Managing Strategically, Managing Operationally

At any time balancing these two critical facets of management raises challenges but perhaps now, more than any time in the recent past, in both the US and Europe, this requires a complex balance of analysis, judgement, sensitivity, resolve and courage of commitment.

More immediate, financial, economic and related considerations require firms to focus strongly on achieving particular levels of profitability to meet partners' expectations and to maintain performance broadly in line with peer group firms. A failure to achieve either or both will put at risk, at least to some extent, many firms' competitiveness both in terms of retaining the most ambitious and able partners and other lawyers and in terms of the financial attractiveness of such firms in the lateral market.

On the other hand, focusing very strongly on operational performance at the expense of investing in strategic development is potentially equally damaging. Of course, reducing investment in strategic development can assist firms achieve particular levels of financial performance in the short term. Remaining in cheaper, but inefficient premises, delaying upgrades in IT, cutting back on marketing and business development, reducing commitment to training and recruitment, holding salaries below the market norm and so on can all impact positively on profit margins, overall, profitability and profit per partner in the short term.

Taking 10,000, 100,000 or 1,000,000 Euros, Dollars or Pounds out of costs in this way can deliver a similar, or close to similar, increase in the bottom line.

The danger of any such decisions is that the impact on medium term competitiveness will be adverse and potentially, catastrophically so (assuming that the initial decision to make such investments was sound). Of course, all investment and expenditure decisions should be periodically reviewed and there is perhaps a validity in doing this more frequently in certain economic conditions. However, to overturn previous ‘sound' expenditure and investment decisions simply on the basis of current economic conditions is both short-sighted and potentially highly damaging. Of course, there is a need to be realistic and pragmatic and the adage of ‘cutting-one's cloth' is valid. There may also in some circumstances be some validity in the argument that ‘if we don't achieve particular results in the short term there will be no long term'. (Our experience, however, suggests that this argument is put forward in many circumstances where there seems to be limited justification).

The reality, however, as can be witnessed within both the legal sector and all other sectors of the economy is that those who fail to invest adequately in their development ultimately fail. The world of both fast moving consumer goods and industrial products is littered with examples of sound businesses that in pursuit of short term operational targets were compromised in their ability to invest adequately in their strategic development and consequently ultimately failed. Examples of such failures can also readily be found in the world of banking and financial services and other professional services businesses. (This is not to imply that all such failures in such sectors are due to a lack of investment in strategic development but undoubtedly it is a factor in many such failures).

The ‘balancing' challenge for many law firms between the short term financial demands and the need for investment in medium-longer term strategic development is, in fact, even more challenging than for businesses in other sectors. And the reason for this is as follows.

Some firms are currently ‘underperforming' their peer group and are doing so for reasons that are unrelated to their ‘fundamental competitiveness' (and by this term we mean their innate capability to perform at a level equivalent to their peer group). Instead they are underperforming for other reasons: perhaps they are significantly over staffed or over partnered and/or under leveraged. Alternatively, it maybe a consequence of how hard people do or are prepared to work; achieving 4/5 chargeable hours a day is simply not competitive in any part of the legal market nowadays, yet there remains a belief (or perhaps more accurately a forlorn hope) that because such levels of performance were historically adequate they remain so today. A third such reason for underperformance may relate to poor financial management: too high levels of work-in-progress, inadequate billing and collection procedures and so on - all contributing to unnecessarily low realisation rates. (Any firm that has a significant percentage of its billings and/or collections occurring in the last month(s) of the year (the year-end billing-blitz) is likely, at least in part, to be reducing its performance, and potentially substantially so, as a result).

The reality, however, is that most law firms that are underperforming their peer group are doing so for reasons directly related to their fundamental competitiveness and for such firms not to invest in their strategic development is a deeply flawed decision.

For firms that are generating below peer group average levels of profitability and margin due to a lack of fundamental competitiveness there has to be a significant and priority focus on building profitability back to levels comparable with competitor firms (or accept a market repositioning of the firm in a different, lower position in the marketplace); and to achieve this without investment and hence cost and impact on short term profit is highly likely to be an unrealistic expectation. Such investment is required, quite simply, to rebuild competitiveness to a point where competitive levels of profit can be generated.

