March 31, 2008
Law Firm Strategic Planning - An Overview Of Models
When some talk of strategic planning, they are talking about retreats and consultants, about mission statements and long term goal setting. Strategic planning can be all of this - however, it doesn't necessarily have to be a complex document that takes weeks or months to develop.
In a more simpler form, strategic planning consists of reviewing the current environment, setting goals to improve it, and implementing them, measuring performance along the way. How you get from "review" to "do" is the focus of several posts this week.
There are several different "models" of strategic plans. Some listed on The Free Management Library include:
- "Basic" Strategic Plan - this is the plan typically implemented in firms that invest in developing a strategic plan;
- Goal-Based Model - this model is more focused on goal setting and performance metrics relating to meeting the goals;
- Alignment Model - this model is targeted to driving the organization to align itself with the firm's mission;
- Scenario Model - this model uses scenarios to help identify strategic issues and goals;
- "Organic" Model - this model focuses on embracing the shared values and evolving the plan through the continual dialogue that will hopefully eventually increase the values that are shared.
74% of the respondents to the 2007 Law Firm Economic Survey from LexisNexis stated they did not have a written strategic plan. However, 89% of those who did plan said that there was a correlation between their plan and income. What is your firm's plan?
For a look at reasons why strategic planning has been a problem for law firms to implement, look at an earlier post on the subject: Law Firms With Strategic Plans More Profitable.
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Filed under Planning by Brian J. Ritchey
Comments on Law Firm Strategic Planning - An Overview Of Models »
Stark County Law Library Blog @ 8:52 am
"Law Firm Strategic Planning - An Overview of Models"…
Posted by Brian J. Ritchey: “When some talk of strategic planning, they are talking about retreats and consultants, about mission…
Robert Bradford @ 8:40 am
You are exactly right! Because the time spent in planning activities isn't billable, law firms need to do strategic planning that is simplified. Compared to other industries, I see very few lawyers in my seminars on strategic planning - but those I do see find the process leads to much greater profitability.
Many of the models you mention simply don't produce the kind of profit increase you should expect when partners spend their time on strategic planning. The most important measure of strategic planning effectiveness are impact on profits and implementation of objectives. A strategic planning process that drives results in those two areas will be an excellent use of time for any sized practice.
Brian J. Ritchey @ 10:33 am
Robert,
Thanks for the comment - I agree that profitability planning is easier to implement and measure. If no other planning is done than setting financial goals and measuring performance, the firm will profit from it.