Choice point: Tackle this law firm profit problem or go for a surf

BigLaw partnerships’ productivity lesson for big corporates

Stop trying to differentiate your firm

I published a shorter version of Stop trying to differentiate your firm in The Australian Financial Review on 3 May 2019 and later the full text as on my blog, Relationship Capital.

Editor: Joel provocative opening paragraph struck a nerve: “99% of Australia’s full-service law firms have a strategy based on seeking clear market differentiation. In my view, they’re largely wasting their time and money.” So it’s a pleasure to bring the full text to readers of Dialogue.

The accountants re-enter legal. Meh!

There are countless articles on the threat of the Big 4 re-entering the legal market. Yes, they’re cashed-up, capable and well-connected, but I don’t think it will be as smooth a road for them as many are predicting. A deeper analysis suggests there are six factors that will limit their growth.

A professional services value chain

Michael Porter’s famous value chain did NOT have me at hello. I’ve never found it a particularly valuable tool in crafting professional service firm strategy. Most firms don’t talk about “Inbound and Outbound Logistics” or have “Procurement” as a major support function. Distinguishing between “Operations” and “Service” in a service business is just plain confusing.

In the spirit of further developing the theory of the professional service firm, here’s my go at a professional services value chain…