Our latest webinar (“Shaping the Future: Leveraging the Power of Culture in Law Firms”) drew considerable interest from the legal profession, with over 100 participants signing up to the live session. Our panel comprised Jonathon Bray, Chris Sweetman, and Ed Marshall, who explored the regulatory and strategic importance of cultivating a positive culture in law firms. Here are the key takeaways from the session.
The Regulatory Perspective on Culture
Understanding the SRA’s Role
Ed Marshall, a risk management consultant with Jonathon Bray, opened the discussion by highlighting the Solicitors Regulation Authority’s (SRA) growing interest in regulating culture within law firms. This interest is rooted in thematic reviews and investigations revealing that toxic work environments often lead to misconduct and ethical breaches. According to Ed, a significant portion of misconduct cases he encountered as an SRA investigator were influenced by the pressures and negative aspects of firm culture.
Thematic Reviews and Rule Changes
The SRA conducted a thematic review in 2022, involving detailed interviews with law firms to understand their cultural environments. Findings from this review showed that while many firms had supportive measures in place, a notable percentage still struggled with high-pressure environments and unrealistic targets, leading to detrimental effects on staff well-being and ethical behaviour. This led to the introduction of specific rules in 2023, mandating law firms to treat colleagues with respect and fairness, and obliging senior leaders to challenge toxic behaviours.
In an unusual step, the SRA and Solicitors Disciplinary Tribunal (SDT) issued a joint statement in 2023. It indicated that “evidence of a pervasive toxic culture” within a law firm should be dealt with as a serious matter by the SDT, rather than being punishable by SRA fine or rebuke.
The Strategic Importance of Culture
Defining and Shaping Culture
Chris Sweetman, a highly regarded executive coach and consultant to the profession, emphasised that culture encompasses both visible elements like office layout and policies, and intangible aspects like beliefs and values. He used the analogy of an iceberg to describe culture, with the bulk of it being the underlying beliefs and values that shape behaviour within the firm.
Aligning Culture with Strategic Goals
Chris stressed that firms often need to shift their culture to align with strategic goals, whether these goals are related to business growth, innovation, or talent retention. For instance, moving from a hierarchical to a more collaborative culture can enhance cross-departmental collaboration and client service. Chris highlighted that values must be more than just “words on a wall”; they need to be lived and breathed by everyone in the firm.
Practical Steps to Cultivate a Positive Culture
Engaging Staff in the Process
A consultative approach is crucial for successful cultural change. Chris recommended involving staff through focus groups and surveys to gather diverse perspectives on the firm’s values and desired behaviours. This inclusive process ensures that the final set of values and behaviours is representative of the entire firm and garners greater buy-in from all levels.
Embedding Values in Daily Operations
Once values are defined, they should be integrated into the firm’s daily operations. This can be achieved through incorporating values into performance reviews, leadership behaviours, and 360-degree feedback processes. Chris noted that feedback should focus on the extent to which certain behaviours are observed, rather than simply assessing performance.
Leading by Example
Leadership plays a pivotal role in modelling the desired culture. Leaders must consistently demonstrate the values and behaviours they wish to see throughout the firm. Chris mentioned that when leaders visibly embody the firm’s values, it reinforces these behaviours at all levels, creating a cohesive and positive work environment.
Conclusion
Our webinar underscored the dual importance of culture from both a regulatory and strategic standpoint. Law firm leaders should recognise that fostering a positive culture is not only a compliance requirement but also a strategic lever that can drive business success and employee satisfaction.
Watch the recording (use passcode TzB08+1*)
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