Have you ever wondered who a managing partner is, and what they do?
This article explains the role of a managing partner, what qualities they should possess and how to become one.
What is a Managing partner
This is a senior, authoritative figure in the hierarchy of a Limited Liability Company (LLC) or a Limited Liability Partnership (LLP).
The role of managing partner exists only in a partnership or an LLC.
Both LLP and LLCs are companies or firms formed through partnerships.
A managing partner must be a partner in the case of an LLP.
In an LLC, a managing partner is the person who is also the owner of the business.
Therefore, a managing partner is an executive leadership role.
Role of a manging partner
Keeper and shaper of a firm’s culture.
This means that a managing partner should be the chief role model.
Some of the qualities to achieve this fete include fairness and consistency in the enforcement of policy
Provider of leadership and establishes a direction
This means that it is the task of a managing partner to develop a vision and strategies to achieve a firm’s vision.
Furthermore, this role includes setting the long-term direction of the firm, which includes hiring and firing decisions and the setting of policy.
Alignment and Commitment
This is done by ensuring alignment and effective mentoring of people.
The managing partner should listen to other partners’ input and opinions.
Therefore, a managing partner must have strong communication and effective listening skills.
A managing partner should be accountable for effecting change and execution of a firm’s strategies through the activities and priories of the board.
Moreover, effective executions require a tough stance that a managing partner should be able to hold people accountable by working with them to ensure that things are done in the right way.
Keeping people in the loop
Ensuring that there is no communication breakdown by holding briefs with partners, associates, and staff.
This role includes ensuring that employees feel secure and motivated by giving them a chance to participate in governance.
Chief role model
A manager should be a mentor and coach of the firm’s employees.
The managing partner should develop strategies that make the firm’s employees motivated.
These strategies include recognizing employees and celebrating them.
In addition, ensuring policies for promotions, such as from attorney to partner, are followed through effectively.
Qualities of a Managing Partner
To effectively accomplish their mandates, managing partners should have the following qualities.
Broad authority to make decisions relating to the administration of the firm is key in the management of a firm.
As a supervisor, a managing partner should follow up with the head of the administrative structures of a firm
Administrative structures ensure that partners and employees are assigned managerial and administrative responsibilities.
An important skill in management is the ability to delegate responsibilities than working alone.
Duties of a managing partner
A managing partner serves the following role
- Ensuring implementation of policies that have been established by the firm.
- Implementing decisions reached by the management committee or the executive committee or the board.
- Charing and serving on committees.
- Monitor standing and ad hoc committees. this duty includes requiring periodic reports from these committees and reconstituting committees if they fail to perform duties.
- Management of conflict.
- Acts as the firm representative in numerous issues externally.
- Reporting findings and reports to the executive committee and partners of the firm..
Contents of a Managing partner agreement
This is a partnership agreement that has been written between business partners or LLC members.
This agreement is necessary as it helps to outline the engagement between the company and the managing partners.
The agreement contains the following information:
- Capital contributions. Includes details on how much capital each partner has contributed.
- Equity agreements. Details how much of the company each partner owns
- Operating details. Specifies the responsibilities of each partner.
- Dispute Settlement. Outlines how disputes are resolved by a company.
- New Partners. Contains the details and process of if, when, and how someone can become an owner.
- Decision rights. Highlights the role of the managing partner, which includes stating if decisions require consensus.
- Exit agreement. An outline of succession plans including when a partner leaves the partnership.
- Compensation agreement. Detailed information on how much each partner will be paid.
How to become a managing partner
For attorneys who want to become managing partners, they need to have the following professional qualifications
- Have a bachelor’s degree in a related field such as business or finance.
- Have between two-four years of experience in related fields.
- Be a partner of the firm in case of an LLP or be an owner in case of an LLC.
- Have soft skills such as leadership skills, management skills, and problem solving skills
- Take an average of one to two years of job training.
- Acquire a managing partner certification. Accreditation enables one to earn more.
What other skills should a managing partner have?
Understand the inner workings of the firm. This requires a the manager to become an expert in all administrative aspects of the firm.
Have a business acumen. A manager should be able to bring in clients to the firm.
Ability to Network. It is important for a managing partner to have skills that help manage and build professional networks among peers, staff, and other stakeholders.
Innovation. A managing partner should be innovative enough to bring in change in an organization. An effective managing partner ensures that the company adopts measures that will ensure stopping of waste.
Just like a Chief Executive Officer (CEO), a managing partner is involved in the day-to-day running of a company.
Furthermore, this role is the highest in hierarchy in both an LLP and an LLC