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Creating a Strategic Plan For Your Law Firm

Published:
03 Feb 2014
News
Creating a Strategic Plan For Your Law Firm

Law firms are asking some big questions as they plan for the new year. Pricing and relationships with clients are at the forefront as law firms jostle for market position and dwindling revenue.

Sue-Ella Prodonovich, principal of Prodonovich Advisory, says firms should be prepared to review their strategic plan every three months in a fast-changing environment.

“It’s about how do we flex, how do we let clients shape what our plan looks like, rather than how do we let lawyers shape what our plans look like,” she says.

The big issues

Prodonovich says the biggest issue for firms still making decisions in Australia is determining their breadth of service. She recommends that firms narrow down their focus and clearly define their position in the market.

“You’re either going to get rid of unprofitable areas, you’re going to invest in emerging markets or growth markets, you’re going to invest in a geographic segment, or you’re going to invest in a service type or an industry type.

“But to try and span everything is a bit of a fool’s paradise.”

Starting out with strategy

The question firms initially must ask is: what are the ingredients that we’ve already got on the table?

For example, smaller firms can make decisions faster than the big firms. Big firms, meanwhile, can invest in emerging areas of law, growth markets and emerging markets.

“They have their scale, and they’ve just got the horsepower there, Prodonovich says. “When you need a big deal or when you need to talk to others, you’ve got a self-perpetuating referral base within them.

“And you’re getting some very good talent leaving the big firms and either starting up their own practices or building in a lot of horse power into smaller practices.”

Steps to creating a strategic plan


When creating your business plan, Prodonovich recommends working through the following steps:

  1. Understand your fee base. Review your fees over the past three years and identify trends you want to amplify or minimise.
  2. Understand your clients. Consider how they met you, why they chose you, and what their plans are for 2014.
  3.  Learn from your losses. Determine the critical few things you will say 'No' to and where you will reinvest time. Identify any client relationships you should 'prune' from your practice.
  4. Review the market. Do you have new competitors? Are there alliances or joint ventures to explore? Are clients changing the way they use your service.
  5. Speak with clients and referrers and ask for their feedback. Incorporate ideas into your plan. 
  6. Review your offer and what distinguishes your practice. Analyse your ‘strengths’ and ‘weaknesses’ and identify ‘opportunity’ and ‘threats’. Focus on what do you need to do, or invest in, to build up your strengths and seize opportunities. 
  7. Prepare a marketing plan. Prioritise activities that position your practice with your target market (prospects and referrers) and promote the factors that distinguish you. 
  8. Update your sales pitch and review your collateral. 
  9. Diarise 30 minutes every day for business development and pipeline activity; diarise two hours once a month to review business activity and plans; diarise three hours every quarter to check your strategy.

In the current tumultuous legal marketplace, a good strategic plan will help your firm to enjoy more than momentary success – it can give you longevity.

If you would like to learn more about Business Strategy and additional elements of managing your own legal business, find out about our Master of Legal Business and associated programs.

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Offering a flexible and affordable way to upskill, the Graduate Certificate is a popular option for busy legal professionals looking to sharpen their skills or master a particular field.
 
Download this course guide to receive more information. 
Kyiesha Faulkner: How the Indigenous Business Handbook is transforming lives

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Kyiesha Faulkner: How the Indigenous Business Handbook is transforming lives

Starting a business is never easy. What step should you take first? How do you negotiate the ins and outs of your legal requirements if you’re not a lawyer? Even for a seasoned lawyer these steps are complicated…And what if you also face unique cultural considerations and complexities?

Self-awareness: The surprising foundation to a thriving legal career

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Self-awareness: The surprising foundation to a thriving legal career

There’s no doubt the legal sector can be an intense work environment. Thanks to heavy caseloads and fierce competition, lawyers and other legal professionals are facing stress, anxiety and burnout on a concerning scale. But according to executive transition coach and CEO at Lucent Global, Ellie Scarf, it doesn’t have to be this way. There’s one tool that can help you manage a plethora of professional challenges. That tool? Self-awareness.

5 tips on how to avoid common ethical breaches for lawyers with Athol Opas

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5 tips on how to avoid common ethical breaches for lawyers with Athol Opas

The law is a complex field heavily reliant on knowledge, interpretation and advice. This makes for a profession that can have far reaching consequences and, as a result, lawyers are held to high standards. Athol Opas presents annual ethics updates to firms to keep them abreast of recent cases of misconduct and/or common ethical breaches. We spoke to Athol to find out about the most common ethical breaches lawyers should be mindful of and to gain his top tips on complying within ethical obligations. 

What are the top negligence claims facing lawyers today?

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What are the top negligence claims facing lawyers today?

