Not long ago, two of the country’s leading law firm consultancies conducted ground-breaking research to identify what highly profitable and fast-growing mid-size firms do that make them so successful. They identified forty mid-size US firms that were significantly out-performing similar firms. They conducted a series of interviews with the leaders and administrators of those firms. Through these in-depth interviews, they identified twelve characteristics that directly contribute to these firms’ success. Using audience polling technology, The Managing Partner Forum then asked 180 managing partners who attended recent MPF Leadership Conferences to grade their firms’ performances in these twelve critical areas.

We’re pleased to share a second set of audience polling results we collected at the ALA (Association of Legal Administrators) Annual Conference in Toronto on May 21, 2014. This session drilled down on strategic planning, including making the case, setting up the process, the ingredients of a good plan and keys to successful implementation.

The bench-marking data in this slide deck is especially relevant to leaders of smaller and mid-size firms as 60% of participating firms had fewer than 50 lawyers. An estimated 225 law firm administrators attended the 60-minute session.

Among the highlights:

• Eighty-four percent (84%) of firm administrators believe a firm-wide strategic plan is an absolute necessity to run a successful law firm in today’s environment.
• Yet, only forty-one percent (41%) reported that their firms have a firm-wide strategic plan. Twenty-nine percent (29%) said their firms were working on one.
• On implementation, seventy percent (70%) graded their firms a “C” or below. Why the struggle? Too many ill-defined goals, often coupled with a lack of leadership and little accountability.
• Among firms without a plan, the top three reasons were: 1) Firm leaders don’t see the need. 2) Leaders see the need, but can’t convince the others. 3) We’re too busy.

In today’s highly competitive and rapidly changing market, law firms must develop and implement firm-wide strategic plans if they want to thrive, prosper and get where they want to go. Absent a plan, any path will take you there.

We presented a 90-minute session at the ALA (Association of Legal Administrators) Annual Conference in Toronto on May 20th with about 200 law firm administrators in attendance. As part of the session, we used audience polling technology to survey participants on a myriad of issues relating to the business side of running their law firms. Firms ranged in size from 10-1,000 lawyers, with most in the 25- to 150-lawyer range. Among the highlights:

• Firm administrators, generally, said their firms provide great client service, yet 61% never bother to ask for client feedback. In fact, fewer than 20% said they solicit client feedback on a regular basis.
• Forty-one percent said their firms had a firm-wide strategic plan, with another 27% working on one. Of those with a plan, most gave their firms poor marks on successful implementation. Planning without implementation is a colossal waste of time, effort and energy.
• When it comes to dealing with difficult issues, not one firm administrator gave his/her firm a “10.” Most gave their firms poor grades in this very important area.
• Sixty-three percent said their firms had two-tiered partnership structures, with another 10% putting one in place.

There’s some great bench-marking data here that you and your partners need to know. We suggest that you use it to inform (and perhaps persuade) the skeptics and nay-sayers at your firm about the importance of running the place more like a business…with goals, a plan, team-work and accountability.

We believe that every law firm, regardless of size and practice mix, should have a firm-wide strategic plan. The plan should set forth where the firm will be in five years and the initiatives it will implement to get there. For successful implementation, the plan should be short, realistic and achievable. Strong and effective leadership is also required. This brief interview was conducted on March 31, 2014 and includes discussion about:

• Why your firm needs a plan to remain viable and competitive,
• Why change is required to maintain and improve profitability and productivity,
• How to get the strategic planning process underway at your firm,
• The keys to successful implementation,
• How planning improves the firm’s bottom line,
• Recommendations for solos and smaller firms, and
• The characteristics of a good law firm strategic plan.

This recorded session will be invaluable to you if your firm is considering strategic planning for the first time, or if you’ve been struggling with implementation. We encourage you to share it with your partners and/or your management/executive committee and discuss at one its upcoming meetings.