Law Practice Management Asked and Answered Blog

Category: Business

Feb 06, 2020


Law Firm Marketing and Business Development Coordinator or Director

Question:

I am the sole owner of an estate planning firm in San Francisco Bay area. I have four full-time associates, six paralegals, two secretaries, a firm administrator, and four other staff members. We are a high volume operation and we do a lot of marketing. We need help coordinating and handling and coordinating the marketing. Are we ready for marketing coordinator or director?

Response: 

Personally I think the firm is a little small for a full-time marketing position. If you can find a person that is willing to work part-time that could work in a firm your size. Many firms your size and larger that have a firm administrator include marketing responsibilities on the firm administrator’s job description and have marketing and business development coordination handled by the firm administrator. Here is an example of the marketing and business development duties that your administrator could handle.

Advertising

Coordinate the firm’s advertising program established by the owner.

Business Development

Coordinate and implement the business development program established  the owner

  1. Sponsorship’s and Community Programs – oversee, plan, and coordinate the firm’s:
    (1) Client seminars
    (2) Webinars
    (3) Ad hoc events
  2. Database Management and Distribution of E-News Letters

Oversight responsibility by performing or delegating the following:

1  Updating Firm E newsletter database

2 Monthly review of E newsletter Database blocked list report,
contacting contacts for updated email addresses, and updating
e-newsletter and all related databases.

3   Update Other Firm E-newsletter Databases

4   Update case management and time billing databases

5   Distribute Electronic E newsletters.

Client Testimonials

Prompting the owner monthly to solicit one client testimonial from a client and posting or coordinating with the firm’s website provider for them to post the testimonial to the website.

  1. Business Development Committee Meetings – Friday Attorney Meetings

2  Schedule, coordinate, and maintain a file on the firm’s file
server of action items and notes from each meeting.

3  Coordinate and assist in the implementation of action items.

Public Relations

Coordinate the firm’s public relations program.

Electronic Media

1. Website

Oversight responsibility for maintaining the firm’s web site and keep
the website’s content fresh and updated in coordination with website provider.

2. Social Media

Update entries on social media.

Directories

  1. Coordinate external directory listings
  2. Update the firm resume and material for printed and electronic directories.

Client Communication/Satisfaction Program

  1. Oversight and coordination of the end of matter survey/online review
    program and maintain database of responses
  2. Prepare monthly client survey report from survey database.

Firm Announcements

Supervise preparation and distribution of firm announcements

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

Nov 28, 2017


Business Development for New Associate Attorneys

Question: 

I am a partner in a fourteen attorney firm in Denver, Colorado. We have six equity partners and eight associate attorneys in the firm. Our practice is limited to health care law. We represent many of the local hospitals in the area. Our associates range from associates that have been with the firm less than a year to associates that have been with the firm for over fifteen years. None of our associates have developed business development skills and none of them have ever brought in a single client. Most of our associates would not even be able to retain our existing clients if the partners for one reason or another left the firm. This is in part our fault. When we hired them we told them that we had plenty of client work and their mission was to “bill hours” and service our clients. However, as we the partners age and consider the future of the firm we are beginning to realize that this was a mistake. How can we turn this around?

Response:

The earlier that attorneys start to build client development into their weekly routines, the easier it will be for them to bring in business later. Many successful rainmaking attorneys began their business development efforts early in their careers, usually during their first year or two as attorneys. This is a pattern that you want your attorneys to emulate. The firm should set expectations about the kind of effort the firm is looking for at each level in an attorney’s career. It should then support these expectations with appropriate training for each level. Training should begin as soon as an attorney is hired. During the initial firm new associate training session, provide an hour’s instruction on client development. That will help new associate hires realize that they will have to bring in business later in their careers and they can start building a foundation  for later business development efforts immediately. The quantity of education on client development should increase as an attorney advances within the firm. This should be reinforced by mentors assigned to associate attorneys.

When your associates reach the point in their careers when they should be bringing in business, the focus on business development needs to increase. Business goals should be developed and attorneys at this level should be required to prepare annual personal business development plans. These goals and plans should be linked performance reviews and to compensation.

It will take time to create this culture in your firm.  It may be too late for some. I would announce that it is a new day, launch a program, and stay on top of it.

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

 

Sep 27, 2017


Associate Attorney Business Development – Becoming a Rainmaker

Question: 

I am an associate attorney in a ten attorney firm in Atlanta. The firm represents mid-size to small businesses – transactional as well as litigation. There are six partners and four associates in the firm. I graduated from law school two years ago and have been with the firm for two years. All of my work is given to me by the partners and since joining the firm I have not brought in any clients. When I joined the firm I was told not to worry about bringing in clients – the firm has plenty of work. I am paid a salary and a bonus if my billable hours are at a certain level. There appears to be no desire by the partners for me to spend time developing clients. I have talked with my peers in other law firms that tell me that this is short sided and that developing clients is a major factor in their firms for associates to be considered for partnership. I would appreciate your thoughts on what I should be doing and what direction I should take.

