Most Law Firms Have No Strategic Plan
My colleague John Remsen, Jr. of Atlanta, conducted a survey of 110 law firms, asking if they had a written firm-wide strategic plan. Over 80% reported that they do not have one. "Yet, several recent surveys have found that the overwhelming majority of law firms that do have a firm-wide strategic plan can attribute improved profitability as a direct result. Naturally, I strongly recommend that every law firm develop and follow a written strategic plan. If implemented, they result in higher profits per partner," Remsen said. I concur.
Does Your Law Firm Have a Written Strategic Plan?
I have discovered the same phenomenon at the law firms that I consult with: there's no overall plan, no strategic plan and sometimes not even a printout of the firm's top clients. These firms tend to have a difficult time getting their lawyers active in bringing in new business. Often the reason the firm called me in was to help them develop a strategic plan, meet with the lawyers to develop individual marketing plans, and get the business development activity started.
On the other hand, I'm advising a law firm right now that has a 42.5% profit margin and pays their partners an average of $550,000. Over the last six years overall firm revenue have grown 45% and income per partner has grown 22%. Guess what they have? That's right: a written strategic plan that is an inch thick and features team analyses of each practice, domestic and overseas growth potential and use of technology.
What a difference a plan makes.
