and make course corrections.