Response: 

I agree with your peers. Whether you are encouraged by your partners or not developing “rainmaking” skill is an important skill that you should develop and will be a major career success factor if you remain in the private practice of law. While your partners hired you to primary be a “worker bee” and work on their matters, down the road it will become more important for you to develop business. It takes time to develop “rainmaking” skills and a network of contacts and the sooner you start the better.

In spite of many of the marketing initiatives undertaken by law firms, a majority of the business that comes to many law firms is through personal and professional referrals – from people a lawyer knows. The more people you know the more opportunities you will get. The value of your network is worth more than the sum of its parts, and that value grows geometrically over time and with the size of your network.

Lawyers who consistently find a modest amount of time for client development and invests it wisely will have a much easier time later in their careers when they must bring in business to get promoted than those who wait.

One of the problems that many law firms are facing today is not enough business and not enough rainmakers. Don’t wait for your partners to encourage you or to be compensated or otherwise rewarded. Invest your time in developing your network of contacts even if it requires dedicating some personal time and consider it an investment in your career and future.

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

Aug 16, 2017


Book Writing as a Business Development Strategy for Attorneys

Question: 

I am a partner in a eighteen attorney law firm in Jacksonville, Florida. Our business development committee is requiring all attorneys to submit annual personal business development plans and become more involved in business development. I have been thinking about writing a book. Is such a goal worth my time investment? I welcome your thoughts.

Response: 

While writing a book is not terribly difficult, it takes time and commitment and it will consume some non-billable hours. However, as David Maister often states,”attorneys should consider their billable time as their current income and their non-billable time as their future.”  In other words non-billable time is an investment in your future – the long-term. I believe that authoring a book is an excellent way of building your professional reputation and brand and it will pay dividends in the long-term. Authoring a book can create opportunities that could change your whole life.

When I wrote my book I had 142 non-billable hours invested in the book and I had some content available from past articles that I had written over the years. Often a good starting point is to start writing articles around a particular topic/theme and later tie them together in a book. This is a good way of taking “baby steps.”

During the writing process, authoring a book may seem like anything but freedom. However, it is a trade-off. Work for the book now and it will work for you later.

Your published book can generate income for years while you are doing something else. In addition to financial rewards, other payoffs for writing a successful book include:

While your law firm may be doing all the right things to build the “firm brand” I believe that each attorney must build their personal brands as well. Clients advise us that they hire lawyers – not law firms. This is not totally true as in many cases the law firm’s brand may get the firm on a prospective client’s short list – but after that it is more about the lawyers handling a client’s matters. This is why prospective clients ask for the bios of all the attorneys in the firm.

Writing a book can assist you in achieving your business development goals but it is a long-term investment and not a quick fix.

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

Oct 04, 2016


Law Firm Client Business Development – Motivating Lawyers to Develop New Client Business

Question:

I am the managing partner of an eighteen attorney firm in New Orleans. We have six equity founding partners, four non-equity partners, and eight associates. We represent institutional clients. Four of the six equity partners are in their sixties and two are in their late fifties. The six equity partners are concerned about the future of the firm as they approach retirement. If they retired today the firm would cease to exist – the non-equity partners would not be able to retain our existing clients and acquire new clients. We have not been successful at motivating our non-equity partners to develop and bring in new clients. We have harped on this for years and encouraged all attorneys to develop business. We implemented a component of our non-equity partner and associate compensation system to compensate them for new client origination. Unfortunately, we have not been able to motivate our non-equity partners and associates to develop new sources of business. Our non-equity partners and associates have a nine to five work ethic and an entitlement mentality. Would you share your thoughts?

Response:

Often law firms hire associates simply to bill hours and perform legal work. Then years later they are asked to develop clients. Many are unprepared and at a loss as where and how to start. I believe that if you want attorneys to develop clients you have to hire attorneys that have the personality, ability, and you have to get them started on business development in their early years.

To turn your non-equity partners and associates into rainmakers at this stage will be difficult but not impossible. Here are a few ideas:

  1. Insure that your compensation system reinforces and rewards business development  results. However, don't be surprised that even if your system rewards business development behavior does not change.
  2. Extrinsic motivators such as compensation often are not as impactful with professionals as intrinsic motivation that involves engaging in a behavior because it is personally and professionally rewarding – performing an activity for its own sake rather than the desire for external reward. Many law firms are requiring attorneys to submit annual personal business goal driven plans that are incorporated into annual performance reviews. I have found that these plans as or more powerful than compensation in developing new behaviors such as client development when an attorney is uncomfortable with such behaviors.
  3. Integrate the compensation system with personal goal plan achievement.
  4. Implement an equity partner admission program (partner track) that outlines requirements for admission. Make business development goal attainment a component. Make it clear that to become an equity partner you must be a rainmaker.
  5. Provide business development training and coaching for attorneys willing to participate.
  6. Have serious discussions with non-equity partners and terminate those that are not meeting production and client development goals.
  7. Consider hiring lateral attorneys with books of business or merging with another firm.

