Finding the right skills to manage change

For law firms to grow, there is a need to bring essential skills into the organisation. Progressive practices have accepted
that they must acquire management skills in an affordable way from
outside the profession.

Many partners have never had management training and are finding it difficult to develop a strategy for their future.

A surprising number of
law firms are embracing
change by using the skills of a non-executive partner to help them formulate strategy and implement change from within.

Recognising your own strengths and weaknesses
will result in a realisation that
many partners do not have
the necessary skills to develop
a change-management
strategy within their practices.

We have seen a steady
growth in non-lawyer chief executives in large and
mid-size practices where external management skills
can make a huge difference.

These ‘management specialists’ come from a
variety of backgrounds and
will command a salary commensurate with their experience: in other words,
you get what you pay for.

The impact of a CEO can
carry the costs of a partner but in many cases make a significant improvement in a firm’s bottom line, therefore justifying
their costs.

Many firms are reluctant to make the commitment of investing in such a position, however. They either try to do it themselves or employ a practice manager who has little or no authority or responsibility.

If partners do not accept that change is inevitable, they are not ready for a CEO. A number have tried it and said it didn’t work for them. Was that because once the CEO told the partners some unpalatable news, such as a reduction in drawings in line with performance, that the role suddenly became redundant?

Using a non-executive is both a cost-effective and an extremely productive alternative. If resources are tight, using the experience, knowledge and skills of a non-executive can be the difference between thriving
and just surviving.

Having someone prepared to challenge the partners and ensure the strategic plan is implemented will have a dramatic impact on practices that have the fundamental desire to embrace change.

It could well be that a partnership is under pressure after a reduction in turnover
and PEP yet fundamentally wishes to remain a partnership and provide a world-class service at a premium rate to genuine clients.

It has been argued that continuously reviewing your client base and deliberately removing the bottom 10 per cent of clients will make your firm more profitable.

Client v customer

I have only used the word ‘client’ in the above scenario and it is essential that we do not confuse them with customers. Clients value your service and will pay a premium for your time whereas customers are buying on price – you simply cannot make money by providing client-led services to customers.

With sweeping changes in
the profession, it is more important than ever for ideas and management skills to be brought into a practice at an affordable cost.

ABSs, referral fee bans and
the changes to legal aid are just some of the outside influences that are technically out of your control but will have a huge impact on the future of your
firm if not handled correctly.

Hence the growth of the non-executive partner within mid-size and even smaller firms. A non-executive will allow you to run your organisation but will give you invaluable advice and guidance in all aspects of business and managing change.

The benefits of having a CEO/non-executive far outweigh any downside, assuming you wish to run your practice as a business. Bringing those skills into your practice does not have to be expensive but should make an incredible difference. The strategy may be to bring in a CEO in the future and many non-executives are seen as an interim arrangement towards that goal.

Whether you have a strategy for the future or are looking for guidance, join the ranks of the ever-growing firms that are embracing the opportunities and using the skills of a
non-executive to grow and enhance their business.

Viv Williams is CEO of 360 Legal Group

SJ