In January, Stoel Rives promoted James E. Torgerson to firm-wide managing partner, making him the first Alaska-based managing partner of a major law firm in U.S. History.  Torgerson moved to Alaska right after college, saying, “I thought it was such a spacious, beautiful place.”  He was right; the view from his office includes Mt. Denali 125 miles to the north, Beluga Whales swimming past in the summer, and the Coastal Trail which stretches nine miles up the shore offering glimpses of moose, eagles and the occasional Grizzly Bear.  

If this sounds distracting, it hasn’t been overly so for Torgerson.  He joined the firm as a founder and managing partner of the Anchorage office in 2008. Torgerson has helped to grow the Stoel Rives Anchorage office, making it one of the leading law firms in Alaska.  Under his leadership, the office expanded to 15 attorneys representing a large number of Alaska Native companies in the state.  Torgerson says, “What I didn’t know when I moved to Alaska was that it is also a place of great opportunity, including for newcomers. The best part about living in Alaska has been the chance to be part of and contribute to our community here.”

Torgerson looks forward to tackling the challenges facing big law firms in today’s ultra-competitive environment.  He says, “responding to the [challenges] provides extraordinary opportunities to more closely align Stole Rives’ interests with those of our clients'. This includes a continued focus on efficient legal service, diversity, attracting top legal talent and being a true strategic partner to our clients.”  Torgerson’s perspective seeks to combine an attitude of embracing new technologies to realign legal services to clients’ needs with a respect for the tradition of law firms that have paved the way for years of success.  

Below is a recap of an exchange between the National Law Review and Torgerson on some of the challenges facing law firm leadership.

What do you see as the biggest challenge facing law firms today?

In my judgment, the biggest challenge facing big law firms is that they were designed for a different time. They were designed for a market in which clients didn’t have the range of non-law firm service providers available to them, nor did they have today’s depth of in-house resources. Instead, today’s big law firm clients have a wealth of resources, market power and evolved expectations of what our legal service should look like.

The challenge, then, is how to transform deeply respected, very successful – and conservative – institutions so they can thrive in the current environment, while at the same time honoring the traditions and culture that bind them together.

In your view, what are some ways law firms need to change to adapt to adjust to the challenges facing the industry?

Big law firms need to create better client alignment in order to adapt and adjust to our changing legal industry. This means understanding deeply and well what our clients need from their counsel to succeed. That understanding begins by actively asking our clients those questions and by actively listening to what they say: but we can’t end there. Law firms need to take responsibility for identifying and developing innovative solutions – particularly in the manner in which we provide our services. Then we need to invest accordingly. Some of those investments will be in better systems for providing services, such as legal project management and stronger knowledge management. Some of those investments should be in training and developing industry expertise.

Law firms that work hand-in-hand with and implement solutions that will work for our clients can capitalize on industry challenges not just to survive, but to thrive.

Many law firms can be “low trust environments,” in your role, how do you build trust? What actions do you take to build confidence in your role and the executive committee? How do you build trust among the firm’s attorneys?

I focus on three things: listening, responding, and keeping promises. In my experience, people – whether or not they are attorneys – are unlikely to trust in leadership if they do not believe they have been or will be heard. That’s why I met with lawyers and staff around the firm before I began my term as Managing Partner. It also is why we are looking for opportunities to welcome junior members of the firm into more visible roles. Giving someone a voice in the operations of the firm demonstrates that we value their opinion.

Second, we have to respond to peoples’ concerns to show them they have been heard. Actions matter in building trust. That said, the importance of internal communication cannot be overstated. Management needs to communicate clearly, concisely, and consistently.

Third, we have to keep our promises. If we say we are going to focus on the business of law, which we have said, we need to demonstrate that commitment by developing training to educate everyone at the firm on how they can play a role in shaping our business.

How do you develop a long-range view for the firm, when the nature of individual attorney compensation is based on the billable hour?

We try to focus simultaneously on the immediate actions we need to take in order to respond to client needs and expectations, whether that is a new alternative fee arrangement or a different way of providing services. At the same time, we must remind firm members of the long-term legacy of which we are both the beneficiaries and caretakers. Without our long history of success, we wouldn’t now be an institution that could provide our clients with great service. But if we don’t continue investing in ourselves, we won’t be able to carry that legacy forward indefinitely.

How do you keep initiatives moving forward when lawyers are often described “professional skeptics” and conditioned to find ways don’t work?

Change is difficult, and implementing change successfully requires finesse, respect, and persistence. We know that we have to set reasonable goals and be realistic about what can be accomplished and in what timeframe. The critical component of success, however, lies in recruiting supporters from across all levels and departments within the organization. There often will be some skeptics, so leaders need to identify those who believe in the change and then work with them to move the organization toward the goal. Once the early adopters report on the benefits of the change, it is easier to persuade others to also participate.

Any suggestions for attorneys who work in remote offices on how to stay connected?

Today’s technology makes location nearly irrelevant for day-to-day work. Checking email from the road, sharing documents over secure cloud-based file services, holding meetings by video conference, using applications such as Skype for Business or Slack to communicate internally – all of these things enable us to work no matter where we are.

At the same time, human connection still is an important ingredient in business success. Picking up the telephone, traveling to visit a client in person, or scheduling a visit to another of your firm’s offices remains critical. It also may have more impact than ever before – as human connection in day–to-day business shrinks, those who take the time to make those personal connections will benefit themselves.