A land of opportunities Peter Scott Peter Scott Consulting

PETER SCOTT CONSULTING The Legal Services Act is about - adapting to and managing change

PETER SCOTT CONSULTING Adapting to change ‘It is not the strongest of the species that survive nor the most intelligent, but the ones who are most responsive to change’ Charles Darwin ‘Origin of species’

PETER SCOTT CONSULTING How will smaller firms be able to compete in the future?

PETER SCOTT CONSULTING How to compete – and win? Focus Resource Adding value

PETER SCOTT CONSULTING Focus on Client types Work types It is about picking winners

PETER SCOTT CONSULTING Resource People Finance NB - competing in the volume areas will require deep pockets - how many will be able to stay the course?

PETER SCOTT CONSULTING Size provides resource Size is important if law firms are to be able to – Practice safely and compliantly Provide clients with what they want

PETER SCOTT CONSULTING Consolidation There is an urgent need for many firms to merge if they are to be able to meet the challenges ahead and compete and survive

PETER SCOTT CONSULTING You will be better able to compete if you add value in the following way: You provide clients with what they want At prices THEY perceive are value for money You do this better than your competition

PETER SCOTT CONSULTING Your clients needs? Do you know what they want? Are you providing them with what they need? Do you ever ask them?

PETER SCOTT CONSULTING If you build a more competitive BUSINESS – you may create something of value – to sell

PETER SCOTT CONSULTING What does a lawyer have to sell?

PETER SCOTT CONSULTING What does a lawyer have to sell? Services / labour? Hard assets? Goodwill? (the difference between net hard asset value and a total price)

PETER SCOTT CONSULTING What do you have to do so you have something to sell? Need to create something: which someone else needs which they cannot provide for themselves the value of which does not depend on your remaining in the business

PETER SCOTT CONSULTING Three elements to creating something of value in a law firm The nature of the business you create Your relationship with that business The need to find a buyer Above all you need to build a BUSINESS

PETER SCOTT CONSULTING Ask yourselves this question What kind of firm do we want to be?

PETER SCOTT CONSULTING Your firm?

PETER SCOTT CONSULTING Is this how you feel?

PETER SCOTT CONSULTING Forever pushing at a closed door?

PETER SCOTT CONSULTING Do you recognise any of these?

PETER SCOTT CONSULTING “Heavyweight gorilla” “You can’t manage me. I’m a big biller!”

PETER SCOTT CONSULTING “That’s a great idea …for the rest of you!”

PETER SCOTT CONSULTING “Ahh…only five more years to go”

PETER SCOTT CONSULTING Is your firm firing on all cylinders? Answer – Yes / No

PETER SCOTT CONSULTING Are all your partners hungry? Answer – Yes / NO

PETER SCOTT CONSULTING Do all your partners want to earn more? Answer – Yes / NO

PETER SCOTT CONSULTING Do you have the ‘right partners’ on board to help you to achieve your goals? Answer – Yes / NO

PETER SCOTT CONSULTING Are all your partners prepared to be managed? Answer – Yes / NO

PETER SCOTT CONSULTING Are all your partners supportive of management and of each other? Answer – Yes / NO

PETER SCOTT CONSULTING Are all your partners prepared to be accountable? Answer – Yes / NO

PETER SCOTT CONSULTING Are there sanctions on a partner who refuses to comply? Answer – Yes / NO

PETER SCOTT CONSULTING Do all your partners have sufficient financial discipline? Answer – Yes / NO

PETER SCOTT CONSULTING Can you say your firm has no under performing partners? Answer – Yes / NO

PETER SCOTT CONSULTING Do you know how much underperformance is costing you? Answer – Yes / NO

PETER SCOTT CONSULTING Should all your equity partners really be equity partners? Answer – Yes / NO

PETER SCOTT CONSULTING Are you prepared to face up to your issues and deal with them? Answer – Yes / NO

PETER SCOTT CONSULTING Are you prepared to change every ‘NO’ to a ‘YES’? Answer - ?

PETER SCOTT CONSULTING Are you prepared to provide the LEADERSHIP required for change?

PETER SCOTT CONSULTING A final thought - “Change before you have to” Jack Welch

PETER SCOTT CONSULTING Any questions?