Category: Law

Crisis-driven change

The opening quote of Francesco Guerrera’s Analysis article in this morning’s FT caught the eye, “A crisis is a terrible thing to waste” (but then I don’t work at Citigroup, so hadn’t heard it before).

What struck me, however, and what is applicable to law firms as much as any other business was this,

Experts argue that although most companies see the need to reform in a crisis, many embark on the wrong kind of change. A common mistake is to go for across-the-board job and cost cuts that weaken the company without sharpening its core businesses. “The first thing you have to do is to protect and strengthen the core,” says Bain’s Mr Rigby. “In the same way our bodies allocate blood flow away from expendable extremities in favour of vital organs during a crisis, companies must make sure their best markets and consumers are protected.”

Driving change may be easier in times like these, but, as Guerrera notes,

In the middle of the worst economic downturn since the Great Depression, companies face a daunting choice. Do they exploit the tough times to lose the ballast accumulated during the boom years and make risky strategic changes in the hope of emerging as lighter but stronger organisations? Or do they adopt a defensive stance, trying to weather the storm without rocking the boat until their markets and the economy rebound?

“A truly diverse and inclusive legal profession”

I always enjoy John Naughton’s posts in Memex 1.1.

Yesterday, in Onwards and downwards, what struck me most was less his finding the report of Alan Milburn’s inquiry into social mobility in contemporary Britain “deeply depressing” than his conclusion,

But the wider problem laid bare with scarifying clarity by the Milburn report remains. And nobody — and this includes Milburn — has any real idea what to do about it.

And today I have finally got round to reading Alex Novarese’s post Law and the myth of social mobility in Editors’ Blog on Legalweek.com,

Does the legal profession have particular cause for concern? The basic fact remains that law, like medicine, is built on a foundation of structured academic learning, followed by equally structured vocational training. As such, law is not well equipped to overcome the weaknesses of the UK’s educational system. Interestingly, Milburn’s report also notes that the number of independently-schooled solicitors has fallen since the late 1980s, so on that yardstick there has been some progress. There is also the issue that law has a very structured career track, with clearly defined routes in, making it one of the more transparent of the aspirational careers.

There is an interesting comparison to journalism, which the report notes has moved from being one of the most socially inclusive careers to become considerably more privileged over the last 20 years. The report concludes that journalism is the only career in which the proportion of staff educated at independent schools has gone up (it was static or had fallen for all other professions, even for judges). There was also the hilarity of seeing one newspaper covering the report refer to journalism as a “former trade”, as if it had been transformed through the infusion of the privileged classes into an actual profession; my chosen trade has far more to be ashamed of regarding social mobility than law.

But the last word perhaps should come from Beth Wanono, in her Comment piece in the Law Society Gazette on 9 July, Managing Expectations. What she is writing about is not so much about social mobility and the legal profession as the very real and immediate challenge for those who aspire to be lawyers,

There is a difference between a crunch and a squeeze. My impression of the trainee market is that the situation is akin to 10,000 people trying to cram onto a train that can only hold 1,000. You could extend the tenuous analogy further and say the platform is already overflowing with those who couldn’t squeeze on to the last train.

This will only get worse. As Wanono remarks,

We have reached a stage where the balance between offering access to the profession and managing the expectations of those considering it has become dangerously tipped towards the former.

A different S word

Read Stefan Stern’s latest column in the FT, Time to get your strategy right. It has been a pretty grizzly year, and it is not getting easier fast, but we will come out of this recession: and professional service firms, like any other business, need to be ready. So, as Stern opens, “We need to talk about strategy” – but, and this is where it starts,

. . . business leaders ought to recognise, as they catch their breath after months of turbulence, that the strategy they were pursuing until recently is unlikely to be right for today.

It’s not just that markets have changed. Your organisation has changed. You may have all been through a near-death experience. Even if you avoided calamity, it is unlikely that colleagues are the same carefree people you remember from a year or two ago. Most businesses have been making serious cutbacks. Co-workers may be doing their best to look calm and positive. But they can see unemployment rising and know that sustained recovery is a long way off.

More on Generation Y in law firms

Finding the time to think is never as easy as it should be: the demands of a transactional practice leave little opportunity to step back and consider where a difference can and should be made. An email yesterday, which somewhat unusually I did not straight away consign to junk mail (the usual destination for unsolicited communication), took me to the Pennington Hennessy Blog and a short post on Generation Y, and from there to an excellent article in the FT (which had prompted the post), A to Z of Generation Y attitudes.

I have posted on this topic before, Graduate divas – don’t you love them (triggered by a Jordan Furlong post in Law 21), and it is, as some of my partners know, a particular hobby horse I ride. But that doesn’t make it any less important. What I found interesting in Alison Maitland’s FT article, is this,

Yet two studies into the attitudes of those Generation Ys that are in the workplace suggest that Carrie, Alex and their young professional peers are not as different from other generations as supposed – and not just because the recession has upset their expectations.

While craving excitement and challenge, nearly 90 per cent of Generation Ys describe themselves as loyal to their employer, according to the study Bookend Generations , published this week by the US-based Center for Work-Life Policy. In addition, nearly half of this tech-savvy and “connected” generation prefers face-to-face communication at work to e-mails, texts or phone calls.

But what sets them apart from us (and I am unashamedly a Boomer) is

the unprecedented pace of technological change, which shapes how they expect to work and why they resist boundaries; and the disappearance of the job for life.

Our challenge is how to engage with them.