the legal profession
a strategiclandscape
VIEWS FROM THE FRINGE
Michael Nicell, Griffith College Dublin
IAM Conference - September 2014
Michael Nicell - IAM Conference 2014
strategy and the professional ethic
1. what perspectives and priorities prevail?
2. what are their causes and implications?
3. is there potential for improvement?
2
Michael Nicell - IAM Conference 2014
discoveries
3
Michael Nicell - IAM Conference 2014
narrative summary
BACKGROUND
• challenges
• literature and limitations
RESEARCH
• conceptual framework
• policy delphi stages
• data collection
FINDINGS
• despair
• hope
THOUGHTS
• contributions
• implications
• recommendations
4
Michael Nicell - IAM Conference 2014
professional problems
Intangibles
Managerialism
Identity and conduct
Tangibles
Downward pressure on
fees
Rationalisation and mergers
Regulation
Self-governance
Insurance and risk
International
Ownership and
incorporation
Virtualisation
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literature and limitations
• Professional Bureaucracy - Henry Mintzberg
• Managing the Professional Services Firm - David Maister
• Professional Firm Archetypes - Ackroyd, Brock & Muzio
• Drivers of change - Richard Susskind
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LIMITATIONS
• Descriptive
• Data sources
• Composition
• Constrained by existing models
• Relevance to Ireland
Michael Nicell - IAM Conference 2014
Michael Nicell - IAM Conference 2014
DEMANDS
CONSTRAINTS
CHOICES
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conceptual framework
Michael Nicell - IAM Conference 2014
conceptual framework
PURPOSE
PROCESS
CONTENT
CONTEXT
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Michael Nicell - IAM Conference 2014
policy delphi: research stages
SURVEYSTRATEGIC
LANDSCAPEPERSPECTIVES
AND PRIORITIES
QUESTIONNAIREVIEWS FROM THE FRINGE
CAUSES AND IMPLICATIONS
INTERVIEWSBILATERAL SOLUTIONS
POTENTIAL FOR IMPROVEMENT
QUASI-JUDICIALEXPERT
OVERSIGHTQUALITY AND RELEVANCE
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survey design
10Michael Nicell - IAM Conference 2014
Michael Nicell - IAM Conference 2014
survey participants .TOTAL: 73
Gender
Organisation Type
Firm Size (fee-earners)
Position
Experience (years)
45
45
23
26
10
26
18
20
10
47
2
7
14
27
15
(female)(male)
(state/inhouse)(law firm)
(4-29 F/E)
(owners)(juniors)
(10-15 years)
(30+)(1-3)
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12Michael Nicell - IAM Conference 2014
Michael Nicell - IAM Conference 2014
findings
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economic imperative 2 societal imperative 1
PROFITABILITY
“If your goal is anything but profitability ... you'll hit problems.”
• - Michael Porter, Author of "Competitive Strategy"
RESPONSIBILITY
“A merchant who approaches business with the idea of serving the public well has nothing to fear from the competition.”
• - James Cash Penney, founder of JC Penney
16 32 4 4 8 10
17 30 9 1 12 5
16 22 7 7 16 6
De
sira
ble
Fea
sib
le
A
pp
rop
riat
e
absolutely strongly slightly slightly strongly absolutely
14Michael Nicell - IAM Conference 2014
finding 1
economic imperative 2 societal imperative 1
PROFITABILITY
• “I think in practices there is limited scope for anything other than being a fee-earning solicitor, in terms of there being broader justice implications or whatever”
• “You cannot do good work if you do not have the staff and resources and these require profitability. We are not in this for the fuzzy warm glow, it is all about the money”
RESPONSIBILITY
• “Prior to entering the legal profession, I had mistakenly identified it as mainly based on a responsibility motivated industry and it is my experience that the profit motive looms behind
many actions, which is a pity”
• “If the goal is profitability then it’s not a law firm”
15Michael Nicell - IAM Conference 2014
finding 1
16Michael Nicell - IAM Conference 2014
Michael Nicell - IAM Conference 2014
strategy is for other people
Process
Analysis
Deliberateness
Evolution
Content
Resources
Responsiveness
Cooperation
Context
Compliance
Control
Local
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finding 2
Michael Nicell - IAM Conference 2014
strategy is for other people
18
finding 2
• Ambidextrous
• Choice over Compliance
• Resolves strategic tensions
• Inertia• Strategy not articulated• Shaped structure/processes
• Analysis over Experience
• Markets over Resources
• Responsive over Synergy
• Compliance over Choice
• Experience over Analysis
• Resources over Markets
• Synergy over Responsive
• Compliance over Choice
Defender Prospector
AnalyzerReactor
Michael Nicell - IAM Conference 2014
one size fits one
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finding 3
one size fits one
M A R K E T S
• “What’s the point in training up your staff in something that is useless? The reality is that you must focus on what clients will need”
C O M P L I A N C E
• “you can't abandon established practices without getting buy-in from the profession as a whole”
C O N T R O L
• “Decisions are hard to make. The people who stand to make a loss are the only ones who should have a say.”
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finding 3
R E S O U R C E S
• “the best way to compete is to be the best in your field”
C H O I C E
• “Generally I think sometimes the conservatism and entrenched structures of law firms stifles innovation”
D E V O L U T I O N
• “A strongly controlled environment lessens innovation, destroys collegiality and cooperation and ultimately leads to inferior service to clients.“
Michael Nicell - IAM Conference 2014
the solutions are to be found within
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finding 4
Thinking
• Resolve the tension by resequencing: experience informs the scope of analysis and is then reapplied to evaluate the analysis to make decisions
Formation
• Set broad goals to build in flexibility, allowing fee-earners to decide how they want to meet those goals and then commit to that
• Reduce the input required from senior solicitors by analysing the process, thus creating a leaner setup
Change
• Planning, testing and piloting before revolutionary changes allows continuity when they are being implemented
• Adapt the pace of change from revolution to evolution depending on the pace of change in the environment
Michael Nicell - IAM Conference 2014
the solutions are to be found within
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finding 4
• the wisdom of crowds
• validation and the human relations approach
• democratizing hierarchies
• the benefits of decentralizing strategy
• sharing the burden
the value proposition
CONTRIBUTIONS
• framework for analysis
• explores professional ethic
• insights into firm dynamics
LIMITATIONS
• central conceit
• generalisability
• untapped potential
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looking forward
IMPLICATIONS
• exposed to competition
• legitimacy under threat
• pressure on the partners
• solutions are available
RECOMMENDATIONS
• choose a side: defender or analyser?
• explicate the firm’s purpose
• get junior staff involved
• strategy audits
Michael Nicell - IAM Conference 2014 24
Michael Nicell - IAM Conference 2014
Michael Nicell
Phone: +353 (0) 86 816 4297
Email: [email protected]
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thank you