The best strategies encompass all three. “And then also, it’s important to get back to people in the organization with feedback about how things are going.”, Olmstead agrees. And being prepared is important if you don’t want into trouble. “It’s hard to do a long-range strategic plan by yourself,” he says. Stay at the forefront of marketing. SEO Best Practices. A deep understanding of client needs. We can help you figure out which methods would be the best for your business. Effective Law Firm Growth Strategies - Richard Brock. For example, your goal might be … In the midst of the COVID-19 pandemic, the need for change is at the forefront of our agendas as law firms, lawyers, legal marketers … Growth may mean more clients or fewer clients with bigger projects. That’s a problem from a cash flow point of view. He is a frequent writer and speaker, and authored the 2002 book “Law Firm Strategy”. It’s so fierce that in a newly published survey of 400 law firm marketing and business development (BD) professionals, 52% said competition is the #1 barrier to law firm growth. He measures his marketing success in terms of numbers of articles published, newsletters contributed to, seminars delivered, and new contacts and referral sources. There are a variety of different practice areas which can include administrative law, bankruptcy’s litigation, commercial, family law, personal injury, tax law, and wills and estates. “Sometimes what changes is the fundamentals and what’s going on, and what firms need to develop strategies to deal with. It also helps you to make more money. The information provided on this site is not legal advice. Sign up for emails to get updates on Canadian Law and tips for resolving your legal issues. Change is among us in the legal industry. Another 20 percent fell into the shrinking category. Law firm strategy is a future-proof plan that enables firms to prioritize objectives, remain competitive, and optimize financial goals. “There may be all kinds of reasons why your performance deviates from the plan, but we measure that on an ongoing basis.”, Related “Strategic Planning for Small Law Firms”, What sort of metrics? Do quality legal work and make sure you collect money. “The challenges and issues are different.”. He cautions smaller firms not to take on more than one or two significant strategic initiatives at one time. Every website should start with a goal in mind. The average waiting time is almost two and a half months. What was once standard operating procedure for Baby Boomers or even Gen-Xers can now seem completely obsolete or anachronistic to Millennials. Are your clients out there waiting a long time to pay your firm? Law firms on average are trying to work around an eight-hour day. Jenner has its practice broadly divided between litigation and business transactions groups, with several disciplines in each, and at the beginning of each year, each group develops its own strategic plan. “They have a choice to make—do we find other ways to get those dollars that we’ve lost to law.com, or do we join that site?” he says. Oakville Family Lawyer | Hamilton Family Lawyer | Scarborough Family Lawyer | Kingston Family Lawyer | Burlington Family Lawyer | Edmonton Family Lawyer | Mississauga Family Lawyer | London Family Lawyer | Ottawa Family Lawyer. “To take on more is simply not tenable because there are not enough horses,” he says. Growth can be intimidating and mean a lot of different things to legal professionals who’ve just hung out their shingle. “The process doesn’t change. It might have to happen in a retreat setting. We love to help by providing free helpful content! Depending on the area of law that you practice, you will be busy at different times of the year. “I go off-site and hibernate. Solo and small law firms are more likely to be selected for trust account audits. If you want to learn more about law, visit our Youtube channel. It describes the industries you will serve, the types of clients you will target, the services you will offer and how you will position and develop your brand. Your law firm is dedicated to building long-term client relationships. Download your FREE strategy guide below. You talk about client relationships at partner meetings and in business development training, but applying the concepts to client interaction can be challenging. All images, videos and graphics used on this website are dramatizations. Those are then “vetted and cross-examined, and people are being encouraged and challenged in a positive way,” Truax says. Throughout this time, we have advised those firms on different growth strategies. His career is highlighted by consistently providing the counsel and leadership critical to successful law firm transitions. “You have your nose to the stone, you’re working flat out as hard as you can, and it’s difficult to step back and ask those important questions: What is my priority? “It’s not something you do in one sitting, and you need somebody looking over your shoulder, whether that somebody might be your spouse or your staff person.”, Olmstead worked with a solo practitioner in Iowa who did not realize he was only paying his associate of 10 years a $60,000 salary – or that he himself had only cleared $20,000 the previous year. “In some of the smaller firms, especially, I’ve run across somewhere I’ve advised them, ‘You guys have so many tactical issues going on in the swamp; you’re trying to survive day to day. For 30 years he has closely advised law firm management and legal industry service providers. Address