November 8, 2006
Law Firm Managing Partner Wish List
Over the last several weeks, I have had the opportunity to discuss the results of the Juris Law Firm Economic Survey with managing partners from across the country. Today I will be doing the same in Orlando at a breakfast for managing partners organized by the Central Florida chapter of the ALA.
In addition to financial information, the survey polled participating firms about their financial management priorities. This is a managing partner wish list for better tools to guide the firm. Here are their top wishes:
-
Real-time information for fee earners
-
Report writing systems
-
Budgeting & forecasting
-
Firm management education
-
Benchmarking tools
The top desire for real-time information signals that traditional reports are no longer adequate in today’s high-speed world. Managing partners want actionable information that is instantly digestable and in time to do something about it. The new dashboard technology arriving on the scene is delivering on this need for constant situational awareness.
Likewise, the second wish on their list for better and easier-to-use layperson report writing tools arises from frustration over the value of traditional reports. Partners want timelier information in smaller doses and, preferably, only when their attention or action is needed. They want to control the flow of information according to what is important to them at the time. Delivering all of that is a big deal for software vendors. But the leading business system vendors are in business to address buyer preferences, so some exciting new breakthrough products are hitting the market—for example, the new Active Information from Juris, Inc.
Benchmarking has moved up to the top five wish list, reflecting the growing awareness of managing partners that their firms can ill afford to continue flying blind. They need competitive intelligence. They want to know key financial information from their peer and competitive groups. Surveys that are 12 to 18 months behind the curve aren’t satisfying that need. Thus, we see the rise of new continuous benchmarking services from the likes of Thomson, Redwood Analytics, and Juris.
I would prefer to have seen strategic planning on the partners’ wish list, but I will settle for budgeting and forecasting. I am a big proponent of financial modeling. While detail budgeting at the operations level should be standard procedure, forecasting and testing “what if” scenarios requires a simplified approach. When models become too complex, they can confuse rather than enlighten.
I would also like to have seen “modified compensation plan” on the wish list. All firms need to carefully examine the impact of their current compensation plan on the firm’s collective results. Is your compensation plan a positive influence toward achieving the firm’s goals and objectives, or is it interfering with those goals and objectives?
Finally, I trust that www.morepartnerincome is a helpful stocking stuffer toward fulfilling their wish for more management education.
Morepartnerincome.com is sponsored by Juris, Inc. For information about Juris® products and services for increasing law firm performance and partner income, go to www.Juris.com.
Related posts
Filed under Blog by Tom Collins