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Leaders in Legal Business
The topic is too big: The expertise within the management firm simply isn’t broad or deep enough to
resolve the topic. For example, the management team knows that knowledge management is an ineffective way
to drive down costs, and the practice heads and management team have done all they can do within their level of
expertise. Consulting firms that are subject matter experts in a given area can fill in the missing expertise.
The topic is too politically sensitive: The expertise may or may not exist within the firm, but too many
of the partners involved in developing a solution either can’t sufficiently separate their own interests from those
of the firm or will be perceived by their other partners as having an axe to grind. For instance, changes to how
partners are remunerated or how their performance is measured and assessed often falls into this category. This
requires consulting firms that not only have the subject matter expertise, but are also experts in stakeholder
management and process design. This leads to partner involvement interventions that achieve a resolution passing
the required voting threshold.
The topic is too important to handle in-house: The expertise may exist, and the topic may not be all
that controversial, but the risk of getting it wrong is so great that external validation helps weld partners to a
decision that they will comfortably implement. For example, a firm has been approached by a larger firm that
seems like the ideal merger partner, the financials look good — but there is lingering doubt about whether the
combined platform really will increase profits or whether the partners of both firms really are as culturally —
behaviorally — compatible as the initial meetings and cocktails suggest.
There are too many topics: The management team knows there are many facets to a single challenge or
too many opportunities to pursue. For example, the firm has experienced sliding margins for the last five years,
its market is contracting, and prices (rates and structure) are under increasing pressure. Do we have a profile
problem, a business development problem, a pricing problem, a problem with our culture that our partners don’t
sell enough, a cost problem, or all of the above? This scenario requires less of a deep subject matter expert, but
rather a business consulting team that understands how law firms work, with an analysis methodology that
achieves a hard diagnosis, and helps management break down and prioritize the challenge.
Management capacity is too limited: Sometimes the challenge and the path to resolving that challenge
are both clear, but the firm simply doesn’t have a sufficient number of bodies to carry out the actions required.
Depending on the nature of the challenge, a consulting firm can serve as a stopgap by seconding one or more
consultants to turn the situation around and to then hire someone to be employed by the firm.
2) Subject Matter Areas to Add Value
There is a consulting firm capable of advising on every business challenge or opportunity. The subject
areas are endless, from blue-sky thinking about any issue to working hands-on with the day-to-day implementation
of minutiae.
The following broad categories provide a small cross-section of the spectrum:
Strategy: This is ably covered elsewhere in this e-book. Topics might include:
– Where to compete and how;
– Finding growth markets and coping with declining markets;
– Entering new practice areas or getting out of unprofitable ones;
– Geographic strategy (cities, regions, and countries) — getting in, working profitably, or getting out;
– Innovating how work is done and progressing the firm’s operating model;
– Developing the firm’s strategic intent and business model;
– Implementing strategies to reach that intent; and
– Designing an M&A strategy, and deciding whether to merge.
23
The topic is too big: The expertise within the management firm simply isn’t broad or deep enough to
resolve the topic. For example, the management team knows that knowledge management is an ineffective way
to drive down costs, and the practice heads and management team have done all they can do within their level of
expertise. Consulting firms that are subject matter experts in a given area can fill in the missing expertise.
The topic is too politically sensitive: The expertise may or may not exist within the firm, but too many
of the partners involved in developing a solution either can’t sufficiently separate their own interests from those
of the firm or will be perceived by their other partners as having an axe to grind. For instance, changes to how
partners are remunerated or how their performance is measured and assessed often falls into this category. This
requires consulting firms that not only have the subject matter expertise, but are also experts in stakeholder
management and process design. This leads to partner involvement interventions that achieve a resolution passing
the required voting threshold.
The topic is too important to handle in-house: The expertise may exist, and the topic may not be all
that controversial, but the risk of getting it wrong is so great that external validation helps weld partners to a
decision that they will comfortably implement. For example, a firm has been approached by a larger firm that
seems like the ideal merger partner, the financials look good — but there is lingering doubt about whether the
combined platform really will increase profits or whether the partners of both firms really are as culturally —
behaviorally — compatible as the initial meetings and cocktails suggest.
There are too many topics: The management team knows there are many facets to a single challenge or
too many opportunities to pursue. For example, the firm has experienced sliding margins for the last five years,
its market is contracting, and prices (rates and structure) are under increasing pressure. Do we have a profile
problem, a business development problem, a pricing problem, a problem with our culture that our partners don’t
sell enough, a cost problem, or all of the above? This scenario requires less of a deep subject matter expert, but
rather a business consulting team that understands how law firms work, with an analysis methodology that
achieves a hard diagnosis, and helps management break down and prioritize the challenge.
Management capacity is too limited: Sometimes the challenge and the path to resolving that challenge
are both clear, but the firm simply doesn’t have a sufficient number of bodies to carry out the actions required.
Depending on the nature of the challenge, a consulting firm can serve as a stopgap by seconding one or more
consultants to turn the situation around and to then hire someone to be employed by the firm.
2) Subject Matter Areas to Add Value
There is a consulting firm capable of advising on every business challenge or opportunity. The subject
areas are endless, from blue-sky thinking about any issue to working hands-on with the day-to-day implementation
of minutiae.
The following broad categories provide a small cross-section of the spectrum:
Strategy: This is ably covered elsewhere in this e-book. Topics might include:
– Where to compete and how;
– Finding growth markets and coping with declining markets;
– Entering new practice areas or getting out of unprofitable ones;
– Geographic strategy (cities, regions, and countries) — getting in, working profitably, or getting out;
– Innovating how work is done and progressing the firm’s operating model;
– Developing the firm’s strategic intent and business model;
– Implementing strategies to reach that intent; and
– Designing an M&A strategy, and deciding whether to merge.
23
