Leadership Archives - The Cashroom

Does your firm have a plan for its future?

At The Cashroom, we have recently started extensive training programmes for our ‘Rising Stars’ and ‘Future Leaders’. The initiative is aimed at identifying key people for the future success of the business, and to start developing them to ensure they are able to perform and thrive when the time comes to step up the ladder. It made me think about my time in practice as a Solicitor, and the fact that I never came across any such deliberate and plan for future detailed plan for the future. Sure, there were appraisals and performance reviews which set goals, and identified areas for improvement, but they were concerned more with performing better in your current role, rather than planning and preparing for future roles, and areas of interest. Have a think for moment – does your firm have a plan for developing its key people for the future?

I deliberately say key ‘people’ because although you must plan for the future ownership of the business via the next batch of Partners, it is just as crucial that you plan for key staff, and older Partners too. The partnership agreement may provide a set retirement age, but retaining people as Consultants or Ambassadors for the firm beyond that may be crucial for retaining certain longstanding clients who have worked with that person for many years. Equally, Paralegals or Support Staff may have the deepest understanding of certain clients, or may be the ones who are in regular contact with them on an ongoing basis.

When developing these key people for the future, it is also crucial to find out what they want and aim for in their working lives. When was the last time you asked your staff what their career aspirations were? There are many reasons to do so – for starters, if you can’t offer what they are aiming for, they will leave at some point, and you need to know that. Secondly, the future wellbeing of your firm will need people to take care of the different areas of the business – not just the practice of law – so you need to find out if you have people who have an interest in being, for example, ‘Business Development Partner/Manager/Director’, ‘Client Relations/Complaints Partner’, ‘Cashroom Manager / COLP / COFA’, or ‘Managing Partner’. It is important to find and develop these people over a period of time, and also to think about these role specifications clearly so you are not setting people up for a fall. All too often, particularly the role of Managing Partner, is given to somebody without enough regard for whether they are the best person for the role, what the firm expects of them by way of splitting their time between fee earning and management commitments and, crucially, any sort of plan as to how they would return to a full time fee earning Partner role thereafter.

plan for future So, perhaps there is some food for thought here for discussion at your next Partners meeting. Do you have the same people in mind to take over the reins, and how are you going to equip them with the skills to do so? I would suggest putting a realistic plan together, with clear and achievable objectives, put it in to practice as soon as possible, and keep in regular dialogue with the people involved. They will likely be motivated by the opportunity, bringing better engagement immediately, and more seamless business continuity and succession into the future.

Gregor Angus, Senior Business Development Manager

The Cashroom Ltd

5 Common Questions about Outsourced Cashiering

When we are out meeting solicitors, explaining what it is that we do, and how we do it, they are often surprised at just how simple it really is to outsource your cashiering. We thought it would be worthwhile explaining some of our standard responses!

Do we need new ‘IT’, or learn how to use a new ‘system’?
We do not have a ‘system’ or software that we use, we simply access the accounts part of your existing Practice Management System remotely. So, all you need is a legal practice management system of some sort, and a means of us accessing it remotely. We also have a secure client portal which all of our clients are on, creating a secure environment for both The Cashroom and client to communicate without the cyber risks of email. This also avoids having to protect sensitive data via email. Training can also be given to ensure you are comfortable when using the portal.
Will we get a different person each time we contact you?
We allocate each client to a cashiering team, headed up by a very experienced senior cashier, essentially your ‘Head Cashier’. They will have a small team of people who will work with your firm, in order that holidays, sickness cover etc, are not a problem for you. You will get to know the two or three people working with your firm very quickly, and build a relationship with them. You can pick up the phone or send a query via our secure client portal to these selected people at any point and be ensured that someone will always be about to help.
Is it impossible to bring the service back in-house in the future?
We do not require you to use any new software/system, we are accessing your existing system remotely. Therefore, if at any point you wanted to bring the service back in-house, it would be as simple as recruiting a cashier, changing the username/password for our login to your system and online banking, and then our access would be terminated.
Is there a loss of control involved?
Some feel that by having ‘their cashiers’ offsite, they will somehow lose some of the control over what is going on. Clients tell us time and time again that they actually have a better understanding of what is going on by dealing with our cashiers. Before outsourcing, the cashier at their firm often controlled things, choosing what they wanted to disclose to the Partners. By outsourcing, it puts control back in the hands of the Partners of the firm, rather than the cashier, allowing the Partners to make the decisions and be more involved in what is going on in the firm!
Does it really save us money?
We can offer a saving of around 20-30% on the salary costs of inhouse cashiering staff. This will vary from firm to firm, depending to a large extent on how well they pay their staff, but in some cases the saving can be as much as 50%. There are additional savings, such as National Insurance and Pension contributions, the cost of additional office space which can be used by fee earning staff instead, the savings on recruitment / training of new staff, the management time of a Partner in dealing with appraisals, performance issues etc, as well as the cover for holidays/sickness.

