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Volume 12 Issue 2
Otherwise engaged
Regardless of your political persuasion, one of the biggest stories surrounding the recent Europe-wide elections was, in fact, how small they turned out to be.
With no transformational force of ‘Obamania’ to sweep them along on this particular ride; with the UK electorate apparently sufficiently resenting its politicians their various (some would say frivolous!) trappings of state; and frankly − however unpalatably − with other matters on their minds, the
voters of Europe chose to stay away − or at work. Across the continent turnout was a remarkable record low of just over 43 per cent. A weary ‘No, we can’t ...’ might describe the worrying mood.
Here in the UK, the political class lamented in unison. It was a “desperately depressing” state of affairs, according to Conservative leader David Cameron.
Deputy Labour Leader Harriet Harman confessed to the BBC Radio 4 Today programme to being “dismayed” at the scale of her party’s rejection − predictably citing “the expenses problem” as one of the main challenges the government now needed to address as a matter of urgency.
“There has been turbulence, undoubtedly, but our reaction needs to be, and will be, not to turn in ourselves,” she explained.
Some, no doubt, will argue that this is precisely what the government has been doing of late − energetically debating the issues of its own conduct, compliance, supervision, recruitment and latterly leadership, in the wake of an expenses furore that had already incensed many beyond belief. Moreover, some have clearly been trying to build up ‘buy in’ for a dramatic change in overall management − maybe even strategy.
Now, having already turned inwards in their own spheres, and with personal recession troubles front of mind, the majority of clients of this enterprise we call democracy − those the MPs are elected ‘to serve’ after all − seem either to have taken their business elsewhere or dispensed with it altogether.
Faced with unprecedented pressures, an automatic ‘turning in’ can perhaps all too easily become a tactic in times of economic difficulty. But in battening down the hatches, cutting the costs and exclusively focusing on ‘fundamentals’, the ultimate price to be paid can be engagement − ironically stifling the very growth it is designed to protect.
Indeed, up a level in the scheme of business, and at the start of the first-ever ‘World Trade Week UK’, we also see business secretary Lord Mandelson warning against resorting to protectionism in global trade − which severs connections, once again, by turning in.
“Calls for protection from imports are always made most loudly during times of recession,” he declared at the conference. “Now more than ever, we need to stand firm and defend open trade.”
If any industry can rightly be called a ‘people business’, it is the law. I have lost count of the number of law firm leaders who have told me that in interviews over the years. And while the profits are clearly shown to be falling this year-end, an investment in those people shouldn’t evaporate entirely when a survival mentality, perhaps inevitably, kicks in.
Numerous surveys, and no fewer anecdotes, suggest that marketing, HR and training are some of the first areas to feel the squeeze as the budgets get rebalanced in a downturn, but engagement doesn’t necessarily have to mean expensive. It can simply be a case of openness − reaching out rather than turning in.
Simply put, however it manages to survive, the pace of growth when the economy recovers will hinge on how well a business has stayed connected and taken its most valuable people with it.
That means its clients and employees alike.
Richard Brent, Editor
Features
Getting better (at getting better)?
As the climate of uncertainty continues, law firms may wish to consider whether their investment in management information in recent years has paid a clear dividend.
Considering the alternatives
Beyond the theoretical contemplation of more creative billing structures, what follows is an attempt at a more tangible analysis of some alternative fee arrangements for law firms.
Advances in e-billing
Law firms can derive internal benefits from an e-billing investment, as well as offering clients greater cost transparency.
Called to account
Risk management needs be a powerful presence in all four of the key stages of a matters financial lifetime: budgeting, matter opening, work in progress and accounts receivable.
Paying your way
Any adjustment in remuneration policy is likely to be one of the thornier issues for management to grapple with in response to the economic downturn.
Financing change
Sound financial management should be a strategic priority for any business as the unpredictable economic climate continues. For any law firm planning to attract external investment, however, the bar may well need to be raised much further.
Financing change
Sound financial management should be a strategic priority for any business as the unpredictable economic climate continues. For any law firm planning to attract external investment, however, the bar may well need to be raised much further.
Pressure points
The past years economic woes have refocused management attention on embedding and fine-tuning the precision and flow of key business operations. Attention to detail and a clear long-term plan are the principal requirements when probing a firms productivity levels.
denotes premium content | Jul 3 2009 




