The billing process is one of the key pillars of law firm success with impacts on financial and organizational health. It drives the performance of multiple important KPIs: cash flow (liquidity), A/R turnaround, billing and collection rates, and overall profitability.
This is the third part of our Practice Planning series. To catch up on the other parts , click on the following links:
PART 3: PUTTING IT ALL TOGETHER - HOW WE DO IT!
Performlaw’s practice plan engagements focus on the development of systems to maximize income-generating and strategic time investments. These engagements are aimed at creating high-performance lawyers who positively impact the culture of the firm.
For most lawyers, the first 10 years of a developing a legal practice defines the next 20. While developing marketable skills and practice area knowledge, lawyers are also managing their income needs and personal commitments. All of these factors influence the future of a lawyer's practice. When these factors conflict with one another, they can create stress and unintended outcomes. Also having a significant impact on a lawyer’s career is his or her ability and willingness to take risks.
Practice planning is a process of organizing and prioritizing an individual lawyer’s billable and non-billable time investments. Each practice plan considers the firm’s needs and performance expectations along with the individual lawyer’s ability to meet these expectations. Usually, a lawyer’s first five years of practicing are heavily influenced by law firm members, whereas afterward, it becomes a mix of firm opportunities and personal choices.
Looking at the big picture of legal marketing and client relationship management, there are 3 major phases involved in adopting an enterprise marketing system. These 3 phases that will be reviewed include: