A blog by Joel Barolsky of Barolsky Advisors

Archive for June, 2020|Monthly archive page

Does your law firm really need a barista?

In Articles, Commentary on 11 June 2020 at 2:14 pm

Full text of my opinion piece first published in the Australian Financial Review on 4 June 2020.

For the past three months, many law firms have been in crisis management mode.

The focus has been on ensuring staff safety, staying close to clients, sustaining productivity and shoring up financial reserves. The mindset has been mainly about conservation and survival.

It’s time now time to look up and to look ahead – to work out what’s needed to succeed in the next normal.

Here are four things to think about in creating your future.

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#1 Organise for a hybrid workforce

Most law firms will seek to capitalise on the success of remote working and will adopt a model in which people work two or three days a week in the office and the balance at home. While this offers benefits in terms of staff flexibility, reduced commute times and lower occupancy costs, the rhythms of office life will be very different from life before coronavirus.

Firms will need to help their staff create boundaries and new work habits. This includes setting clear ‘office hours’; finding new ways to socialise that replace the serendipitous corridor bump; ensuring consistent supervision of graduates and clerks; and providing regular and balanced performance feedback.

#2 Speed up decision-making and execution

During the ten days from March 16-26, most law firms discovered that if push comes to shove, they can execute big decisions very quickly.

My advice: keep going!

The short-term public health crisis helped concentrate decision-making power. And it appears that in the main those vested with that power acted promptly and professionally.

Firms should build on this experience and streamline decision-making processes for times when things are back to normal. It could mean less consultation on trivial matters, fewer meetings, better communication and greater respect and appreciation for leadership roles.

Most law firms are designed as network organisations with self-managed practice teams as nodes and a small central bureaucracy. In theory, this should make them agile and responsive, but the reality is often quite different. Firms should harness their structural strength to move earlier and faster.

#3 Plan and budget with less inertia

The coronavirus crisis has given firms the opportunity to assess the merits of every revenue and expense item.  Recent McKinsey analysis shows most organisations only reallocate 2 to 3 per cent of their budgets year to year. But those that do more—in the order of 8 to 10 per cent—create more value.

While starting each year’s budget with a blank sheet might be overkill, reviewing each item on a two- or three-year rotating cycle should ensure smarter allocation of resources.

Revenue targets might set with an honest assessment of market potential and how your team stacks up against key competitors. Expense items can be set with a clear-headed view on value creation.

#4 Personalise the client experience with scale

The client experience pre-coronavirus included numerous face-to-face meetings; document preparation shared via email; and multi-touch file handling.

The evidence from the past few months is that productive client meetings can still be held without a barista on call; documents can be prepared collaboratively in real-time and remotely; and that most aspects of file management can be automated.

In designing the firm of the future, think about creating a client experience that is personalised, streamlined and scalable.

This is the time to start imagining your firm as it should be. If you stay in conserve mode too long, you will land up being two or three steps behind those that are determined to create their own future.

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