2017: ONE

The Art of Success:

Why Independent Law firms are thriving
The Art of Success:
Why Independent
Law firms are thriving

Today’s independent law firms are stealing

a larger share of the market by putting quality
before quantity. What is driving their success –
and why are they confident about their future?

Report ONE of three for 2017

2
Contents The Art of Success

Introduction 4
Executive summary 5
Defining success for law firms 7
Defining success for lawyers 12
How experience drives ethos 16
How experience drives ethos for decision makers 18
How experience drives ethos for lawyers 20
Formative years 22
The state of the world 28
In their own words 33
Conclusion 34
Appendix 35
About the author 38

3
Introduction The Art of Success

The first Bellwether report of 2017

Since 2013, our annual Bellwether reports have been a voice
for those often unsung, small and independent law firms across
England and Wales who are embracing new ways of working,

is based on 10 qualitative interviews challenging old ways of thinking and redefining what law firms
can do.

and quantitative research with 118 Given the ever-increasing speed of change and the variety of
business models, we’ve decided to expand this year’s research

lawyers in independent law firms, and divide it into three reports, spread across the course of the
year – with each wave of research building on the last. Working

focused on the theme of success.

in conjunction with a specialist, independent Market Research
Agency, Linda Jones & Partners, we will be tracking and reporting
on changes and developments throughout the year, delving
deeper into topics as they arise at each stage.
• What makes an independent law firm ‘successful’?
• What makes a lawyer ‘successful’? INTERESTED IN MORE DETAILS?
Find the executive
• How does life at the smaller end of the law firm spectrum summaries and links
to the previous five
compare to life in the top tier? Bellwether reports
in the Appendix.
• How have past experiences shaped their ethos today?

4
Executive summary The Art of Success

It’s been a turbulent twelve months since last year’s Bellwether

report, with significant political and economic change 87% 83% 65%
influencing the feelings and attitudes of independent law firms.
Nevertheless, today’s independent law firms remain cautiously
optimistic about the future – confident they can steal business
away from their rivals by offering their clients a more bespoke
of independent are feeling see being
experience, and their people a better quality of life. law firms are in confident bespoke
good health. about the future. as the key to
their success.
Our research reveals a new generation Rather than chasing growth for growth’s
of enlightened decision makers, who’ve sake or fixating on unrealistic targets,
deliberately walked away from life in the they’re focusing on delivering first class
top tier, with its high pressure ‘billable legal services and creating a better
hours’ culture, in order to create a new working culture and environment for their
kind of firm, with a focus on quality people: firms where happy, productive,
over quantity. staff deliver a more personal, more
‘human’, level of service.

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5
Executive summary The Art of Success

INSIDE...
Defining success
Most independent law firms see success
Breaking with the past
Most decision makers and lawyers
In good shape
The vast majority of smaller, independent
Cautiously optimistic
More lawyers are feeling ‘quite confident’
as a trinity of three important elements: in independent law firms have firms are either stable or growing – with compared to recent years, but fewer
1 the quality of their expertise, experienced poor staff morale in the most planning to expand in the next five are feeling ‘very confident’. Overall the
2 solid commercial logic, past. Consequently, good staff morale years. At the same time, many at the decision makers running small law firms
3  commitment to treating staff is one of the top factors that drives the smaller end of the spectrum (especially seem happy with their firms, happy with
and clients with respect. ethos of the law firms in our sample and those with five fee earners or less) are their lot, and reluctant to return to life
Being a ‘good’ lawyer isn’t just about is a major contributor to lawyers’ job content to remain as they are, not willing in a large firm or the top tier.
knowing your law or being a skilled satisfaction. to jeopardise the ethos that makes their The future looks set to be challenging,
craftsman. It's about understanding how firm successful or compromise their but also increasingly ‘boutique’ – with
to apply the law to serve your client's hard-won work/life balance. smaller, more specialist firms looking
business and personal needs. It's also to steal business from larger, more
about exercising common sense. Having established and traditional firms by
excellent people skills is as important as focusing on quality over quantity.
being commercially savvy.
Crucially, our research reveals that nearly
a third of respondents think that half
the profession are not actually capable NOW
lawyers – a strong indication of the
READ ON
importance of these three elements.

6
1 _ Defining success for law firms The Art of Success

“Success will come at a point

when we can pick and choose
the work that we do.”