generational differences. And so, when are they going to spend their time on business development? — Start with a Goal. Strategies for Growing a Law Firm: Managing Partners on Developing a Growth Strategy, Recruiting New Attorneys, and Responding to Economic Challenges (Inside the Minds): Shaw, Brian L., Axinn, Stephen, Goldfein, Fredric L.: 9780314904171: Books - Amazon.ca Automation is one of the key components of law firm growth. Technology, culture, attitudes, habits—all of these evolve from generation to generation. This means they need to stop operating in the same way and try something else. [The plans] go into books, they go on shelves, and very little happens as a result,” he says. Here’s how to increase the odds that strategic planning will lead to real progress. Focus On Gathering Data It’s easy for firms to lose sight of the big picture as they’re working through day-to-day matters, says Terrence Truax, managing partner at Jenner & Block in Chicago. Managing Partner’s new report on Growth Strategies for Law Firms provides clear advice on the growth options available and expert guidance on the key factors you need to consider in order to tailor an effective strategy for your firm. “People don’t engage with the same discipline because they’re doing work,” he says. “Firms can get blindsided by getting too down into the weeds of their business. “But if there are aspirations for growth or skill sets within the law firm that simply aren’t as in demand as they used to be, you’re going to find yourself in a scenario where strategic planning is going to be critical,” he says. All images, videos and graphics used on this website are dramatizations. What do we look like today? Where are they going to spend their business improvement efforts? Unless indicated, individuals on this site are not lawyers. Show your clients commitment to your values while simultaneously providing them exclusive access to business growth expertise. Legal research company Clio said that about 20 percent of law firms fell into the growing category, meaning the law firm is growing their revenue. Each strategy has certain advantages and when executed deliberately can ensure consistent growth in the law firm environment. Join this online seminar and learn how to increase growth in all of these specific areas. “But then you’re just going to work each day and letting your environment dictate to you how you’re going to manage and work your law firm,” Wilson says. And then we lock ourselves up for a day or two in a retreat-type setting and basically work through the whole process.”, To measure law firm strategic planning success financially and otherwise, Jenner uses a range of metrics and compares performance throughout the year against the strategic plan, monthly, biannually, and annually, Truax says. Every sector in the legal industry has felt the effects of COVID-19. Growth Strategies for Law Firms- Cash Flow Is King You need to start figuring out a way to cut these getting paid waiting times down. The most common law firm strategic planning issue facing firms in recent years has been how to respond to the economic shift in the legal market since the Great Recession, with fewer clients and a tighter bottom line, says John Olmstead, principal at St. Louis-based consultancy Olmstead & Associates. “The reason it’s important is that it’s a guide for a firm to keep on topic and on goals, so we can always look back and bring it up at a monthly meeting.”, The original content within this website is © 2020. Law firms can increase caseloads, employees, or efficiency. We are in the process of transferring our clients to our lawyers. Law firms have a thirty-one percent utilization rate. You need to grow sales and still offer top quality service to clients. “That doesn’t mean you don’t react to the moment,” Truax adds. I have my own ideas, but they’re more down in the trenches and know a lot of things I don’t know, or forgot, or need to keep in mind.”, Firms should not confuse strategic planning with crisis management, Olmstead says. “It’s hard to think long term when you can’t think through the current day.”. You need to be separated for a year before the divorce is approved. “He sent me his numbers, and I’m looking at the financials, and they’re terrible,” he says. “It needs to get down to the nitty-gritty, hold people accountable for some of the action items you’re going to get done. You do the pre-work, financial review and analysis, beforehand. Because attorneys tend to enjoy discussion and debate, the process of putting together a law firm strategic plan can seem natural and appealing, Olmstead says. And that meant that about 60 percent of law firms operate in a stable environment. The courts are also now available again. In this article, we base our information on the 2019 Legal Trends Report. “They’re fighting fires, meeting deadlines, getting things filed in court.” Plus, he adds, “They don’t have the resources to hire an expert to do it for them.”, Small firm attorneys need to pick out a time and day, on a regular interval, to pop their heads out and look around, Caldwell says. For the law firms that grew, their revenue growth basically doubled over five years. His talks aren’t tailored to large firms because “they have a lot of their own educational systems—they hire some hotshots and bring them in and pay them a lot of money to walk them through the strategy,” he says. Where do I want to be in 24, 36 months?” he says. “Practice Management: Plan to Grow,” by Ed Finkel, was originally published in