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How a Firm Can Be Killed By Its Culture

By Carl Peters
October 31, 2006

When firms first recognize they need to change in order to be more competitive, it appears that they have a seemingly infinite array of options. Cost-cutting, increasing billable hours, starting a marketing program and hiring a rainmaker are usually at the top of the list, but it often seems as though everyone in the firm has their own solution to the problem. In reality, there are only a few key steps that are appropriate and necessary for most firms. The real problem is that execution of these tactics is a long-term effort, not a 1-year program. Mounting a sustained effort requires a change in the behavior of the members of the firm and therefore a change in the culture of the entire firm. However, there are forces at play in every firm that act to prevent these changes. This article discusses how the culture of a firm locks it into place and prevents it from changing. Solutions for moving past these issues are also identified.

Preserving a firm's culture is an overriding consideration of most law firms. This seems to be true no matter what the particular culture is: work hard vs. hardly work, quiet respect vs. public tantrums, egalitarian vs. hierarchical, easy-going Californians vs. hard-driving New Yorkers. This is true not only of law firms, but of all organizations. We tend to believe that our personal behavior and group culture are what have brought us whatever success we have had.

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