Thinking Like Your Client: Strategic Planning in Law Firms – A report from ALM Legal Intelligence, October 2012. “LexisNexis has spent the past few years highlighting the difference between the practice of law and the business of law; and the lackluster economic conditions over that same time span have only served to reinforce how important those differences are. Without a doubt, law firms have a thorough and detailed understanding of the practice part; thats their forte. Its the business of law part where shortfalls occur.
- Revenue is the top priority in most strategic plans. Yet, almost half of the respondents are remiss in building, tracking and measuring client loyalty and satisfaction. Are firms overlooking the direct link between revenue and satisfied customers?
- Profitability is the second strategic plan priority. But, fewer than half are actively focused on a non-billable hour strategy, and more than half cant yet tell if AFAs are more profitable than hourly rates. AFAs and various pricing models have been around for a few years; they are not going away. Isnt it time to honestly reexamine the elements that make your firm profitable?
- Talent acquisition/retention holds the third top spot for strategic priorities, although laterals dominate the discussions and, apparently, everyones plans. How sustainable are growth models tied to an on-going musical chairs game of lateral talent shifting from firm to firm? Is anyone focused on a plan for organic growth?”