It was late fall 2001. The internet bubble had burst. A stock I owned that had traded at a record $130 per share was on it way to single digits where it remains today. I foolishly bought shares all the way down.
I remember a conversation with our law firm’s financial officer. He told me and a member of our board that based on hours the lawyers were producing, we had 38 lawyers more than we had work available for them to do. Each month that fall, our firm leaders found other ways for us to cut expenses, I tried to suggest we focus on increasing revenue, but my suggestion was never considered.
Think about your own firm. Whether it is a very large firm or only 3-4 lawyers, what would happen if you were able to increase revenue by 15%? I thought of this idea again when I read Seth Godin’s blog post several years ago, 15% Changes Everything. In a law firm, a 15% decline in revenue or a 15% increase in revenue really does change everything.
How can your firm increase revenue by 15%?
- Get your highest producers together quarterly and come up with an action plan for them to implement.
- Create a client development coaching program for your junior partners/senior associates to get them more focused on client development.
- Get each of your lawyers to prepare a business plan for their non-billable time. If you would like a template, click here.
- Create a Cross-Serving Plan.
- Get each of your practice groups to prepare a plan. In my old firm, we created “Targeted Differentiators.”.