Page 34 - MASTER COPY LEADERS BOOK 9editedJKK (24)_Neat
P. 34
Leaders in Legal Business
by additional analysis work as options solidify and others are discarded. Various groups of partners and other
stakeholders may be involved at different stages of the consulting project. Feedback and learning loops may be
agreed upon in advance or throughout a project as the scope changes.
Note that the above five elements apply very broadly and in principle to any consulting project, whether
it’s as operational as a major IT implementation of a new practice management software, a change to how partners
develop business, or as strategic and fundamental as a change of the partner remuneration system. The work to be
carried out and the exact structure of each element will of course vary widely given the law firm’s objective for
the project.
Process design: A law firm should expect its consulting firm to assist in designing a process that helps
achieve the client’s objectives so that the subject matter advice provided fits the business, is capable of
implementation and takes hold within the firm. This is to ensure the law firm can earn a return from its financial
and time investment in the acquired consulting services.
Project management: We stress the importance of project management in consulting projects. A well-
managed project, following accepted project management norms, almost always achieves better outcomes and
does so more easily, with less time wasted, than a project that is “defined as we go along.” Besides the substantive
and process expertise, you should ask your consulting firm about its project management expertise, skills, and
approach.
Retained Advisory
Sometimes the needs are of a different nature, and then it may make sense to retain a consulting firm or
consultant for a period of time. For instance, the need may be for a managing partner or an executive committee
to have an ongoing sounding board providing an external perspective.
The reasons may vary; the three most common retained advisories we see are:
First, most firms now have at least one permanent external advisor who really understands the business,
firm management, and the partnership to provide impartial advice on a broad range of strategic, tactical, and
operational business issues. This may take the form of a consulting firm (with access to a number of partner-
experts within that firm), an individual consultant, or a non-executive director.
Second, consultants may provide ongoing implementation advice following a consulting project and to
help firm management reflect on necessary changes until a new idea, process, or decision is implemented the way
it was intended and in the best, most profitable way for the firm. For example, it is invariably helpful to any
remuneration committee or other decision-maker for the consulting firm to ensure that change to the system of
how partners are paid is being implemented as intended (and has been “sold” to the partners!).
Third, we have seen a number of firms with a single trusted external advisor who manages the
relationships with all other advisory firms to guarantee a consistency of approach and to ensure that all consulting
firms advising the law firm provide value for money.
Ad Hoc Advisory
Sometimes there is the need for a looser, more ad hoc relationship. A new managing partner may wish to
have some advice on how he should shape his agenda or how she might seek to convince the board on a particular
approach to an issue. There is plenty of this level of advice being given, which tends to be paid for by the hour or
the day. Sometimes this advice may be given more formality and delivered as part of a retained advisory, even as
a coaching plan, with some specific objectives agreed upon.
Sometimes a managing partner merely needs the comfort of hearing about the experiences of someone
who has done it all before as a managing partner. There are a number of eminent ex-managing partners who have
offered a lot of help, comfort, and reassurance by selling the stories of the very real scars on their backs.
27
by additional analysis work as options solidify and others are discarded. Various groups of partners and other
stakeholders may be involved at different stages of the consulting project. Feedback and learning loops may be
agreed upon in advance or throughout a project as the scope changes.
Note that the above five elements apply very broadly and in principle to any consulting project, whether
it’s as operational as a major IT implementation of a new practice management software, a change to how partners
develop business, or as strategic and fundamental as a change of the partner remuneration system. The work to be
carried out and the exact structure of each element will of course vary widely given the law firm’s objective for
the project.
Process design: A law firm should expect its consulting firm to assist in designing a process that helps
achieve the client’s objectives so that the subject matter advice provided fits the business, is capable of
implementation and takes hold within the firm. This is to ensure the law firm can earn a return from its financial
and time investment in the acquired consulting services.
Project management: We stress the importance of project management in consulting projects. A well-
managed project, following accepted project management norms, almost always achieves better outcomes and
does so more easily, with less time wasted, than a project that is “defined as we go along.” Besides the substantive
and process expertise, you should ask your consulting firm about its project management expertise, skills, and
approach.
Retained Advisory
Sometimes the needs are of a different nature, and then it may make sense to retain a consulting firm or
consultant for a period of time. For instance, the need may be for a managing partner or an executive committee
to have an ongoing sounding board providing an external perspective.
The reasons may vary; the three most common retained advisories we see are:
First, most firms now have at least one permanent external advisor who really understands the business,
firm management, and the partnership to provide impartial advice on a broad range of strategic, tactical, and
operational business issues. This may take the form of a consulting firm (with access to a number of partner-
experts within that firm), an individual consultant, or a non-executive director.
Second, consultants may provide ongoing implementation advice following a consulting project and to
help firm management reflect on necessary changes until a new idea, process, or decision is implemented the way
it was intended and in the best, most profitable way for the firm. For example, it is invariably helpful to any
remuneration committee or other decision-maker for the consulting firm to ensure that change to the system of
how partners are paid is being implemented as intended (and has been “sold” to the partners!).
Third, we have seen a number of firms with a single trusted external advisor who manages the
relationships with all other advisory firms to guarantee a consistency of approach and to ensure that all consulting
firms advising the law firm provide value for money.
Ad Hoc Advisory
Sometimes there is the need for a looser, more ad hoc relationship. A new managing partner may wish to
have some advice on how he should shape his agenda or how she might seek to convince the board on a particular
approach to an issue. There is plenty of this level of advice being given, which tends to be paid for by the hour or
the day. Sometimes this advice may be given more formality and delivered as part of a retained advisory, even as
a coaching plan, with some specific objectives agreed upon.
Sometimes a managing partner merely needs the comfort of hearing about the experiences of someone
who has done it all before as a managing partner. There are a number of eminent ex-managing partners who have
offered a lot of help, comfort, and reassurance by selling the stories of the very real scars on their backs.
27
