Avoid These Mistakes Immediately for Your Law Firm’s Growth: A Comprehensive Guide

February 29, 2024
In today’s discussion, we’ll delve into some common queries that came up after my recent talk on Key Performance Indicators (KPIs) for solo attorneys. These questions provide an excellent prelude to the upcoming episodes and emails. So if you haven’t yet subscribed to our email newsletter, do so right away. I guarantee, the wealth of knowledge you’ll gain will make this the best newsletter to hit your inbox. Now, let’s dive into the first question.

Question 1: What if you don’t want to grow this year? What KPIs should you track?
One common belief about KPIs is that they’re all about growth. But what if, as a lawyer, you’re content with your current financial status? What if your only desire is to cut down your working hours? Why bother with KPIs intended for growth? The answer is simple. Everyone needs growth. If you’re not growing, you’re regressing. Remember, growth isn’t only financial. It’s a comprehensive concept that includes various facets of your law firm.

Your idea of growth might be taking Fridays off, or perhaps increasing your Google reviews to 50 this year and improving your customer satisfaction rates. KPIs exist beyond pure financial targets. They encompass metrics like customer referral rates, amount of time taken to close a case, or even boosting your billable hourly rate. KPIs are not confined just to financial growth but extend to multiple domains of your practice.

Thus, it’s important to understand and appreciate the broad scope of KPIs. They provide a comprehensive analysis of your firm’s performance and guide you through improvements in areas you might not have considered before.

Question 2: How far back do I go when I’m looking at my data to build my KPIs?

In essence, the activity of your law firm in 2023 will shape our projections for 2024, looking back no further than 12 months. Considering the events in 2022, it’s fair to focus primarily on the data from 2023. For instance, if you were ill in 2022 and didn’t bill many hours, that year might not provide suitable data. We aim to use reliable, clean data, and if 2023 provides that for your firm, there’s no need to delve into 2022.

Question 3: How can I measure my litigation practice effectively while using KPIs without compromising on client representation? 

Client satisfaction is vital, which leads us to the value of conducting client satisfaction surveys. Understandably, this might cause some discomfort. But there’s another strategy – asking for a Google review. If a client doesn’t leave a review even after three requests, it’s a clear sign – they liked your service, but maybe it wasn’t exceptional enough. It’s like going on a date – would they recommend you to their friends or brag about you?

Google reviews function as a good yardstick for this. Want to provide better service without sacrificing billable hours or meeting frequency? Monitor your client referrals and reviews. If these are lacking, it could indicate things aren’t progressing as positively as you envisioned. But look at this as an opportunity to improve, not as a reason to be disheartened. Rework your strategy, and see it as a chance to grow.

Question 4: What metrics do I want to track if I want to grow my law firm this year?

An overlooked yet fundamental metric to measure your law firm’s growth is the number of consultations you’re conducting. Simply put, more consultations signify more growth. Here’s the thing – zero consultations mean no growth. With ten consultations, you see some growth. Increase it to forty, and the growth is even more evident. However, keep in mind there’s a limit to this. The more consultations you host, the likelier it is for the quality to drop due to the overwhelming volume. So yes, while there’s a maximum limit, tracking your number of consultations is a key indicator of your firm’s growth.

But, that’s not all. Knowing your client’s source is equally critical. Are they from Facebook? Were they referred by another lawyer? Perhaps came across your Instagram post? Or are they from your networking group? Understanding where your clients are originating from helps you see where your efforts are paying off.

Shockingly, some lawyers have no clue where their clients generate from, which is really concerning. It’s like saying you don’t know how your firm is gaining new clients, which is almost unheard of in the business world. Tracking the source of your clients is not just important, it’s crucial. Our planner has a dedicated section for you to input where each potential new client came from, allowing you to review and analyze this information at the end of each month. Knowing where your clients come from helps you understand where to focus your marketing efforts in the future.

If you are interested in increasing the number of consultations you have this year or want to increase your consult to client conversion rate from 30% to 40% (which would add tens of thousands of dollars to your practice), use the form below to connect with me.