Why Every Lawyer Needs Business Skills — But Not Necessarily an MBA

A lawyer with an MBA may have more credibility in the C-suite, but there are other ways for attorneys to develop necessary business skills 

Few legal jobs require a business degree, especially in what has recently become a candidate’s hiring market. But MBAs are valuable, and their allure persists for some lawyers. 

For those seeking in-house legal positions, a business degree on your resume can be a strong differentiator. And while it’s unclear if the salaries of attorneys with MBAs are higher than their JD-only counterparts (some evidence suggests they’re not), a solid business foundation is essential for those aspiring to leadership roles in firms or companies.   

Of course, business knowledge isn’t gained exclusively in MBA programs. Here are some reasons why every lawyer should be developing their business acumen, regardless of whether that effort involves another degree.

Changing roles and responsibilities

Increasingly, company leaders think of their in-house lawyers as more than just legal advisors. A General Counsel or Chief Legal Officer, in particular, is now more apt to be considered a vital member of a CEO's team, a trusted business strategist, an interdisciplinary problem-solver, and a liaison to the company’s board. 

Companies have been moving more legal functions in-house, putting additional demands on their legal teams. And financial fluency is necessary to run a legal department as a value-added contribution to the organization and not a cost center. In-house lawyers benefit from familiarity with economic market trends, crisis management skills, analytics, cybersecurity, and microeconomics — all subjects covered in MBA programs. 

Within law firms, there has also been a growing focus on “the business of law” and the need to drive profitability, particularly during lean times. Financial literacy is expected of all associates, and advanced business skills can help set new attorneys apart from their peers. In certain practice areas, having team members with business backgrounds can be attractive to clients and win accounts. And for lawyers with aspirations that extend beyond partnership to firm management or private practice, business knowledge aids in the quest. 

The everyday practice of law requires practical business skills to manage the financial details of legal proceedings and attract and secure new clients. Therefore, all lawyers should be able to do more with numbers than just account for their billable hours. 

Both sides of the joint-degree question

In our hyper-networked, super-regulated world, the lines between business and law often blur. Thus, dual-degree programs have grown more popular in the past decade, with most top-tier schools offering joint JD-MBA offerings. The thinking is that a combined degree gives graduates a strong foundation for careers in either world. 

That said, the two-degree club remains relatively small. Most programs are small with highly selective admissions criteria.

Sources outside of law or business schools tend to downplay the significance and usefulness of the joint JD-MBA. The time commitment is intense, as is the expense. Even accelerated programs may not make sense financially because of the opportunity cost of missing at least a year in the workforce while attending classes full-time. Based on anecdotal reports of joint degree holders’ salaries, the return on investment could be disappointing.  

Some joint degree holders may find their hard-won education underutilized, especially if pursuing an area of law that doesn’t regularly call for extensive business knowledge.  

However: the combined JD-MBA is a hardcore boot camp for instilling discipline and subject matter expertise. It will force its earner to prioritize their time; read, write, and conduct unique research efficiently; and learn how to collaborate with team members. All those skills are required of successful lawyers and business executives.

Exposure to the legal and business worlds also provides insight into the proprietary lingo and cultures of both. And while pursuing two degrees, a law/business student can cultivate a double network of potentially helpful contacts, perhaps doubling their amount of job offers.

Alternatives to formal business degree programs

Pursuing continuing education is wise in every case, but intensive programs are a matter of personal choice and economics. For students contemplating law school, considering a dual degree program may make sense, especially when packaged as a three-year option. Those who already have a JD could find the decision more complex, however. While it may be enticing to add three more letters to a title and unlock a new range of skills, pursuing an MBA is a time-intensive and costly undertaking. It may not offer a sufficient ROI in some cases.

Fortunately, there are numerous ways to gain business skills and the knowledge associated with an MBA without enrolling in a traditional, full-time program. Many schools offer part-time executive MBA options, one-year programs, and online-only classes for certifications or credits. 

Expertise in basic business fundamentals adds depth to a lawyer’s resume and could make attaining key career milestones easier. Taking a strategic view of your career can help you determine where your education and skills could use the improvement that gets you closer to your goals. 

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