Practice Management

Law firms looking to expand into new markets must determine the best strategy. Some start from scratch, open a satellite office and attempt to grow it. Others seek to buy existing law firms and put them under their umbrella. The potential pros and cons of each strategy are below. Does Buying Existing Law Firms Make Sense? One of the most common ways some law firms expand into new markets is to buy an existing law firm. In many respects, most law firms consider purchasing an existing law firm the go-to way to grow. Many assume they can buy the firm and hit the ground running. One pro of this approach is that the existing law firm probably already has clients. When the law firm has clients already, it may feel that it can begin making a profit on the new venture relatively quickly, as opposed to starting a new office with no clients. Another pro is that the law firm may already have a brick-and-mortar office, employees, and the equipment to run it. Thus, the law firm may not have to invest much time and money in locating an office, getting the equipment and supplies, and interviewing staff. Lastly, many law firms assume their lawyers have built positive goodwill in the community. With this goodwill, many theorize that repeat clientele and referral-based businesses will readily come to the firm. What Are the Cons of Buying an Existing Law Firm? While buying an existing law firm may have some pros, there are also cons that law firms must consider. One is the price to buy the existing law firm. If an existing law firm is looking to buy at a reasonable or below-market price, it may be attractive to purchase the existing office. But with many existing law firms, they may be looking for a high or top dollar price to sell. For many law firms, buying out an existing law firm can be substantially more expensive than simply opening a brand-new office. Another con is that many law firm employees conduct themselves similarly. When another law firm buys them out, it might be unrealistic to expect the employees to instantly integrate into that purchasing firm’s way of doing things. For this reason, starting anew with employees who are trained in the purchasing firm’s processes can be more manageable. Third, while an existing law firm might have an existing brick-and-mortar office and equipment, most law firms can just as easily purchase or rent the same space or equipment at a similar price. By not purchasing an existing law firm, the law firm is also not signing onto another law firm’s debt, leases, or contracts. Lastly, while a prior law firm may have some reputation within the community, there is little telling whether that reputation is good or bad or worth purchasing. For many law firms, it might make sense to open a new expansion based on their enterprise goodwill. While some law firms may want to consider buying an existing law firm, many ought to open a brand new office, rent space, hire new employees, and open the expansion without purchasing an existing one. To open a new office, most law firms can start with single-attorney executive space, market appropriately, and get larger space once there are enough clients for that to make sense.

The average turnover for AmLaw 200 firms is 26.3 percent, according to analysis by Decipher Investigative Intelligence—so simply put, for every four lawyers at your firm, one will swap out every year. “Turnover” can be a loaded term, and one that is frequently misunderstood. Let’s start with the math: To determine the state of turnover in the legal profession, Decipher examined every firm in the AmLaw 200 to chart lawyer hires and departures over the past four years. This total accounts for a firm’s total “volatility”—the sum of people entering and exiting. We then divide the volatility by the firm’s total headcount; this resulting turnover rate measures the extent of change happening in a given year. This is the best way to think about turnover: a measure of the change happening to a firm, its roster and its culture. Just like change itself, turnover is not inherently “good” or “bad,” as two firms with dramatically different circumstances can have the same score. Consider two firms, both with 1,000 lawyers: Firm A is widely known for having a collaborative culture; in a given year, no one leaves, but it acquires a team of 300 lawyers, all with portable business and positive attitudes. Firm B loses its entire corporate practice—300 lawyers strong—in a dramatic exit that generated dozens of headlines and lost far more clients. Both have the same turnover rate: 30 percent. So, to assess your own turnover, you can start with the quantitative, but it’s imperative that you dive into the qualitative. While the specifics will vary for every firm, here is a helpful approach to better understand (and act upon) turnover at your firm. Start with a straightforward sort. Compile lists of all lawyers who joined and left your firm within a given year. From there, it’s helpful to further segment: Voluntary: Lawyers who joined or left of their own accord. Involuntary: Lawyers whose decision was guided by other forces; in addition to terminations and layoffs, this can include mergers or acquisitions, as 99 percent of the individuals acquired were not directly involved in the negotiation. 