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

 

 

 

 

Nov 24, 2015


Law Firm Business Development/Marketing Manager Position

Question:

I am the managing partner of a twenty seven lawyer insurance defense firm in Orlando, Florida. In the last seven years we have grown from ten lawyers to twenty seven. Our firm is very dependent upon a handful of insurance companies and we are looking at ways to diversify our practice. Our rapid growth has caused us to outgrow our management structure. A few years ago we hired our first firm administrator to manage the business operations of the firm. We are now considering establishing a business development/marketing position to help focus our business development efforts. I would appreciate your thoughts.

Response:

I would start by giving some thought to your organizational structure overall. How and where does this position line up with the other management positions in the firm? Will the position report to the firm administrator or will the position be equal in stature to the firm administrator and report to the managing partner or executive committee? What will be the title of the position – marketing director, director of business development, business development manager, etc.? Will the position have assistants/direct reports? What are the position's performance expectations and duties?

Often law firms do not have a successful experience with their first business development/marketing manager. Typically this is a result of not taking the time to define the position, performance expectations, required skills and competencies, and hiring a candidate with the maturity and leadership required to be successful in the role.

Here are a few suggestions:

  1. For the initial position – use a title similar to Business Development or Marketing Manager (Director of Business Development at such time in the future as the administrator's role grows warranting the title of Executive Director or Director of Administration).
  2. Have a position equal in stature to the Firm Administrator with both reporting to the managing partner or executive committee.
  3. Develop a sound position description

SAMPLE JOB DESCRIPTION

The business development manager is responsible for the management of all aspects of business development within the firm and supports business development initiatives within the firm. This management will occur either through direct activities, direct reports or delegation to subordinate staff. Responsibilities include but are not limited to:

  1. Develop, recommend, and manage the firm marketing plan.
  2. Supervise marketing support personnel.
  3. Support the firm, practice groups, and individual attorney's business development initiatives and programs.
  4. Recommend markets and projects to pursue.
  5. Track and follow-up firm marketing and business development leads.
  6. Manage firm business relationships.
  7. Direct internal and external firm marketing and business communications.
  8. Represent the firm at trade shows and other events.
  9. Manage marketing and business development events and activities.
  10. Write the firm newsletter.
  11. Update and maintain the firm website.
  12. Develop and maintain the firm brochure.
  13. Participate in the strategic planning process.
  14. Hire, train, and coach marketing staff, practice group chairs, and individual attorneys

Doing your homework upfront will pay dividends and insure that the position is successful.     

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

Sep 08, 2015


Law Firm Profitability – Increasing Fees & Risk of Losing Business

Question:

I am the managing partner of a 14 attorney estate planning firm in Lexington, Kentucky. We took a hard hit in 2008 when the recession hit and have just been recovering over the last couple of years. Business is up but profits are still flat. We have not raised our hourly billing rates for several years for fear that we will not be competitive and will lose out on business. However, we believe that we must increase our billing rates and are concerned. What are your thoughts?

Response: 

I would bet that you are leaving money on the table and you should in fact increase your billing rates. Often I find that law firms are more concerned about their rates than their clients are. You must remain competitive for the value package (including your experience, expertise, and reputation) that you are delivering. This does not mean being the cheapest estate planning firm in town. Some of my most successful estate planning firms are those charging the highest fees. 

Here are a few thoughts:

  1. Do some research on the going rates in your market area for estate planning law firms of you caliber.
  2. See if there is data available from your professional organizations such as The Academy of Estate Planning Attorneys, The Academy of Elder Law Attorneys, etc. 
  3. Determine if your competitors are using other than time billing fee arrangements.
  4. Explore alternative billing arrangements for estate planning matters. Many of my client law firms are using flat fee arrangements for estate planning.
  5.  Since your clients are individuals and typically single matter clients (at least initially) experiment (pilot test) with new prospective clients with increased rates and determine whether there is "pushback" and to what extent your prospect/client conversion ratio is being impacted.
  6. Offer prospective new clients more than one option.
  7. Initially leave your old rates in place for existing clients with open matters.
  8. Measure and evaluate impact.

You may find that clients are not as concerned about your fees as you are. 

