Question: 
I am a family law practitioner in the western suburbs of Chicago. I have been in practice for thirty years. I have two associate attorneys and two staff members. In the past I had other partners but that was many years ago. Over the last few years our business has been declining. Our financial performance last year was terrible and I made less than my associates. If this continues I may have to lay off an associate or two. Recently we have made some improvements to our website but I am not sure we have not done enough. I…
Continue Reading Law Firm Marketing – Internet Strategy Crucial to Retail Practices Such as Family Law and Estate Planning

Question:
I am the sole owner of an estate planning firm in San Francisco Bay area. I have four full-time associates, six paralegals, two secretaries, a firm administrator, and four other staff members. We are a high volume operation and we do a lot of marketing. We need help coordinating and handling the marketing. Are we ready for marketing coordinator or director?
Response: 
Personally I think the firm is a little small for a full-time marketing position. If you can find a person that is willing to work part-time that could work in a firm your size. Many firms your…
Continue Reading Law Firm Marketing and Business Development Coordinator or Director

Question: 
I am a partner in a three-attorney law firm based in Orlando, Florida. I did a quick Google search this morning and stumbled upon your excellent blog posting – Associate Attorney Compensation.  John did an excellent job answering the attorney’s question.  We have an associate who I like very much; however, heading into her third year with the firm, she has gotten a bit comfortable with our laid-back style of management.  Our situation is similar in many respects to the situation posted by the Chicago attorney.
I would like to find out more about whether coaching could help us…
Continue Reading Associate Performance and Coaching

Question: 
Our firm is a fourteen partner firm in the northern suburbs of Chicago with ten partners and four associates. We are a general practice firm with different partners focusing on specific practice areas. Our partners’ compensation is determined by a three member compensation committee.  The compensation committee uses a combination of quantitative data based upon working attorney fee collections and client fee originations and makes a subjective determination regarding other contributions that a partner has made to the firm. The problem that we have is the compensation committee does not have a way to effectively measure the other contributions…
Continue Reading Law Firm Partner Compensation and Performance Reviews

Question: 
I am the owner of a twelve attorney business litigation law firm in Northern, California. I started the firm fourteen years ago after practicing ten years in a large law firm. While the practice has been fulfilling both professionally and financially, the management side is often a challenge. As I sit here on December 31, 2019 thinking about management challenges that I may face next year I was wondering what you envision the challenges will be in 2020.
Response: 
The following were the common challenges that owners and managing partners advised us that they faced in 2019:

…
Continue Reading Law Firm Management – What Will Be Keeping Owners and Managing Partner Awake at Night in 2020

Question: 
We have a 12-lawyer business litigation firm in Chicago. We have eight partners in the firm and we are managed by a three-member management committee that was just formed this year. I am a member of the committee and I am responsible for the general financial oversight of the firm. I am trying to get a handle on law firm financial metrics and especially what are the financial warning signs that I should be aware. If you have an outline or list that you would be willing to share we would appreciate it.
Response: 
Here is a short list…
Continue Reading Law Firm Financial Management – Financial Red Flags

Question: 
I am an attorney in solo practice in the southwest Missouri. I am 45 years old and I have two paralegals working for me in the firm. The practice is a general practice firm that I started ten years ago. I have been advise that I should have a succession plan. What exactly do I need to be putting in place? Any thoughts that you have would be appreciated.
Response: 
Due to the number of baby boomers approaching retirement much of my writing has been on succession and exit planning for this group. Based upon your age I think…
Continue Reading Law Firm Contingency/Practice Continuation Succession Plan for a Solo Attorney

Question: 
Our firm is at a crossroads concerning partner compensation. We are a 12-lawyer firm in Richmond, Virginia, with nine partners and three associates. We are in our second generation of partners as the original founders have retired over the years. We do not have a managing partner or management committee – management decisions are made by all the partners. Our compensation is based upon compensation participating percentages set at the beginning of each year based upon the recommendation of a rotating member compensation committee, which must be approved by the full partnership. These percentages are then used to allocate…
Continue Reading Partner Compensation in Law Firms – Objective vs Subjective Approaches

Question:
I am the firm administrator for an eight-attorney firm in Nashville, Tennessee. I started this position approximately six weeks ago. While I have worked in the legal field for many years as a paralegal, this is my first position as a legal administrator. I have done bookkeeping for several firms over the years. The firm has never had a budget and has asked me to prepare one for the upcoming year. I am not sure where or how to start. Any help or ideas that you may have would be appreciated.
Response: 
You will want to consider two budgets.
Continue Reading Law Firm Financial Management – Creating a Budget the First Time

Question: 
I am the owner of a five attorney firm, myself and four associates, in Bakersfield, California. While we are a general practice firm, much of our practice is focused on commercial real estate, estate planning/probate, and corporate/business law. All of the associates have been with the firm over five years. The associates are paid a salary plus a bonus based upon their individual working attorney collections that exceed a quarterly threshold. While there have not been any complaints with this system I am not sure that it is the best system and that I am providing the right set…
Continue Reading Associate Attorney Compensation – Incentives Beyond Billable Hours and Working Attorney Collections

Question: 
I am the owner of an estate planning firm in the Western Chicago suburbs. My practice is a specialized practice that focuses on estate planning, estate administration, estate litigation, and elder law. While I was a solo practitioner for many years approximately four years ago I brought in an associate that had three or four years experience with an other estate planning firm. Unfortunately, he just gave me his notice and advised that he was leaving to join another firm. We have too much work for me to handle by myself and I am going to need another attorney…
Continue Reading Finding and Training in a New Estate Planning Attorney

Question: 
I am a solo real estate practitioner in Long Beach, California. I have one paralegal that works in the firm. I am 70 years old a would like to retire in the next couple of years. What are my options?
Response:
Solo practitioners have the greatest challenge since they have no associates or anyone in place to transition the practice. Therefore, the practitioner must both hire and groom an associate that could buy the firm or become a partner and buyout the owner’s interests, sell the firm to another firm, or merge with another firm. Other options would be…
Continue Reading Succession-Exit Options for Law Firm Solos