Page 46 - 2019 - Leaders in Legal Business (q)
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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.
5) How to Hire a Consulting Firm or Consultant
In this section, I will provide an approach that works well for most law firm clients.
Initial consultations: When you know you’ve got an issue but you don’t quite know how
to define the challenge yet, or if you know you want to achieve something different from your
predecessor but you don’t quite know how to go about it, it is perfectly legitimate to call on a
consulting firm or a solo consultant. You can sound them out about how they would approach the
topic if they were in your shoes once internal resources and the thoughts by retained advisors are
exhausted. That initial conversation, or even two, should always be free of charge, as the consultant
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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.
5) How to Hire a Consulting Firm or Consultant
In this section, I will provide an approach that works well for most law firm clients.
Initial consultations: When you know you’ve got an issue but you don’t quite know how
to define the challenge yet, or if you know you want to achieve something different from your
predecessor but you don’t quite know how to go about it, it is perfectly legitimate to call on a
consulting firm or a solo consultant. You can sound them out about how they would approach the
topic if they were in your shoes once internal resources and the thoughts by retained advisors are
exhausted. That initial conversation, or even two, should always be free of charge, as the consultant
31
