Last week, I was honoured to give a 40 minute webcast presentation for the Lawit Group (based in Mexico and Houston). You can view it here .
The Innovators: Simon Tupman
Tell us about yourself
I started out as a litigation lawyer in London specialising in criminal defence. After five years, I became dissatisfied with my working life and so, after gaining a post-graduate degree in business administration, I ventured into the field of business consulting. After emigrating to New Zealand in 1992, I worked with Auckland law firm Hesketh Henry for two years as their first ever Marketing Manager before deciding to work for myself. Since then, I have been mentoring lawyers and law firms internationally. I live in Ohakune.
What does legal innovation mean to you?
Innovation is more than improvement. It is about being inventive and creating valuable new ways of delivering legal services. Innovation is fostered by the culture of an organisation. The culture of law firms (and the legal sector) is generally conservative, hence, relative to other industries and professions, I would suggest that many law firms would be in the ‘late majority’ or even ‘laggards’, to use Everett Rogers’ definition.
What role does technology play in innovation?
Technology is a valuable tool that lawyers can use to make innovation happen. It has the potential to bring about much needed changes the legal system and also to improve the accessibility and affordability of legal services.
What pressures are organisations facing in the delivery of legal services?
At the time of writing, New Zealand is in the midst of a COVID-19 lockdown. As a result, legal organisations are facing some unprecedented pressures. In the short term, there is the need to simply keep operating and to safeguard cash flow. In the longer term, organisations will have to be more inventive, collaborative, tech-savvy and customer-centric if they are to have a future. Transition will be swift; there will be added pressure on organisations to adopt a fresh approach to leadership; people from all corners of the organisation will be encouraged to step up and lead, irrespective of their tenure or title.
What developments do you see in how legal services are delivered?
Automation is redefining how many legal services are being delivered. Consequently, many traditional roles are being eliminated; conversely new role are being created thereby introducing new skill sets into legal organisations. Market dynamics, not the regulator, will determine the shape of the legal services industry and an array of technological platforms will work to help organisations deliver legal services much more effectively.
What opportunities has legal innovation brought to you?
I have been able to achieve better results working with organisations who already have an innovative mindset and culture, who are receptive to new ideas and who don’t like to stand still.
What are some of your tips to start innovating or developing an innovative mindset?
COVID-19 has exposed many legal organisations who may have been less than innovative in the past and who now find themselves particularly vulnerable. Leaders of those organisations now have no choice but to change the mindset of their culture. Innovation starts with uninhibited thinking that challenges the status quo. Look around, both outside and inside your organisation for trends, ideas and solutions. Be totally transparent about the reality of your situation and involve all your stakeholders in finding new ideas and solutions. Start by asking them these three questions:
‘What do we need to do as an organisation to survive and thrive in future?’
‘What do we need to keep, let go of, add to, or change?’
‘How can we better serve our clients in future?’
Why is it important for legal professionals to continue to learn about legal innovation and leveraging technology?
Legal professionals play a significant role in society by helping people and businesses get ahead in life. We are now living in the age of the ‘Fourth Industrial Revolution’, - a digital revolution that is transforming the way we work and live. Lawyers are very much a part of this world so they had better adapt or face the consequences!
Andrew King (andrew@lawfest.nz) is the organiser of LawFest, and the founder of the LegalTech Hub.
Following my posting of 15 April, I have facilitated a couple of further virtual meetings with law firm leader groups this week. Additionally, I have run a short snapshot survey of some of the issues that are of concern. You can download the summary here.
Virtual groups
The groups are small and participants (Partners, CEOs, Practice Managers) are generally from small to medium-sized law firms from Australia and New Zealand. The issues being reported in this summary should be viewed in that context. Judging by the feedback, many participants have been finding these Zoom virtual group sessions very helpful at this difficult time. Everyone has been really open and generous with their experiences, ideas and thoughts to date. Thank you all. If you would like to be part of these group discussions in future, please click here.
Overview
Now that Alert Level 3 has come into play in New Zealand, there appears to be a growing sense of optimism that things are getting, or will get better, - at least in the short term. While many firms’ cash flow appears to be in good shape with receipts for April being ‘surprisingly good’, there are concerns about cash flow in two to three months’ time as the impact of reduced chargeable hours and new instructions are felt. Practice areas that appear to be robust are employment and commercial property while residential conveyancing is dead in the water (for now)! Commercial, litigation and family work appears patchy. Teams appear to have adapted well to working from home; they are well-organized, and in constant communication with colleagues (and clients), including via social events. Psychologically they appear to be in good shape. Most New Zealand firms have taken advantage of the government wage subsidy with one or two looking to repay it back should their income not meet the 30% threshold compared with last year.