What makes a law

firm ‘successful’?
The quality of
expertise, the length
of the client list, the
state of the balance
sheet – or is it a
question of culture?

7
1 _ Defining success for law firms The Art of Success

To what extent do the following criteria contribute to success? Top priorities

Quality of legal expertise within the firm

57% The one thing almost every respondent recognises is that the quality of Quality of legal
Financially sustainable/not over-committed legal expertise within the firm is the primary contributor to its success. expertise ranked
41% 57% of our sample cited it as their top priority. higher for:
Treats staff with respect
40% While this might sound obvious, it is Independent firms live or die by Those
Loyal client base/trusted advisor role worth pointing out that respondents the quality of their advice, and more
74% with large/
top tier
40% are becoming increasingly aware are beginning to realise that they experience
Have shared goals/values across the team that the quality of their legal should celebrate and promote
26% expertise is the key differentiator their expertise, rather than Specialists
High job satisfaction across the team for their firm’s success. assume that it is understood.
67%
focused on
one area
25%
of law
Well-positioned/has competitive edge The next 3 most significant contributors to success:
20% 1-5 fee
Well-informed about client’s business • Being financially sustainable/not Sound financial management 70% earner firms
19% over-committed means there is less pressure to hit
Empowers lawyers to spend time needed on the case • Treating staff with respect unrealistic targets.
16% • Having a loyal client base This contributes to happier staff
Operates a responsible and fair pricing policy
These all combine to create which, in turn, means clients
16% a ‘virtuous circle’ within most receive a better service, which leads
Good at marketing
independent firms. to repeat business, which contributes
14%
to a healthy balance sheet.
Prepared to invest in short term
13%
Knowing about your client's business is more important when you specialise:
Supports flexible/remote working
11% Specialists consider it to be
27%
Simple management structure/reporting levels a top 5 contributer to success
10%
BASE
Invests 118(i.e. PM)
in support roles BASE 48
10%
Flexibility to be selective about clients
8% 8
1 _ Defining success for law firms The Art of Success

For many, success has less to do with the number at the bottom
of the balance sheet and more to do with the less tangible
things, such as being a force for good or enjoying a better
quality of life.

To what extent is the quality of legal expertise

Small & specialist seen as a top priority for success?

The smaller or more specialist your firm, Our smaller and more specialist firms also
the more the quality of legal expertise identified more issues as ‘top priorities’,
seems to matter. 67% of specialist firms placing greater emphasis on shared goals,
and 70% of firms with five fee earners marketing, flexible working and having
or fewer cited it as a contributing factor
(compared to 57% across the whole
the freedom to be selective about their
clients. Specialists also placed greater
specialist
firms 67% 70% five fee earners
or fewer
sample). For niche firms, expertise emphasis on being well-informed about
becomes a key differentiator. their client’s business (27% vs. 19%
across the whole sample).

Respondents said: A respondent said:

“Making a difference is an important measure of success.”

“Happy hens lay happy eggs - it’s
about recognising what investment
“Success will come at a point when we can pick and choose the work that we do.” would pay dividends. Giving staff the
feeling they matter. If you care about
them they ultimately care about you.”

BASE 118

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1 _ Defining success for law firms The Art of Success

Marketing & support To what extent do the following areas contribute to success?

Loyal client base/trusted advisor role

40% see having a loyal client base
40% 44% 13%
as a top priority for success

Good at marketing
14% see being good at marketing
14% 46% 25%
as very important for success

Invests in support roles (i.e. PM)

10% see investing in support roles like
10% 35% 37%
Practice Manager as a top priority

Top priority Very important Quite important

The themes above have persisted over the five years we Top priority Very important Quite important

have been surveying the market. Law firms are focused

on the law, on the quality of their work and increasingly, on
driving business success – but consistently underestimate Respondents said:
the importance of marketing and the value that can be
added to a business by bringing in dedicated professionals
“It looks to be a luxury to have a Practice Manager for such a small practice.
with non-legal business skills. Is this simply because lawyers The reality is that it allows us to concentrate on work and clients,
are focusing more on retaining the clients they already we don’t have to be negotiating the insurance, etc.”
have, over acquiring new ones?
“Marketing is an area that always suffers. It tends to be something people put on the
Or could it be that they underestimate the role played back burner.”
by marketing and support in building client loyalty?

