Law Practice Management Asked and Answered Blog
« Earlier | Later »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
Dec 01, 2006
Lawyer Coaching
Recently the following question was submitted to our office:
When should a firm consider coaching for attorneys?
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:
§ Stuck and unable to move forward on new initiatives
§ Indecision paralysis.
§ Lack of commitment, inertia, self-accountability or follow-up
§ Poor implementation skills
§ Lack of management, leadership, interpersonal, or other needed skills.
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 are using coaching in the following areas:
- Business planning.
- Marketing. Improving performance.
- Organizational skills.
- Firm leadership.
- Achieving balance between work and personal life.
- Clarifying values and goals.
John W. Olmstead, MBA, Ph.D, CMC
Nov 28, 2006
Firm Culture
The following questions was recently submitted for comment:
Question: I often hear the term firm culture used. What does this term mean and what impact does it have upon management of a law firm?
Response:
Firm culture is the part of the firm’s internal environment that incorporates a set of assumptions, beliefs, and values that organizational members share and use to guide their functioning. Is a pattern of shared values and beliefs giving members of a firm meaning and providing them with rules for behavior. These values are inherent in the ways organizations and their members view themselves, define opportunities, and plan strategies.
Much as personality shapes an individual, organizational culture shapes its members responses and defines what an organization can or is willing to do. Click here for link to full article
Nov 27, 2006
Plans and Goals For 2007
As we approach the Christmas holiday season we need to begin thinking about next year. Here are some suggestions:
- 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. Lack of responsivenesshas is 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.
- Come to grips with the fact that times are changing and law firms are going to have to change and reinvent their firms dramatically in the next few years.
John W. Olmstead, MBA, Ph.D, CMC
Nov 24, 2006
Marketing Idea For 2007
Our firm recently completed client satisfaction interviews for several of our insurance defense law firm clients. Here are a few quotes and a summary of what these insurance company law firm clients told us:
- We want to work with proactive attorneys that aren’t afraid to try cases.
- Limit the number of people working on a file. I like consistent assignments.
- I expect attorneys to get back to me by the next business day.
- I like one partner and one associate per file.
- Most of our billing issues with law firms is due to excessive use of associates time.
- I get upset with attorneys that want to settle right before trial.
- The primary reason that we terminate our relationship with our outside attorneys is not reporting to us in a timely fashion and poor communications.
- I find that many lawyers are poor at managing their files and have poor basic communication skills. I work with lawyers that can do both of these things well.
- I think that it is important that law firms provide value added services such as newsletters, legislative updates, e-alerts, seminars, etc on a “no charge” basis. These services are provided by most law firms these days. Such services help us do our jobs better, improves communications and the overall relationship between our organization and the law firm, keeps us up to date on changes in the law, and helps the law firm stay abreast of emerging needs in our business.
- I will pay higher fees to lawyers that aren’t afraid to try cases.
Much can be learned by talking to your clients. Structured telephone interviews conducted by a neutral third party can provide many surprises as well as answers. Client satisfaction interviews can be the best marketing investment that you can make.
Nov 21, 2006
I had a call today from a lawyer expressing the following frustration:
I have been practicing law for ten years and I feel that I am in a rut. I am working for a firm and the relationship is no longer working out for me. I don’t have enough time for my family. My kids are growing up fast and I don’t have enough time to enjoy them. I need to make a change. Where do I start?
I provided him with the following suggestions:
A balanced personal and professional life is becoming more important to everyone. Time is a precious commodity. You should:
Begin by conducting an inventory of your personal and professional life. Start with your personal life. Identify your personal and family goals. Then move on to your professional and career goals. Develop both a career plan and a business plan for your practice. Some of the decisions that you will have to consider are:
Once you have defined your personal and professional goals you can formulate your action plans as to how you will get there and incorporate them into to career/business plan.
John W. Olmstead, Ph.D, CMC
Nov 21, 2006
Tips On Getting Paid
I have seen more law firms and other business firms destroyed by poor cash flow than any other calamity. Cash flow is what keeps owners, partners and administrators awake at night. Many of our law firm clients have asked us for tips on getting paid. Here are some thoughts and suggestions.
Mar 12, 2006
Lawyer Career Change
Question:
I have been practicing law for ten years and I feel that I am in a rut. I am working for a firm and the relationship is no longer working out for me. I don’t have enough time for my family. My kids are growing up fast and I don’t have enough time to enjoy them. I need to make a change. Where do I start?
Response:
A balanced personal and professional life is becoming more important to everyone. Time is a precious commodity. You should:
Develop a personal life plan and career/practice business plan.
Begin by conducting an inventory of your personal and professional life. Start with your personal life. Identify your personal and family goals. Then move on to your professional and career goals. Develop both a career plan and a business plan for your practice. Some of the decisions that you will have to consider are:
Once you have defined your personal and professional goals you can formulate your action plans as to how you will get there and incorporate them into to career/business plan.
John W. Olmstead, 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
Nov 10, 2003
Most Important Marketing Activity in Law Firms
What is the most important marketing activity neglected by law firms?
Response:
Maintaining an ongoing relationship with existing clients. It is much easier and cheaper to obtain additional business from existing clients than to recruit new clients. Yet, many law firms take their clients for granted. Whether your clients are individuals with single matters or institutional (business) clients, it is critical to demonstrate to maintain ongoing contact and effectively manage the relationship. Consider:
- Site visits to your clients place of business
- Newsletters
- Client E-Alerts
- Educational forums and events
- In person case updates
- Social get togethers
John W. Olmstead, MBA, Ph.D, CMC
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