We like to think of ourselves as thought leaders when it comes to the legal marketplace, and we hope that you are starting to think the same as you read this blog and visit our website.
However, all of our opinion is based in analysis and experience working with those on the front line – managers in successful law firms around the UK, seeking to become ever more profitable and successful partnerships.
For us, this is clearly an iterative process, and we are learning all the time. We always seek input and feedback from our clients and allies with ties to the legal sector.
We are looking to carry out a survey on the role of the Finance Director in law firms. We already have our opinions on some of the issues, as you will see from previous posts, but we want more input from those affected – Finance Directors, Managing Partners and Senior Partners, other Partners, Accounting and other support staff.
If you think you are affected by this, and would like to take part, we would be delighted to hear from you. Responses can range from a few minutes filling out a questionnaire, to a more in-depth interview – whatever fits your schedule.
Please email us, info@wilkinsonread.co.uk, and we will try to get back to you the same working day.
Many thanks in advance. Any comments posted here would be most welcome.
The WRP team.
Tuesday, 20 October 2009
Wednesday, 7 October 2009
Detailed Development
Strategy is about more than setting a vision or agreeing on a general course of action. It also involves setting out the specific milestones on the roadmap – the actions that will need to be implemented to achieve the vision.
This means measuring what is done (and not done), and improving on what has been measured. It is remarkable that many firms create a marketing budget without first accurately planning, scheduling and costing their marketing activities and returns. Indeed, many firms seem to carry out marketing activities on the basis that either the client or the partner expects them, they maintain ‘profile’, or even that ‘we have always done it’.
Rather than cutting back indiscriminately, firms would be well advised to undertake a detailed audit of their marketing activities – establishing what is most effective, and what this costs. For example, a seminar is not necessarily successful because it is well-attended. Rather, for all marketing-related activities the marketing director must establish:
This is not just a question of addressing marketing spend and marketing time. Equally important is measurement of client value, in terms of speed of payment and how much management time they take up, as well as how profitable they are. No firm wants to lose business – but equally as damaging can be keeping the wrong business. Clients who are unable or unwilling to pay promptly and are impossible to manage, are rarely profitable and not worth retaining. (It is also worth looking up Ron Baker’s view – that bad clients actually drive out good clients, and are therefore harmful to the firm).
For firms looking not only to ride out the storm but to emerge as stronger and more profitable businesses, the devil is in the details – and marketing is no exception.
This means measuring what is done (and not done), and improving on what has been measured. It is remarkable that many firms create a marketing budget without first accurately planning, scheduling and costing their marketing activities and returns. Indeed, many firms seem to carry out marketing activities on the basis that either the client or the partner expects them, they maintain ‘profile’, or even that ‘we have always done it’.
Rather than cutting back indiscriminately, firms would be well advised to undertake a detailed audit of their marketing activities – establishing what is most effective, and what this costs. For example, a seminar is not necessarily successful because it is well-attended. Rather, for all marketing-related activities the marketing director must establish:
- New client take-on (as a result)
- Matters opened and their value
- The real cost of resulting instructions
- How successful the activity was (comparatively)
This is not just a question of addressing marketing spend and marketing time. Equally important is measurement of client value, in terms of speed of payment and how much management time they take up, as well as how profitable they are. No firm wants to lose business – but equally as damaging can be keeping the wrong business. Clients who are unable or unwilling to pay promptly and are impossible to manage, are rarely profitable and not worth retaining. (It is also worth looking up Ron Baker’s view – that bad clients actually drive out good clients, and are therefore harmful to the firm).
For firms looking not only to ride out the storm but to emerge as stronger and more profitable businesses, the devil is in the details – and marketing is no exception.
Tuesday, 6 October 2009
Developing through the Upturn
We have alluded in previous posts to the responses we’ve seen across the sector in the face of extremely tough conditions – including blanket cost-cutting, cutbacks in support functions, and a redirection of resources away from marketing and business development.
Whilst these actions are at the very least understandable, management must now turn the focus towards the future. Strategy needs to be a priority (urgent and important), and marketing and development are a vital part of this.
There are three core elements to this process:
Look Back and Learn
Considering the downturn of the late Eighties, we can identify a similar pattern, whereby cutbacks were focused at all levels below the very top. Leverage was reduced as a consequence, leaving a gap in the hierarchy and leading to a shortage of talent and salary inflation in post-recession years. As we look forwards, firms need to consider extremely carefully how they will manage their staffing in order to prevent this situation.
