Five common reasons why law firm strategies fail
According to research conducted by Harvard Business School, 90% of businesses fail to execute their strategies successfully, and law firms in my experience are no different. So, having gone to the time and trouble of preparing a well thought out strategy which looks good on paper, why do many law firms struggle to implement their strategy successfully?
I have set out below five common reasons together with suggestions of how to avoid these common pitfalls.
Lack of clarity
Avoid adopting vague strategic goals. Instead articulate your vision as clearly as possible and adopt SMART objectives and goals so everyone in the firm understands the direction of travel, and what success looks like.
Lawyers do not like management jargon in my experience so instead use language that clearly communicates the purpose and direction of the strategic plan, so that employees are clear as to how their efforts contribute to the bigger picture.
Lack of buy in from the wider partnership
Lack of buy-in from the wider partnership is a major barrier for successful law firm strategy implementation. If partners are not fully committed to the firm’s strategy, pay lip service to it, and fail to lead on implementation, it will send a negative message to the rest of the firm.
No matter how good your strategic initiatives are, you cannot implement them alone. Successful strategy execution requires the support of all employees and stakeholders. So, the challenge is to persuade partners to row together in the same direction and champion the strategy throughout the firm.
Poor communication of the strategy
Clear and consistent communication is essential at every stage of the strategic planning and implementation process. Develop an open, sharing, and communicative culture with your staff which will significantly enhance the chances of the strategy succeeding.
Use different communication techniques such as all staff Town Hall style meetings to focus groups to 1:1 meetings and written Blogs, to ensure the strategic vision is communicated to all stakeholders throughout the firm and all understand the purpose of the strategy and how their roles contribute to its success. Regularly update the firm on progress at least quarterly, celebrate successes together and explain any changes to the strategy so that strategy implementation is kept “live” and everyone in the firm understands its importance.
Resistance to change
Involve your people in the strategy formulation process as much as possible because they will feel more engaged with the strategy and less threatened by the change as a result.
Employees who have grown comfortable with existing processes and routines may hesitate to embrace new strategies. For example, they may worry about job security or be averse to stepping outside their comfort zones. Positive Leadership will play a pivotal role in addressing resistance to change by communicating the rationale behind the strategy and supporting those staff that find change more challenging.
Lack of monitoring, evaluation, and failure to adapt to changing circumstances
Law firms should develop a culture of adaptability by regularly reviewing and updating the strategic plan ideally on a quarterly basis and embracing innovation and technological change. Law firms should set clear KPIs and set up regular reporting mechanisms so they can steer their strategies toward success and make timely adjustments when necessary.
Law firms that neglect monitoring and evaluation are at risk of missing emerging threats or opportunities. Strategy implementation is never easy but the rewards for those law firms that get it right are clear. As a recent PWC survey identified, businesses that invest more time and effort into strategy execution are three times more likely to report above average growth, and twice as likely to report above average profits than those that do not.
If you would like to discuss a strategy related issue with me, please contact me on 0791 666 9095 or email on ih@hopkinslegalconsulting.co.uk