14 mastering change
Embrace change for future success, says Smith & Williamson
Many professional practices, from lawyers and accountants to architects and planners, need to future-proof their businesses as the economic recovery gathers pace.
Richard Green, managing partner and head of professional practices at Smith & Williamson’s South Coast office, and Greg Palfrey, who heads up restructuring and recovery services for the firm’s regional offices, explain why change should be embraced and offer top tips for professional practices
1 Traditions are being challenged – ’more for less’
As a partner in a professional practice, you’re probably used to charging fees on an hourly basis, predicated on the fact that you are a professional delivering a bespoke solution. However, clients’ perceptions and expectations are evolving, so professionals need to keep pace.
Your clients want more for less, so price can now be just as crucial as quality of service, timeliness and the advice itself. Courtesy of the Internet, buyers have more information than ever before as well as many new competitors. The online marketplace allows prospects to easily compare, so if your fees are considered too high or your service response too slow, clients can look elsewhere. Alternatively, you could end up working more hours for less money.
In the legal profession there’s been a fundamental change with the introduction of ’alternative business structures’, which allow non-lawyers to own and manage law firms. Legal executives and barristers can now set up client-facing businesses without the solicitor acting as intermediary or overseer.
• Tip: Lead and embrace change, although not for the sake of it.
2 Time-recording in jeopardy
Clients increasingly want the certainty of fixed fees and are turning their backs on the long-established approach of billable hours. So, should you reduce quality, timeliness or professionalism? Or do you tell the client to look elsewhere as you are not prepared to drop your standards? As the business model changes does your firm’s integrity and professionalism have to change too?
If you turn a client away and there is no work to replace it, you lose the income. Although it may be better to have something rather than nothing, this cannot continue without reducing costs.
www.businessmag.co.uk
handover to a younger partner would mean a smoother transition for the business.
It would also give
confidence to the newer partners and allow them to see the value in the business after the transition. There is no point arguing that the business has a high value due to your customer base – the new partners will be thinking that this will go when you do.
Simply being an eyes-down fee-earner won’t be enough in the future
Depending on how your practice is set up, you may need to find ways to support your new/existing partner group to raise funds to assist you at retirement through equity release. Let the new partners impress clients so they – not you – are seen as the future of the business. Having created a valuable asset, keep it that way so that it’s available as a realisable asset when you retire.
• Tip: Start the planning process early and allow yourself time to get it right.
Greg Palfrey
Alternative pricing models, lower profit expectations or high-volume standardised work may be the future.
Legislators are currently looking at whether the insolvency profession should be paid a fixed fee based on assets recovered. This could, of course, work both ways. A large, straightforward property sale may attract a high fee for little work, but it may mean that firms give up on cases which do not provide a good return.
• Tip: Be realistic – work out your approach and make it a success for you. Don’t let the market dictate to you. Be proactive and don’t lose the initiative.
3 Ignore the age profile of partners at your peril
If you’re a senior partner have you given serious consideration to succession planning? When moving towards retirement, many partners hold on to their top clients even though a managed
4 Information technology – the game-changer
The Internet has transformed the way clients buy services, so it’s important to adapt online. Type in ’legal advice divorce’ and you’ll get nearly 51 million results. Type in the same words, adding ’fixed fees’, and there will be some 18 million results. Your competitors are probably already there, working to reap a virtual harvest. They may also be adept at using social media, besides online tools which capture rich data for customer relationship management (CRM) purposes. Buyers will look on the web for recommendations, so make sure your firm is there.
When most professional firms are assumed to be offering a similar service, you need to articulate what makes your firm different and how this benefits clients
Simply being an eyes-down fee-earner won’t be enough in the future. Take an innovative approach to marketing, to include generating informative content.
THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – OCTOBER 2014
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60