peter scott consulting peter scott consulting briefing note may 2007

PETER SCOTT CONSULTING


Briefing Note May 2007


Developing clear and realistic strategy


Adapting to change ‘It is not the strongest of the

species that survive nor the most intelligent, but the ones who are most responsive to change’

Charles Darwin ‘Origin of species’


Challenging your thinking


Challenging everything about your firm as it is today

Your Firm?


Do you recognise any of these?


Are you forever pushing at a closed door?


Is this one of your major problems?

This will happen to your talent unless………

TALENT£


Do you have partner behaviour issues?


“That’s a great idea …for the rest of you!”


“Heavyweight gorilla”

“You can’t manage me.

I’m a big biller!”


“Ahh…only five more years to go”

Can you answer ‘YES’ to the following questions?


Is your firm firing on all cylinders?

Answer – Yes / No


Are all your partners hungry?

Answer – Yes / NO


Do you have the ‘right partners’ on board to help you achieve your goals? Answer – Yes / No


Are all your partners prepared to be managed?

Answer – Yes / NO


Are all your partners prepared to be accountable?

Answer – Yes / NO


Do your partners have sufficient financial discipline?

Answer – Yes / NO


Can you say your firm has no under performing partners?

Answer – Yes / NO


Should all your equity partners really be equity partners? Answer – Yes / No


Are there sanctions on a partner who refuses to comply?

Answer – Yes / NO


Is it clear who is running your firm?

Answer – Yes / NO


Are you prepared to change every ‘NO’ to a ‘YES’?

Answer - ?


Are you prepared to provide the LEADERSHIP required for change?


Developing your strategy

Understanding the process


Strategy is a continuous journey…

focus on BIG ISSUES make decisions

implement decisionsbank progressmove on


We need to understand the meaning of ‘strategy’

‘A realistic plan or course of action to gain competitive advantage; Which has clear and achievable objectives; andUses available (but scarce) resources (existing or to be generated)


What should be our realistic objectives in….

2008 / 9?2009 / 10?20010 / 11?


For example….Which parts of our firm are we going to:

Grow / invest in?Dispose of?


2008 / 9?WE ARE GOING TO earn PEP of£[ ]K

Is this realistic? – must be testedDo we all want this?


Differentiate strategy from…

An unrealistic and unachievable wish listImplementation of plans – ‘the making it happen’


Strategic thinking should not be routine or superficial

Thinking based upon sound

knowledge


Where to start?Strategic planning is a process of:

Logical analysis of internal / external forcesPlanning and decision-making based upon that analysis


In partnerships there is a particular need to focus on…

Internal attitudesExternal perceptions

in order to formulate a realistic plan


However something needs to be present first…

Leadership


Leadership…Thinking and visionaryChallengingInspirationalAbility to take partners with youA determination to implement change


Challenging leadershipThat challenges everything Above all leadership that is prepared to face up to a firm’s SACRED COWS


Internal attitudesCultureValuesBehaviour

What kind of firm do we REALISTICALLY

want to be?


Take an internal reality checkIssue a [confidential] partner / staff questionnaire to find out what your people REALLY think about your

firm.


External perceptionsDo you know what your clients think about your firm?Do you know what they want from your firm?

Often a perception ‘gap’


Take a reality checkCommission an external survey of:

Client/referrer opinionsClient/referrer reasons for using othersAnalysis of firm’s performance viewed by clients/referrers Benchmarking against competitors


What can a law firm learn from a client perception survey?

Highlights issues that need to be addressedPartners should not go into ‘denial’

‘they are not talking about us’! or ‘its not true’!


Value Clients Care AboutYour clients’ perspective

Not your own perspective

Is there a gap?


Some client perceptions…‘I don’t think they show adequate interest in our business’ ‘They are not proactive with their own clients’ ‘They don’t think laterally’‘They never visit, and they should if they want to increase the quality of the relationship’


How well do you communicate with your clients?

‘Out of sight, out of mind. They must ensure regular communication’‘I am not convinced I have their message or why they are different’ ‘Their profile is very low – they need to create more noise in the market’‘They must not assume that people know what they do’


Is lack of resource making you uncompetitive? Some of your clients may think so -

‘I don’t believe they have the resources’‘Sometimes they lack polish and quality in depth’‘Depth of expertise – I have only one partner to contact on a day to day basis, which is a little limiting…’‘City firms have greater depth of expertise’


The value gapIt is the client’s perception of value that mattersToo much emphasis on service attributesNot enough on helping clients achieve results


You will add value if…You provide clients with what they want – and moreAt prices they perceive to be value for money; andyou do this better than the competition


Each part of your firm needs to position itself…

Client

Perceived

Value

Client Perceived Price

High

HighLow

Low

Ave

Ave

X

Suicide Zone


Groups doing volume work

Where should they position themselves?

How should these groups work to add value?



Client

Perceived

Value


High

HighLow

Low

Ave

Ave

X

Suicide Zone


Volume / Low Value – Added Services

Value enhanced by - driving down cost - facilitating implementation of solutions

Low value –added groups will compete on processes and price – technology driven services with minimum professional input


Issues in providing volume / low added value services

Understand the need to move north to hold position - must constantly squeeze out more value for same cost

Invest in standardising processes

Ensure financial strength to stay the course

Avoid creating the perception of reduced “quality”


Other work types Where should these groups position themselves?

How should they add value?



Client

Perceived

Value


High

HighLow

Low

Ave

Ave

X

Suicide Zone


High Value – Added Services

Need to:Nurture wisdom/experience within the firmEnsure added value is perceived as valuable

High value- added services – strategic impact on client – generally wisdom/experience driven


Moving to High Value Added Services

Focus on specific client types / work typesSeek leadership in a few, cohesive segmentsUnderstand how brand influences PAV

- brand is about differentiating yourselves


Moving to High Value Added services

Do not add too much PAV – especially in a price sensitive market Focus cost reduction only where it will not jeopardise value addedEnsure added value is always perceived as valuable


Above all…

Be realistic


A final thought…“Change before you have to”

Jack Welch

Any questions?

peter scott consulting peter scott consulting briefing note may 2007

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