Institutionalizing Your Law Practice

Question:

I am the sole owner of a six-attorney estate planning practice in Phoenix, Arizona. The five associates have been with me from five to fifteen years. I just turned fifty-five and would like to retire when I am sixty-five either by selling my practice to another firm or to one or more of my associates. I would like to receive some remuneration for the sweat equity that I have invested (goodwill). I have tried over the years to setup my practice in a way that it is not “just me.” I changed the name of my firm to a trade name that does not include my name, arranged the lawyers names on our letterhead and website alphabetically, and eliminated designations such as principal and associate. I believe that I have made it difficult for clients and prospective clients to know who the boss is. I hope that this will make my firm more salable and appealing in the future. I would appreciate your comments.

Response:

I took a look at your website and thought it was pretty easy to see that you are the firm. For example:

You are the only attorney that has given seminars and presentations
You are the only attorney that has articles and book chapters published.
You are the only attorney that has served as chair on bar association committees.
You are the only attorney certified by the Arizona Bar as a estate and trust attorney.
The bios of the other attorneys in the firm are weak.

I suspect that you are the rainmaker and in spite of any advertising that the firm does and your website most of the firm’s business comes from your referral sources, past clients, and your reputation.

I believe you have to do more than what you have done to institutionalize your practice. Here are a few suggestions:

Motivate and push if necessary your associates to write and publish and get these works posted to the website.
Motivate and push if necessary your associates to give presentations at bar and other professional association and community events.
Motivate and push if necessary your associates to present firm seminars.
Post your associates works to your website and to their bios.
Require your associates to become certified as estate and trust attorneys with the Arizona Bar.
Consider revamping your compensation system to motivate and reinforce the above activities.
Incorporate the above as “performance factors” in annual performance reviews.
As time passes if you find that your associates are unwilling to step up to the plate consider hiring different type of lawyers in the future.
Do more advertising to increase the business that comes into the firm from other than your personal reputation.
If you have not already, fully document your office procedures and automate your practice.

If you are able to accomplish many of the above suggestions you will be on your way to institutionalizing your practice.

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

Posted at 08:18 AM in Marketing, Strategy, Succession/Exit Strategies

Sep 13, 2017

Institutionalizing Your Law Practice

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