If you are thinking about outsourcing your cashiering / accounts department, but have any questions, please feel free to get in touch.

Scotland – gregor.angus@thecashroom.co.uk / 07875 598 593

England & Wales – alex.holt@thecashroom.co.uk / 07817 420 466

The health and well-being of people working in the legal services sector

Mental illness is the leading cause of sickness and absence from work and like many other sectors, the health and well-being of people working in the legal sector is something that needs addressing. According to research 66% of solicitors feel high levels of stress in their jobs, and each year in the UK, 70 million workdays are lost to mental illness.

According to the recent ‘Stress in the Legal Profession: Problematic or Inevitable’ report by LexisNexis, legal professionals feel as though a level of stress comes with the territory. 75% of respondents were concerned that stress and mental well-being is a major issue that needs addressing in the legal sector. Over a quarter of respondents feel that more needs to be done to help and support colleagues struggling to cope with the rigours of the job. These startling statistics show that people feel more confident talking about well-being in the legal sector but feel more needs to be done to address the issue.

The health and well-being of legal service professionals has started deteriorating in recent years. Lawcare, a charity promoting and supporting good mental health for all in the legal community witnessed a surge of calls being made to their helpline in 2018.

The helpline received 932 calls in 2018. Of these calls, the majority were concerned about their mental health. 26% felt stressed by their jobs and 19% were starting to feel depressed. 11% of callers were anxious about their jobs and the service they are providing.

Almost half of all the calls received (48%) were made by legal professionals with less than five years’ qualified experience. The Junior Lawyers Division’s resilience and well-being survey also found a huge number of younger legal professionals struggling with work related mental health issues. This research clearly shows that the well-being of people in the legal sector spans all knowledge ranges and doesn’t discriminate between the newly qualified and the more experienced lawyer.

93% of respondents reported feeling stressed in their role the month before they completed the survey. Over a quarter of qualified members surveyed felt severely or extremely stressed.

The survey classed stress as being under too much emotional or mental pressure. When almost all of young legal professionals feel this way, it is clear that more should be done to improve the working conditions in the sector.

77% of respondents believe that their firm could do more to support those with stress at work with 87% looking for their employer to provide more guidance and support when it comes to mental ill health.

Whilst the call from those within the profession is looking to employers to do more, the reports also found that the majority of legal service providers are happy in their jobs, finding stress to be an unavoidable consequence of carrying out such an important service.

About The Cashroom

When the property market is causing enough headaches for legal service professionals, The Cashroom is ready to help ease the pressure on your law firm by ensuring compliance with the solicitor’s accounts rules, saving firms money and providing accurate and timely management accounts and management information.

Let The Cashroom worry about your firm’s legal cashier and payroll services so that your firm can focus its resources and time on providing expert legal advice to the consumer. Additionally, our management accounts and management information on budgets, cash flow projections and monthly management allow you to reflect on the work that has been completed and accurately predict where your firm is going in the future.

Why everyone should run a marathon!

