People management in law firms

Jeannine Rupp was recently appointed director of professional and personal-life integration at Kirkpatrick & Lockhart LLP in New York. It is a post that is likely to be greeted with a mixed response; some will roll their eyes at a title that sounds like a PR stunt that has little bearing on the real world, while others will recognise that such work/life balance initiatives are becoming important differentiators for firms struggling for competitive advantage.

It is not just Kirkpatrick & Lockhart that has put the working environment at the top of its agenda. It is a topic that has recurred time and again in recent conversations with law firms both large and small. Eversheds has made ‘being a great place to work’ part of its vision and values, with managing partner David Gray telling me that he is desperate for his people to be really proud of the firm. DLA is also rightly pleased with its regular place (four years running) in the ‘100 best companies to work for’ list, compiled by The Sunday Times.

Reading this month’s case study from Shoosmiths, it is clear just how far firms are prepared to go to satisfy employees. HR director Louise Hadland talks about developing a reward culture at every level of the firm. As well as compiling a tempting benefits package, employees of Shoosmiths are presented with opportunities for working from home or part-time, as well as sabbaticals and flexible holidays. It seems like a far cry from merely providing a competitive pay package, but such schemes reflect a changing environment, where smaller/regional firms look to compete with the largest City practices for some of the best talent in the field.

And in recent times, there are signs that such efforts are not going to waste. Shoosmiths published a profit hike of over 65 per cent for the 2003-2004 financial year, and Eversheds and DLA are well known to be pushing the boundaries at the top of the law-firm league tables. That all these firms are also seriously striving to implement policies to recruit the best and improve retention rates appears an important indication of the rising importance of HR issues in a successful business strategy.

Nevertheless, reports still suggest that many firms continue to woefully underestimate the crucial role of HR in maintaining and improving profitability. Underperformance continues to be a serious problem as lawyers cum managers, with little training to support their people-management efforts, struggle to confront fee earners with a history of poor performance. Indeed, firms are still more likely to ignore a problem employee, especially if it is a partner, hoping that it will somehow sort itself out. Some years down the line and the firm still has the problem, except that it has now multiplied from the individual to a firm-wide phenomenon. After all, if management appears to accept poor behaviour as satisfactory, then it can hardly be surprising if that message is conveyed throughout the business.

In a competitive market, differentiation is difficult, especially among law firms that essentially offer the same services. An effective people-management strategy and a good working environment can, however, create a reputation that will attract the best talent, as well as create high retention rates and a culture where people are working to the best of their abilities. For the overall success of the business, such people strategies can no longer be ignored.

Caroline Poynton
Editor

Features

Reward and conquer: When pay is not enough Free
Life is far from easy for a law-firm HR director, especially in today’s competitive environment where motivating staff and driving performance requires much more than a competitive pay policy and good benefit package. HR director Louise Hadland explains the people-management strategy at Shoosmiths and why she believes the firm’s reward culture is a step in the right direction.

To be the best: Trends in training in an international law firm Free
In a global playing field, today’s lawyers face huge pressures to deliver expertise seamlessly across different locations, offices and cultures. And clients continue to complain that it is hard to find a firm that is truly consistent in its service standards. Suzanne Fine, head of training at Lovells, assesses the evolving role for training in law firms and the particular challenges of providing support on an international scale.

An opportunity for change Free
Technology has opened the door for law firms, modernising working practices and enabling business flexibility, while giving lawyers more control over their workload and client dealings. But, with seemingly endless launches of must-have new applications and systems, firms could easily blow their budgets for little return on their investment. In an attempt to untangle this complex landscape, Caroline Poynton goes behind the scenes at Aderant (formerly Solution 6) to ask vice president of sales Bryan Roberts to explain his views on a changing world.

Covering all bases: Are law firms ready for interim management? Free
Simon Slater recently moved from his position as director of strategic development at Taylor Wessing to set up a consultancy division within First Counsel that will offer interim-management services to law firms. Caroline Poynton asks him about the challenges of HR in law firms and whether firms are really ready to embrace the project-management skills of an interim manager.

Hiring and firing: How recruitment can damage your wealth Free
The role of HR directors in recruitment and retention is obvious, but their relevance to risk management may be less clear. Frank Maher, partner at Legal Risk, reveals some worrying issues surrounding the dangers of recruitment and succession that will make the worth of a good HR director obvious to all.

Down to risk business Free
Regulatory pressures have forced firms to think about risk like never before, but that far from means that risk-management strategies have improved. Julia Graham, director of risk at DLA, argues that firms need to think beyond regulatory compliance to embrace enterprise-wide, business-continuity management, a discipline that will enable firms to face their tangible and intangible risks.

Regulars

Fiveminuteswith... Free
Last month, Managing Partner reported on the appointment of Jeannine Rupp as director of professional and personal-life integration at Kirkpatrick & Lockhart LLP. As one of the first of its kind in the legal profession, the position reveals much about the changing attitudes in firms to their working culture. Caroline Poynton finds out more about the position and what it means for internal change and productivity.

Thought leader Free
Sherwood PSF Consulting recently undertook research into training strategies in law firms. The results were categorised into three levels, as described below.

Personal profile: Making the grade Free
It is nearly two years since David Gray succeeded David Ansbro as managing partner of Eversheds. In that time, he has had a lot to live up to in continuing the firm’s transformation from a regional to international business operation. Caroline Poynton finds out what Gray has made of the job so far and how he’s likely to impact the future development of a firm that has become something of a trendsetter in the legal marketplace.