Law Practice Management Asked and Answered Blog
Category: Human Resources
« Earlier | Later »Jan 14, 2014
Law Firm Administrator/Business Manager – Essential Skill Sets
Question:
Our firm is an eight attorney firm located in Minneapolis. We have 5 partners and three associates. I serve as the managing partner and frankly I do not have the time or the skills to do an effective job. My performance as managing partner is marginal at best. We have recently been discussing hiring a professional legal administrator to manage the firm. What are the essential skill sets that we should be looking for?
Response:
Larger firms that have several administrators/managers can have the luxury of having specialists – for example a HR manager, a IT manager, a Marketing Manger, a Finance/Accounting Manager, Executive Director, etc. In a firm your size you need a hands-on generalists that can perform all of these roles. The top three skill sets that you should look for are:
- Accounting/Bookkeeping/Financial Analysis Skills
- Human Resources – especially leadership and strong interpersonal skills
- Marketing
I would look for someone with 5 years or more experience in managing a law, CPA, or other professional services firm and a B.S or B.A. degree in business, management, or accounting.
Click here for our blog on governance
Click here for my article on leadership
John W. Olmstead, MBA, Ph.D, CMC
Sep 24, 2013
Law Firm Administrator/Business Manager – Establishing Presence & Earning Respect
Question:
Our firm is a 8 attorney firm located in downtown Chicago. We have just hired our first administrator/business manager and he starts in two weeks. We are concerned that we get started on the right foot so our experience is successful. Any thoughts?
Response:
Relationship With Partners
On the first day of employment with the firm, the administrator must begin to develop a relationship with the firm’s partners that is based upon need, understanding, credibility and trust.
Governance Plan
Business management in many law firms suffers from decision-making paralysis — in other
words, helpless inactivity and the inability to act decisively. Lack of effective implementation of decisions is also evident. The result: missed opportunities and a deteriorating competitive position in the legal marketplace. Administrators who can be proactive and turn this situation around will be off
to a good start to solidifying their positions in their firms.
- Start with a governance plan.
- Design and implement an effective governance plan and structure in the firm.
- Distinguish between policymaking and overall governance, practice management and
administration. - Establish boundaries by defining roles and responsibilities for the partnership at large,
managing partner or executive committee, administrator or office manager and
practice group heads. Specify these roles in job descriptions and have them
approved by the partnership. This will help reduce the second-guessing that
inhibits decision-making in many firms. -
Ask everyone concerned to respect the boundaries. Encourage attorneys to
resist second-guessing and instead allow others to perform their roles.
Click here for our blog on career management
Click here for articles on other topics
John W. Olmstead, MBA, Ph.D, CMC
Sep 10, 2013
Handling Law Office Staff That Can’t Get Along
Question:
I am the managing partner in an eight attorney firm in Chicago. We are having problems with office staff members getting along. Office conflict is rampant. Any suggestions?
Response:
You should begin by identifying some of the causes. Poor communications often can be the root cause of such problems. Interview each of your staff members individually and probe. What do they think? Is communications a problem? Are roles, duties, and responsibilities clarified? Lack of clarity can in these areas can lead to turf wars. You may want to design job descriptions for each employee and clarify roles, duties, and responsibilities for each employee. Conduct short weekly staff meetings to enhance communications. Use agendas. Take and publish notes of the meetings. Advise everyone of your expectations including all members working together as team members. Let them know that working together as a team is a performance factor that will be considered in performance evaluations and reviews. Conduct periodic performance reviews. Counsel and take action against problem employees.
Maybe it is time to hire a firm administrator of business manager and let them deal with it.
Click here for our blog on career management
Click here for articles on other topics
John W. Olmstead, MBA, Ph.D, CMC
Aug 20, 2013
Law Firm Associate Performance Evaluations
Question:
I am the managing partner of an eight attorney firm in Central Illinois. We have five partners and three associates. Over the years we have experienced excessive associate turnover and have had problems retaining associates. While we believe that we provide adequate feedback to our associates regarding our expectations and their performance in real time and in their annual reviews several of my partners believe that we can do better. I would appreciate your thoughts and suggestions.
Response:
One of the most frequent complains I hear during interviews with associates in law firms of all sizes is lack of specific detailed feedback, unclear or non-existent expectations concerning their performance and future career progression, and vague informal performance reviews.
