By Brenda Barnes bio
It’s a common problem for law firm managers: lost sleep over those gnawing concerns about what they “don’t know” about their practice and what they could be doing better. These are some of the top sleep deprivers affecting our clients:
- Growing the top line of business and keeping the competitive edge
- Making sure they have the right people in the right seats
- Staying up with technology so competitors don’t leave them behind
- Turning a cash flow business into a profit-driven business
- Equipping themselves to successfully manage the retirement of essential personnel or rainmakers in the organization
Here’s how to get a handle on these problems so you can get a better night’s sleep:
Top Line Revenue Differentiate what it is you do from all your competitors. You can do this by exceeding your clients’ expectations. The best way to do that? Talk to your clients and customers and listen to their expectations. Know their business. Respond timely. Meet deadlines. Train your staff to think and care for your customers/clients the way you would.
Right People Remember, people show you who they are—so believe them. If you have concerns or see signs regarding appropriate behaviors (Weinstein effect) get them out of your organization as quickly as you can. Your clients also want to know that your law firm keeps only competent professionals and staff servicing their accounts/matters. If you have incompetencies within your staff, identify the problem and invest in effective training. If that does not work, transition them on!
Technology Every company is in the technology business, including law firms. Your firm need not be on the cutting edge, but it certainly should be keeping up. From email encryption, cyber security to cloud hosting, protection of your and your clients’ information should be a number one priority. All firms should have an annual technology audit and training for their employees should occur at least twice per year. Data protection will ultimately help you be more efficient.
Profitability Cash does not mean profit and vice versa. Understand how your Balance Sheet and Profit & Loss Statement are formed. Know your profit margin and how it compares to your competitors and the industry. All managers should have daily, weekly and monthly measurables to keep the pulse on profitability. A grasp of your finances is the first step to exceeding your revenue goals.
Succession Planning Develop a succession plan that encourages your retiring partners to transition the business to the next generation. Ensure your firm can afford the transition by adding financial tools to your belt to help achieve this in more than one way. Involve your major clients in the succession plan as they may be going through a transition themselves!
Conclusion
Developing a plan to address these issues will give you the peace of mind you need to finally get a good night’s sleep!
| Editor’s picks: | ||
 Plan firm’s transition now even if retirement is years away |
 The Office Manager’s Guide to Understanding Financial Data |
Budgeting & Cash Flow Forecasting for Law Firm Administrators |