Having worked with many law firms over the years, it is rare for a firm not to have some defined strategic goals. However, despite good intentions, many struggle to manage their business effectively, as they lack an efficient management structure. This can hinder growth and operational efficiency.
Often, there is an inconsistency of approach within firms and even within departments in managing all or part of the business. Accountability is also a problem where there is a lack of consequences for individuals not delivering their agreed actions.
Methodology of the Entrepreneurial Operating System
At Armstrong Watson, we have embedded the Entrepreneurial Operating System (EOS), which ensures the consistency of management throughout the firm and also ensures absolute accountability. This system comes from Gino Wickman’s book Traction.
We often use the analogy of a container filled with rocks and sand. The rocks represent the big, strategic tasks to achieve our goals and objectives, while the sand represents the smaller operational actions. If sand goes into the container first, the rocks won’t fit. The reverse of course is true - if we tackle the difficult tasks first and start by filling the container with the rocks, then the easier tasks, i.e. all the sand, fits neatly around the rocks within the container. The lesson: to prioritise the tough, high-impact actions first to ensure they get done.
We use the same broad methodology throughout the firm, from our management board to our service lines, departments and offices. The three main components are:
Annual strategic goal setting and objectives - creating ‘Rocks,’ key priorities to be achieved in the next three months
Weekly ‘Pulse’ meetings - a 90-minute meeting to ensure the Rocks are on track and that individuals are held to account on promised actions. Pulse meetings also monitor the financial dashboard and identify new issues or blockages, with solutions discussed. This often creates tasks to be completed by the next weekly pulse meeting.
Quarterly Rocks review - a full-day meeting to critically review the progress of previously set Rocks and to identify and discuss new key issues to set as Rocks for the coming quarter.
Establishing a clear vision
Underpinning all of this is the ‘vision’, which serves as the firm’s guiding star and sets the direction of the business, along with its purpose. To determine vision, firms will need to define their essential values, purpose and long-term objectives. Once defined, firms will need to ensure all people are aligned – that they know exactly where the firm is headed and why. Our vision is “to be the best accounting and financial advisory firm to deal with, delivering the best client experience in the United Kingdom.” Our purpose is encapsulated in our quest “to help our clients achieve prosperity, a secure future and peace of mind.”
Challenges and solutions when implementing EOS in your law firm
Implementing EOS can be challenging. The process must be embedded at all levels – the whole team needs to have bought in, not just management. Related to this, the whole leadership team will need to be fully invested.
As with all new initiatives, resistance to change and scepticism will need to be overcome. There will be a time cost for the team in implementing EOS. Management will need to sell the benefits and allow for sufficient time for implementation, as achieving the most out of EOS requires consistent implementation. This can be a challenge as old habits can be hard to change, and EOS can bring many changes. Expectations also need to be managed as there is a risk that Rocks may not be realistic, or too many are set at the same time. To combat this, management should consider setting smaller, more manageable Rocks to begin with. Finally, management will need to ensure that accountability is maintained across all levels.
Using our experience, we help law firms to implement EOS and facilitate the Rocks meetings to ensure traction. Contact Huw Nicholls Huw.Nicholls@armstrongwatson.co.uk or Douglas Russell Douglas.Russell@armstrongwatson.co.uk if you would like further information.
