Survey of British law firms finds lack of support for leadership figures

A new survey of law firms across Great Britain has found that most managing partners and leadership figures do not receive enough strategic support.

Analysis published by Smith & Williamson found that 64 per cent of managing partners at respondent firms had little or no help in preparing for their role, and 26 per cent said their firm’s strategic plan is of limited use in driving the business.

Asked whether their firm effectively prepared them for their leadership role, 36 per cent of respondents said yes and 44 per cent said no. The remaining 20 per cent said the firm’s assistance was of limited effectiveness.

Giles Murphy, head of the professional practices group at Smith & Williamson, said: “Good management is absolutely crucial to a firm’s success. Without effective leadership and a clear strategy to drive the business forward in a rapidly changing environment, firms may fail to prosper.

“It’s therefore essential for firms to identify the right focus and adopt a strategic approach to all aspects of their business with short and longer term targets which are regularly reviewed.”

Sixty-four per cent of management teams surveyed said they have little or no support from non-executive directors (NEDs).

Mr Murphy said law firms are “missing out” on the benefits of non-executive director positions, which have become common among corporates.

Smith & Williamson’s research also showed that 25 per cent of respondent firms had not reviewed or updated their strategic plan in the last year, while seven per cent had only updated it in the last three years.

Mr Murphy said: “Local, national and international events take their toll and recent market volatility, the outlook for M&A activity and the housing market together with ongoing question marks over interest rates underline the importance of regularly reviewing and updating business plans.

“So if the business is aiming for organic growth, it will, at the very least, need to recruit staff and consider a range of projects to enable this ambition. It may also consider a merger or acquisition. But without plans to support these aims, the practice may lose any competitive advantage.

“I generally advise that a plan should take a one, three and five year view, but 65% of respondents do not look beyond a three year horizon.”

He continued: “Of course, agreeing a strategy is one thing, but implementing it is quite another. Managing partners and senior leadership teams need all the support they can get from their peers within the firm and the management board – but almost two thirds of respondent firms admit to having little or no support from non-executive directors.”