I recently ran Manchester marathon. I wasn’t fast, and I wasn’t last – 3hr 31 min to be precise – but sometimes the time is irrelevant . I ran a marathon in 2014 (Edinburgh) and have run the distance a few more times at the end of Ironman triathlons (pre-– children!), but this time around was a little different. I haven’t slept much in the last few months (see earlier reference to children!), and had a busy few months at work and at home, so training was ‘minimalistic’ to say the least. However, aside from a ‘moment’ a few weeks before race day, I knew that I could get round alright. It wouldn’t be a PB, but I would complete the distance. And that’s when I realised that something had changed in the last few years – my perspective. Being able to run a marathon on minimal training was now my ‘new normal’, and I think there is a lesson in that: what you perceive as your ‘normal’ can vastly change over time, and your limits are almost certainly not where you think they are.

Perhaps you have thought about entering a 10k/half marathon/marathon, taking up a new hobby, writing a book, or doing some voluntary work. In your professional life, you might always have wanted to set up your own business, to expand your business into a new city, offer a new service, or change career completely, but convinced yourself that it’s beyond your capabilities, that you don’t have the necessary knowledge, or that you are too busy. If that sounds familiar, I would really encourage you to challenge yourself on this – it’s all too easy to find reasons not to do things! You are just as capable as that other person who has done it, or is in the process of doing it; the only difference is their mindset.

You don’t need to go in all guns blazing, signing up to climb Mount Everest next week, but decide what it is you want to achieve, and start taking small, incremental but consistent steps towards it, building momentum as you go. Those daily, weekly or monthly steps towards the goal, over time, are what make the difference. Once you have that consistent practice, what once seemed like a pie in the sky idea will come clearly into view, and be more than achievable. And once achieved, your perspective will have changed, in a positive way, forever. Even if your goal was to start a new business, and it wasn’t ultimately successful, going through the process, and making that your ‘new normal’, will change your outlook, and help you believe that it is not beyond your capabilities should a better opportunity arise in the future.

So, while I would encourage you all to run a marathon – I truly believe anyone can do it with the right preparation and dedication to training – your goal may be something quite different to that. The same principles apply though: identify what it is you want to achieve, commit to it, then train for it in a deliberate and consistent way. Very philosophical I know, but life is short, so set about doing the things you have always wanted to do. And remember, nothing changes if nothing changes.

Gregor Angus,

Senior Business Development Manager

The Law Society of Scotland launches mental health survey!

Mental health issues are being recognised more, especially in the workplace however there is always more we can do. The Law Society have now implemented a survey for Scotland’s legal sector urging solicitors, accredited paralegals, paralegals, legal technicians, and all support staff working at law firms and in-house legal teams to get involved and complete the survey. For us working in the legal sector, we are often helping others and finding ways for them to solve and deal with their problems, sometimes forgetting about our-self in order to help someone else. Along with our extremely busy and sometime stressful work we all have commitments and strains to deal with in our personal life too. It is vital for all of us to take a step back when needed and deal with our own health. And even if we do not have any existing mental health problems, ensure that we are all looking after our mental health as we do our physical health.

Alison Atack, the president of the Law Society of Scotland has said: “At the Law Society, we want to understand more about mental health issues within the whole of the legal sector, which supports around 20,000 jobs in Scotland, and examine what we may need to do to tackle any stigma that exists around mental health in the workplace and ensure people can access support when they need it most. I’m proud that we are the first professional body in Scotland to initiate a sector-wide survey of this kind.”

At The Cashroom Ltd we think this is a fantastic initiative from the Law Society and would like to encourage everyone to participate in this survey – CLICK HERE TO PARTICIPATE.

Mental health is becoming extremely common within the workplace now and is now one of the main causes of sickness in staff members. A massive 70 million working days are lost every year in the UK due to mental health issues which is costings businesses around £2.4 billion per year.

It is common for people not to talk about their feelings especially in the work place due to the fear of being discriminated, feeling ashamed and embarrassed or the not knowing how people will react. We should now be creating workplace environments for people to feel safe enough to be themselves and speak out about how they are feeling.

