Tag: Business

Lawyers: Ask for the Order!

Mike O’Horo of RainmakerVT posted a great article, “Lead-generation is not the same as business-generation”.  See here. The article notes how the whole process of marketing as most law firms do it is essentially worthless if you “don’t ask for the order” and make the sale.  Most lawyers have great difficulty with this step, and miss out on a lot of very profitable business.

In most law firms, the number of real rainmakers is less than 10-20% of the total # of partners.  Yet all equity partners are expected to bring in business of a minimum $ amount to support the growth and profitability of the firm.  Rainmakers must be compensated to a level that keeps them happy, as they are a rarity in the practice of law.  You must motivate and retain these rainmaker partners with appropriate compensation packages to ensure the future success and profitability of the firm.  The rest of the partners must be satisfied with earning less if they can’t or won’t bring in the business.

You must reward your rainmakers with bonuses or higher units of compensation to keep them motivated and bringing in new business. You’re not just rewarding partners for hours billed, you’re rewarding partners for originating work, which needs to carry a bigger weighting at compensation time.  This is where many small and midsize law firms’ compensation systems fall short in my experience.  This is rewarding lawyers for increasing sales, and really no differs from paying bonuses to the best-performing car salesperson on the lot. The sooner law firms get this, the better off they’ll be.  Since all partners will share in an increasing pie, individual partners can’t be worried a rainmaker is making more than them, when everyone benefits from what a rainmaker does.

Law firms must operate in a business-like fashion.  For decades, law firms have operated with a partnership business model protected from the ravages of competition that other professions and businesses have had to endure.  Changes must now be made quickly to become more business-like in your operations and reward partners for “asking for the order” before your competitors beat you to it and steal your rainmakers away from you.

Planning for Success – Strategies & Action Plans

Originally posted on Small Firm Innovation

In the second planning installment, we discussed key issues and goals. That leads us to today’s discussion of strategies and action plans.

Strategies are the “how do we get there?” phase. For many solos and small firms, this can be the hardest phase to complete, since partners often have many ideas on how to achieve the goals.  It’s hard to sort through the “chaff” and prioritize the best strategies for each goal.

However, you must prioritize and decide on the best course of action at some point in order to create a successful plan.  The best plans are usually the simplest as well. You’ll probably have to go through a couple of iterations of the plan before you get it right and have everyone’s “buy in”.

Start with the 4 or 5 firm goals you’ve decided on and discuss strategies to achieve each goal, one by one. I find it best to list the ideas on a flipchart while letting the partners talk out all of the strategies necessary to achieve each goal.  Nothing should be filtered out at this point.  If you don’t allow every idea through without self-censoring, you will miss the best ideas.

Lawyers are naturally critical, and want to kill ideas before they hit the page.  You may also have political motives involved, with some partners trying to suppress ideas that don’t benefit them personally. That’s why it’s necessary to have a good facilitator to allow all of the ideas to get through to the page for reflection by the group.  The group will then decide what stays, as you move through the prioritization process.

Prioritize 3 or 4 strategies necessary to achieve each goal. With the strategies decided on, start assigning responsibilities and setting deadlines for each strategy.  Once you have responsibilities and deadlines assigned, your strategies will become action plans.

Write down all of the action plans and spread them out over the 3 to 5 year term of the strategic plan. This will become the “guts” of the strategic plan.  Usually the action plans will run over a number of pages to start.  I recommend you then run different “sorts” of the action plans, noting the firm goals being addressed. Run a sort by chronological date, and finally do a sort by responsibility.  In this way, everyone knows what their “job” is and their task is clear to everyone else, which ensures accountability.

You need someone to take overall responsibility for execution of the strategic plan. This would normally be the Managing Partner.  The Managing Partner must be able to influence partner behavior through compensation in order to execute the plan successfully.  This is where most firms fail in the planning process, as they aren’t able to force execution. This results in no follow-through and the plan sits on the shelf undone as a result.

Finally, turn the strategic plan into a one page document that keeps the firm goals in everyone’s mind at all times.

This is the final installment of the strategic planning series for solos and small firms.  I hope you have found the ideas helpful, and welcome you to contact me if you have any further questions about strategic planning for your firm.

Planning for Success – Key Issues & Goals

Originally posted on Small Firm Innovation

In the first planning installment, we talked about creating a vision and core values statement. The next step is to identify the firm goals and key issues facing the firm.

One suggestion for getting buy-in from the partners is to have them write down the top 3 goals for their practice and for the firm, as well as the things that are stopping them from achieving their personal and firm goals (the key issues).  Submit these for compilation and discussion at a planning retreat.  This will also start the process of aligning personal and firm goals.

At the planning retreat, list all the goals and issues on flipchart paper and post them for all partners to review as the day proceeds.  Then start discussing the issues one by one until you have exhausted all issues.

I’ve found the process is usually more successful if you start by discussing the issues first and the goals after.  Lawyers are naturally focused on what’s wrong with the firm rather than the positives, so I find this approach simplifies and speeds up the discussion considerably as a result.

Once all of the issues have been discussed, then you can start prioritizing the issues.  Aim to have the top 5 issues decided on by the day’s end.  This part of the process can proceed quite quickly if you’ve already had a thorough discussion of the issues beforehand.

Once you have a prioritized list of the top 5 issues facing the firm, you can now start to turn those issues into quantifiable goals.  For example, if one of the issues is “lack of profitability”, then the goal can be converted to “increase profits by x% over x years”.  This is a quantifiable goal with a deadline, which is essential for follow-through and measuring the success of the firm plan later on.

Review the list of goals submitted prior to the retreat, and add or modify to this list based on the discussion of the key issues.  Decide on the top 5 goals as a group.

Once you have decided on the top 5 goals, then you need to determine if completing these goals will be enough to achieve your vision.  If not, you will have to repeat the process until you come up with an adequate set of goals which will achieve your firm vision.

In the first installment we talked about determining where you’re at today and your vision of where you want to be in 5 years.  The difference between these two points is known as the “planning gap.”  The strategic plan will include all of the steps required to get you from where you’re at today to achieving your vision.  The strategic plan will normally cover a 3 to 5 year time frame.

This completes the goal-setting phase.  Now we can start thinking about the strategies and action plans needed to complete the firm plan.  We’ll discuss this phase in the next planning installment.