Master the business of law: Fundamentals and best practices
James Markham and Darren Mee, authors of The Legal MBA, share their expert insights on mastering the business side of law, offering practical advice for running a successful firm, on episode 12 of Osprey Approach‘s Empowering Law Firm Leaders podcast
In this conversation, James Markham and Darren Mee, authors of The Legal MBA, discuss common pitfalls to avoid, standout practices from top-performing firms, strategies to thrive in a competitive market, and the critical role of aligning team behaviours with the firm’s strategic goals.
- Strategies to differentiate your firm beyond “people”
- How to align team behaviours with your strategy
- Creating and implementing effective service propositions
- Tips for creating effective process maps
- How to decide what tasks are worth automating
Essentials for being successful in the business of law
Markham and Mee highlighted four key examples of exceptional practices they’ve observed in SME law firms:
- Prioritisation and delegation — Markham shared a case study of a practice group leader who successfully balanced a full fee-earning portfolio, managed a large team, and maintained personal responsibilities. The key? Clarity on what to focus on and effective delegation.
- Financial hygiene — Mee stressed the importance of timely billing and managing work-in-progress (WIP). “Getting their financial hygiene right is crucial for maintaining cash flow and avoiding financial pitfalls.”
- Client-centric approach — Firms must clearly define their target clients and align their services accordingly. Mee explained, “Successful firms answer two questions well: Who do we serve? What do we offer?”
- Strategic focus — Markham and Mee agreed that a clear vision, combined with disciplined execution, is vital. “It’s not about saying no to good ideas, but knowing when to say ‘not now.’”
Differentiating your firm beyond ‘people’
Markham and Mee argue that relying solely on the quality of your people isn’t enough. Markham advised, “Step outside your internal view and look at your firm from the client’s perspective.”
Mee emphasised the power of specialisation: “The narrower your focus, the more effective you become. Being the go-to firm for M&A in chiropractic care centres, for example, allows you to market, hire, and structure services more effectively.”
Aligning team behaviours with strategy
Aligning daily behaviours with strategy is critical for maintaining a consistent brand and client experience. Markham highlighted common mistakes firms make, including failing to clearly communicate their strategy.
Mee discussed managing the tension between good ideas and strategic alignment: “It’s about having a clear vision and executing it consistently.”
Creating effective service propositions
A service proposition must clearly outline the problem, how the firm solves it, and the journey from problem to solution. Mee explained, “It should also have a fixed fee or value-based pricing model to improve efficiency and profitability.”
Markham suggested building a value ladder, where services range from free educational content to high-value bespoke solutions. This ensures that clients receive value at every stage.
How SME law firms should invest their IT budget
Many SME firms are increasing their tech spend, but how should they allocate their budgets to maximise ROI?
Markham and Mee advise firms to:
- Map processes first – Understand your current workflows before investing in tech.
- Prioritise automation for repeatable tasks – Automate high-frequency, time-intensive activities.
- Use business intelligence tools – Leverage analytics to drive better decision-making.
Markham warned, “The goal is to ensure that the time saved by automation is greater than the time spent implementing it.”
How to encourage experimentation and innovation
Leadership plays a crucial role in fostering change. Markham noted, “The people at the top must actively support innovation. Encouraging and empowering change-makers within the firm is essential.”
Mee highlighted the need for better training budgets, explaining that firms must help their teams become better users of technology and managers of their own time. “We must train people in skills like design thinking and minimum viable product (MVP) development.”
Preparing for the law firm of the future
To navigate an increasingly competitive market, SME firms must focus on:
- A client-centric approach
- A clear strategic vision
- Effective service propositions
- Smart technology investments
- Encouraging experimentation and innovation
By mastering the business of law, firms can enhance efficiency, improve client satisfaction, and ensure long-term success.
Watch the full interview with James Markham and Darren Mee now to discover more advice on mastering the business of law.
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