It seems as though every day, there is a story in the legal news about a well-known law firm facing a disqualification motion. While disqualification motions are being filed more frequently, that is only half the story. [1] Such motions are often filed under seal, either by counsel seeking to avoid publicity or clients who do not want to air their dirty laundry (such as employment discrimination claims, white-collar criminal matters, etc.) in a public forum. Additionally, law firms may quietly withdraw when initially faced with a well-grounded disqualification motion. What Are the Risks of Disqualification Motions? When a lateral partner moves to a competitor, there is a risk that the partner’s former clients, who may become averse to the new firm, may file disqualification motions. However, the risk may not be realized unless the new client engages in litigation with the lateral partner’s prior client, possibly months or years later. Disqualification motions tend to be more prevalent in intellectual property litigation, particularly in the bioscience and chip technology sectors, because there are relatively few practitioners in those highly technical areas. Given the frequency of corporate—and especially intellectual property—litigation, disqualification motions are often venue in Delaware courts. The state has a well-developed law on disqualification and tends to be somewhat hostile to such motions. Delaware is generally less concerned about whether a conflict of interest constitutes an ethics violation, which can be raised in a bar complaint. Rather, the focus is on whether the conflict undermines the legitimacy of the process and causes actual harm to the client. The risk of disqualification motions can be considerable for clients engaged in high-stakes litigation. This includes losing their counsel of choice, who are familiar with the case, and having to retain successor attorneys to get up to speed in a complex matter. Disqualification can likewise lead to a claim for legal malpractice or breach of fiduciary duty, as illustrated in the April 2022 decision of RevoLaze LLC v. Dentons in the Eighth Appellate District of the Ohio Court of Appeals. [2] In the Dentons case, the law firm’s primary sin was allegedly not telling the client about the risk of disqualification early in the attorney-client relationship. From a risk management perspective, even when a law firm concludes that a conflict does not exist, it should consider disclosing any issue to the client, which could potentially trigger a disqualification motion. It should also explain that while the firm does not believe a conflict exists, the firm wants the client to be aware of the issue and offer to discuss any questions or concerns the client may have. That step prevents the client from later claiming that had it known of a conflict, it would have made a different decision. Disqualification motions can have profound financial implications for law firms that earn large fees in complex and protracted litigation, particularly in the intellectual property field. Thus, law firms seeking to preserve attorney-client relationships in high-profile cases may pay outside counsel to oppose disqualification motions. Alternatively, in close cases of disqualification, clients may be willing to pay the attorney’s fees to retain access to their counsel of choice. Risk Management Considerations for Law Firms To reduce the risk of disqualification motions, some law firms proactively include advance conflict waivers in their engagement letters. Such waivers are more likely to be effective when working with a sophisticated client. [3] Two recent cases— IBM Corp. v. Micro Focus (US) Inc., decided in May 2023 by the U.S. District Court for the Southern District of New York, and SuperCooler Technologies Inc. v. The Coca-Cola Co., decided in July 2023 by the U.S. District Court for the Middle District of Florida [4] —suggest that such prior consent, obtained via a well-drafted advance conflict waiver, can be effective in opposing disqualification. These two cases identify elements of an effective prospective conflict waiver: A description of the types of conflicts that might foreseeably arise in the future; and The terms that would allow the law firm to undertake adverse representation that is not substantially related to a prior representation of the client, including taking steps to protect the client’s confidential information. Another risk management best practice is to identify and analyze potential conflicts of interest at the onset of the attorney-client relationship. This is often a labor-intensive process but a valuable risk mitigation measure. It involves reviewing attorney time records and interviewing lawyers to determine the scope of the prior representation and what confidential information the attorneys and law firm may possess. If a law firm believes that a former client could raise a conflict, it is advisable to inform the new client as soon as possible and obtain that client’s informed consent going forward. Careful vetting of lateral attorneys is likewise imperative to reduce the possibility of facing a disqualification motion. Law firms often want to move quickly in onboarding a new partner. However, it is crucial to complete a thorough conflicts check. Although not common, some law firms go back as far as three to five years. Law firms should likewise consider including provisions in their engagement letters containing: A disclaimer of future duties after termination of the attorney-client relationship, and A sunset provision stating that if the law firm has not performed any legal work for the client in 12 months, it will be treated as a former client for conflict purposes. Given that concurrent and former conflicts of interest are imputed to entire law firms, it is also prudent to have robust screening protocols to ensure that lawyers with potential conflicts cannot access confidential client information on a law firm’s server. Disqualification may be avoided where a law firm can demonstrate that it promptly and carefully screened allegedly conflicted counsel. However, states take different approaches to lateral attorney conflicts, so law firms must be familiar with the imputation rule in the particular jurisdiction in which the lateral practices. Illinois, where I practice, is rare in that law firms can address a lateral conflict via an ethical wall. Some states require a waiver, and others will permit an ethical wall if the lateral has minimal involvement, although each state has its own test for what level of involvement is permitted. Once a disqualification motion has been filed, it is recommended that a law firm promptly consult with its client, evaluate the chances of prevailing, and obtain its client’s informed consent to oppose the motion. If the conflict is serious, it is often best to withdraw. If a decision is made to fight the disqualification, usually affidavits must be submitted to prove the attorney’s limited involvement in a prior matter or lack of access to confidential information. Key Takeaways Disqualification motions appear to be proliferating in both public and private forums, including arbitration proceedings. Law firms need to be aware of the types of conflicts that most often lead to disqualification and the types of attorneys who may be affected. The exposure to such motions can be reduced by risk management, including advance conflict waivers and other provisions in engagement letters, careful vetting of lateral attorneys, and promptly implementing screening protocols. Even if a disqualification order is entered, it does not necessarily mean that civil liability or attorney discipline will follow—particularly if the conflict was technical and the client was not harmed. [1] Many of the ideas in this article are from a panel that the author moderated in March of 2024 at Hinshaw & Culbertson LLP’s 23rd annual Legal Malpractice and Risk Management Conference on “The Recent Explosion in Disqualification Motions” with panelists John Villa, a prominent legal malpractice litigator from Williams & Connolly, and Laura Giokas, the general counsel at BCLP. [2] RevoLaze LLC v. Dentons US LLP, 2022-Ohio-1392, 191 N.E.3d 475 (Ct. App.). [3] ABA Model Rule 1.9, Comment [22]. [4] IBM Corporation v. Micro Focus (US), Inc., 2023 U.S. Dist. LEXIS 100246 (S.D.N.Y. May 30, 2023); SuperCooler Technologies Inc. v. The Coca-Cola Co. et al., 2023 U.S. Dist. LEXIS 145316 (M.D. Fla. July 17, 2023).

