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Thoughts on ways to improve the management of professional services firms

Friday, February 18, 2011

UK's Clifford Chance to open in Australia

In February 2010 I reported on plans by Allen & Overy to open in Australia - Allen & Overy to open in Australia, More on Allen & Overy in Australia.

The British law firm Clifford Chance has 3,200 lawyers working across 20 countries. According to a story in yesterday's Australian Financial Review - it's behind the pay wall -  Clifford Chance will merge with Sydney's Chang, Pistill & Simmons and and Perth's Cochrane Lisherman Carson Luscombe from 1 May.

The official press release states:    

"The importance of Asia to the global economy and to our major clients has already resulted in substantial growth for our market-leading Asia operations," said Peter Charlton, Clifford Chance's Head of Asia. "Any credible growth strategy for the Asian legal market can no longer ignore the importance of the Australian market to the region, both as a destination for, and a source of, investment. I'm pleased that in CP&S and CLCL we have found such a good solution for our clients, and I'm looking forward to welcoming the partners and staff of both firms to Clifford Chance."

In December, Lawyer's Weekly carried an interview with Ian Cochrane. This has nothing directly to do with the merger. I just found it interesting.   

Thursday, February 17, 2011

Management Perspectives merges with Managing the Professional Services Firm

After a far bit of thought and soul-searching, I have decided to merge Management Perspectives with this blog.

Originally, the two blogs were intended to serve very different purposes. However, I found that limits on my professional time meant that neither blog was getting proper attention. You can see that from the posts or lack thereof.

The merger means that this blog will carry a broader range of material without, hopefully, losing its original focus.

Wednesday, February 02, 2011

24/7 and the professional

Just because I haven't been posting here because of other pressures doesn't mean that I have forgotten this blog, nor the connected interests. I think about them all the time.

The title of We need a management revolution is pretty self-explanatory. In part of the post I talk about the problems a 24/7 world creates for we professionals.

I don't have a proper answer, just frustrations. I have dealt with elements in my discussions on the need for a discipline of professional practice, one that crosses the professional silos. Yet it's hard.

How do you deal with a just in time clients who asks for an instant response when they haven't thought the issues out?

Wednesday, December 08, 2010

The importance of a discipline of professional practice

Back in September 2006 in Towards a Discipline of Practice I began a discussion on the importance of the development of a discipline of practice that spanned disciplines. Here I said in part:

On the surface, the application of each profession in practice may not seem connected. What do, say, law and medicine have in common? At least this:

  1. Common techniques can be used to analyse the processes followed by professionals in their work.
  2. A least some of the elements in those processes are common. For example, both lawyers and doctors have to begin each engagement (matter in the case of the lawyer, consultation in the case of the doctor) with a diagnostic. Comparison of the different application of common process elements between professions can yield fruitful insights.

The commonalities between management of practices across professions are better understood. However, there is in fact a gap here.

If you look at the literature you will find a range of general advice and principles drawn from management. You will also find a volume of nitty gritty material classified under the general head of practice management. This is often encapsulated in specific practice management courses and qualifications.

The gap as I see it between the two, and I think that this holds even though David Maister among others has written on the topic, is the gap that Prem points to, the absence of a fully articulated philosophy of practice that takes into account the unique features of professional practice.

The link to Prem's comment is included in the original post.

Back in June in Reflections on professional experience, I said: 

I have been off-line for a little while simply because I have been thinking! Part of those thoughts relate to my own directions, part relate to the core focus of this blog.

Over the last few years, I have changed my mind on some issues. For example, I am a stronger supporter of partnership models than I was so long as the partners accept the limitations involved.

On some other issues such as the the profit per equity partnership concept, I think that they are just as dangerous as before unless very carefully defined.

Then, on some issues such as time based charging, I have formed the view that a lot of the discussion simply misses the point. Time based charging has its problems, but it still is the best approach in some circumstances.

I have also become frustrated about my inability to get advice across about the need for change.

Part of this relates to a purely professional question that I have discussed before. What do you do when your client wants advice that you know won't work or must be just plain wrong? Part of this relates to my own professional skills, my inability to get a story across. However, part also relates to current management structures and attitudes within professional services. Some of this is just plain wrong.

Over the next week or so I thought that I might record my conclusions from all my thought. It's hard for a professional to accept his/her failures. Yet if we don't, how can we improve? 

As so often happens, events intervened. However, experiences over recent weeks have reinforced the need to write something. Bluntly, we professionals are letting down our clients. Worse, we are sometimes doing it through our narrow definition of what constitutes professionalism.

