Successful Law Firms: What Does it Take?
Charlie Miller is a close friend of mine here in Dallas. Last year he conducted a webinar for lawyers I coach titled: "The Voice of the Client." He also did a podcast interview for me which you can find on iTunes.
Charlie consented to my request to share his list: “10 Characteristics of Successful Law Firms” with you.
- Have a comprehensive business plan (“play book”) and review and update the business plan on an ongoing basis.
- The client comes first. Without clients, there is no reason for a law firm to exist.
- Sell solutions ("provide value") to clients, not sell time as expressed in billable hours.
- Manage client expectations on a daily basis.
- Utilize Rigorous Financial Management for all client assignments. Prepare budgets for each matter: tasks, events, timing and resources to be used for the benefit of the client. This requires early analysis and client signoff.
- Inventory is not "billable hours," it is the cash those hours represent, and they focus on collecting accounts receivable and maintain a high realization rate.
- Practice effective cash flow management by getting funds into the bank as quickly as possible.
- Recognize that technology—emails, blogs, cell phones and voice mail—cannot replace personal relationships, personal integrity, and rapport with clients. (Note: I would have added social media)
- Value and reward “Team Effort” aligned with a pre-determined Strategy.
- Have in place a disaster plan and a management succession plan and keep them current. Business survival and succession cannot be left to chance.
Charlie's ideas are right on target. Is your firm doing the things he suggests?
Great article and valuable list. I particularly like point #3. Billable hours is for administrative and operational matters. It's a term that services the needs of the firm. But the company's mission and marketing should be client-centric. It should reflect the needs of the client.