Regularly, we read from news articles that an entity recently started its own business and entered into a business transaction or agreement with another entity. In response, we sometimes assume such an agreement or transaction was conducted at “arm’s length,” meaning the two parties to the agreement or transaction are independent and generally do not share a close relationship with each other, and often are presumed to possess equal bargaining power. In addition, one party to the agreement or transaction would not have any heightened duty to correct mistakes and exercise extra care in connection with the inexperienced counterparty. However, in practice, not every transaction is conducted at arm’s length and the nature of a business relationship between two parties can vary depending on the relevant factual circumstances. Indeed, special relationships exist that do not arise out of an ordinary arm’s length business transaction. One of them is a fiduciary relationship between lawyer and client. As Virginia courts have correctly put it, “[a] fiduciary relationship exists in all cases when special confidence has been reposed in one who in equity and good conscience is bound to act in good faith and with due regard for the interests of the one reposing the confidence.” In other words, a fiduciary in the relationship would “hold a position of trust and confidence with respect to another’s financial or personal benefit,” giving rise to specific duties of good faith and responsibility. The lawyer-client relationship is such a fiduciary relationship. As such, a lawyer must “deal honestly with the client, and not employ advantages arising from the lawyer-client relationship in a manner adverse to the client.” Rest §16(3). While ethical rules governing lawyers vary by state, all fifty states and the District of Columbia have adopted legal ethics rules based at least in part on the Model Rules of Professional Conduct by the American Bar Association (“MR”). Section 1.8(a) of the MR provides the following: (a) A lawyer shall not enter into a business transaction with a client or knowingly acquire an ownership, possessory, security, or other pecuniary interest adverse to a client unless: (1) the transaction and terms on which the lawyer acquires the interest are fair and reasonable to the client and are fully disclosed and transmitted in writing in a manner that can be reasonably understood by the client; (2) the client is advised in writing of the desirability of seeking and is given a reasonable opportunity to seek the advice of independent legal counsel on the transaction; and (3) the client gives informed consent, in writing signed by the client, to the essential terms of the transaction and the lawyer’s role in the transaction, including whether the lawyer is representing the client in the transaction. Simply put, lawyers may not drive hard bargains in dealings with clients unless the terms of the dealings are fair, reasonable, and fully disclosed, and the clients were properly advised of, and subsequently provided written, informed consent, to the terms. The applicability of the aforesaid fiduciary principle and ethical rules is not just limited to matters concerning the lawyers’ representation but rather extends to all dealings between the lawyers and their clients, including the lawyers’ business transactions with clients, and their acquisitions of ownership, security, or other financial interests adverse to the clients. While the scope of the fiduciary principle and ethical rules is quite broad, it does have limits. The ethical rules under MR 1.8(a) generally do not apply to standard commercial transactions between the lawyer and the client for products or services that the client generally markets to others. For example, if a lawyer of the firm that happens to represent McDonald’s in a commercial litigation matter stops at a McDonald’s drive-thru lane and purchases some chicken nuggets, such purchase will likely be deemed one of the previously mentioned standard commercial transactions, and the ethical duty under MR 1.8 (a) would not be imposed on the lawyer for such transaction. This is because the chicken nuggets would cost the same at McDonald’s for the lawyer as it does for any person, and the lawyer would not have an unfair advantage over the client in the purchase of the chicken nuggets. Outside the area of standard commercial transactions, the fiduciary principle and ethical rules strictly govern the lawyer’s conduct. Given that a client should not be in a position to hire a third lawyer to determine whether his/her current lawyer’s conduct is ethical or consistent with the fiduciary principle in the first place, the client would need a lawyer who can properly assume the stance of objectivity and impartiality whenever he/she advises his/her client and ensure that their dealings with the client are fair and reasonable, and in the client’s best interest.

