Legal Commerciality

Take a look at any of the largest UK law firms and you will find comprehensive support functions aligned with every facet of the firm. Some have been in place for over a decade. Initially, such functions were centrally focused; now most of these firms will have marketing, business development, PR, finance, IT, training and HR from top to bottom in each practice area. As a result firms are able to enjoy a dedicated focus on every part of their business whether it is responding to tenders, fielding media issues or addressing training deficits. This now provides their clients with a seamless service and in turn makes the fee earners more commercially aware.

The underlying reason why these firms have put such resources into building up their support functions is very simple - commerciality. A partner may be a highly successful and respected lawyer, but he or she may lack experience in writing and implementing detailed and cohesive business plans - nor would it be the best use of their time to do so. Those in firms with well developed support functions now enjoy a dedicated resource to assist in a number of ways, including, for example, the bid process where individuals will be coached on how to optimise their pitch and given techniques for improving their success rate.

PR Professionals

An area that has seen significant growth in recent years is the introduction of PR professionals. Accountancy firms have often been praised for their branding campaigns and for their advancement in CRM programmes. Law firms have historically been more focused on business development but are now becoming more concerned with their brand and market perception. Conversely, accountancy firms have recently been building their business development capabilities in addition to continuing to promote their brand identity. The usual relationship that law firms have had with the press has been deal led. This has changed dramatically as firms realise that with any branding campaigns or profile raising initiatives, they need to ensure favourable coverage in the press so as not to undermine all their internal efforts. Accordingly, there has been a wave of recruitment for dedicated PR personnel who will then work their way around the firm gauging exactly what is going on in each practice area, even if just to clarify work in progress. Law firms that have embraced this concept have seen an improvement in messages relayed to the market and although ‘leaks’ are inevitable, these are now controlled and better managed. While professional services experience is often thought to be an understandable requirement for these roles, it is interesting to see the increasing number of law firms and barristers chambers that are taking on individuals in key areas without previous legal experience in the services sector. Take, for example, a leading planning chambers which recently took on a CEO from the BBC and a marketing director from a top 40 law firm. The appeal was that the CEO brought a fresh commercial approach and new ideas to bear from his experience in industry. His astute business acumen very much came to the fore, and in eight months, his presence has been felt leaving the members in no doubt as to the viability of his appointment.

Small to Mid-Sized Firms

We have noticed a trend in a number of small to mid-sized firms looking to grow their businesses, diversify some of their practice areas and develop more of a presence in the market. There has been a common understanding throughout - the need for dedicated and qualified professionals to help steer firms through these challenging times. Quite often the bulk of senior management’s time is taken up with running the business, leaving little time for fee earning and probably less for planning. A number of these practices have seen how the larger firms have been performing, and are now keen to follow their example - the question is, how?

Structured Environment

One immediate benefit these firms have is the appeal they offer to candidates who work in a very structured environment. The three key drivers I typically hear from senior candidates when they are looking at making a move are:

Many of the small- to mid-sized firms that have worked with us have offered a ‘Greenfield site’, where this is their first business development director, marketing director or CEO and where the individual will sit on the board or management committee to ensure that they are empowered. This is exactly the type of opportunity that many top candidates look for as they may have reached the ceiling in their current job and want to escape the layering of middle management. These candidates are looking to be more involved in the decision making process and to have greater strategic input.

The benefits to these firms is that they will gain an individual who is a specialist in their field, experienced in cross-selling and dealing with successful professionals, and who will be able to bring to bear their knowledge of relevant business processes in order to tailor the approach of the firm to their clients. Many small firms have a limited marketing capability. They may have a marketing executive, but often that individual is more involved in managing projects, organising events, and writing tenders, and is not expected to play a part in influencing the partnership on its strategy. There are, however, a growing number of small firms that have introduced a more senior individual to their practice to take up more of the strategic reins. As a result, these firms have enjoyed considerable success in improving their working practices and, ultimately, their revenue.

Barristers Chambers

Barristers chambers are also examining these functions, as like law firms, they have found that reactive business cannot be solely relied upon, an issue highlighted by Lord Woolf. Competition is rife and as litigation may not be seen as a cost effective solution, chambers have to look at other ways of securing their fees. Chambers offer a unique business model and it is essential that all members are billing, as each set could be seen as a multitude of different businesses under one roof. The need for a strong strategic direction and an aptitude for implementation has never been more relevant. A number of sets contain sophisticated expertise and some of the best legal talent, but have historically been reactive in their approach to winning business. More often than not there is no defined marketing plan, in some cases not even a business plan.

Prestigious Chambers

In the last year in particular, certain prestigious chambers have introduced CEOs and marketing directors into their practice - roles that had previously been part of the duties of a senior clerk - and have quickly seen the benefits. Plans are driven forward faster and barristers’ time is freed up for legal practice. An advantage of taking on someone with experience from a law firm in such a role is their knowledge of what law firms look for when instructing barristers. Being able to differentiate themselves from other sets and promoting their core competencies is now a key issue; and who better to deal with these issues than individuals who have been looking at similar problem solving initiatives in law firms?

Change of Mindset

As chambers operate very differently from law firms, the introduction of marketing and business development quite often involves a change of mindset. Barristers need to be advised to look beyond the fact that there will be an additional cost-overhead, and focus on the need to be competitive in the future. Chambers that are doing extremely well and surpassing their peers by introducing marketing and dedicated management with strategic involvement are also conspicuous. These sets are becoming increasingly known as a result of high market profile and improved financial performance. It is, therefore, only a matter of time before it is standard practice for the bar to gear up in these crucial functions.

Summary

The growth of support functions in all areas of the legal sector has grown significantly in the last decade and continues to do so. One only needs to look at the number of consultancies working in this field to see that the need for such staff is an ever more prominent requirement for firms looking to further their business. Marketing, business development, branding and PR are all intrinsically linked. All of these areas need to be combined in order to successfully carry out any creative and innovative business plans. It has taken some time for law firms to see the dividends of building up such a resource, but few would now question the validity of doing so.

Guy Hewetson, Senior Consultant, LPA Legal Recruitment Barristers Chambers Division