Such investment may be in terms of restructuring, development of know-how and precedents, recruitment of new, higher calibre partners and other lawyers, targeted business development, upgrading of IT to improve service and/or reduce ‘unit' costs, development and implementations of new services and/or more effective and efficient means of delivering existing services, and so on. Clearly, such investment has to be directed at those areas that are most important in terms of building or re-establishing competitiveness and client research can here fulfil a critical role in helping identify such areas. Irrespective, however, of where the investment is required, it clearly will be required somewhere and to expect to regain competitiveness (and this we define as performance at least the equal of any competitor in the perceptions of target core clients) is blatantly naïve.

However, achieving such investment is no straightforward task when profitability is already below that of peer group firms and/or below partner expectations. It is, however, possible.

It requires above all else a partnership willing to accept reduced profit in the short term (in much the same way that some corporate businesses have to do so at times) in order to be able to invest adequately in building medium and longer term competitiveness and hence profit. Such investment maybe in terms of greater expenditure or in terms of reduced income - a consequence of some partners focusing increasingly on non-fee earning activities to build strengths and/or develop new opportunities that will contribute to the building of greater competitiveness, or it maybe a combination of the two.

In our experience those firms that have or currently are making such investments, even though current performance is below partners' expectations and/or that of peer group firms share a number of common characteristics. In particular such firms:

i) have a high degree throughout the partnership of commitment to a well thought out strategy;

ii) have a high level of loyalty throughout the partnership with shared values and ambitions;

iii) have an appropriate compensation scheme that encourages and recognises high levels of contribution and performance supporting the achievement of the firms strategic objectives;

iv) have a highly respected and trusted management that is closely in ‘touch' with the sentiment in the partnership but is nevertheless prepared where necessary to make and implement unpopular decisions.

In the absence of such characteristics it is far less likely that any firm will be able to make and sustain the level of investment required to build competitiveness and without such investment the future is likely to be one of failure.

Hence, a critical challenge for any firm is to ensure that it pays substantial attention to maintaining its internal fabric and cohesion, making it more likely to be able to make and implement difficult decisions should the firm find itself in the position where it needs to do so.

Interested in Learning More About Legal Hiring? Read the Definitive Guide: How to Hire a Legal Recruiter for Your Law Firm: How Law Firms Recruit Attorneys Using Legal Recruiters

About Harrison Barnes

No legal recruiter in the United States has placed more attorneys at top law firms across every practice area than Harrison Barnes. His unmatched expertise, industry connections, and proven placement strategies have made him the most influential legal career advisor for attorneys seeking success in Big Law, elite boutiques, mid-sized firms, small firms, firms in the largest and smallest markets, and in over 350 separate practice areas.

A Reach Unlike Any Other Legal Recruiter

Most legal recruiters focus only on placing attorneys in large markets or specific practice areas, but Harrison places attorneys at all levels, in all practice areas, and in all locations-from the most prestigious firms in New York, Los Angeles, and Washington, D.C., to small and mid-sized firms in rural markets. Every week, he successfully places attorneys not only in high-demand practice areas like corporate and litigation but also in niche and less commonly recruited areas such as:

• Immigration Law
• Workers Compensation
• Insurance
• Family Law
• Trust and Estate
• Municipal law
• And many more...

This breadth of placements is unheard of in the legal recruiting industry and is a testament to his extraordinary ability to connect attorneys with the right firms, regardless of market size or practice area.

Proven Success at All Levels

With over 25 years of experience, Harrison has successfully placed attorneys at over 1,000 law firms, including:

• Top Am Law 100 firms such including Sullivan and Cromwell, and almost every AmLaw 100 and AmLaw 200 law firm.
• Elite boutique firms with specialized practices
• Mid-sized firms looking to expand their practice areas
• Growing firms in small and rural markets

He has also placed hundreds of law firm partners and has worked on firm and practice area mergers, helping law firms strategically grow their teams.

Unmatched Commitment to Attorney Success - The Story of BCG Attorney Search

Harrison Barnes is not just the most effective legal recruiter in the country, he is also the founder of BCG Attorney Search, a recruiting powerhouse that has helped thousands of attorneys transform their careers. His vision for BCG goes beyond just job placement; it is built on a mission to provide attorneys with opportunities they would never have access to otherwise. Unlike traditional recruiting firms, BCG Attorney Search operates as a career partner, not just a placement service. The firm's unparalleled resources, including a team of over 150 employees, enable it to offer customized job searches, direct outreach to firms, and market intelligence that no other legal recruiting service provides. Attorneys working with Harrison and BCG gain access to hidden opportunities, real-time insights on firm hiring trends, and guidance from a team that truly understands the legal market. You can read more about how BCG Attorney Search revolutionizes legal recruiting here: The Story of BCG Attorney Search and What We Do for You.

