“Heavyweight gorilla” “You can’t manage me. I’m a big biller!”
….systems to manage thepeople risks in your business?
F Asset ina n Re cia pu l ta tio Eco n na l pol omic, itic fisc al, al t Operational n pe titioCom iness s Managemen /bu Law Firm Risks Pe op le IT Regulat ory
Examples of People Risks • Advice/client care/client matters • Client relationships • Loss of teams/partners • Real cost of staff turnover/recruitment • Regulatory regimes – Equal opportunities – Age and Sex discrimination & harassment – Disability – Racial equality – Dismissals – Maternity – Working time regulations – Pensions Management
Leverage will differ from firm to firmWill depend on:• A firm’s work type / client type mix• How a firm ‘adds value’ to its clients
You will add value if…• You provide clients with what they want – and more• At prices they perceive to be value for money; and• You do this better than the competition
High Value – Added Services High value- added services – strategic impact on client – generally wisdom/experience driven • Focus on specific client types/work types • Seek leadership in a few, cohesive segments • Nurture wisdom/experience within the firm
Low Value – Added Services Low value –added firms will compete on processes and price – technology driven services with minimum professional input • Value enhanced by –Driving down cost – ensure lowest cost –Investing in standardising processes –Facilitating implementation of solutions
Low Value – Added Services• To be successful firms need to –constantly squeeze out more value for same cost –Ensure financial strength to stay the course –Avoid creating the perception of reduced “quality”
But greater leverage requires more risk management• Supervision• Training• Case management systems• ‘Knowledge’ on part of management
And leverage and delegation involve teamworkingWhy are teams important?TogetherEachAchievesMore
Teams provide…SupportAbility to delegateContinuity of service deliverySense of purposeAccountability / peer pressureEsprit de corps
How not to be a team player?‘we have no room for those who put their personal agenda ahead of the interests of the clients or the office’David Maister’s ‘Predictive package’
“Do own thing”“That’s a great idea… …for the rest of you”
But people resources are scarce• Cannot be all things to all men• Need to build focus into your business• Focus on - work types - client typesin order to gain competitive advantage
Balancing your profit and your partner numbers
How many equity partners should you have to maximise profit?Every firm is different – but factors to beconsidered may include:• Your work type / client type mix• How a firm best adds value• Ability to supervise and manage• Culture of firm / financial ambitions
Your partners?• Are you getting the best out of your partners?• Who does NOT have an underperforming partner?
How much is partnerunderperformance costing you?• Direct financial loss?• Loss of good partners and staff?• Loss of morale?• Loss of relationships / clients?
What are you now going to do to stopyour firm leaking money like a sieve?