Law Firm Management

Document Sample
Law Firm Management Powered By Docstoc
					Law Firm Management Seminar

         February 2, 2010
  Sam Tuck, CPA, MTX     Mary E. Jenkins, QPA
       Partner                Director of
                       Retirement Plans Services
and Succession Issues
    for Law Firms
“Graying of America”
    2011 – 2031
Most Common Problem:

        No Formal Plan
   (only 35% of firms have one)
Succession Planning:

   The key to building, growing
     and continuing the firm
Issues that need planning:

   Client service and client relationships
   Practice skills and expertise
   Governance and leadership roles
   Functional management roles and
By clearly defining each partner’s role
  and responsibilities, you will have a
  road map for continued success. Your
  partners will understand and be
  accountable for what is expected of
  them, and the leaders will learn to
  operate in the culture you have
Putting Pen to Paper
         How do we create a plan?
         When do we start?
         Who is involved?
         What do we accomplish?
         Do we need help?
Seven Step Process
  1.   Partner meeting to address the need
       for a succession plan
  2.   Elect a succession planning committee
  3.   Committee develops an outline of the
  4.   Outline presented to partners
  5.   Detailed plan created
  6.   Plan presented and approved
  7.   Implement plan
Common Problems in the Process

    1.   Process going nowhere
    2.   Plan may not work for everyone
    3.   Can’t come to an agreement
The Compensation System

      Is it that complex?
What types of compensation
systems are out there?

   Compensation Committee
   Formula-based
   Paper/pencil
   Ownership
   Managing Partner decides
   Pay equal
   All decide
Three Basic Tiers of Compensation

  1.   Return of Capital         5-10%

  2.   Base Salary (not equal)   65-85%

  3.   Incentive Bonus           10-30%
Performance Criteria
1.   Partner Billings      7.    Client Service
2.   Partner Collections   8.    Client Transition
3.   Billable Hours        9.    Practice Profitability
4.   Leadership            10.   Teamwork
5.   People Skills &       11.   Good Citizenship
     Development           12.   Years of Service
6.   Practice              13.   Expertise
The Compensation Committee
   3 to 5 people
   Elected by the partner group
   Meets periodically – not just at the end of
    the year
   Communicate goals to partners at the
    beginning of the year, not just results at
    the end of the year
   Formal review with partners
   Handle appeals
Common Issues
in a Compensation System

    Good times in a bad year
    Aggravation factor
    Younger partners feel underpaid
    Open vs. closed system
    What if everyone is not happy?
    Contact Information

 Sam Tuck

Description: Law Firm Management document sample