Law Firm Strategy Considerations for 2022

withum.com 1
2020 WithumSmith+Brown, PC
Law Firm Strategy Considerations
in 2022
Insights from Withum’s Law Firm Leadership Survey

withum.com 2
 Legal industry veteran with 25+ years of experience working with law firm
managing partners, department/practice leaders and C-suite executives
 Advises clients on strategic planning and growth, succession planning, firm and
practice management, brand strategy, marketing and business development
and client relations
 Facilitates law firm retreats and provides leadership and management
development and marketing/business development training programs
 Guides clients to smart growth, intergenerational transition and effective,
motivational management
 Has been quoted in the New York Times and the legal press, written for
leading industry publications and been featured at national and regional
conferences, seminars, workshops and retreats
Marci Taylor
JD, Principal, Law Firm Advisory at Withum

withum.com 3
 More than 40 years of experience in private industry and public accounting
with law firm expertise in practice management, law firm profitability
analysis, business and strategic planning, business succession planning,
partner compensation plans, cash flow management, budgeting and
forecasting, operations review, and auditing and tax.
 Senior Executive, focused on turning financial data into bottom-line
growth
 Frequent speaker on practice management issues for The Managing
Partner Roundtable Summits and Forum as well as on various Law Firm
issues for the ALA, NJ, NYC and Bucks County Bar Associations
Bill Sansone
CPA, Partner, Practice Leader, Law Firm Advisory at Withum

withum.com 4
Today’s Objectives
Overview of strategy considerations for 2022
Review of Law Firm Leadership Survey results
Discussion Q&A
Key Takeaways/Priorities for 2022

withum.com 5
LAW FIRM STRATEGY
CONSIDERATIONS IN 2022
Marci Taylor and Bill Sansone, Withum

withum.com 6
Overview
• Comfortable with uncertainty
• The war for talent
• The evolving workspace
• It’s all about firm culture
• Department and Practice Group management challenges
• A renewed focus on marketing and business development
• Succession planning – a work in progress
• The need for heightened cybersecurity and increased innovation
• Will things really change when times are good financially?

withum.com 7
OVERVIEW OF LAW FIRM LEADERSHIP
SURVEY RESULTS

withum.com 8
Survey Participants
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Firm Chair
Chief Executive Officer
Other
Managing Partner
Q39. YOUR POSITION TITLE

withum.com 9
Participants
0% 5% 10% 15% 20% 25% 30% 35% 40%
1 to 49 Lawyers
50 to 150 Lawyers
151 to 300 Lawyers
Over 300 Lawyers
Q36. FIRM SIZE (# OF LAWYERS)

withum.com 10
Strategic Planning
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
We do not have a firm strategic plan
Launched a new strategic planning effort to address changing market conditions
Revised your strategic plan based on changing market conditions
Kept moving forward with your existing strategic plan
Q2. In the past 12 months have you:

withum.com 11
The War for Talent

withum.com 12
Impact of Remote Work on Growth Strategy
0% 10% 20% 30% 40% 50% 60%
No, we have always incorporated remote work in our growth strategy
No, it has not impacted our growth/hiring strategies
Yes, it has allowed us to consider new hires we otherwise would not have
Yes, it has allowed us to consider new markets we otherwise would not have
Q8. Has the possibility of remote work impacted your firm’s growth strategy?

withum.com 13
The Evolving Workspace
• 35% said they were considering decreasing office footprint
• 45% said they were working on space redesign
• 30% had already adapted physical space
• 17.5% said they were utilizing coworking spaces
Source: Withum Law Firm Leadership Survey 2021

withum.com 14
The Evolving Workspace
0% 5% 10% 15% 20% 25% 30% 35% 40%
We are considering a hub and spoke model for office space
We have implemented a hub and spoke model for office space
We are considering increasing our physical office footprint
None of the above
We are working with space planners to redesign our office/meeting spaces in the future
Other
We are utilizing coworking spaces for remote attorneys
We are working internally to redesign our office/meeting spaces in the future
We are considering decreasing our physical office footprint
We have adapted our current offices to reflect changing space needs
Q5. What are you doing to address physical space needs going forward?

