Hiring the right leader starts with tailoring the role to your firm’s unique needs. But how do you define the right scope, title, and responsibilities? 

Hiring an individual to lead a business services function in a professional services firm is a complex job. Firms need to understand the skills, capabilities and personality required to meet the strategic objectives of that particular function, while at the same time ensuring the right mix of talent for the leadership team as a whole.

So how do you decide on the right remit, job title and role for your function?

There are many complexities when considering how job descriptions vary for Chief, Director and Head Of roles. Not only do individual firms vary in their approach to each role, depending on their own structure, objectives and culture, but market trends shift too, meaning that even the terminology can feel difficult to pin down.

With that in mind, we’re sharing our insights into the different leadership roles across business services functions and how firms tend to approach them in terms of their titles and remits.

Chief vs Director

Recent years have seen many more firms appointing standalone Chief Executive Officers (CEOs) and Chief Operating Officers (COOs). Below those positions, there has also been a shift, with the Director title (HR Director, Finance Director) increasingly giving way to Chief (Chief Marketing Officer, Chief Financial Officer), with many firms wondering what, if any, difference there is between the two.

In general, Chief title implies a role that goes beyond the function to encompass a firm wide leadership remit. Director titles are often more specific to directing the strategies and projects of that particular team. While not applicable to all firms, the move to Chief has become more common in leadership recruitment.

One key change has been the profile of business services leaders. Where a decade ago business services leaders would report into a board, today’s leaders sit on the board themselves.

They are positioned at the heart of a firm, core to decision-making and strategy. In a world of constant change, they are defining and implementing transformation programmes. Often, these leading roles come with a Chief title.

There are some functions where the Chief title is more common, such as finance, technology and HR/People. However, regardless of title, all functions are essentially moving in the same direction. Strategic thinking, operational expertise and effective people management are all key traits for the future.

So does a title matter? Well, yes, up to a point.

As firms increasingly look outside legal for talent, a Chief title more accurately reflects the roles that business services leaders now play. We also know that a job that has the Chief title in it is likely to attract more candidates looking for a more expansive job role.

The CEO and COO

The CEO position typically replaces the traditional Managing Partner role, allowing a business expert, rather than a lawyer, to determine and steer a firm’s strategic direction. This frees up senior lawyers to maintain their fee-earning practices without the distraction of management and operations.

In law, the CEO role has tended to be more popular among smaller firms that benefit from the fresh insights brought in by business expertise. Larger firms have been more likely to stick to traditional Managing Partner/Senior Partner structures.

The COO role, however, has taken off, with a steady increase in their number among the Top 50 UK law firms. Totum research shows that 62% of Top 50 UK firms have a COO, with just under a third (32%) of these being female.

This number reflects the significant growth firms have experienced in recent years – and the impossibility of the Managing Partner handling operations, strategy and fee earning alone.

Allowing the Managing Partner to work alongside a COO – who takes on internal operations alongside selected reporting lines – has enabled firms to become far more efficient and effective.

One change to note is that the background of COOs is evolving to reflect the needs of individual firms. Previously, COOs would come almost exclusively from a finance background. However, firms are increasingly appointing a COO role alongside a CFO position, freeing COOs from financial responsibilities and allowing them to bring new expertise to the table.

Consequently, firms are now hiring and promoting COOs with HR, marketing, business development and IT backgrounds.

This is also a role where the chemistry with the Managing Partner is particularly key. It is vital that the Managing Partner and COO work effectively together, complementing each other’s skills and expertise.

Individual firms have their own approach to a COO’s reporting lines, with no obvious similarities in how firms choose who should report into the COO. Much depends on existing structures and the culture and personality of the firm in question.

That’s why it’s important for firms to tailor their approach to recruiting these senior executive roles. Those that have a keen sense of their firm’s direction of travel, are in tune with their existing leadership team’s capabilities and personalities, and know what areas need investment or additional focus, are typically well placed to source the right talent at this highest level.

To discuss your firm’s next leadership role or for any other leadership enquiries, contact either [email protected] or [email protected]