Is your compensation system driving away the talent you need to grow? What approach did your firm take when establishing its partner compensation plan? It's likely you chose one of the three traditional systems. There's the old "eat what you kill" method, which is based on individual performance; the seniority/lockstep system, which is determined by the partner's role in the … [Read more...] about How to pay the partners
Increasing profits
Want to jump ahead of the competition? Get everybody aiming for the same thing
No matter what the business, the winning players are always organizations with a motivated and productive workforce. And what maintains motivation and productivity is goals—plus mentoring, coaching, and training to help everybody achieve them. Workable goals admittedly take thought, planning, and a lot of follow-up, says business development and management consultant John … [Read more...] about Want to jump ahead of the competition? Get everybody aiming for the same thing
Keep your accounts receivable young
Collection work is something that can't wait, because a dollar of receivables doesn't stay a dollar for long. The dollar the office bills this month will be worth only 50 cents six months from now. In a year, it will be worth no more than 23 cents and probably more in the range of 19 to 20 cents. After two years, a 5-cent recovery is about the best any office can expect. Much … [Read more...] about Keep your accounts receivable young
Why budgeting and cash flow forecasting are essential for effective law office management
Regardless of your opinion of budgets, they are vital for building and managing a law practice, says Brenda Barnes, a certified public accountant (CPA) and managing principal of B2 Management and Consulting LLC. She adds that while lawyers often don't appreciate or pay attention to budgets, they are critical to financial planning within your firm. The benefits of a budget … [Read more...] about Why budgeting and cash flow forecasting are essential for effective law office management
How to reduce the risk of in-office theft
Theft in law firms comes from all corners, from staff to partners. "It happens more than people realize," says legal management consultant John W. Olmstead, MBA, Ph.D, CMC. In fact, his own experience of working with law firms leads him to estimate that one in nine firms has experienced some type of theft. Every firm needs theft protection. But that protection needs to do … [Read more...] about How to reduce the risk of in-office theft
Job descriptions make paralegals a profit center
A Phoenix firm realized its paralegal force was not paying for itself in billings. Instead, the group was not only unsupervised but was being given a lot of non-billable work assignments,. In response, the firm set billing requirements, drew up a paralegal job description, and, to encourage its paralegals to exceed the minimum, developed an objective bonus system. Along with … [Read more...] about Job descriptions make paralegals a profit center
Cutting costs? What worked in 2008 won’t work today
When money is tight, firm administrators start rushing to make decisions to save the bottom line, perhaps relying on strategies that saw the firm through the recession. But hold on, cautions Peter A. Giuliani of Smock Law Firm Consultants in Weston, CT. These decisions have to be made with long-term survival in mind. And the cost-cutting approaches that worked for firms during … [Read more...] about Cutting costs? What worked in 2008 won’t work today
How one California law firm regained its corporate culture and improved business
How do you grow your firm and still maintain a close-knit team? Jason Pink, Administrator of Gianelli & Associates in Modesto, California, tells how their firm handled it. We're a small, but busy, 9-attorney law firm. When we outgrew the 6,500 square foot building we were in, we added an annex at the next door building. We moved three attorneys and a few staff over there. … [Read more...] about How one California law firm regained its corporate culture and improved business
5 tactics to try at the next trade show to bring in new business
It's inexpensive. It hits the exact market the firm wants to target. And it provides face-to-face contact with potential clients. It's the trade show exhibit. It's a small investment with a good return says Linda Bishop of Thought Transformation, an Atlanta sales and marketing firm. As a trade show exhibitor, an attorney can reach several hundred people who have direct … [Read more...] about 5 tactics to try at the next trade show to bring in new business
To see better profits, look harder at where money starts and ends
Profit doesn't happen without a prod. Particularly in a tight financial environment, a firm has to know where its money is coming in and going out. It also "has to be nimble and on top of what's going on," because the supply, the demand, and the acceptable price of legal work is constantly changing, says Bob Henderson, of RJH Consulting, a business consulting group for small … [Read more...] about To see better profits, look harder at where money starts and ends