What Law Firm Management Should Do After the Viral Peak
In the few months after the viral peak, firms will have to focus on a specific set of issues to get their firms moving back in the direction of normal operations.
April 07, 2020 at 02:59 PM
5 minute read
Editor's note: This is the second in a series of articles from LawVision's strategy group looking at what each core function of a law firm needs to focus on in specific phases of the coronavirus recovery. The first article looked at what they should focus on as the market awaits the viral peak. This article examines the efforts that should be in place in the one to three months after the tipping point, when we have reached the viral peak and begin moving forward.
The "Cautious Recovery of Business Confidence" Phase
Firm Leadership—same tasks as in the prior section, plus:
- Set target dates (that you can revise, as needed) for the re-opening of each office and coordinate the supporting activities with the operations teams.
- Get firm leadership and key partners back on planes as soon as public health conditions allow.
- Demonstrate leadership to dispel fears—particularly with travelling to see clients who are receptive to in-person visits.
- Visit all offices as quickly as possible. Meet with all constituency levels.
- Seize the opportunity to formalize changes and related policies that used to be optional but are now critical to working virtually, such as a) accounting staff's control over invoice processing, b) the elimination of paper time sheets for all lawyers (finally), c) going completely paperless as a law firm (with appropriate scanner support), and d) inefficient staffing arrangements caused by partners' demands that their assistant be right outside their doors.
- Start to assess and prioritize the strategic growth opportunities reported by all partners and make appropriate contacts (if not already done).
- Begin expectations management around likely outcomes for the year, particularly with key partners.
- Deliver carefully crafted message to younger lawyers concerning how Covid-19 related productivity declines will be considered and evaluated. Provide comfort around job security wherever warranted.
Partners—same tasks as in the prior section, plus:
- In conjunction with the marketing/business development leadership and budget, start visits to key clients who are receptive to personal contact at this point.
- Start a tick-list of what went well and what went poorly with respect to working virtually.
- Remind "traditionalists" to be objective and fair to this process because the business world is not going to go completely back to the pre-Covid-19 business model.
Talent/HR—same tasks as in the prior section, plus:
- Help "survivors" (those who remain after changes/downsizing) deal with feelings of anger/guilt/insecurity around situation, become re-engaged and productive again.
- Rethink lateral strategy and hiring targets.
- Create formal virtual processes for screening, onboarding, and integration as time permits.
- Rethink staffing needs based on changes in demand patterns for various practices. Assess where current personnel can be cross-purposed.
- As time permits, start to formulate a formal summary report to firm leadership on the firm's culture and how the lawyers and staff handled the transition to working virtually, the fallout from the transition, and the recovery to date.
- This will be an ongoing project through the next stage of recovery.
- Work with firm leadership to craft plan and messages to younger lawyers (especially) around impacts of Covid-19 on productivity and evaluations for 2020.
Accounting & Finance—same tasks as in the prior section, plus:
- Issue a formal revised budget and develop outlooks for 2020 and 2021 (with the caveat that these can be revised if market or health conditions change unexpectedly).
- Assess if the short-term profitability of the firm is materially better if the firm continues to operate virtually even though the offices are open and make the appropriate recommendation(s) to firm leadership.
- As time permits, review the performance of practices/teams with respective leaders to evaluate trends over time (i.e., pre-virtual, early virtual, later virtual, at the onset of recovery) and take any immediate corrective measures while also planning for longer term issues to monitor.
- Key areas of focus will be on rates, productivity/staffing needs in relation to current and projected demand, realization, client payment timelines and team profitability, if such reporting was already in use prior to the pandemic.
- Help partners plan for tax estimates for the year as well as payments.
Marketing/Business Development—same tasks as in the prior section, plus:
- Work with firm leadership to fund key client visits, when practical to execute.
- Work with those who are visiting clients to assess the strength of each relationship and likely demand for the remainder of 2020 and all of 2021.
- Have the appropriate partner talk with each key client about their pain points and cash flow position, if possible.
- As time permits, add busy partners who could be busier and senior associates to the coaching protocols and routines.
IT & Operations—same tasks as in the prior section, plus:
- Start to formulate recommendations to firm leadership and the accounting & finance team on any major adjustments or recommended investments in the technology platform and remote working environment.
- Carefully coordinate the re-opening of offices with firm leadership and the partners.
The next piece in the series will focus on tasks key stakeholders should focus on in the "recovery of business activity" phase, which is the four to six months after the viral peak.
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