Whether you’re confident in your social media skills or still think it’s something “the kids use,” social media can give your networking efforts a significant boost. Social media is just one tactic in your toolbelt, and how you use it depends on your goals. Let’s explore eight ways social media can enhance your professional networking and development. If any of these align with your goals, it’s time to make social media a key component of your strategy. 1. Professional Networking Social media platforms, especially LinkedIn, offer incredible opportunities for professional networking. Lawyers are particularly comfortable with LinkedIn, which allows you to connect with peers, join professional groups, and engage in discussions. By following thought leaders, industry experts, and professional organizations, you can stay updated on legal trends, developments, and best practices. Tip: Follow relevant hashtags that resonate with your practice areas or client interests, and engage with content in those spaces. 2. Client Outreach & Education Social media is a great way to raise awareness about your services. Posting educational content ensures that your clients see you as a go-to resource. However, it’s crucial to know where your audience is. While LinkedIn is excellent for engaging with other lawyers, your clients might be hanging out elsewhere. Find the platforms where your clients are most active and meet them there. 3. Storytelling for Deeper Connections Storytelling is one of the most powerful tools on social media. Sharing success stories, client testimonials, or your personal journey can foster deeper connections with your audience. Whether it’s highlighting the impact of your legal work or demonstrating your expertise, stories make your posts more engaging and humanize your work. Interested in learning more about storytelling in legal? I’d be happy to chat further on how to effectively use this tool. 4. Advocacy & Promoting Causes Social media can be an effective platform for promoting causes, raising awareness for social justice issues, and advocating for legal reforms. By sharing success stories and engaging with community-based initiatives, you can build support for important legal work. 5. Building Community Relationships Social media helps you build stronger relationships within your community. You can answer general questions, provide real-time updates, and promote workshops or community events. It’s also a great platform to promote legal clinics and reach a wider audience. Remember: Always be mindful of the platforms your community members use most frequently. 6. Professional Development LinkedIn provides excellent access to webinars, online courses, and resources shared by other attorneys. By staying engaged with these opportunities, you can continue developing your professional skills and expanding your knowledge. 7. Building Your Reputation By consistently sharing valuable content and engaging with other professionals online, you can establish yourself as a knowledgeable and trustworthy legal professional. Social media also offers an opportunity to connect with potential collaborators, including legal professionals, nonprofits, and community organizations. 8. Managing Your Social Media Presence Maintaining professionalism on social media is crucial. Always uphold confidentiality and legal standards when engaging online. To build engagement and trust, be consistent with your posting, respond to interactions, and use a mix of multimedia to make your content more engaging. Maximizing Your Strategy: Connecting with Community Partners Even if your focus is on in-person engagement, social media offers valuable insights. Here’s how to leverage it: Follow them on social media: Learn more about your community partners by following them on platforms like LinkedIn to stay updated on their latest news and events. Google Alerts: Set up alerts for mentions of your key contacts in the news, helping you stay informed about their activities. Leverage mutual connections: LinkedIn makes it easy to see if you have mutual connections within organizations you’re trying to engage. Utilize these relationships to build stronger ties. Networking at Events: Enhancing Your Efforts If you’re attending a networking event, social media can be a powerful tool before and after: Connect with attendees: If you have access to an attendee list, reach out via LinkedIn with a personalized note explaining why you’re connecting. If not, follow up with people you meet after the event. Build thought leadership: Consider developing your own thought leadership content based on the interests of your target companies. Engage with their posts by commenting, sharing insights, and starting conversations. Developing Your Own Platform While platforms like LinkedIn are great for sharing content, I always advise creating your own platform—a place where you own your content. This could be a blog or a personal website. Why? Social media platforms can change or disappear, taking your content with them. Having your own space ensures you maintain control over your thought leadership. Final tip: Use relevant hashtags and engage with the discussions happening in the comments and replies. Sharing posts of interest to key contacts helps keep you on their radar. Engage Fully with Your Social Media Presence When using LinkedIn, identify a few groups that align with your interests. Engage by asking questions, posting comments, and sharing relevant content. This active participation will not only expand your network but also generate new content ideas and opportunities for collaboration. By incorporating these strategies, social media can transform your networking efforts, making it easier to connect with key contacts, develop professional relationships, and build your reputation as a thought leader in the legal community.