At The Cashroom we have a confidential phone line available to staff which goes to trained mental health professionals that they can call 24 hours a day (you wouldn’t let yourself or even a colleague treat your cancer would you?).The Mindful Employer creates a safe place for staff to call and also has a lot of useful information on its website for staff. We also encourage all staff to look after their mental wellbeing by allowing time during the working day for staff to complete a daily mile outside in the fresh air and we have fresh fruit delivered weekly. We also have our mental health charter displayed in the office for staff to see.

It is also Mental Health Awareness week so what better time to complete this survey and take some time to think about you and others mental health.

TOP TIP: Ask yourself, would you know if you or someone else was being affected by mental health, could you recognise it? There can be a lot of different signs and symptoms related to mental health but no one should be afraid to get help if they are having difficult feelings. Things to look out for in work are, feeling more tired than usual, finding it extremely difficult to motivate yourself, short tempered, isolating yourself and avoiding colleagues.

Chloe McGinn

Marketing Assistant

Top 5 Tech Products For a Successful and Efficient Law Firm

I work in marketing and so part of my day involves checking social media and reading up on tech legal news. Today I was really struck by how Tech focussed the profession is becoming – gone is the image of the lawyer surrounded by paper and difficult to get in touch with.

Now everything is electronically stored and you can even read an email on your watch. It is really beneficial for lawyers to be aware of potential opportunities through the use of technology and at the minute there is more of it available than ever to help your firm function better and more efficiently.

In our everyday life we are surrounded by advancing technology, smart TVs, apps to control your central heating and our cars aren’t far away from driving themselves! We need to embrace technology (many already are!) in the workplace too. As well as technology, the workforce is focusing more on work-life balance and flexible working than ever before. I believe the two go hand in hand.

Below are 5 techie products that I believe would make running your law firm easier and help you get more out of your working hours.

My top 5 tech finds

The Link App

Nobody understands working in a law firm better than a lawyer and this product is designed by a Lawyer for lawyers. This app puts client communication at the core of your business. At the touch of a button you can keep clients up to date with their case. Client cases can be accessed at any time of day, at your desktop or on the go. A happy client comes back again and again; and are your best referrers!

Amiqus ID

Anti-money laundering, identity and compliance checks online. Ok, so I know that not many people get excited about this process, but the checks are there to protect the profession and Amiqus ID is a fantastic product which makes the process and checks much quicker and is cost effective too. When you just want to focus on managing incoming client care, Amiqus can securely handle the money laundering checks and on boarding.

Breathe HR

As a growing business, we have discovered that HR is really important. But you don’t need to pay for someone in-house. We took our own advice and outsourced but in the form of an App called Breathe HR. There are a lot of these products out there but this one works great for us. Staff holidays and sickness can be logged easily and teams can view when other members have holidays booked. Staff contracts and documentation can all be stored in one secure place and it is easy to claim expenses and have them go direct to your accounts department. A great all around company tool.

The Cashroom Portal

Of course our Cashroom portal! We are an outsourced accounts department for legal firms and we also provide management accounts and payroll services.

We have been developing our very own portal, it is a secure method for clients to send their instructions to us and both organisations benefit from a full audit trail, it is extremely user friendly.

You will always have your own dedicated cashier however with the ability to add attachments and comments to the portal the need for phone calls and emails is minimal. An efficient and compliant accounts department should be a top priority for every law firm. Download our client portal presentation here.

E-CPD

CLT Scotland are now offering e-learning CPD -you can now gain the necessary CPD hours by fitting it into your own schedule, you could even do it from home wearing your pyjamas (if you wished!) Topics include the Criminal Justice (Scotland) Act 2016, powers of attorney and social media law. I really think that CPD without having to leave your desk is a great idea.

If you know of any other products then please let me know, we are always looking for tools that can benefit our clients.

Emma O’Day

Marketing and Communications Manager

New work types & mitigating the risk involved

The legal profession has had so many challenges in the last few years that many firms haven’t survived, and many have only survived because they have made effective changes.

