Real Transformation in Law Firms

Law firms are spending millions on change programmes, yet they rarely lead to successful change.

Replacing your systems and technology, innovating, forming knowledge and consulting groups, employing business development gurus and revamping all your business processes is like buying a high-end sports car for someone who can’t drive.

If law firms really want to change, they need to have a clear understanding of why the change is needed and what they expect to be different. Then they need to realise that change will only happen when people change – clients, partners, associates and staff.

Once law firms place and keep their people and clients at the heart of their change programmes, they will deliver real, sustainable change – the goals of increased value, greater efficiency and enhanced services.

True leadership allows people to flourish and reach their potential – which benefits all.

Do law firms undertake change and transformation initiatives without really understanding why change is essential and what it is they need to change?

Real change is only enabled by technology and processes; it is actually achieved, and then sustained, by people at the heart of the business. Law firms’ failure to recognise this point results in disappointment for all: clients, partners, lawyers and staff. Repeatedly wasting resources (time and money) leaves everyone feeling frustrated and sceptical about further change proposals.

Over the last few years, I have been fortunate enough to liaise with many international law firms, whether on work assignments, advisory discussions, workshops or through networking. Time spent with clients, lawyers, business service staff and suppliers has reinforced my view that partners and heads of business service functions enter into change initiatives with the best of intentions, but would rather that everything, and everybody else, changed around them and left them alone to get on with being lawyers and functional heads.

Many people think change is required in others, not them. Many think that change should be focused on only reducing costs, not increasing value or enhancing the firm’s overall offering.

So why do law firms operate as they do?

History and success. For many years, clients have viewed lawyers, and the services they offer, as essential to doing business, with little in the way of alternatives. What they delivered was seen as being more important than how they delivered it, or even at what cost. But now the changing world, mobility of clients and partners (both more than willing to change law firms), evolving technologies, a drive to be more self-reliant and the need to deliver increased value, has seen clients seek alternatives: in-house resources, better-value lawyers and innovative solutions. Clients seek partnerships with law firms that understand their changing needs and business imperatives.

Competition has increased, price has become more important and technology has enabled self-reliance. To adapt a retail expression – Better, Simpler and delivering greater Value.

So, what needs to be different?

To make real and sustainable change, which will lead to improvements in profit, processes and morale, law firms need to debate and agree the Why, What, How and Who of change. Once they’ve established this foundation, they need to instigate firm-wide change initiatives with a clear value proposition that integrates the people, operations and commercials, leading to measurable benefits for the firm and their clients.

Partners and staff need not be afraid to debate the culture and behaviours within their firm – real change is brought about by people, not technology.

Law firms need to listen to their own advice. They advise clients how to transform their in-house legal departments and strongly push the need to think more like their clients, but they don’t change themselves and rarely understand their clients’ business and other real needs.

How could law firms operate?

Modern law firms are changing, and progress has been made with the introduction of new functions and ideas (such as legal project management and process improvement, and the adoption of new technologies, such as AI), new pricing models, knowledge management, shared service centres, as well as advisory and consultancy services. A core issue still remains: how these initiatives are being delivered, integrated and maintained.

When delivering a change, we need to consider people (engagement, education, communication, adoption, support and buy-in). Many changes are being made in a piecemeal, desperate manner, each new idea existing in isolation. 

Where is the coherent orchestrated approach?

The classic way to look at a law firm is defined by a hierarchical approach: clients, partners, fee earners and business services (including suppliers) with business services supporting the firm, not enabling its performance or growth.

This is a very simplistic representation of current operating models, but the point is that the focus has been on a subservient relationship in which the firm does not make full use of its client relationships, highly skilled fee earners or business services resources. 

Law firms need to consider the law as the product or service they offer, as this will allow them to learn from other industries where overall performance and results are greatly enhanced when resources are integrated and work in harmony with a single purpose. Clients are evolving and they expect and need their lawyers to adapt, generate new ideas and be easier to do business with, while also generating increased value. Clients now expect their law firms to be business partners, not simply service providers.

Law firms need to use all their assets and challenge themselves to evolve and grow. Growth needs to be proactively sought and then nurtured, not assumed.

A client-centric approach, in which the delivery of clients’ products and services focuses on their needs, underpinned by business, operational and environmental enablers, has the potential to deliver profitable and sustainable growth. 

Delivering the above is best achieved by keeping change simple.

• Ask WHY you need to change and agree your required outcomes – what are you expecting?

• REVIEW how you do things today – what works, doesn’t work? Enhance, but don’t replace, what works.

• DESIGN your future approach, how you need to work. Forget what others are doing and focus on you. 

• PLAN how the change will happen. Be challenging, but realistic.

• Make sure you SHARE: communicate the plan, get people on the bus – your people know your business. 

• START to change, but don’t just take people with you, let them drive the bus!

People and their characteristics – culture, behaviours, leadership, communications, innovation, strategy, shared trust and respect – differentiate a firm’s performance and success. 

Remember, real change is achieved and sustained by people. 

Your next change initiative should start with one question: WHY?