March 22, 2007

Improve Law Firm Performance by Understanding How You Perform Best

10:09 am

First, capitalize on your strengths!  Why?  answered that question this way:  “It takes far more energy to improve from incompetence to mediocrity than to improve from first-rate performance to excellence.” 

 

As an individual, or for an organization, the greatest success will come from capitalizing on strengths rather than through efforts to overcome weaknesses.  Likewise, success is greatest by pursuing opportunities rather than solving problems.  Knowing oneself—understanding your strengths—is the first step toward career success, optimum income, and wealth accumulation.

 

In writing about Managing Oneself,  Drucker places a great deal of importance on the need, particularly for knowledge works, to understand “how you perform” best.

 

Are you a reader or listener? Fail to understand which you are and then relying on the wrong one and you will not perform or achieve excellence.  Drucker points to Dwight Eisenhower who learned by reading and excelled as Supreme Commander of Allied forces in Europe when supplied with written briefs.  But when he stepped into a new roll as President and attempted to follow the oral briefing methods of Truman and Roosevelt, both listeners, he appeared ill-prepared and equipped in front of the Press. The opposite was true of Lyndon Johnson, a listener, who inherited his predecessor’s staff.  Kennedy was a reader. Johnson never effectively absorbed written briefs.

 

Some of us (I’m one and you could also be) do not learn by either reading or listening.  We learn by writing. As it was for Churchill and Beethoven; neither reading nor listening is enough.  I must write about it to learn.  I must write about it to develop the idea or craft the strategy, the solution, the transaction, the opportunity, etc. We are sometimes mislabeled as people who have to “sleep on it”.  We make our best and most creative decisions after we have found a quiet corner and written about it. 

 

Just as listening and reading are not enough for writers, there are those who learn by hearing themselves talk. They need people in the room listening to their ideas and explorations.  Drucker, himself a talker, says that learning through talking is by no means unusual and notes that successful trial lawyers are often talk learners.

 

There is no right method.  There is no wrong method.  Which ever you are is your strength, not your weakness. Try to be what you are not, and you greatly reduce you effectiveness.  Once you have your own answer, tell others.  When those you work with understand how you “perform best,” the collaborative results are improved.  That, of course, means that next you should determine how others around you “perform best”.  Who are the readers and listeners? Who are the writers and talkers?  Understanding each other improves team results.

 

You can download a copy of ’s 1999 article Managing Oneself from the web site of the National Legal Aid & Defender Association.

 

Morepartnerincome.com is sponsored by , Inc.  For information about ® products and services for increasing law and partner income, go to www.Juris.com.

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January 31, 2007

Customer Care by the Law Firm

10:51 am

I was reading a paper reporting on ’s ideas for improving a law firm’s client services.  The opening salvo read “The first step is to care about your clients”. 

 

You can follow checklist after checklist, but if you do not have a culture of caring about your clients, you can never touch the benefits that fall to those that achieve excellence in the eyes of their clients. 

 

Tom Peters made it clear in A Passion for Excellence.  You don’t determine what excellence is or when or if you achieve it.  Excellence must be earned through the eyes of those who judge you, and the most important judge of all is the customer—the law firm’s clients.  Peters and his co-author Nancy Austin gave us the model for excellence in that 1985 book.

Achieving excellence in the eyes of your clients takes people who care about their clients, and once you achieve it, you can only hold onto it through constant innovation.  All of that takes .  It takes an organization with a common set of beliefs—a culture in pursuit of excellence. 

 

Your customers judge you based on more than your legal skills.  They judge you by how they are treated by every single member of the law firm who touches them directly or indirectly. You are judged by the quality of every act and every output of every member of your law firm that reaches your clients.

 

I was always struck by ’s explanation that the only sound strategy is the pursuit of excellence; anything else is merely competent, and that leads to marginal.

 

 

PS: 's web site and his separate blog are important information sources for .

 

Morepartnerincome.com is sponsored by , Inc.  For information about ® products and services for increasing law and partner income, go to www.Juris.com.

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June 23, 2006

Is Law Firm Branding Worth the Effort?

10:37 am

Among the discussions during the June ALM Law Firm Business Forum was the emphasis on branding.  

 

The topic crept into presentation after presentation, including those that would otherwise appear completely unrelated. It arose time and again as essential to law firm —long-term success. It also arose as an expression that can no longer depend solely on ineffective attorney rainmaking. And finally, it appeared as a strategy to entrench the firm’s culture and . I was impressed by the faculty's understanding that “who we are” makes a difference.