We are seeing a trend of firms wanting to review the types of legal work that the firm undertakes. If you are looking to take on new work types, there are some key areas where good planning, due diligence and robust risk assessment will pay dividends and avoid catastrophe.

The work type
What are the factors that are driving the decision to expand your range of legal services? The usual driving force is to look at which areas are currently busy and lucrative A trend is emerging where personal injury firms are looking to start up or acquire a conveyancing department.
Whilst PI and conveyancing are both process driven work types the challenges and the risks involved are very different

Dealing with client money
A conveyancing department will usually mean that your accounts department becomes very busy and you need to ensure that you have the right support in place to cope with the number of transactions taking place. Complying with the SRA Accounts Rules and ensuring that you handle client money correctly is imperative.

Once a matter has completed residual client balances must be dealt with. Fee earners must take responsibility to keep on top of this to ensure that you do not hold client money longer than is necessary.

The Team
When recruiting prepare role profiles that you can use when advertising the job and carrying out interviews. You will need to set out your expectations to new people, and if you are recruiting a Head of Department they will need to be able to support you by supervising the legal work and be an effective manager.

Support staff – do you need more secretarial support or will your fee earners be able to be self-sufficient?

Alternative options – consider being able to outsource the cashiering or typing or buying in interim practice management.

Templates, documents and workflow

Prepare & develop a compliant suite of templates that are approved and ready to use for your new and unfamiliar work type.
Incorporate them into your case management system
Provide training for the team so that they are familiar with them and can process them efficiently.
Technology
Ensure your accounts package, document/case management system is appropriate for your new work type. There are additional modules or packages for specific work types.
Buy enough licences in time for your team to function properly.
Ensure that the broadband will cope with your planned systems.
Quality Standards, Lender Panels & Portals
Applying for a quality standard such as CQS membership, apply to be on lender panels, or set up the firm on a portal for a specific work type – allow at least 6 months.
Your cash flow may be affected if there is a gap in being able to take on new work.

Denise Butler is Director at Peacock Risk Management
www.peacockriskmanagement.com

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Would you like a risk-free 2017?

I’ve never been a very keen gambler. The occasional office sweepstake for the Grand National is the limit of my daring. I just hate losing money on things outside my control.

Gambling with someone else’s money (see what I did there) would be even more scary I think. I spoke at a conference the other day hosted by Armstrong Watson Accountants, alongside Xyone cyber security specialists. It was pointed out that law firms are like mini banks, but without the security. It’s one of the reasons that more than ever law firms are under attack from these new-fangled cyber criminals. You’re probably yawning right now- “Not another hacking blog?” but no!! Grab yourself a coffee because I think we need to talk in a more broad sense about ‘Risk’.

After the strange global occurrences of 2016…Brexit…Trump…Leicester winning the title…Ed Balls on Strictly…it seems that we live in very uncertain times. It’s never easy to predict what is going to happen with 100% certainty, however putting the right measures in place can provide a solid yet agile basis to withstand risks while enabling your business to still remain highly functional.

This is all inspired (as many things are) by a business lunch- this time with Jake Fox (an independent Insurance broker of some note!). I mentioned the ‘mini-bank’ anecdote to Jake and we agreed that more than ever, a firm must pay close attention to its risk profile. As Jake pointed out, it’s crucial to look at it from the perspective of Professional Indemnity insurers. The insurer is quoting you a premium based on how risky they think your practice is and that relates to much more than just cyber threat. They will consider your previous track record of claims for negligence, the strength of the sector you operate in, the accuracy of your accounts procedures, your history of compliance with the SRA, the robustness of your IT systems for resilience as well as security, and the general quality of your people- both those within your organisation and those providing services externally.

Over the next couple of months we will explore ways to combat risk, and you’ll be relieved to hear that I’ll be roping in some far more qualified friends to provide guest articles around the subject. We will have Business Continuity specialists, cyber geeks, Compliance gurus, all augmenting some hopefully informative content from us around best/safe practice cashiering, and how better quality management account information supports decisions on business strategy.

