Evolving regional market challenges

Turning the clock back a couple of years, the outlook for the regional market didn’t look as rosy as it does today. The advent of ABSs, and national networks like QualitySolicitors, seemed to present a real threat
to regional firms.

Now, the regions are looking healthy, with signs that there will be further growth over the next
few years. The University of Law predicts a revival of the regional market, citing how firms like DLA Piper are using offices outside of London to deliver greater value to clients. In recent months, this trend seems to have snowballed, with Hogan Lovells, Allen & Overy and Herbert Smith Freehills all choosing to expand into the regions rather than overseas.

This trend, if it continues, will
see national firms encroaching on markets traditionally the domain of independent/mid-tier firms.
This situation can present management challenges to
those running such firms.

At my own firm we have been concentrating on expanding in Hertfordshire, Bedfordshire and Buckinghamshire. We also opened a London office, but our key market and focus remains the home Ccunties. Our new headquarters in St Albans and our goal to increase turnover by 25 per cent over the next three years underlines this.

It is important that regional firms focus on attracting and retaining talent – it is here where regional firms that employ flexible and modern work practices may be able to steal a march over the larger, City-based practices.

The relentless pursuit of the billable hour, a presenteeism culture, coupled with ruthless ‘up or out’ career structures at some City firms, has led to fee earner burn-out and cynicism, as a generation of younger lawyers question their long-term future. This has been key in regional firms picking up talent.

The key objective is to ensure that employees and fee-earners
feel valued and are kept engaged
in the business. Offering a modern, flexible approach is all part of the formula for a happy and motivated workforce.

While independent regional firms cannot compete with the resources of the larger national practices, they do have a key advantage: a detailed and often historic market knowledge, which can help build valuable intermediary relationships and
win market share.

It is essential that regional firms ensure their brand is highly visible in order to compete against big marketing budgets and recognisable brands which can often tempt potential clients. Capitalising on your heritage and market knowledge is essential to counterbalance this threat.

The revival of the regional market is a positive development and something that seemed unlikely a couple of years ago. However, it is important that regional firms play to their strengths and take advantage of this recovery by not sitting back and allowing national firms to expand, gobbling up market share at their expense. SJ