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MBL PRESENTATION

MBL PRESENTATION. The current state of law firm STRATEGIC Planning. WHAT IS STRATEGY?. HOW MIGHT YOU DEFINE WHAT A LAW FIRM “STRATEGY” IS?. WHAT IS STRATEGY?. HOW MIGHT YOU DEFINE WHAT A LAW FIRM “STRATEGY” IS? WHAT DOES A GOOD STRATEGIC PLAN NEED TO ADDRESS?. WHAT IS STRATEGY?.

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MBL PRESENTATION

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  1. MBL PRESENTATION The current state of law firm STRATEGIC Planning

  2. WHAT IS STRATEGY? HOW MIGHT YOU DEFINE WHAT A LAW FIRM “STRATEGY” IS?

  3. WHAT IS STRATEGY? HOW MIGHT YOU DEFINE WHAT A LAW FIRM “STRATEGY” IS? WHAT DOES A GOOD STRATEGIC PLAN NEED TO ADDRESS?

  4. WHAT IS STRATEGY? “Look, when you strip away all the noise, strategy is about resource allocation. Strategy means making clear-cut choices about how to compete. You can’t be everything to everybody. My advise is when you think about strategy, think about decommoditizing. Try desperately to make your services distinctive and your client stick to you like glue - whatever works to be unique!” Jack Welch, Fortune Interview, April 18,2005

  5. APRIL 2005 Edge International Research Survey Posed 23 Questions of Management Responses from 156 Law Firms Across 6 Countries US - UK - Canada - Germany - Australia - South Africa

  6. APRIL 2005 - EDGE RESEARCH SURVEY: Size of U.S. Responding Firms: • 50 - 150 Attorneys 35% • 151 - 300 Attorneys 40% • Over 300 Attorneys 25%

  7. STRATEGIC PLANNING SURVEY RESULTS FROM THE “50 - 150 LAWYER” CATEGORY

  8. FIRMS’ CURRENT STRATEGIC PLAN: Q: Does your firm currently have a strategic plan? • Yes, we have a formal, written plan • No, we have a strategy but not in writing • No, but we’re in the process • No, we prefer to remain flexible • Other . . .

  9. FIRMS’ CURRENT STRATEGIC PLAN: • 44% of these smaller law firms have a formal, written strategic plan. • 56% of these firms either have a strategy, but not committed to writing or prefer to remain opportunistic. 57% responded that they were in the process of preparing a plan

  10. TIME SPENT IN PLANNING: Q: How long did your strategic planning process take? • Intensive weekend retreat with follow-up • Less than 30 days • 30 to 90 days • Three to six months • More than six months • Other . . .

  11. TIME SPENT IN PLANNING: • 53% of these firms invested “three to six months” of non-billable time to develop their final plan.

  12. DESCRIPTION OF FINAL PLAN: Q: I would describe our strategic planning document as being: • Brief and targeted to a few priorities • Lengthy and comprehensive • Comprehensive but prioritized • A summary with detailed appendices • Other . . .

  13. DESCRIPTION OF FINAL PLAN: • 46% would describe their strategic plan as “comprehensive, but prioritized.” • 40% of smaller firms would describe their plan as “brief and targeted to a few priority strategies.”

  14. TECHNIQUES USED IN CREATION OF PLAN: Q: Which of the following techniques were used in the creation of your plan: • Interviews / survey of partners • Interview / survey of clients • Input from practice groups • Facilitation by a consultant • A partnership retreat • Other . . .

  15. TECHNIQUES USED IN CREATION OF PLAN: • 56% of these firms told us that they interviewed or surveyed some portion of their partners. • 0% would claim to have interviewed or surveyed any of their clients!

  16. FOCUS OF THE FINAL STRATEGY: Q: Is your firm’s strategic plan internally or externally focused? • Heavily internal • Somewhat internal • Evenly balanced • Somewhat external • Heavily external

  17. FOCUS OF THE FINAL STRATEGY: • 12% of the firms could claim to have a strategy that was largely “external” - involving client services, differentiation, pricing, and similar externally focused activities. • 88% admitted that their focus was largely weighted on the internal side.

