November 29, 2005
A Law Firm Closer to Flintstone than NASA
Young law firms sometimes try to get by on a shoestring and get caught in Flintstone as they grow. One day the partners wake up and realize that they are doing things the hard way and are losing money in the process.
One of our client services people visited a firm recently that characterizes their own use of technology as closer to Flintstone than NASA. In spite of their growth, the firm still wrote checks by hand. A/R was on a spreadsheet. Vendor bills were paid as soon as received because it was the only way they could keep up with bills and clients’ expenses. There were no management reports. Everything went to an outside accountant who prepared tax returns that doubled as financial statements.
A lot of money was falling through the cracks. Staying in Flintstone wasn’t so much a matter of money as it was the lack of time to address the needs of the law firm. The partners were too busy being accidentally successful. Still, they knew they were pushing their luck. They needed better control, management information and systems in place that would improve productivity and prospects for long team success.
The message to be learned from this real life experience is a simple one - don’t push your luck. Don’t count on being accidentally successful! Invest in a law firm business system for a healthy and profitable law firm. The right system isn’t an expense. The right system makes money for the partners.
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