In part one of our series on utilizing the three forces that will help scale your law firm, we discussed the importance of having financial alignment in your business. By going through the steps of financial forecasting, creating a tax budget and analyzing your financial goals on a consistent basis, you'll have a good grasp of the financial aspects of the process for scaling your law firm. The second aspect and force that needs to be addressed deals with your operations. You must have specific processes in place for every facet of your organization.
Operations Keep Your Law Firm Running
As mentioned, it's imperative that you develop specific processes for every area of your organization. When these are well defined, it helps your law firm run smoothly and efficiently, which helps cut waste and generates profits. For example, if you look at your method for hiring new talent, can you identify the exact process that you use to recruit and bring new talent through the door? You can end up wasting a large amount of time and money if this single facet of your company doesn't have a well-defined process. Imagine hiring a new attorney in a rush and finding out six months later that this individual is a poor fit for your organization. You have now lost time with training, possible recruiter fees and you still need to find a replacement. To remedy this type of situation, you have to have a process in place that defines technical ability, culture fit, personality, references, etc. When you need help with this, our law firm CPAs can assist you in creating this strategy.
Learning To Hire And Delegate
It's safe to say that there are a number of different processes that will need to be defined in your operations. If you're a single attorney, you may find this overwhelming. Even a growing law firm will need to bring in new employees at one point if you are scaling and growing your business. By having a process in place for your human resources department, which maybe you, you'll be able to make sure that you hire the right people.
Tracking Your Cases
When you're working with the operations of your law firm and want to have them run more efficiently, it will help if you follow the TMA process, which stands for Track, Measure and Adjust. Do you currently have a system in place for documenting when cases are coming into your law firm, estimating their completion date and what the deliverables are? Knowing how to do this and who is in charge of handling this process is your first step towards efficiency. Not doing this or throwing something up on Excel is not going to cut it if you are serious about scaling your law firm and moving ahead of the competition.
The Value Of Measuring
Once you have documented your cases and have a good grasp on their completion date, it is important to measure your success rate of meeting those internal and external deadlines. Do you need to add any extra parameters to your documentation in order to make the process go even smoother? By measuring the success rate of reaching your goals, it will provide you with valuable information that you can adjust if needed. If you are unsure about all of the areas that should be measured in your operations, our law firm accountants are happy to help.
It's Time To Adjust
When you take the time to track your cases and really go in-depth with your documentation, you'll start to see patterns emerge that are both positive and negative. By taking the negative patterns and adjusting them, you will become even more efficient with your operations. When you start to do this on a consistent basis, it will remove all of those negative factors and replace them with positive ways to create more efficiency in your operations. We think you'll be surprised at how quickly this can make your tasks easier. It also makes forecasting much more tangible. When you need to adjust certain areas that you are unsure about, you can always utilize our experience and expertise to your benefit. Our law firm CPAs have assisted a number of clients with this aspect of their business.
This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.