Law firms must be businesslike in all that they do if they are to prosper, says Andrew Holroyd


I would like to begin by offering my congratulations to David Edmonds on his appointment as chairman of the Legal Services Board. Last Thursday, Law Society chief executive Des Hudson and I met with the chair-designate and had a very productive discussion about the next steps in the implementation of the Legal Services Act. We emphasised that our priority is ensuring that the regulatory structure develops in such a way as to optimise the environment for growth of legal businesses and cement England and Wales’s reputation as the jurisdiction of choice.





Legal aid

There have been many times over the last year when it seemed no more likely to read the words ‘legal aid’ and ‘deal’ in the same sentence than ‘flying’ and ‘pigs’. That all changed on 2 April when, after many long months of negotiation, the Legal Services Commission and Ministry of Justice agreed to several key concessions that give vital financial support to legal aid, and create a much-needed period of stability in which to prepare for the long term.



Last week I visited Brighton to listen to practitioners’ concerns and take questions at one of the 12 legal aid road shows held round the country. The response so far has been positive. No one is pretending this deal is a total solution, but there is a real sense we are now moving in the right direction. At the very least, the deal provides the degree of certainty missing thus far.



The deal vindicates the twin-track approach we have pursued from day one: taking every possible measure on the one hand, even if it means going to the High Court, but on the other hand maintaining a dialogue with the LSC throughout.



Most important of all, our campaign has not ended. Criminal practitioners need certainty too – the current level of remuneration is not viable even in the short term, and we have to find a way of providing sustainability while we move to long-term solutions.





Commercial pressures

Difficult decisions are not restricted to the legal aid sector. Conveyancing volumes are down significantly as fears about the economy have increased. Couple these concerns with worries about the legal landscape in the post-Legal Services Act world and it is understandable if solicitors think everything is pitted against them.



But in reality, whether it be legal aid, the economy or the threat of new competition, all these challenges underline the same point: in a changing world, no one is immune to commercial pressures.



Now is the time for all firms to reassess their business models and strategy. The operative here is ‘business’. Practices that are not businesslike in all that they do will, in the future, find life increasingly difficult. Helping to navigate the profession through this change and confusion will be a key part of the work of future president Paul Marsh, future vice president Bob Heslett and Linda Lee – recently elected as the next deputy vice president.





Law Management Section

One of the most effective vehicles to assist firms is the Law Society’s Law Management Section (LMS). It provides practical guidance, information and support on the full range of practice management disciplines including HR, finance, marketing, IT, business development, client care, quality and risk. If you have worries about your business strategy going forward, then the LMS is for you. Good management leads to good law firms and to excellent client service. The annual financial benchmarking survey results, released last week, demonstrate that LMS firms continue to deliver consistently high profits each year.



As one of the first members, I’ve watched the section grow into the 2,000-plus membership group that it is today. Last week I spoke at the tenth Anniversary LMS Annual Conference, which brought together a host of prominent figures from the legal profession to focus on the theme of ‘building the modern professional services law firm and preparing for change’.



One of the most interesting outcomes of the conference was the results of an interactive poll, where delegates were asked to indicate whether they thought they would be managing their firms the same way in five years’ time. Results showed 92% of delegates answered ‘no’. It is clear that firms understand and are already preparing for both the challenges and the opportunities that lie ahead.





Private client campaign

Something I am always very keen to stress is that the brand of ‘solicitor’ is vital to the future health of the profession. With a welter of different legal suppliers, and yet more ready to enter the market, do consumers really know why a solicitor should be at the top of their list?



Our ‘Your solicitor, qualified to answer’ private client campaign addresses that very question. Advertisements promoting why people should choose a solicitor will soon be everywhere – from billboards and taxis to the major national newspapers. All will direct people to the ‘find a solicitor’ service on our website, and highlight how solicitors can help save money, time and heartache.



Andrew Holroyd is President of the Law Society