1. Baseball Hall of Fame catcher and erstwhile
management guru, Yogi Berra, once said, “If
you don’t know where you are going, you’ll
end up someplace else.” An acknowledged
master of fractured English, Yogi did have a
way of making a point – If you do not plan
for certain goals, events, or outcomes, the
odds are pretty good that you will never
achieve what you desire. This leads us to
law firm planning.
According to the 2014 edition of Law Firms
in Transition by legal consulting firm Altman
Weil, an increasing number of law firms are
engaged in substantive planning. According
to authors Tom Clay and Eric Seeger, the
trick – and the challenge - is what to plan for,
who is involved, and how long a planning
horizon should be taken.
What to Plan For?
The list of what to plan for seems endless
at times. For Altman Weil, the key issues
impacting today’s law firms include fee
structure, client retention, succession
planning, development and management
of non-equity partners, use of contract
attorneys, lease and use of real estate, and
secretarial ratios. Which issues to plan for
are directly related to the size and ownership
structure of the law firm in question. For
many ALA member firms, the issues are
more “local,” as most member firms have
single locations. That notwithstanding, many
of the same issues apply. A survey of the
partners as to which issues are the most
important is the best way to create a list of
what to plan for.
Who is Involved?
Irrespective of long or short term planning,
the study noted that managing partners
sometimes struggled with the fact that
their senior colleagues, those in a
decisionmaking mode, were not really
knowledgeable regarding these issues.
While this is changing, about half of the
managing partners surveyed felt that their
colleagues were not aware of the issues
and their impact. One suggestion made
was to establish a “futures” committee.
This committee would identify, study, and
address the core issues confronting the
legal profession in general, and the firm
in particular. Such issues as fee structure,
ownership, succession, non-equity partners,
technology, client retention, office size and
support ratios would be some of what would
be addressed.
How long is the planning horizon?
The trick in deciding “what to plan for” is
balancing both short and long term goals.
For most of the locally owned and operated
law firms in Maryland, there will be greater
pressure on short term goals due to the
direct relationship between production,
profitability and partners. The larger the size
of the firm, the greater is the need to plan
for such issues as succession, recruitment,
non-equity partners, and fee structure. Large
law firms are starting to take the longer
view (8-10 years), particularly as it relates
to pricing, ways of delivering services, and
how to lock in clients on a long term basis.
Smaller firms still tend to focus on cash flow,
increasing revenues, and more immediate
issues relating to compensation.
And in Conclusion…
Yogi may have said it in fractured English.
However, it is a relatively simple point to
make, one made daily by time management
aficionados – plan your work and then work
your plan. And the corollary of that thought
is this one – failing to plan creates a plan for
failure.
As demonstrated by the Altman Weil study,
law firms are now embracing some form of
planning. Certain law firms, usually AmLaw
100, are “going long” (8-10 years); others,
predominantly locally owned and operated,
are “going short” (1-3 years). Irrespective
of size and location, it is apparent that most
law firms have embraced the importance of,
and need for, planning.
What about your firm?
Spring 2015 disclosures Copyright ©2015 Maryland Chapter, Association of Legal Administrators. disclosures is published four times a year and is distributed to Chapter members and law firm managing partners.
To submit articles, contact Vickey Wagner at 410.230.3806. disclosures is copyright protected and is not to be reproduced in any form without written permission from the publisher.
LAW FIRM PLANNING
By Robert A. Manekin, Esq., Senior Vice President, JLL
ABOUT THE AUTHOR
Bob Manekin has developed, leased,
and managed commercial real estate
for nearly 40 years. Since 1992, he has
focused on tenant representation and
corporate services. A 1973 graduate of
the University of Maryland School of Law,
Bob practiced in the U.S. Navy Judge
Advocate General Corps and served as
a Special Assistant U.S. Attorney from
1974 – 1977 before focusing on real
estate advisory. He has provided services
for approximately half of the top 25 firms
in the Baltimore Metropolitan Area and
has authored numerous articles and white
papers on leasing office space.
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