Celebrity Business Leaders Like Brad Karp - Probably Necessary

The tsk-tsking has started about the risk of having a leader being the brand - and a blockbuster one - for the business. Specifically Law.com runs an earnest article headlined:

"Lessons from Paul Weiss: Can Law Firms Afford a Star Culture?"  

And, sure, research such as by Jeffrey Lovelance in the Academy of Management documents that a celebrity leader can result in negative results for the organization. That is especially the situation when there are internal and/or external changes.

Most who follow the history of business know that. When competition entered the auto market Henry Ford's rigidities almost collapsed the company. When returning to the CEO job at Disney celebrity player Bob Iger stuck to being an old-line media guy. The stock plummeted. The world had changed. In addition, the charm offensive was falling flat. Eventually Iger changed with the times. As AI becomes a crowded playing field Sam Altman's dominant presence at OpenAI could become a liability. Some of those who count question his decisions.

Those snippets about the star kind of leadership, however, are counteracted with the realities that it took a celebrity leader to "save" the business. Those include Steve Jobs' return to Apple, Lee Iacocca's turnaround of Chrysler and Lou Gerstner's overhaul of the IBM culture. 

Had Brad Karp, new chair of Paul, Weiss in 2008, not used his already high profile and skills at persuasion the law firm might have faded away. He sized up that to remain a presence in the New York City market Paul, Weiss had to extend its footprint beyond litigation to transactional practices. He also got it, as he hammers in this Bloomberg Law interview, that growth required having star talent on the marquee. He made it his business to recruit, retain and motivate the top brandnames in their categories. Without that, he warned, a law firm could collapse. 

From 2008 through 2024, Paul Weiss' Profits Per Equity Partner increased 183%.

The reputational buzzsaw Karp has run into because of the Epstein Files likely will not negatively impact the business of the firm. There are too many stars who bring in the work. Clients come to a law firm not because of that entity's brand but to hire the specialized talent of those with heavyweight track records.

A cultural shakeup? Of course. Scott Barshay is very different kind of leader. Nose to the grindstone. No seeming charm. Unlike Karp who reached outward to thought leadership he might stick to the knitting. 

Some partners might leave. Some young talent, given multiple offers, might choose to go elsewhere. But Barshay's expertise - M&A - is entering a boom. Demand will probably be brisk. Partners will likely enjoy increased Profits. Barshay has already orchestrated a major success: poaching Sam Wheeler, a major name, from Kirkland & Ellis, to set up a Houston office. That's where it has to be in energy.

Karp? This weekend he was out and about at the Super Bowl, where the ambitious can attract new business and nurture alliances with the influential. Skilled in managing a public presence he knows not to hide. His contract at Paul, Weiss will be up in May 2028. Hopefully that means the end to his institutional identity with that law firm. He'll be 68 then, young enough to put together something very different.

In coaching, I guide clients how they must differentiate themselves. Actually, I warn: If you can't star in a field don't enter it. Business has gone binary: Stars and the expendable. Karp was and is a star. Roughed up right now reputationally. But still in the money.

Success is a mental game. Failure comes from being done in by the “committee” in your head.

Together, we liberate your thinking. Then we change your story. And, unleash success. Meanwhile, we focus on bringing in income. That puts you in a position of strength.

Intuitive Coaching. Special expertise with transitions, becoming a solopreneur and aging. Psychic/tarot readings, upon request. Complimentary consultation with Jane Genova (Text 203-468-8579, janegenova374@gmail.com). Yes, test out the chemistry. Zero risk.

Don’t give up before the miracle.

  

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