Allowing a firm’s malaise to continue can institutionalize a momentum towards decline. It fosters a culture where expectations are lessened and acceptance of mediocrity metastasizes. A lack of energy cannot go on for long or it will grow into a potentially irreversible condition. If a firm finds its energy levels scaling down, it must take quick action.
Recognizing that an energy issue exists is the first step. Is the firm’s vibrancy at levels that are below acceptable? How can it know? Five common signs of a law firm’s waning energy can include:
Law firms that lack energy dim their prospects for the future. Too often law firms pass over the issue of their own vibrancy (whether by a failure of recognition or simple indifference) and plod along without taking corrective action. A becalmed law firm, especially in these times of legal industry disruption, is flirting with danger.
Allowing a firm’s malaise to continue can institutionalize a momentum towards decline. It fosters a culture where expectations are lessened and acceptance of mediocrity metastasizes. A lack of energy cannot go on for long or it will grow into a potentially irreversible condition. If a firm finds its energy levels scaling down, it must take quick action.
Recognizing that an energy issue exists is the first step. Is the firm’s vibrancy at levels that are below acceptable? How can it know? Five common signs of a law firm’s waning energy can include:
Substandard Economic Performance.
A great measure of a firm’s energy is the firm’s current economic
performance. But an energy assessment comes from much more than whether
the past or current year has been or is a good one. Detailed economic
reports can unlock data that reflects a declining energy level at the
firm. Even under the glow of a “good year” declining production, a drop
off in new matters opened, reduced marketing and business development
activity, smaller number of clients coming to the firm are all markers
indicative of an energy decline. Sustained declines in performance
measurements suggests strongly that a jolt of energy is in order.
Same Old, Same Old. A
firm satisfied with its practice “as is” and only seeking to replicate
it from year to year is setting itself up to disappointment. Continuing
the status quo can mean that the client relationship building
apparatus is in a rut. Satisfaction of this nature is the mark of
complacency and can cause a firm to be passed by its competitors or
abandoned by the marketplace. A firm with any vibrancy does not stand
still. It constantly looks for an edge to make itself more attractive
to prospective clients and other attorneys. A firm content to rock
along as usual can need a shot in the arm.
Attrition. Unwanted
attrition at a firm often deprives a firm of some of its best assets.
Even attrition instigated by the firm can be a problem-it can signal
that long-term planning inadequately positions the firm for the future.
Either way, the loss of attorneys can sap energy from a firm and can
lead to a slow and unintended bleeding away of more talent. When
attrition occurs, inevitably a firm suffers energy loss. It must
counteract its negative impact by taking prompt action, including
replacing its losses with better talent or a better strategy.
No Obvious Succession.
Succession planning aside, a firm must constantly ask itself whether
young and dynamic lawyers are in the wings as a firm progresses towards a
generational handoff. A pool of young go-getters at a firm tends to
provide a sense of energy. But if scanning the firm’s roster fails to
spotlight a pool of energetic potential successors, a lack of energy is
imminent if it does not already exist. When a firm’s demographic
weighting is skewed towards older contributors, an influx of young
talent can boost the firm’s energy and make it stronger.
Indifference to Disruption.
Today’s legal market is more competitive than ever. Disruption is all
around. A law firm that ignores that fact either is profoundly unwise,
lacks the energy to react, or both. “Whistling past the graveyard” of
disruption is not a sound strategy in today’s market. In contrast, a
law firm aware of the challenge posed by disruption and prepared to face
it head-on is going to be, in most instances, a firm that possesses the
energy needed to compete in today’s World. If your firm is indifferent
to the changing competitive legal landscape, it may need, among other
things, some fire in its belly.
Being a successful law firm requires many characteristics, not the least of which is energy. A lack of it suggests problems in the firm’s future. What is your firm’s energy level? How does it measure up when looking at these five signs?
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