If you have been involved in the practice of law for 20 years or more and listened to yesterday’s Sunday morning news shows, I’m sure that the talk of a bailout of banks and the creation of a resolution trust to manage and dispose of distressed real estate seemed like déjà vu. It certainly reminded [...]
When law firms go about attempting the implementation of strategies that involve some aspect of change for the firm, there is frequently a lot of talk about “burning platforms.” The concept is that people, particularly lawyers, are resistant to change. Therefore, even the most logical and rational justifications of change don’t seem to work unless [...]
The economy is making a lot of firms nervous about the future of their traditional practice areas. So, it’s not surprising that firms want to look at “emerging” practices – areas where they might be able to establish a position of strength before competitors are even aware that the practice exists. But new niche practices [...]
When a law firm becomes dominant in its marketplace, there is only one place for it to go – down. Often, firms find that retaining their position as king of the hill is as hard as getting there was in the first place. Most firms find that the old Mel Brooks line is true – [...]
It is quite common at law firm retreats to have a panel of clients discussing their views on law firms. Often, a partner in the audience will ask a panelist, “What is the most important issue to you in selecting outside counsel?” I’m sure that the person asking the question is expecting to hear that [...]
Law firms are notoriously bad at implementing their strategic plans. Consultants often blame the lack of leadership and accountability that is inherent in partnership entities. Certainly the consensus method of decision-making that is present in many firms doesn’t promote getting things done. In fact, I know a managing partner who suggests there are a couple [...]
It’s common wisdom that law firms are lousy at the implementation of strategy. The typical reason given is the lack of accountability in their governance structures. That’s true, but I can point to lots of firms that lack accountability but were still able to pull the trigger on strategic implementation and make meaningful changes in [...]
Through a combination of bill audits and competitive pressure on hourly rates, law firms that enjoyed long-standing relationships with insurance clients are being threatened with the loss of business to competing firms. As a result, law firms specializing in insurance defense are feeling a profit squeeze that is, perhaps, greater than any other sector of [...]
When children are given food they don’t like and are told, “Eat it, it’s good for you.” they have this special way of nibbling small amounts of it and making it look like they are actually eating. When law firms go about creating and implementing strategy they often use the same technique. They nibble around [...]
There is a tactic used in many businesses that is known as throttling. Throttling involves taking actions that cause less profitable customers to change their behavior so that they become more profitable. The theory is that if the business is successful in changing customer behavior, the profits go up. If they are unsuccessful, the customer [...]
A big portion of the success of strategic planning is that it forces law firms to focus their attention on a few selected practices or industries – preferably those in which the firm has a position of dominance. This means that lawyers in other practices may feel like neglected stepchildren. How the firm deals with [...]
Recently, the New Jersey Supreme Court Advisory Committee on Professional Ethics issued an opinion that law firms could own other law firms and operate them as subsidiaries. Enabling this action is the basic opinion that Rule of Professional Conduct 5.4(a) which prohibits fees sharing with non-lawyers, does not limit a firm to turn over its [...]
There is an old saying that “When an alligator is gnawing on your leg it’s hard to remember that the only effective way to handle the alligator problem is to drain the swamp.” Perhaps the greatest value of strategic planning is that it focuses firms on long-term issues. Law firms are notoriously myopic and it [...]
One of the features of law firms that make strategic planning such a challenge is that some of the basics one might expect to find in any rational business enterprise are not present in many law firms. Take, for example, the reason why a law firm is in business. Now, I’m not talking mission statements [...]
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