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‘Partners on commission’ strategy an opportunity for expansion

Almost one year ago, an SME firm came up with a creative solution to support practitioners struggling to keep the lights on. Here, the firm’s managing partner speaks to Lawyers Weekly about the success of that strategy nearly 12 months later.

user iconJerome Doraisamy 16 February 2021 SME Law
Janya Eighani
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In April 2020, Sydney-based SME firm Lehman Walsh decided that, in order to support fellow practitioners during the age of coronavirus, it would restructure its own business in order to accommodate a “partners on commission” strategy, and do recruitment on this basis.

At the time, managing partner Janya Eighani said the strategy intended to “keep practitioners practicing during these difficult times and also makes sure that smaller clients are not left without access to legal services, simply because their lawyers are deciding to shut their doors or wind down, due to the uncertain commercial reality that COVID-19 has brought about”.

“In short, if you have enough work to continue practice or you can get the work, but cannot afford to set up a firm or simply don’t want to, we offer the most simple and fair alternative,” she posited.

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“As for Lehman Walsh, we also get to capitalise on our growth, by taking on lawyers who are great at what they do, can help the firm grown in the long term and simply would have been left without work were it not for someone else covering the overheads.”

Months later, Ms Eighani argued that – with Australia facing its first recession in almost three decades – a partners on commission strategy is one that can and perhaps should become more commonplace.

“Solicitors are changing their area of practice to survive. That is exciting and welcomed but at the same time a risky move. A property lawyer cannot become a commercial practitioner overnight. It takes many years of experience and it’s a risk to the quality of work and service to the client,” she explained.

“Furthermore, changing one’s area of practice for survival and not passion means a temporary relief and we will see these talented solicitors leaving the profession one after another because of lack of fulfilment and enjoyment.

“If every firm specialising in an area of practice (e.g. criminal law firms, family law firms) [starts] implementing this structure, those who specialise in these areas have a door to knock on if they are struggling.”

This all said, the strategy is a challenging one, Ms Eighani reflected – perhaps also due to the fact she is unaware of any other firms, regardless of size, that have implemented such a strategy.

“We were not familiar with the structure and it was new to the firm and the solicitors who were innovative enough to come on board. However, one year letter, we have utilised the skills of our Partners and Solicitors on commission to expand our area of practice and grow the firm,” she mused.

Ms Eighani is unperturbed by those challenges, however, arguing that partners on commission strategies are set to become more applicable for practices as we head towards a new normal.

“Times have changed, and the pandemic was an accelerator of that change. Senior Solicitors have done their years of working 9-to-5 for a set salary and living a life that was controlled by their work commitments,” she submitted.

“More and more solicitors are realising their capabilities to work independently and without the usual rituals of working as a lawyer. The partners on commission strategy allow solicitors to take control of their work without having to start their own practice. An option which was the only option available to any lawyers seeking flexibility and independence in the profession.”

Understandably, she noted, the conversation about implementing this strategy may be a “confusing and scary” one.

“The confidence to be able to succeed has been silenced over the years of practicing as a solicitor in a firm and being used to direction from others to complete the work,” she said.

“Many solicitors which I have had the privilege of discussing this opportunity have raised questions about failure and many questions that started with ‘what if’.”

Solicitors, Ms Eighani surmised, should be taught independence and confidence in the profession, “to be a lawyer no matter where and under what circumstances”.

“Unfortunately, the profession is more about becoming confident in what we do than becoming a master at it,” she said.

That confidence should give rise to increased entertainment of a partners on commission strategy, she determined, given how it is “definitely” an opportunity for firms to expand their horizons – as well as their professional and fiscal wings.

“Inviting skilled solicitors from different areas of law invites expansion and introduction to new departments within the firm,” she said.

“We have now extensively expanded our white-collar crime section due to the number of skilled partners on commission solicitors who have joined the firm having had practiced in this area for many decades. We have also merged with sole practitioners who just wanted to focus on practice and not the arduous and complicated task of running a practice.”

Lehman Walsh, for its part, will continue down this road, Ms Eighani concluded: “We will continue hiring partners and solicitors on commission, and we wish to expand our offices interstate by 2022.”

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