Sahar Farooqi, transformation consultant and Founder of recently established Legalencia, talked us through change management challenges within law firms and legal organizations. With his unique background as a criminal law Barrister, international commercial Arbitrator, and now Transformation Consultant, Farooqi outlined the critical challenges and practical solutions for law firms navigating major organisational change in an evolving legal landscape.

From Barrister to Change Catalyst

Farooqi’s journey from practising lawyer to transformation specialist reflects the growing recognition that legal expertise alone is insufficient for modern firm management. Beginning his career at the criminal bar, which he describes as “the absolute vanguard of justice day-to-day for any individual,” Farooqi transitioned to international commercial arbitration before recognising broader opportunities to influence firm development.

His pivotal moment came during his role as transformation officer at Harney’s, a global offshore law firm, where he discovered that “so many law firms are in desperate need of change but they don’t know how to go about it.” This realisation led to the establishment of Legalencia, a change management consultancy focused specifically on law firms and professional services businesses.

Understanding Change Resistance

The Session highlighted fundamental barriers preventing law firms from embracing transformation. According to Farooqi, the primary obstacle is financial: “It’s always money. Why would we spend on this aspect of change when we could just be quite happy with our profit per partner?” This short-term thinking creates a cycle where firms resist investment in transformation despite recognising underlying problems.

The challenge extends beyond financial considerations to structural issues within partnerships. Farooqi identified a particular problem with “legacy equity partners who are just waiting to cash out,” noting that these individuals often resist change initiatives because they prioritise immediate financial returns over long-term firm development. Their influence in partnership structures can effectively block transformation efforts, even when younger partners recognise the need for change.

The Five Pillars of Successful Transformation

Drawing from his experience at Harney’s, Farooqi outlined five essential elements for successful change management:

Willingness to Adapt: The most critical factor is genuine readiness to change. Without this foundation, technical solutions and strategic planning prove ineffective.

Board Leadership: Executive leadership must be fully engaged in the process, moving beyond delegation to active participation in transformation initiatives.

Clear Communication: Firms must articulate compelling reasons for change that resonate with both clients and internal stakeholders, creating a narrative that explains the necessity and benefits of transformation.

Inclusive Process: Successful change requires input from across the organisation. “You can’t just tell people why you are doing it and how you’re going to do it. You have to ask them what they think,” Farooqi emphasised.

Change Champions: Distributed leadership through “change champions” across different jurisdictions and departments ensures transformation efforts reach every corner of the organisation, with local advocates who can communicate directly with their colleagues.

Practical Applications and Common Challenges

Farooqi’s consultancy work reveals three primary areas where law firms seek transformation support:

Board Restructuring: When decision-making processes become paralysed by structural inefficiencies, firms require external intervention to redesign governance frameworks. These situations often involve significant political dynamics and require diplomatic navigation of competing interests.

Growth Strategy: Firms struggle with fundamental questions about expansion, including whether to hire new teams, eliminate unprofitable services, or enter new markets. Office openings in new jurisdictions present particularly complex challenges involving regulatory, recruitment, and cultural considerations.

Culture Evaluation: The most rewarding area for Farooqi involves firms recognising talent retention problems and seeking to understand their cultural weaknesses. This typically occurs when firms experience significant departures to competitors and cannot attribute the losses to compensation alone.

Technology Integration and Vendor Challenges

A significant portion of Farooqi’s work involves helping firms navigate technology adoption, particularly in response to vendor proliferation in the legal technology space. He identifies a critical problem where firms face overwhelming choices from vendors who “purport to offer the same thing” but deliver incomplete solutions.

The challenge extends beyond selection to implementation, where firms discover that promised “complete solutions” require multiple additional products, creating a “pyramid scheme” effect that undermines confidence in legal technology broadly. Farooqi helps firms develop more sophisticated procurement approaches, recognising that “there is no single total solution” and that successful technology integration requires strategic planning around multiple platforms.

Compensation Systems and Cultural Change

The session addressed fundamental questions about partnership compensation models that inhibit change. Traditional “eat what you kill” systems create short-term thinking and resist investment in transformation initiatives. As one participant noted, partners nearing retirement often question why they should invest in changes that will primarily benefit future generations of lawyers.

This compensation-driven culture creates particular challenges when firms attempt to implement change management roles. Traditional partnerships struggle to accommodate transformation officers who don’t generate direct fee income, preferring to hire external consultants for specific projects rather than investing in dedicated internal change leadership.

The Technology Disruption Opportunity

Despite vendor challenges, Farooqi views technology integration as “actually really exciting” and intellectually stimulating. The rapid development of AI-powered legal solutions creates opportunities for firms willing to invest in proper evaluation and implementation processes. However, success requires understanding that current technology solutions address specific practice areas rather than providing firm-wide coverage.

Looking Forward: The Imperative for Change

The Session concluded with recognition that transformation pressures will only intensify. Farooqi’s decision to launch his consultancy at this particular moment reflects his assessment that legal industry change needs are “extreme” while resources for addressing them remain “limited.”

The establishment of roles like “Transformation Officer” or “Chief Transformation Officer” across professional services indicates growing recognition that change management requires dedicated expertise. However, the legal industry lags behind other sectors in embracing these specialised positions.

Practical Recommendations

For law firms considering transformation initiatives, the Session highlighted several practical steps:

• Assess genuine willingness to change before investing in external consultancy
• Ensure board-level commitment extends beyond delegation to active participation
• Develop inclusive processes that gather input from across the organisation
• Identify and empower change champions in each jurisdiction or department
• Approach technology procurement with realistic expectations about multi-solution requirements
• Consider structural changes to compensation systems that reward long-term thinking
• Evaluate cultural factors contributing to talent retention challenges

The transformation of legal practice requires more than technical solutions or strategic planning; it demands fundamental shifts in how firms approach decision-making, resource allocation, and cultural development. As Farooqi’s experience demonstrates, successful change management combines deep understanding of legal practice with sophisticated organisational development expertise, creating pathways for firms to evolve while maintaining their core professional values.