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Best Practice Tips

  • February 7, 2018 | Practice News
    Best Practice Tips: Partner Withdrawal from a Law Firm

    Asked and Answered

    By John W. Olmstead, MBA, Ph.D, CMC

    Q. I am a partner in a law firm in Walnut Creek, California. There are four other partners and three associates. We are a general practice firm and our clients are primarily individual clients. I have a good relationship with the other partners. I have decided to leave the firm and join a larger firm in San Francisco. I have notified my partners in writing of my intention to leave. They are supportive of my decision, and I anticipate an amicable withdrawal. This is the first time a partner has left the firm for any reason, so we are not sure what the next step is. Please share with us any thoughts that you have.

  • January 31, 2018 | Practice News
    Best Practice Tips: Hiring a Legal Administrator in a Small Firm

    Asked and Answered

    By John W. Olmstead, MBA, Ph.D, CMC

    Q. Our firm is an eight-attorney estate planning firm in the Chicago area. Our firm has grown from two attorneys to our present size in four years. We have five partners and three associates. Firm management is currently handled by a managing partner. The partners have been discussing hiring a legal administrator. We were thinking of hiring someone with experience in managing law firms and a solid background in human resources and bookkeeping/accounting. One of our clients suggested that we hire someone with a strong academic background, such as an MBA or CPA who has served as the CEO of a mid-size corporation. What are your thoughts?

  • January 24, 2018 | Practice News
    Best Practice Tips: Client Satisfaction Surveys in Law Firms

    Asked and Answered

    By John W. Olmstead, MBA, Ph.D, CMC

    Q. Our firm is a 17-attorney firm is San Diego. We are a boutique business litigation firm and we represent companies of all sizes. We represent several Fortune 500 companies. I am a member of our three-member marketing committee and during our last meeting one of our members suggested that we consider a formal survey of our clients. What are your thoughts regarding client satisfaction surveys? Is this something we should consider?

  • January 17, 2018 | Practice News
    Best Practice Tips: Attorney and Staff Performance Compensation

    Asked and Answered

    By John W. Olmstead, MBA, Ph.D, CMC

    Q. I am the firm administrator for a 22-attorney firm — 12 partners and 10 associates — in downtown Chicago. I have been with the firm for seven years. The firm pays associates and staff a base salary plus a year-end discretionary bonus, which is the same for all staff and associate attorneys. The firm does not do performance reviews and honestly, I believe the raises are simply an annual cost of living adjustment and the year-end bonuses a gift. Many of our associates and staff have been here for many years and salaries are getting out of control. We would welcome your thoughts.

  • January 10, 2018 | Practice News
    Best Practice Tips: Increasing Case Volume in a Personal Injury Law Firm

    Asked and Answered

    By John W. Olmstead, MBA, Ph.D, CMC

    Q. I am a partner in a two-partner personal injury firm in Tampa, Florida. We do not have any associate attorneys. Our firm only handles personal injury work. We have been in practice for 35 years and have been very successful over the years. However, the last few years have been terrible. Adjusters are not settling cases and the days of three-times specials is over. Our case volume is down, the quality of cases that we have in our inventory is far below what we had in previous years, and our revenues are down substantially. Cash flow is awful. We have had to live off of our credit line for the past year. Our main source of business over the years has been referrals from past clients and other lawyers, yellow pages, and our very basic website. We would appreciate any thoughts and suggestions that you may have.

  • January 4, 2018 | Practice News
    Best Practice Tips: Law Firm 2018 Initiatives and Goals

    Asked and Answered

    By John W. Olmstead, MBA, Ph.D, CMC

    Q. Our firm is an 18-attorney insurance defense firm located in Los Angeles. We have six partners and 12 associates. We represent insurance companies in personal injury and property claims. Over the last five years, our growth and profitability have been flat. We feel that we have enough work to reach our goals, but we don’t think our people are energized. We have a billing requirement of 2,000 billable hours but few of our attorneys are hitting them. The partners met a few weeks ago to set goals for 2018. The firm does not have a business or strategic plan. Do you have any thoughts on 2018 goals and how best we can implement?

  • December 26, 2017 | Practice News
    Best Practice Tips: Associate Attorneys as a Succession Strategy

    Asked and Answered

    By John W. Olmstead, MBA, Ph.D, CMC

    Q. My firm is a Tucson, Arizona business litigation firm. We have four founding partners and four associates. The partners are in their late fifties and early sixties. All four of us are contemplating retirement in the next 8–10 years. We are assuming that our associates will be willing to step up and buy out our interests. We have not had any discussions with our associates concerning this. Your thoughts are appreciated.

  • December 20, 2017 | Practice News
    Best Practice Tips: Expectations for Associate Attorney Billable Hours

    Asked and Answered

    By John W. Olmstead, MBA, Ph.D, CMC

    Q. Our firm is a six-attorney estate planning/probate firm in Mesa, Arizona. There are three partners and three associates in the firm. We have had associates for the last eight years and have never made money from them. Last year we decided to implement a billable hour expectation of 1,800 hours for the associates. A year later, no one is even close. Only one associate has reached 1,500 hours. Is our expectation reasonable? Your insight is appreciated.

  • December 13, 2017
    Best Practice Tips: Law Firm Owners Use of a Leadership Team

    Asked and Answered

    By John W. Olmstead, MBA, Ph.D, CMC

    Q. I am the owner of a 14-attorney law firm in South Bend, Indiana. The firm is a health care firm that represents various medical facilities in the area. I am the managing attorney who makes all of the management decisions, and all of the other attorneys in the firm are associates. I also bring in the bulk of the firm's clients. I want to retire in the next five years and would like to sell my interests to three associates in the firm. However, I am unsure if they will be good partners with each other, whether they have the management and client development skills to lead the firm, or even if they would want to be partners. My other option would be to merge with another firm. I prefer to sell my interests to the three associates rather than merge if at all possible. What are your thoughts?

  • December 6, 2017 | Practice News
    Best Practice Tips: Law Firm Partner Compensation

    Asked and Answered

    By John W. Olmstead, MBA, Ph.D, CMC

    Q. I am a founding partner of a two-partner firm. We have been in business for three years. We have six associates and our practice focuses on health care law. My partner and I each have a 50 percent interest in the firm and our compensation is based on our ownership percentages. We split firm profits 50/50. Since starting the firm, I have been bringing in substantially more fees that my partner. This year I will bring in 65 percent of firm fees. I am getting frustrated and feel that our compensation system is unfair and needs to be changed. I would appreciate your thoughts.