Page 43 - Leaders in Legal Business - PDF - Final 2018
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Training: This involves the transfer of skills. In our experience, law firms and lawyers
absorb knowledge easily; acquiring skills is more difficult, especially if this involves changing
how lawyers work in their day-today client matters. For example, implementing a consulting
project about how partners should price their services to achieve higher matter profitability
nearly always involves an element of training in assessing price sensitivity and using an IT tool
for discount/premium analysis for the implementation of the consulting project to be effective.
Coaching: In the consulting context, coaching involves a one-on-one or team-level
resolution of barriers that hold back that individual or team from achieving certain goals. In the
pricing example above, one-on-one sessions with practice leaders can help them work with and
manage those partners who are reticent to engage with a discount/premium analysis for their
matters.
M&A and executive search: When a law firm seeks to acquire another firm, be
acquired, or seeks a merger of equals, it may engage a consulting firm that specializes in M&A
advisory services; it may also engage with an executive search firm, or it might try a
combination of both. When opening up in a new city or seeking to extend into a new practice
area, the firm may also engage with an executive search firm to find the right talent. This is a
good and effective route. Here, the lines of where consulting ends and M&A advisory or
executive search begins may be fluid and not transparent. It is best if the firm’s advisors work
together to define and achieve the best outcome. Good M&A brokers and executive search firms
will work with firm management and its management consultants, accountants, and other
specialist advisors to ensure that the project is well defined and that the firm’s objectives are
achievable. A battle among advisors for “the lead” rarely provides a good outcome for the client.
Interim resourcing. For some types of needs, it is more cost-effective to hire an interim
manager or resource than an entire consulting team. An interim resource can add value where the
challenge or goal is well defined, the firm has agreed on a path to action, and the interim
manager is to lead the implementation. The key challenge for most interim managers is that they
very quickly become part of the firm’s internal political system and thus may be viewed by some
partners as “having an agenda” Or may lose their effectiveness because they start playing firm
politics. Experienced interim consultants and professional interim managers know well how to
best retain their “external internal” status, implement the change that is needed, and then turn
their brief over to a permanent hire before going to the next assignment.
Non-executive directors. A number of large firms have hired one or more professional
non-executive directors. Typically, these are retired executives, providing deep leadership and
management expertise form outside the legal industry and can add a tremendous amount of value
to a law firm leadership team. They often work alongside retained consultants or help senior
management manage the value-add consultants are intended to provide.
What You Should Always Expect
No matter how a consulting firm or solo consultant works with you, you always should
expect that the consulting firm is focused on your firm’s challenges and goals, and that the
consultant has your firm’s best interests in mind. This sounds like “motherhood and apple pie,”
yet one of the biggest complaints that we hear from our clients about working with consultants is
that the additional hour or the additional day charged is more important than the client reaching
his/her goals. It is appropriate that consultants look where else their organisation can add value;
prioritising selling the next project is not.
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absorb knowledge easily; acquiring skills is more difficult, especially if this involves changing
how lawyers work in their day-today client matters. For example, implementing a consulting
project about how partners should price their services to achieve higher matter profitability
nearly always involves an element of training in assessing price sensitivity and using an IT tool
for discount/premium analysis for the implementation of the consulting project to be effective.
Coaching: In the consulting context, coaching involves a one-on-one or team-level
resolution of barriers that hold back that individual or team from achieving certain goals. In the
pricing example above, one-on-one sessions with practice leaders can help them work with and
manage those partners who are reticent to engage with a discount/premium analysis for their
matters.
M&A and executive search: When a law firm seeks to acquire another firm, be
acquired, or seeks a merger of equals, it may engage a consulting firm that specializes in M&A
advisory services; it may also engage with an executive search firm, or it might try a
combination of both. When opening up in a new city or seeking to extend into a new practice
area, the firm may also engage with an executive search firm to find the right talent. This is a
good and effective route. Here, the lines of where consulting ends and M&A advisory or
executive search begins may be fluid and not transparent. It is best if the firm’s advisors work
together to define and achieve the best outcome. Good M&A brokers and executive search firms
will work with firm management and its management consultants, accountants, and other
specialist advisors to ensure that the project is well defined and that the firm’s objectives are
achievable. A battle among advisors for “the lead” rarely provides a good outcome for the client.
Interim resourcing. For some types of needs, it is more cost-effective to hire an interim
manager or resource than an entire consulting team. An interim resource can add value where the
challenge or goal is well defined, the firm has agreed on a path to action, and the interim
manager is to lead the implementation. The key challenge for most interim managers is that they
very quickly become part of the firm’s internal political system and thus may be viewed by some
partners as “having an agenda” Or may lose their effectiveness because they start playing firm
politics. Experienced interim consultants and professional interim managers know well how to
best retain their “external internal” status, implement the change that is needed, and then turn
their brief over to a permanent hire before going to the next assignment.
Non-executive directors. A number of large firms have hired one or more professional
non-executive directors. Typically, these are retired executives, providing deep leadership and
management expertise form outside the legal industry and can add a tremendous amount of value
to a law firm leadership team. They often work alongside retained consultants or help senior
management manage the value-add consultants are intended to provide.
What You Should Always Expect
No matter how a consulting firm or solo consultant works with you, you always should
expect that the consulting firm is focused on your firm’s challenges and goals, and that the
consultant has your firm’s best interests in mind. This sounds like “motherhood and apple pie,”
yet one of the biggest complaints that we hear from our clients about working with consultants is
that the additional hour or the additional day charged is more important than the client reaching
his/her goals. It is appropriate that consultants look where else their organisation can add value;
prioritising selling the next project is not.
29
