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YOU'RE ONLY AS GOOD AS YOUR SUPPORT STAFF  

How can this be achieved?  

As the FD must first recruit high quality people to build a high calibre professional support team, where must he look?   Is it to the existing legal market, confident that candidates will have a working knowledge of the intricacies of legal accounts, but not necessarily the commercial drive, or is it to the commercial one, where the need to make good financial decisions is integral to enhancing business.  

It is understood that universal compliance throughout the firm to industry regulations including Solicitors Accounts Rules and Money Laundering Regulations is essential, and the ramifications of non-compliance are severe.   When this is combined with the deep seated conviction that only those who have an understanding of law firm culture can contribute in their world, the pool from which to draw candidates becomes extremely limited.   There is now a need to have two complementary strands running through any progressive firm, where law and finance go hand in hand.  

Although there have been some moves in this direction, where commercial aspects have a higher profile, the legal market remains relatively insular in terms of its recruitment policies.   It is still common practice when recruiting a professional support team to source applications from professionals with, ‘experience in law firms’.   The top 100 law firms commonly compete for the same small pool of candidates, who year on year, move between firms to secure brighter futures and larger salaries.   To move the company forward the FD must communicate, to those who are responsible for implementing recruitment policies, the need to recruit from a far wider pool of talent.  

There is undeniably and abundance of finance professionals throughout industry, so why do law firms restrict themselves by insisting that, ‘previous legal experience is a must’?   The answer is, that they themselves are so restricted by professional qualifications, that they are unable to envisage areas not similarly bound and fear a damaging influence from what they perceive as a dilution of knowledge.  

The mitigating circumstances for this reluctance on behalf of law firms to spread the recruitment net wider have been well rehearsed, but it is time for them to build bridges into the wider community.   There must be an emphasis on training, training for this new partnership.   Only with this will the stultifying emphasis on experience be overcome.  

Beyond the horizon  

It is therefore time for law firms to look beyond the legal horizon to the broader spectrum of professionals, whose skills, whilst not encompassing the regulatory or compliance aspects of legal finance, nevertheless, have much to offer in enhancing commercial focus.  

Whilst there is an obvious need for key roles to have the benefit of previous legal experience, transactional staff, responsible for day to day administration and maintenance of the financial area, do not rely on legal expertise to perform at a high level of competence.

Therefore, the obvious place to introduce commercially oriented professionals is where accounting is less governed by industry regulations, that is, at the stage where aspects of business are reported.  

Transactional staff is where the volume lies, and necessarily where compliance begins.   But with aptitude, ability and intelligence for the job, capable individuals can be trained.   Lack of experience in the legal field should not preclude able candidates from being considered by law firms.   In this way the field is opened up and should bring fruitful rewards.  

Potential Hazards 

There is of course the risk factor.   If commercially experienced professionals are introduced into the support team, is there a risk of exposing the firm to potential compliance discrepancies?   Does the risk negate the value of becoming more commercially focussed?   Once again, the answer is clear.   The risk must be a managed one, and this is done by employing a well qualified FD, who has the overview and can pre-empt possible difficulties.  

Reaping the Rewards 

It is clear that those firms who have embraced a more ‘commercially focussed’ approach to their business management, are reaping the rewards of change.   They continue to compete at the forefront of the industry. The role of the FD is a critical one, and those individuals who are well skilled in the art of team building stand out from the crowd.   The industry has room for many more such individuals. 

Author: David Sparkes, Managing Director of legalsupportnetwork.co.uk 

Published In: FD Legal

Dated: Apr/May 2007

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