Private equity is finding its way into the legal industry, and we’re hearing more about management services organizations (MSOs). Separate entities that provide law firms with business and administrative services, MSOs are creating another model for how firms manage business functions.

While this is still evolving in the legal industry, private equity is bringing a new level of scrutiny to the business side of law. Firms are taking a closer look at how their business functions operate, where they create value, and what can be scaled, automated, centralized or outsourced.

For professionals building careers on the business side of law, this shift is worth paying attention to. It puts a greater focus on the value business functions bring to a law firm and the role business professionals play in helping firms grow, operate more efficiently and make better decisions.

If you’re building a career on the business side of a law firm, here are some ways to position yourself for what’s ahead:

Understand how your role drives revenue and profitability. Know how your expertise helps bring in business, strengthen client relationships, improve lawyer productivity, manage costs, or otherwise contribute to the firm’s financial performance.

Develop a broader understanding of the business of law. Functional expertise is important, but so is understanding how the firm operates as a whole. Learn about practices, clients, financial drivers, technology, talent, and strategic priorities. The more you understand how the pieces fit together, the more valuable you become.

Become a problem-solver, not a taskmaster. Partners and firm leaders need business professionals who can spot issues and opportunities, develop solutions, and drive results. Look for ways to move beyond executing tasks and toward helping the firm make strong decisions.

Stay close to the relationship side of the business. Business development, practice development, client relations, innovation and other roles that directly support growth can provide an important connection to the firm’s lawyers, clients, and strategic priorities.

Build credibility with partners and leadership. The strongest business professionals understand the practices they support and become trusted advisers to the lawyers running those practices. Know their business, anticipate their needs, and bring ideas to the table.

Keep evolving. Technology, AI, outsourcing, and new business models will continue to change how law firms operate. The goal isn’t to protect yourself from change. It’s to develop the skills and judgment that make you increasingly valuable as the business changes.

Ultimately, I believe that the business of law will continue to be built on relationships. Just as clients value relationships with their lawyers, lawyers value business professionals who understand their practices, their clients, and what it takes to grow. 

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