managing a growing legal practice: a two-step guide
TRANSCRIPT
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InstructorJoshua Lenon• Lawyer in Residence at Clio• Attorney Admitted in New
York• @JoshuaLenon
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Agenda• A Time of Growth (10 minutes)• Remove Law Practice Distractions (20
minutes)• Close the Loop (20 minutes)• Questions (10 minutes)
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Managing partners confidence in the legal industry growth has fallen
for the 3rd straight quarter.
Source:.Citi’s.Managing.Partner.Confidence.Index,.10/13/15
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Increasing Demand in Law Firms
72%55% 54% 53%
28%45% 46% 47%
Am.Law.50 Am.Law.51K100 Am.Law.2nd.100 Niche./.Other
%.of.Firms.Who.Saw.Demand.Increases.vs..Declines
%.of.Increases %.of.Declines
Source:.Citi’s.2015.Client.Advisory
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This year looks more promising for law firm growth than last year.
0%
5%
38%
48%
9%
0% 10% 20% 30% 40% 50% 60%
STRONGLY.DISAGREE
DISAGREE
ABOUT.THE.SAME
AGREE
STRONGLY.AGREE
Source:.Law.Firms.in.Business.Development.Transition.Report
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46 percent of managing partners expected revenue growths of greater than 5 percent.
Source:.Citi’s.Managing.Partner.Confidence.Index,.10/13/15
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Margin Growth vs. Revenue Growth
Firms are measuring profitability using the
wrong metrics.
0% 20% 40% 60% 80% 100%
Fee.Earner
Partner
Office
Matter
Practice.Area
Client
Measure.Profitability.by:
Source:.Citi’s.2015.Client.Advisory
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Top 5 Challenges to Winning New Business
32%
36%
38%
36%
52%
0% 10% 20% 30% 40% 50% 60%
No.Accoutability
No.longKterm.strategy
Pricing
Obtaining.attorney.participation
Competition
Source:.Law.Firms.in.Business.Development.Transition.Report
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Solo lawyers spend 39% of their time on non-legal work
Source:.John.Such,.CEO.of.LegalZoomat.Clio’s.Cloud.Conference.2015
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Percent of law firm revenue spent on marketing & business development
46%
1%
1%
2%
5%
32%
13%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
UNSURE
>20%
16K20%
11K15%
6K10%
2K5%
<2%
Source:.Law.Firms.in.Business.Development.Transition.Report
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Firm Metrics Tracked
16%
35%
39%
45%
58%
68%
78%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
EFFECT.OF.NUTURING
ROI.OF.LEAD.SOURCE
NUMBER.OF.LEADS
LEAD.SOURCE
INDIVIDUAL.ATTORNEY.GOAL
GOALS.BY.PRACTICE
WIN/LOSS
Source:.Law.Firms.in.Business.Development.Transition.Report
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My firm can determine ROI on business development
6%
37%
23%
31%
2%
0% 5% 10% 15% 20% 25% 30% 35% 40%
STRONGLY.DISAGREE
DISAGREE
ABOUT.THE.SAME
AGREE
STRONGLY.AGREE
Source:.Law.Firms.in.Business.Development.Transition.Report
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Not Knowing ROI is Costly• Broadcast television
– Grown by 68 percent over the past eight years from $531 million in 2008 to $892 million (projected) for 2015; and
– Grown six times faster from 2008 to 2014 than all other ad spending
• Internet advertising– 78 of the top 100 most expensive Google advertising terms– Geography impacts cost: Texas, Alabama, California, Virginia,
Nevada, and Wisconsin most expensive.
Source:.Trial.Lawyer.Marketing:.Broadcast,.Search,.&.Social.Strategies.10/15
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4 Steps to Campaigns1. Set campaign details2. Generate trackable phone number3. Call forwarding4. Dashboard Overviews
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Web FormsClio Campaign Tracker also tracks web links.1. Set campaign details2. Web form setup3. Insert code on your website
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Realization Rates for law firms have fallen from 94% to 86%.
Source:.Peer.Monitor.2015.State.of.the.Legal.Market
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The average firm waits 83 days to get paid after an invoice has been issued.
Source:.Business.of.Law.Blog,.8/28/14