January 18, 2007
Mechanics of Structured Planning for the Law Firm
Mechanics of Structured Planning for the Law FirmRelated posts
Filed under Planning, Subscriber Content by Tom Collins
Mechanics of Structured Planning for the Law FirmFiled under Planning, Subscriber Content by Tom Collins
We know that measurement alone improves performance. But combine measurement with goals and plans to achieve those goals and the whole ball game changes. Planning, goal setting, measuring, and accountability go hand in hand with increased management and teamwork. The resulting culture in such law firms sets those firms and their performance completely apart from those firms who are not similarly engaged.
Yet only about one-fourth of midsized firms report that planning is a key component to their mode of operation. Why should you be one of those? Per-partner income for those firms is twice that of the next best performing 25 percent of firms and seven times that of the lowest performing 25 percent.
What do you need to do to become part of that top performing group?
Doing the above will require adequate management and foster a team culture.
The above per-partner income information comes from the recently published Juris Law Firm Economic Survey of midsized U.S. law firms. For more information or to purchase the publication, go to Juris Survey.
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.
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I mentioned my C drawer in a prior post and promised to write about it in a future post. This is it.
I believe that the most important aspect of time management is what you don’t do. Granted, lawyers serving clients and accountable to ethical rules and calendar mandates face a different problem than most of us. I can’t address that area, but I can talk about the portion of time that managing partners devote to their management duties.
Managing time is more about what you do not do than it is about being efficient at doing things. It is the classic battle of two concepts, effectiveness and efficiency. Effectiveness is more important because it is about doing the right things. Efficiency is about doing things faster even if you are doing the wrong things. Likewise, one of the greatest timesavers around is the word “no”. You have to pick where you invest your time. Saying no when you are asked to volunteer, attend, etc., means that time is still available.
An effective manager takes the time to identify the 4 to 8 main things that the success of their area depends on in relationship to firm-wide goals and objectives. Once you have decided those main things, delegate the responsibility for achieving them to yourself and delegate as much of everything else to everyone else.
Let me get back to the C drawer discussion. If your day is like mine, the mail dropped on your desk is no small task, nor are the e-mail messages that are waiting for you when you arrive in the office and keep pouring in as the day goes on. Don’t forget the faxes and express deliveries that arrive as the day progresses and the folks lined up at your door.
All that stuff is confirmation of Parkinson’s Law—work expands to fill available time. Since time is the most valuable thing you have, you have to constantly fight that natural progression. You have to delegate, ration, and most importantly of all, you have to diligently simplify and eliminate.
The time management technique used by most people involves prioritized to-do’s—dividing them into A’s, B’s and C’s, for example. My point is: C’s do not deserve your time. And for effectiveness, you should not allow anything to be a B. Items are either A’s that deserve your attention or they are not. C’s should go in your C drawer in case they come back later as A’s. However, you will quickly learn that most C’s never rise again, and by ignoring them, you have used your time effectively.
For efficiency, handle everything just one time. That means handling “A” with a no-return policy. Take care of it or solve it; don’t just treat symptoms. Most A’s turn out to be opportunities with a few problems thrown in. Most C’s and would be B’s turn out to be problems that usually get resolved, are of little consequence or seldom reoccur. Excellent managers concentrate on opportunities. They operate on the basis that not all problems deserve to be solved, and of those that do, most don’t need to be solved by them.
Concentrate on the “main things” your success depends on¾that is where the payoff is. That is where increases in per-partner income come from. Those B’s and C’s are for people who major in minors and get great satisfaction from accomplishing tasks of little importance just for the rush of checking something off of their to-do list.
Now, I recognize there is a problem in the above approach. Sometimes your C is someone else’s A. Depending on who they are, it will have to be your “A” too. That is just life. Nothing is perfect.
P. S. You will need to empty your C drawer periodically. Don’t be tempted to revisit the contents. They go in the trash. They have been out of sight for some time. They haven’t come up again. They are not “main” things.
Filed under Management by Tom Collins
Keeping the Law Firm on TrackFiled under Planning, Subscriber Content by Tom Collins
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.
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A leader’s role is to get everyone moving in the same direction. Sub-optimization has everyone pulling in a different direction — their own.
Filed under Firm Culture, Management by Tom Collins
The planning process plays another important role. It is a tool for the firm’s leadership to unify the law firm. With the team on the same track, individual day-to-day decisions begin to move the organization forward in the same direction, i.e., toward the law firm’s agreed upon goals and objectives. I refer to this as “I65 North”.
Filed under Management, Planning by Tom Collins
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