The College of Law investigates which legal practice areas are most at risk of negligence claims and why. We spoke to Lawcover’s Legal Risk Manager Glenda Carry about the practice areas most affected by negligence claims, what behaviours can lead to adverse claims by clients, and what risk mitigation strategies law practices can put in place.

From LLB to Parliament – Australia’s Politicians-Turned-Lawyers

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From LLB to Parliament – Australia’s Politicians-Turned-Lawyers

Australia’s recent change in leadership has set the nation’s eyes on Malcolm Turnbull. Over the coming weeks and months, the newly appointed 29th Prime Minister will reveal his mettle as a national leader.

From ballroom dancing to the law: Meet PLT alum Helena Angela Hanna

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From ballroom dancing to the law: Meet PLT alum Helena Angela Hanna

While completing her law degree and Practical Legal Training with the College of Law, Helena Hanna also kept up with her interests outside of studies. Learn more about Helena and her law degree experience.

How to merge your love of music with your legal career: Chelsea's story

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How to merge your love of music with your legal career: Chelsea's story

Learn how Chelsea Donoghue merged her lot of arts and law: How she managed her study while on world tours, what she loves most about her work at Sanicki Lawyers, and what’s next.

Graduates and prize winners recognised in June ceremony

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Graduates and prize winners recognised in June ceremony

Graduates and prize winners celebrated their achievements, received their awards and honours remotely due to continuing COVID-19 restrictions.

How AI is being used in Family Law

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How AI is being used in Family Law

To understand where legal AI use cases are showing up within family law, the College spoke with two highly experienced practitioners who have incorporated AI into their legal practice in different ways. Fiona Kirkman, principal at Kirkman Family Law, embraced ChatGPT early on in her practice, while Jenna Downy, solicitor at Family Law Matters, helped train LawY, an AI legal research assistant.

How to exit your job gracefully in law

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How to exit your job gracefully in law

For the 1 in 4 Australian lawyers considering leaving their job, the current job market is tipped in their favour. However, Australia’s legal profession is tight-knit and relatively small, so reputation matters. If you are leaving your role for fresh challenges, here are our top tips on how to exit your job gracefully in law, from the College of Law’s National Careers Advisors Ruth Beran and Susan Pincus.

Juggling full-time work, parenting and PLT possible through the College of Law, says Kerala Drew

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Juggling full-time work, parenting and PLT possible through the College of Law, says Kerala Drew

Kerala Drew found the path to qualifying as an Australian lawyer fraught with roadblocks. Learn how she landed her first job in law, what set her College of Law PLT experience apart from prior study, and what advice she might have for lawyers looking to join the Australian legal profession.

When commercial acumen meets common courtesy: Ankurpreet’s LPMC story

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When commercial acumen meets common courtesy: Ankurpreet’s LPMC story

Ankurpreet Singh was thrust into a costly commercial conflict, which made him determine to pursue a legal career. To make his dream a reality, he enrolled in the College of Law’s LPMC – where he bolstered his business competence and confidence.

The legal ramifications of the Queen’s death are surprisingly small

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The legal ramifications of the Queen’s death are surprisingly small

We talk to the College of Law’s Adrian Deans, Academic Policy & Quality, James Crittenden, Head of Short Courses and CPD, and Lewis Patrick, Chief Academic Officer, about some of the pragmatic impacts of the Queen’s passing on the law and Australian legal profession.

3 Key Insights from the State of Separation Impact Report: Making Separation Simpler

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3 Key Insights from the State of Separation Impact Report: Making Separation Simpler

Parting ways in a relationship is never easy, and family lawyers are generally the first professional separating couples encounter when they end a relationship. For all of these reasons Angela Harbinson created The Separation Guide, which aims to make separation and divorce simpler, more manageable and less stressful.

Navigating Age Discrimination In The Law With Tile Imo

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Navigating Age Discrimination In The Law With Tile Imo

Bias and age-based discrimination remains an issue in the workforce, despite legal protections. In this article, we delve into the intricacies of age bias claims with Tilé Imo, Associate Director of Caxton Legal Centre. We explore the evolving legal landscape, effective strategies for litigating age discrimination cases, and the emerging trends that lawyers need to be aware of to best serve their clients.

Major changes ahead with the Family Law Amendment Bill 2023 in progress

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Major changes ahead with the Family Law Amendment Bill 2023 in progress

Major changes are coming that will impact the family law system and the way practitioners operate in Australia. The Family Law Amendment Bill 2023 is currently under debate in parliament and after its third reading, it is now under review with the Senate Legal and Constitutional Affairs Legislation Committee. The College of Law will provide legal training support when the Family Law Amendment Bill commences, but in the meantime, we spoke with College of Law adjunct lecturer Kathryn Kearley to find out about the most important changes.  

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