Kristin K. Stark

In the aftermath of the massive cost cutting and staff reduction programs undertaken by law firms in 2008-2009, 2010 appears to be a year in which law firm administrative functions will remain under the microscope. Despite some signs of improved demand for legal services, administrative and operational groups within law firms (e.g., marketing, finance, IT, HR and others) all face ongoing and intensified pressure from law firm leaders and other members of the partnership to take a closer look at work processes, staffing and spending. In response to this increased pressure, administrative leaders are seeking out ways to measure the performance of administrative functions -- to justify the function's staffing and costs and to demonstrate the group's value to firm leadership. The drive for performance measurement programs in law firms entails a shift toward careful assessment and analysis of the overall performance of various law firm administrative functions and their respective value to the firm.

For many years, corporate counsel and other executive-level buyers of legal services have been alerting law firms to their growing concern over the gap between rising law firm fees and the value of services delivered. Despite mounting client frustration, the law firm value proposition in the legal industry has remained relatively unchanged, with most firms continuing to bill clients by the hour and raising rates annually. These trends largely supported paying associates ever-increasing salaries and driving higher partner profits - neither of which served to improve the value of services delivered to clients. Client concerns about rising fees and the “value” of services have been previously overshadowed by years of enormous demand for legal services, enabling firms to avoid undergoing significant change to the traditional service delivery model. However, over the past year, market dynamics have aligned, creating an opportunity to transform services provided by law firms in order to better meet or exceed client demands.

This article originally appeared in the June 2009 issue of Accounting and Financial Planning for Law Firms.  ©2009, Incisive Media US Properties, LLC. Further reproduction or distribution prohibited.

Does your firm have a strategic plan? Do you know where that strategic plan is currently located? Is it tucked away in a dusty folder, hidden among a pile of abandoned firm initiatives? Or is your plan integrated into the fabric of your firm - indoctrinated into your firm’s practices, people, and culture?

 

Unfortunately for many law firms, strategic plans frequently remain in the form of untouched documents, failing to materialize as a part of the firm or its people. Research indicates that 90% of organizations fail to effectively execute their strategic plans[1]. The reasons for this are varied, but, as discussed later in this article, most hinge on the fact that strategy implementation is resource intensive and challenging. Nonetheless, strategic planning remains a top priority among successful law firms, based on the fundamental notion that an effective strategy offers unique opportunities for market differentiation and long-term competitive advantage. Given the importance of strategy and its execution, firms today are increasingly asking the question - what are the best tools and methodologies to enable effective strategy implementation?

This article originally appeared in the November 2008 issue of Accounting and Financial Planning for Law Firms.  ©2008  by ALM Publications, further reproduction or distribution without permission is prohibited. 

Do you know who your firm’s next leader will be? Do you have a short list of viable partner candidates? If your answer to these questions is no, you are not alone.

In the course of our recent work with law firms across geographic markets, we have observed a disturbing trend: a growing number of law firms today face an alarming void in their next generation of leaders.  In management meetings across the country, partners in law firms are looking around at one another and frighteningly acknowledging that no one person is prepared to step forward and take up the leadership helm. Despite the fact that a number of these firms have provided the right opportunities for young practitioners to transform into respected and admired mid-level partners, they are now confronting the reality that these individuals are either unprepared or unwilling to lead the firm. The reasons for the void in firm leadership are numerous and varied, and most are tied to the large number of disincentives to partners considering the leadership path. And unfortunately for firms, the consequences of a leadership vacuum are severe: with no clear successor in sight, firms experience increased instability and often enter into a state of strategic drift, putting the firm’s clients and its practice at risk.

This article reprinted with permission from the July 2008 issue of Accounting and Financial Planning for Law Firms.  Further reproduction or distribution prohibited.   © July 2008 ALM Publications.

Despite over a decade of widespread discussion of innovation within the corporate environment, innovation within law firms remains a relatively unfamiliar topic. The meaning of the word innovation (often defined as ‘the act of introducing something new’) remains foreign within the context of law firm services, processes, and operations. Very few law firms recognize the opportunities associated with innovation or the market and competitive pressures which will ultimately drive successful firms towards this important business concept. In many ways, innovation represents an untapped opportunity for law firms - the next great frontier for firms looking to expand their businesses and improve their competitive positions.