BASE 118

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1 _ Defining success for law firms The Art of Success

Looking ahead
77% agreed that non-legal businesses will compete directly with law firms
With so much uncertainty surrounding the future legal
landscape, we presented our sample with a selection of possible
scenarios and asked them to pick the ones they felt were most
likely to happen in the next three to five years. The next top three answers all paint a similar scenario, where smaller more specialist
The future landscape: Percentage of respondents agreeing firms will start to steal business away from the traditional high street firms who aren’t
with the following statements able to offer the same level of bespoke service.

Non-legals will compete directly with law firms

77%

Increase in small specialists providing quality vs quantity 58% believe that legal solutions will still require qualified legal professionals.
69%

Traditional high-street firms will lose out

66%
In the next three to five years:
Successful law practices = more artisan/bespoke
65%

Overall legal quality in UK will decrease

Believe in an Think that
52% increase in legal solutions

SRA proposals will destroy many law firms

small specialists
providing quality
69% 42% increasingly
won’t need
46% vs quantity qualified
people/firms
Overall market for law will grow
45%

Legal solutions increasingly won’t need qualified people/firms

42%

BASE 118

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2 _ Defining success for lawyers The Art of Success

“Being a ‘good’ lawyer isn’t just about

knowing your law or being a skilled
craftsman, it’s about understanding
how to apply the law to best serve your
client's business and personal needs,
and exercising common sense."

What makes a lawyer

a ‘good lawyer’?
Are they in the majority
– or the minority?

12
2 _ Defining success for lawyers The Art of Success

When we asked our sample

what percentage of lawyers
they thought were ‘good’
lawyers, the average came
out at 62% – neither a ringing What proportion of lawyers are good in your view? A respondent said:

endorsement, nor a damning

indictment. 41% “I’m afraid I’ve seen a decline
in quality, certainly in the last five
Nearly a third felt that ‘good’ years, in small firms – particularly in
intellect, ability to think and skill.”
lawyers are actually in the minority,
sitting somewhere between the
1-50% mark.

However, this may simply be a sign of

21% 21%
a growing drive to improve standards,
and greater awareness of how the quality N/A

of their legal expertise and advice is as 76-100%

a key differentiator for independent 9% 51-76%
law firms.
4% 4% 25-50%
Increasingly, it would appear,
11-25%
independent law firms see quality
as a given. 1-10%

1-10% 11-25% 26-50% 51-75% 76-100% N/A

1-10% 11-25% 25-50% 51-76% 76-100% N/A

Percentage of lawyers who are good

BASE 118

13
2 _ Defining success for lawyers The Art of Success

69% of the respondents said understanding how

to apply the law to their clients was of highest
importance in defining success for lawyers.

The good lawyer - top priorities The good lawyer

Understands how best to apply the law to the benefit of the client
69% According to our sample, the top A respondent said:
priority isn’t simply knowing the law,
Common sense
but understanding how best to apply
46% the law to get the best result for “I don’t want someone to quote clients
Skilled legal craftsman the client. section numbers and regulation num-
35%
bers. No one gives a monkey’s. They
want to know what to do.”
Human qualities But what precisely does ‘good’ mean
32% in this context? Is it all about having the
In the words of another:
right legal knowledge and skills? Or is
Commercially astute
it also about having good people skills,
25%
common sense and commercial savvy?
Team player
“I don’t think clients come to you
because they think you know the law.
16% They come to you because in the past
Uses technology to get the best legal solutions
you’ve represented their interests very
well. They’ve got what they wanted out
13% of deals, you’re easy to talk to, easy to
reach…”
Sound grasp of the business world
11%
Good at marketing
8%

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14
2 _ Defining success for lawyers The Art of Success

Intriguingly, only 11% said having a sound grasp

of the business world was a top priority.

