Law Practice Management Asked and Answered Blog

Category: Human Resources

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Aug 31, 2010

Characteristics of Successful Law Firms: Basic Building Blocks – Block Two – Leadership

Last week I discussed the characteristics of successful law firms and introduced the basic building blocks that successful firms typically have in place. These are:

Last week we focused on partner relations as a core foundational building block.

The second basic building block is leadership. Successful firms have good leadership in place. This may be a single individual or a core group of individuals. Leadership does not always come from the formalized management structure of the firm.

Leadership is one of the major problems facing law firms. Leaders are needed for managing partner posts, executive committee chairs, and practice group heads.  

Leadership behaviors include:

Leadership skills will need to be included in compensation systems.

Seven traits of effective leaders include:

  1. Make others feel important
  2. Promote a vision
  3. Follow the golden rule and establish trust
  4. Admit mistakes
  5. Criticize others only in private
  6. Stay close to the action
  7. Walk the talk.

Leadership is what makes things happen and propels the firm forward, facilitates new directions and attainment of strategic goals, and provides the firms the resiliency needed in today's challenging competitive climate.

Law firms without leadership are easy to spot. They are the firms that are "stuck-in-a-rut", unable to reach agreement or concensus on new ideas, stagnating profitability, partner defections.

Firm must pay attention to this key area and develop leaders for all roles mentioned above.

Click here to read my article on leadership

I will address each of the other building blocks in upcoming postings.

John W. Olmstead, MBA, Ph.D, CMC
www.olmsteadassoc.com

 


 

 

Aug 23, 2010

Characteristics of Successful Law Firms: Basic Building Blocks – Block One

Question:

My partner and I just started our firm two years ago. We have one associate attorney and one staff member. As we grow our firm what should we keep in mind so we don't repeat some of the mistakes that I have seen in other firms that have not been successful?

Response:

I often refer to what I call the Basic Building Blocks of Successful Law Firms which are:

Lets take the first one – Partner Relations. This is the foundation (bedrock) of a successful firm. A successful firm has a healthy partner culture – a good marriage. In such a culture partners share common vision and purpose, respect one another, shoot straight with each other, and have difficult conversations and discussions when needed and deal with issues and problems. In many firms this is not the case and these firms often are characterized by the following:

Such firms are often doomed from the start. Firms that don't get this foundational building block right will build a firm on a shaky foundation. Before forming a partnership – go slow and get to know the other lawyer or lawyers and insure that the marriage makes sense, that you share similar goals and values, that you will be compatible, and you will be good partners. Once you have made the commitment – communicate, communicate, communicate and deal with issues in real time.

I will address each of the other building blocks in upcoming postings.

John W. Olmstead, MBA, Ph.D, CMC
www.olmsteadassoc.com

 

Jul 15, 2010

Getting Control of the Financial Side of Your Law Practice

Question:

I am a partner in a 14 attorney firm. Our bookkeeper has been with us for 20 years. We have a time and billing system, a separate bookkeeping system, and a separate database for clients, and something else for trust accounting. The other partners and myself do not know the name of the software that we are using, don't know how to access the software, and we have to ask the bookkeeper for any financial information that we require. We feel like "hostages". She gets offended when we ask questions. When we do receive information we don't know how to read or interpret much of the information. How can we get control of our firm back?

Response:

It is imperative that owners and partners in a law firm have access to financial information on a timely basis, understand the information, and use the information in a proactive way to manage the practice. We suggest:

The owner (or an appointed partner(s) in larger firms) obtain detailed training on the accounting software system(s) along side the bookkeeper when the system is implemented. In addition to general operation of the software, special training should also be obtained on intepretation and use of the management reports.

In your current situation – this may be a good time to consider upgrading your system and at that time obtain training on the new system, review the roles of all parties, and current procedures.

Insure that you have accounting controls in place and appropriate segregation of accounting duties.

Outline your expectations and requirements of the bookkeeper, meet with her/him, and communicate appropriately.

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


 

  • Sep 30, 2008

    Communication Skills

    Question:

    We are a 17 attorney IP firm in the Southwest and I am the managing partner. We are having a lot of problems with poor attitude in the office, inadequate production, employee turnover, and we have recently lost a few key institutional clients. I believe that the core of our problem may be poor communication skills on the part of our attorneys? What recommendations do you have?

    Response:

    Poor interpersonal communications is often the root cause of many of the management problems that arise in law firms. Here are a few ideas for improving interpersonal communication skills:

    1. Develop a series – a repertoire – of oral communications styles as well as languages to use in various situations with clients, colleagues, and employees.
    2. Understand and manage your clients expectations – (1) clients true objectives for the engagement, (2) the boundaries of your role, (3) kind of information you will use, (4) your role in the engagement and the role of your staff, (5) the product/service you will deliver, (6) what support and involvement you will need from the client, (7) time schedule, and (8) frequency and form of communication.
    3. Employ effective listening techniques with your clients – (1) client face-to-face engagement debriefings, (2) client satisfaction interviews – third party, (3) client site visits, (4) opinion surveys, (5) feedback questionnaires, and (6) client panels/focus groups.
    4. Employ effective office communications systems to faciliate communications with your employees – (1) weekly/monthly staff meetings with agendas and minutes, (2) satisfaction surveys, (3) daily meeting with your assistant, (4) performance reviews tied to a performance management approach.
    5. Match communications complexity to appropriate communications vehicles (face-to-face, telephone, e-mail, memo, letter, voice mail, etc.) Example: Use face-to-face to counsel or critique employees – not e-mail.
    6. Reduce communications noise – (1) setup MS Outlook not to automatically download e-mail, (2) put cell phones on silent, (3) develop cell phone protocols, and (4) use voice mail effectively.
    7. Incorporate the six client service principles into your daily behavior – (1) feel good about yourself, (2) practice habits of courtesy, (3) use positive communication, (4) listen and ask questions, (5) perform professionally, and (6) under promise and overdeliver.
    8. Develop written job descriptions and office policy and procedural manuals.

