Law firm management is a perilous area. My own journey began by joiningthe then
management committee of my firm on a part-time basis.I underwent all the usual
preparation given to law firm managers, namelyschool, university and college, passing
exams and advising clients forseveral years. But for business management all that is
virtually useless.My interest in this area coincided with a holiday so I decided
that,rather than opt for Jack Higgins, I would examine the business section atManchester
Airport bookshop.It was a pivotal decision. I purchased Mark McCormack's What They
Don'tTeach You at Harvard Business School and Tom Peters' In Search ofExcellence.They
knocked Jack Higgins into a cocked hat, opening my eyes to theconcept of management as
a skill in itself.I have been fortunate since then to listen to presentations from some
ofthe world's leading management gurus and my bookshelves groan withmanagement texts.The
law has become a big business, with firms turning over substantialamounts of money and
creating employment. But law firms are fragilebusinesses.Despite the scale of turnover
in employment within the profession, many ofmy peers exhibit attitudes ranging from
indifference to downright hostilitywhen considering the application of modern management
thinking to thebusiness of law.Even at well-managed law firms, with strong growth and
profits records,management thinking tends to lag behind that found in major
corporates.Why is this? The reason is simple. There has been significant profit inthe
business of the law. But market forces are undermining that inherentprofit at a dramatic
rate.Competitive tendering, contingency fees and a host of other developmentsare sending
the same message from the market to the legal profession:clients feel they have been
paying too much and won't go on paying at thesame rate. They want better services for
lower fees.Our plc clients have faced up to these issues and their response has beento
turn management into a science. In doing so, they have been able tosuccessfully and
profitably grow their business.Some management theories can be a little wacky, some
downright wrong, butkey messages emerge. For example, genuinely listening to customers
andstaff, and embracing constant change management.Naturally, I am committed to seeing
my own firm thrive and succeed in thistough market, but I also wish to see the
profession do the same. I fear,however, that unless as a profession we embrace modern
management thinking,many firms will fail to compete in the coming years and will cease
to beviable businesses.