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Category: New Firm Startup

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Sep 28, 2010

Characteristics of Successful Law Firms – Basic Building Blocks – Block 6 – Client Service

For the past five weeks I have been discussing the characteristics of successful law firms and introduced the following basic building blocks that successful firms typically have in place:

Partner relations, leadership, management, partner compensation, and planning blocks have been discussed. 

The sixth basic building block is client service. Successful firms deliver exceptional client service. They don't just meet client expectations – they exceed them. 

This is the decade of the client. Clients are demanding and getting – both world-class service – and top quality products. Many law firms have spent too much energy on developing new clients and not enough retaining old ones. For many law firms, obtaining new work from existing clients is the most productive type of marketing.

Delivering great client service is extremely important in today’s legal marketplace. More and more lawyers and law firms are competing for fewer clients while client loyalty continues to drop. It is no longer sufficient to simply be competent or an expert in today’s competitive legal environment – law firms must distinguish themselves by the service they provide. Lawyers and law firms must strive for 100% client satisfaction. Service is how many clients can tell one lawyer or law firm from another. 

Clearly, from what law firms' clients are telling us, lawyers and law firms need to improve client service by integrating a client-first service focus into everyday practice and getting feedback on performance.

Most clients can’t evaluate the quality of your legal work. What they can and do is evaluate the experience of working with you. 

Lets face it – customer and client expectations have changed across all industries. It is a buyers market and they know it. Today clients want it all – better, faster and cheaper. If you can’t provide it they will go somewhere else.

The key is to management client expectations – underpromise and overdeliver.

Click here to read my article series on client service.

I will address each of the other building blocks in upcoming postings.

John W. Olmstead, MBA, Ph.D, CMC
www.olmsteadassoc.com

Sep 22, 2010

Characteristics of Successful Law Firms – Basic Building Blocks – Block 5 – Planning

For the past four weeks I have been discussing the characteristics of successful law firms and introduced the following basic building blocks that successful firms typically have in place:

Partner relations, leadership, management, and partner compensation blocks have been discussed. 

The fifth basic building block is planning. Successful firms have a long range business or strategic plan in place.   

Based upon our experience from client engagements we have concluded that lack of focus and accountability is one of the major problems facing law firms. Often the problem is too many ideas, alternatives, and options. The result often is no action at all or actions that fail to distinguish firms from their competitors and provide them with a sustained competitive advantage. Ideas, recommendations, suggestions, etc. are of no value unless implemented.

Well designed business plans are essential for focusing your firm. However, don’t hide behind strategy and planning. Attorneys love to postpone implementation.

  • Elements of an effective business plan should include:
    • Decision as to direction of the firm
    • Data collection and review
    • Data collection and review
    • Action plans
    • Implementation and follow-up mechanisms

    Failing to plan is planning to fail.

    Click here to read my article on the topic.

    I will address each of the other building blocks in upcoming postings.

    John W. Olmstead, MBA, Ph.D, CMC
    www.olmsteadassoc.com

    • Sep 14, 2010

    Characteristics of Successful Law Firms – Basic Building Blocks – Block 4 – Partner Compensation

    For the past three weeks I have been discussing the characteristics of successful law firms and introduced the following basic building blocks that successful firms typically have in place:

    Partner relations, leadership building, and management blocks have been discussed. 

    The fourth basic building block is partner compensation. Successful firms have a good partner compensation in place. Partners frequently advise us in confidential interviews that they are more dissatisfied with the method used to determine compensation than with the amount of compensation itself.

    How much and how partners are paid are probably the two most challenging management issues that law firms face. Many law firms are struggling with compensation systems that no longer meet the needs of the firm and the individual partners. Failure to explore alternatives to failing systems often result in partner dissatisfaction leading to partner defections and disintegration of the firm.

    In many law firms compensation systems have been counter-cultural and failed to align compensation systems with business strategies. As more law firms move toward teams many are incorporating new ways to compensate partners in order to develop a more motivated and productive workforce. Team goals are being linked to business plans and compensation is linked to achieving team goals. Such systems reinforce a culture that significantly advances the firm’s strategic goals.

    People tend to behave the way they're measured and paid.

    What gets measured and rewarded – is what gets done.

    However, be advised that compensation does not drive behavior – it maintains status quo. Motivation requires leadership which can have a greater impact upon a firm than anything else.

    Compensation systems should do more than simply allocate the pie – they should reinforce the behaviors and efforts that the firm seeks from its attorneys. Many firms are discovering that desired behaviors and results must go beyond short term fee production and must include contributions in areas such as marketing, mentoring, firm management, etc. to ensure the long term viability of the firm.

    Click here to read my article on the topic

    I will address each of the other building blocks in upcoming postings.

    John W. Olmstead, MBA, Ph.D, CMC
    www.olmsteadassoc.com

     

    Sep 08, 2010

    Characteristics of Successful Law Firms – Basic Building Blocks – Block 3 – Management

    For the past two weeks I have been discussing the characteristics of successful law firms and introduced the following basic building blocks that successful firms typically have in place:

    Partner relations and the leadership building blocks have been discussed. 

    The third basic building block is management. Successful firms have a good governance and management structure in place and effectively manage the firm. A major problem facing many law firms is the lack of long range focus and the amount of partner time that is being spent on administrivia issues as opposed to higher level management issues. Time spent in firm governance and management, if properly controlled, is as valuable as, if not more valuable, than the same time recorded as a billable hour. (client production time)

    There is a difference between management (governance) and administration.

