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  • February 8, 2017 | Practice News
    Best Practice: Law firm partner compensation – collaborative team practice

    Asked and Answered

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

    Q. We have a 25-attorney firm based in San Antonio, Texas. We have 15 equity partners. We are equal partners and have equal ownership interests. Our partners are paid based upon ownership shares. Thus, each is paid the same. The system has worked well for us for many years and has supported our team-based collaborative culture. However, we are having issues with non-productive partners, and some of the productive partners feel that the compensation system is no longer fair. Some of the partners have suggested that we move to a formulaic system. Other partners in the firm feel that such a system would destroy the collaborative culture we have built. We appreciate your thoughts.

  • February 1, 2017 | Practice News
    Best Practice: Searching for a First-Time Legal Administrator

    Asked and Answered

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

    Q. We have a 12-attorney business litigation firm in Springfield. I am part of our three-member management committee and have been charged with helping the firm find and hire our first legal administrator. While we have a bookkeeper who handles our billing and accounting, the rest of the firm's management matters are handled by the management committee. We believe we have reached a size where we need help with managing day-to-day operations. What sort of skill set and type of person should we be looking for?

  • January 25, 2017 | Practice News
    Best Practice: Law Firm Practice Sale - Selling a Personal Injury Plaintiff Practice

    Asked and Answered

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

    Q. I am the owner of a personal injury plaintiff practice in downtown Chicago. I am the only attorney in the firm. I have two legal assistants. I am 66 years old and am starting to think about retirement and how to exit my practice. I would like to sell the practice to another law firm or practitioner. Does my practice have any value and can it even be sold?

  • January 18, 2017 | Practice News
    Best Practice: Law Firm Structure - Sole Owner vs Having Partners

    Asked and Answered

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

    Q. I am the owner of an eight-attorney insurance defense firm in San Antonio, Texas. I have been practicing fifteen years. I am forty-five years old. Many of my peers in firms my size are in partnerships. Is my situation unusual? Should I consider having partners?

  • January 11, 2017 | Practice News
    Best Practice: Law Firm Staff Compensation - Bonuses for Staff

    Asked and Answered

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

    Q. I am the sole owner of a four-attorney firm in St. Louis, Missouri. Our firm has four staff members - 2 legal assistants, a receptionist, and an office manager/bookkeeper. It is that time of year again where I anguish over year-end bonuses for staff which end up being Santa Claus bonuses with no relationship to actual performance. I would like to move away from this approach and tie their bonuses to performance. How do I measure performance for bonuses?

  • January 3, 2017 | Practice News
    Best Practice: Law Practice Management - Goals for 2017

    Happy New Year and Best Wishes for a Personal and Professional 2017

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

    As 2016 comes to an end we begin with a clean slate for 2017. As with anything new - the uncertain future can be scary and exciting at the same time. Year-end provides an opportune time for reflection on the past year and setting goals for the next year - both personal and professional. Goal setting can improve your personal life and your practice.

  • December 21, 2016 | Practice News
    Best Practice: Law Firm Succession Planning - Selling My Stock to Several Associates

    Asked and Answered

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

    Q. I am the sole owner of a five attorney personal injury plaintiff firm in the Dallas suburbs. Over the years I have built a sustainable brand through advertising. I have helped my associates develop their reputations, handle substantial cases, and be involved in various areas of firm management. I am planning on retiring in five years and I would like to begin the transition early next year by selling some stock (minority interests) to deserving associates with the remainder of my shares to be purchased upon my retirement. Originally, I had through about selling shares to two associates that have been with the firm for over fifteen years - now I am thinking about selling shares to all four associates. I think it would be easier for the four to come up with the required money. I welcome your thoughts.

  • December 14, 2016 | Practice News
    Best Practice: Law Firm Marketing - Marketing a Litigation Defense Practice

    Asked and Answered

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

    Q. Our firm is a 14-attorney general practice firm located in Dayton, Ohio. Two of our attorneys focus their practice on personal injury defense and the others are transactional attorneys. While the practice is doing well overall, our litigation work is dropping off. I would appreciate any ideas that you have pertaining to marketing a litigation defense practice.

  • December 7, 2016 | Practice News
    Best Practice: Law Firm Client Development - Getting and Keeping Clients - Roles for Associates

    Asked and Answered

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

    Q. Our firm is a twenty two lawyer insurance defense firm in Seattle. Over the years we have told our associates that they were hired to work on firm business and there was no requirement for them to develop or bring in client business. In fact we specifically asked them not to bring in business. Now we are rethinking that policy. Many of our equity partners are retiring and we are finding we have a group of grinders - with very few minders or finders capable of either retaining existing clients or bringing in new clients. What are your thoughts?

  • November 30, 2016 | Practice News
    Best Practice: Law Firm Retainer Management - Replenishment

    Asked and Answered

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

    Q. Our firm is a five attorney estate planning/administration practice located in Kansas City. Our estate planning work is handled on a flat fee basis for our clients. We collect one half of the fee upon acceptance of the signed engagement letter and the other half upon signing of the estate planning documents. This has worked well for us. However, we are not doing so well with our estate administration work. This work is time billed against a retainer. We do a good job collecting the initial retainer but then we fail to ask for replenishment retainers and when we bill for the remaining work we have collections problems. We have over six hundred and fifty thousand dollars in accounts receivable over 120 days old. We would appreciate your thoughts.