Two weeks ago I was asked by the managing partner of a 16 attorney insurance defense firm about staffing and growth models for an insurance defense firm and I listed the following models and discussed the first model – grow your own associate staffing.
Attorney staffing/growth models include:
This week I will outline the pros and cons for number 4 and 5 – Lateral Partners (Equity or Non-Equity) and Of Counsel.
Lateral Partners (Equity or Non-Equity
PROS
CONS
Of Counsel – Various Approaches and Purposes
Other models to be discussed in upcoming posts.
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John W. Olmstead, MBA, Ph.D, CMC
Last week I was asked by the managing partner of a 16 attorney insurance defense firm about staffing and growth models for an insurance defense firm and I listed the following models and discussed the first model – grow your own associate staffing.
Attorney staffing/growth models include:
This week I will outline the pros and cons for number 2 and 3 – Lateral Associate Staffing and Contract – Staff Associate Staffing
Lateral Associate Staffing
PROS
CONS
Contract – Staff Associate Staffing
PROS
CONS
Other models to be discussed in upcoming posts.
Click here for our article on hiring associate attorneys
Click here for our law firm management articles
John W. Olmstead, MBA, Ph.D, CMC
Question:
I am the managing partner of a 16 attorney insurance defense firm in Chicago Southwest Suburbs. We have 4 partners and the balance of our attorneys are associates – many of which have been with us for several years. We are on a growth spree and needing to hire more associates to handle client assignments. Associate hiring, mentoring, and training has always been a challenge for us and our clients are restricting us in the way we use associates on their files. I would appreciate your thoughts.
Response:
Attorney staffing/growth models include:
I will address the pros and cons of each model/approach in upcoming postings. I will begin by addressing the first one.
The traditional staffing model for insurance defense firms has been Grow Your Own Associate Staffing.
PROS
CONS
Click here for our article on hiring associate attorneys
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John W. Olmstead, MBA, Ph.D, CMC
Question:
I am the managing partner of a five attorney firm in Fort Worth, Texas. I am new to the managing partner role and am looking for a quick and dirty tool to examine our financial performance. Can you point me to a tool that I can use?
Response:
I have a quick and dirty tool that I call the Law Practice Profitability and Management Checklist and you are welcome to use it. It is not an exhaustive assessment – just a tool that can be used to get started.
Click here to access the Law Practice Management Checklist
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John W. Olmstead, MBA, Ph.D, CMC
Question:
I am the chair of our firm's marketing committee. We are a 24 attorney insurance defense firm in Houston. While we solicit feedback from some of our larger insurance company clients at lunch and face to face meetings – the sessions are not structured, data is not really tabulated, and only a handful of clients are usually involved. We have been thinking of embarking on a more structured process. I would appreciate your thoughts:
Response:
Our firm recently completed client satisfaction interviews for several of our insurance defense law firm clients. Here are a few quotes and a summary of what these insurance company law firm clients told us:
Much can be learned by talking to your clients. Structured telephone interviews conducted by a neutral in-house law firm marketing employee or outside third party can provide many surprises as well as answers. Client satisfaction interviews can be the best marketing investment that you can make.
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John W. Olmstead, MBA, Ph.D, CMC
Question:
I am a member of the firm planning committee. We are an 18 attorney firm based in downtown Chicago. We have had planning retreats in the past with mixed results. Some believe that they have been a waste of time. We are planning a fall retreat. I would appreciate any ideas that you may have that would help us accomplish more from these retreats.
Response:
A retreat will not be successful unless an implementation plan is formulated during the actual retreat and made a part of the proceeding. Specific assignments and completion dates must be agreed upon during the retreat itself and schedules for reporting on progress must be determined.
At the conclusion of the retreat the outcome of the retreat and the implementation plan should be summarized.
Within two weeks after the conclusion of the retreat a retreat report should be written and distributed to all firm members in attendance. Completion dates should be placed on the firm's calendar as well as the individual's calendar. A retreat follow-up item should be on each and every firm meeting agenda. A post retreat evaluation should be conducted six months after the conclusion of the retreat.