Here are a few suggestions:
- Institute a system where associates, especially when they are new, have a chance to work with all of the partners in the firm.
- As managing partner solicit feedback from your partners and meet monthly with each associate and discuss their performance during their first two years of employment with the firm.
- Annually conduct formal performance reviews with each associate. Before the review obtain specific feedback from each of the partners and have each partner complete a written review of each associate using the associate performance rating form. Ask each associate to conduct a self-evaluation using the firm's associate performance rating form and then conduct a detailed review with each associate. The review should be detailed and specific and should be developmental with specific goals and timelines established. Document the review in the associate performance rating form.
- Consider developing an associate career progression program (partnership track) and committing it to writing. The program should outline the timeline for first consideration for partnership, competencies and performance factors, what partnership means in your firm, how an associate becomes a partner, buy-in or capital contribution requirements, voting, etc.
- Be honest and open with your associates – don't try to be Santa Claus – tell them the truth, have the difficult discussions, and make the tough calls. Be accessible.
Click here for our blog on career management
Click here for articles on other topics
John W. Olmstead, MBA, Ph.D, CMC
Jul 30, 2013
Impact Of Law Firm Growth Upon Management and Organizational Structure
Question:
Our firm is a five attorney firm in Peoria, Illinois – three partners and two associates with four staff members. One of our legal assistants wears two hats – she serves as our office manager and also performs legal assistant duties for clients. Three years ago we had two attorneys and two staff members. We are feeling the consequences of our growth – our caseload has increased by 200%, our overhead is much higher and even though we have greater revenues – our take home earnings is less. We are overwhelmed. I would appreciate your thoughts?
Response:
It sounds like your firm has outgrown your management (organizational) structure. A firm with nine people is a different firm than a firm with four people. You are at a difficult size – large enough to feel the pains and challenges of being larger than two attorneys and two staff members but not large enough to reap the organizational benefits of a larger firm such as a full-time firm administrator, accounting manager, HR manager, etc. (I believe that as a law firm grows – management gets harder until a firm gets to around 12 attorneys – then as the firm begins to put in place a management team – it gets easier.)
In the meantime you might want to consider the following:
- Create an organization chart and map out your management structure for the two management sides of your firm – client services and business services.
- Define roles, responsibilities, expectations, and accountabilities for each management function and specify in job or position descriptions. (Example: Partnership, Managing Partner or Management Committee, Office Manager, IT, Accounting, HR, etc.)
- Assign your people to the positions – some may do double duty – for example an office manager may perform duties of office services manager, accounting manager, and human resources manager.
- Determine if your office manager is best suited for legal assistant work or office management. Determine where her interests lie. The firm may have outgrown her management abilities and she may not be able to function well in both roles forever. An effective office manager should have good accounting, interpersonal, and human resource skills. The firm may need to begin to use her in one role.
- Consider a full-time office manager position that handles accounting, HR, IT as well as other functions as needed. (This could be the existing office manager or some recruited for the position.)
- Begin to formalize the firm a little more – conduct annual performance reviews with goal setting for all attorneys and staff – document procedures and policies in an office procedure manual and employee handbook.
- Get a handle on the financial management function – not just the bookkeeping – but proactive financial management that sets goals for operations and production and uses key metrics and dashboard reports to insure that the firm is performing as it should in real time. Don't wait until the end of the year to find out that the firm has fallen way short financially – then it is to late to take corrective action.
Click here for our blog on financial management topics
Click here for a short article on the topic
John W. Olmstead, MBA, Ph.D, CMC
Jun 04, 2013
Problem Law Partners
Question:
Our firm has been discussing how to handle one of our partners. We are are 12 attorney firm in Houston. One of our partners who is one of our highest fee producers and best business getter's simply won't follow firm policy or play by the rules. He won't turn in time-sheets in a timely manner, he is argumentative with others in the office, and not a team player. He is "me first" while the rest of the partners in the firm are mostly "firm first". We are trying to build a team based practice and this one partner is holding up our progress. Do you have any thoughts or suggestions on how we should handle this?
Response:
Dealing with "maverick partners" is always a challenge. Of course they seem to always be the heavy hitters and this makes it that much more difficult as often there are major clients and large sums of money at stake – at least in the short term. This can also be major issues and large sums of money at stake in the long term if you don't deal with the maverick partner as well. In addition you won't be able to achieve the vision and goals the firm is trying to achieve.
