How differentiating our services helped to increase revenues by 45 per cent

The past decade has been a make-or-break time for many businesses; the need for law firms to actively differentiate themselves has never been higher. For us, aiming for a stand-out position has involved significant investment in our client care processes and technology infrastructure, combined with
a strong sector focus to streamline
our offering.

These efforts have helped us record
a 45 per cent increase in turnover between 2011 and 2014. We've seen growth across the board, but particularly in relation to our contentious offering, which now accounts for 55 per cent of the
firm's revenues.

Finding differentiators

Post-Lehman, we were in a relatively strong position, able to react quickly with strong management and a varied and sophisticated client base. But, we quickly recognised that tightening business procedures and cost controls were not enough to take us forward in the changed landscape; we needed something that stood us apart.

Most firms claim to have a USP or be somehow unique, but often do not move beyond lip service and stock phrases. We recognised that it is not the areas of expertise, or the sectors of specialisation, or the commitment to staff per se which differentiates a firm. What counts is:

• how effectively your firm implements such things; and

• how you identify and exploit situations peculiar to your business.

Implementing strategy

We are not a niche firm and so, in terms of size and diversity, we may appear to be on the cusp of being able to credibly promote a sector focus. But, we have successfully developed a truly focused and national banking and finance practice with a great reputation. Our technology, media and telecommunications (TMT) group is well advanced on the same journey, and our life sciences and healthcare (LS&H) practice is a great example of a practice group at an earlier stage of development.

We still work outside these sectors, but our clear focus on them enables us to work more strategically and build a genuine understanding of the commercial and legal frameworks in which our clients operate. Whilst the three sectors appear very different at first sight, they share many similarities from a strategic and implementation perspective.

We all know that it's essential to start with the right people; knowledgeable experts with passion and drive who are prepared to take the lead. We need to invest in our infrastructure as well; for us, that has included a significant investment in technology. But, to make a difference, it's what happens next that counts.

• Demonstrating and proving knowledge and skill. In our sector groups, we have focused on making ourselves very well known. Regular mailings share our insight on key issues and consistently receive up to 70 per cent read rates against the legal sector's average read rates of 22 per cent. A key user group focus for our LS&H practice is the Pharmaceutical Industry Networking Group (PING). This is demonstrably raising our profile and winning work, as we are involved in regular roundtable meetings and an annual landmark seminar.

• Adding value at every contact point. This is central, whether it means providing tangible value (such as flexible fee structures) or softer value (such as legal surgeries, industry seminars and networking events). Clients experience these touchpoints personally, but seeing the bigger picture reinforces their own experience, so winning the LawNet Award for Client Service was something we
  could valuably share.

• Best practice across the business. We've worked with the Black Solicitors Network to improve our diversity levels, which has helped us to win its Most Diverse Law Firm of the Year award for two years running. We have also been listed in the LSE's 1000 Companies to Inspire Britain, based on our business ethos and financial performance.

All of this combines to tell a story about our firm and stand us apart from our competitors.

Exploiting circumstances

Every business is unique; exploiting your differentiating factors can drive financial performance. Some may scoff at being 'famous in Watford' or 'a leading firm in the northern home counties', but it has tangible importance. We get many referrals by being identified in this way.

Watford may not be an obvious place for global organisations to seek out advisors, but that's the kind of clients we've attracted by leveraging our excellent connections with local banks to link into higher levels in the banks.

Long before most firms had dreamt of offshoring and nearshoring, we could provide highly trained and experienced experts at very cost-effective rate, giving us a huge advantage over our City competitors from a base just 18 minutes out of central London.

We share many values with other law firms, but we're demonstrating our own particular differentiating factors, our people say we offer an exciting and dynamic place to work and our healthy financials speak for themselves.

Richard Phillips is on the management board of Matthew Arnold & Baldwin (www.mablaw.com), a LawNet member firm (www.lawnet.co.uk). He heads the firm's corporate and commercial group.