 

Angelo A. Paparelli of Paparelli & Partners said it this way: “Branding can become a self-fulfilling phenomenon. The more a firm succeeds in establishing a distinctive brand, the more probable it is that like-minded will apply for employment with the firm, and that clients who want or need a particular type of branded legal services will search out the firm for help.”

 

I was also intrigued by a case study reported by the faculty that illustrates how slippery the branding slope can be. A particular law firm was undergoing a branding program to make sure that the brand clearly communicates the firm’s value proposition. The firm’s current website emphasizes the firm’s courtroom successes. But when targeted were surveyed, those indicated that winding up in court was considered a failure. Potential clients valued quick resolution of issues over successful court trials.

 

The reported case is an example of what called the “wrong quality”—when we get so caught up in what we are technically capable of doing that we build products and services that are out of synch with what the marketplace wants to buy. It is also reminiscent of a prior post, “Too Good, Too Expensive and Too Inconvenient."

 

Defining "branding" isn’t easy. I would define it as matching your unique qualities with problems that your defined market wants to solve and then finding a way to convey that through image and style. Branding also involves deciding what you are not and the business you will not pursue.

 

  • The first step is to define your strengths
  • Second, match those strengths with problems the want solved
  • Next, define your market as narrowly as practical with an eye toward market
  • Lastly, invent a way to combine your strengths, the market you are addressing, and the benefits your customers will realize into a “brand”—a combination of the visual, audio, print and style that conveys that message.

 

It is not an easy task, but for more partner income it is one worth pursuing

 

Morepartnerincome.com is sponsored by , Inc. For information about ® products and services for increasing law and partner income, go to www.Juris.com.

 

 

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May 12, 2006

Eight Key Result Areas for Law Firms

10:35 am

identified the eight areas that every business must address through its objectives and control systems. The eight key result areas are:

1. Customer Satisfaction

2.

3. Innovation

4. Resources

5. Management Development and Performance

6. Employee Attitude and Performance

7. Public Responsibility

8.

The excellent law firm will set key result goals for each of these areas. It will develop strategies and tactics to achieve its goals. It it will develop methods for measuring actual results against the goals with an of making additional changes as needed to achieve and maintain its goals.

Morepartnerincome.com is sponsored by , Inc. For information about ® products and services for increasing law and partner income, go to www.Juris.com.
 

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May 4, 2006

Law Firm Services: Too good, too expensive, and too inconvenient

11:05 am

Here is a lesson worth learning. According to the , Clayton Christensen, a Harvard Business School professor, has hypostatized that most organizations make products that are too good, too expensive, and too inconvenient for many customers.

recognized the same tendency in discussing the weakness that market leaders invariably develop over time. They continue to add features to satisfy marginal segments of the market, opening the opportunity for a competitor to enter the market at 20% of the cost with a product that satisfies 80% of the market.

What is important for the law firm is that this tendency isn’t limited to tangible products. Services are susceptible to the same condition. I should add that the reference to “too good” doesn’t refer to quality, but instead addresses the tendency of products to become “over-featured”. For the law firm, this is the equivalent of “over-lawyering”—applying complex solutions to simple situations.

Granted, there are times and issues where law firm clients want their to pull out all the stops. However, the majority of clients, business and non-business types, view their law firm experience as too inconvenient, overly complex, excessively lawyered, and too expensive. We hear the same mantra over and over again from law firm business clients: “We want a law firm concerned about lowering our legal cost.”

Clients are not looking for services at a cheaper price. They are looking for services appropriate to the situation, services that cost no more that the situation requires. Of course, they also want a court system that is faster, convenient, and predictable. They want a tax system that is simpler. They want less regulation. Unfortunately, we are never going to get back to just 10 Commandments, but that doesn’t stop the customers for legal services from wishing for simpler times. It is the very complexity of our legal systems that creates the demand for law firm services. Nevertheless, never forget that those same clients come to you to make things less complex, less inconvenient, and less expensive!

If you accept our Harvard professor's theory, then face opportunities and risks that are merely different sides of the same coin. can reap significant rewards if they make the solution to the customer’s legal needs simpler, less expensive, and easier for people to get. They risk losing business to providers (including alternatives to the law firm) who invent convenient, simple, and less expensive solutions. Look at TurboTax for a perfect example.