The good lawyer - top priorities

Interestingly, the second most Intriguingly, only 11% said having a
Understands how best to apply the law to the benefit of the client sound grasp of the business world
69% important thing is common was a top priority – despite 69% saying
Common sense sense – even more so than understanding how to apply the law to
being a skilled legal craftsman, your client was of highest importance.
69%
46%
This begs the question: is it possible
Skilled legal craftsman having human qualities or to do one without the other?
understands
35%
how best to being commercially astute. Being good at marketing and good
Human qualities apply the law with technology are still trailing behind,
32% For independent lawyers, the ability to at the bottom of the list of priorities.
Commercially astute exercise common sense and apply real-life This suggests lawyers still don’t see
25% 46% experience to their legal expertise is a
major driver of success. Respondents are
marketing as part of building closer
relationships with their clients, or how
Team player
common sense
particularly scathing of firms that follow technology can free up time spent on
16% the same ‘cookie cutter’ approach for routine tasks that could be devoted

13%
Uses technology to get the best legal solutions every client, without considering what each to clients instead.
13% individual client actually wants to achieve.
uses tech
Sound grasp of the business world
A respondent said:
11%
Good at marketing
8%
8% “Actually, a lot of lawyers don’t have to do
good at a lot of law all the time – they have to use
marketing common sense and business nous.”
BASE 118

15
3 _ How experience drives ethos The Art of Success

“Today’s new enlightened decision makers are

determined to learn from the past and create a happier,
healthier working culture within their own firms.”

One thing on which both

lawyers and decision makers
in independent law firms
agree is the importance
of good staff morale.
For decision makers, it’s one
of the main factors behind
their firm’s ethos. For lawyers,
it has the most impact on their
job satisfaction.
16
3 _ How experience drives ethos The Art of Success

When we asked our sample what negative issues they’d

experienced in their careers, their most common complaint,
by far, was poor staff morale.

Issues experienced Horrible histories

Poor staff morale
78% Overall, 78% said they’d experienced poor
Lack of mentoring staff morale in the past.
63% A respondent said:
Stress/pressure of 'billable hours' culture Among lawyers, however, the number was
55% even higher: a staggering 94% compared
Lack of common goals across partners/business to 74% among decision makers. “What annoys me is the attitude of
‘it was like that in my day’… aren’t we
46%
supposed to be progressive?
Aren’t we supposed to learn
Unreasonable workload for junior staff
37%
94%
vs. 74%
from these things?”
Poor financial management Lawyers Decision Makers

36%
On average, each person said they’d
Lack of good case management system experienced around four of the listed
34% issues. Yet again, the average among
Lack of client loyalty lawyers was higher (5.1 issues for
30% lawyers vs. 4.4 for decision makers).
Lack of access to quality legal info
Other top complaints were lack of
24%
mentoring, the stress and pressure of
Over complex structure/too many levels of reporting working in a ‘billable hours’ culture and
19% a lack of common goals across the
Unsustainable equity partner drawings partners and business.
19% BASE 118

17
3 _ How experience drives ethos for decision makers The Art of Success

Which driver has been the most fundamental in shaping the ethos/practices of your current firm?

Satisfaction drivers in current business

Lessons learned
When we asked our decision makers to 73% 65% 45% 42% 38% 27%
name the things that drive their current
firm’s ethos today, the top three were good
68% 55% 42% 39% 34%
financial management (73%), client loyalty
(68%) and ‘good staff morale’ (65%).
Good financial Good staff Simple reporting/ Good case Fair remuneration Culture of
management morale management management across partners/ mentoring
structure system staff
Client loyalty/ Common goals/ More realistic Reasonable Access
trusted advisor values across 'billable hours' workload for all to quality
business targets/no targets staffing levels legal info

BASE 74

18
3 _ How experience drives ethos for decision makers The Art of Success

Lessons learned
Indeed, when you compare our decision Which driver has been the most fundamental in shaping the ethos/practices of your current firm?
makers’ past experiences and their current
ethos side by side, there’s a clear and
strong correlation between many of them. Satisfaction drivers in current business
This includes common goals across the
business, realistic targets and reasonable
workload. 73% 65% 45% 42% 38% 27%

This suggests that today’s new enlightened

decision makers are determined to learn 68% 55% 42% 39% 34%

from the past and create a happier,

healthier working culture within their Good financial Good staff Simple reporting/ Good case Fair remuneration Culture of
own firms today. management morale management management across partners/ mentoring
structure system staff
The only exception to this approach Client loyalty/ Common goals/ More realistic Reasonable Access
where independent law firms look to trusted advisor values across 'billable hours' workload for all to quality
business targets/no targets staffing levels legal info
counteract the negative experiences
of their past career is in the area
of mentoring. 38% 74% 20% 34% 26% 61%

A respondents said:
31% 49% 57% 30% 16%

“We don’t check and monitor people’s

time because that’s against our ethos.” Previous negative experience

Even though 61% of our decision ...Only 27% cited mentoring

makers complained of a lack of as a driving factor behind
mentoring earlier in their career... their ethos today.”
BASE 74

19
3 _ How experience drives ethos for lawyers The Art of Success

Happy hens Which driver has the most impact on job satisfaction?