  18. IMPLEMENTATION SUCCESS: Q: How much of your strategic plan has been implemented? • Almost all of the plan • Much of the plan • About half of the plan • A few elements of the plan • Virtually nothing

  19. IMPLEMENTATION SUCCESS: • 43% of the smaller firms claimed to have implemented “much” of their plans. • 36% admitted to implementing “a few elements” to “virtually nothing” in their plans.

  20. WHO DEVELOPED THE STRATEGIC PLAN: Q: Who was involved in developing your strategic plan? • Managing Partner • Members of executive committee or board • Specially constituted planning committee • Partnership as a whole • A consultant • Member of the administrative staff • Other . . .

  21. WHO DEVELOPED THE STRATEGIC PLAN: • 6% the managing partner • 51% the management committee • 31% a special planning committee • 12% the partnership as a whole

  22. HOW OFTEN THE PLAN IS REVIEWED: Q: How often has you current strategic plan been reviewed and, if necessary, revised? • Several times • About every six months • Annually • Rarely • Not until the plan is no longer relevant • Other . . .

  23. HOW OFTEN THE PLAN IS REVIEWED: • 50% of these law firms did not review or revise their strategic plan after it had been developed. • 44% of firms claimed to review their plans on an annual basis. • 6% of firms constantly review and utilize their strategic plan as a dynamic document.

  24. SATISFACTION WITH CURRENT STRATEGIC PLAN: Q: On a scale of 5 (very satisfied) to 1 (very dissatisfied) what is your level of satisfaction with the following aspect of your firm’s strategic plan?

  25. SATISFACTION WITH CURRENT STRATEGIC PLAN: SMALLER FIRMS ARE LEAST SATISFIED WITH: 56% - Implementation 38% - Practice group involvement. 31% - Meaningful differentiation 31% - Process for creating the plan

  26. ONE THING RESPONDENTS WOULD CHANGE: • More accountability and having one shareholder assigned to each goal. • Gather more external information and focus more on clients. • More frequent review and adherence to the plan. • Having a smaller number of goals and having more focus.

  27. CURIOUS OBSERVATIONS FROM THE DATA: • Those firms who involved the entire partnership ALSO claimed to have implemented much of their plan. • Those firms who claimed to have reviewed the plan several times a year ALSO claimed to have implemented much of their plan.

  28. CURIOUS OBSERVATIONS (Cont’d): • Those firms who experienced the highest level of satisfaction with their planning process, had the most internally focused plans and implemented the least. • Those firms who were very satisfied with “partner buy-in” (81%) were also highly dissatisfied with implementation.

  29. STRATEGIC PLANNING SURVEY RESULTS FROM THE “150 - 300 LAWYER” CATEGORY

  30. FIRMS’ CURRENT STRATEGIC PLAN: • 66% of these mid-sized law firms have a formal, written strategic plan. And, 20% of those who do not have a formal plan are currently in the process of preparing one. 44% of the smaller firms have a formal, written strategic plan.

  31. TIME SPENT IN PLANNING: • 45% of these firms invested “more than six months” in developing their final plan. • 53% of these firms invested “three to six months” to develop their plan.

  32. DESCRIPTION OF FINAL PLAN: • 59% of mid-sized firms would describe their strategic plan as “brief and targeted to a few priority strategies.” • 40% of smaller firms would describe their plan as “brief and targeted to a few priority strategies.”

  33. TECHNIQUES USED IN CREATION OF PLAN: • 41% of mid-sized firms told us that they interviewed or surveyed their clients as input to the creation of their strategic plan. • 0% of smaller firms claim to have interviewed or surveyed any of their clients!

  34. FOCUS OF THE FINAL STRATEGY: • 27% of mid-sized firms could claim to have a strategy that was largely “external” - involving client services, differentiation, pricing, and similar externally focused activities. • 12% of the smaller firms could claim to have a strategy that was largely “external”.