    Partners and law firm owners should be focusing their time on the management issues rather than administration.

    Management includes:

      – Productive activities, including those of individual lawyers and the firm as a whole.
      – Quantity, quality, and economic soundness of the work.
      – Development of lawyers and future leaders of the firm.
      – Formulation of policies that will determine the firm’s character
      – Financial planning, both short-term and long-range.
      – Marketing and business development.
      – Partner compensation and profit distribution systems

      – Other decisions requiring partner approval

    Almost everything else is administration.

    Hire an office administrator, manager or assistant for the administrivia matters so the partners can focus on the management concerns of the firm.

    I will address each of the other building blocks in upcoming postings.

    John W. Olmstead, MBA, Ph.D, CMC
    www.olmsteadassoc.com

     

     

     

     

     

    Almost everything else is administration.

    Hire an office administrator,office manager or assistant for the administrivia matters so the partners can focus on the management concerns of the firm

    I will address each of the other building blocks in upcoming postings.

    John W. Olmstead, MBA, Ph.D, CMC
    www.olmsteadassoc.com

     

     

     

     

      

     

     

    Aug 31, 2010

    Characteristics of Successful Law Firms: Basic Building Blocks – Block Two – Leadership

    Last week I discussed the characteristics of successful law firms and introduced the basic building blocks that successful firms typically have in place. These are:

    Last week we focused on partner relations as a core foundational building block.

    The second basic building block is leadership. Successful firms have good leadership in place. This may be a single individual or a core group of individuals. Leadership does not always come from the formalized management structure of the firm.

    Leadership is one of the major problems facing law firms. Leaders are needed for managing partner posts, executive committee chairs, and practice group heads.  

    Leadership behaviors include:

    Leadership skills will need to be included in compensation systems.

    Seven traits of effective leaders include:

    1. Make others feel important
    2. Promote a vision
    3. Follow the golden rule and establish trust
    4. Admit mistakes
    5. Criticize others only in private
    6. Stay close to the action
    7. Walk the talk.

    Leadership is what makes things happen and propels the firm forward, facilitates new directions and attainment of strategic goals, and provides the firms the resiliency needed in today's challenging competitive climate.

    Law firms without leadership are easy to spot. They are the firms that are "stuck-in-a-rut", unable to reach agreement or concensus on new ideas, stagnating profitability, partner defections.

    Firm must pay attention to this key area and develop leaders for all roles mentioned above.

    Click here to read my article on leadership

    I will address each of the other building blocks in upcoming postings.

    John W. Olmstead, MBA, Ph.D, CMC
    www.olmsteadassoc.com

     


     

     

    Aug 23, 2010

    Characteristics of Successful Law Firms: Basic Building Blocks – Block One

    Question:

    My partner and I just started our firm two years ago. We have one associate attorney and one staff member. As we grow our firm what should we keep in mind so we don't repeat some of the mistakes that I have seen in other firms that have not been successful?

    Response:

    I often refer to what I call the Basic Building Blocks of Successful Law Firms which are:

    Lets take the first one – Partner Relations. This is the foundation (bedrock) of a successful firm. A successful firm has a healthy partner culture – a good marriage. In such a culture partners share common vision and purpose, respect one another, shoot straight with each other, and have difficult conversations and discussions when needed and deal with issues and problems. In many firms this is not the case and these firms often are characterized by the following:

    Such firms are often doomed from the start. Firms that don't get this foundational building block right will build a firm on a shaky foundation. Before forming a partnership – go slow and get to know the other lawyer or lawyers and insure that the marriage makes sense, that you share similar goals and values, that you will be compatible, and you will be good partners. Once you have made the commitment – communicate, communicate, communicate and deal with issues in real time.

    I will address each of the other building blocks in upcoming postings.

    John W. Olmstead, MBA, Ph.D, CMC
    www.olmsteadassoc.com

     

    Apr 13, 2009

    New Firm Start-up Where Should I Begin

    Question: I am an attorney that has been in practice for 10 years with a large firm (200+) in the mid-west. I represented fortune 500 clients in the area of business and commercial transactions. I was a non-equity partner in the firm. Recently I was let go due to the economy and I have no idea when or whether I will ever be called back to work. For three months I have been applying for positions with no success. I am considering starting my own solo practice. Where and how should I start?

    Response:

    Being an attorney in solo practice will be a much different experience than what you are used to. You will have to handle more of the nuts and bolts of running and operating a practice. You will not have people to do everything for you like you did in your last firm. You will need to learn how to be an entrepreneur and think like a businessman.

    First, I suggest that you give some thought as to whether you have what it takes to operate your own firm and plan out your business. The best way to go about this is with a business plan. Click here for an article on the subject.

    After your have developed your plan begin developing your business identity, firm name, tag line, website domain name, and related graphic package. For ideas download a copy of our Best Practices Guide.

    Consider legal structure for the firm. Register with appropriate governmental and tax authorities.

    Determine where you will practice, how you will staff your practice, and techology needs. Keep as much of your overhead as possible. Consider virtual employees. At first do as much work yourself as you can. Add staffing resources as your firm grows. Don’t skimp on technology.

    Implement a first class website on day one.

    Good luck.

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

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