So as we look ahead to what may be a turbulent 2017 I’d like to wish everyone a very Merry Christmas and a Happy and Risk-free New Year.

Alex Holt
Director of Business Development at The Cashroom Ltd

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The Top 5 Challenges Facing the Legal Profession

In recent years, the legal profession has had to face many challenges and make constant changes to keep ahead of the game.

1.Winning work at the right price

Depending on your work types you will usually quote an hourly rate or a fixed fee. You may also have a fee structure which includes a success fee. Whichever way you price up the work you are calculating the time that is likely to be spent on the matter, the challenges involved in delivering the work and the risk to your business. Knowing your market is crucial as is delivering the work efficiently. The LASPO, the referral fee ban and the cuts in legal aid have meant that many firms have had to change the way that they work and look at taking on other work types.

2. Ensuring that the work is processed efficiently & profitably

Once you have won the work your team need to deliver the service in an efficient and profitable way. Utilising a case management system along with other available technologies is often the key here. Keeping on top of your housekeeping and monitoring the work capacity of each fee earner is also an essential part of the supervisory procedures.

3.Cashflow

Billing and collecting in the fees in a timely fashion is the lifeblood of the firm. Monitoring WIP as part of the supervisory procedures, and incentivising fee earners to take money on account and keep a check on their clients’ payment record, should form part of the regular activities in the firm. Residual client balances can build up and this needs to be managed carefully to avoid breaching SRA Accounts Rules

4. Profession Indemnity Insurance premiums

Keeping your PII premium down is a challenge and a source of stress every year. Robust risk management, dealing with any complaints quickly so that they don’t turn into claims, and achieving a quality standard such as Lexcel are all positives. Develop a good relationship with your broker/insurer so that they understand your business and can help you as much as possible.

5. Compliance, regulation & changes in legislation

If there is a change in legislation or regulation it can have a huge impact on your business if you are not prepared and cannot make changes quickly enough. You need to review your Business Plan & risk assessment every 6 months to keep on top of what is happening in the profession and how to deal with it.

You need to be compliant so that you meet your regulatory obligations. The key to compliance is good organisation, the right policies and procedures and regular monitoring. If you build these into your business processes you will develop a robust and realistic way of working and stave off damaging behavioural challenges and a poor risk profile.

Denise Butler is Director at Peacock Risk Management
dbutler@peacockriskmanagement.com
www.peacockriskmanagement.com

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Cyber Security in the Legal Profession

The Scary World of Cyber Crime – Cyber Security in the Legal Profession

Cyber Security is a term that, in my experience, only experts know much about. It comes with connotations of espionage, complex cryptography and enough jargon to choke a donkey. But the one thing we all know is that it’s vitally important. So, a horrible combination.

Well, recently my eyes were opened to the world of Cyber Security, and its real world effects. We had a solicitor client who’s clients email account was hacked. The criminal then monitored the account until the solicitor asked for their client’s bank details. That email was intercepted and a “fake” reply sent with bank account details, diverting the funds to the criminal.

Now this happened, via a breach of a solicitors client’s security, not the solicitor’s …. but imagine if your email accounts were hacked. Imagine the havoc a sophisticated criminal could reap? If, like me, it makes you break out in a cold sweat, you really need to do something about it.

Which is why the Cashroom has invested time and money in engaging with a specialist firm of “ethical hackers” to help improve all aspects of our data security. I had an image of a skinny teenager in a baseball hat sitting hunched over a computer in a darkened room a can of red bull by his side. I’m happy to say that Xyone (https://www.xyonecybersecurity.co.uk/), were nothing like that! They took us through their Cyber Essentials course, and carried out various “penetration tests” on our systems and our (soon to be released) client Portal. While a lot of what they did was beyond me, much of it was simply educating (or reminding) staff about simple things –password security, email discipline etc.

