Shared values, not strategy, differentiate law firms in competitive markets

"Why are you different from other law firms?" is a question that is frequently asked by potential clients and referrers when we pitch for work. Our answer certainly doesn't consist of our IT systems, our office layout, our geographic location or the strength of our legal offering. All of those factors are broadly the same across all firms in a similar market position to us.

I also contend that a strategy isn't really a true differentiator. It might rule you out of particular markets or place you firmly in the centre of others, but the chances of our strategy being wildly different to that of similar firms are slim.

The changes in the legal market in the past five to six years have meant that law firms have thought hard about their plans, their market position and their future direction. It is now expected that a firm will have a clearly-defined strategy and that the strategy will be communicated across the business. Most law firms will be thinking about focus, how to build on their strengths and how to increase (or at least maintain) market share.

So if our strategy, skills, staff, systems and structure cannot set us apart, why do clients and recruits choose our firm over others? I suggest that our firm's shared values have a great part to play in this decision-making process. A firm's shared values are something that cannot be replicated; it is without doubt a competitive advantage and an asset which we need to nurture and safeguard. Our values as a firm sit at the heart of everything we do. They form the foundation of our plans, dictate where we are best placed to focus our attention in a very competitive marketplace and make us different from the rest.

If we ask people in our firm what our values are, the answers are very consistent. What is exciting (but alarming at the same time) is that, when we ask our clients through formal feedback programmes and our new recruits what it is that they like about us, why they chose us and why they stay, their answers are very similar.

Our market is playing back to us our values, which means that they are worth something. We have evidence to share with the market about the experience that a client or new joiner will have if they choose us. The reason it raises some alarm bells is that, once the market is recognising those values consistently, we have to uphold them. Nobody in the firm can let us down and that is so easily done.

Shared values means that everyone in the firm has a responsibility to ensure that everything they do enhances and protects those values. That requires strong leadership, buy in and understanding from the partner team and constant reminders and communication throughout the business.

The behaviours which uphold those values should be rewarded and recognised. Individuals within our business are required to challenge behaviours which do not reflect our values - not in a blame culture way, but in a way that reminds the relevant person that we are all in this together and need to support each other.

Leading behaviours and values is an important part of the management of a law firm. It is not easy; it requires belief, confidence and consistency of communication. But, if it works, the resulting outcome is a powerful asset which will give you an easy answer to the question: Why should we work with your firm?