Editor's Letter

IT IS with great pleasure that I am introducing my first issue as editor of Managing Partner. Clearly the legal profession is going through an exciting period of change, and I look forward to tracking developments closely in future months, with a wide range of news, views, articles and case studies designed to keep you informed.

I am certain we will be showcasing a number of success stories along the way, while the challenges facing law firms in 2006 and beyond are all too apparent. In only my second week as editor, I was delighted to attend Ark Group’s ‘Future of Legal Services’ conference (‘Facing up to the future’, p 12). The event focused on the likely effects of the Legal Services Bill when it has passed through parliament, inviting firms to consider what their response will be.

Much has been said and written about this landmark piece of legislation, with some in the legal profession likely seeing a fair amount of ‘hype’, not least coming from the media. Managing Partner will certainly attempt to provide a balanced and considered perspective, but there can be no denying that this is a hotly debated subject. Earlier this year a report from a joint committee of Lords and MPs voiced “very real concerns” about a Bill “potentially damaging to the independence of the legal profession” in its current form. Committee chairman, Lord Hunt of Wirral, called on the government to account for a number of differences between the draft Bill and the original recommendations arrived at in Sir David Clementi’s review. Moreover, as this issue goes to press the government has just responded to the committee’s concerns, agreeing in some respects, but dismissing reservations over the transparency of appointments to new regulator The Legal Services Board. The government does not consider it essential for the Lord Chief Justice to be consulted in all such appointments.

But regardless of the extent to which the legal landscape will be ‘transformed’ by this Act, firms will all need to consider their reaction. Competition will certainly step up a gear, and recent research from Capita Legal Services suggests that almost half of consumers would not be troubled using legal services provided by banks, insurers and even supermarkets – the phenomenon dubbed ‘Tesco Law’.

Our conference heard a wide range of speakers pose questions this raises for the managers of today’s firms. For example, would they embrace the draft Bill’s vision of the alternative business structure and seek to attract external investment? And, if so, would private equity or an IPO on the alternative investment market be the more likely route?

The possibilities of outsourcing should also be considered by those looking to secure a competitive edge. Indeed, this issue of Managing Partner reports how some firms are seeing real business benefits by outsourcing functions such as IT, security and even paralegal services (‘Changing attitudes to outsourcing’, p 16).

Of course, these are only a few of the issues that managers must focus on in the months ahead. I hope to be in a position to discuss them with many of you in person, and, in the meantime, I welcome your views on any subjects covered in the magazine. Please send comments or suggestions to rbrent@ark-group.com.

I hope you enjoy the issue.

Richard Brent

Editor

Features

Partnership or public company? Free
The transition from partnership to plc can be a turbulent time, radically changing the business structure, management approach and culture of the firm. But the growth opportunities make it something for them to consider.

Masterclass: Effective buying for law firms - getting more for your money Free
There are only a limited number of options open to law firms looking to improve their profitability. They can sell more, charge more, or spend less on support services. But perhaps some firms simply need to get better at buying.

Book review: New Horizons for Lawyers and Legal Services Providers Free
Mapping the changing profile of the legal landscape to 2015

All points East Free
The finance world’s relationship with the Middle East has changed dramatically over the past ten years. With booming property sectors, a new stock exchange and increasing interest in private-equity funds, there are also even more opportunities for law firms in the region.

Case study: Winning work from the US Free
Mason Hayes + Curran realised that attracting and securing business from the US to Ireland would demand a new strategic approach. They learnt a number of lessons about communicating with potential US clients.

Preparing for the worst Free
With security incidents and technology failures increasingly hitting the headlines, the corporate value of a dependable disaster recovery and business-continuity plan should be clear.

Event report: Facing up to the future Free
The impending Legal Services Act is set to dramatically change the current legal landscape in the UK, heralding an increase in competition and new opportunities arising from the possibility of external ownership. But how will individual firms decide the best approach to take?

Changing attitudes to outsourcing Free
Law firms have traditionally kept their distance from outsourcing functions, perhaps dismissing the idea as somehow beneath them. It can save time as well as money, though, and with clients increasingly looking for better business skills, many firms are already realising the benefits.

Thought Leader Free
By Paul Gilbert, chief executive of LBC Wise Counsel