Richard is typical of the law firm partners I talk to. “I can see that change is vital and I really want the firm to move forward, but following a partners meeting where we discussed and even agreed on certain changes, everything just carries on as before!”

Law Firms like Richards are not uncommon. But unless they do something and make some changes, they will go the way of Cobbetts, Wolstenholmes, Halliwells or Fox Hayes

There is no such thing as a bad law firm…only badly managed law firms.

Here is something else badly managed firms have in common;

Staff are treated like cogs in a machine rather than people.

Employees have no real sense of control.

Mostly, they are not big happy families as they would like you to think, but they are made up of silos where partners compete for power and credit and set their associates off against each other in subtle ways designed to undermine their rivals and make their own positions appear superior.

Don’t think that’s true?

Let me ask you a question.  Do you have a company handbook?  You would have been given it on the day you started and it would include all the administrative details that you need about internal phone numbers, staff holidays, pension plans and so on.

But what would you tell someone new about how things really work in the firm? One thing’s for sure is that it wouldn’t be anything in the handbook.  In reality it would be about how to manipulate bureaucracy to get things done.  Who has clout. What secretaries you can go to and what ones to avoid. Probably with advice on all the informal power struggles and advice on relationships to harness and ones to avoid.  In short it will be how to make things happen by calculating a route through the emotions of the people who work there.

And that’s why things won’t change at the firm. Nothing will change until the individual emotions of the top people in the firm change.

This was first identified in a book published in 1982 called An Evolutionary Theory of Economic Change by Professors Richard Nelson and Sydney Winters.

You won’t have to read the book because their central conclusion was that “much of firm behaviour is best understood as a reflection of general habits or routines…coming from the firm’s past”

The crucial word there is “routines”.  These routines or “ways that things have always been done” create a truce between the silos or warring individuals and allow them to carry on a day-to-day working existence that doesn’t kill the firm but allows it to plod on but the price is that it totally stifles innovation and change.

Another way to put it would be to say that underperforming firms are riddled with bad habits.

Now to the firm and the people working there it might not seem like there are any bad habits.  In the same way that an alcoholic won’t admit to a drink habit being a problem. “I drink, I enjoy it…what’s the problem?”

The problems for alcoholics are well known by everyone except the alcoholic.

Once an alcoholic accepts that there is a problem, he is on the way to recovery.

How does AA help alcoholics?  By turning bad habits into good habits.  They don’t try to take away the urge to drink, they don’t try to change the person, that doesn’t work. They simply replace a bad habit with a good habit one day and one small step at a time. And they use a sponsor and support group system to do it.

All that badly performing firms need to do is replace their badly performing systems with systems that work more effectively. Preferably with a qualified sponsor a support system, one small step at a  time.

There are lots out there, such as Shirlaws, Solicitors Marketing Success, Remarkable Law to name but 3.


And a great book for you to read would be: "The Power of Habit" by Charles Duhigg

Great heading isn't it?


I'm guessing you've come here looking for some tricks, tips and insider secrets that will take you and your firm out of the doldrums and back to the land of milk and honey (known to most lawyers as as Pre 2008)


Well the good news is that there are some tips.


But like anything worth having, they are elusive.

I could suggest to you that the best way to find out exactly how the most successful firms motivate themselves is to go directly to a website with a big list...then simply follow the list.  That would be too easy.

So I'll start with a story and a very short list.

About three years ago I was approached at a legal seminar by a partner of a medium sized firm.  He had read this blawg after someone recommended it to him and he knew I would be at the seminar, so he had done his homework on me and decided that I might be in a position to help him and his firm. (I know that because he told me).

Anyway, we chatted for about half an hour over pre-dinner drinks and it became clear to me that not only could I help him, but I could instantly save him about £100k in "overheads" ( and that was before even letting one member of staff go).  I didn't tell him this in so many words, but I did see a chance to formulate a great offer and a guarantee.  After all, his traditional law firm were very nervous about letting anyone know their true financial position and wanted to be absolutely sure that any spending on "consultants" would be money well spent.

So the offer was this; I will do a free initial consultation on the firm. That takes a whole day and involves most of the staff.  Following that, I will make my offer.

However.

I will only start work with you IF I can save you at least £100k in year one.  You will pay me a monthly fee.  If I cannot save you AT LEAST £100k then I will return any money you have paid me plus interest at 8%.

He admitted that it was a good offer and he would speak to the partners when he got back.

That was three years ago.

I have spoken to the partner about four times in the last three years and he "...still wants to do something..."

Yeah, good luck with that.  My last conversation with him in November 2012 was to say that my offer was withdrawn.

Why?

Obvious really. But I'll spell it out.

I used the guarantee because when it comes to the best way to get started, there is an easy format that states:

1. Identify something you want
2. Accept that there is something that you can actually do about it
3. It is within your means and
4. Taking action is within your level of acceptable loss (i.e the cost is minimal if the action doesn't work out)

Despite all that fitting in to place, they still have not taken action.

