1. Why change is necessary Peter Scott Peter Scott Consulting

2. Why adapting to change is necessary “It is not the strongest of the species that survive nor the most intelligent, but the ones who are most adaptive to change” Charles Darwin ‘Origin of species’ PETER SCOTT CONSULTING

3. The forces driving change The changing needs of clients • In order to provide clients with what they want, law firms need critical mass • Breadth and depth of resource - people • Rise of the national firms • Global firms • Need for consolidation PETER SCOTT CONSULTING

4. Other drivers of change? • Technology • Economic forces • Globalisation • Political forces PETER SCOTT CONSULTING

5. TALENT £ Impact on legal profession? This will happen to your talent unless…… PETER SCOTT CONSULTING

6. Are you struggling to attract and keep good people? PETER SCOTT CONSULTING

7. Why partners leave law firms Personalreasons Total number of mentions Number of times as 1st or 2nd reason Pushed out Profile of firm Equity sooner Culture of firm More opportunity Quality of work Financial PETER SCOTT CONSULTING

8. Do you have mechanisms to prevent the attrition of high quality performers? PETER SCOTT CONSULTING

9. If you have lost good people for any of those reasons……. Face up to reality PETER SCOTT CONSULTING

10. What is the real cost of replacing people? • Disruption • Recruitment fees • Training of new recruits • Effect on morale of people leaving • Loss of relationships/clients PETER SCOTT CONSULTING

11. Face up to your sacred cows PETER SCOTT CONSULTING

12. How to improve your chances? • Carving up the profits is not a substitute for making sufficient profits • Is your average PEP above or below the average PEP in your markets? - if below, you will be AT RISK PETER SCOTT CONSULTING

13. Reward strategies to help attract and retain the best people Your values and culture Performance Tracking & Feedback Career Development Training & Development PETER SCOTT CONSULTING

14. Your values? • What is valued in your firm? • Do you reward what you value? • Do you invest in what you value? What does it take to succeed at your firm? PETER SCOTT CONSULTING

15. Do you invest in what you value? Values Skills & Behaviours Performance Metrics – Quality /Quantity Performance Review Closing the Performance Gap Learning & Development Strategy PETER SCOTT CONSULTING

16. Reward strategies to help attract and retain the best people Your values and culture Performance Tracking & Feedback Career Development Training & Development PETER SCOTT CONSULTING

17. Reward - focus on the BIG ISSUES Align your reward strategies with your firm’s objectives - to help the firm achieve its VISION -its ability to COMPETE PETER SCOTT CONSULTING

18. Reward strategies to help attract and retain the best people Your values and culture Performance Tracking & Feedback Career Development Training & Development PETER SCOTT CONSULTING

19. Do you have a transparent partner admission / progression process? • Do you have an associate / partner development programme in place? • Do you ask your people about their career ambitions? • Do you focus your investment in people to advance your and their objectives, rather than sheep-dipping people through training courses? PETER SCOTT CONSULTING

20. Do you have succession planning strategies? “Ahh….only 5 more years to go” PETER SCOTT CONSULTING

21. Reward strategies to help attract and retain the best people Your values and culture Performance Tracking & Feedback Career Development Training & Development PETER SCOTT CONSULTING

22. Do you invest in what you value? Values Skills & Behaviours Performance Metrics – Quality /Quantity Performance Review Closing the Performance Gap Learning & Development Strategy PETER SCOTT CONSULTING

23. Performance metrics Do you measure what matters? PETER SCOTT CONSULTING

24. To build your ability to attract and retain…. Do you have systems to manage relationship conflict? PETER SCOTT CONSULTING

25. “Relative worth” “I’m so marvellous.. …so why is he earning more than me?” PETER SCOTT CONSULTING

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27. Are we all going in the same direction? PETER SCOTT CONSULTING

28. Maister’s “Predictive package” • “Client satisfaction is a top priority at our firm” • “We have no room for those who put their personal agenda ahead of the interests of the clients or the office” • “Those who contribute the most to the overall success of the office are the most highly rewarded” • “Management gets the best work out of everybody in the office” PETER SCOTT CONSULTING

29. Maister’s “Predictive Package” • “Around here you are required, not just encouraged, to learn and develop new skills” • “We invest a significant amount of time in things that will pay off in the future” • “People within our office always treat others with respect” • “The quality of supervision on client projects is uniformly high” • “The quality of professionals in our office is as high as can be expected” PETER SCOTT CONSULTING

30. A final thought…. “Change before you have to” Jack Welch PETER SCOTT CONSULTING

31. Any questions?