
Administration
vs.
Management

Natural allies or natural adversaries?
Theory
Administrators make the trains
run on time. Managers decide where they are going.
For the law practice planner this
distinction is more than academic. Understanding the interrelation of these
functions, especially where the firm is large enough that they are spread
across several individuals, is essential if the practice development process
or the practice development plan is to succeed.
We can view the difference between
administration and management is the distinction between creating the rules
(management) and seeing that the rules are followed (administration). The
latter implies some level of authority (including the consent of the administered)
to fulfill that function.
One way to look at the difference
between administration and management is by examining the level of risk
attendant to decisions in the exercise of respective functions. Administrative
decisions usually have short-term consequences that effect only those individuals
or circumstances immediately at hand. On the other hand, management decisions
usually have long term consequences and effect the entire firm. As an example,
apply the distinction to the firm's public relations policy. Administration
might be responsible for the language, timing and distribution of a press
release dealing with an individual attorney’s achievement. Management of
that policy impacts how the firm is positioned with those who the press
release ultimately reaches.
Traditionally, management reserves
to itself the determination of vision and mission and delegates to administrate
the task of seeing that the firm's goals are achieved. The more rapid the
rate of environmental change and the greater the amount of competition
the less effective this will be.
Practice
The smaller the firm, the more
likely the lack of precision in distinguishing these two functions. Many
firms have designated a senior staff person as "office manager"
while that person has little independent to make and execute decisions.
There is risk in maintaining a
management / administration dichotomy. Usually it is administration who
as access to important data / information. This information is only useful
before it mutates from "intelligence" to history. As an exercise
think of a word that positively describes a person who is the last to know.
In analyzing the administrative/management
aspect of your firm as part of the planning process, don't rely so much
on the job description. It is better to examine the "acceptance hierarchy".
By this we mean, who accepts the decisions made by others.
Examples:
Consider a personal injury firm where
the "model" is that every attorney has a secretary and the secretary
has discretion to schedule an appointment between a client and the attorney
upon client's request but the secretary would never decide to accept or
not accept a client presenting a new claim.
Consider that same P/I firm, with a
non attorney "triage officer" who is the first contact person
with potential new clients. If that person is an information gatherer (administrative)
who passes data gathered according to established guidelines to a decision
maker that is purely an administrative function, regardless of what the
position is called. If that person solely makes the decisions as to which
cases the firm takes they fill a management function. The gray area is
in between, where the decision is subject to review.
The point is the delegation of
"artificial authority". Where artificial authority is delegated
to a practice planner or committee, the practice development process has
a diminished chance of success.
We invite your comments by e-mail
or toll free call.
Advocates Management, Inc.
1332 South 26th Street
Manitowoc, WI 54220
Voice: (toll free)(877) ADVOCATES
Fax: (920) 684-4414
E-mail: info@advocates.com
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