The Power of Strategic Planning for Law Firms

I am frequently asked whether a strategic plan really improves law firm performance. As I have encountered many firms without strategic plans that have achieved high levels of success, this is a fair question.

The reality is that the survival instincts and talents of the partners in many law firms are the primary drivers of their success. These firms operate at very high energy levels, emphasize clients and cases, and measure success in mostly economic terms.

As law firms mature, however, it becomes more difficult to compete using a two-dimensional approach. To be consistent winners, law firms need a strategy to identify opportunities that allow for real growth in capacity and capability.

 
Law firm strategic planning is most effective to achieve the following:

• Sustained success in the long term;
• Alignment of leaders and future leaders;
• A basis for choosing between opportunities; and
• A basis for measuring performance.

Education before plan development
While many attorneys agree that a strategic plan could positively impact their firm's performance, they fear that the process of creating a plan will not result in meaningful change. Having read a number of strategic plans that were never implemented, this also seems to be a valid concern. 
 
PerformLaw recommends a process that consists of education before actual plan development.

The main areas of concentration include:

• Marketing and client service
• Attorney development
• Staff development
• Recruiting
• Technology
• Finance
• Succession and transition planning
• Leadership development
• Short and long-term incentives

When partners and other key personnel learn about the various issues and can view the issues from a common frame of reference, they are more likely to produce a meaningful plan. A strategic plan built on a solid understanding of the market-based fundamentals that includes sustainable incentives is more likely to be embraced by the full firm.

It is essential for firms to look beyond the present year and envision the next 1, 3, 5, and even 10 years ahead. While many law firms tend to focus solely on the immediate future, failing to consider their competitiveness in the long run can result in talented young lawyers seeking opportunities elsewhere. By embracing a clear and inspiring vision for the future, a law firm not only communicates to its attorneys and clients that staying onboard can lead to rewarding and prosperous outcomes but also ensures longevity and success in the ever-evolving legal landscape.

If your firm is drifting, it is destined for a version defined by others. Your best people will sense this and seek better opportunities. Creating a strategic plan can help.

Learn more about PerformLaw's Strategic Planning services.