Are we there yet?

On a recent trip with two of my granddaughters, they asked these age old questions: “How much further?” “Are we almost there?” and “When are we going to get there?” As I reflect on the status of the economy and its impact on law firms, I have the same reaction. “Are we almost there?” “How much longer?” and “When will it end?”

Many law firms rebounded well from the 2008-09 downturn, others stabilised and a small group continues to struggle with the aftermath of the recession. Good times may lie ahead, but how can we ensure that our firms will exit the recession in as good shape as they entered it?  

Below I lay out four thoughts that will help managing partners move through the last days (I hope) of our tough economy.

1. Have a plan

All law firms (in fact, all businesses) benefit from adopting some form of strategic plan. It need not be an elaborate, multi-page plan, but at a minimum it must contain the managing partner’s vision. Putting the plan on paper helps, but living it is more important.

In these difficult economic times, leaders without plans tend to jump from one idea to the next, looking for solutions. That strategy, or lack of the same, invariably leads to failure. A plan gives the managing partner a filter against which she can measure decisions and allows her to see beyond day-to-day crises.

If no plan exists, create one. If a plan exists, follow it.

2. Stay on message

Not only must the firm adopt a plan, the managing partner must be able to articulate it.

The message must resonate with lawyers and staff. For example: “The firm wants to be… ; and we will get there by…”

Difficult times lend themselves to different and sometimes confusing messages. Conflicting messages from the managing partner can create a lack of confidence in management. Low morale and defections follow.

To maintain confidence and keep morale high, structure a message around the plan and continue to ‘preach’ it at every opportunity. Make sure everyone understands what steps the firm will take and why.

Long speeches with complicated exhibits create confusion, not confidence. A straightforward, from the heart message resonates with lawyers and staff, creates enthusiasm and leads to success.

3. Make safe hires

The marketplace abounds with lawyers looking for work. Lawyer lay-offs and reduced law school hires create many hiring opportunities. An unprecedented number of résumés and business plans arrive daily. Do not fall for the siren song of mass hires. Until the economy stabilises, make only safe hires.

Safe hires come to the firm with business to support themselves and at least one other lawyer. The safe hire exists, but takes more effort to find. As in most things, the extra work pays off.

Today’s economy stacks the deck against someone new to private practice, or a lawyer who has not previously generated work. Choose people who will help you in the short haul, with the hope that you can leverage them into long-term prosperity.

4. Do not make the economy your partner

The poor economy goes into its third year as the culprit for everything wrong with law firms. ‘Blame it on the economy’ continues to be the rallying cry of the underperformer. A belief the firm will miraculously return to prosperity when the economy gets better relies more on prayer than strategy.

Do not let the economy become a crutch or an excuse for poor performance. The economy is now a given. Deal with it.

Strong firms follow plans that allow them to prosper even in bad times. Blaming it on the economy may create a good excuse, but it will not lead to short or long-term success. Partners and staff know the firm faces challenges. Tell them how to overcome them. That’s leadership.

The answer to my granddaughters was “we are almost there”. If you follow the four points above, the trip will seem much shorter for you as well.