So, when it's put that way, there are only four logical explanations for why they are not:

1. Habit.
2. They don't actually have the means at hand
3. The perceived cost is too high. Or
4. They are lying to themselves about what they want.

The fourth is rarely the case. Most people setting goals who say they want to get a new job, or meet someone or lose weight really do want to find new employment, find that person or get thinner. As for habit, in this case, that’s “simply” a matter of getting used to taking action. 

So this means is if you aren’t taking action toward what you want, you either perceive taking action as either being too costly, or too risky.  Or for a room full of law firm partners...both of these!

What’s the solution? 

Reduce the cost and risk to acceptable levels, so that you could get under way.

That was done, but still no decision.  The firm were too busy (or in this case they all convinced each other that they were all too busy) to make any real decisions on their future.  This is commonly known as "...arranging the deck chairs on the Titanic..."

The simple fact is that they were too busy hoping that everything would return to normal and if they could just sit out the storm long enough they would be ok.

Real life is not like that and the sooner decisions are made the better.

And that's how successful businesses motivate themselves.

I remember years ago learning the 4 Ways to Grow any Business.


Some people say that Jay Abraham created the "4 Ways" and others say that it was Michael Gerber.  I think that I can go further back to a seminar in the late 1980's by a chap called Jackie B Cooper when they were listed in a workbook.


No matter who it was, I still recall the time when Mr Cooper talked about answering the phone.  He said, pick up the Yellow pages and call ten businesses at random.  And he bet that for eight of the ten firms answering, you would have no idea who they were.  The gist of the issue was that how you answer the 'phone can have a big bearing on how much profit you made.


And over the years, I think he's right.

Fast forward to 2012 and if you were to randomly call ten law firms, you would be hard pressed to make out who they were.

Then try this; leave a message and ask for a call-back from a lawyer.  I've tried it and guess what?  80% of them never called back. 

Now go to ten law firm websites, you would see the same old tosh on virtually every site, with nothing to differentiate them.

Things such as:

"We have been in business for 200 years"

"All our lawyers are legal experts"

or simple brochure sites where you can't call anyone or email anyone.

Two simple examples of what's wrong.  To become better, simply do the opposite of what failing firms do.

Answer the phone properly.

Make sure that your website doesn't suck.

But it doesn't stop there.  In reply to an email that I received from a lawyer who asked me why some firms survive and some don't, here are the Top Ten reasons why firms survive:

• Greater emphasis is placed on the delivery of current of legal knowledge to active fee earners.
• Everyone uses the right technological tools such as laptops, email and Internet.

• Lawyers paralegals and fee earners of all kinds practice in specialist branches of the law. Specialists are more successful than general practitioners.They choose the type of work which is plentiful and profitable.
  

• Money is spent wisely. The question is always: what is the return on the cost/investment? More specifically, successful firms spend more money on marketing, computer systems and software, productive employees, knowledge improvement and motivation of employees.

• A great deal of attention is given to accounting. Partners who regularly  look at cash flows, outstanding debtors, fees debited, work in progress, new matters opened, transfers from trust to business, bank reconciliation and other reports, almost always do well financially.

• Reporting to clients is better. In some matters one must report once a week to clients, in others once a month. But regular reporting to clients is an essential element of success. With today's technology, reporting by email is quick and effective. After all, more clients will leave a firm who is perceived as "not caring" than for any other reason.

• They pay better. Remuneration is based upon performance. A salary should only be part of remuneration. A major part of remuneration of any employee should be based upon fees which that person has generated. But more, the remuneration should be based on fees actually collected, in other words, the cash flow contribution of an employee.

• They spend time on recruitment and appoint the right employees. The right person for a particular position is vital. Spend more time in interviews and ask many more questions. Ask other staff members to conduct interviews with the prospective employee and require their opinions on personality, attitude, skills, including people skills, employment history and remuneration.

• They treat all employees as people, not as disposable parts of the business.  The receptionist is as important as any partner.  Treat her right!
• They follow up on enquiries with a systematised process.
• They use social media properly.

There you go.  Now you have the top ten, set to work and make sure that your firm is one of the firms that survives.

Despite all the negative press, the "lawyer" jokes and the uncertainty about where the legal profession is going - you won't be aware of this right now - but you have made one of the best decisions in your life so far; you have decided to become a solicitor.


Before we look at why that is so wonderful, let's just take stock of what you've achieved so far.


School's out
You have worked hard at school and secured the grades to get yourself a place at a decent university.  You have managed to slog your way through 3 or 4 years in that university, sending in coursework, attending lectures and tutorials and passing law exams. No doubt overcoming all sorts of obstacles from frozen computers (frozen flats !) lack of paper, loss of files, missed buses, hangovers, personal issues and maybe even personal tragedies. Despite all that, you not only passed but you must have got a decent pass because you were one of the few to secure a place on the Diploma course, which you must have also passed and then, joy of joys, you got a traineeship.


