The strategic plan will serve as a guide for allocation of the firm's resources. It will allow the firm to plan its lawyer activity more productively, i.e., the time spent on fee producing work, practice development and image enhancement, management of administrative and substantive activities, recruiting, etc. The strategic plan will also enable attorneys to appraise the results of their efforts. The strategic planning process is usually undertaken in the following four phases: (1) Self Assessment, (2) Analysis of Data Base, (3) Draft Objectives for Presentation to Partners, and (4) Implementation of the Plan.
Phase 1: Self Assessment
This phase involves the managing partner,
management committee or strategic planning committee to survey all or a
representative number of lawyers through personal interviews, questionnaires or
a combination of both to obtain their perceptions about internal and external
trends that will have an effect on the firm. Examples of issues that are
usually addressed during the self assessment follow:
1. The philosophy, objectives and plans currently guiding the firm
2. The firm's culture
3. The form and effectiveness of firm governance, organization and
administration
4. How effectively the firm's growth has been managed
5. Partner/associate relationships, i.e., the ratio of associates to
partners, classes of partners and associates, criteria for admission to
partnership, communications among and between partners and associates,
retirement planning, etc.
6. Firm economics, i.e., partner satisfaction with gross revenue and net
profit, individual net income, hourly and billing expectation from partners and
associates, etc.
7. Areas of practice management, i.e., does the firm deliver legal services
in a quality, timely and profitable manner?
8. Firm resources and capabilities, i.e., strengths and weaknesses, as
related to resources, reputation, services and legal market position.
9. Client perceptions and partner willingness and ability to sell legal
services, etc.
10. An assessment of the legal market environment, including size,
synergism, trends, competition, client behavior, etc.
11. A forecast of the political, social and economic forces of change that
will effect the firm and its clients.
Phase 2: Analysis of Data Base
This phase of the process involves analyzing the data base to highlight
those key internal and external factors affecting the firm. Planners should be
especially interested in obtaining partners' perceptions about the following:
1. Firm Strengths
2. Firm Weaknesses
3. Competitive Advantages
4. Competitive Disadvantages
5. Number of full time lawyers - both partners and associates and their ages
6. Administrative personnel
7. Main sources of clients and income from principal clients over the past
three to five years and important changes that would effect client volume
favorably or unfavorably
8. Inventory of unbilled time, accounts receivable, costs advanced
9. Billable and non-billable hours
10. Health problems or personal idiosyncrasies of partners
11. Anticipated tangs in the partner compliment, i.e., retirement,
withdrawal, etc.
Phase 3: Draft Objectives for Presentation to Partners
This phase includes drafting objectives for presentation to the partners in
each of the areas studied. The following is an abbreviated presentation of
marketing plan objectives and strategies prepared for one of the author's
mid-size law firm clients.
Illustrative Marketing Plan Objectives:
1. To serve well, efficiently, economically, and fully the firm's existing
clients (This objective, properly carried out, is probably the most important).
2. Growth - Does the firm wish to grow? An objective of most marketing plans
is to increase the number of quality clients served by the firm in targeted
industries and practice areas.
3. To identify and market whatever strengths or unique services the
particular law firm may have to offer including, for example:
4. To increase the firm's exposure in the marketplace.
Illustrative Marketing Strategies:
1. To implement a marketing plan
2. To analyze the market or markets where the firm practices
3. To identify substantive areas of practice where the firm is weak or
understaffed an act to correct the situation
4. To determine which of the firm's strengths
should be brought to the attention of existing and prospective clients in the
markets where the firm practices
5. To identify a specific number of prospective new
clients and assigning responsibility to specific lawyers to deal with the
prospects, directly or indirectly
6. To meet with each major existing client and
determine:
(a) Whether the client is satisfied with the
firm's representation
(b) How the firm might improve from the client's perspective
(c) What other services might be performed (In this regard, some firms have
developed client evaluation questionnaires).
7. To analyze the mailing list for firm
announcements and determine whether it should be expanded or modified
8. To identify a specified number of potential
referral sources and inform them about the firm
9. To identify seminars (including CLE, trade
association, and client seminars) in which the firm's attorneys should
participate and/or which the firm should sponsor
10. To develop and make effective use of a firm
resume. In this regard, the firm may employ a general firm resume, together
with resumes for its individual lawyers, its specialty groups, and its branch
offices, the use of which is tailored to the perceived interest or needs of a
particular client or prospective client
11. To identify and encourage participation in
appropriate service, political, social, alumni/ae and similar organizations,
where individual lawyer participation would be beneficial
12. To organize internal programs to keep the lawyers in the firm informed
about marketing activities
13. To publish informational memoranda and pamphlets on new areas of law
14. Longer term strategies for accomplishments over three, four or five
years
15. Periodic reviews of the effectiveness of the marketing plan should be
scheduled and the plan should be revised in light of experience
Phase 4: Implementation of the Plan
The pay off for strategic planning is in the
implementation of the plan. This is frequently the most difficult part of the
strategic planning process. It is recommended that the plan be implemented
through the firm's existing organizational structure, i.e., the managing
partner, the strategic planning committee, heads of substantive practice areas
and branch offices as required. Individual partners should be assigned
responsibility and held accountable for the satisfactory implementation of each
phase of the plan in accordance with an agreed upon timetable. Partners
responsible for the implementation phase should report to the managing partner,
strategic planning committee or other group designated to oversee the planning
process. Problems and/or progress should be reviewed and assessments made to
determine the most appropriate strategies to be followed. Status reports should
be provided to the other partners on progress and/or problems in each phase of
the plan in order to keep them apprised about the planning activities.
The implementation must be monitored to assess how effectively the plan is
being implemented and corrective action must be taken as required.
Conclusion
Strategic planning is a dynamic process. If conceived properly and
implemented effectively, the strategic planning process will provide information
required for determining immediate and longer term goals and objectives.