What You Need To Know About Law Firm
Factors in setting law firm goals and objectives are different from objectives and goals for any commercial or industrial enterprise. This is so because of the difference in the nature of the services rendered by the two. There are certain characteristics of law firms, other than the well-known differences between industrial enterprises and professional organizations, which can be set and defined to come up with a model for the organization. Basically, the process of planning and setting goals involves building a model to serve as the development guide for the firm and determination of the way to achieve the goals and the time it will take. There are a number of characteristics of a model which are the factors that affect setting of goals and objectives in a law firm. Throughout this article, the various factors that affect the setting up of goals and objectives in a law firm will be discussed.
According to many lawyers, size is the status in the legal community, prestigious clients, the ability to handle more interesting as well as complex legal work and stability. In most case, these are accompanied by other characteristics like minimal opportunity for significant participation in management, impersonal atmosphere; need to follow the policies and procedures that are already in place and little direct contact with clients which are not attractive to some lawyers. Generally, lawyers in larger firms earn more as compared to those in smaller firms. This is because the large firms attract the large corporate clientele who pay higher rates. As a result, if the model objective is to be a considerably larger firm than the current firm size, a top notch litigation department should be emphasized.
Ownership is one of the factors in setting law firm goals and objectives that should be considered keenly. Maintaining high partners to associates ratio in a law firm is a key factor in increasing the income of the partners. The associates actually are the ones that make profits for the partners and that is why the ratio of partners to associates in large firms is always between a third and two thirds of the lawyers. This ratio is mainly affected by: the turnover of associates, the general growth of the firm and the time required to become a partner. For instance in a firm where the rate of turnover of associates is high, the average time needed for an associate to become a partners is six months, there will be a phenomenal growth rate in order to maintain a low partners to associates ratio.
Type of law and client
The type of client and the type of law are two closely related factors that have to be looked at when setting the goals and objectives of a law firm. The large firms normally serve the professionals, the affluent and the corporate clients. These firms increase expertise in legal areas corresponding to their clients’ needs. On top of the regular law areas which include: tax, general corporate, real estate, probate and litigation, some firms are developing distinct specialties either by industry or by function. Some areas of specialization are: labour law, banking natural resources and health care. Each of the factors in setting law firm goals and objectives explained above should be considered carefully by the law firms during their planning. Planning should be based on the current strengths and weaknesses of a firm. Other external factors like competition and the local economy should also be considered.