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The legal environment is more competitive than ever with law firms required to be as efficient as possible in delivering their services and to maintain an innovative strategy whilst producing high-quality advice.

Our team of experts can assist you in creating and implementing a robust Law Firm Strategy that promotes growth.

Free Initial Discussion And Quote

For a free initial discussion and for a no-obligation quote, please call us on 0330 133 8783 or email [email protected].

Process Improvement & Technology

Harnessing technology and reflecting upon potential process improvements creates a key tool for law firms to operate smarter, not harder. Employing the right tools can better allocate time and resources, driving efficiency, results and profits, however, implementing new technology can be challenging and costly so must be carefully considered.

Some key legal technologies are:

  • Matter Management and eBilling
  • Contract Management and eSignatures
  • IP Management
  • Legal Project Management (LPM) programmes
  • Document Automation
  • Blockchain
  • Social Networks

Whilst the firm’s existing technology may be sufficient, training may be required to allow the firm to harness the most effective practice of technology.

Skills Training & Leadership

Law firms are right to expect high performance and growth from their lawyers and with a strategy of offering training programmes, this can enhance lawyer’s development. Training has the potential to benefit all the staff at a firm, creating an inclusive environment, efficiency in work and improved client relations.

The benefits of applying training within the firm include:

  • Attract and retain talent
  • Cost-effective learning
  • Bring about real performance improvements
  • Win new clients through focused training
  • Train employees on the use of technology to increase productivity

Elements to consider when implementing training:

  • Areas of focus, e.g. diversity & inclusivity, managing finances or leadership and sales training
  • Is the training accessible to all? (COVID-19 and disabilities)
  • Feedback from clients and employees to implement into development

Development & Marketing

Legal service providers must harness their competitive advantage in the legal field to differentiate themselves from the numerous other firms. Marketing is a key tool to fulfil this.

The aim is to be at the forefront of a client’s mind in a positive way, as regularly as possible. Successful firms often carefully align their message to market the firm’s services to mirror the existing and potential client’s legal needs.

In any media, the considerations for the firm’s ‘message’ may include:

  • What is the firm’s unique selling point?
  • What differentiates the firm?
  • What is the firm’s narrative?
  • What are the firm’s strengths?
  • What is important for potential and existing clients in a firm?

Consider both passive and active marketing activities, a combination of these may be optimal.

Passive marketing concerns the promotion of the product or firm in subtle ways, allowing the customers to come to you.  This often requires low effort and implementation costs.

For example, a website which builds credibility around the firm’s messages by displaying awards, client reviews, and case studies to demonstrate expertise and commercial awareness.

Active marketing concerns a more intrusive approach, actively seeking and informing customers. This method often requires a greater effort and cost than passive but holds a larger return as a result.

For example, engaging with clients and applicants on social media platforms, adverts on Google and social media and email marketing.

For more information on how to market a law firm on the internet, check out our article here.

Talent Strategy

Law firms often face difficulties recruiting the right candidates from the mass of talent in the market. It is now more crucial than ever for law firms to attract the best candidates to allow firms to prosper through such challenging times. Any talent strategy should closely resemble the firm’s business direction.

Talent strategies often have regard to three ‘talent pools’:

  1. Partners and firm leaders – to drive firm-wide development
  2. Permanent employees – to be retained and developed
  3. Transient employees – to source their specific skills to assist the firm

The market is over-saturated with law graduates, with 60 per cent not even entering the legal profession. How can a law firm ensure it is appealing to those candidates best suited to their positions?

Considerations when creating a talent strategy:

  • The firm’s reputational value and employer brand
  • Salary, bonus and benefits
  • The firm’s internal ‘culture’
  • Ambitious D&I initiatives
  • Opportunities for employee progression
  • The firm’s awards
  • The firm’s extra-curricular opportunities (pro bono work/societies)

The size of the law firm will impact their talent strategy. Mid-sized firms may consider focusing their strategy to compete with large firms that continue to expand via mergers and acquisitions. Smaller firms can exercise flexibility given they are less restricted by fixed costs.