I’m happy to say that, with a few tweaks, we came through the course, and passed the penetration tests. We’re as secure as we can be, and I’ll lose a little less sleep worrying about cybercrime.

And we have a certificate!

David

The Cost of Charisma

When you think of a good charismatic leader, who do you think of? The common response is to think of those leaders that have a high profile, particularly in the media, such as Richard Branson or maybe even Alex Ferguson. They are very different but both seem to share one thing; charisma.

However, what do you want from your leader? It might be the same qualities demonstrated by the two individuals mentioned. Or it may be something that feels altogether different. Because when we consider a leader that is much closer to home, it might not be just about what they can do but also how they make us feel.

The charismatic leader has many qualities that can never be underestimated. Their ability to engage an audience, to inspire an individual to want to follow them, not just because they have to. The charismatic leader can not only do this with their peers, colleagues and employees throughout an organisation, but also with clients and valued stakeholders. They seem to have an energy that attracts people to them, with enthusiastic ears, always willing to listen to what they have to say.

It is important that people trust what their leader says. This can also be the case with the charismatic leader, but not always. And whilst the charismatic leader ignites passion and purpose in the short term, what about long term strategy and results? How important is it to know that the leaders can not only open their little black book of contacts to generate significant revenue now, but also to set their organisation up for success once they have left to move on to pastures new or to retire. It is common practice for a new Chief Executive to already have their ‘exit strategy’ in place, on the day that they arrive, very often with their anticipated ‘end date’ being within three to five years. Does this promote a vested interest in the long term or just the short term? How will they be rewarded on departure, on achieving certain targets during their period of tenure, or securing them long after they have left?

Jim Collins, author of ‘Good to Great’, considers this in his Harvard Business Review article from 2001. He studied organisations that had gone through significant transformation and analysed their performance not just after a brief period of time, but after fifteen years, to see which ones had successfully embraced the changes to secure long term results. He then analysed the leaders of those organisations to see what qualities they had to ensure such a significant achievement. Collins looked at 1,435 ‘Fortune 500’ companies to study which companies passed the test of ‘cumulative returns at least three times the market over the next fifteen years’. Only 11 did and as he mentioned these were not a sample but rather the ‘total number that jumped all the hurdles and passed into the study’. Interestingly, the study did not begin with the sole purpose of analysing the senior executives, rather looking at which companies had the ability to jump from ‘good to great’. However, as the study progressed it was noted, ‘we can’t ignore the top executives even if we want to’. Collins identified two key components that were common to all these ‘long term leaders’ regardless of sector, size of organisation or time of transition The two key qualities were humility and determination.

The results of the article ‘Level 5 Leadership: The Triumph of Humility and Fierce Resolve’ may sound counterintuitive today but when the article was published it was ‘downright heretical, the corporate scandals hadn’t broken out and almost everyone believed that CEO’s should be charismatic larger than life figures’.

This falls very much in line with the idea of ‘Servant Leadership’ identified in 1970 by Robert K. Greenleaf, the idea that the leader ’holds’ that position in order to make sure the organisation is secure, flourishing and set for success so the next leader can take over the mantle to continue the good work, always with the philosophy of doing what is best for the company. With one eye on the present, the servant leader also has one eye very firmly on the future, way beyond the date of their own exit. It has to be said the charismatic leader is most certainly capable of determination and also humility. Just because they might be an extrovert, a visionary, a great speaker, and a good relationship-builder does not mean they are not humble, but it has to be that way. The charismatic leader must ensure, and demonstrate, that their primary role is for the benefit of the organisation, not themselves.

