“Heavyweight gorilla” “You can’t manage me. I’m a big biller!”
….systems to manage the people risks in your business?
Law Firm Risks People Operational Regulatory IT Competition /business Economic, political, fiscal Financial Asset Reputational Management
Examples of People Risks Advice/client care/client matters Client relationships Loss of teams/partners Real cost of staff turnover/recruitment Regulatory regimes –Equal opportunities –Age and Sex discrimination & harassment –Disability –Racial equality –Dismissals –Maternity –Working time regulations –Pensions Management
Leverage will differ from firm to firm Will depend on: A firm’s work type / client type mix How a firm ‘adds value’ to its clients
You will add value if… You provide clients with what they want – and more At prices they perceive to be value for money; and You do this better than the competition
High Value – Added Services Focus on specific client types/work types Seek leadership in a few, cohesive segments Nurture wisdom/experience within the firm High value- added services – strategic impact on client – generally wisdom/experience driven
Low Value – Added Services Value enhanced by –Driving down cost – ensure lowest cost –Investing in standardising processes –Facilitating implementation of solutions Low value –added firms will compete on processes and price – technology driven services with minimum professional input
Low Value – Added Services To be successful firms need to –constantly squeeze out more value for same cost –Ensure financial strength to stay the course –Avoid creating the perception of reduced “quality”
But greater leverage requires more risk management Supervision Training Case management systems ‘Knowledge’ on part of management
And leverage and delegation involve teamworking Why are teams important? Together Each Achieves More
Teams provide… Support Ability to delegate Continuity of service delivery Sense of purpose Accountability / peer pressure Esprit de corps
How many equity partners should you have to maximise profit? Every firm is different – but factors to be considered may include: Your work type / client type mix How a firm best adds value Ability to supervise and manage Culture of firm / financial ambitions
Your partners? Are you getting the best out of your partners? Who does NOT have an underperforming partner?
How much is partner underperformance costing you? Direct financial loss? Loss of good partners and staff? Loss of morale? Loss of relationships / clients?
What are you now going to do to stop your firm leaking money like a sieve?