Talking Heads
David Leck spoke to TLT’s Clara Howard and Helen Hodgkinson about the war on talent, intergenerational working, being forensic when it comes to your values and – yes – digital transformation.
Q. We’re chatting towards the start of a New Year. What are the firm’s priorities over the next 12 months?
CH: Some of our key priorities include adopting AI to streamline marketing and BD [M&BD] operations, improve efficiency and enhance the level of service we provide to our lawyers and clients. We’ll also be adapting to client expectations and the fact they want more from their legal advisers. We’re always looking for new and innovative ways we can work in-step with our clients, deepening our knowledge and understanding to deliver exceptional results. ESG and AI are embedded in everything we do so keeping ahead of opportunities and challenges will be essential. And that includes working together with our clients, utilising our dedicated client listening programme to ensure we’re meeting their needs and requirements and providing innovative solutions to their challenges.
HH: Investing in employee development, which is essential to attracting and retaining talent, is absolutely essential. In a world of constant developments and change, we want to ensure our employees have all the tools they require to succeed particularly in BD and in building effective relationships. Attracting and keeping talent continues to be a priority and a challenge for law firms. And, as always, looking after our people and helping them invest in their wellbeing is so important.
Q.And the challenges and concerns?
CH: The challenges facing professional services in 2024 have seeped into 2025. Although there is some optimism for economic recovery, firms continue to navigate rising costs and a challenging socio-economic market. And political landscapes, where it has impacts on clients or the markets we are working in, is also a concern. More locally it’s where alternative policy decisions are being made or accelerated such as the potential impact on apprenticeships and business use of the levy.
HH: The legal sector continues to face a war on talent, driven by the ongoing rise of salaries in the City. Attracting and retaining skilled and talented individuals remains a critical challenge.
Although digital transformation presents a plethora of opportunities, it also requires significant investment and training. This can be costly and time intensive. However, all these challenges present opportunities to innovate, adapt and thrive in an ever-changing, dynamic market.
Q. The expectations of clients continues to shift I assume, especially around so-called ‘new’ ways of delivering professional service?
CH: Client demands continue to grow with expectations for accessibility, convenience, transparency, flexibility and quick responses. Meeting expectations often requires efficiency in client service and responsiveness and this is where rapid advancements in technology plays a key role. Professional services firms can leverage AI, automation and digital collaboration tools to streamline routine tasks and to deliver those tasks faster and more efficiently. It will also free up time for professionals to focus on more strategic tasks, which will add significant value to the business and enhance the level of support to clients.
HH: Staying ahead of the game is particularly challenging. Clients expect us to advise and, when a market such as AI is so fast paced, making sure we are ahead of the curve and have the right teams takes time, attention and a curious mindset. However, we also know harnessing the generational power we have in the business is key to this and, as with everything, a challenge creates an opportunity.
“Staying ahead of the game is particularly challenging. Clients expect us to advise and, when a market such as AI is so fast paced, making sure we are ahead of the curve and have the right teams takes time, attention and a curious mindset.”
Q. A survey by PwC of some 5000 global CEOs last year found almost half (45%) think their companies won’t be fit for business in the next 10 years unless they transform their operations. [A] Does this surprise you? [B] This must open opportunities for professional services?
CH: Adopting the right technology and utilising data effectively will present huge opportunities to professional services, allowing it to deliver creative and cost-effective solutions to clients. However, continuous change requires a continuous mindset shift. Firms will need to prioritise adaptability and speed, while balancing risks and considering responsibilities and ethics. For most organisations, this will require agility. For others, this will need more drastic action. Those that fail to adapt will fall on the wayside.
HH: This isn’t surprising. In the new world, old ways of doing business just won’t work. Professional services firm of all shapes and sizes are going to need to adapt by delivering services faster and more efficiently if they are to meet demands and stay competitive. Those that don’t adapt will, as Clara says, fall by the wayside. The key in the coming years is keeping your feet on the ground, whilst capitalising on the many opportunities. Our track record in being a little restless and disruptive leaves us well placed.
Q. A headline from your website – ‘With GenAI comes great power and even greater potential liability’ – grabbed my attention, especially as I noticed it on the same day Meta announced it was abandoning the use of independent fact-checkers. Aside from misinformation and disinformation, there are surely issues coming down the line at us on IP, data protection, libel etc?
CH: Isn’t this just a super example of how fast paced the world of digital, AI and tech is? Our statement still rings true, and we are very conscious of the responsibility we have in this space.
HH: Clara is the expert in this area but I have no doubt we are about to see many interesting developments in the coming years.
Q. There’s been a lot of [press] talk recently about DEI. There has been a sense of cynicism around box-ticking and policy writing, but surely it’s vital for businesses to evolve in this area? After all, clients expect it – and we know Gen Z/Millennials are perhaps more inquiring of those organisations for whom they may work?
CH: The cornerstone of any EDI strategy is open and objective conversation in support of understanding. Finding what binds us together is far more important that focusing on what divides us.
HH: Creating the right environment for talent to thrive has never been woke. It’s just good business sense. It would be remiss or irresponsible of us to ignore the fact the landscape has become sensitive.
Q. And, finally, causes for optimism?
CH: Luckily TLT has always worked through its values, and we are seeing future generations that will navigate successfully the next decade of opportunities technology and data will offer. That gives me real cause for optimism.
HH: David, you and I have spoken about this before. We need to trust and have faith in the generations that are working around us. I believe many are seeking to do the right thing working in businesses that have responsibility and accountability at its heart.