- For starters – if you have not already – create a well understood set of firm core values or code of conduct that governs behavior in the firm. For example, in most firms people are expected to work hard, be honest, and treat each other with respect.
- Partners as well as all other attorneys and staff should behave in a collaborative, cooperative, and team-orientated manner.
- Partners as well as all other attorneys and staff should comply with all firm policies and procedures.
- Enforce firm policies for all – no exceptions.
- Consider coaching, counseling or other forms of outside assistance if they could prove helpful.
- Lay down the law – confront and deal with the problem partner sooner than later – even if it means he or her leaving the firm.
Many firms have had to deal with the problem of a maverick "huge business generator" who just wouldn’t cooperate with firm policies and caused conflict and tension in the firm. It is an unplesant task – but in the end – worth the investment. In the end he or she either conforms or leaves the firm. We have been advised by our clients that even though they may have struggled in the short term as the result of the loss of a major fee producer – in the long run the firm was better off and should have done it earlier.
Click here for our blog on partnership matters
Click here for articles on other topics
John W. Olmstead, MBA, Ph.D, CMC
Mar 05, 2013
Law Firm Partner Conflict: Ideas for Resolution
Question:
We are based in Kansas City, Missouri. We have two partners, two associates, 5 staff members, and have been together for 6 years. The firm is the result of a merger of each of the two partner's practices a few years ago. The integration has not gone well. We are quite polarized. Each partner operates as a separate island, does his own thing without regard for the other partner, and staff follow suit. Each partner has very different practice values, approaches to practice, and goals. Conflict has escalated to the point when productivity and profitability has suffered and everyone is miserable. Would you share your thoughts?
Response:
Conflict is not always bad – sometimes conflict can actually be productive if it can be effectively managed. Destructive conflict on the other hand can destroy a small law firm. I often try to look at conflict from both a micro and macro point of view.
From a micro perspective I would look at the individuals themselves. Are their personalities compatible? Do each of the partners have the same vision for the firm and share similar core values, propensity for risk taking, need for control and tolerance for ambiguity?
From a macro perspective I would look at some of the organization and structural characteristics of the firm. This might include internal communications systems, interdependence of work tasks, clarity of job roles and responsibilities in the firm, decision-making, resource sharing, etc. Often people are stepping over each other and if we change some of the structural elements we can resolve the source of the conflict.
It is easier to fix and resolve macro level conflict than micro – individual – personality caused conflict. Your situation sounds like micro – individual – personality caused conflict and general incompatibility. Unless your firm wants to operate as a "long ranger" firm operating essentially as independent practices you may want think long and hard if it makes sense to continue the partnership.
Click here for our blog on partnership matters
Click here for articles on other topics
John W. Olmstead, MBA, Ph.D, CMC
Feb 24, 2013
Mentoring Law Firm Associates: Getting the Basics Right
Question:
I am the chair of our three member executive committee. We are a 20 attorney firm in Atlanta. We have 5 partners and 15 associates. We have done a terrible job of mentoring our associates and we need to do better. Do you have any ideas?
Response:
A law firm's greatest asset is its people and your associates are your firm's future. Lack of mentoring is one of the biggest complaints that we hear from associates in on-site interviews.While you may be too small for a comprehensive formal mentoring program you should at least explore an informal program. Start with baby steps and go from there.
The keys to successful mentoring relationships involve the mentor and mentee deciding on the logistics up front. Many potential mentoring pairs fail to form because the parties did not agree
on the little things up front. Below are tips designed to help both participants in formal and informal programs:
1. Meeting schedule: Decide on an approximate meeting schedule. Suggest that meetings be scheduled at least once a month.
2. Means to schedule meetings: Share the best way to get on each other’s calendar.
3. Scheduled meetings: Don’t wait until the end of one meeting to schedule the next. Always have the next two or three meetings on the calendar.
4. Length of program/partnership: For formal programs; the firm may suggest a length of time to meet (usually a year). For informal mentoring, suggest having a date on the calendar to review goals and examine the relationship.
5. Confidentiality: Mentors and Mentees need to discuss what confidentiality means to them. It is the foundation of trust, which is the basic currency of mentoring.
Click here for our blog on career management
Click here for articles on other topics
John W. Olmstead, MBA, Ph.D, CMC
Oct 16, 2012
Maximizing Law Firm CLE Investments
Question:
We are a 18 attorney firm in Wheaton, Illinois. We have started the preparation of our budget for 2013 and are looking for ways to maximize the benefits from our CLE and other training and education investments. Any ideas?
