Law Practice Management Asked and Answered Blog
Category: Strategy
« Earlier | Later »Oct 01, 2009
Are These Good Times to Innovate and Dare to Be Different
Question:
We have had recent discussions in our partner meetings as to whether in these challenging economic times we should play it safe or to step out and innovate.
Response:
As far as the economy – several legal industry sources are advising that the economy may be turning the corner for law firms. According to a PricewaterhouseCoopers Survey – the Worst of the Recession is Over for Law Firms. http://bit.ly/VUEbM. Hildebrandt also recently announced an improvement in the Peer Monitor Index. http://www.hildebrandt.com/Pages/default.aspx.
While all of us need to be cautious concerning playing games of chance and gambling with our professional practices – this is an excellent time to re-examine business models and approaches of the past. Many large and small firms alike are doing just that. Clients are looking for more value for their fee dollars and better client service. Firms that are daring to be different are experimenting and exploring:
- Alternatives to hourly pricing – for real this time
- How to market to break-the-backs of practicing attorneys are finally force leverage and true group practice
- Switching from lockstep career tracks to competency-based tracks for associates
- Alternatives to brick-and-motar offices
- Virtual staffing
- Outsourcing and off-shoring
This recession may have been more that just another recession – it may have been a management lesson for us all – resulting in permanant structural changes to how legal services are produced, delivered, and consumed.
John W. Olmstead, MBA, Ph.D, CMC
May 14, 2009
Strategic and Long Range Planning in Solo and Small Law Firms
Question: I am a solo attorney with no other personnel at the present time other than virtual employees. I hope to add a staff member later this year or early next year. I am frustrated with the success of my practice and feel that I am lost and have no sense of direction or plan for the future. I have been to seminars that talk about the need for a long range plan but it seems that the mechanics of the process is geared to firms that have other partners. How can I best go about long range planning?
Response: Long range (strategic) planning is hard to do by yourself. It is not just the plan that you end up with that is important – it is the planning process itself – done over an extended period of time – that yields out-of-the-box-thinking and real results. Brainstorming needs to take place and you need to work on your plan over say a four to six month period of time.
A strategic plan is different than a business plan. A business plan is a firm startup plan and often used for evaluating whether to startup a business and for securing financing or capital. Typically the audience is primarily external. A strategic plan is for internal use and thus is more of an outline of the firm's mission, vision for the future, long range goals, objectives to be measured in the short term, issues and obstacles that must be confronted, strategies, and specific action items with timelines and milestones. The plan should be short 10 pages or less and should have an implementation focus. Accountability should be part of the plan.
We have numerous solo and sole owner law firm clients that have successfully implemented long range strategic plans. Often we have worked with our client firms on such projects as a part of our six month business coaching program. In this way we are able to do a little each week with the client and serve as an accountability partner.
Click here for an article on planning
John W. Olmstead, MBA, Ph.D, CMC
Apr 08, 2008
Change
Question: I am a legal administrator with a midsized firm in the southwest. Our firm has recently lost two major clients and we have not acquired any new major clients for many years. Other problems regarding failure to innovate also exist. I am concerned that if the partners do not change their ways that we may not still be in business in the next few years. The firm need to change. Where do we start? How can I teach old dogs new tricks?
Response: This is a common problem being reported to us by several of our clients. Institutional clients are now shopping for legal services. They are looking for innovative solutions to their problems. They are looking for law firms that they can partner with and that becomes in essence a part of their team. The old ways of conducting business is no longer working with institutional clients. Law firms need to rethink their business and perhaps reinvent their practices. This will not be an easy task for many law firms. Change does not come easy and it cannot happen unless the firm sincerely desires to change and do things differently. In many cases law firms cultures will need to be changed to a client orientated model. This will take time and patience. Legal administrators will play an instrumental part in this process. The firm may want to start by getting out of the day-to day management rut and begin a process of long term strategic planning. Only then will the roadmap to change be able to be formulated.
John W. Olmstead, Jr., MBA, Ph.D, CMC
Jan 21, 2008
Management Ideas for 2008
As you begin 2008 here for getting started.
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:
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Develop an ongoing brainstorming program to facilitate the process of identifying new business opportunities. Incorporate client surveys into the process. Consider small client advisory boards and focus groups.
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Get that business/marketing plan that you have been talking about for years done for 2008.
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Focus – Focus – Focus your firm
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:
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Recognize that unless your firm is a large firm – full-service may not be an appropriate strategy. Small firms should identify fewer areas of practice and specialize and aggressively market these areas.
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Limit your practice
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Consider industry niches
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Identify three to five key goals and strategies for the year
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Be selective in client acceptance
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Use your business/marketing plan as a tool to keep you on track
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Create an environment in your firm for effectively getting decisions implemented
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Increase your marketing investments. Research over several decades shows that businesses that continued to invest in marketing during a recession had greater growth and profitability than their competitors who decreased marketing investments during the down periods.
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Evaluate your image and your firm identity plan. Consider upgrading your marketing materials.
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Consider ancillary business opportunities.
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.
Dec 07, 2006
5 Tips For Reinventing Your Practice
TIP #1: Develop a business mindset. Become an entrepreneur and learn how to think like a businessman. Look at the world from your client’s perspective. Consider you client your business partner.
TIP #2: Select your clients carefully. Establish client acceptance criteria. Learn how to say no. Dump undesirable clients.