If today’s decision makers are keen to

keep their staff happy, what do lawyers
themselves say has the biggest impact
on their own sense of job satisfaction? Satisfaction drivers in current business

11%
23% 86% 29% 63% 34%

31% 43% 60% 63% 40%

Good financial Good staff Simple reporting/ Good case Fair remuneration Culture of
management morale management management across partners/ mentoring
structure system staff
Common goals/ More realistic Reasonable Access
Client loyalty/ values across 'billable hours' workload for all to quality
trusted advisor business targets/no targets staffing levels legal info

BASE 35

20
3 _ How experience drives ethos for lawyers The Art of Success

Again, as with the decision makers who Which driver has the most impact on job satisfaction?
run independent law firms, there’s a high
correlation between many of the negative
experiences that lawyers have experienced
in the past and the things that drive their
sense of job satisfaction today. Satisfaction drivers in current business
There are, however, two notable exceptions.
Even though ‘fair pay across partners and 11%
staff’ is a top factor (63%), only 6% said 23% 86% 29% 63% 34%
they’d experienced unequal pay.
31% 43% 60% 63% 40%

The other exception is the same as for Good financial Good staff Simple reporting/ Good case Fair remuneration Culture of
management morale management management across partners/ mentoring
decision makers – a lack of mentoring. structure system staff
Even though 74% of lawyers complained Common goals/ More realistic Reasonable Access
about a lack of mentoring, only 34% said Client loyalty/ values across 'billable hours' workload for all to quality
trusted advisor business targets/no targets staffing levels legal info
it affected their job satisfaction.

The perceived disparity in how 37% 94% 20% 43% 74%

6%
independent law firms distribute profits 34% 46% 66% 46%
43%

has long been a bone of contention for

‘rank and file’ lawyers, and it would seem
that an equitable division of the spoils
remains a considerable driver for many. Previous negative experience
For lawyers, having a reasonable workload,
salary and the tools to do the job are more
important than ‘the big picture’.

BASE 35

21
4 _ Formative years The Art of Success

“74% of decision makers who’ve worked in larger

firms wouldn’t go back – but 45% of lawyers
wouldn’t rule it out.”

75% of lawyers in the

independent firms we
spoke to had worked at
larger firms in the past.
Those past experiences
have shaped their
opinions today.

22
4 _ Formative years The Art of Success

What is the background of the lawyers we interviewed?

A broad church
When you look at where lawyers in small
independent law firms today have worked
in the past, it’s a rich mix.

11% 61% 45% 30%

3%
none have worked have worked have worked in have worked
in-house in small firms mid sized firms in large/top
tier firms

None In house Small (<20FE) Mid sized (20-200FE) Large/Top tier (200+ FE) BASE 118

23
4 _ Formative years The Art of Success

Recency and longevity How recently were they in top tier? How long were they in top tier?

of large firm experience

Longer than 2-3 years 4-5 years Longer than 1-2 years
Clearly, the notion that small and 10 years 10 years
independent law firms do 'second class
law’ simply isn’t true. These are seasoned, 11%
17%
highly experienced lawyers, who know 20%
the law and how to apply it in real
world situations.

...25%
14%

left within
five years
49%

...75%
left six or ...83%
more years ago spent three or
23% more years there
A respondent said:

26% 40%
“What we are providing to clients is the
totality of our life experience. The fact
that most of us have spent most of our
lives being lawyers means there is a
very heavy legal content in that
life experience.”
6-10 years 6-10 years 3-5 years

BASE 35
LAWYERS WITH TOP TIER EXPERIENCE

24
4 _ Formative years The Art of Success

Once bitten, twice shy Lawyers

who’ve worked in top tier firms
Decision makers
who’ve worked in top tier firms
When we asked those with top tier
experience whether they’d ever consider
returning to a top tier firm again, most
of them said no, they probably or
13%
definitely wouldn’t. 18%
18%
However, the decision makers among
them were decidedly more opposed
to the idea than the lawyers.
13%
45%
would probably
9%
or definitely Decision
Lawyers consider returning
Makers
52%
to a large firm 74%
Definitely or probably
27% wouldn't consider
returning to a large firm

22%

28%

Definitely wouldn’t
Definitely wouldn't Probably
Probablywouldn’t
wouldn't Not sure Probably would
Not sure Probably would
Definitely would Definitely would

BASE 13 BASE 23

25
4 _ Formative years The Art of Success

So why are decision makers more Position on leaving large firm

reluctant to return to life in a large firm?

