Awards are more than mere baubles for successful firms

OVER the years, Pagan Osborne has been a constant, noisy presence at the Scottish Legal Awards. It has twice won Firm of the Year and picked up three awards last year – Private Client Team of the Year, Rising Star and Specialist Lawyer.

Each victory has been heralded with whoops of joy from the Pagan Osborne table as another trophy is added to the growing collection.

So don’t even think about telling chief executive Alistair Morris that awards don’t matter.

“Trying to benchmark your performance against competitors is incredibly difficult because most law firms keep their financials close to their chest,” he said. “Legal awards give us a chance to see how we are doing against our competitors in a gentle and unobtrusive way.”

Awards are also hugely important internally, Morris contends.

“They give confidence in our own performance to team members who feel they are part of a progressive business that is doing the right things and being recognised for it by independent judges. Awards allow individuals to seek accreditation and accolades for their own performance and there is a pride element in that.”

And clients like firms that win awards: “Clients can make a subjective judgment of one firm over another.”

Awards time is important in the Pagan Osborne office. “It creates a real buzz,” said Morris. “On the day, the texts are going as everybody wants to know how we have done. We have celebrations internally after we win and it creates real enthusiasm.”

There is also a benefit for recruitment: “In the past, people have been attracted to us because they have seen our track record of winning awards.”

So what makes Pagan Osborne stand out – whether in awards programmes or more generally?

“My reading of the law market is that it is static, not growing, though pockets of law are doing better than others. The market is well serviced, perhaps oversubscribed. It is essential to differentiate your service from those competitors. That differentiation, especially with the coming of alternative business structures (ABS), is absolutely essential.

“I am pessimistic for the Scottish legal profession – partly because it is overcrowded and partly because of the threats from external service providers.”

Pagan Osborne, with around 100 staff in offices in Fife and Edinburgh, changed from a partnership to a limited company this year in response to this changing, challenging, climate.

At the time, Morris said this would allow him to attract talent by giving them the chance to buy shares and benefit from dividend payments The firm has also sought that vital differentiation by focusing on its core private client work, including its bespoke Later Years service, targeted at the 50-plus age bracket.

“It is important to have a crystal-clear path and not try to be all things to all sectors,” he said. “They need to identify their sectors and come up with innovative ways of packaging legal services that the public identify with – and want. Profitability and cash are a real problem. I don’t think struggling firms will be able to trade out of that without decisive management. If you keep your head down, it won’t just get better – you won’t survive long enough to let the upturn in the economy save you.”

According to Morris, success will be defined by innovation, decisive and proactive management – and offering value for money and great service to clients. “There is a need for real quality and people who can sell that quality convincingly. It’s about attracting the right people, then creating the right environment for them to flourish.”

That sounds a recipe for success, and here’s encouragement for other firms – serial winners Pagan Osborne are not entering this year. Why? “We do not feel we have a complete story to tell in this particular year; we are halfway through our story,” said Morris. “However, we will still be at the ceremony – and we will have some fun.”

• The Scott + Co Scottish Legal Awards 2012 reward talented individuals and teams working in Scotland in 18 categories, including Firm of the Year and Litigation Team of the Year. There are also awards for excellence in energy, employment, private client work and more. Entry deadline is 30 November. It is free to enter, but a donation is requested for charity partner Children 1st. www.thelegalawards.com