Client Services Bulletin September 1997

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Bulletin Number:

97-001

Date:

September 1997

Subject:

Periodic News

1. YEAR-END WIND-DOWN

Can you believe that September is nearly over and only three months remains until the end-of-the-year. This is a good time to begin thinking about planning for next year.

2. STRATEGIC ISSUES RELATED TO PLANNING

The key issues that law firms should think about are the following:

Competitive Advantage

How can the firm differentiate its services from its competitors? This difference should be a sustainable difference that cannot easily be copied by competitors. It is often the firm's particular style and culture and it relates specifically to what clients consider important. It goes far beyond basic lawyering. It is the essence of specific services offered, how they are delivered and priced, and how the firm conducts business. Successful law firms invest aggressively in securing a sustainable competitive advantage because it is the single most dependable way to achieve above average profitability.

Position on the Value Curve

The value curve illustrates the relative value of various legal services to the client, the volume of work available and the competitive nature and the price that the law firm is able to charge. Types of legal services include:

• Unique. Lawyers are hired for their unique sills. Limited competition and price is very insensitive. This is brain surgeon work and it is the least price sensitive.
  
• Experience. Hired for the experience of the lawyer or law firm. This form of work is more price sensitive than unique type work.
  
• Brand Name. The firm is hired for its name and reputation. This form of work is more price sensitive than experience type work. This is a very competitive area and it consists of the bread-and-butter corporate and other institutional client work that a majority of the mid-size and large law firms perform.
  
• Commodity. The firm is hired on the basis of price and can be performed by most lawyers and law firms and many nonlawyers. Commodity work is the most price sensitive. Approximately sixty percent of the work available in the marketplace is commodity type work.

A firm's competitive strategy will have a strong relationship to its position on the value curve. Many lawyers should consider upgrading their skills and abilities in order to move out of the commodity area. This is particularly true for insurance defense attorneys. If this cannot be accomplished, volume service delivery strategies with a high leverage ratio of associates, paralegals, and staff will have to be considered.

Vision of the Firm

Where does the firm want to be in five years?

Goals

What are the firm's goals for the next five years and for the next twelve months? Goals should be SMART.

S - specific

M - measurable

A - attainable

R - realistic

T - timely and specify a deadline

Action Plans

Specific action plans outlining tasks, persons responsible, and deadlines should be formulated.

3. BOOKS AND PUBLICATIONS

Dr. Thomas J. Venardos's new book entitled "Consulting Success Using Higher Performance Standards" has been released by NESS publishing. His first book entitled "The Responsive Management Manual" is also available. John Olmstead has also published a Management Checklist for Law Firms which is also available. Contact our office for further details.

4. SEMINARS AND PRESENTATIONS

John Olmstead will be presenting to the Missouri SOLO-MAP CPA conference in September on the topics of Business, People, and Technology. Tom Venardos is scheduled to speak at the Institute of Management Consultants annual meeting in Dallas, Texas.

5. OLMSTEAD & ASSOCIATES WHATS NEW LISTSERVER ON THE WWW

We have launched on own listserver on the Internet Word Wide Web. The listserver is an area where interested parties can sign-up to receive our mailings and special announcements automatically via internet e-mail. You can visit our site at http://www.olmsteadassoc.com. To signup select option 3 from our home page.

6. LEADERSHIP

Accountability and leadership at the partner level is still the greatest problem facing law firms in our area and across the country. In order to remain competitive law firms may have to either work at developing leadership skills or acquire these skills through merger or lateral partner acquisitions

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