Best Practice: Improving law firm profit

Asked and Answered By John W. Olmstead, MBA, Ph.D, CMC Q. Our firm is in its second generation. While we are proud that we have been in business for over 60 years we also believe we need to re-examine our practice and embrace changes that may be needed for the firm to move forward and remain competitive. We are a 16 attorney firm located in Wisconsin. We have 12 partners and four associates. A. More and more law firms are re-examining their business models and approaches and running the practice as a business. You may want to begin by conducting a management review or audit to determine where the firm is presently and where the firm needs to head in the future. Start by Asking the Following Questions:

1. Are firm members frustrated with the amount of money they are making and taking home?
2. Are firm members unsure whether the firm is competitive with other law firms?
3. Is the firm taking advantage of some of the management “Best Practices” being used by successful law firms and possibly your competitors?
4. Are firm members concerned about getting a handle on and controlling the financial aspects of the firm?
5. Are firm members uncertain about the future and long-term direction of your firm?
6. Are firm members frustrated with the lack of accountability of other attorneys and staff?
7. Is everyone effectively managing their time?
8. Are members concerned about the firm getting and keeping clients?
9. Are members concerned about work-life balance?
10. Are members concerned about the succession and exit of key partners?

I suggest that you conduct a practice management review that will provide you with a clear assessment of the firm’s practices and performance and outline a plan for implementing "Best Practices". The assessment should focus on:

• Firm Image - Client and Peer Perceptions
• Long Range Plans and Business Strategy
• Marketing, Business Development & Client Relations
• Firm Government & Structure
• Compensation
• Staffing
• Business Process and Operations
• Financial Performance and Management
• Human Resources
• Administration
• Deployment of Technology

Good luck on your journey! Click here for our blog on profit improvement and other topics Click here for articles on other topics 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.