Management is about proper execution. More specifically, management is about executing the visions of your company’s leadership. Managers work in the present while leaders work in the future. Managers of people need to focus on how to get the people they manage to execute. Like many roles, there are any number of ways to manage people. Some people micromanage their teams because they have the need to control what their subordinates or employees do, or they don’t trust their team members to execute on their own. There can be good reasons, or at least what feel like good reasons, to do so. For instance, many managers argue that the product is going out under the manager’s name or the name of the company and it’s up to them to make sure it’s as good as can be. Those types of managers have a blind spot and don’t realize that having control of the product or goal is different from micromanaging the process to reach that product or goal. I think a better way to manage is to guide your team while giving them the freedom and flexibility to work towards the end goal. A manager may think he or she has the best way to manufacture the widget or is a better writer than whoever is drafting something that will go out under their name. If you train your people well and then let them control the process, amazing things can happen. George S. Patton once said, “If you tell people where to go, but not how to get there, you’ll be amazed at the results.” This is how products or processes are improved because innovation happens when people have a starting point and an ending point, as well as the opportunity to think outside of the box. It also provides great teaching moments for managers and their team. In my world this means letting a younger attorney on my team lead a case or write the first draft of a pleading or document. In doing so, it doesn’t mean I have no say on what the plan or final work product will be, but I trust that once I provide the big picture, what we’re dealing with, and where we need to go that my team members can choose the path to get there. I regularly am intrigued and amazed at the ideas people come up with and use that I wouldn’t have thought of that result in work that reflects well on me and the entire team. Giving team members ownership in the process is a positive for everyone. I challenge you to think about all this the next time you want to tell someone you manage exactly how to do what you’re asking them to do. Try telling them what you need and let them choose the path. You likely will get the same result as if you micromanaged them and probably will be surprised by how they got there. Either way you get what you need, but one path leaves the door open for innovation and positive feelings for your team members who know you trust them to do their job.

It’s easy to get caught up in client work and forget about one of the most powerful growth tools right in front of you—other lawyers. Sure, marketing directly to potential clients is important, but have you ever thought about the value of referrals from fellow attorneys? Lawyers who don’t practice in your area can be a great source of new clients, especially when they trust you to handle the matters they can’t. Creating and maintaining a strong network of referral partners is essential to growing your practice. It’s about connecting with other lawyers who are looking for someone they can count on when their clients need help outside their expertise. Here’s how you can start making those connections and turning them into real opportunities to grow your practice. 1. Identify Your Target Audience The first step in marketing to other lawyers is identifying who your ideal referral sources are. Not every lawyer is a potential referral partner, so it’s important to be strategic about where you focus your efforts. Consider the following: Practice Area Compatibility: Target lawyers who do not practice in your area but whose clients might need your services. For example, a family lawyer might find referrals from an estate planning attorney, as family matters often involve estate considerations. Firm Size and Structure: Boutique firms and general practice firms are often good sources of referrals, as they may not have specialists in every area. Even within larger firms, there may be departments that can benefit from your expertise. Industry Focus: Consider the industries your target lawyers serve. If you specialize in insurance defense, for example, lawyers who work in corporate law, real estate or employment law might encounter cases where your expertise is needed. Actionable Tip: Create a list of potential referral sources based on these criteria and prioritize those who are most likely to encounter clients with needs in your practice area. 2. Educate Your Target Audience Once you’ve identified your target audience, the next step is to educate them about your services. The goal here is not to teach them your practice area in detail or go into your elevator pitch, but to help them understand how your expertise can benefit their clients. Tailored Communication: Speak to your audience at their level of understanding. A lawyer specializing in corporate law may not need to know the intricacies of immigration law, but they should understand the basics of how immigration issues might affect their clients’ hiring practices. Thought Leadership: Establish yourself as a thought leader by contributing to newsletters, speaking at relevant bar association meetings, or sponsoring events. For instance, if you specialize in healthcare law, you might write an article for a bar association’s healthcare section on recent trends in hospital mergers. Create Educational Content: Develop alerts, newsletters, seminars, webinars and in-house presentations that are specifically aimed at your target audience. For example, a tax lawyer could offer a “lunch and learn” session for corporate lawyers, providing valuable insights into tax considerations for mergers and acquisitions. Actionable Tip: Develop a series of short, informative presentations or articles that address common issues your target lawyers might encounter. Offer to present these at their firm or contribute them to their client communications. 3. Build Trust Through Networking Networking is a cornerstone of building any successful referral network. However, in the legal field, where referrals are often based on trust, personal relationships are particularly important. One-on-One Meetings: Schedule lunches or coffee meetings with potential referral partners to discuss your practice areas and how you can support their clients. These informal settings provide an opportunity to build rapport and trust. Group Networking: Join bar association sections or committees that are relevant to your target audience. This allows you to network with multiple lawyers at once and position yourself as a knowledgeable and approachable resource. Follow-Up: After initial meetings, follow up with a thank-you note or an offer to provide additional information. Consistent follow-up helps keep you top-of-mind and reinforces your commitment to the relationship. Actionable Tip: Attend at least one networking event per month and make a goal to connect with a specific number of new contacts at each event. Follow up with personalized messages to continue building the relationship. 