Specific points:
- Reduction in Partner drawings is common (up to 50%);
- A need/desire for business coaching has emerged, especially in the areas of leadership and business development skills (See me –I can help!);
- Level 3 in New Zealand has given teams a psychological lift;
- Working from home (at least one day a week) may become the new norm;
- Firms have used the downtime to improve on and implement some operational initiatives, e.g., accelerate the implementation of three-year plan; embed practice management software;
- Some staff who are less than busy are being redirected/redeployed to explore new opportunities for business/practice growth.
Useful links
Social media is flooded with articles and links on the latest pandemic developments.
Here are just a few that you may find useful:
COVID survey by my UK-based Law Consultancy Network colleague Simon McCrum:
Article by Robert Ambrogi. 7 Ways The Pandemic Will Forever Change Law Practice
Article by Eric Seger of US law management consultants, Altman Weil
Coming up: 14 May, 12noon – 12.30pm (NZ time) Law Chat webcast: Life During and After COVID
Simon Tupman in conversation with Mitch Kowalski.
Earlier this week I moderated a couple of virtual meetings via Zoom with around 24 leaders from small to mid-sized law firms New Zealand and Australia (15 – 350 staff range). On both meetings, I was also joined by Sam Bassett, Director of Accountants Moore Markhams in Auckland. He has a significant client base in the legal sector in New Zealand.
Here is a summary of those discussions.
Overview
The main challenge for all firms at the moment is business continuity. Some firms appear to be riding out the storm quite well, while others may be struggling to maintain momentum or are facing a downturn. Over the past three weeks, firms have transitioned from a reactive/panic mode to a proactive/planning mode. Firms reported many positives to have come from the disruption, particularly among their teams who have adapted well by being kind, open-minded and supportive. Some leaders have reported that the lockdown has even brought about beneficial and potentially long-lasting change.
Priorities
The main priorities for firms have centred on cash flow, communication and colleagues. These are discussed in more detail below.
Cash flow
Many firms are keeping a keen eye on cash flow. Most appear to be in good shape until June by when the effects of the lockdown will have kicked in. Some key points:
▪ Cash flow is increasingly becoming a concern for many firms;▪ Some firms (in New Zealand) have taken advantage of the Government wage subsidy while others have yet to decide whether to apply;▪ Some firms have been able to negotiate a rent reduction with their landlords, reporting immediate reductions from 50-100%, while others have received no concessions at all;▪ NZ firms are being encouraged to make their GST and provisional tax payments on 7 May if they are able to.▪ Some firms are reporting a reduction in new matters (up to 50%), a reduction in working hours (20-25%) with a similar reduction in salaries/drawings.▪ The Law Society of New South Wales has cut its membership fees from $410 to $10 for the 2020-2021 year. Questions were raised as to whether the New Zealand Law Society would reduce practising certificate fees or allow monthly or quarterly payments to improve firms' cash flow.
▪ Cash flow is increasingly becoming a concern for many firms;
▪ Some firms (in New Zealand) have taken advantage of the Government wage subsidy while others have yet to decide whether to apply;
▪ Some firms have been able to negotiate a rent reduction with their landlords, reporting immediate reductions from 50-100%, while others have received no concessions at all;
▪ NZ firms are being encouraged to make their GST and provisional tax payments on 7 May if they are able to.
▪ Some firms are reporting a reduction in new matters (up to 50%), a reduction in working hours (20-25%) with a similar reduction in salaries/drawings.
▪ The Law Society of New South Wales has cut its membership fees from $410 to $10 for the 2020-2021 year. Questions were raised as to whether the New Zealand Law Society would reduce practising certificate fees or allow monthly or quarterly payments to improve firms' cash flow.
Communication
As one Partner suggested, ‘communication is king right now.’ Thanks to a variety of technologies, communication in firms, both internal and external, appears to be going very well, and in some cases even better than before the lockdown! Firms are using a variety of tools, including Microsoft Teams, Zoom, WhatsApp, Jabber, and Slack for team meetings, private internal communication, client meetings and social get-togethers. Most people have been quick to adapt to using the technology though one firm reported that its older lawyers have been struggling to get up to speed!
Colleagues
All colleagues are now operating from home. Some have seen a dramatic reduction in work while many others are as busy as ever! In spite of this, firms say that working from home has gone better than anticipated. Generally, their teams are in good spirits and have responded very positively to the enforced change. In spite of the slowdown, no firms reported redundancies or furloughing of staff, although some firms have implemented 4 day weeks. As one Partners said, ‘no one will suffer if we can help it.’
▪ Nearly all firms reported that their people have been kind-hearted, mutually supportive and adaptable;▪ Some lawyers who have become ‘redundant’ as a result of work drying up are being redeployed; for example, one firm has redeployed some lawyers to work on the firm’s business development and marketing while another has seconded some lawyers to work with clients;▪ Many lawyers now need to think more like entrepreneurs and less like lawyers; some firms reported how the crisis has exposed a leadership vacuum in their firms and highlighted the need for leadership tools.
