The Maturity Institute and Lex Solutions have released inaugural Law Firm Maturity Index ratings and reports on major UK law firms.
The new LFMI is described as a unique measure of success that analyses human value and risk, highlighting comparative Total Stakeholder Value. Key findings from a summary executive report include:
- Law Firm Maturity Index (LFMI) data shows that firms have a significant value opportunity from more mature management of their whole, human systems. Even the most mature law firms can yield almost 40% more value for stakeholders.
- The average LFMI rating for the largest UK firms is BBB. Mature exemplars rate at A+ and above. The three firms with the highest LFMI ratings are Linklaters, Herbert Smith Freehills, and Clifford Chance (BBB+).
- Many firms carry material human risk. Capabilities to assess, manage, and mitigate people and culture risk are rudimentary. The fundamentals of whole system, human governance remain missing.
- The absence of coherent human governance means solving complex challenges, such as integrating ESG, embedding inclusion, and managing workforce well-being, will continue to be challenging, and often elusive.
A copy of the executive report is available here.
Stuart Woollard, co-founder of the Maturity Institute said: “It is very exciting to see the launch of our Law Firm Maturity Index. There is a growing demand by many in legal to redefine success. We also need better ways to understand the health of firms through a human, rather than just a financial lens. Organizational Maturity analysis was designed nearly a decade ago to mirror financial ratings and show how much people matter to the value of a firm. We hope that the launch of a maturity index for the legal sector will help law firms and their stakeholders address some of the really important challenges that are currently being faced.”
Manu Kanwar, founder at Lex Solutions said: “The announcement of the LFMI marks a turning point for law firm benchmarking. For the first time, we are able to assess and compare law firms by their purpose, culture and authenticity. To drive meaningful change in our sector, we have needed an independent, robust and systemic measurement. And now that we have it, we can move way beyond tick boxing to deliver meaningful value for firms, their people and wider society.”
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