Q&A: Bronwyn Pott – "There is very little to a law firm other than the people, their skills and their relationships"

In our latest Q&A, long-time Swaab Attorneys chief executive officer Bronwyn Pott discusses her decision to leave the firm after 29 years, the transformation of the business over the years and the secret to the firm’s longevity.

The move to step down as CEO and leave Swaab Attorneys at the end of July must have been a hard one. What led to the decision?
“We spent a good 10 years working on succession (at the firm) and, as a pretty natural progression from that, the structure evolved. I think for everyone it just seemed like the right time.”

You must be pleased with Swaab’s growth over the decades from a sole practice led by Fred Swaab into the current mid-sized partnership of today. What are you most proud of in terms of your association with the firm?
“Our growth has been steady over the last 10 years, in part because we’ve been conservative but also because everyone in the firm really valued the culture we had created and we felt growing slowly would help maintain the culture. Being on the great-place-to-work index for so many years and being recognised for our client service over a similar period was definitely a highlight.

“I’m probably as proud of some of the initiatives the firm has contributed to in the profession. I love the fact that we were able to help create a Diploma of Practice Management. This was an initiative by the Australasian Legal Practice Management Association to try to increase the quality of management in law firms as much as to provide the first step in an education pathway for anyone working in administration in the legal profession.

“The firm supported me through nearly two decades on the committees of the Law Office Management Group and, after its inception, the national board at ALPMA, including three years as national president. Swaab was also involved in the establishment of the Australian Legal Sector Alliance, which is working towards encouraging sustainable practices in the profession. We have always encouraged our people to contribute to their community and the profession, and I think that has paid off significantly over the years.”

What are the biggest changes you have witnessed in your time in the profession?
“Well, that’s a long time. When I started at Swaab people still smoked in their offices, it wasn’t unusual for a partner to have two personal assistants and it could take three days to get your dictation back from (the word processing staff). Most of what we did then was covered by scale and (with) anything else you virtually weighed the file to see how much you could charge the client! The advent of mobile communication, technology, the internet, systemisation and what is effectively the breaking down of the mystique and control around the practice of many areas of law has seen a radical change to what clients expect and, in turn, to the way law is practised.”

Can you nominate some of the biggest management challenges you have faced in your time, and how you overcame them?
“There have been a few – partnership splits, recessions, disastrous relocations, a major client going in-house and the like. In 30 years we’ve been able to reinvent ourselves a few times in response to opportunities and threats. The dramatic effect of the global financial crisis on a couple of our practice areas, and the reality of diminished returns is probably something most will relate to. We were very open about the impact and I was fortunate to have the partners’ support to wear much of the pain (and) we were able to advise our staff that we were committed to keeping everyone.

“In order to fund that, the partners needed to take a haircut and the staff (had) to forego salary reviews until things turned around. That year we rated off the charts for employee engagement and actually ended with an uplift in productivity. It was all in the messaging, which was genuine and was received as authentic. Dealing with the devastation we all felt when our founding partner was diagnosed with a serious illness about five years ago was also a challenge. Again, communication was the key, anticipating that staff would be upset, but continually reinforcing the message that the most important thing they could do for Fred was to focus on keeping the clients happy and doing a good job.”

How about today? What are the key management issues confronting firms?
“The model that (management expert) David Maister articulated (about leverage and a competitive tournament to get to partnership) will have less and less relevance as many of the tasks performed at the base of the pyramid are now being automated or outsourced. I find it quite alarming that many of the new – and lauded – models rely exclusively on trained senior lawyers, in part because clients don’t want to pay for training, but also because the distributed working model works better without the need to supervise anyone. That might be fine for the next 10 years, but what then? Anyone who has tried to hire a five-year lawyer recently knows they are thin on the ground. You only have to look to the year that everyone cancelled their graduate programs to know why. There are some futurists who point to a time in the not-too-distant future when law firms will be technology companies that deliver legal services. That places a whole lot of pressure on practitioners who aren’t tech savvy to face the need to change the way they work.”

Australian firms are experiencing significant market changes. How do you think they are placed for the future?
“The biggest challenge for the future will be reserved for the firms that don’t know who they are. If you haven’t specialised or haven’t found your niche, you may be in for an uncertain future. Every sector of the market has its challenges at present, but for many it’s about relevance.

“Who would have thought that major firms would essentially be adding the function of ‘employment contracting agency’ to their offering? I was starting to feel a bit like ‘Chicken Little’ about a year ago, squawking that the sky was falling in, or that the model was broken. While that may have been a little premature, everyone should be alert to the difference artificial intelligence will make to the practice of law in the near future. Innovation should be on the top of the list for everyone and with that will come the chance to make the most of opportunities that are available.”

In terms of management strategies or philosophies that have served you well in your role, does anything in particular resonate?
“For me, it’s all about the people. When it’s all said and done, there is very little to a law firm other than the people, their skills and their relationships. If you choose well and can connect with what motivates the individuals, you can move the whole group forward. Fred Swaab’s philosophy was that we should be encouraging our people to be the very best that they could be, and I always found that a powerful motivator. Even when it meant they outgrew us and went on to do great things elsewhere, we still celebrated their contribution and were proud of their achievements.

“I always liked the premise that ‘Nice is a four-letter word, too’, and I think we have more than a few partners in the firm that were charmed away from other opportunities by our unfailing ‘niceness’ – and the promise of the Swaab way of life.”

What will you miss most after leaving the firm?
“Well, it would have to be the people. I’ve worked with some of these people for longer than some of our staff have been alive. But it’s not like I’m moving to Mars. I had lunch with a former employee a couple of weeks ago and she said ‘I’ve worked at a lot of places over my career and I don’t really know what it is about Swaab, but the friendships I made there are the most enduring’. I told her I thought it was because we hired good people. People you wanted to keep in your life. A very close second on the ‘things I will miss list’, though, is the level 4 kitchen. Anyone who has seen our client and staff space recently will know what I mean.”

I understand you have plans for the next stage of your career. Can you give us any hints on the direction?
“Not at the moment. I’ve told our staff it will be business as usual until the end of July, and I don’t want to take the focus away from that. But watch this space – after a few weeks resting on a beach with a book or 10, I’ll be back.”

Are there any other messages for law firm leaders?
“I once told a very earnest young man who asked ‘How did Fred build his practice?’ that he had ‘done favours for people for 30 years’ and I got a very despondent look and the response, ‘Well, that’s not a fast track’. A lot of what we did wasn’t quick, but it was done with the view that we were building something to last.”