4. Add Value to Your Relationships To encourage other lawyers to refer clients to you, it’s important to consistently add value to your relationships. By providing tools and resources that help them better serve their clients, you position yourself as a valuable partner. Guest Posts and Speaking Engagements: Offer to write guest posts for the firm’s blog or speak at a client seminar. This not only showcases your expertise but also helps the firm enhance its offerings to clients. Resource Development: Prepare brochures, one-page explanation sheets, or other materials that lawyers can give to their clients when they encounter issues related to your practice area. This can be especially helpful in complex areas of law where clients need clear, concise explanations. Collaborative Opportunities: Offer to collaborate on CLE presentations, white papers, articles, podcasts, social media content or joint client seminars. These partnerships can help strengthen your relationship with the referring lawyer while providing added value to their clients. Actionable Tip: Develop a set of client-facing materials that you can share with referral partners. Make sure these materials are branded with your contact information so that they reinforce your role as the go-to expert. 5. Reframe Your Professional Profile Your professional bio—on your website and on LinkedIn—should reflect your ability to collaborate with other lawyers and support their clients. Highlight Collaboration: Include examples of how you’ve successfully worked with other lawyers to solve complex client issues. For example, “Regularly collaborate with corporate attorneys to address immigration challenges in international business transactions.” Focus on Results: Your bio should emphasize the results you’ve achieved for clients through these collaborations. This demonstrates not only your expertise but also the tangible benefits of working with you. LinkedIn Optimization: Make sure your LinkedIn profile is optimized to highlight your collaborative skills and willingness to work with other lawyers. This can help you stand out to potential referral partners who are searching for experts in your field. Actionable Tip: Review and update your bio and LinkedIn profile to emphasize your experience in working with other lawyers and the positive outcomes you’ve achieved for clients through these collaborations. Expanding Your Influence Through Legal Referrals Marketing to other lawyers requires a thoughtful approach that emphasizes education, trust-building and value creation. By identifying the right referral partners, educating them about how your services benefit their clients and consistently adding value to the relationship, you can build a robust referral network that drives new business opportunities. Remember, successful referral relationships are built on trust and mutual benefit. As you implement these strategies, focus on creating genuine connections and demonstrating your commitment to helping both the referring lawyer and their clients succeed. Over time, this approach will not only generate new referrals but also expand your influence within the legal community, positioning you as a trusted expert in your field. How to Build a Network of Referral Partners To build a network of referral partners, start by getting involved in the legal community. The key is to be proactive—reach out, introduce yourself and find commonalities. Over time, these connections can evolve into valuable referral relationships. Attend industry events, bar association meetings and networking gatherings where you’re likely to meet other lawyers. Engaging in online communities, such as LinkedIn groups or legal forums, can also be a great way to connect with potential referral partners. Volunteering for committees or speaking at conferences can help you showcase your expertise and build relationships with other professionals who might refer clients to you. Key Takeaways to Building a Referral Network From Other Lawyers Identify non-competing lawyers with complementary practice areas as potential referral partners. Educate your target audience on how your expertise can benefit their clients without overwhelming them with details. Build trust through consistent networking and follow up. Add value by offering collaborative opportunities like CLE presentations or joint seminars. Reframe your bio and LinkedIn profile to emphasize your collaborative skills and successes. By following these best practices, you can effectively market yourself to other lawyers, build a strong referral network and grow your practice through mutually beneficial relationships.

SWOT is not just a fancy business acronym—it is a powerful yet straightforward framework for understanding and elevating your law firm. If you’re like a lot of lawyers, you may have launched your solo firm after spending some time at a larger practice. You had a specialization and you brought a few clients with you, but now you’re ready to dig deeper. You see the marketplace changing and you see your competitors growing and adapting. Here’s a quick intro to SWOT analysis for lawyers. What Is a SWOT Analysis? A SWOT analysis is a strategic planning tool that helps identify a business’s Strengths, Weaknesses, Opportunities and Threats. This is a powerful tool for any business, but it’s especially valuable in the early stages of launching your firm. For lawyers, SWOT analysis gives you a firm foundation to locate your business in the context of the wider marketplace—so you can predict and prepare for threats and opportunities ahead of time. Let’s explore the key elements of SWOT. The outcome will be a clear framework for making decisions about your firm. You can gain insights into things like operational improvement, marketing strategies and client service optimization. Strengths Strengths are the internal, positive factors that give your firm a competitive edge. In this step, identify what your firm does better than others. Then you can double down on those strengths, highlighting them in your marketing efforts and leveraging them to stand out from other firms. Here are some examples: Niche expertise in areas like family law, intellectual property or environmental law Personalized client service that creates strong client relationships and referrals Reputation for winning high-stakes cases or delivering consistent results Strong network of professional connections in the legal community Efficient operations using advanced legal software to streamline case management Weaknesses Weaknesses are internal limitations that could hinder your firm’s success. Here, it’s important to be deeply honest about where your firm falls short. You know your firm best, after all. Identify