According to the survey of law firms, almost half (46 per cent) say that their law firm operates with a corporate entity structure, up from 43 per cent last year. Partnerships of individuals remain the second-most popular vehicle, Pitcher Partners said.

Most significantly, 88 per cent of law firms think they have an appropriate legal structure, and 90 per cent of individual respondents believe their firm’s structure is appropriate.

However, a number of partners did not feel their asset protection or wealth accumulation plans were adequate which, Pitcher said, poses an opportunity for firms to engage with partners to more closely link partners’ understanding of firm structures with the management of their personal affairs.

Governance and risk management continue to have an increased focus in professional services firms, Pitcher said in a statement.

“Compliance and regulation requirements have risen, and it is important for firms to have structured support to meet regulatory needs. The importance of these structures was confirmed by 81 per cent of partners indicating that their firm had appropriate governance frameworks established. [Eighty] per cent of partner respondents indicated their firm had appropriate risk management frameworks in place,” it espoused.

Elsewhere, whilst the governance and risk management of the firm was given priority, only 65 per cent of partner respondents indicated their firm had a documented strategic plan and only 58 per cent were satisfied with the strategic planning process, Pitcher continued.

This contrasts, it noted, with the responses to questions around a firm’s culture and its governance framework.

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Further, among partners who identified their partnership culture as collegiate, almost four in five (79 per cent) said they were happy with their firm’s governance framework.

“The fact that 100 per cent of firms who identified their partnership culture as collaborative said they were happy with their governance framework is unsurprising, given these partners most likely played a role in forming and driving change in that framework,” Pitcher said.

“The responses highlight a gap between a firm having a strategic plan and whether partners are happy with the current plan. This gap indicates that, in some cases, partners may be satisfied with the absence of a strategic plan if the status quo is meeting their structure and governance expectations.

“Of course, this highlights how challenges within a firm’s culture can arise.”