Why change is necessary Peter Scott Peter Scott Consulting

PETER SCOTT CONSULTING Why adapting to change is necessary “It is not the strongest of the species that survive nor the most intelligent, but the ones who are most adaptive to change” Charles Darwin ‘Origin of species’

PETER SCOTT CONSULTING The forces driving change The changing needs of clients In order to provide clients with what they want, law firms need critical mass Breadth and depth of resource - people - Rise of the national firms - Global firms - Need for consolidation

PETER SCOTT CONSULTING Other drivers of change? Technology Economic forces Globalisation Political forces

PETER SCOTT CONSULTING Impact on legal profession? This will happen to your talent unless…… TALENT £

PETER SCOTT CONSULTING Are you struggling to attract and keep good people?

PETER SCOTT CONSULTING Financial Quality of work More opportunity Culture of firm Equity sooner Profile of firm Personal reasons Pushed out Number of times as 1 st or 2 nd reason Total number of mentions Why partners leave law firms

PETER SCOTT CONSULTING Do you have mechanisms to prevent the attrition of high quality performers?

PETER SCOTT CONSULTING If you have lost good people for any of those reasons……. Face up to reality

PETER SCOTT CONSULTING What is the real cost of replacing people? Disruption Recruitment fees Training of new recruits Effect on morale of people leaving Loss of relationships/clients

PETER SCOTT CONSULTING Face up to your sacred cows

PETER SCOTT CONSULTING How to improve your chances? Carving up the profits is not a substitute for making sufficient profits Is your average PEP above or below the average PEP in your markets? - if below, you will be AT RISK

PETER SCOTT CONSULTING strategies to help attract and retain the best people Your values and culture Career Development Training & Development Reward Performance Tracking & Feedback

PETER SCOTT CONSULTING Your values? What is valued in your firm? Do you reward what you value? Do you invest in what you value? What does it take to succeed at your firm?

PETER SCOTT CONSULTING Do you invest in what you value? Values Skills & Behaviours Performance Metrics – Quality /Quantity Performance Review Closing the Performance Gap Learning & Development Strategy

PETER SCOTT CONSULTING strategies to help attract and retain the best people Your values and culture Career Development Training & Development Reward Performance Tracking & Feedback

PETER SCOTT CONSULTING Reward - focus on the BIG ISSUES Align your reward strategies with your firm’s objectives - to help the firm achieve its VISION -its ability to COMPETE

PETER SCOTT CONSULTING strategies to help attract and retain the best people Your values and culture Career Development Training & Development Reward Performance Tracking & Feedback

PETER SCOTT CONSULTING Do you have a transparent partner admission / progression process? Do you have an associate / partner development programme in place? Do you ask your people about their career ambitions? Do you focus your investment in people to advance your and their objectives, rather than sheep-dipping people through training courses?

PETER SCOTT CONSULTING Do you have succession planning strategies? “Ahh….only 5 more years to go”

PETER SCOTT CONSULTING strategies to help attract and retain the best people Your values and culture Career Development Training & Development Reward Performance Tracking & Feedback

PETER SCOTT CONSULTING Do you invest in what you value? Values Skills & Behaviours Performance Metrics – Quality /Quantity Performance Review Closing the Performance Gap Learning & Development Strategy

PETER SCOTT CONSULTING Performance metrics Do you measure what matters?

PETER SCOTT CONSULTING To build your ability to attract and retain…. Do you have systems to manage relationship conflict?

PETER SCOTT CONSULTING “Relative worth” “I’m so marvellous.. …so why is he earning more than me?”

PETER SCOTT CONSULTING

Are we all going in the same direction?

PETER SCOTT CONSULTING Maister’s “Predictive package” “Client satisfaction is a top priority at our firm” “We have no room for those who put their personal agenda ahead of the interests of the clients or the office” “Those who contribute the most to the overall success of the office are the most highly rewarded” “Management gets the best work out of everybody in the office”

PETER SCOTT CONSULTING “Around here you are required, not just encouraged, to learn and develop new skills” “We invest a significant amount of time in things that will pay off in the future” “People within our office always treat others with respect” “The quality of supervision on client projects is uniformly high” “The quality of professionals in our office is as high as can be expected” Maister’s “Predictive Package”

PETER SCOTT CONSULTING A final thought…. “Change before you have to” Jack Welch

Any questions?