Managing a Law Firm in Uncertain Times
My year has so far been a flurry of activity – clients seeking new initiatives to stave off the competition and the search for a bright torch to show the path through the darkness. The darkness cast over the legal profession impacting on a managing partner’s vision has been caused by a multitude of concerns;
• The regular announcements of new, SRA approved, dynamic alternative business structures (ABS’s).
• The spread of ineffectual but tempting branded “legal networks” seeing an opportunity to build a business on the fear of failure and their belief of strength in numbers.
• Government changes to Legal Aid removing such client support for key practice areas including Family.
• Further legislative changes to reduce Personal Injury fees via the Jackson Reforms.
• Changes to employment legislation and general job loss fears reducing the number of employment law matters.
• The property and construction markets flatlining.
• The Ministry of Justice removing claims referral companies as a source of new Personal Injury work.
• The regulatory body for firms in England & Wales – the Solicitors Regulatory Authority and their insistence on adding layers of bureaucracy through two new compliance officer roles.
And of course the ever present need to find enough fee income to pay for Practising Certificates and Professional Indemnity Insurance.
Add to this the pressure to invest in technology, talent and training and you have a series of seismic events that for many are leading to nasty rumbles if not catastrophic quakes within partnerships throughout the UK.
On the upside there are significant opportunities for law firms across most areas of the practice spectrum. Those opportunities are not in the same shape, colour and size as before. Clients are far more comfortable and capable accessing information online before deciding on contacting a lawyer. Clients now come pre-packed with knowledge and a revised expectation of what value your service is to them.
They also select their law firm or lawyer on criteria that has evolved to include recommendations but often accepting them from comments posted on web forums and increasingly social media. Twitter is now far more likely to be used to find an answer that will be acted upon than Google as responses are provided by a trusted network.
Firms that believe clients will still flood in because of their “long standing reputation”, “location”, “profile of senior partners” will find themselves falling further behind as competition increases. This will be ever more apparent in firms who have failed to implement Customer Relationship Management (CRM) solutions to enable a meaningful ongoing interaction with existing clients.
Well that’s a bright and cheery view. I make no apology; it is the reality of managing a modern law firm in 2013. To be successful, a legal practice like any other business needs to grow through innovation; understanding of customer needs, a clearly articulated vision and quality execution of service.
After 5+ years of recession we can be excused for feeling tired, battered and lacking that vital spark to revitalise the business but now is the time to do it.
If any of the points above are a current concern to your business and you would like to discuss please email in confidence to firstname.lastname@example.org or call 08456 446624 to arrange an initial meeting.