  35. IMPLEMENTATION SUCCESS: • 32% of mid-sized firms claimed to have implemented “much” of their plans” • 43% for smaller firms. • 54% admitted to implementing “a few elements” to “virtually nothing” in their plans. • 36% for smaller firms.

  36. WHO DEVELOPED THE STRATEGIC PLAN: IN MID-SIZED FIRMS: • 0% the managing partner • 45% the management committee • 41% a special planning committee • 14% the partnership as a whole

  37. HOW OFTEN THE PLAN IS REVIEWED: • 14% of mid-sized firms claimed to review and revise their strategic plans at least every six months. 6% for smaller firms.

  38. SATISFACTION WITH CURRENT STRATEGIC PLAN: MID-SIZED FIRMS ARE LEAST SATISFIED WITH: 73% - Implementation plans with designated responsibility and time tables. 55% - Meaningful differentiation from competitors. 45% - Process for creating the plan 41% - Partner buy-in to the plan.

  39. ONE THING RESPONDENTS WOULD CHANGE: • Assign implementation responsibility to groups and individuals. • Develop metrics that allow progress to be measured. • Put implementation planning into the overall planning process. • Make planning process more dynamic with constant updates.

  40. CURIOUS OBSERVATIONS FROM THE DATA: The Mid-Sized firms on average, invested more time in developing their plans; were a bit more externally focused (27%); got their client’s input (41%); developed a few targeted strategies (59%); and reviewed their plans a touch more often (14%); BUT, they managed to implement less than the Smaller firms.

  41. STRATEGIC PLANNING SURVEY RESULTS FROM THE “OVER 300 LAWYER” CATEGORY

  42. FIRMS’ CURRENT STRATEGIC PLAN: • 89% of largest law firms have a formal, written strategic plan. (The survey showed 100% for firms of over 500 attorneys which represented 39% of this group.) 66% of mid-sized law firms 44% of smaller firms

  43. TIME SPENT IN PLANNING: • 56% of largest firms invested “three to six months” in developing their final plan. 45% of mid-sized firms invested “more than six months”. 53% of smaller firms invested “three to six months”.

  44. DESCRIPTION OF FINAL PLAN: • 73% of largest firms would describe their strategic plan as “brief and targeted to a few priority strategies.” 59% for mid-sized firms 40% for smaller firms

  45. TECHNIQUES USED IN CREATION OF PLAN: • 44% of largest firms told us that they interviewed or surveyed their clients as input to the creation of their strategic plan. 41% for mid-sized firms. 0% of smaller firms

  46. FOCUS OF THE FINAL STRATEGY: • 25% of largest firms could claim to have a strategy that was largely “external” - involving client services, differentiation, pricing, and similar externally focused activities. 27% for mid-sized firms 12% for the smaller firms

  47. IMPLEMENTATION SUCCESS: • 25% of largest firms claimed to have implemented “much” of their plans” (NO firm claimed to have implemented “almost all of the plan”) 32% for mid-sized firms 43% for smaller firms.

  48. WHO DEVELOPED THE STRATEGIC PLAN: IN LARGER FIRMS: • 13% the managing partner 0% Mid-Sized / 6% Smaller • 44% the management committee 45% Mid-Sized / 51% Smaller • 38% a special planning committee 41% Mid-Sized / 31% Smaller • 12% the partnership as a whole

  49. HOW OFTEN THE PLAN IS REVIEWED: • 38% of largest firms claimed to review and revise their strategic plans at least every six months. 14% for mid-sized firms. 6% for smaller firms.

  50. SATISFACTION WITH CURRENT STRATEGIC PLAN: LARGEST FIRMS ARE LEAST SATISFIED WITH: 44% - Implementation. 73% for mid-sized firms 56% for smaller firms 31% - Meaningful differentiation. 55% for mid-sized firms 31% for smaller firms

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