Are You Running Your Law Firm Like a Business?

For law firms to survive in today’s highly competitive market, they must be run like a business. Unfortunately, law school doesn’t train lawyers in business skills, so many partners aren’t equipping their law firms to survive and thrive in the current market.

Here’s a short quiz that will tell you whether you’re running your firm as efficiently and business-like as possible.

Are non-lawyers handling the firm’s client intake process?

If not, why not? Lawyers should only be handling tasks that require a license to practice law; otherwise, they aren’t making the most of their time—in fact, they’re probably losing you money. Intake is a process you can easily automate or delegate if you implement a consistent, repeatable client qualification processes. You can even assign this task to virtual assistants who can follow your firm’s protocol to further improve your bottom line.

Are you monitoring your lawyers’ and employees’ productivity?

If you aren’t studying how often your lawyers are opening new cases, sending out demand letters, or closing cases, among other things, how can you tell whether your firm is on the right track? You can’t. You need your data at your fingertips so you can quickly assess who is—and who isn’t—as productive as they could be. You can also share metrics about case value and efficiency with your team so they can see how they are doing compared to their peers, stoking their competitive fires.

You also need to study the performance of your intake team. Who are the best performers, based on their efficiency and conversion rates? Incentivize your staff. Where are the bottlenecks? Take steps to retrain personnel as needed to improve their skills.

Are you targeting the right types of leads?

Do you know who your target client is? If you do, are you putting your ideal client persona to work by qualifying leads, or are you still taking every case that comes in the door?

All leads are not created equal. If your intake process is broken, you’ll miss lucrative opportunities because you failed to ask the right questions; you might also take on inappropriate cases or waste time on tire-kickers or price-checkers, who will drain your time and deplete your resources without yielding any return on your investment.

The goal is to use a set of criteria that will help your intake team identify and score valuable cases early in the intake process, so you can focus your firm’s resources accordingly.

Are you tracking settlements?

Do you know which type of case offers the highest settlement amount for your firm: a car accident, a product liability case, or a class action? If not, you can’t focus your resources toward going after the most profitable sectors of business for your firm, and you’re leaving money on the table.

Are you monitoring the settlement value of each case? If so, can you tell when your lawyers overachieve or when they settle a case for too soon?

Where are your cases coming from?

Marketing is the top of the funnel that drives your business upwards. Allocating your marketing dollars to the campaigns that generate the most qualified leads and new revenue is a key to growth. Do you know which of your marketing channels produce the most new business?

Which of your campaigns have the highest return on investment (ROI)? How many new leads come in through your TV advertisements compared to online/SEO? Without the answers to these questions, how will you know when strategic changes are necessary?

The Results

If you answered no to any of these questions, it’s time to rethink how you’re running your law firm. It’s time to explore how your data can help you eliminate inefficiencies so you can capture more clients and, in turn, more revenue.

Fortunately, your law firm has all the data you need already. The problem is, it’s probably not captured or stored in a centralized repository, so you can’t visualize your results, much less put it to work for your firm.

We can show you how to capture and use the metrics that can drive more clients to your pipeline and build your law firm’s bottom line. Contact us to schedule a demo of Litify.

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