Top Tips for Changing times

Thanks to the recession and the forthcoming introduction of ABSs, the legal landscape is changing. Here are some hints to help you survive – and prosper

The landscape for solicitors is changing more quickly than ever before. The recession has hit home; it is said that more than 1,000 firms went to the wall in the past 12 months, with more bound to fail in future.

What’s more, the Legal Services Act is ushering in alternative business structures (ABSs). From 6 October 2011, insurance companies, estate agents, banks, supermarkets and others will be able to offer cut-price legal advice on conveyancing, wills, divorce and small claims.

The silver lining
However, let’s not get too maudlin. On the plus side, solicitors will have the right to add areas such as accountancy, wealth management and tax planning, allowing firms to expand.

There are some great opportunities to be had if firms can create them, and it’s up to owners to take the initiative. If you don’t want to be left out of this revolution, you need to find complementary organisations with whom you can create new channels to new customers. Ask yourself who you know who might be suitable for you to form an ABS with.

In any case, a regulated person will have to process the work sold by the ‘big brands’, many of whom won’t want to have expensive solicitors on their payroll. They’ll be looking to partner with firms who will work under their brand, but still in a separate company. Maybe that is the right opportunity for your firm.

Ten handy hints
Whatever happens, the opportunity to sit down and look at the future of your practice is no bad thing. In these changing times, firms will have to be more efficient, effective and properly financed than before to survive. Here are 10 tips to help you achieve those goals. And who knows, when you’re able to present a clear plan to your professional indemnity insurer, they might just look at your application more favourably.

1) Make a plan
The most fundamental thing you must do is to create a clear, written strategic plan. Use an outside facilitator for real success.

2) Act like a business
Set clear goals and actions, and control, measure and report your financials, sales, marketing, client satisfaction and staff morale.

3) Create products
Analyse who and where your market is, and what products and services the customer wants. The big brands will take over low-value processed work, so plan to reduce your dependency on this and move to other markets, or at least find ways to add value to these services. Create products – a named group of services with a defined, pre-agreed list of actions at a fixed price incorporating the phrase “terms and conditions apply�, allowing for work beyond the scope of the original agreement to be negotiated and charged for additionally.

4) Review your website
Your website is often the first port of call for a prospective client, so ensure that it works for you. It must at the very least be clear, up to date and appealing and in a style that matches your market.

5) Promote teamwork
Enlist your whole team – from senior partner to support staff – in the vision of a new future and encourage them to be ambassadors for the firm. Involve them and keep them informed of progress against your goals. If they’re doing well, tell them – they will feel proud of their achievement. Keep them in the dark and they won’t know if they need to put in extra effort. Reward good performance in front of everyone at your monthly team meeting.

6) Get the money in
Bill promptly and collect money early and often. Don’t wait for the conclusion of the matter (unless really necessary).

7) Work smarter
Reduce overheads. One particularly costly resource is tied up in the old-fashioned activity of transcribing dictation, which costs around £2 per dictated minute. Now an increasing number of firms are turning to Legal Speech Recognition. The system works tirelessly, 24/7, and for an unlimited use cost of around £25/week per fee earner. Then you can use support staff, released from typing, as fee-earning paralegals or in marketing roles.

Get out more
Choose your most gregarious team member and send them out networking and attending local business events.

9) Look after your clients
The best differentiator for your business is outstanding client care. This is one of the least expensive ways of creating a reputation, especially since good client care is (unfortunately) rare nowadays. Great client care is likely to lead to fewer complaints and lower PI costs – and your clients will tell their friends.

10) Process enquiries efficiently
At Legal Mentors, we regularly conduct ‘mystery shopping’ exercises on solicitors firms, and it is amazing how badly enquiries are handled. It’s difficult enough to attract business without making it so difficult and unfriendly to engage with a lawyer.
Martin Wyatt Director, Legal Mentors Ltd