Challenges Identified by Small Law Firms How They Threaten Your Success
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1 REUTERS / Firstname Lastname REUTERS / Mike Blake Challenges Identified by Small Law Firms How They Threaten Your Success Presented by Brian Knudsen, Vice President Small Law Customer Marketing Thomson Reuters January 31 st, 2017
2 2016 State of U.S. Small Law Firms Study Goals Challenges Strategies for success April 2016
3 Solos and Small Law Firm Partners Say 20% 10% 50%+ Client satisfaction ratings are how they predominantly define firm success Successful or very successful firms spend 10% more time practicing law Firms with significant challenges have not implemented solutions to address the challenges State of Smaller Law Firms Study, Thomson Reuters
4 Small Law Firm Success Defined Primary Metric for Success (Top 5 Listed) Overall profits 26% Client satisfaction ratings 20% Overall revenues 15% Repeat business 14% Work / life balance 13%
5 Small law firm commonly face challenges Percent of Firms with Challenge Challenges acquiring new client business Spending too much time on admin tasks Increasing complexity of technology Cost control and expense growth Clients demanding more for less or rate pressure from clients Keeping up with changes in the legal market Lack of internal efficiency Information overload from growth in documents Succession planning 78% 69% 63% 62% 62% 56% 54% 48% 47%
6 Some have significant challenges Percent of Firms with Challenge Challenges acquiring new client business Spending too much time on admin tasks 27% 15% 54% 51% Increasing complexity of technology 12% 51% Cost control and expense growth 13% 49% Clients demanding more for less or rate pressure from clients Keeping up with changes in the legal market 21% 6% 50% 41% Key Lack of internal efficiency 9% 45% Significant Challenges Information overload from growth in documents Succession planning 10% 12% 38% 35% Moderate Challenges Top 3 Significant Challenges
7 Among those with significant challenges. Percent with Unaddressed Challenge (Among those with significant challenges) Challenges acquiring new client business Spending too much time on admin tasks Increasing complexity of technology Cost control and expense growth Clients demanding more for less or rate pressure from clients Keeping up with changes in the legal market Lack of internal efficiency Information overload from growth in documents Succession planning 46% 54% 63% 66% 72% 73% 81% 82% 89% The majority have NOT addressed their challenges
8 YOUTH INNOCENCE BILLABLE HOURS What do these words have in common? Once lost, you can never get them back
9 % of Firms Successful firms spend more time practicing law Time spent practicing law 70% 63% 53% 10%* * Statistically Significant Difference What if you could turn this 10% of time into time billing and practicing law? 0% Successful A & Very successful firms Not Bvery successful & Neither successful nor unsuccessful firms For a firm billing $250 per hour this could equate to $30K+
10 What if you could increase your new client referrals? What if you could increase your annual billings? What if you could reduce the time spent on administrative tasks? 10
11 Do You Recognize This??
12 Studies show that leveraging integrated technology to manage your law firm can address challenges and lead to greater law firm success. Blue Hill Research, Impact of Integrated Technology Suite in General Practice Firms 12
13 Leveraging integrated technology in Matters Settled with Very High Client Satisfaction in New Clients referred by existing clients in average annual billings Blue Hill Research, Impact of Integrated Technology Suite in General Practice Firms 13
14 The Good News: There are partners with solutions to help overcome these challenges that can help drive more success quickly. Many solutions are easy to implement and use and will help drive client satisfaction, higher profits, and greater efficiencies. 14
15 Your Takeaways What are your business priorities? 1 What is the biggest challenge facing your firm? What is the single business challenge standing in the way of your firm achieving its goals? 2 Share your ideas, comments, insights with me: Brian.Knudsen@tr.com 15 3 Visit Chris Jackson, our practice management representative, for a free consultation in booth #2307 in the small law pavilion
16 Panel Discussion Robert Ambrogi - Attorney/Owner, Law Office of Robert J. Ambrogi and Founder, LawSites blog Mary Juetten - Co-Founder, Author Small Law Firm KPIs: How to Measure Your Way to Greater Profits, Evolve Law William Josten - Senior Legal Industry Analyst for the Thomson Reuters Legal Executive Institute.
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