'Business as usual does not give you right to exist'

The ability of ordinary people to access justice means firms must reinvent themselves, according to Patrick Allen, senior partner of Hodge Jones & Allen (HJA).

The Jackson reforms, cuts to legal aid, introduction of fixed costs, costs budgeting and new rules on proportionality have created a perfect storm for firms who will now need rethink the way they do business.

"Just because you do vital work, it does not give you an automatic right to exist. It was clear to us that business as usual was not an option - we had to change, be innovative and reinvent ourselves," said Allen.

Two years ago, HJA introduced its 'Continuous Innovation Programme' which saw the firm take a bottom-up review of its structure, management, type of work undertaken, recovery of fees, the work processes it employs and the support required by fee-earners. Allen explained that the programme was developed to continue to deliver the firm's core aim of "using the law to improve people's lives".

Firm management

In doing so the firm has drawn from the experience of different sectors and installed a new management board. The firm's reinvention is expected to increase its £14m turnover by a third over the next two to three years, with profits expected to double.

"There were no sacred cows," said Allen. "We challenged everything and we continue to do so. Everyone in the business has had to respond to the agenda of innovation. We have innovated on big issues, such as governance, introducing a board of directors with clear roles, responsibilities and decision-making powers, to make the firm fleeter of foot and more responsive to the volatile business environment."

Living wage

Allen continued: "We have also innovated on the smaller things, recognising that small changes can add up to make a big difference, from rationalising and reviewing precedents, to relationship management initiatives, to the establishment of a new Legal Help Centre for the take-on of clients. Change is hard and we were aware of the pressures this has put our staff under, so we have simultaneously introduced new staff assessment and feedback procedures to ensure we can understand and respond to their needs. This has included adopting the London Living Wage."

HJA is also undertaking research, through Ipsos MORI, to understand how other law firms are responding to the changes the legal sector is being subject to and what they desire for the future. These results are to be shared with the whole legal community in November, through the HJA Innovation in Law Report, which will aim to stimulate a debate on how the legal system can thrive.