The Most Trusted Career Advisor for Attorneys

Harrison's legal career insights are the most widely followed in the profession.

• His articles on BCG Search alone are read by over 150,000 attorneys per month, making his guidance the most sought-after in the legal field. Read his latest insights here.
• He has conducted hundreds of hours of career development webinars, available here: Harrison Barnes Webinar Replays.
• His placement success is unmatched-see examples here: Harrison Barnes' Attorney Placements.
• He has created numerous comprehensive career development courses, including BigLaw Breakthrough, designed to help attorneys land positions at elite law firms.

Submit Your Resume to Work with Harrison Barnes

If you are serious about advancing your legal career and want access to the most sought-after law firm opportunities, Harrison Barnes is the most powerful recruiter to have on your side.

Submit your resume today to start working with him: Submit Resume Here

With an unmatched track record of success, a vast team of over 150 dedicated employees, and a reach into every market and practice area, Harrison Barnes is the recruiter who makes career transformations happen and has the talent and resources behind him to make this happen.

A Relentless Commitment to Attorney Success

Unlike most recruiters who work with only a narrow subset of attorneys, Harrison Barnes works with lawyers at all stages of their careers, from junior associates to senior partners, in every practice area imaginable. His placements are not limited to only those with "elite" credentials-he has helped thousands of attorneys, including those who thought it was impossible to move firms, find their next great opportunity.

Harrison's work is backed by a team of over 150 professionals who work around the clock to uncover hidden job opportunities at law firms across the country. His team:

• Finds and creates job openings that aren't publicly listed, giving attorneys access to exclusive opportunities.
• Works closely with candidates to ensure their resumes and applications stand out.
• Provides ongoing guidance and career coaching to help attorneys navigate interviews, negotiations, and transitions successfully.

This level of dedicated support is unmatched in the legal recruiting industry.

A Legal Recruiter Who Changes Lives

Harrison believes that every attorney-no matter their background, law school, or previous experience-has the potential to find success in the right law firm environment. Many attorneys come to him feeling stuck in their careers, underpaid, or unsure of their next steps. Through his unique ability to identify the right opportunities, he helps attorneys transform their careers in ways they never thought possible.

He has worked with:

• Attorneys making below-market salaries who went on to double or triple their earnings at new firms.
• Senior attorneys who believed they were "too experienced" to make a move and found better roles with firms eager for their expertise.
• Attorneys in small or remote markets who assumed they had no options-only to be placed at strong firms they never knew existed.
• Partners looking for a better platform or more autonomy who successfully transitioned to firms where they could grow their practice.

For attorneys who think their options are limited, Harrison Barnes has proven time and time again that opportunities exist-often in places they never expected.

Submit Your Resume Today - Start Your Career Transformation

If you want to explore new career opportunities, Harrison Barnes and BCG Attorney Search are your best resources. Whether you are looking for a BigLaw position, a boutique firm, or a move to a better work environment, Harrison's expertise will help you take control of your future.

Submit Your Resume Here to get started with Harrison Barnes today.

Harrison's reach, experience, and proven results make him the best legal recruiter in the industry. Don't settle for an average recruiter-work with the one who has changed the careers of thousands of attorneys and can do the same for you.

About BCG Attorney Search

BCG Attorney Search matches attorneys and law firms with unparalleled expertise and drive, while achieving results. Known globally for its success in locating and placing attorneys in law firms of all sizes, BCG Attorney Search has placed thousands of attorneys in law firms in thousands of different law firms around the country. Unlike other legal placement firms, BCG Attorney Search brings massive resources of over 150 employees to its placement efforts locating positions and opportunities its competitors simply cannot. Every legal recruiter at BCG Attorney Search is a former successful attorney who attended a top law school, worked in top law firms and brought massive drive and commitment to their work. BCG Attorney Search legal recruiters take your legal career seriously and understand attorneys. For more information, please visit www.BCGSearch.com.