Response:
Training and skill development is not easy. Studies reveal that 90 percent of the people who attend seminars and training sessions see no improvement because they don’t take the time to implement what they learn. Practices create habits and habits determine your future. Up to 90 percent of our normal behavior is based on habits. The key to skill learning is to get the new skill to become a habit. Once the new habit is well developed it becomes your new normal behavior. This requires practice. Unfortunately, law firms do not give employees time to practice and experiment.
Research on memory and retention shows that upon completion of a training session, there is a precipitous drop in retention during the first few hours after exposure to the new information. We forget more than 60 percent of the information in less than nine hours. After seven days only 10 percent of the material is retained. Most memory loss occurs very rapidly after learning new information. Your attorneys and staff can improve their memories by:
- Engaging in rehearsal/practice.
- Scheduling distributed practice.
- Minimizing interference.
- Engaging in deep mental processing.
- Emphasizing transfer.
- Organizing information.
Skills become automated through practice. The more we perform a set of actions, the more likely we are to link those actions into a complete, fluid movement that we do not have to think about. With enough practice, employees can become fluent in many different physical and mental skills.
Provide your attorneys and staff with time to practice and experiment. Schedule lunch and learn programs. Provide ongoing training in small bite size chunks relevant to the needs of the firm in a just-in-time fashion.
Use it or lose it!
Click here for our blog on HR topics
Click here for our articles on other topics
John W. Olmstead, MBA, Ph.C, CMC
Sep 12, 2012
Job Description for A Bookkeeper – 5 Attorney Law Firm
Question:
I am the owner of a five attorney firm in Chicago. Including staff we have a total of 13 people working at the firm. As we have grown our approach to handling billing and accounting has been piecemeal. We have a combination of several people handling various tasks including a couple of outsourced vendors as well. Frankly it is a mess. I want to restructure and consolidate all the tasks and responsibilities into one bookkeeper position. Do you have a job description that would help guide me in my search?
Response:
Here is a job description that might help get your started.
Position Summary
The primary function of this position is to perform the billing, bookkeeping and accounting functions of the firm. This position requires an experienced and accomplished person with a strong bookkeeping and computer background. The position requires skills and experience in bookkeeping, accounting, law firm billing and QuickBooks software as well as Microsoft Office Products. The position requires experience in a law or other professional service firm environment.
Reporting Relationship
This position reports to the firm owner.
Required Knowledge, Abilities and Skills
1. Must have at least 2+ years bookkeeping experience as a full-charge bookkeeper with responsibilities including client billing in a law or professional service firm environment.
2. Must have successfully completed coursework in bookkeeping/accounting. An associate degress in bookkeeping/accounting is desirable.
3. Must have experience with law firm billing or other professional service firm (TimeSlips or appropriate software that the firm is using) and accounting software (i.e. QuickBooks) as well as Microsoft Office Products.
4. Must possess strong administrative and organizational skills.
5. Must have strong interpersonal and communications skills.
6. Professional appearance and manner.
Duties
1. Perform all bookkeeping functions
2. Performs all client billing functions and other accounts receivable functions
3. Pay vendor bills and manage accounts payable.
4. Perform all data entry of cash receipts and client costs in billing and accounting systems.
5. Perform all data entry of cash receipts and disbursements for the IOLTA trust account in the accounting systems.
6. Process credit card transactions.
7. Reconcile bank statements.
8. Work up and make bank deposits for the operating and IOLTA accounts.
9. Handle payroll.
10. Handle Insurance
11. Provide all required financial reports to the firm owner on a monthly basis.
12. Filing.
13. Coordination with the firm's accountants.
14. Management and oversight of the billing and accounting systems.
I hope this helps you get started.
Click here for our blog on financial management topics
Click here for a short article on the topic
John W. Olmstead, MBA, Ph.D, CMC
Categories
- Career Management
- Client Service
- Coaching
- Compensation
- Competitive Business Models
- COVID-19
- Culture
- Financial Management
- Governance
- Human Resources
- Laterals
- Leadership
- Management
- Marketing
- Mergers
- New Firm Startup
- Offices and Facilities
- Partnership
- Practice Sale
- Profit Improvement
- Project Management
- Strategy
- Succession/Exit Strategies
- Technology
- Trends
- Work Life Balance