It is becoming increasingly common for barristers to examine the way in which their sets are run. With so much competition at the Bar, maintaining and enhancing the reputation of chambers is vital. Whilst everybody can see the benefit of having a defined marketing and business strategy, as well as an effective administration, individual barristers are often too busy with their own practices to devote the required time to defining and implementing strategic goals of the set as a whole. In response to this problem, there is a marked trend of sets recruiting Chief Executive Officers and other professionals to manage the business-side of chambers. In some cases, the individuals considered have business experience gained from outside the legal sector altogether, bringing with them a fresh and unbiased approach to the management of the set. Some sets, which have already taken the step of recruiting from the ‘outside’, have exciting success stories to tell.
Competitive advantage should be at the forefront of chambers’ strategy. If you think that you can rely on your traditional methods of delivering services, or your flexibility on price, then think again! This is what most of your competitors are also thinking, and with the changes facing the legal profession as a whole, and the Bar in particular, you’ll need to come up with a smarter strategy in order to maximise the opportunities that present themselves and to avoid being left behind.
So how can you create a competitive advantage?
Each Set has to formulate a unique strategy that is right for them. Making the best use of resources, principally people, is the starting point. Members of Chambers will on an individual basis undoubtedly exhibit a variety of skills such and qualities such as technical ability, leadership or commercial acumen; but the strategy has to harness all those skills so that chambers benefits collectively from their timely deployment. The person ultimately responsible for executing the strategy has to be able to get members to adapt and evolve with the changing marketplace so that they work together, whenever appropriate, to drive the business plan forward and enhance chambers’ standing. The implementation of the Legal service Reform as set out in the Clementi report encourages increased competition in a way that has never been seen before and makes this approach important than ever.
A Chief Executive will typically take control of Chambers strategy. Their main objective will be to increase the bottom line year on year.
Ann Buxton, one of the pioneering CEOs to make an impact at the Bar comments:
“Strategy is very important. Historically Chambers was pulling in different directions, and it required a catalyst, in this case the appointment of a CEO, to provide the necessary focus. Once Chambers had universally bought into the idea of having a CEO with a defined business plan, then we embarked upon a course of action that created greater stability, an increase in turnover (along with increase in individual members’ billings) and an increase in the quality of instructions from clients. Factors contributing to the success of this approach included changing the way in which barristers and other staff worked together. Improving the quality of support staff through a more concerted recruitment initiative, along with internal training for existing staff, have been vital and we have seen a rise in the number of graduates recruited for operational staff whether they be specialised in HR, IT, or marketing. This has led to a positive culture change in Chambers with lower staff turnover rates and increased productivity”.
Image and branding are essential aspects on which to focus in order to differentiate a set from its competitors and attract more instructions. For the marketing to work, however, members of chambers themselves need to feel comfortable with the image and brand representing them, so that they embody it in front of clients rather than give the impression that it was imposed on them and that they are indifferent to it. Part of the problem with having a strong brand is that it is very easy for clients to spot inconsistencies in it.
James Tuke, Head of Intendance Research makes the following observations:
“Since 2002 we have been monitoring the way in which chambers use their websites. There is certainly evidence to suggest that chambers employing a CEO, arguably being more commercially aware, are more focused on their marketing ‘message’ and hence see an effective website as an essential part of their communications strategy. As part of research to be published next year we are looking at the impact of the Government’s Legal Services Reform on the Bar and early responses suggest that Chief Executives are also more open-minded to the changes that now appear inevitable.”
The role of a CEO in chambers can vary from set to set: from those who are more focused on the management of the operational areas of Chambers with less emphasis on strategy, to those who are focused heavily on strategy with full responsibility for the operational areas as well. CEOs will typically report to the head of chambers and will also sit on the set’s management or executive committee. Business planning is usually the responsibility of the CEO and their success or failure can be determined most starkly through a rise in turnover accompanied by a decrease in (or at least effective control of) costs. Barristers who experience an increase in their receipts and a downward trend on their contribution to chambers are all too happy to sing the praises of their CEOs and to assist them in whatever way they can. Business development skills are also very important. To implement a comprehensive business development strategy, all members should be trained and then involved in marketing themselves and cross-selling their clients. This is where strong man-management skills come into play. It takes strong leadership to get people of an independent disposition to buy into the idea of pooling resources for their own, and the greater good.
Although not every set which recruits a chief executive to run chambers has positive experiences, it is can often be because of a lack of awareness in chambers of how to attract and select the best candidates, and how to get the best out of them when they take over. There are, however, now so many examples of success stories of chambers which have gone down the chief executive route that the trend for hiring is experiencing a notable upturn.
7 Bedford Row has benefited from having taken the decision to hire their first CEO back in 2001. Head of Civil, Derek Sweeting QC, comments:
“The emergence of CEOs at the Bar is essentially a consequence of the need for professional business management in large sets of chambers; clerking has become a specialist function in itself which does not routinely produce the financial and managerial skills necessary to run a multi-million pound business. One of the key benefits has been the introduction of fresh ideas and initiatives; the Bar is now real career option for those in management in other professional services or commercial organisations."
Modern CEOs at the bar will typically have had a career in industry and/or have held a similar post in a law firm. Few senior clerks have made the transition to a CEO’s role as yet, but there are signs that a new generation of clerks is emerging and that they could be the CEOs of the future. Ultimately, each set must determine what skills it needs to provide a solid platform for growth, taking into account the skills it already possesses, but also the challenges that lie ahead.
Anil Shah, Managing Director, LPA Legal Recruitment