I have no truck with approaches that guarantee clients higher costs and worse results, even accepting that clients are their own worst enemy!

So, given this, over the next few posts I want to continue my discussion on a discipline of professional practice.  

Wednesday, December 01, 2010

Blog performance November 2010

Stats Nov 10 2

End of month stats.

The  graphic shows visits (yellow) and page views (yellow plus red) for the year to end November.

The most visited posts over the last month have been:

Friday, November 26, 2010

Keddies, Slater & Gordon & the law

This cartoon is taken from the Sydney Morning Herald.

Shakespeare-420x0 In Corporatisation, Keddies and professional ethics, a post written back in July 2008, I reported on the problems faced by Australian law firm Keddies as a consequence of its billing practices. I gave a brief update in October 2008 in Keddies case threatens legal billing practices.

Although I really didn't say so at the time, I did wonder whether or not Keddies could survive. In fact, they did and have been purchased by listed Australian law firm Slater & Gordon for a reported $A35 million.

Russell Keddie, Keddie's founder, has admitted to the NSW Legal Services Commissioner that he was responsible for the gross overcharging of a client and plans to retire from practice.

All this has led to some scathing criticisms from regular legal commentator, the SMH's Richard Ackland.

I did wonder and still wonder about the wisdom of the Keddies' purchase. Time will tell.

Saturday, November 06, 2010

Canadian material on professionalism

In Lawyers like history, Christopher Moore reports on The Chief Justice of Ontario's Advisory Committee on Professionalism's 13th Colloquium on the Profession. The theme of this year's colloquium was History of the Profession: Lawyers, Legends, Legacies and Lessons from Ontario Legal History.

Chris's post led me to the Law Society of Upper Canada's page on the Advisory Committee. I mention this because the page contains links to material on professionalism, including papers from various colloquiums. I haven't had time to read the material yet. 

Wednesday, November 03, 2010

Blog Performance October 2010

It has been five months since I last posted here. You might think that traffic would collapse, but search engines have continued bringing people to this blog.Stats October 10 2

The  graphic shows visits (yellow) and page views (yellow plus red) for the year to end October.

The most visited posts over the last month have been:

Interesting that people issues continue to be so important after all this time.

Thursday, June 10, 2010

Reflections on professional experience

I have been off-line for a little while simply because I have been thinking! Part of those thoughts relate to my own directions, part relate to the core focus of this blog.

Over the last few years, I have changed my mind on some issues. For example, I am a stronger supporter of partnership models than I was so long as the partners accept the limitations involved.

On some other issues such as the the profit per equity partnership concept, I think that they are just as dangerous as before unless very carefully defined.

Then, on some issues such as time based charging, I have formed the view that a lot of the discussion simply misses the point. Time based charging has its problems, but it still is the best approach in some circumstances.

I have also become frustrated about my inability to get advice across about the need for change.

Part of this relates to a purely professional question that I have discussed before. What do you do when your client wants advice that you know won't work or must be just plain wrong? Part of this relates to my own professional skills, my inability to get a story across. However, part also relates to current management structures and attitudes within professional services. Some of this is just plain wrong.

Over the next week or so I thought that I might record my conclusions from all my thought. It's hard for a professional to accept his/her failures. Yet if we don't, how can we improve?        

Wednesday, May 26, 2010

Concept of sustainable profit

Only five posts this year. Talk about a useless blog!

Over on my personal blog, I have had two posts looking at profits (here and here). In the second post, I talked a little about professional services.

My problems with profits in professional services is two fold.

First, I Have come to feel that the overwhelming focus on profits is simply taking all the fun out of life, as well as creating clashes with our professional roles. Here I was talking to a former senior partner of a major law firm the other day who had decided to exit stage left.

Many things came into that decision. One was his feeling that his share of the profit pool, the attempts to increase the size of that pool and hence the size of his share, simply wasn't worth it. The extra dollars at the margin held little value.

Don't get me wrong, profit remains important. Without it, you can't do things. However, this brings me to my second point.

In thinking about profit, we tend to look to the immediate future. More and more, I think that we need to think about the concept of sustainable profit.

If the aim of the firm is to achieve maximum growth in profits per partner that's fine. However, it also carries costs in terms of life style and also risk. In many cases, a better question is how do we sustain our profit level, perhaps building in some growth, over extended periods?

This involves different strategic choices, as well as different staff management and investment patterns. It is both easier and harder to achieve. Easier in that the pressures are less, harder in that it requires action to insulate the firm to some degree from market changes. Survivability is increased, but at the cost of reduced maximum returns per partner.