Interpretation of the Company's System

Whatever mechanism it selects, a law firm will never avoid two factors, i.e., lawyers and clients. Only when it has considered these two factors and truly met the demand of these two groups, finding a balance point, it can be deemed as the best mechanism. This Article tries to analyze why the law firm selects the corporate system from such two perspectives.

I.    From the perspective of lawyer: Only the corporate system can meet the demand of different types of lawyers.

First, according to the specific stage and characteristics of a lawyer, we divide lawyers into three types: profession-oriented lawyers, market-oriented lawyers and cause-oriented lawyers. Wherein, profession-oriented lawyers focus on the handling of cases and rely on their professional skills. Most of such lawyers in a law firm are called as salary-based lawyers or wage-earning lawyers; Market-oriented lawyers focus on the market exploration and rely on the marketing capacity. Most of such lawyers in a law firm is called as secondary partner or non-equity partner; Cause-oriented lawyers focus on the management of the firm and rely on the management ability. Most of such lawyers in a law firm is called as senior partner or equity partner. These lawyers in three types may refer to three kinds of lawyers or three groups in a law firm, or three states or status of a lawyer, even tree stages or directions in the growth of a lawyer.

Second, we shall admit that although these lawyers in three types are all lawyers, with many common demands, they also have many different demands indeed. The design of mechanism for a law firm shall consider both the common and different demand of these lawyers in three types. As for the common demand, these lawyers in three types all hope that the law firm could have a good brand, abundant resources, scientific distribution and harmonious culture. As for the different demand, profession-oriented lawyers more focus on the survival environment, job treatment and developmental space; market-oriented lawyers more focus on market support, business team and distribution mechanism; and cause-oriented lawyers more focus on platform advantages, management mechanism and strategic choice. Actually, people focus on not only three levels, but also three perspectives. It is easy to find out that, the common and different demands both require the integration and enterprization for corporatization (corporate system) of law firm to varying degrees. Without such integration and enterprization, the continuous and systematic establishment of brand, platform, resources and culture will be impossible, much less the great support in respect of marketing, team, management and strategy. Therefore, the development of a lawyer requires the corporatization (corporate system) of law firm. 

At last, we will discuss whether only corporatization can meet the demand of all these types of lawyers simultaneously? If a law firm is only required to meet the main demand of profession-oriented lawyers,(namely survival and development), it is not necessary to implement systematic management, and the slight systematization in a team of partners or a department is enough (namely the first level of the corporatization of law firm as mentioned above). If a law firm is only required to meet the main demand of market-oriented lawyers (namely their distribution and operation), it is not necessary to emphasize the integrated distribution, and it is only required to do well in respect of the individual distribution and team cooperation. If a law firm is only required to meet the main demand of cause-oriented lawyers (namely extension and expansion), it is not necessary to consider the standardization of product and it is only required to well in establishing a platform (branding) and confirming the distribution (integration). However, we found that such decision which considers only a part is naive. These lawyers in three types in the law firm are inseparable in fact. Even a lot of lawyers have the property of these three types at the same time, only the proportion is different. We shall not consider only one type or aspect. Therefore, in order to achieve success, we shall identify a mechanism that can meet the demand of these three types simultaneously, that is just the corporate system.

So, the corporatization (corporate system) of a law firm is not a pseudo-proposition, but a common topic faced by each law firm on base of its reality. But, the managers of many law firms are not willing to admit this, or solve it. This is because many people deem a law firm as a means to make a living. In other words, they just treat the law firm as a tool (used to stamp a seal or issue an invoice only). They never consider it as a whole, much less intend to run it like an enterprise.

II.   From the perspective of clients: Only the corporate system can truly meet the deeper demand of clients.

First, we also divide the demand of clients of the law firm into three types: professional, commercial and political demands. Wherein, the professional demand requires that the lawyers have the ability to handle this legal business. In other words, the lawyer can deal with this business. This demand highlights the advantage and efficiency provided that the lawyer is competent; The commercial demand requires that the lawyer can handle this legal business according to various conditions specified by the client. In other words, this business is suitable for the lawyer. The experience of the client is pursued based on the recognition of the industry and a reasonable price; The political demand requires that the lawyers handle this legal business without triggering other issues and without any risk and conflict. In other words, the lawyer can deal with this business safely. It is required to avoid any defect of procedure and also solve the interest conflict. There is a progressive relation among these three demands. The professional demand is the foundation; the commercial demand is the condition; and the political demand is the guarantee. It is hard for a lawyer or a law firm to avoid these three major demands of its clients.

Second, we will discuss what a law firm needs to do so as to meet these three major demands of its clients. In order to meet the professional demand of its clients, a law firm must establish a stable and excellent professional team, form the comparative advantage in professional fields, and establish the mechanism and measures for service assurance. In order to meet the commercial demand of its clients, a law firm must implement systematic and effective brand promotion, establish a scientific and reasonable quotation system and achieve sustainable and sound client maintenance. In order to meet the political demand of its clients, a law firm must have a mature client development system, a rigorous system of interest conflict query, and a system of practice risk prevention. We can find out that no matter how strong an individual lawyer is, he or she can not meet all demands of its clients. To serve the client well, it is not only required to do professional work well. The traditional practice idea and departmental setting have been outdated. All these require the proper corporatization of a law firm.

At last, we will discuss how these three demands of clients are met through the corporatization (corporate system) of law firm. Through the management systematization (including structuralization, professionalism and normalization) as emphasized in the corporatization (corporate system) of law firm, the requirement for the establishment of a client development system, a quotation system and a maintenance system can be met, and the requirement of interest conflict query and practice risk prevent can also be met; Through the branding-oriented operation and product standardization as emphasized in the corporatization (corporate system) of law firm, the requirement of brand promotion, professional advantages and service assurance can be met; Through the distribution integration as emphasized in the corporatization (corporate system) of law firm, the law firm can establish a stable and excellent professional team. Therefore, the corporatization (corporate system) of law firm is designed not only for lawyers, but also for clients.

If a law firm has no lawyers, it will have no clients. In such case, it can hardly be called as a law firm. In fact, the demand of lawyers and clients both involves three elements: platform, mechanism and team. In respect of the platform, they both require branding, professional features, platform integration and resources sharing; In respect of the mechanism, they both require the balance of each party, the advantages, motivation assurance, and transparent system; In respect of the team, they both require a professional, public, stable and excellent team. All these require the integration and enterprization of the law firm, i.e., corporatization.

This is the reason why DOCVIT Law Firm decided to conduct the corporatization, also the true cause why many non-integrated and non-corporatized law firms fail to grow strong and last long.