One reason could be seniority.
9%
When we asked those who’d worked at A respondent said:
17%
top tier firms what position they’d held
5%
when they left, the vast majority were
below management level. “One of the other reasons why I wanted
to set up on my own was the unrealistic
The majority of those who are decision targets which are often set for junior
makers today weren’t decision makers solicitors. These actually encourage them
when they worked in the top tier. Put to dream up some of the time that they
spend or to stretch it out. They are under
simply, they prefer being a bigger fish in 9%
pressure from all sorts of directions to
a smaller pond, where they have more clock up 5 chargeable hours a day.”
Non-decision Decision 23%
of a say and a better quality of life.
Makers Makers

Decision
Makers
Only 23 %
were at Department
Head level (or equivalent)
when they left.
37%

Dept.head or similar Solicitor Associate Paralegal/trainee Other (non-lawyer) N/A BASE 35

26
4 _ Formative years The Art of Success

Current job satisfaction Level of job satisfaction

58% rated their
Overall job satisfaction
Overall, job satisfaction among 3% 4% 17% 18% 38% 20% as ‘very’ or
independent lawyers is very high. ‘extremely’ high
Yet, once again, there is a split between
decision makers and lawyers.
Perhaps unsurprisingly, it seems that
Decision makers
12% 19% 45% 23%
76% said they
the view looks rosier from the top. were broadly happy
Overall
Lawyers with their lot
3%
% 4% 11% 17% 29% 18% 20% 38% 26% 20%11%

68% of decision
Decision makers makers rated their
satisfaction as
12% 19% 45% 23%
'very' or 'extremely
Lawyers high' vs.
3% 11% 29% 20% 26% 11%
37%
of lawyers'

43% of
Very low Quite low Average Quite Very Extremely lawyers working
in independent
law rated their job
satisfaction as
average or low

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27
5 _ The state of the world The Art of Success

“None of us want to grow an

empire that we can’t deal with.”

With Brexit on the horizon,

a new administration in the
White House and political
change in Europe there’s
a great deal of uncertainty
in the air. Despite this, most
independent law firms are
feeling cautiously optimistic
about their future – and are
poised for growth.
28
5 _ The state of the world The Art of Success

How do firms rate the current

performance of their business?

Current performance Overall, the vast majority of independent

firms to whom we spoke said they were in
With five years of accumulated data good health.
to compare, the trends are becoming
59% said they’re growing, second only
clearer and more robust, allowing us to 48% to 2015 (and a marked improvement
track both performance and confidence,
on 2016).
year to year. 59%

We conducted our research in the period

Growing
following the decision to leave the EU 88% of firms said they’re either stable
and during the early days of the Trump Stable
or growing, higher than any year since
presidency. Regardless of these events, Declining we began in 2013.
the clear majority of independent law
Don’t know / prefer not to say
firms are not only thriving but planning
to grow in the next three to five years.
By the same token only 6% say they’re
36% declining, lower than any other year so far.

29%

Growing
8%
Stable 6%
Declining 8% 6%
Don't know
Prefer not to say 2016 (112) 2017 (118)

29
5 _ The state of the world The Art of Success

Five year practice plan - A robust picture

Five year forecast

Looking ahead, to the immediate future,
65% are planning to grow, which is broadly
in line with the last two years.
65%
However, none of the firms to whom we 67%
66%
spoke this year are planning to downsize, Growing
which once again makes the overall
Stable
picture the most robust we’ve seen so far.
Downsize

Close / Retire

21%
26%
26%

Growing

Stable

Downsize

2015 (118) 2016 (112) 2017 (118) Close/retire

30
5 _ The state of the world The Art of Success

Smaller firms & the status quo Growth plans vs. size

However, some of the smallest firms (with

five fee earners or fewer) are quite happy to
remain stable. In fact, generally, it seems that
the smaller the firm, the less likely they are
to be planning for growth – and the more
likely they are to be content to focus on the
status quo, rather than chasing growth for 51%
growth’s sake. 64%