▪ Nearly all firms reported that their people have been kind-hearted, mutually supportive and adaptable;
▪ Some lawyers who have become ‘redundant’ as a result of work drying up are being redeployed; for example, one firm has redeployed some lawyers to work on the firm’s business development and marketing while another has seconded some lawyers to work with clients;
▪ Many lawyers now need to think more like entrepreneurs and less like lawyers; some firms reported how the crisis has exposed a leadership vacuum in their firms and highlighted the need for leadership tools.
Impact on practice areas
Commercial property, employment, family and relationship property lawyers appear to be busy while residential conveyancing, commercial and some litigation work has stalled.
My thanks to those who have participated in the discussions to date. Further meetings are scheduled in early May. I will follow up with another summary following those meetings.
Ready to help!
‘The best-laid plans o’ mice and men gang aft agley.”
As the above quote from Robbie Burns reminds us that, no matter how much we plan and work, when things go wrong as they are doing, all our planning can be wiped out in an instant.
Like me, most of you reading this will be in some kind of lockdown, no doubt anxious about the impact of COVID-19. But lockdown doesn’t mean shutdown. I have been heartened to hear about the many proactive initiatives being undertaken by firms to ensure safety, security and solvency.
Virtual discussion
One initiative I have undertaken is to facilitate a virtual discussion via Zoom with law firm leaders from firms (generally small to mid-sized) from Australia and New Zealand. My newsletter of 1 April reported some of the highlights from that meeting. Attendees derived a lot of benefit from listening to others and learning about their experiences and have since requested a further meeting on 14 April. Quite a few of my readers (around 15) have since asked to join that meeting. I have accepted them all but in the interests of keeping the groups small, I propose to start a new group should any more people be interested. Simply email me and I’ll get another group going. There is no charge to participate.
How may I help?
Having worked with many firms over the years, I have a vested interest in ensuring firms successfully overcome the challenges ahead. Consequently, if you need an independent offsider/sounding board during this period, I am offering to help in any way I can.
For example,
- If you need an independent moderator during a Zoom meeting with internal or external parties;
- If you want someone to research how other firms are responding overseas; or
- If you are simply looking for ideas on how to best stay afloat!
... then just reply to this email or pick up the phone and let’s have a chat. I realise that 'cash is king' right now, so during this time, I am working on a ‘not-for profit’ basis. That means, for new work, I am waiving my normal fees and am happy to accept anything from a bottle of wine to a modest honorarium to suit your circumstances! You decide.
Together we will get through this.
Kia kaha!
I was honoured to have had my latest article published in the latest edition of Modern Law Magazine (pages 7-9), written before the onset of the pandemic. While law firm leaders will have other priorities at present, I hope the overall message will still be consistent with the needs of our communities in these difficult times. (Inevitably, I will no longer be presenting at the Law Society (Law Management Section) conference in London on 19 May as suggested in the article). To view, the article click this link: https://bit.ly/3d5QTIZ
This week, I was working with a large New Zealand law firm on governance issues. David Maister’s criteria are as valid today as when he first wrote about them in his book ‘Managing the Professional Services Firm’ in 1994. How does your firm rate?
I enjoyed speaking to guests of Legal Personnel in Auckland today. Time for a rev up in a few firms I think!
For many, New Year is a time for reflection and resolution. One of my favourite books is David Maister's Strategy and the Fat Smoker. The book opens with this quote:
'Much of what individuals and firms do in the name of strategic planning is a complete waste of time and about as effective as making New Year's resolutions.'
As he explains, one of the main reasons is that we lack the discipline to make our goals a reality.
However, I believe it can also be due to a lack of real desire. When our hearts aren't in it, then no matter how logical or compelling the goal, you won't succeed. Before setting goals or making resolutions, first ask yourself these three questions:
1. Passion: is this what I want to do?
2. Purpose: is this what I believe in?
3. Professionalism: is this what I'm good at?
If you can't answer 'yes' to all three, then don't waste time setting goals trying to achieve something you aren't sold on. Spend time finding your 'sweet spot'; only then will those goals and resolutions have a good chance of becoming a reality.
Wishing you all the best for 2020!
An awesome time was had by delegates at this year’s Future Firm Forum on Waiheke Island, near Auckland. Delegates were engaged by presentations by Helen Rice, Caroline Ferguson, Matt Farrington, Dr Lisa Marriott and finally Cam Calkoen CSP.
Very much enjoyed presenting to the Auckland Primary Principals’ Association in Taupo this week-end.
On the topic of ‘embracing the future’ my key message was to prepare for uncertainty, be a voice for change and be ready for change!
Thanks for having me along.
Photo courtesy of Stephen Lethbridge, thank you Stephen!
That was my key message to 250 delegates at Lawfest in Auckland last week.
