Regulatory analysis is a perfect example of how regular, intentional analysis can yield immediate, sustainable improvements to profitability through greater protection from risk.
This is the first of a series of posts by Sarah Max, a Senior Walker Clark Consultant.
Each time we sit down with a client to discuss their firm’s needs, Walker Clark consultants begin with the same question: What are you doing now?
It is a simple question that yields powerful information, because it reveals where a firm is putting its time and attention to complete work for clients. We are concerned primarily with this question because it impacts the profitability of a firm; simply put, inefficient work and outdated processes cost more money.
Our recent podcast series on outsourcing addresses just such issues from the perspective of when to outsource a task versus performing that task in-house.
Over the next few blog posts, we would like to build off this idea by introducing some steps firms can take to refine their internal analysis, beginning with regulatory analysis. Regulatory analysis is a perfect example of how regular, intentional analysis can yield immediate profitability through greater protection from risk.
Step 1: Centralize Compliance
Proactive monitoring of regulatory compliance is a paramount first step for any firm seeking to offer comprehensive risk assessment and compliance assurance. Proactive monitoring requires a firm to devote at least one FTE to following and summarizing all relevant sources of information regarding the topic. For example, if your firm provides transactional support and business agreement negotiations for clients that conduct their business internationally, you will want to assign at least one associate in your firm to follow that issue – especially as tariffs and trade alliances swing rapidly from day to day. Without an intentionally assigned, knowledgeable staffer watching this issue, crucial information will be missed, and the client will suffer. Staunch this potential information hemorrhage with a point person that can assess changes and updates as they arise.
The appointed associate should rely on direct, credible sources of information to inform them. Unfortunately, not all news outlets are created equally in this regard. Walker Clark recommends that appointed associates serving in a regulatory monitoring capacity follow this general hierarchy for gathering information:
- Regulatory language – As governments have the responsibility for regulating commerce, immigration, and policy, begin with the regulatory language of the region where the issue originates. For example, if your client is a US-based entity or a foreign one doing business in the United States, remember also to review state and local regulations in addition to Federal ones.
- Industry practice – Most industries have professional intelligence that can be harvested for practical guidance. Professional organizations and consulting firms (like Walker Clark) that have experience navigating niche fields are an excellent place to start. Begin with current media produced like blogs and podcasts; expand the scope of your research to include long-form instructional materials like books or white papers.
- Surveys – Your past and present clients are a wealth of information waiting to be accessed! While a formal survey is beneficial when time and bandwidth allows for the creation, distribution, and subsequent scrub, it isn’t necessary to begin learning from the anecdotal source material your clients can provide. Look through the recent past to see what questions and comments your clients are bringing to your attention. Often, these comments/questions organically narrow the field where your research should focus.
- Colleagues – Your colleagues serving clients in the same industry, like you, are keeping a pulse on the state of industry affairs. Based on the questions and issues their clients are bringing to them, your colleagues may have identified new sources of helpful information that assist your analysis. Such sharing of non-privileged information and insights benefits everyone.
What’s Next?
In our next post, we will discuss the second step in our recommendations for regulatory analysis for your firm: Risk Assessment.
In the meantime, please check out Business Development: Critical Decisions for Law Firms and Their Futures. This insightful handbook, to which our firm contributed two chapters, provides attorneys and firms with tools and skills needed to implement effective business development in today's challenging and fast-changing legal services markets.
Sarah Max