It is all about innovation and reinvention. Clayton Christensen calls it “disruptive innovation” and suggests that there are three key strategies:

  • Make it easier and simpler for people to get what they need
  • Provide good enough solutions to those with low-end requirements and risk
  • Remove barriers to consumption

If you are looking for a breakthrough growth strategy, start brainstorming about these three strategic directions. For example, what are the barriers to consumption? What keeps clients from being able to solve their own needs? What keeps people and businesses from seeking legal advice and services? What tactics could your law firm use to remove those barriers among its targeted clients? There are fortunes to be made by those who invent solutions to those barriers.

Morepartnerincome.com is sponsored by , Inc. For information about ® products and services for increasing law and partner income, go to www.Juris.com.

 

 

 

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February 6, 2006

Importance of Market Position for Law Firms

11:46 am

Some time ago I wrote a piece relating the importance of a law firm’s local target market for strategic planning. A short-term competitive advantage is required to achieve market dominance which, in turn, becomes the firm’s long term competitive advantage. Management experts including my favorite, the late , would say become one of the two top three or get out of the business.

In today’s environment, a tightly drawn market is required for a mid-sized law firm to achieve and maintain market or dominance. Expansive markets have too many players to develop business strategies or to achieve a competitive advantage. What makes this exciting and opportunistic is that you get to define the market and then go after it. That is the essence of strategic thinking and planning. Most mid-sized will start with a geographic market limitation, either a metropolitan area or a regional area, then overlay additional limits on that . For example, a firm targeting the Southeast might further focus on the timber rights for the lumber industry. Even that is not enough for the interloper who might zero in even more narrowly on environmental issues related to harvesting lumber under timber rights agreements. A firm focusing on entertainment might zero in on music and even a particular style such as gospel. Another firm might gain its reputation among songwriters in the Nashville, Tennessee, music industry.

Edward Wesemann, the author of Creating Dominance: Strategies for , explains that a firm that establishes a level of dominance in even a small niche marketplace has an incredible advantage. A firm dominant in one area of practice is viewed as a boutique—the specialist for that particular segment of the market. Firms that have two or more dominated areas are viewed by the marketplace as dominant in all of their areas of practice. The dominated areas drive unrelated high value business to the firm.

Dominant firms get the best work and enjoy better fees. As Wesemann notes, once a firm acquires a market leader reputation, that reputation gains a life of its own. Dominance in anything is better than dominance in nothing. Of course, since you can define your market, it makes sense to select one that is growing and values legal services. For that, you need to look into the future, considering social, economic, demographic, industrial, and other trends. What opportunities, for example, are offered by the aging population of the U.S. or other changes around us that are reshaping our world?

Morepartnerincome.com is sponsored by , Inc. For information about ® products and services for increasing law and partner income, go to www.Juris.com.

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January 24, 2006

Making a Law Firm Memorable with Logos and Names

11:42 am

Logos have been the hot topic for the last couple of weeks. In Search of the Perfect Client Services weighed in on Sunday continuing the dialogue among Dan Hull on his What About Clients?, Tom Kane in his Legal Market Blog, and numerous other bloggers as cited in one or more of the above three posts.

 

Logos and name recognition are closely related.  I think the best logo is a stylized presentation of an organization’s name.  That is tough to do if a law firm name consists of a never-ending string of partner names.  Do you ever stop to think why these names work: Jones Day, Skadden Arps, etc?  What about Morrison & Foerster, who have somehow turned themselves into “MoFo”.  The above names or ”handles” are short and memorable.  The idea behind a logo is to create a mental and verbal image to help consumers recognize a company's products. 

 

When it comes to a law firm, name recognition has to be targeted.  Pursuing a niche market is a strategy for gaining dominance—something that experts like would say is required for long term survival. A visual or verbal image is a useful tactic for making your law firm memorable to your “” market—be it a graphical logo, a short name or a nickname.

 

As Ed Wesemann’s would say “A dominate firm that no one has heard of is an oxymoron.”  If you want to be the dominate leader in a niche market, make sure that within that niche your firm’s “handle” comes easily to your targeted prospect’s mind when they have a need for the services you offer.  Make yourself memorable.

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August 29, 2005

Key Challenges to Achieve Law Firm Growth

10:55 am
The 2005 Survey of Law Firm conducted by , Inc. and the Managing identified three key challenges that firms face to achieve their growth objectives. While growth may not be so hard to achieve, we believe that profitable growth in terms of increasing profits per equity partner while growing fee revenue will be more difficult to realize in today’s climate without thoughtful is more than saying “we want to grow” or “we want every partner to make a million dollars a year.”  Those are objectives.  The in war is to win.  But that’s not the .  The is the methodology to achieve the .  Big difference.  Here’s what has to say on the subject:
 
is the continuous process of making present entrepreneurial (risk-taking) decisions systematically and with the greatest knowledge of their futurity; organizing systematically the efforts needed to carry out these decisions; and measuring the results of these decisions against the expectations through organized systematic feedback.”
 
