Walker Clark
Worldview Archives
Are traditional law firm networks obsolete?
A number of our law firm clients have asked whether they should try to join a law firm network.
Our answer usually is “it depends.”
Debunking the Cult of the Rainmaker
Too many law firms sacrifice too many opportunities and too much human capital as they worship before the idol of the rainmaker.
Priorities, Low-Hanging Fruit, and Risks
One of the most intriguing and sometimes most frustrating issues in strategic planning often arises when a law firm's leaders consider the question "What should we work on first?"
Among all of the attractive strategic goals that we have set for ourselves, which ones should receive the most immediate priority in terms of our management attention, resources, and action?
Knowledge Management: The Bottom Line(s)
Is "knowledge management" worth the investment?
Even now, well into the 21st century, I frequently hear this question from managing partners, practice group leaders, and other fee earners, especially those in smaller law firms with limited resources to invest in technology.
When does “professional courtesy" become “free advice?”
Law firms can lose a lot of money on what should be profitable client relationships by providing too many services "off the clock." This phenomenon usually arises when a partner repeatedly provides advice as a "professional courtesy" or as a "client relations" activity, rather than charging a fee.
Social Media: a Two-Edged Sword
Although there are a limited number of situations in which social media can be a useful part of a law firm's marketing tactics, social media also present serious risks for managing partners and other prominent lawyers whose firms depend on their market presence and reputation.
In short, social media can make you look ignorant, intellectually eccentric, or just plain silly.
The Vortex Just Over the Horizon: Strategy, Succession, and Governance
Most of these firms are midsize firms (for their respective markets) that have enjoyed fast growth and financial success over the past 15 to 20 years. Their partners feel, with considerable justification, that they "are at the top of their games."
As these same partners look into the middle distance of 2020 to 2025, the most perceptive of them see serious problems ahead. Another of our clients recently referred to this as "our vortex — a place just over the horizon were several forces could come together in a way that could put in jeopardy everything that we have achieved and maybe even sink us."
Does your law firm have an associate retention plan?
Recruiting good associates into a law firm is difficult enough. Keeping the good ones is even harder.
In almost almost every legal market in the world, the toughest competition is not for clients but for legal talent.
Five Things Outside Counsel Don't Know
There was a very important panel discussion at today's session of the World Services Group North American regional meeting in Park City, Utah. Every law firm lawyer who works with a general counsel in a client organization could take away some valuable insights.
Why Law Firms Fail: Not Understanding Profitability
This the third and final post in the current series about the most frequently observed factors in the business failures of law firms. The previous two articles on this subject described the failure to observe and anticipate and the failure to invest as two weaknesses that, if one probes deeply enough, can be found in most law firm failures. They also describe important risk management tactics that can improve the odds of long-term success.
The third frequent factor in law firm failures is the partners' lack of an understanding of profitability — how their firm makes money or, as is often the case, doesn't.
Why Law Firms Fail: Failure to Invest
One of the most difficult challenges for law firm leaders is to lead their partners from a short-term focus on cost (and the effects of operating costs on their end of the year profit distributions) to an investment mentality.
This is the second in a series about factors that most frequently contribute to the business failure of law firms.
Why Law Firms Fail: Failure to Observe and Anticipate
There is no simple answer to the question "why did a law firm fail?"
This is the first in a series of posts that will point out some of the most frequent causes.
What is the ROI for your partner compensation system?
At Walker Clark we view partnership compensation as a strategic issue. Our experience advising law firms worldwide demonstrates that a fully informed, well thought-out partner compensation system can produce a clear and measurable positive return on investment in less than two years. A good compensation system is also a major factor in creating long-term sustainable profitability.
A bad system, however, usually produces no ROI at all, and sometimes even a negative one.
Bad times? Good opportunities!
Law firms in some regions of the world are going though uncertain times.
At Walker Clark we believe that uncertain times can be the best times in which to invest some time, intellectual effort, and — yes! — even some consulting fees in getting a crystal clear understanding of two issues.
Partner Compensation: a Symptom or a Cure?
Partners in law firms sometimes tell me that their biggest problem is partner compensation. As one lawyer told me recently, "It is the only thing that is holding us back."
There can be a lot of truth to this statement.
Survival Tools for North American Law Firms
Law firms — indeed, most professional services firms — in North America will be confronted by some formidable challenges between now and the year 2030. Consolidation of the legal market, the emerging dominance of large service providers with national and global capabilities, a continued profitability crunch, and increased competition for professional talent are probably the most obvious threats to continued success. Independent small and midsize firms are the most vulnerable.
Resisting the Temptation to Cut Costs
Although some of the world's law firms are beginning to enjoy the results of a slow economic recovery, many others are not. In eastern Europe and Russia, for example, many firms are confronting the prospects of sharply declining fee revenues in 2015 from what were some of their most profitable practice areas and clients in 2013 and 2014. In such a scenario, it is very tempting to start cutting operating costs.
Resist that temptation.
Change Management and Strategic Success
Over the years — and especially in the past eight years — our firm has observed a direct positive link between the skill with which a law firm manages change and its return on investment in strategic planning.
Start small. Start now.
The new year has already begun!
We have never had a formal business plan or marketing plan!
Is it too late?
Are we truly doomed?
Why? and How? — Frequently Overlooked Questions in Marketing Plans
Law firms that have formal marketing plans (and every firm should have one) usually do a very good job of describing the what in marketing plans.
However, many of those plans do not consider the questions of Why? and How? These omissions make it much more difficult to manage the marketing plan to successful results.