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John W. Olmstead, MBA, Ph.D, CMC
Question:
I am the Director of Administrator in a 45 attorney law firm in Miami. Twenty of these attorneys are partners and ten of the partners are in their late fifties and mid to late sixties. While we have a semi-retirement program in place it is not mandatory and many of our senior attorneys are unwilling to address issues pertaining to succession and transition of their practices. Do you have any thoughts or ideas you can share regarding creating incentives for senior attorneys to address and deal with the issue of retirement?
Response:
Larger law firms are moving away from mandatory retirement. However, many large law firms still have mandatory retirement. According to a recent survey approximately 57% of law firms with over 100 attorneys have mandatory retirement programs. At the other end of the spectrum many smaller firms that never had mandatory retirement are beginning to incorporate some form of mandatory retirement in their agreements. In firms of all sizes and whether they have mandatory retirement programs or not – getting senior attorneys to deal and cope with aging is a challenge. Here are a few thoughts:
Aging is a difficult time for all of us and it is normal not to want to think about age related issues much less to begin planning. Your role will be to help senior attorneys take baby steps and come to terms with aging in general.
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John W. Olmstead, MBA, Ph.D, CMC
Question:
Our firm is a three attorney personal injury plaintiff located in Los Angeles. We started the firm fifteen years ago. Two of the three attorneys are equity owners. Our firm is a high volume/low case value practice – we currently have 500 open cases. A high percentage of our cases are settled without a law suit ever being filed. We are an advertising driven practice. While over the years we have effectively used a variety of advertising vehicles we have never ventured into TV advertising. We are considering venturing into TV and would appreciate your thoughts regarding TV advertising.
Response:
I have personal injury plaintiff law firm clients that have had great success with TV advertising and other clients that have had poor results. High case volume/low case value firms such as yours have had the greatest success. In order to be successful you must have the budget to be able to stay the course and the infrastructure to support and manage the advertising effort and to support the work and cases. The worst thing you can "dabble" with TV advertising. Here are a few thoughts:
Like any other business venture – if you do the proper due diligence and do your homework – TV advertising can be a great investment – if not it can be a nightmare. I have seen it go both ways.
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John W. Olmstead, MBA, Ph.D, CMC
Question:
I am the sole owner of a four attorney general practice firm in Rockford, Illinois. I am 58 and realize that in the next few years I will need to begin implementing a succession and exit strategy by probably bringing in a partner. Two of the associates have no interest in partnership. However, the newest associate hired, who had his own practice for several years, does have such an interest even though he was recently hired. He is off to a good start as far as his production. However, I believe that he must be able to originate and bring in client business as well. So far his energy and focus has been totally on performing legal work. I want to get him started on the right track in order that I can make him a partner in a few years. Please provide any thoughts that you may have.
I agree that in a practice such as yours that client origination is important. I suggest that you start by laying out and discussing with him your expectations. In other words what will it take for him to become a partner – production, quality of legal work, billings, client satisfaction, and origination of new client business? Be specific and set specific goals for him and your expectations for him but also your timeline for partnership consideration. I would suggest five years. Personally, I believe his client origination goal at the five year point should be between $300,000 and $500,000 or higher. Establish baby step goals for origination – say $50,000 after year one, $100,000 after year two, $200,000 after year three, $300,000 after year four, $400,000 after year five. This will require that you track origination fee dollars in your billing/accounting system. Specific guidelines and rules regarding the attribution of origination credit should be developed. In other words an attorney should not receive origination because a client calls as a result of the firm's brand, advertising, etc. and he is passed the call because he is the only attorney in the office to take the call.
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John W. Olmstead, MBA, Ph.D, CMC
Question:
I am a partner in a 16 attorney firm located in Baltimore, Maryland. Our clients are primarily business firms. I am the chair of our three member marketing committee which was formed three years ago. Our firm is increasing our commitment to marketing and have increased our budget over the past three years. However, we are not sure what we should be spending our money on. Your suggestions would be appreciated.
Response:
Hopefully, you have developed a marketing plan and a marketing budget tied to the specific objectives outlined in the plan. Here are a few general guidelines, tips, and best practices:
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John W. Olmstead, MBA, Ph.D, CMC