January 12, 2006
Minimizing Sub-Optimization Within the Law Firm
It happens in every law firm. The tail has a tendency to wag the dog. It is called Sub-optimization and it cuts into partner income.
Sub-optimization is when the interest of certain departments or individuals drives actions and decisions rather than the goals and objectives of the organization as a whole. It is as if the organization chart has been turned upside down.
I hesitate to tell you how often I have spoken before groups of law firm accounting or administrative personnel and had someone in the audience remark, “We don’t want our lawyers to know they can do that.” That confession is sometimes followed by a chorus of support from a portion of the audience. Their interest in maintaining their work routine without disruption was in control of their actions. They would withhold information about tools and capabilities already available to you through your existing law office business systems because your use of those tools might disrupt their established routine.
Sub-optimization is a naturally occurring tendency in any organization. Sub-optimization is most intense when the organization fails to effectively communicate the goals and objectives of the entire organization. It is lowest when the organization has communicated each area’s role in pursuing those objectives. People need to know where the organization is going and how they are expected to contribute to that journey.
The law firm needs to be one team pursuing common goals with a common set of core beliefs.
Surveys indicate that less than 16% of all law firms have a written strategic plan. That does not mean that the partners do not have a consensus about the direction and goals of the firm. Partners meet frequently, and while some disagreements may exist, there is considerable unity among partners about where they want the firm to go, how they want the firm’s clients to feel about the law firm, and the efficiency and effectiveness of the law firm as a team.
If your firm doesn’t have a formal plan that can be communicated to the firm’s team, work with the other partners to fashion a statement of direction and expectations for how the law firm wants to be perceived by its clients and others. Document and communicate throughout the firm, how each area is expected to contribute to the accomplishment of that road map to the firm’s future. When you do so, you give your administrative team and your associates a good feeling about their job and how their performance contributes to the firm’s goals and mission.
Related posts
Filed under Management, Planning by Tom Collins