Respondents said:
1-5 FEE EARNERS 6-15 FEE EARNERS

“None of us want to grow an empire

that we can’t deal with.” Nearly half (43%)
say they plan to Just over a quarter
“We wouldn’t want to grow; 43% (26%) say they plan
it’s more about doing it well, managing remain stable in the
the work we have and knowing what immediate future 26% to remain stable
in the immediate
to take on and what to say no to.”
future

10%
3%
3%

Don't know/NA Downsize Stability Growth BASE 118

31
5 _ The state of the world The Art of Success

Confidence looking forward

16%
21%
Confidence vs. caution 30%

Given that 86% of firms are either growing

or stable and 65% are planning for growth,
one might reasonably expect to see
growing levels of confidence across
the board. Not so.
In 2015, 91% said In 2017,
Very the
Compared to last year, however,
they were either highest levels of
confidence levels haven’t changed as Quite
‘quite’ or ‘very’ confidence have
much as one might expect. Those feeling
confident about 67% Not very / not at all
dropped to 83%.
‘very’ confident are down 5% from last 60%
the future.
year, but those feeling ‘quite’ confident 61%
are up 7%.
In fact overall, adding those feeling ‘very’ Very confident
or ‘quite’ confident together, confidence
is actually up slightly on last year – but it’s Quite confident
a quieter sort of confidence. Not very/not
at all confident

17% 15%
10%

2015 (118) 2016 (112) 2017 (118)

32
In their own words The Art of Success

Feeling confident Feeling cautious

“The business has experienced good “There are unknowns for the economy
growth in its three years of trading...” with the change of US President
and Brexit to be entirely confident.”

“We’ve seen an increase in client

base, as we seem to be obtaining “The worry is always the unknown
work from larger firms who seem changes that lie ahead…”
not to be providing a good enough
service and charge high fees.”

“Government proposals regarding injury

claims and a property downturn are
“The firm is well managed, both examples of factors out of our hands.”
professionally and financially...”

33
Conclusion The Art of Success

This is the fifth year that we have conducted our research Over the course of the last five years in Their firms’ ethos, driven by things like
our research we have seen smaller firms bespoke service, good staff morale,
programme in Independent Law and it is increasingly clear that the weather the uncertainties brought about fairerpay, realistic targets and common
smaller, more agile, market focused law firm is increasing its power through regulatory change and economic business goals, is delivering both
and impact on the market for legal services. Adept, adaptable, difficulties and emerge as robust, growing commercial success and job satisfaction.
businesses with a continued sense that These new, enlightened, decision makers
commercially minded, customer-focused and obsessed with the future belongs to them. are proving that business achievement
providing common sense support founded on serious legal Disenchanted by the way that larger law starts with client care and a good working
environment and culture for their people.
competence, this is a segment of the market that is leading change. firms operate, successful independent
lawyers are determined to learn from It’s these elements, coupled with sound
their past experiences in larger and more investment in the right tools, technology
traditional firms and create a healthier and information to enable them to
working culture in their own firms for staff provide the bespoke services their clients
and clients alike. now expect, that will help them to not only
surive but thrive over the coming months
and years.

34
Appendix - Our Methods The Art of Success

Our research sample consisted of 10 in-depth interviews

amongst lawyers in smaller legal firms, followed by an online
survey of 118 lawyers working in a broad range of independent
law firms in England and Wales.

Those taking part represent a wide The research fieldwork was undertaken by
spectrum of different seniorities, an independent market research agency,
experience and backgrounds and we have Linda Jones & Partners (www.ljandp.co.uk),
views from sole practioners to lawyers with sampling in December 2016 and
working in firms with around 30 fee January 2017.
earners. The bulk of our sample were from
firms with fewer than 10 fee earners. The
majority of those taking part were decision
makers within their firms, responsible for
setting strategic direction and overseeing
spending and investment priorities.