Drucker also believes that the fundamental and most critical role of management is strategy…determining strategy and ensuring that the organization is aligned and has the resources and systems and processes to execute the plan.  Anything else not consistent with management’s strategic imperative should be delegated.  In other words, if somebody else can do it then it’s not the job of the chief executive.
 
The three challenges include:
  • Planning
  • Management
  • Outsourcing
 Each of these will be covered in detail in subsequent postings.

 

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August 11, 2005

Management Judo in the Law Firm

11:02 am
Management Judo is a concept taken from ’s work. I have previously passed along that most of the management concepts that I live by and that have become an integral part of our business culture were invented by others. We proved them sound in the real world. They have served us well!
 
Management Judo is the notion of using your competitors’ own strength against them. Actually, it might be better to say that the stronger competitor is likely to develop weaknesses that you can exploit to your competitive advantage.
 
Drucker identified those weaknesses that the superior competitor is likely to develop:
 
Ø    A "not invented here" attitude is likely to make the competitor slow to take advantage of new technology or methods.
Ø   The "Creamer" concentrates too long on the higher profit upper end of the market, leaving the door open to enter the market through the lower end.
Ø   Failure to stay in touch is likely to result in the company emphasizing its idea of quality or features ("Wrong Quality") leaving the customer’s real wants unsatisfied.
Ø   The "Maximizer" keeps adding to satisfy added market elements, leaving the door open for the niche company that will provide a simpler or lower cost product or service that just addresses the needs of a particular market segment.
 
Drucker’s is universal but you do have to put them in the context of your particular firm in relationship to your current competitors and the competitors in a market you desire to enter. Their weaknesses are the key for opening the door for a competitive advantage that lets you grow your firm at their expense.
 
Ø   Take advantage of the technology or new methods that they are ignoring.
Ø   Shape and price services that appeal to the market they consider too small and work your way up rather than go head to head.
Ø   Find out what their customers really want and offer it versus the competitor’s wrong quality. You may be surprised to learn that they would just like to have their phone calls returned. But they are more likely to want “no more surprises."  If their customers really want certainty of price, give it to them. If they want certainty of results, market your settlement and resolution skills. If they want participation in the decision processes, design it into your services.
Ø   Sometimes less is more. All-in-one legal services can be like a Swiss Army knife. The real tool always works better. If you can’t beat them at everything, beat them at selected specialized things.

 

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May 13, 2005

Is your firm overselling itself?

11:16 am

In the INTERACTION section of the May 2005 Corporate Legal Times, Nat Slavin tells readers, "Don't Be Fooled by Law Firm Hype".

Slavan writes, “…the most important question is the one that you should be asking yourself: Is the firm overselling itself? Most likely the answer is yes.  of all sizes are under intense pressure to create a one-stop shop for their clients. And they will do anything to portray themselves as such.”
This is another bit of evidence that there are two certainties in life and business - change is constant and we are always judged by others. His comments also reflect a natural tendency of your competitors to develop the Maximizer Weakness that anticipates. The maximizer law firm tries to specialize in so many different that its operating cost becomes too high and its expertise too low compared to more narrowly focused . 
It also validates the Rule of the Fewest that I will discuss in a few days. Here is the rub. You can’t try to be good at everything without becoming just competent in a lot of things. When you try to promote your firm as a “one-stop shop”, experienced consumers of legal services (corporate counsels) see right through it and your credibility takes a dive.
Slavan's basic message is that bigger isn’t better. Contrary to the one-stop shop image, want to portray, there is a long history of specialization in this profession.  It is the rare firm that can be the perfect fit for every need. Acquisitions and expansions aren’t always good. Don’t believe the hype! Ask concrete questions about the law firm’s experience and successes dealing in the new area of corporate need. If you can’t get the answers, then go hire the firm down the street. 
Your law firm has to pick its areas of concentration and those areas have to be limited. They need to be the right areas (in demand, profitable, etc.). You can add and drop areas based on emerging opportunities and changing trends but you risk your core business if you try to be all things.
Excellent concentrate. They practice the rule of the fewest. They know the where they can deliver superior value to clients and they know when to recommend other excellent . You build your relationship when you place the client’s interest above those of the law firm. That is delivering superior value that will keep you in the ballgame and will have the corporate world recommending your firm. 
 

 

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