withum.com 15
Return to Work
0% 5% 10% 15% 20% 25% 30% 35% 40%
Our lawyers will return to the office full-time in 2022.
Our lawyers will return to the office full-time in Fall 2021.
Our firm will have a remote work environment permanently.
Our lawyers will return to the office part-time in 2022.
Our lawyers will return to the office part-time in Fall 2021.
Our lawyers are back in the office full-time.
Our lawyers are back in the office part-time.
Our firm will have a hybrid work environment permanently.
Q3. As things currently stand, when are your lawyers returning to the office?

withum.com 16
Return to Work
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
1
4
2
N/A
3
No specific requirement regarding number of days
Q4. If your lawyers have returned/will return to the office part-time, how many
days in the office does your firm require per week?

withum.com 17
It’s All About Firm Culture
0% 10% 20% 30% 40% 50% 60% 70% 80%
Holding all attorney in-person retreats
Holding partner in-person retreats
Holding partner virtual retreats
Holding all attorney virtual retreats
Other
Offering firm culture-based training programs
Offering virtual social events
Offering in-person social events
Q23. What is your firm doing to maintain firm culture while adapting to the future
of work? [Please select all that apply]

withum.com 18
0% 10% 20% 30% 40% 50% 60% 70% 80%
Decreased
Stayed the Same
Increased
Q24. Over the last 12 months, has your firm’s focus on diversity, equity & inclusion
(DEI):

withum.com 19
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Full-time Diversity professional/team
Other
Affinity group initiatives
Increasing leadership roles for diverse lawyers
Increasing promotion opportunities for diverse lawyers
Mentoring programs for diverse lawyers
Inclusion training programs
Diversity training programs
Women’s initiative
Improving retention of diverse lawyers
Diversity Committee
Improving diversity in recruiting
Q25. Which of the following DEI-related initiatives are underway at your firm?

withum.com 20
Department and Practice Group Challenges
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Varies by department/practice group
Mostly unsuccessful
Somewhat unsuccessful
Neutral
Somewhat successful
Mostly successful
Q16. How do you rate the overall performance of departments or practice groups
in your firm?

withum.com 21

withum.com 22
“There are never enough capable leaders.
We are making investments
in leadership development.”

withum.com 23
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0
Leadership training
Marketing
Collaboration on client projects
Leadership succession
Strategic planning
Utilizing technology for communication
Client succession
Profitability
Professional development/training
Utilizing technology for service delivery
Business development
Attracting/retaining talent
Q18. Please rate the level of importance of the following practice group issues. [1
being least important, 5 being most important]

withum.com 24
A Renewed Focus on Marketing and BD

withum.com 25
A Renewed Focus on Marketing and BD
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0
Client interviews/surveys
Professional associations
Contact management
Industry associations
Marketing training for lawyers
Brand strategy
Content/communications (articles, blogs, webinars, podcasts)
Website
Q21. Please rate the following marketing/business development
strategies/initiatives in terms of importance to your firm for the next 12
months: [1 being least important, 5 being most important]

withum.com 26
Have you gotten feedback from clients?
0% 10% 20% 30% 40% 50% 60% 70% 80%
No, we do not have a client feedback initiative
Yes, we have a client survey program
Yes, we have a key client interview program
Yes, we have an initiative that includes key client surveys and interviews
Q22. Does your firm have a formal client feedback initiative? (Client satisfaction
interviews, surveys, etc.)

withum.com 27
Heightened Cybersecurity/Increased Innovation
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Not confident at all
Not very confident
Neutral
Somewhat confident
Very confident
Q28. Please rate your overall confidence in your firm’s privacy, data and
cybersecurity systems/protocols:

withum.com 28
0% 5% 10% 15% 20% 25% 30% 35%
0%
25%
50%
75%
100%
Q29. Approximately what % of your firm’s major technology systems are cloud-
based?

withum.com 29
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Litigation management/support
Human Resources Information Systems (HRIS)
Docket management
Marketing Technology (Martech)
Collaboration management
Knowledge management
Matter management
Professional development
Cloud migration
Document management
Financial management/time and billing
Cybersecurity
Q30. Over the next twelve months, our strategic priorities for technology are:
High Priority Medium Priority Low Priority

withum.com 30
Succession Planning – A Work in Progress
0% 10% 20% 30% 40% 50% 60%
We have no succession plan and have not started working on one.
We have a written leadership succession plan and are implementing our leadership
succession strategies.
We are in the process of developing our leadership succession plan.
Q32. How would you best describe your firm’s current progress in leadership
succession planning and implementation?

