For the longest time, the Indian legal industry had kept the management of a law firm in the hands of its senior partners. Business development, branding, and expenditures were at a partner’s discretion and availability, while non-legal roles at law firms were limited to knowledge management, such as coordinating legal summaries of legal developments from partners to share with clients.

But today, a quick LinkedIn search of law firm executives will throw up titles like “law firm manager,” “practice development manager,” “innovation executive,” “law firm operations head,” and “business development.” Almost every law firm in the country, from Tier-1 firms to boutiques, appears to have management executives in business roles. One title that recently stood out was “chief practice officer,” the title that Khaitan & Co gave to its newly hired business executive Padmini Rathore. Formerly the chief executive officer at DSK Legal, Rathore heads the recently launched practice management vertical at Khaitan, which the firm says is the first of its kind in the Indian market.

“This vertical is responsible for coordinating various aspects of the legal practice, including workflow design, financial management, technology adoption, client relations, human resources, and compliance,” Rathore says.

“Practice management is about the ability to see the larger picture and bring the various strands together to pursue the target set out for a practice. Practice management is also about introducing objectivity and accountability within various practices and processes and solving problems / addressing bottlenecks in a manner which furthers the vision/objective of the firm,” she adds.

The practice management vertical also stands out due to its unique set of responsibilities, says Rathore. It has a much wider scope than other functions, as it ranges from workflow design and resource allocation to financial manage-ment, technology adoption, client rela-tions, human resources, and compliance, Rathore says.

CALL IN THE PROS

Rathore says that the trend of expanding the number of management executives in law firms in India can be attributed to the necessity of adapting to the evolving legal landscape. This includes “enhancing client services, improving internal operational efficiency, and remaining competitive in a dynamic market.” Another reason is the shift in law firm outlook to how growth is measured, Fox & Mandal’s newly appointed chief strategy officer Khushboo Luthra said. “Bringing in management executives has changed how law firms see business growth and the metrics and objectives as measuring criteria. Now the law firms have started seeing business growth beyond the topline in terms of attrition prevention, client retention, cross-selling successes, cost optimisation, revenue maximisation, visibility, public sentiments about the firm, and brand recognition,” Luthra said.

Luthra likens a law firm’s business to a four-wheeler, “where the wheels are clients, associates, partners, and a well-managed finance department, and the management executives are like the car chassis who give it structure and beautify the appearances of all the parties simultaneously.”

The emergence of new and specialised practice areas also requires specific and focused management, says Abhinav Jaiswal, senior executive at DSK Legal. “The surge in recruiting management executives at Indian law firms stems from several interconnected factors that are reshaping the legal industry. The increasing size of Indian law firms and rising complexity of legal services, including in diverse specialised domains like mergers, compliance, data protection, and space law, drives demand for specialised executives to strategise business development in these areas,” Jaiswal says.

BEYOND BD AND COMMS

Rathore says that there is now a clear distinction between practice management and more traditional management executive roles in law firms like business development, knowledge management and communications.

“Practice management is undoubtedly wider in its scope than some specific management units like BD, KM, PR / Comms, and it is practice management’s role to leverage the depth of expertise and experience that the management units offer in a manner which meets the overall practice and firm objectives.” But why do law firms need separate practice management verticals when you already have these various other divisions?

“Practice management verticals are required as they offer a holistic and strategic approach to advancing each practice area in the firm. By harmonising their strategies within the firm’s overall business objectives, these verticals can be developed with tailored plans that effectively tackle the distinctive challenges associated with each practice area,” Jaiswal explains.

Rathore believes that this integration of a law firm’s different parts ensures efficient and clear delivery of legal services to clients. “Unlike specialised roles that concentrate on specific functions, practice management involves coordinating and integrating various functions within the firm, such as finance, technology, human resources, and client relations,” she notes. Practice management also contributes to the firm’s financial growth, specifically focussing on “analysing the profitability of different practice areas, tracking billable hours, expenses, and creating budgets for cases,” she says.

IMPROVED CLIENT EXPERIENCE

Rathore notes that a key feature of practice management verticals is its client-centric operational management. “A client-centric approach, clear communication, operational efficiency, and a commitment to delivering high-quality legal services collectively contribute to a positive client experience in the context of increased management executives within the law firm structure,” she says. Based on conversations with clients and industry experts, Rathore adds that the increase in management executives has contributed to a more favourable perception of law firms and their ability to meet client needs effectively. Jaiswal concurs. “Clients have embraced the emergence of management executives within law firms as a promising way to elevate the firm’s legal services,” he notes.

But it’s not just the client-firm relationship that’s changed. Practice managers have also enhanced the lawyer-client relationship to more than just legal advice, says Luthra.

“The understanding of clients’ business and knowledge of the law has made it possible that law firms are constantly delivering knowledge-based content and management insights (and foresight) through practice management departments as enablers,” she notes. “It has ensured that lawyers have become strategic advisors, live-in coaches, and lifestyle trainers to their clients and not just legal advisors.”