Pricing Strategy

The strategic balance of maintaining customer relations and improving profits is imperative to any prosperous law firm. With many law departments now seeking alternative fee arrangements (AFAs) rather than the conventional billable hour model, the pressure is on for law firms to maintain costs, quality and outcome.

Some common types of pricing strategies are explained below.

Billable Hours

How?  Measuring the fee-earners utilisation rate by recording time in six-minute intervals, often to a lawyer’s dashboard.

Pros: As the mainstream method, it is familiar with lawyers and clients alike. This can allow clients to clearly understand and compare the law firm’s work. It particularly allows firms to profit from long cases or adapt to cases where the workload is unclear.

Cons: It does not create a detailed analysis of individual lawyers’ contribution to the firm and can create ‘work hogging’ or incentivise inefficiency. This could put clients off seeking legal advice unless they deem it absolutely necessary to do so.

Fixed Fees Or Retainers

How? One price for a well-defined service, usually based off an hourly fee and assumptions of the case.

Pros: Provides clients with certainty of cost, allowing them to plan their finances more effectively. This method focuses on value over billable hours, encouraging lawyers to work efficiently in turn, adding value to cases.

Cons: The amount of work needed for a case may be over or underestimated; resulting in the firm being out of pocket or the client overpaying for services. This method of a large sum fee may be intimidating or feel risky for clients.

Contingent Fee Arrangements

How? The fee is based on a pre-agreed percentage of awarded monies from a case. If the case is lost, the lawyer does not get a fee but can require expenses paid.

Pros: Offers transparency and certainty to clients, shares the risks between both lawyer and client in turn allowing for low fee costs.

Cons: Could amount to a greater cost than billable hours for the client, no matter the duration as the set contingency fee is agreed at the beginning of the work. This can encourage lawyers to be case selective or negotiate a higher fee for ‘riskier’ cases.

There is no ‘right’ pricing strategy. Each law firm must consider both their own objectives and those of the client before selecting the most effective pricing strategy.

The Firm’s Priorities May Include:

  • Production costs (time and expertise to complete work)
  • Overhead costs, how important the client is
  • Reputational or conflicting risks

The Client May Prioritise Factors Such As:

  • The urgency of a project (timing)
  • Getting the right result
  • Considering alternative law firm offers

Firms Also Must Consider The SRA Transparency Rules As Law Firms Are Required To Publish Price And Service Information For:

  • Residential conveyancing
  • Motoring offences
  • Probate
  • Immigration (excluding asylum applications)
  • Employment tribunals (unfair or wrongful dismissal)
  • Debt recovery (up to £100,000)
  • Licencing applications for business premises
  • Services that are included within the displayed price
  • Services not included in the price but might reasonably be expected to be included

If A Firm Is Wishing To Increase Its Revenue, They May Wish To Increase Their Prices. Points To Consider When Considering This Strategy:

  • Overhead costs to the firm (rent, salaries, professional indemnity insurance premiums)
  • The regularity of cost increases
  • Improvements to services offsetting value
  • Third-party endorsements

How We Can Help

In today’s legal environment, law firms must deliver services more efficiently in order to compete. Clients are increasingly looking to reduce their legal spend, putting pressure on law firms to develop more innovative strategies to deliver high-quality legal services at cost-effective prices.

Our consultants work closely with law firm Owners, Directors and Practice Managers to stay ahead of their competitors by crafting and implementing strategic advice, business solutions and practical support to achieve sustainable and profitable growth for the firm and ultimately its clients.

We work with UK law firms of all sizes including a growing international client base. Our Consultants have a wide range of management consultancy experience specialising in the legal profession. We have also held senior roles in law firm management at a national firm. Our advice is clear, bespoke and discrete.

How To Get In Contact

As specialists in the legal industry, we can assist you wherever you are based. To learn more about how we can help you, then contact us today for a free initial discussion, please call us on 0330 133 8783 or email [email protected].

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