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January 2008

Jan 21, 2008


Management Ideas for 2008

As you begin 2008 here for getting started.

  • Take a serious look at the firm's present position in the marketplace. Review financials, compare against financial ratios, compare with both firm past history and against law firm benchmarks. Examine how well the firm is competing. Is the firm too dependent on a narrow base of clients? Is the practice at risk? Conduct a client survey and obtain client feedback both on firm performance as well as possible unmet needs and opportunities. Consider a comprehensive management review.
  • Formulate business goals and develop a strategic business plan as a roadmap for the future.
  • Design and simplify business reports designed to measure the goals identified in the strategic business plan. Strive for a one page summary as the primary report.
  • Require all timekeepers in the firm to submit personal one page business plans which in addition to outlining goals for the year provided fee revenue goals with an element of stretch. The goals should have a stretch component but yet be realistic and attainable. These plans should be approved by the Executive Committee, Managing Partner or the Partnership.
  • In all of our client engagements we typically discover that the root cause of most problems is poor internal and external communications. Poor client service, staff competency and morale, interoffice conflict, and client defections typically can be traced back to poor communications. Work on improving internal communications with firm personnel and external communications with clients and prospective clients. Yes, you have to have meetings now and then. Devise systems to improve communications and implement properly. If a meeting is required – conduct it properly, use agendas and take minutes. Use your email systems. Match the richness of the communication method with the nature and depth of the message to be communicated.
  • Improve relationships with your clients. Studies show that each year 'lack of responsiveness' has been the number one reason for client dissatisfaction.
  • Find ways to focus the firm and foster accountability from all.
  • Undertake a few projects at a time that can be realistically accomplished. Delegate tasks across the firm. All firm personnel should have marketing responsibilities – from the receptionist to the senior partners and everyone else in between. Databases must be maintained, newsletters and articles written, presentations given, clients to be wined and dined, etc. There is work for everyone.
  • Law firms must adopt management structures that enables the firm to act decisively and quickly. Structures that do not support such a culture must be replaced.
  • Jan 21, 2008


    Strategies For Surviving In The Present Economy

    As law firms begin to plan for the new year we suggest the following key strategies:

    Research indicates that three of the biggest challenges facing professionals today are: time pressures, financial pressures, and the struggle to maintain a healthy balance between work and home. Billable time, non-billable time or the firm’s investment time, and personal time must be well managed, targeted and focused.

    Today well-focused specialists are winning the marketplace wars. Trying to be all things to all people is not a good strategy. Such full-service strategies only lead to lack of identity and reputation. For most small firms it is not feasible to specialize in more than two or three core practice areas.

    Based upon our experience from client engagements we have concluded that lack of focus and accountability is one of the major problems facing law firms. Often the problem is too many ideas, alternatives, and options. The result often is no action at all or actions that fail to distinguish firms from their competitors and provide them with a sustained competitive advantage. Ideas, recommendations, suggestions, etc. are of no value unless implemented.

    We suggest the following:

    Jan 10, 2008


    How Can We Determine If Our Law Firm Partner Compensation System Is Working

    Question: Do you have any suggestions concerning how we can determine if our compensation system is functioning properly?

    Response:

    You can start with the following firm – self-test. Has the firm experienced or is it experiencing:

    If your firm is experiencing or has experienced the above symptoms, it is time to really examine where the firm is headed and what messages your compensation is sending out to your partners. Is the firm trying to be a firm or merely a group of lone rangers.

    John W. Olmstead, MBA, Ph.D, CMC

    Jan 08, 2008


    Law Firm Client Satisfaction Surveys

    Question:

    We have recently lost a key partner, several key institutional clients, and we don't know why. We are considering doing a client satisfaction survey to insure that we are not falling asleep at the wheel and providing the best service possible. We also want to make sure we understand current client needs and whether our services are still adequate. What are your thoughts? 

    Response:

    For institutional clients we would recommend telephone interviews, face-to-face interviews, or a combination of both.

    Typically, when we work with a client we establish the initial research objectives of the project and then the best way to achieve them. For example, do you just want obtain feedback from your top 10, 25, or 50 institutional/busines clients or your entire client base?

    In the case of a study population of your top 10, 25, or 50 clients we usually recommend a telephone interview technique. We shoot for a 90%+ response/participation rate. We develop the questionnaire with the client and then conduct the interviews and compile a report consisting of both statistical metrics (grades if you will) and client commentary/narrative. Often it is the narrative commentary that provides the most actionable information. Recently, when conducting interviews of an insurance defense law firm's insurance company clients a client advised us that they had stopped sending new files/cases to the firm because of poor communication and status reporting. Based upon our interviews the firm was able to resolve the internal issues and repair the relationship with the client. The law firm was also contemplating implementing a blended billing rate structure and wanted us to obtain the client's reaction. We also obtain feedback from these clients on what topics they wanted presented in seminars that the law firm put on for their insurance clients – both in group sessions with other insurance company clients and private onsite sessions for individual insurance company clients.

    Before conducting the interviews we ask the law firm client to contact the client and solicit (sell them on) their participation in the study. We then contact them, make the appointment, and conduct the interview. In our proposal for these services we pledge client confidentiality and are willing to sign a confidentiality agreement with the firm as well.

    For individual clients, due to the number of clients, a paper mailed survey is typically used. The response rates will be less (30% tops usually), these will less narrative/commentary, less actionable information, and there will be no ability to probe. In these cases we develop the questionnaire, the law firm mails out the questionnaires for us, the returned questionnaires come to us directly in the provided reply envelope, we compile the data and the report and provide to the firm.

    If you decide to handle the project in-house rather than outsourcing a similar approach would be recommended. Just insure that you staff and resource the project properly.

    John W. Olmstead, MBA, Ph.D, CMC

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