your own weaknesses so you can address them, rather than allow your competitors to use them against you. Here are some examples: Limited staff or lack of support personnel, making it hard to manage large caseloads Inexperience in marketing or attracting new clients beyond word-of-mouth Underdeveloped online presence with a dated website or no content strategy Inconsistent cash flow due to reliance on a small number of clients or irregular case wins Overdependence on one area of law, leaving the firm vulnerable to changes in demand Opportunities Opportunities are external factors that your firm can leverage. These factors can change often since they’re based on emerging trends, new technology, the legal marketplace, regulations and your competitors’ behavior. You’re looking for anything that could generate new demand. For example, evolving privacy laws or increasing demand for online legal services can provide a lucrative avenue for growth if you position your firm to meet these needs. Get there first and you’ll be the top pick for legal help. Here are some examples: Growing demand for specialized legal services, such as cybersecurity or cannabis law Legal tech solutions that improve efficiency and client communication Changing regulations in industries like real estate or healthcare, opening new client bases Expanding remote legal services to offer flexibility and reach new markets Collaborations with non-legal professionals like financial advisors or consultants Threats Threats are external challenges that might negatively affect your firm’s success. Some threats you can predict, others you can’t. For instance, you can anticipate some economic downturns but it’s trickier to predict changes in client expectations. After you identify threats facing your firm, you can prepare contingency plans. Let’s say you expect larger firms in your area to expand and compete for your clients. You could address this threat by strengthening your niche or investing in client relationships to increase retention. Here are some examples: Increased competition from larger firms or new startups in your area Economic downturns, reducing demand for certain legal services Client expectations shifting toward lower fees or more flexible payment structures Technological disruptions, such as automation reducing the need for traditional legal services Legal reforms that limit the scope of your practice or introduce new regulations Tips: SWOT Analysis for Lawyers Seriously, make a cup of coffee and commit to this. SWOT analysis for lawyers is absolutely worth the time and energy. If you make time for this activity amidst all your other obligations, your future self (and your growing team and burgeoning roster of clients!) will be incredibly grateful. Be objective: Don’t sugarcoat weaknesses or exaggerate strengths. Create an action plan: Don’t just analyze—act. After completing your SWOT analysis, prioritize improvements. If weaknesses include technology gaps, for example, invest in case management software. If you spot growth opportunities in a specific legal area, start marketing your expertise. Leverage strengths immediately: Identify your firm’s unique selling points and integrate them into your marketing strategy. If your strength is client communication, highlight that on your website, client testimonials and social media. Revisit regularly: Do this SWOT exercise every 6–12 months to stay ahead. Law firm dynamics and market conditions change, so revisit your notes frequently. Review and Next Steps Bolster your business dreams with planning and strategy. 30 minutes today on a SWOT analysis will set you up for years of success. Strengths, weaknesses, opportunities and threats—what makes your firm unique?

Many firm managers and administrators have experienced the challenge of asking partners to comply with administrative tasks such as entering time, reviewing billings and collecting aged receivables. Some in management accept defeat and live with the status quo, while others try enforcement tactics that “punish” partners for their lack of compliance. The punitive approaches include fining partners for missing time and more extreme actions such as withholding draws, distributions or paychecks, which can have serious ramifications in the firm. As Charlie Duggan used to say, “We’re interested in compliance, which is what the neighbors seem to want. Some want punishment, but that’s not always the best thing.” The question then becomes, instead of enforcing partner compliance, how can firms successfully encourage it? The crux is understanding what is at the root of compliance issues. Take a Step Back and Address Conventional Thinking Many partners dread keeping tabs on their administrative tasks and often think of it as “the worst part of law firm life.” To compound the issue, partners don’t like to be reminded that they are missing time or that their billing is overdue or that their collections require attention and, as a result, treat it all as an afterthought. Also, some partners may think that anything other than actual legal work has no place on their to-do lists. But some lawyers (with the exception of solo practitioners) may not fully comprehend the impact that tasks such as keeping contemporaneous time records, billing quickly and accurately, and collecting receivables in a timely way has on the firm’s cash flow and ultimate profitability. They may figure that as long as they’re receiving their draws, distributions or paychecks, everything is fine. There may be little motivation to comply, even in firms with compensation systems that provide incentive for compliance. Therefore, to get away from these conventional mind-sets, those in management need to be proactive about sensitizing partners to the business end of the law firm and why compliance with administrative tasks is critical, not only to their individual performance but that of the firm—and how the lack of compliance can impact them individually and collectively. Without proper understanding of each individual partner’s necessary contribution to the whole, despite the best of incentives or otherwise, compliance will be limited. Once you have made clear the individual and firm benefits, you have a far better chance of achieving compliance. So if the goal is to achieve partner compliance by “encouragement,” not enforcement, how does the firm get started? Here is a plan to help you. Schedule Short but Regular Partner Seminars Regular seminars provide consistency and continuity in learning, helping to reinforce concepts and reduce backsliding. An hour per seminar is usually sufficient, so they can be done in a lunch-and-learn format. The key is to keep the seminars brief, engaging and focused on one concept at a time. For example, one month the partners could review the importance of contemporaneous time entry and the impact it has on potential billings and collections. The next month’s seminar could take the time-entry discussion a step further and discuss how billing write-downs and accounts receivable