Jan 18, 2011
Law Firm Profit Improvement
Question:
Our firm is in its second generation. While we are proud that we have been in business for over 60 years we also believe we need to re-examine our practice and embrace changes that may be needed for the firm to move forward and remain competitive. We are a 16 attorney firm located in Wisconsin. We have 12 partners and four associates.
Response:
More and more law firms are re-examining their business models and approaches and running the practice as a business. You may want to begin by conducting a management review or audit to determine where the firm is presently and where the firm needs to head in the future.
Start by Asking the Following Questions:
- Are firm members frustrated with the amount of money they are making and taking home?
- Are firm members unsure whether the firm is competitive with other law firms?
- Is the firm taking advantage of some of the management “Best Practices” being used by successful law firms and possibly your competitors?
- Are firm members concerned about getting a handle on and controlling the financial aspects of the firm?
- Are firm members uncertain about the future and long-term direction of your firm?
- Are firm members frustrated with the lack of accountability of other attorneys and staff?
- Is everyone effectively managing their time?
- Are members concerned about the firm getting and keeping clients?
- Are members concerned about work-life balance?
- Are members concerned about the succession and exit of key partners?
I suggest that you conduct a practice management review that will provide you with a clear assessment of the firm’s practices and performance and outline a plan for implementing “Best Practices”. The assessment should focus on:
- Firm Image -Client and Peer Perceptions
- Long Range Plans and Business Strategy
- Marketing, Business Development & Client Relations
- Firm Government & Structure
- Compensation
- Staffing
- Business Process and Operations
- Financial Performance and Management
- Human Resources
- Administration
- Deployment of Technology
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John W. Olmstead, MBA, Ph.D, CMC
Posted at 02:03 PM in Competitive Business Models, Financial Management, Strategy
Tags: Law Firm Profit Improvement, Law firm strategy
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