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

    Jul 15, 2008

    How Large Should a Law Firm Be When It Is Time to Hire an Administrator

    Question:

    How large should a firm be when it is time to hire an administrator?

    Response:

    There is no magic size. We just completed an engagement recruiting an administrator for a seven attorney firm. We also have law firm clients with over 40 attorneys that don’t have an administrator. I believe that an administrator, or office manager, is appropriate in firms of all sizes. It is a matter of attitude and commitment on the part of the partners and whether they are willing to delegate responsibility and authority to an administrator to run the day-to-day operations of the firm. The firm should start with a job description and then decide whether the firm is willing to delegate responsibility and authority. If not, the firm should not hire an administrator.

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

    Jun 29, 2007

    Skill Requirements for Office Managers/Bookkeepers in Small Law Firms

    We are often asked about skill requirements for office managers/bookkeepers in small law firms. (Six attorney and under firms) Many law firms in the six attorney and under size have shared with us their frustration in staffing the billing and accounting function. Often their investment in computerized billing and accounting systems fails to yield desired results due to poor accounting and management skills. Many small law firms assume that legal secretaries also have requisite accounting and management skills. Our experience has been that often this is not the case. Training, skills, and work behaviors are often different. Bookkeepers/accountants and secretaries are different animals. Many small firms are better off creating a accounting/bookkeeping position and staffing the position with a qualified bookkeeper/accountant. For many firms under six attorneys that have fully automated the billing and accounting function and have distributed time entry, this is not a full time position. In such instances many firms have either recruited a part-time bookkeeper/accountant solely for the accounting function or have created a combined position of office manager/bookkeeper. This justified a full-time position. Look for the following skills when evaluating candidates. Professional training in bookkeeping and accounting fundamentals as well as management principles.

  • A basic bookkeeping class should be a minimum requirement.
  • While a college degree should not be a requirement for the small firm, some college courses in accounting and management is desirable.
  • Two years+ prior experience in a bookkeeping/accounting position in a professional services firm such as law, accounting, consulting, etc.
  • Prior experience in a law firm bookkeeping/accounting position is desirable.
  • Experience with computers and accounting software as well as spreadsheets. On hands experience with the accounting software that the law firm uses is a plus. However, this is often not possible.
  • Prior office management experience in a law or other professional services firm if this is to be a combined position.
  • Detail orientated
  • Professional and able to deal with multiple demands, multiple masters, and the politics of a law office.

    • May 15, 2007

    Problems With Office Staff Getting Along

    Question: I am the managing partner in a three attorney firm and am having problems with office staff members getting along. Office conflict is rampant. Any suggestions?

    Response: You must 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 minutes 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. John W. Olmstead, MBA, Ph.D, CMC

     

     

    Jan 31, 2007

    Future Investments

    Question: If a law firm could select only one area for future investment, where would you recommend that such investment be made?

    Response: In their people – their intellectual capital. I am amazed at the minimal investment that law firms make in their staff. Law firms are in the knowledge business and their product is their intellectual knowledge. While law firms do invest in their attorneys, such is not the case with the staff. Although staff members are often on the front lines in dealing with clients, very few law firms are providing them with skill training in areas such as communication, marketing, client service, conflict management, effective writing and speaking, time management, computer applications, client complaint management, etc. By the way, attorneys need training in these areas as well. Why do law firms hire the cheapest talent they can find to fill the receptionist position when it is the receptionist who often has the initial contact with a new client. I find it amazing that firms spend huge amounts of money on advertising and marketing and they fail to invest in the other tools needed for effective new client intake. Small firms should consider assigning their receptionist the role of marketing coordinator with responsibility for assisting in the management of client relationships and the firm’s marketing program.

    Jan 26, 2007

    Firm Administrator Priorities

    Question: I am a new administrator with my firm. I am also the first administrator that the firm has had. Do you have any suggestions as to where I should start? What are my priorities?

    Response: As a first administrator you will face a dual challenge. You will have to justify the new position as well as yourself and your performance. You will be second guessed and partners will from time to time question whether a legal administrator was necessary or wise. There will be problems with role clarification. Suggest that you insist on a job description for yourself and a governance plan that outlines the authority and responsibility of the administrator, the managing partner, the executive committee, and the partnership. This will set the boundaries. On your first day at work suggest that you start by meeting with all of the personnel. Meet individually with the partners and associates and get to know them, their desires and hidden agendas. Initially conduct a get acquainted meeting with the staff and then meet with each staff member individually. Discuss their jobs and their duties. Ask for suggestions. Work with the bookkeeper and get up on the accounting operations as quick as you can. Learn the office computer system. Initially your two biggest priorities will usually be personnel and accounting. Read the minutes of firm meetings and office administrative files. If you are weak in accounting and computers obtain whatever additional training that is required. Join the Association of Legal Administrators and attend their meetings and conferences. Our firm provides skill transfer coaching and provides materials for new legal administrators as well.

    Sep 02, 2003

    When Should a Firm Consider Coaching for Their Attorneys

    Question:

    When should a firm consider coaching for their attorneys?

    Response:

    The day to day stress of practicing law and serving clients leaves little time for focusing and investing in the future of the firm. When attorneys exhibit the following it may be time for a coach:    

    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, attorneys do not have time to practice and experiment. 

    The coach's role is that of steward, facilitative leader and teacher. Law firms retain coaches to work with attorneys and staff, mostly on a personal level, to address problems involving lack of commitment, inertia, implementation, self-accountability and follow-up. Firms using coaching in many areas:     

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

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