This seven part podcast series is aimed at Managing Partners and smaller law firm owners. Topics include: Growth strategies, from solo to firm, managing growth, becoming more profitable, leadership, and succession planning.
If you are focused on the business of law, in other words, growing your practice or firm, I’ve introduced a podcast series you won’t want to miss. Law- It’s a Business. Each month I look at another angle of the business of law and provide proven and practical strategies aimed at helping you grow. Click on the play button below to watch.
Measure everything. Everything!
KPI’s (Key Performance Indicators). What are they? The name pretty much speaks for itself. What are they for you? How do you use them to help you grow and become more profitable?
Consider these as some starting points in figuring out your KPI’s: Individual performance, team performance, performance improvement, (especially after a staff review or implementing a new system or policy), productivity, profitability of files, profitability of each practice area, hours spent generating the work, vs. revenues generated, your time invested, your people’s time invested, basically any and all investments you make in growing your firm.
How else will you know if what you are doing is working?
Then…If it’s working, first, understand why? Then do more of it and look for similar strategies.
If it’s not working, again, understand why? Then stop it immediately and anything else like it. Take the time and money from the under performing areas and re-allocate it to the areas that are working.
Growing your firm is not simply about getting more clients. It’s also about getting your marketing and business development strategies right-with pin-point accuracy.
Whether you are growing beyond solo practice to creating a firm, a partner growing your team, or a managing partner growing your firm, this simple formula can help you navigate the way forward with respect to growth and staffing.
It’s far too common for lawyers to wait until they are at maximum capacity and beyond to bring in help. Managing growth is a good problem to have, however, it does pose new challenges.
So here it is. When you are at about 60% capacity, start looking to recruit. That gives you the luxury of time to find the right people. You can be selective and not panic. You can take your time to find the right people and fit. And, that way, by the time you are at 80% capacity, you will still have time to groom, mentor, train, and get your people up to speed before you hit your wall.
If you wait until later, you may, as is often the case, find yourself in a never-ending cycle of chicken and egg. Where is the time to train? Who do you bring on? “Oh, I might as well just do it myself-even though that means long nights and weekends.” Think forward. don’t get caught thinking I can’t afford to bring someone in right now. Can you afford not to?
Sure, there are many other factors here: Letting go of the reigns, quality control, consistency, profitability. But they are all better managed when you are proactive and plan ahead. Think forward!
If you are an owner or managing partner of a firm, do the math. One rainmaker (you), or all, (your entire team)?
If you are the only one bringing in clients, there are limitations to your time, energy and focus. Whereas, if you get your entire team engaged in business development, or bringing in clients, the opportunities for growth are far greater.
So how do you go from a ‘one-person show’, (you are the only rainmaker), to getting your entire team out there growing your firm?
- Get the right people on your team-that starts with hiring.
- Establish the ‘new way’ with your new people-leverage the competitive nature to encourage your current people to step up.
- Give your people the support and learning opportunities to develop new skills-that starts with investing in them.
- Reward this new behavior-create a comprehensive bonus structure, somewhat like ‘profit-sharing’ to reward your people when they succeed.
- Tell the whole world about your firm and your approach-this will help you to continue to attract the very best and brightest.
When you go from one ‘rainmaker’ to an entire team of rainmakers, watch your firm grow.
Recently I’ve had multiple clients experiencing staffing issues. This can be very frustrating when you are trying to provide your clients with the very best service. Not to mention the time, energy and focus it can take away from higher-level issues; strategy, growth, and your longer term view.
Before we talk about goodbye, here are a couple of tips to ensure you are doing your best as a leader to give your people every chance to succeed.
- First, to repeat what I’ve said before, be clear with specific direction when you are delegating any task, even if it has been performed before.
- Provide regular feedback, both constructive and positive. Don’t wait for the ‘yearly review’, do this consistently.
- When they get it right, make sure they know.
- Give them the tools, training, support and encouragement to support their growth.
But let me be clear. When you have done everything you can do to support their success, and they still don’t measure up, you are both better off moving on. Obviously this is not the right position or place for them. By keeping them on at this point you are lowering the bar and setting a very bad example for the rest of your team. You’ve done your best. Now it’s time to say goodbye and find the right person to invest your time and energy into.