Strategic practice management is the differentiator between firms that simply coordinate work and those that scale strategy, protect margin, and outperform competitors. Most firms are managing their practices in some way or another. Some have a loose collection of practice managers/admins, others rely on their practice leaders, and some have formal practice management functions. But very few are truly using their practice management resources as performance engines for their firms. For many, the discipline has quietly plateaued, focused on coordination, reporting, and gentle partner support. But the firms that are winning market share, scaling strategy, and protecting margin are doing one thing differently:

They treat strategic practice management as the operating system of the practice, not a support function.

If you’re a Managing Partner or Practice Group Leader, the question is no longer “Do we have practice managers?”
It’s: “Are we empowering them to drive outcomes or just asking them to keep the trains running?”

 

The Strategy–Execution Gap Lives in the Middle

Firms don’t fail because of bad strategy. They fail because execution gets stuck between vision and reality. That middle layer, where client work is priced, people are deployed, resources are allocated, and performance is measured, is exactly where strategic practice management lives.

When the function is underpowered, you see it in all the usual places:

• Practice plans that never make it off the page
• Partner ambitions disconnected from firm priorities
• Pricing decisions made in silos
• Talent stretched thin or underutilized
• Tools procured but not adopted
• Client and profitability data scattered across systems

A strong practice management function integrates the business and the work of the practice, translating firm strategy into daily operations at the practice level. If that layer isn’t elevated, your strategy simply won’t scale.

 

From “Helpful” to High-Impact

Many firms unintentionally limit the role by casting practice managers as “admin+, project support, or partner aides.” But the firms getting leverage from the role do three things differently:

Give Them a Commercial Mandate

Practice managers should be empowered to drive profitability, not just process. That includes:

• Pricing models and margin improvement
• Smarter staffing and resource planning
• Matter performance tracking
• Fee earner leverage and utilization

Put Them at the Strategy Table

When practice managers are treated as implementers rather than co-architects, even great strategies lose momentum. In top-performing firms, they:

• Shape practice-level plans with partners
• Connect practice goals to firm financial targets
• Align talent, operations, and growth priorities
• Own follow-through and measurement

Leverage Their Knowledge of the Firm

Your practice managers should be the connective tissue across finance, HR, marketing, tech, knowledge, and client teams, not another node in the maze.

They don’t replace partners. They make partners scalable.

 

The ROI Is Hiding in Plain Sight

Empowering the function pays off quickly. Firms that invest in strategic practice management see measurable gains:

• Over 50% of firms surveyed have changed pricing models in the past three years to meet client expectations and protect margins, yet most lack the operational leadership to make those models stick.¹
• Operational improvements can reduce overhead by up to 20%, particularly when supported by data-driven cost control and staffing optimization.²
• 67% of firms now use legal analytics to win business, but only when someone owns the process of turning insights into pursuit strategies.³

Practice management is where these initiatives either accelerate or stall.

 

What MPs and PGLs Need to Do Now

If your firm already has the function, you don’t need to rebuild. You need to reallocate ambition:

• Redefine the role around commercial impact, not coordination
• Give practice managers access to financial, client, and performance data
• Involve them early in strategic planning and pricing discussions
• Task them with implementation, not documentation
• Make them accountable for outcomes tied to growth, margin, and execution

The change isn’t structural. It’s behavioral and cultural. And it starts at the leadership level.

 

The Takeaway

Strategic practice management is your firm’s operating system. If it’s underpowered, your strategy won’t scale.

Your firm already pays for the function. The real question is whether it’s powering anything beyond meetings and management reports.

If you want practices that grow, price smartly, deploy people effectively, and deliver consistently, don’t add headcount. Elevate the function you already have.

 

Sources

1. PwC, 2013 Global Pricing Survey: The Power of Pricing
2. Forbes, 20 Strategies for Managing Operational Costs and Driving Growth
3. Association of Legal Administrators, Legal Management, The Numbers Don’t Lie – Legal Analytics Are Winning

 

By Jay Russell