denotes premium content | Oct 8 2008 Managing Partner archive
Volume 5 Issue 4
I have lost count of the number of times I have heard the phrase, the competitive legal landscape. Is it really more competitive than ever or is this just the typical marketing lingo of an editor hoping to sell more magazines? Quickly brushing aside the note of cynicism, there is little doubt of the increasing number of pressures facing the modern firm. Not only is there an uncertain economic environment demanding a greater drive for profit, but deregulation looms across the horizon, multi-disciplinary partnerships seem ever more likely and technology advances are forcing lawyers to re-evaluate the very core of their legal service delivery. Perhaps for the first time in the long history of the legal profession, lawyers can no longer predict their future and where law firms will be in five years time could be anybody’s guess.
It comes as little surprise, therefore, that law firm management is facing its biggest overhaul in years. Ring up any law firm and there’ll be someone who will be happy to discuss their marketing and branding efforts, their business development strategy and the client relationship techniques they have employed to deliver a ‘top-quality service’. However, the really significant changes are the core values facing scrutiny and change as large numbers of law firms adopt a corporate management style, casting off the traditions of the partnership model and incorporating the commercial incentives and strategies reflected in many of their clients’ businesses.
A growing number of law firms are recognising that the traditional partnership is not the easiest or most effective method for running a successful legal practice. Many firms are beginning to recognise the importance of employing board-room level staff with non-legal expertise and many a Managing Partner article resoundingly calls for differentiation between the effective lawyer and the effective manager. In offering a wide variety of services and working to develop business partnerships with clients, law firms are challenging the very nature of the traditional detached lawyer by engaging an operational strategy that is closely matched by that of its clients.
The past year has seen some of the largest law firms reform their management structures introducing into their midst such titles as chief executive and managing director. They are not alone, however, as even the smaller practices such as the four-partner firm, Blair Cadell, begin to follow the trend in a bid to become more competitive and profitable.
Whether for good or ill, the legal profession is now firmly part of the business landscape. Lawyers can no longer rest on the laurels of their professional status and their firms will be just as vulnerable to market conditions as any other business.
If we accept that the legal world is a competitive marketplace, then the law firm that can differentiate itself as the more modern and open business will be the firm that wins clients and makes money. For any other firm wishing to stay in the game, the path will be paved by the success of their competitors. All they need to do is follow.
Caroline Poynton, Editor
Features
Knowledge management survey 2002: the results...
Managing Partner and Perceptive Technology have collaborated to bring you this definitive guide to KM and its future in law firms. If you are a subscriber to Managing Partner, click on the attachment for a copy of the results. If you do not currently subscribe but would like further information on the survey results, please contact Caroline Poynton at cpoynton@ark-group.com.
Using professional sales techniques in law firms
It is well known that law firms hate the idea of ‘sales’ and will rarely consider incorporating what they perceive as sales strategies into their practice. However, Steve Jessop, a director at Quantum, uses his experiences of working with ASB Law to argue that lawyers could be missing out on a valuable lesson for business and practice development.
The managing partner's dilemma: people
Ask any managing partner what creates the greatest angst in their firm and a common reply will be people. Margaret Ford, chief executive of Good Practice Ltd, examines the problems of this sensitive area and considers what steps managing partners can take to better manage their workforce.
Assessing the evolution of the modern law firm
In the June issue of Managing Partner, Martin Street, managing director at Boyds Solicitors, examined the importance of law firm branding in developing the ethos and external perception of a law firm. In this article, Martin continues his analysis to consider how law firms must adapt their traditional hierarchy and management infrastructure if they are to remain profitable in the modern legal and business environment.
Exploring joint ventures and strategic partnerships
Surprisingly, for such a risk-averse profession, mergers continue to be a feature of law firm strategic planning with many firms seeing it as a way to enjoy successful expansion and profitability. For all the successes, however, there are many failures as the working ethos and culture of the merged firms irrevocably clash. Edward Wesemann, a partner with Edge International, assesses the objectives of the merger strategy and what alternatives might be employed to enjoy a more rewarding alliance.
Facing the age of uncertainty
The legal market is facing an era of change. Competition within the profession as well as the promise of deregulation is forcing law firms to adapt to a world where the client has the option to choose from a whole array of legal service providers. Christopher Davis, the founder of Davis & Co and chief executive of Lexfutura, discusses some of the key changes in the legal sector and their implication for the practice of law.
Adding extra dimensions to firms
In the competitive legal environment, law firms can no longer rest on their professional laurels and must look to the very heart of their business to ensure their long-term profitability. Many are looking to adapt their traditional management structure to better align with the business demands and opportunities of the corporate world.Jacquie Macdonald, head of corporate development at Blair Cadell Solicitors, assesses changing attitudes to law firm management and in particular, the effectiveness of introducing non-legal personnel to the management team.
Regulars
Manpower planning – the key to value
From October onwards, Managing Partner will feature a regular section devoted to recruitment trends across UK law firms. In this article, Kevin Cooper, a director at Longbridge International, provides an introduction to the scene, explaining the core values of HR and why it is so essential to the make-up of a successful law firm.
Innovative solutions – a law firm profile
While the uncertain economy has seen many law firms working doubly hard only to stand still, Manchester law firm Rowe Cohen has seen its turnover increase by over 60 per cent to £13 million in the past year. Managing Partner examines the background to this success to see what lessons other professional firms can learn from Rowe Cohen’s formula.
Interview: Kimbells LLP
Many law firms, aware of their status as client-driven businesses, are looking for ways to restructure their management to improve profitability and reflect the needs of their clients. Caroline Poynton talks to Jonathan Hambleton, head of corporate at Kimbells LLP about their recent conversion and how they believe that it was much more than just a question of risk management.
