A second significant shift is the astonishing progress that many firms have made in the past five years or so in terms of developing their own people strategies. The 2008 Sunday Times 100 Best Companies to Work For listings were recently published and, to the surprise of many outside the legal profession, no less than 12 law firms made the grade. Five years ago, news of such an accomplishment would have been received in awe. Today, hundreds of law firms up and down the country have the hope and, in some cases, expectation of having their people strategies recognised by industry awards and achieving high league table positions. The availability of public information on their individual strategies (driven by both press interest and self-promotion) has certainly accelerated the learning and duplication of specific firm tactics. For example, a wide choice of benefits, flexibility of working times, sabbaticals, career breaks, secondments and re-training opportunities are now the norm rather than the exception. At the same time, recruitment and induction techniques incorporating such initiatives as assessment days, website recruitment, and internships are increasingly no longer a differentiator.
The dramatically changing employment environment and the realisation that ‘good employer recognition’ is no longer being seen as a differentiator both demand executive attention.
So, given this backdrop, what strategies should law firms be devising in terms of employee engagement for the future?
The winners in the next five years will be those firms that demonstrate leadership in three areas, namely:
- a real understanding of the relationship between behaviour and stated core values;
- those successfully linking the people proposition to an effective client service proposition; and
- a strategy for communicating internally that goes way beyond just sending information.
Behaviour and core values
Every law firm has embedded core values, whether or not they are captured in some form of values statement. Values are almost always a reflection of the behaviour of the people who lead - or have led - the firm. It is less likely that during favourable economic times, with the helpful backdrop of growth in both revenues and profitability, such values will be as challenged or open to compromise as during tougher times. A harsher test is likely to be when firms face, for example, the dilemma of whether to cut investment in such areas as training, development, IT spend or, particularly, staff numbers. Those tough choices will be facing most of us in the coming months and (possibly) years. Above all, the behaviour of your partners, individually and collectively, will be under the microscope. The managing partner of a mid-sized City firm recently asked for my thoughts on his current dilemma. The April 2008 results are likely to be ‘exceptional’, but in two departments a prudent drop of 20% in revenues is being forecast for next year. In the spirit of openness and transparency, the firm announces its annual results to all staff - including a comment on likely future performance. What should he do this year? I reminded him of his firm’s values, and also that his intelligent staff would be well aware of the economic backdrop both at a macro (UK) and micro (department) level. Statements do not count; values only exist through behaviours.
Lessons learned
In spite of the general leap forward in the quality and effectiveness of training and personal development, I still hear fee earners comment on what a good course they have just been on and what they have learnt, but what a shame it was that they were unable to practically apply any of it on returning to work. Did they really learn? This is particularly important where people need to learn about leadership, team working, developing client relationships and active client listening; in fact, all aspects of the client service proposition. It is about having the imagination and showing the leadership and confidence to give people assignments in the real world that will give them the client service experience to bring out and develop their talent. Then, partners and more senior staff must have the time and encouragement to give the individual feedback on what was good, and how it could have been even better.
Strategy for communication
Today, communication is as much about the behaviour of those communicating and the interaction with people as it is about content. However, common practice in law firms is often still reliant on hierarchy and a belief that once the information is out there, all people have been communicated with. We now have access to many more media and devices for communication, although in most cases we are abusing such opportunities by simply asking the new media to do the work of the old. The truth is that all firms now need a communication strategy that goes way beyond just sending information, and that is a rigorous and robust part of the business planning process. Has your firm’s strategy on communications radically changed in the last three years? Has it kept pace with the progress made with your people strategy?
In summary, for the employer, the key to a positive future is likely to be around having an employment brand that above all embodies:
- trust that the firm’s core values are not compromised by inconsistent behaviour;
- trust that in any downturn, the firm will continue to put its people at the core of its strategy; and
- trust to continuously create opportunities for its people to experiment, innovate and learn.
Great law firms will differentiate themselves by developing superior relationships with their clients and delivering exceptional client service. Having created a great place to work, attracting and retaining their people of choice, such firms will easily turn their people proposition into their client service proposition. The economic outlook may be less favourable, but law firms that demonstrate clear leadership in these areas will continue to flourish and top those influential league tables.
David Miles is a senior partner at BDO Stoy Hayward.