So what does this mean in practice to have one eye on the present and one eye on the future? It actually means making the most of the skills they inherently have. Whilst they do have the energy and personality to attract the attention of all involved, to be a visionary and to paint a picture that people aspire to, it cannot just stop there. The great leader will not only paint such an inspirational picture of the potential that is available, but will also articulate this with complete clarity. As a result, as an employee, not only do I see the vision of the future but I know exactly the role I play in order to allow the organisation to reach its full potential, because I will be reaching mine. I will understand the very purpose, the core, of what the organisation represents, be given clarity regarding the long term strategy, and understand our short term objectives. I will understand what I am doing, when and why. Not only that but the successful leaders of today will understand that the directive ‘tell and do’ leadership style is now outdated, that the true transformational leader will be empowering, an ideas generator rather than an ideas giver, a coach and motivator, as clearly identified by Bernard M. Bass 1985 in the work on ‘Transformational Leadership’ (later developed with Bruce J. Avolio). They will be collaborative, allow people to take part in the decision-making process where possible. They will give people a voice.

The leader here understands the significance of the next generation, ensures a clear and robust succession plan is in place, so when they depart, there will be a confidence that the legacy left is one that will see the organisation into the next decade, or even century. Also, that the younger generation actually want to step into the shoes of their elder leaders, that such a position is attractive, empowering and worth waiting around for. Already the younger generation not only understand that the ‘job for life’ is unrealistic, but they don’t even want it.

The great leader also paves the way for the next leader. What if the next leader is by nature, quiet and more reflective? They may think they have big shoes to fill, and they will, but to be given the seal of approval by the outgoing, and possibly more popular leader, genuinely and wholeheartedly, is important. And the next leader can rest assured, that although maybe quieter and more introspective, maybe not as natural at public speaking or radiating energy, they might just have a couple of qualities that do come more naturally, the qualities that Collins recommends so highly, humility and determination.

Katherine Farnworth

Reference

Jim Collins, ‘Good to Great: Why some companies make the leap and others don’t’, 2001.

Jim Collins, Harvard Business Review ‘‘Level 5 Leadership: The Triumph of Humility and Fierce Resolve’, 2001

Bernard M Bass, ‘Transformational Leadership’, 1985 (developing the original work of James MacGregor Burns, 1978 and laBruce J. Avolio)

Robert K. Greenleaf, ‘The Servant as Leader’, Essay, 1970.

Should I Stay or Should I Go?

I recently came across an article from January 2014 which reports that only 68% of junior lawyers aspire to become a Partner. Perhaps more interestingly, of the 1800 lawyers surveyed worldwide, just 37% of those aged 26-30, and 43% of those 30-40, viewed law as a job for life. I suspect that a similar survey a generation ago, or even 10 years ago, would show a vastly different result.

The key concern identified was flexible working, and a desire for a better work/life balance. It made me wonder whether the legal profession has fallen behind others in terms of technology, or alternative, more flexible, ways of working. Perhaps it is just the nature of a lawyers’ work, or the fact that a reduction in available work has meant lawyers having to do more work, and resultant longer hours, to make the same fee income as they did 6 or 7 years ago.

The other article I came across was again on the The Lawyer website . It reports that Mishcon de Reya, the international firm with offices in London and New York, have told their lawyers they can work as many or as few days as they want. In other words…unlimited holidays! They can also work anywhere they want. Sounds good doesn’t it?

For those who have felt awkward about working from home for a morning / day, for fear of it being deemed as ‘skiving’, a culture where this is the norm sounds great. In my personal experience, working from home is in fact often far more productive. With nearly every firm operating a time recording system of some sort, or means of tracking fee income per fee earner/Partner, those sitting at home watching Jeremy Kyle would soon be caught out anyway.

So, the point is – will we see more of this in the future, as a way of firms retaining staff in the profession, and in their firm? It could also mean that large firms need less office space, thereby saving on rent, heating and lighting etc etc.

The flipside is that some will say the arrangement at Mishcon de Reya will actually result in people taking less holidays. Without the ‘structure’ that comes with an annual holiday entitlement, will people compete with each other to take the least holidays? One key phrase that Mishcon de Reya state is that the flexible working is unlimited, ‘as long as it doesn’t affect their clients’. Will it mean that lawyers can never fully switch off, or leave work behind?

I am interested in your thoughts on this, and whether such measures at your firm would actually make a difference to your views on whether law is a career for life?

Gregor

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