Effective people and productivity management Peter Scott Peter Scott Consulting

Effective people and productivity management Measuring the financial value of human capital Making best use of your people to increase profitability Partners and profitability

Measuring the financial value of human capital

Is your business leaking money like a sieve?

Leaking like a sieve? because you do not have the right…..

….leadership and influencing skills to get the best out of your people?

Is this you?

….people environment to make your business a real success?

Are we all going in the same direction?

….mechanisms to prevent the attrition of high quality performers?

This will happen to your talent unless… TALENT €

….systems to manage relationship conflict?

“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

….culture to support high performance levels?

Values Skills & Behaviours Performance Metrics – Qual/Quant Performance Review Closing the Performance Gap Learning & Development Strategy Building a performance culture

What is the real cost of replacing people?

The real cost of replacing people Disruption Recruitment fees Training of new recruits Effect on morale of people leaving Loss of relationships / clients

How to retain and get the best out of your people? Help them maximise their full potential – This requires investment in your people

Investment in your people? For example Who has a ‘New Partner Programme’ designed -to bring people through to partnership? -and which continues throughout partnership?

Investment in your people requires? -Leadership and vision -Values - Training - Mentoring -Coaching -Empowering -Supporting

Are you investing sufficient in your people to realise their financial value to your business?

Building profitability through people management Stop leaking money like a sieve! Building people performance Make best use of your people resource

To do this you will need a strategy “Strategy is a realistic plan or course of action to gain competitive advantage which has clear and achievable objectives and uses available resources”

Your greatest resource? Your people

Values Skills & Behaviours Performance Metrics – Qual/Quant Performance Review Closing the Performance Gap Learning & Development Strategy Building people performance

What does it take to succeed at your firm? What do you value? Do you invest in what you value? Do you reward what you value?

leverage delegation An integrated strategy to best use your people resources

Delegation is key to profitability Be a better boss by doing less work! Match the level of work to the appropriate level of expertise / cost Sell at the right price! = improved margin

Leverage - you need to be aiming for this Equity partners Other fee earners

Not this Equity partners Other fee earners

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

Are all your people ‘team players’?

How not to be a team player? ‘we have no room for those who put their personal agenda ahead of the interests of the clients or the office’ David Maister’s ‘Predictive package’

“Do own thing” “That’s a great idea… …for the rest of you”

But people resources are scarce Cannot be all things to all men Need to build focus into your business Focus on - work types - client types in order to gain competitive advantage

Balancing your profit and your partner numbers

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?