Rather than proceeding with business as usual with a different price tag and hoping for a positive outcome, many of today’s most successful law firms are to undertake an examination of how their business model is built for the “new normal.” By designing a practice tailored to fit today’s marketplace, law firms can create a strategic plan that can better create and protect future profitability. Such an approach involves focusing on but is not limited to four key dimensions: Client Selection, Pricing and Profit Model, Scope of Activities, and Winning and Keeping the Business. This framework can help attorneys capitalize on business development opportunities and maximize strategic law firm planning.
A great example of this evolution can be found in the pressure general counsel and corporate legal departments are placing on firms to deliver services at lower, more predictable costs. On one hand, firms are being asked to re-evaluate processes from back-end operations to matter-based project management, while on the other they’re being expected to incorporate many new elements, such as budget forecasting and cost reduction, to their strategic law firm planning.