the March 2015 edition of the Illinois Bar Journal. “Different approaches to strategic planning [for different-sized firms] would be appropriate,” he says. “The world is complicated. Referral Tracking Via CRM Solutions. How can law firms stay relevant and competitive in this ‘new law’ era where many firms are doing things differently, and ensure that’s reflected in their long-term strategy? That’s really bad performance and lawyers need to improve on this. Your law firm strategic planning process is the best way to achieve success in the long run, even if it seems like you’ve been doing just fine dealing with the day-to-day. Staying consistent is key to building your brand, and an integral part of this process. Now, we know not every lawyer uses trust accounting, but many lawyers do. This is something that wouldn’t make sense to do in December. Any strategy worth its salt will explore potential risks in the marketplace and balance them against the expected upside. Are you are looking for growth strategies for law firms? The information provided on this site is not legal advice. Ask yourself if you are operating in a cadence that … But how do they get there is a question that we started asking ourselves. But with the right strategic focus and insight, your firm can stem the tide, raise your visibility and lock down new business. New Law Firm Strategies for Growth Amid the COVID-19 Pandemic and After. “I want to know: When are we going to do it, and whose name am I putting in the box, and when is this task going to start,” he says. “The bigger challenge is getting them to implement anything. A Business Growth Strategyis a roadmap for growing your firm. As the role of legal operations in a post-pandemic world remains somewhat hazy, one thing Let’s take a look at several key steps and pillars or a quality growth strategy that any modern law firm should focus on to ensure steady growth. “The process doesn’t change. Your access to the website is subject to our Terms of Use and Privacy Policy. Law firms can grow in a variety of methods. Forget the fancy words, you need a real, living, breathing plan which follows a structured approach to marketing & business development planning. © ClearWay Law 2020 – All rights reserved. It’s part of your monthly workflow to be prepared for those audits. Many lawyers say they are overworked and that’s going be difficult for them to grow their law firm. This site does not provide any kind of explanation, opinion or recommendation about possible legal rights, remedies, defenses, options or strategies. Keep in mind that your firm’s areas of practice, expertise, capacities as well as culture, should all be taken into account when mapping out possible growth strategies. They just maintain the status quo and manage risk to their company. “If they’re not using technology right, and they can’t even pull any basic reports to know how they’re performing financially, they can’t pull together reports as far as what they’re paying their people, if they don’t have a website or some of those basic things – and you’d be surprised how many don’t. •You’re losing business because you can’t keep up with demand •You need/want to focus on certain aspects of your business rather than struggling to juggle everything Law Firm Growth Plans How to know when to hire your first employee by Charlene Jimenez in Business Entrepreneur - February 21, 2012 3. “From that, we would also try to back in the number of new clients we would get each year,” he says. You should first consider if it is the right time of year to grow your practice. Without money in the bank, it’s hard to take on business development. Below we will show you five business growth strategies for your law firm which will optimize your investments and maintain a steady flow of both business and profit. For smaller firms and solos, there’s always a temptation to do nothing but react to the moment, says Bill Wilson, principal at The Law Offices of Wilson & Wilson and The Center for Estate Planning and Elder Law, based in west suburban LaGrange. If your firm is still using Excel to categorize your leads and … When you’re a high performer, the growth is monumental. You want more revenue. We describe four growth strategies and use benchmarks of a sample of 150 law firms stemming from all Latin America to … The most common law firm strategic planning issue facing firms in recent years has been how to respond to the economic shift in the legal market since the Great Recession, with fewer clients and a tighter bottom line, says John Olmstead, principal at St. Louis-based consultancy Olmstead & Associates. In recent years, most of the challenges firms are having are the same, everything from pressure on the economics, to resistance from clients to fee increases.”. Because in that month they are going to be focused on billable work. We love helping attorneys market their practice. That’s what you believe to be a success when it comes to an outcome for your law firm. This site does not constitute a lawyer referral service, and does not form any lawyer-client relationship. Sometimes it’s a month and a half before a lawyer even bills their clients. If we are growing our revenue, but clients are not leaving 4-5 star reviews, there is a problem. You can then plan the best time to do business development. In the legal services market, growth has stalled, corporate clients are taking their legal needs in house and independent law firms are losing their share of the market. 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