Osprey Approach podcast with Simon McCrum: Four ways that law firms can improve cashflow and realise their competitive advantage
Simon McCrum, a former managing partner of the UK’s fastest growing law firm, has shared his decades of experience in conversation with Amy Bruce, head of marketing at Osprey Approach, to help SME law firms improve their cashflow, make more money per case, and outperform the competition on service quality.
Simon – owner of McCrum Management Consultancy and author of The Perfect Legal Business – joined Amy on the Empowering Law Firm Leaders podcast, to discuss how legal leaders can deliver excellent client service that they can charge more for.
Four non-negotiables of running a modern law firm
Simon has four non-negotiables required to run a successful law firm today:
You need nothing but good people – “If you’ve got bad people, whether that’s attitude, behaviours, or performance, that completely undermines your good people. I would be very militant about flying the good people flag.”
There has to be rules – “Everyone’s got ideas, we’re all ambitious, but there has to be rules.”
Say no – “Leadership have to be able to say no.”
It’s all about the cash – “If you take your eye off the money pool, it changes everything for the worse, and quickly.”
Perfect firm of solicitors vs the perfect legal business
Simon believes that “History is littered with the perfect firm of solicitors that didn’t quite make it… The perfect firm of solicitors wasn’t about cashflow, it was about reputation. It was about the brilliance of lawyers, getting into the Supreme court, being highly ranked in the Legal 500. But there’s an eerie silence when you look at the business.”
He highlights that whilst firms are meeting demands of higher salaries, their profit behaviours aren’t keeping up. “Why aren’t firms making money? They haven’t got enough rules or team players rowing in the same direction.
“Billing targets are too low and it’s just not enough anymore. There needs to be a completely new approach to business efficiency to turn the passion and efforts of lawyers into cash.”
Four priorities for honing your law firm’s competitive advantage
To achieve this, Simon has set out a blueprint for running the perfect legal business, which focuses on generating cashflow based on honing a firm’s competitive advantage: client service. This enables firms to exceed client expectations, charge their true value and empower employees with aligned values.
Simon shares his four priorities which firms should focus on to deliver quality client service:
- Commit to a service pledge – a promise of how your firm will commit to the client;
- Manage price effectively – communicate the value your firm delivers; value buyers will appreciate the service you offer and will use you again;
- Say ‘no’ more often – why this is a crucial part of delivering an excellent client service; and
- Increase team productivity – look at your firms’ efficiency and success measures across the board.
Simon explains, “if you have hundreds of cases you can forget innovation: no one has time because you’re putting out fires every day. If you can do less, better, for more, then you have time to think. Time then allows you to deliver the [promised] service, which allows you to charge more.”
How to achieve the perfect legal business
Running a successful modern law firm demands a strong client-focus from law firms leaders. Simon emphasises the importance of team work to create the perfect legal business, so everyone is responsible for driving in the same direction and can recognise the contribution of all roles.
When all of these parts work in harmony it improves efficiency, service – and ultimately, cashflow.
Watch the full interview with Simon McCrum now to discover more advice and guidance on honing your firm’s competitive advantage and improving cashflow. You’ll also hear Simon’s exclusive advice to all SME law firms that, if not addressed immediately, could have a detrimental impact on your future success.
Kindly shared by Osprey Approach
