The motivation of any firm in the pursuit of a particular growth strategy requires a study of the firm, its management’s challenges and its overall needs. This will lead to significant changes in revenue. To progress in the legal sector and outdo other players, take note of the strategies that we’ll be briefly talking about in this short article. — Start with a Goal. New research highlights how law firm leaders—and clients—are finding opportunity to generate revenue, despite facing previously unthinkable challenges. Without money in the bank, it’s hard to take on business development. Are you are looking for growth strategies for law firms? Don’t put out bills when you know you won’t get paid. Are you keeping on top of that aging receivable? “Every day is filled with new opportunities and new curveballs.”. You need to grow sales and still offer top quality service to clients. “It’s hard to think long term when you can’t think through the current day.”. 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? He measures his marketing success in terms of numbers of articles published, newsletters contributed to, seminars delivered, and new contacts and referral sources. We love to help by providing free helpful content! With the vast competition law firms face to get new clients, your law firm needs a comprehensive marketing strategy to get found by clients, find new clients, and retain your current clients. •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. “That doesn’t mean you don’t react to the moment,” Truax adds. Your access to the website is subject to our Terms of Use and Privacy Policy. But at the risk of generalizing, four non-strategic things prod law firm management into growth by non-organic methods. Staying consistent is key to building your brand, and an integral part of this process. For the law firms that grew, their revenue growth basically doubled over five years. And being prepared is important if you don’t want into trouble. It’s difficult to know which methods give you the best return on investment sometimes. New Law Firm Strategies for Growth Amid the COVID-19 Pandemic and After. His career is highlighted by consistently providing the counsel and leadership critical to successful law firm transitions. “Three to five years from now, what are we going to be doing?”. Address generational differences. 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. We love helping attorneys market their practice. What are our strengths, weaknesses, opportunities, and threats? Law firms can grow in a variety of methods. Law firms on average are trying to work around an eight-hour day. “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? 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. The number one definition of growth for law firms is revenue. This site does not constitute a lawyer referral service, and does not form any lawyer-client relationship. Where do we want to be in 12 months, and in five years?”, The plans are revisited throughout the year iteratively, Truax says, which “requires focus and discipline, making sure everybody stays on message. As the role of legal operations in a post-pandemic world remains somewhat hazy, one thing The need for law firm strategic planning doesn’t change,” John says. 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. “These obviously are all projected goals.”, Wilson considers his plans living documents that he revisits continuously to see how well the law firm’s strategic planning efforts are matching the vision laid out. “From that, we would also try to back in the number of new clients we would get each year,” he says. Do quality legal work and make sure you collect money. This webcast highlights key findings from Burford’s new research, the 2020 Legal Finance Report , based on 499 online surveys of in-house and law firm lawyers and 29 in-depth interviews of leading lawyers across seven countries. You also need to think about annual planning requirements for trust accounting. Whereas stable firms, as their name implies, were relatively flat in terms of revenue growth. Privacy policy // XML sitemap // Page ID: 81059. 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. Not an Insider yet? And so, when are they going to spend their time on business development? Which law firm digital marketing growth strategy are you going to start with? That’s why the best strategies take your time and focus on one at a time. They’re refined throughout the year; we ask people to pull together their plans and test them.”, In smaller firms, there are fewer people involved and fewer decisions to make but also less time, Caldwell says. Our affordable lawyers are available during COVID-19 to file documents and work on your legal needs. But it can’t be all unicorns and rainbows—it has to consider potential pitfalls, too. It’s necessary at times, for the livelihood and success of the firm, to pop your head up, see what’s going on in the marketplace, and see whether your firm needs to make some changes.”. “The process doesn’t change. “If you’re wanting to grow your corporate law practice, maybe it’s the snagging of three to five major accounts, something that will let you know you’re getting a little bit closer to what the plan had set out for you.”, Be sure to assign responsibility for specific planks of the law firm strategic plan, Caldwell says. That’s really bad performance and lawyers need to improve on this. You will need to develop a communication strategy and employ it to keep the entire program honest. You will need to do something about this. Unless indicated, individuals on this site are not lawyers. We describe four growth strategies and use benchmarks of a sample of 150 law firms stemming from all Latin America to … Every sector in the legal industry has felt the effects of COVID-19. Sign up for emails to get updates on Canadian Law and tips for resolving your legal issues. As a solopreneur or small law firm, growth starts with setting a clearly defined goal on what you want to achieve. 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. Your law firm is dedicated to building long-term client relationships. They don’t get paid right away. Law firms have a thirty-one percent utilization rate. A plan that isn’t implemented is only a list of suggestions. 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. You want more revenue. Show your clients commitment to your values while simultaneously providing them exclusive access to business growth expertise. If they’ve got 14 or 15 attorneys and don’t have an office manager in place,” they should take care of that first, he says. Growth Strategies for the Modern Law Firm Growth is an imperative for any successful business. Law firm managers should think of these things if they want the company to grow. Otherwise, it’s just one of those non-billable activities.”. Where do I want to be in 24, 36 months?” he says. What was once standard operating procedure for Baby Boomers or even Gen-Xers can now seem completely obsolete or anachronistic to Millennials. “That will guide us as to whether we’re moving forward with respect to that strategic objective,” he says. The average waiting time is almost two and a half months. Law firm strategy is a future-proof plan that enables firms to prioritize objectives, remain competitive, and optimize financial goals. The information provided on this site is not legal advice. Those are then “vetted and cross-examined, and people are being encouraged and challenged in a positive way,” Truax says. 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. The latter is more urgent. Download The Visible Firm … Any strategy worth its salt will explore potential risks in the marketplace and balance them against the expected upside. But with the right strategic focus and insight, your firm can stem the tide, raise your visibility and lock down new business. 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. Law Firm Growth Plans 4. 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. Download your FREE strategy guide below. Ask yourself if you are operating in a cadence that makes it easy for my clients to pay you. © ClearWay Law 2020 – All rights reserved. You do the pre-work, financial review and analysis, beforehand. Related “Offer Unbundled Legal Services to Compete in Today’s Legal Market”, One current scenario that’s affecting consumer-oriented firms, in particular, is the trend toward websites that help people handle some of their own legal matters, Caldwell says. Depending on the area of law that you practice, you will be busy at different times of the year. We love to help by providing free helpful content! 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. “It’s hard to do a long-range strategic plan by yourself,” he says. Olmstead figures that probably three-quarters of large firms have strategic plans, while mid-sized firms in the 50-attorney range are closer to 50-50, with the likelihood shrinking to 15 percent or less of firms with 10 attorneys and fewer. As a law firm manager, you need to continue to grow your utilization rate over time. 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2020 law firm growth strategies