The Case For Practice Groups in Law Firms

The Case For Practice
Groups in Law Firms
Thomas S. Clay
Altman Weil, Inc.
WHERE ARE WE NOW?
Success in any market position requires management of key variables...
...and they need to be in alignment with each other.
• Behavior
• Market position
• Image
• Structure
• Systems
• Skills
• Core clients
• Processes
• Core services
• Culture
• Competitive basis
• Economics
EXTERNAL VARIABLES
INTERNAL VARIABLES
SUPPORT
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WHERE DO WE WISH TO BE?
Managing these variables over time requires a clear
view of the desired future position...
...and an in-depth understanding of competitive forces.
ININ55YEARS
YEARS
• Market position
• Image
new competitors
• Core clients
• Core services
• Competitive basis
competitor moves
client demand
trends
TODAY
TODAY
• Market position
• Image
• Core clients
• Core services
• Competitive basis
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• Behavior
• Structure
• Systems
• Skills
• Processes
• Culture
• Economics
• Behavior
• Structure
• Systems
• Skills
• Processes
• Culture
• Economics
political,
economic and
social trends
technology
resources
What are our core competitive capabilities?
How do we stack up?
service range
(breadth; depth)
cost/price
cost/price
(value)
(value)
technical
expertise
competitive
capabilities
geographical
geographical
capability
capability
service delivery
capability
segment
expertise
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client
relationships
History and Role of Practice
Groups
ƒ Need for management and organization
arises
ƒ Departments evolve
ƒ Marketplace changes occur—
Specialization and segmentation
ƒ Explosive law firm growth
ƒ Pace quickens
ƒ Competitiveness is an issue
ƒ Practice groups evolve
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Unique Aspects of Management
and Leadership in Law Firms
ƒ Flat organizational structures creates
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need for leaders to also be managers
Managing professionals requires
constantly addressing WHY
Traditional command and control does
not work well
Lack of training of leader/managers
Leader/managers are also producers
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Practice Group Structure
ƒ Remember—Structure is an important
tool
ƒ No structure is perfect
– Dynamic environment
– Overlap
– Marketing and practice management
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Structures
ƒ
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Externally driven
Structure by function
By industry
By business type
Strategic Business Unit
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Why Practice Groups?
What are they good for?
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Compete Better
ƒ Keep clients and extend relationships
ƒ Gain new and better clients
ƒ Build human capital and skills
ƒ Innovate
ƒ Promote inter-dependency
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Keys to High Performance
ƒ
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Clear role and focus
Effective leadership
A business plan
Client feedback
Continuous investment
Superior execution
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Role and Focus
ƒ At a minimum, groups are responsible
for:
à
à
à
à
Client service quality
Innovations
Human capital development
Marketing
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Continuous Investment
ƒ In innovation toward
à
à
à
à
Services
Processes and methods
Products
Knowledge management
ƒ In skill building
ƒ In clients
ƒ In market research
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Contact:
Thomas S. Clay
Principal
Altman Weil, Inc.
(610) 886-2000
[email protected]
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