Economics over Politics
Law firm leaders have an extremely rare opportunity, and one that will not last long. The economic imperative to maintain (or recapture) profits and develop a successful growing business can be used to push through fundamental changes to the partnership that may never otherwise occur because of internal political posturing. Inefficient partners and practice areas can come under scrutiny in a way previously inconceivable, all in the name of preserving PEP.
Client Ownership
Gone are the days when a partner can legitimately claim to ‘own’ a particular client. All clients must be clients of the firm, not of any individual partner, and they should have access to key fee earners and decision makers within the firm. The clear goals are client protection, client retention and cross-selling, all of which should be consistently monitored. This can only be achieved if the partners trust each other, and as such they must ‘share’ clients in the interests of the firm as a whole.
If managers can grapple with these key issues, they have a real opportunity to grow and develop their firms, and to push home competitive advantage in a market undergoing rapid transformations.
Whilst these actions are at the very least understandable, management must now turn the focus towards the future. Strategy needs to be a priority (urgent and important), and marketing and development are a vital part of this.
There are three core elements to this process:
Look Back and Learn
Considering the downturn of the late Eighties, we can identify a similar pattern, whereby cutbacks were focused at all levels below the very top. Leverage was reduced as a consequence, leaving a gap in the hierarchy and leading to a shortage of talent and salary inflation in post-recession years. As we look forwards, firms need to consider extremely carefully how they will manage their staffing in order to prevent this situation.
Economics over Politics
Law firm leaders have an extremely rare opportunity, and one that will not last long. The economic imperative to maintain (or recapture) profits and develop a successful growing business can be used to push through fundamental changes to the partnership that may never otherwise occur because of internal political posturing. Inefficient partners and practice areas can come under scrutiny in a way previously inconceivable, all in the name of preserving PEP.
Client Ownership
Gone are the days when a partner can legitimately claim to ‘own’ a particular client. All clients must be clients of the firm, not of any individual partner, and they should have access to key fee earners and decision makers within the firm. The clear goals are client protection, client retention and cross-selling, all of which should be consistently monitored. This can only be achieved if the partners trust each other, and as such they must ‘share’ clients in the interests of the firm as a whole.
If managers can grapple with these key issues, they have a real opportunity to grow and develop their firms, and to push home competitive advantage in a market undergoing rapid transformations.
Monday, 5 October 2009
Remote Support for Success
One of the less obvious consequences of the difficulties of the past 18 months for small and medium sized firms has been the challenge of producing sufficiently detailed figures for the needs of the bank manager.
Banks are increasingly requiring detailed management and financial information from solicitor customers, both on renewal of facilities and on a regular basis, with explanations to accompany accounting numbers - as they would expect from a Finance Director.
Whilst most Legal accounting systems hold the relevant data, turning it into meaningful information so that Partners and Lenders can make the right decisions has historically proved both challenging and costly. Many small firms simply cannot afford the requisite calibre of finance or marketing staff, while producing the information independently is close to impossible.
We have worked over the past year to develop a cost-effective solution to this problem, by delivering the skills and experience of a Finance Director and/or a Marketing Director on a remote basis – not only turning our clients’ information into an understandable format, but using it to help them achieve greater profits, smoother cash flow and increased revenues.
This is rapidly becoming one of our most popular services, as it meets the needs of both the firm and the bank, while also providing peace of mind for both. If you would like more information, please see this page on our website.
Banks are increasingly requiring detailed management and financial information from solicitor customers, both on renewal of facilities and on a regular basis, with explanations to accompany accounting numbers - as they would expect from a Finance Director.
Whilst most Legal accounting systems hold the relevant data, turning it into meaningful information so that Partners and Lenders can make the right decisions has historically proved both challenging and costly. Many small firms simply cannot afford the requisite calibre of finance or marketing staff, while producing the information independently is close to impossible.
We have worked over the past year to develop a cost-effective solution to this problem, by delivering the skills and experience of a Finance Director and/or a Marketing Director on a remote basis – not only turning our clients’ information into an understandable format, but using it to help them achieve greater profits, smoother cash flow and increased revenues.
This is rapidly becoming one of our most popular services, as it meets the needs of both the firm and the bank, while also providing peace of mind for both. If you would like more information, please see this page on our website.
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