TCii launches strategic service for UK law firms – July 2013
TCii has launched a service specifically designed to help UK law firms survive and grow in an ever more competitive legal services marketplace. Legal Leverage™ is a comprehensive and cohesive set of interventions designed to rapidly help legal practices to gain competitive advantage and achieve sustainable, profitable growth.
While today’s economic and regulatory climate means that many UK business sectors are undergoing radical and often painful change, the legal sector has perhaps been one of the hardest hit, thanks to:
- an increasingly heavy regulatory burden
- restrictions on sources of revenue
- growing competition as a result of the Legal Services Act
- accelerating consolidation among legal practices in certain segments.
Vanishing legal practices
As a result of all these issues, the number of private practice firms in the UK has started to fall for the first time. Around 300 law firms disappeared from the total numbers between 2011 and 2012, and the rate of decline is likely to increase.
The number of mergers and acquisitions in the legal services sector is also rising, as larger firms seek to increase their market share and smaller firms join forces as a defensive measure.
Testing times ahead for UK law firms
The next year or so will bring further challenges in the form of:
- the referral fee ban, which came into force on 1 April 2013
- changes to the “no win, no fee” regime in the personal injury market
- cuts in legal aid funding
- a potential reduction in the number of legal services providers able to be licensed for criminal legal aid
- client demand for more fixed-fee – or at least more flexible – pricing models
- further financial pressures on some law firms.
Some 25% of UK law firms currently expect to change their business strategy in response to the Legal Services Act, according to a recent report by Baker Tilly. A mere 9% were thinking about it in 2010. At the same time, the number of firms believing that the Act will have a positive effect on their business has dropped from 21% in 2010 to just 14% today.
TCii is poised to help UK legal practices overcome the problems they are facing in today’s marketplace, by developing and successfully implementing a simple but robust growth strategy. Our Legal Leverage™ service draws on our consultants’ in-depth expertise in all aspects of business and strategic planning, as well as specific experience of providing strategic help for law firms.
and read our recent case studies:
- A fresh approach helps a top 30 UK law firm increase PEP by 30%
- Mentoring helps a breakaway legal firm to launch successfully in adverse market conditions