Governance and firm structure

How best to structure the firm to cater for increasingly competitive markets & ongoing change

Governance structures for firms in the majority of professions have undergone significant change in recent decades. This is due mainly to increased competition on just about every front because of much higher levels of sophistication in the way firms are led and managed, and the complexity of markets which are served. Necessary service mixes can also change in a very short time-frame. Governance systems therefore need to be reviewed regularly and adapted as necessary to meet these changing needs.

The issues that clients address in this area include:

• Whether there is an optimum governance system for a firm of their type?
• How to structure to cater for the multi-dimensional nature of practice arising from multiple office locations, practice groups that straddle such locations and clients which need to be serviced in different jurisdictions.
• Communication systems which support such structures.
  

"Professional service organisation partners or directors are becoming better at recognising that it is often better to trust certain partners or groups of partners in a board framework to make decisions without their direct input, and then to respect those decisions. Partner culture will determine the extent of communication and consultation which is required. It is essential that firms address this important and complex matter and find the balance that is right for the organisation with a view to enabling robust and sensible decision-making to be possible".
Sean Larkan, Chairman, Authentikos

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