Many question why a partner at the top of their game, being handsomely paid at a prestigious large law firm would decide to roll the dice to launch their own firm. However, with clients mainly loyal to partners and teams rather than firms, ever advancing technology, and the increasing availability of flexible resourcing solutions (across both 'front' and 'back' office), a small but growing number are choosing to do just that.
In our experience, the factors that motivate these founders break down into three buckets:
1. Creation.
The most important thing is the burning desire to create something
new and different both for clients and talent. In many instances
these new launches have a laser focus on a particular practice area
and / or client segment and seek to tailor their offer accordingly,
ensuring talent, incentives, pricing and delivery models are
optimised in a way they often can't be in a large,
multi-service firm. The ability to mould a new culture is also
exciting, with founders able to build teams and design ways of
working and compensation structures that they could not do
elsewhere. Finally, there's the obvious appeal of 'having
your own firm' and calling the shots!
2. Conflicts.
The breadth of activity in large firms means many partners –
particularly those in less core practice areas – are
frequently conflicted out of potentially lucrative (or interesting)
client relationships and matters. In a much smaller, focused firm
this simply isn't an issue (and conflict checking can go from
days (weeks?!) to minutes). Independent firms also have the freedom
to build relationships and work with best-of-breed providers across
the market to deliver consistently premium services as opposed to
being tied to 'one firm' solutions.
3. Compensation.
New firms are able to completely rethink their cost-bases, with
alternative delivery models, cloud technology, reduced office
footprint and on-demand operational support enabling significant
increases in profit margin. Additionally, the focus of these firms
means that there are no less profitable non-core practice areas or
offices to subsidise. Finally, the compensation model can be built
(and rapidly iterated) specifically to support the proposition and
culture of the firm.
For those that have answered the 'why', the question then becomes 'how', especially given they are usually (more than) fully occupied with their existing client, professional and personal obligations. This is where Kindleworth come in. We help our clients stress-test and refine their vision, before mobilising our 50-strong team of experts to deliver – on the launch and beyond.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
