Case studySteven Newby is the senior partner of south-east England practice Solicitors & Co.
The firm has a number of specialisms and in addition it does a small amount of private client work.
Until recently, it had 22 partners but three have just left.
There are a comensurate number of assistants and five other fee-earners.
Prior to becoming senior partner two years ago Mr Newby was head of the company and commercial department, one of the biggest in the firm with eight partners and 12 assistants.
He still does this in practice.During his time as senior partner Mr Newby has managed to attract some very able and experienced solicitors.
He has also made the firm more profitable and has managed to increase its market share.
However, he is concerned about staff morale.
There has been visible tension at the office recently.
Three of his key partners have left over the past six months.
Now Peter Long, one of the most valuable senior assistants in his company and commercial department, has asked to see him and Mr Newby fears that he too may announce his departure.Mr Newby has discussed the case of Mr Long with Jane Alexander, the personnel partner.
She tells Mr Newby that she thinks Mr Long believes the firm is becoming too business oriented.
'He is always suggesting that we get involved in things that will cost the firm money, such as training courses and social events,' she says.'But making money also means not spending it.
Our investment in IT has to be recouped in the short term, and in my opinion that simply means a very restricted budget for personnel.' Ms Alexander also thinks that Mr Long is upset because he is up for partnership next year and, as the firm has been restricting its partner entrants, he has no certainty of election.
'Best leave well alone,' she advises.
'We don't have to worry about losing some talented people.
There are many more out there.'Mr Newby also consults Martin Winskall, an old college friend who is managing partner of another firm.
Mr Winskall does not think that Mr Long's imminent departure is caused by job insecurity but thinks that there might be a problem with staff morale.
Mr Newby decides to ask his secretary about general staff morale.
It emerges that some of the secretaries are upset by the long hours they have been asked to work.
There is a feeling that these were sometimes driven more by lack of planning on the part of the solicitors rather than any urgent client needs.As Mr Newby expects Mr Long comes along and hands in his notice.
He has been offered a very good job with a rival firm which held out partnership prospects and a sizeable budget for managing a multi-disciplinary team within the commercial department.
But the main attraction of his new job is the prospect of a comprehensive training programme, flexible working arrangements and a programme of staff team-building activities.TACKLING THE PROBLEMIt is too late to save the situation as far as Mr Long is concerned; he looks determined to leave.
But Mr Newby must act to stem the exodus of talent to rival firms.
Ms Alexander's role in cost-cutting and achieving financial stability within the firm has been useful but she plainly lacks the understanding and sensitivity necessary to handle personnel issues.Someone else should take on this role.
Ms Alexander is unlikely to appreciate being usurped from her position and Mr Newby will have to persuade the other partners that someone else should fill the personnel role.
The recent departures should help him in convincing people of this.
Mr Newby could find an existing partner to fill Ms Alexander's role.
But in order to tackle the problem quickly, he might consider retaining the services of an independent consultant, or employing one full time.
Whatever course of action is taken will be determined by cost, and how quickly the problem can be resolved.
Mr Newby should also act as the liaison partner for personnel matters.
Given the severity of the problem of firm loyalty and the potential for bad feeling towards Ms Alexander his active involvement will be very important.
Mr Newby lacks an understanding of firm dynamics, only now, two years into his stint as senior partner, is he beginning to appreciate how adversely affected employees have been by his style of management.
He would learn a tremendous amount from working with a trained specialist.The first step should be to issue a statement of intent to all staff.
This would acknowledge the problem of firm loyalty and express the firm's concern and the fact that the search for a solution is a high priority.
The statement should also outline the plan of action.
The next step should be to conduct an audit of opinion of staff members.
This would give invaluable information about the firm and provide the basis on which it can set about restoring harmony and loyalty.
Staff would become even more unsettled if, following the audit, there was no remedial ac tion taken.
The problems will have to be addressed bearing in mind the budgetary constraints of the firm.
As Ms Alexander suggested it would be preferable to pay off the IT investment in the short term.
But if the personnel problems are to be tackled the refinancing arrangements would need to be spread out over a longer period.
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