Asked and Answered
By John W. Olmstead, MBA, Ph.D, CMC
Q. We are a five attorney personal injury plaintiff firm. In the last few years we have gone through tort reform, increased competition from other law firms doing extensive advertising, and now trying to weather the recession. From a profitability standpoint - we are holding our own. However, we are concerned about the future. While we do not want to be a high volume PI advertising factory - we believe we need to be doing something different. Do you have any suggestions on how we should plan our future?
A. The majority of our PI law firm clients are advising that they are having to work much harder at getting clients and investing more heavily in marketing - both time and money. PI firms were feeling most of these challenges before the recession. However, the recession may accelerate the pace with which law firms re-evaluate existing processes and consider new business models. PI firms may want to begin by:
1. Develop a firm strategic plan and individual attorney marketing plans which include aggressive network/contact plans for past clients, attorney referral sources (non PI attorneys), attorney referral sources (other PI attorneys), and other referral sources.
2. Evaluate the feasibility of adding an additional practice segment to reduce the level of risk in the case portfolio and reduce cash flow variability.
3. Reduce case portfolio risk and improve case profitability by implementing a intake system whereby all new cases over a specified level of projected case value are reviewed and approved by the partnership (or a client intake committee) in order for the case to be accepted by the firm.
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