So to take stock of your life at this point, let me play with some figures to put this into some kind of perspective.


From 100 of your friends and peers who started secondary school, not all would have completed their final year.  Less still would have sat exams and even then, not all would pass.

So maybe 65 would still be in the running for a place at Uni.

Depending on when you applied, either all 65 or maybe 12 would get a place. But let's stick with 65 for now.

Not all would take up their offered place because they got a job, went on a gap year and fell in love or decided to carry on travelling or go for a Phd or some other degree.  There will be some who go on to collect degrees and do nothing else.


University Life

So 43 start their first year at Uni.

Some fall out with their tutors, their parents, their boyfriend/girlfriend or themselves and decide that Uni wasn't for them after all. And a few more fail to turn up for lectures or tutorials and are told that Uni is not for them after all.

There are 28 left.

Year two claims a couple more and year 3 another bunch fall by the wayside for one or all of the reasons above.

22 of you sit final exams.

8 fail.

14 pass but only a small number pass with a sufficiently high mark to get the offer of a place on the Diploma.

You and 3 others managed that.

But only 1 got offered a traineeship…and that's you that is.


Obstacles
But now as you prepare to start your traineeship, none of the above matters to your new employer because you still have some more obstacles to get over.

Your new employer chose you over a very large group of others who applied, so they liked what they saw on paper.

That just gets you in the door.

Now is the time to impress by demonstrating through action, that they made the right choice.


Add Value

You may have heard the phrase "Add value" before in many different contexts but what it means for you, now as you sit waiting on your first batch of work is this:

Adding value means going beyond the basic and obvious parts of being an employee.

Some employees that I have hired feel that by turning up on time they are doing me a favour.

Turning up on time, appropriately dressed, sober with all your domestic and personal problems left behind is the minimum required of any employee. So to rise above the masses here's what to do:

Don't ever bring your employer problems – bring them solutions to problems.

Saying things like "That's not my job", is the equivalent of saying "I don't want to work here"


Depending on the size of the firm you are working for, there will be different levels or strata where people operate.

Level 1 – Is for rank and file work such as data input, routine and secretarial work.

Level 2 – Is people who make sure that Level 1 work gets done; so they are supervisors, or junior lawyers.

Level 3 – Is comprised of jobs that create the work that Levels 1 and 2 do, such as directors , middle managers and associate lawyers..

Level 4 – Are higher level supervisory jobs to make sure that those at level 3 actually create the work and that the work they create is useful such as senior partners.

Level 5 – You have people who manage the supervisors of the work creators or the Chief Executive Officers and Managing Partners.

Underlying these levels is the time that each worker spends thinking about work.  The lower the level, the shorter the time.


Level 1 workers think in terms of one day to the next, whereas level 3 think in terms of months and Levels 4 and 5 think in terms of years.

This has been studied extensively and it was discovered that people are hardwired to think in differing time spans.  Most feel comfortable looking forward only a day or two.  Some can look months ahead.  But those who can see years into the future are very few indeed.

How far ahead do you look?

The further you look, the more value you can add.


Why is the Law the Best Choice of Profession?
Going back to what I said earlier, I said that deciding to become a solicitor was one of the best choices you've made.  I should also point out that I have met a lot of young solicitors who had no say in the matter; their parents/ Grandparents or significant other in their life decided for them.  If that's the case, you should probably take long hard look at what you really want to do….but for now let's concentrate on the benefits of being a solicitor and how this make you a better trainee.


The law impacts every area of life.  If you decide that on completion of your traineeship that you don't want to be a lawyer or you don't get offered a job as a lawyer, a whole new range of opportunities opens up to you.  You will have many more choices in the job market than other graduates or trained professionals. So as you deal with clients and interact with their information, make a point of getting to know their business as if you were to work for them.  It will enable you to see through the legal problems and make suggestions.


The law allows you to help people.  Simply knowing how to access the law, decisions and legislation puts you at a huge advantage as you go through life.  You will get lots of requests from friends to help them with their legal challenges.  Help them because the experience will help you.


The law is going through massive change.  The impact of the Legal Services Act, the recession and technology are opening up the law and the way it will be delivered in the future.  You are right at the cusp of the old way and the new way.  Respect the old way, but learn about the changes and above all consider how what you do affects the people you serve; your employer and your employers clients.


As long as your mission is to deliver new and better services to your employer and their clients, then you can't go wrong.


Finally
The fact that you've read this far is a credit to you.  Going forward, there will be lots more obstacles in the next two years for you to overcome.  There will be office politics (avoid), there will be bad employees that you come across (don't associate with them), there will be great jokes to e-mail to friends ( delete them). There is no one right way to complete a traineeship but there are many ways to screw it up.  Of the 100 of your friends who started this journey in 1st year at secondary school, you are the one with no history of screwing it up…so don't start now.  

All the best.