Best Practice: Characteristics of successful law firms: Block No. 5 - Planning

Asked and Answered By John W. Olmstead, MBA, Ph.D, CMC 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
• Firm Management
• Partner Compensation
• Planning
• Client Service
• Marketing

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.

• Find ways to focus the firm and foster accountability from all
• Keep strategy and planning simple
• Undertake a few projects at a time that can be realistically accomplished
• Delegate tasks across the firm
• Build upon initial successes and move to more complex strategies, which will require more difficult degrees of change
• Adopt management structures that enable the firm to act decisively and quickly.
• Replace structures that do not support such a culture

Elements of an effective business plan should include:

• Decision as to direction of the firm
• 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 John W. Olmstead, MBA, Ph.D, CMC, (www.olmsteadassoc.com) is a past chair and member of the ISBA Standing Committee on Law Office Management and Economics. For more information on law office management please direct questions to the ISBA listserver, which John and other committee members review, or view archived copies of The Bottom Line Newsletters. Contact John at jolmstead@olmsteadassoc.com.