It was terrific to see so much interest in the impact of technology on the delivery of legal services and to hear a variety of speakers sharing their views on how to to adapt & thrive in a changing market. While the focus of Lawfest is on innovation and technology, my message was simple: we must not make technology our God; people first, digital second!
The sad story of Ernest Quintana, reported by the world media a couple of weeks ago, illustrated my point. Mr Quintana, a 78 year old patient in a Californian hospital, was told he was about to die by a doctor using a robot with a video-link screen. Sadly, he died the next day.
In a statement of apology, the senior vice-president of the hospital said: 'we don't support or encourage the use of technology to replace the personal interactions between our patients and their care teams.'
People first, digital second.
Recent research confirms that human interaction matters, - especially to those that matter most to you in your business, - your clients and to your people.
- 75% of people want to interact more with a real person more as technology improves
Finally, I shared this quote that seemed to capture both the theme of my talk and the mood in the conference room:
"Bread is like humanity itself. We come in different shapes and sizes, colours and guises, yet underneath the skin and crust we're all made of the same stuff. The trick of achieving happiness and harmony is surely to celebrate both our similarities and differences with equal vigour." -Hugh Fearnley-Whittingstall
A firm retreat is a good opportunity for your team to refocus and recharge. A successful retreat can provide breakthroughs you may not even have anticipated!
Here are my 7 tips for running a successful retreat:
1. Be clear and realistic about what you want to achieve in the time available;
2. Consult with those who will be involved beforehand;
3. Do your research up front, e.g., a team engagement survey;
4. Pick a comfortable venue away from the office; stay a night;
5. Have an external speaker, either live or via video conference;
6. Appoint an experienced facilitator to lead discussion;
7. Follow up and implement post-retreat.
Simon has many years experience of speaking at, and facilitating, retreats for firms while bringing focus and fresh ideas to the process. If you are planning a retreat this year, get in touch! Perhaps he can help you?
"After completing his due diligence on our firm to gain an understanding of our culture, value and client base, Simon prepared a bespoke agenda that was superbly tailored, resulting in the output exceeding our expectations. Simon’s role was pivotal and his generous contributions were much valued by all."
- Practice Manager, Rice Speir
Mention the words ‘strategy’ or ‘planning’ to many business leaders and managers and their eyes tend to glaze over. Many I speak to profess their organisation or firm has ‘done it’ but on closer inspection, in reality, they have not, or at least, not that effectively. For many, setting business goals is akin to making New Year’s resolutions, - aspirational but with (some) goals rarely achieved. Often this can be due to a lack of consensus or commitment within an organisation, especially at the top. However, this can also be as a result of the organisation failing to define its business first.
By ‘define its business', I mean gain clarity around some key drivers of the business; for example:
- Our purpose – why are we in existence?
- Our vision – what are we trying to achieve?
- Our values – how should we go about our business?
- Our value – what is it that our clients really buy?
- Our services – what do we offer?
- Our philosophy – what drives us?
- Our style – how should we present ourselves?
- Our point(s) of difference – what sets us apart from our competitors ?
Often, finding consensus to these questions can be hard and can result in semantics and verbosity. It needn’t be this way. Recently, I refined a one-page strategy statement (see below) that I have used with some clients who report that the the process has some real benefits:
- it creates a sense of common enterprise;
- it provides clarity and gives confidence;
- it sets boundaries, and
- it motivates people.
As a rule of thumb, your strategy statement should be BRIEF, literally.
B = believable (by the team)
R = realistic
I = inspiring (to the team)
E = easy to understand
F = focused
Once you have defined your business, you will find it is easier to manage, to make decisions, and to attract the right people.
While out on a walk in beautiful Hanmer Springs, New Zealand today, it dawned on me that 2019 marks the 25th anniversary of my working as an independent consultant, speaker and mentor to professional services firms, (notably law firms!). I reflected on what I had achieved in that time and began to wonder how it had all passed so quickly. Since I went solo in 1994, I have met some really great people and have had the privilege of working with clients in 13 countries across 5 continents. My thanks to all of you for the opportunities wherever you are. It has been quite a journey.
As you might imagine, there have been many stories along the way. Most recently, towards the end of last year, I was approached by a 4 partner law firm in New Zealand to help with some partnership and management issues. I proposed an internal review of their governance, strategy, management, team engagement levels and Partner aspirations. My review culminated in a one and a half day retreat/meeting with the Partners. The end result has been clarity and consensus around where the firm is now and where it wants to head in the future. One of the Partners has since kindly described my help as 'invaluable'.
I am sure there may be a few more success stories like this to come in the next year or three (not twenty five!). If your firm would like to be one of them, why not call me for a no-obligation, no-fee initial consultation. Or maybe you know of a firm who might benefit from you passing on this update?
All the best for 2019!