35
Appendix - The Survey The Art of Success

Who we spoke to

Practice Size Position Lawyer Demographics

Gender Geography
Gender Gender
Geography
Geography
Very small Senior Senior Founder/4%Founder/
Very smallVery small (2-10 FE) management
management co co3%
13%founder founder
(2-10 FE) (2-10 FE) 8%
53%
53% 53% 26% North
10% Male Male 26% M 26%
North North
61% 24% 24% M M 47%
61% 61% Solo > Very Small 63% 63%39% 39%
46% 46%
Solo & VerySolo
Small
& Very Small Decision Makers
Decision Makers 63%
Decision 15% Midlands
61% 24% Makers 39%
15% 15%
Midlands Midlands
39% 39%
8%
Small > Medium 37% 37%
8% Small & Medium
8% Small & Medium 10%
22%
10%
Lawyers Lawyers
22% 22%
17%
7% 7% 23% London
17% 17% 13% 13%
4% 3% 4% 3% 23% 23%
London London
Solo Founder/co founder
Solo Solo Solicitor Solicitor Other Other
Senior(non-lawyer)
management
F
(non-lawyer)
Department
Small Department F F 53%
head head
(11-20 FE) Department head
SmallMedium
Small Paralegal Paralegal 53% 53% 33% South
(over 20 FE) Female Female
Medium Medium (11-20 FE)(11-20 FE) Solicitor
AssociateAssociate
(over 20 FE)
(over 20 FE) solicitor solicitor 33% 33%
South South
Associate Solicitor

Paralegal

Other (non-lawyer) 2017 BASE 118

2017 2017

36
Appendix - Previous Bellwether Reports The Art of Success

1. Bellwether 2013 – Survive or Thrive To download any of the previous

Bellwether Reports go to:
In 2013 the first Bellwether report looked into how the legal landscape had changed www.businessoflaw.lexisnexis.co.uk/freebies
by uncovering the concerns and expectations of independent lawyers and sole
practitioners on the front line.

2. Bellwether 2014 – Brave New World

The 2014 Bellwether explored the evolving legal landscape of independent lawyers
and sole practitioners by delving into increasing confidence, performance and good
appetite for change, key challenges and the rise of the entrepreneur.

3. Bellwether 2015 – The Age of the Client

The 2015 Bellwether report exposed how the balance of power in the client/lawyer
relationship was shifting. It explored how how independent law firms and sole
practitioners were responding to the new breed of client.

4. Bellwether 2016 – The Riddle of Perception

The main 2016 Bellwether report uncovered some telling differences of opinion.
Spanning everything from the demands of the economy and embracing digital
technology to managing the client/lawyer relationship, the report looked at how
lawyers saw themselves and their competition, and how they were really perceived
by their clients.

5. Mini-Bellwether 2016 – A Question of Value

The 2016 follow up mini-Bellwether report explored the critical difference between
value and price – and look at why forward-looking lawyers saw fixed fees as the future
and were taking the leap.

37
About the author The Art of Success

Jon Whittle is Market With 20 years of experience in He produces cutting-edge

research, insight, and business research, such as the industry
Development Director at strategy, Jon has been leading Bellwether report and
LexisNexis, responsible for passionate throughout his is a key contributor to the
the company’s offering for career about understanding Business of Law Blog, an online
and representing the voice of independent legal community.
the independent legal sector – individuals to big businesses.
independent, smaller law Jon is currently focused on
advocacy and community
firms, and sole practitioners. development for independent
legal practitioners.

businessoflaw@lexisnexis.co.uk 0207 421 6962

Jon Whittle
Market Development Director
LexisNexis

@LexisNexisUK www.lexisnexis.co.uk/blogsubscribe

38
The Future of Law Since 1818 . . The Art of Success

The Art of Success

Since 2013, our annual Bellwether reports have been a voice For a free trial of LexisPSL
for those often unsung, small and independent law firms across
England and Wales who are embracing new ways of working,
visit lexisnexis.co.uk/BellwetheronePSL2017
challenging old ways of thinking and redefining what law firms
can do.

Given the ever-increasing speed of change and the variety of

For a free trial of LexisLibrary
business models, we’ve decided to expand this year’s research
and divide it into three reports, spread across the course of the visit lexisnexis.co.uk/BellwetheroneLib2017
year – with each wave of research building on the last. Working
in conjunction with a specialist, independent Market Research
Agency, Linda Jones & Partners, we will be tracking and reporting
on changes and developments throughout the year, delving
deeper into topics as they arise at each stage.

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