withum.com 31
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Provides leadership and management training to all firm partners.
Provides leadership and management training to all firm lawyers.
Provides detailed position descriptions for leadership/management roles so leaders and
other firm members are aware of the scope of their responsibilities.
Provides leadership and management training to firm leadership.
Provides successors the opportunity to serve as deputy/vice-chairs of department/practice
groups to build skills and experience before assuming leadership roles.
Rewards firm leaders and managers for their contributions in leadership positions.
Gives younger partners opportunities to serve in key firm leadership roles
(Executive/management, committee, department/practice chairs, key firm committees,…
Q33. [Leadership Succession] Our firm:

withum.com 32
0% 5% 10% 15% 20% 25% 30% 35%
We have a clearly articulated client succession plan or guidelines and practice group
leaders and members execute that plan.
We have a clearly articulated client succession plan or guidelines and individual partners
execute their plans with firm management supervision
We have no client succession plan/guidelines and have not started working on one.
We are in the process of developing our client succession plan/guidelines.
Q35. How would you best describe your firm’s current progress in client succession
planning and implementation?

withum.com 33
GOOD NEWS/BAD NEWS

withum.com 34
Good news –
Financial Key Performance Indicators (KPIs)
• 75% of respondents said increase in RPL
• 83% said increase in PPP
• 78% said overhead declined or stayed the same
• Over 93% said billable hours increased or stayed the same

withum.com 35
0% 10% 20% 30% 40% 50% 60%
Realization
Utilization (Billable Hours)
Overhead Per Lawyer
Profits Per Partner
Revenue Per Lawyer
Q11. Please rate the following key performance indicators for your firm in
the last 12 months (compared to the previous 12 months):
Significant Increase Moderate Increase Stayed the Same Moderate Decline Significant Decline

withum.com 36
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Realization
Utilization (Billable Hours)
Overhead Per Lawyer
Profits Per Partner
Revenue Per Lawyer
Q12. What are your expectations for the following key performance
indicators for your firm in the next 12 months (compared to the previous 12
months):
Significant Increase Moderate Increase Stayed the Same Moderate Decline Significant Decline

withum.com 37
0% 10% 20% 30% 40% 50% 60%
76-100%
51-75%
26-50%
11-25%
0-10%
Q14. Approximately what percentage of your firm’s engagements are based
on an alternative fee arrangement (AFA)?

withum.com 38
0% 10% 20% 30% 40% 50% 60% 70% 80%
Paraprofessional
Of Counsel/Senior Counsel
Associate
Non-equity partner
Equity partner
Q13. Over the next 12 months, what changes do you anticipate in your hourly
billing rates for each of the following positions:
10% Increase or More 6-10% Increase 1-5% Increase Stay the Same Decrease

withum.com 39
Bad News - Inhibitors to Change
0% 10% 20% 30% 40% 50% 60% 70%
Associates actively resisting change
Lack of motivation among associates to change
Lack of pressure from competitors to change
Other
Partners actively resisting change
Lack of pressure from clients to change
Lack of clarity on how to change/improve
Lack of motivation among partners to change
Our firm’s continued financial success (complacency)
Q1. The biggest inhibitors to change in our firm are:

withum.com 40
QUESTIONS?

withum.com 41
KEY TAKEAWAYS/PRIORITIES FOR 2022

withum.com 42
Key Takeaways – Priorities for 2022
• Comfortable with uncertainty
• Overcoming complacency – Creating a sense of urgency
• Revising firm and practice strategy for a changed industry
• Talent, talent, talent
• Making a commitment and rigorous approach to firm culture
• Investing in:
• Leadership Development, Department/Practice Management
• Investing in Marketing/Business Development
• Diversity, Equity and Inclusion (DEI)
• Committing to client experience
• Focusing on cybersecurity and service delivery innovation
• Maintaining a focus on succession planning

withum.com 43
Questions and Contact
• Marci Taylor
mtaylor@withum.com
• Bill Sansone
bsansone@withum.com
• Withum Law Firm Advisory Services
https://www.withum.com/service/law-firm-advisory-services/

Law Firm Strategy Considerations for 2022

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

Similaire à Law Firm Strategy Considerations for 2022

Similaire à Law Firm Strategy Considerations for 2022 (20)

Plus de Withum

Plus de Withum (20)

Dernier

Dernier (20)

Law Firm Strategy Considerations for 2022