The study of 69 law firms, undertaken by McBassi & Company, identified human capital factors which firms need to ensure they deliver results, satisfy clients and grows its business.

The first factor was about allowing an open forum of innovation in the firm. Appropriate systems for tracking employee engagement was also identified as necessary, while the third factor focused on commitment to employees - and ensuring that employees understood their jobs were secure and advancement was possible.

Les Pickett, a consultant with Pacific Rim Consulting, said the results were about common-sense management that could be applied across most professions and countries. "I suspect that if you did this in Australia, which we may do at one stage, you would get almost the same results," he said.

"The bottom line is that people make the difference. If they have good managers and good leadership then they will perform well. If they have crap managers, then they'll perform like that."

The study also identified two further factors that correlated with a firm's ability to develop its business.

The first included the leadership skills of partners - including their ability to provide feedback and inspire confidence. The second was the inclusiveness skills of managers and partners - particularly their ability to collaborate with employees and invite input.

The results were formulated based on data collected from the firms on various aspects of leadership, management and development practices, and simultaneously analysed with the firm's performance relative to its competitors.

Angela Priestley