TIP #3: Brand yourself. Look for was ways to differentiate yourself from your competitors. Become the only attorney that can do what you do. Make a decision – what do you want to be known and remembered for? Unique services, unique client groups, different service delivery strategy, personal style. Create a five-year plan for goal accomplishment.
TIP #4: Learn how to become “solutions orientated” and become a consultant to your clients as opposed to simply their attorney. Solutions may involve activities and services other than legal services. Think out-of-the-box and outside of typical frameworks in which you are comfortable.
TIP #5: Conduct a firm-wide management and leadership assessment and identify strengths and weaknesses. Enhance management and leadership skills through skill development training and personnel acquisitions.
John W. Olmstead, MBA, Ph.D, CMC
Aug 02, 2004
Law Firm Brainstorming and Focus Groups
Question:
We have a successful practice but need to do a lot of things differently to move to the next level. How can we generate some momentum and ideas?
Response:
Why not use a few brainstorming focus groups and do some brainstorming.
We find that many firms either don’t engage their people or don’t know how to engage their people. Untapped ideas are in the heads of your attorneys and staff. Using brainstorming focus groups and brainstorming techniques can help the firm improve decision making and tap these ideas.
Brainstorming focus groups are not just another firm or staff meeting.
A focus group consists of (1) people with similar characteristics, (2) that provides qualitative data, (3) in a focused discussion, (4) to help understand the topic of interest.
Size
There groups are typically composed of five to ten people, but the size can range from as few as four to as many as twelve. The group must be small enough for everyone to have an opportunity to share insights and yet large enough to provide diversity of perceptions. When the group exceeds a dozen participants, there is a tendency for the group to fragment.
Purpose
Brainstorming focus groups aren’t decision making groups or committees. They are used to generate ideas. The actual decisions are made after all the brainstorming focus groups are completed, not in the individual groups. The brainstorming focus groups are used to gain understanding about a topic so decision makers can make more informed choices.
The Brainstorming Process
Brainstorming is a technique whereby individuals or groups generate large numbers of ideas or alternatives relating to a decision without evaluating their merits. Listing alternatives without evaluating them encourages group members to generate ideas rather than defend or eliminate existing ideas. Evaluation occurs after a large array of ideas has been generated. Principles for brainstorming include:
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All ideas should be listed. No idea should be evaluated during the first part of brainstorming.
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Creativity should be encouraged. Participants should think outside of the box. All ideas should be recorded, regardless of how frivolous or irrelevant they seem.
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Members should be encouraged to offer ideas related to those already on the list.
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Asking each participant to record and then offer five to ten ideas can help start the session.
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Setting a time limit for brainstorming, for example, five to ten minutes, can often stimulate the rapid generation of ideas.
Moderating the Discussion
Consider using a moderator team: a moderator and a recorder. The moderator is primarily concerned with directing the discussion, keeping the conversation flowing, and taking a few notes. The recorder, on the other hand, takes comprehensive notes, operates the tape recorder, handles the environmental conditions and logistics (refreshments, lightening, seating, etc.), and responds to unexpected interruptions.
Recording the Discussion
A recorder should be appointed and all ideas obtained in the brainstorming focus group should be recorded by either tape recorder or written notes. Written notes are essential. Often ideas are initially listed on flip charts and later converted to written notes. The note taking should not interfere with the spontaneous nature of the session. Notes should be as complete as possible.
John W. Olmstead, MBA, Ph.D, CMC
May 11, 2003
Are More Law Firms Engaging in Strategic Planning
Question:
Are more law firms engaging in strategic planning? Have the results been successful?
Response:
According to a recent survey conducted by the Legal Marketing Association (LMA), 59% of the responding law firms (ranging in size from the largest to 45 attorney firms) have formal written strategic plans. Smaller firms have a much lower experience. In our experiences with smaller law firms we are finding that fewer than 15% have formal written strategic plans. I consider success to be achievement of measurable results as evidenced by achievement of the goals and objectives outlined in the plan and actual implementation of action items. Lawyers and law firms seem to do better at planning than they do at implementation. Larger firms usually are more successful in implementation due to availability of management resources, leadership and functional governance. Smaller firms tend to have problems with implementation. In fact, we frequently recommend that a firm address other management issues prior to engaging in strategic planning. If a firm is having problems implementing day-to-day operational decisions the firm will not be effective in implementing strategic planning initiatives.
John W. Olmstead, MBA, Ph.D, CMC
May 10, 2003
Changes That Will Have the Greatest Impact Upon the Legal Profession
Question:
What changes do you believe will have the greatest impact upon the legal profession?
Response:
The continued impact of the Internet and globalization of business. The Internet is making the world smaller, introducing new markets and competitors, and having a direct impact on what legal services are offered and how they are delivered. Legal services are, and will continue to be provided electronically over the internet. This will cause increased commoditization of some forms of legal services. This technological revolution fueled by the Internet has placed us in the midst of the biggest transformation of civilization since the caveman began bartering. Business is going to change more in the next ten years than in the last fifty. We have become a self-help nation and more self-help legal services are on the horizon. Within ten years the legal profession will be dramatically changed and reinvented. According to Tom Peters, a leading management consultant, only one in ten lawyers (in roles as we now know them) will left standing in ten years. During this period of transformational change it will be imperative that lawyers discard the status quo, embrace change, and define and take charge of their future. Failure to do so will result in the same fate as the medial profession.
John W. Olmstead, MBA, Ph.D, CMC
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