write-offs affect profitability. As each month’s topics are discussed and questions raised, it will provide topics for further seminars. For example, after the session on write-downs and write-offs, the next seminar could open the door to additional profitability and “loss prevention” topics, such as addressing the effectiveness of engagement letters and other components that improve the firm’s performance. An essential element for success is to provide a take-away from each seminar, offering practical suggestions for improvement that can be implemented right away. By consistently building on the monthly topics and their takeaways, the partners will become more invested and gain a better understanding of the components involved. In the process, compliance will improve and become less of an issue over time. Find the Right Presenter Success in educating partners also requires identifying the right presenter, someone who can effectively convey the importance of concepts such as contemporaneous timekeeping, billing and collections, and individual and client profitability. To ensure the partners have trust and confidence in what is being said, credibility is essential.  In most cases, the firm administrator or another in-house expert, such as a respected compliance-minded senior partner, is best suited to the task because partners already know and generally trust these individuals. Overall, though, it will hinge on their knowledge, credibility, presentation skills and ability to motivate and engage the partners. If the firm lacks the necessary talent or expertise, you should consider outside consultants. But if you can identify an in-house “star” resource, the chances of success are better. Grab Attention with Relevant Statistics Statistics and applicable quotes can be very effective in capturing partner attention, particularly when they’re used at the start of a seminar. Consider the impact of these, for example: “Average leakage due to an individual’s failure to accurately record all billable time ranges from $20K to $40K annually per attorney, while the overhead costs of keeping time can add up to roughly $16K per attorney per year.” “Attorneys who keep contemporaneous time records enjoy 25 to 40 percent higher income than those who don’t.” Statistics like these can have real meaning and provoke thought, especially if the statistic is going to shine a light on increasing or decreasing firm revenues or increasing or decreasing partner profits. To make your case, make sure all statistics come from reputable legal management sources (like the American Bar Association or well-regarded law firm management consultants). Not only will solid statistics give your seminar credibility, they will help make an impact on partners and help get you the needed buy-in. Engage with Interaction and Humor Apart from complying with administrative requests, the last thing most partners enjoy is sitting through seminars. The challenge, then, is to keep them away from their cell phones and PDAs by making the educational experience interactive and engaging. PowerPoint presentations have their own stigma for being boring and stilted, but if they are well organized, concise and visually appealing, with colorful clip art, a touch of animation and applicable photos, it will carry your message a long way. Pose scenarios and ask pointed questions, too. Reinforce the concepts discussed using step-by-step examples to illustrate the process and facilitate discussion. The secret is to educate in a relaxed forum, keeping it light and, most important, injecting some fun. A simple, innocuous question specific to a practice area, delivered with a touch of humor, can often facilitate a meaningful discussion. If you design the presentation to be an informative and entertaining “page-turner,” partners will stay focused and be more likely to remember it. Provide Meaningful Reporting and Information to Interpret It After a few seminars, partners will better appreciate the importance of complying with administrative tasks, but they will need to see some results of their compliance. Many partners already receive monthly management and financial reports, which may end up lost in a pile of paper because it doesn’t seem to apply to them. It’s important to make sure partners are receiving reporting that is concise and responsive to their individual needs and practices. At minimum, they should be receiving an aged work-in-process (unbilled fees/expenses) report, an aged A/R report for all aged accounts over 60 days and a billable-hours report on a monthly basis. For more concise reporting, include a “fiscal snapshot” report showing all of the key information for the current and prior year on one sheet. Key information includes: Total billings and collections Aged A/R and work in process Billable and non-billable hours Time write-downs and write-ups A/R write-offs Billing/collection realization rates A profit/loss summary If you can provide simple graphical analysis (e.g., bar graphs), even better. Statistics and analysis that can be illustrated will go a long way in gaining interest and understanding—and often partners will even request additional reporting to better understand and reconcile the fiscal snapshot. Regularly Meet with Partners Individually Regular meetings with individual partners will reinforce education and help get ongoing buy-in for compliance. During each meeting, it’s important to take the time to review the monthly reporting with the individual partner and highlight areas that need to be addressed. Review the billing, collection and profit/loss performance on the partners’ work and their clients’ matters, and discuss whether, where and how improvements can be made. Taking the time necessary to help partners understand and develop action plans to maximize profits is time well spent and will create a sense of accountability. Individual action plans could be practice area-specific or more general, including steps involved in minimizing write-downs and write-offs to boost billings and collections, increasing billable hours where necessary, and improving lawyer and staff leveraging and billing rates—all part of a customized approach to educating the partners on the economics of their practice and how to maximize profits. Keep Educating Once the partner education process begins, strive to continue it daily. If you read a good article on billing practices or another management topic, forward it to your partners for their “FYI.” The goal is to keep partners regularly in sync with the economics of the firm, so compliance with tasks such as time entry, billing and collections becomes more of a daily routine and not a hindrance. Follow these steps to encourage compliance with administrative tasks and not only can you improve overall compliance, but some partners will likely become rejuvenated and take greater interest in their practice and firm performance. It’s a win-win scenario—your partners benefit and your firm benefits. The key is to keep educating at every opportunity.