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

Sep 24, 2014


Law Firm Business Development – Individual Attorney Personal Branding

Question:

I am the owner and founder of a 7 attorney personal injury plaintiff firm in the southwest. Over the years we have become the "go to" PI firm in the area. We have an extensive advertising program including TV, radio, and other mediums. I bring in all the business and the other six associate attorneys are primarily worker bees. I have discouraged business development by the associates and now as I approach my retirement years I am realizing that this may have been a mistake and it make take more than a "firm brand" for the firm to transition to the next generation. I would appreciate your thoughts.

Response:

While I believe that a solid firm brand is important and can provide practice value when you transition and retire from the practice of law the failure of your attorneys to develop their own brands or identities will make the transition more difficult and could even result in your firm becoming a "one generation law firm". Clients of law firms tell us they hire lawyers – not law firms. Even through you advertise – your reputation and rainmaking skills have had a lot to do with your success. Your associates must develop their reputations and hone their rainmaking skills as well and you need to help them do this. Here are a few ideas:

  1. If you do not have a marketing plan for the firm – develop one. This will help focus the firm's initiatives and serve as the glue for individual attorney personal plans.
  2. Announce that business development is important and that business development goals and plans will be developed for associates and incorporated into performance reviews and compensation determinations.
  3. Initiate business development training sessions for associates.
  4. Require each associate to prepare a personal marketing plan (business development plan) each year. These plans should be goal driven with specific SMART goals (specific, measurable, attainable, realistic, and on a date specific timeline), approved by you, results monitored quarterly, and incorporated into annual performance reviews and compensation determinations.
  5. Get your associates networking, writing blogs and articles, speaking, and press coverage when possible on case results.

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

 

 

May 20, 2014


Law Firm Compensation – Bringing in an Associate with a Small Book of Business

Question:

I am the sole owner of a law firm in Walnut Creek, California. I have three associates and five staff members in the firm. I am looking to hire another associate. The associate I am considering has been out on his own for five years – no office and no employees. He would bring around 30 active matters with him. I was thinking of paying him a salary with a discretionary bonus based upon performance. Fees originated and generated would be a major component of the performance determination that would impact future salary increases, bonuses, and eligibility for partnership. However, I believe that I must do something with regard to the business that he brings with him. I would appreciate your thoughts and suggestions:

Response:

I agree with your general approach with regard to his compensation. Payments for originations for associates gives me pause.  However, I believe you have to treat business that he brings with him differently. Here are my thoughts:

  1. Create a list of the pending matters that he will bring with him. The list should list the A/R and WIP for time bill matters. For flat fee matters whether the fee has been collected and spent, whether there will be any more fee, the amount of work that remains to be completed (percent), and the estimated hours required to complete the work. For contingency fee work – a list of the expected fee - low and high – for matters in progress.
  2. He should get 100% of A/R and unbilled WIP earned but not billed or paid before he joins the firm. 20% of the work done after he is with your firm.
  3. I would pay him 20% of the fees earned (prorated) for flat fee matters while the matter is with your firm if a fee will be due and paid. If not – your firm should be entitled to an offset for the overhead servicing his work for which there will be no fee forth coming.
  4. Once the matters on the list are concluded any future work that he originates would be "firm accounts".

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

Apr 08, 2014


Law Firm New Business Development – Finding New Startup Companies Before They Startup

Question:

I am the managing partner of a 17 attorney law firm located in Rockford, Illinois. While we have an active business law practice representing small companies we are planning on beginning to work more with entrepreneurial and startup companies. How can we go about finding and identifying these companies earlier in their development – possibly even before they have actually launched their businesses?

Response:

Many of the larger law firms are developing entrepreneurship and startup practice areas as a means of beefing up their business practices with new sources of business. So, I believe that your plan to reach out to entrepreneurs is a worthwhile strategy if you can learn to think like an innovator rather than being trapped by precedents of the past and become part of their network. Here are a few ideas:

  1. Learn to think like an innovator, embrace opportunity, and react quickly. Precedent can be the enemy of innovation.
  2. Go where entrepreneurs go – don't just hang out with lawyers.
  3. Join business/entrepreneurial trade associations.
  4. Speak and present at entrepreneuria trade conferences.
  5. Attend entrepreneuria trade conferences and go to the educational sessions.
  6. Write and publish in entrepreneuria trade association publications.
  7. Get a booth and exhibit at small business trade shows. For example – in St. Louis we have the Small Business Expo – http://www.stlouisbusinessexpo.com/
  8. Become involved with (possibly sponsor) startup incubators in your local community or universities.
  9. Scan public documents (i.e. Secretary State, etc.) concerning new business startup filings.
  10. Become active in your local chamber of commerce.

You will increase your odds if you can develop relationships with entrepreneurs before they have launched their businesses – this may be when they need a trusted advisor the most.

Good luck!

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

 

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