We have spent lots of time with a number of practices over the last year or so working on improving operational efficiency. By just implementing some “easy wins” the results have been amazing: a 10% bottom line improvement seems to be realistic for many practices over a two-year period. We have put together a list of 11 examples to show how simple it can be.
1. Pitching for work
Most practices are busy and pitching can lose some of the attention it deserves. Try involving two people when specifying and costing jobs over £2,000, and encourage them to challenge each other about how to provide the best specification, the most appropriate people to do the work, and the most efficient way of going about it. They should also challenge the proposed fee with each other before it goes out to the client, and speak to the client too about price expectations – it is definitely not all about being seen to be the cheapest.
2. Charge rates
Whatever the size of your practice, review your charging matrix. Clearly, more complicated work should be priced more highly, but it is surprising how often rates are set per individual fee earner, as opposed to certain types of work carrying a premium rate.
3. Get the basics of charging time right
- Make sure there is one set of policy expectations for everyone, so you get consistency.
- Enforce the need for timesheets to be completed daily, adopt a consistent approach and make sure they are completed by everyone (including partners).
- Spend time with all fee earners so they understand how to manage their unbilled work-in-progress levels.
- Remove any whiffs of policies allowing fee earners to merely charge time up to what they think the client will pay and “lose” the rest.
4. Make sure all fee earners know what is expected of them
All fee earners should be aware of what is expected of them in terms of time charged, fees and recoverability. If you have a live performance reporting function within your practice management system, open it up to all fee earners – transparency is so helpful.
5. Encourage staff suggestions
Actively encourage staff to come forward with “fix its” for systems type improvements they would like to see, and action as many as you can.
6. Encourage self sufficiency
Actively help all staff to challenge their own operational efficiency, delegation and training skills.
7. Minimise time spent on tasks
Review how you go about tasks like money laundering checks, engagement letters, billing etc, and challenge yourselves until you feel that the time spent on each is minimised, without becoming overly mechanical in the eyes of clients.
8. Deal with operational issues
Spend time listening to operational frustrations, and act on them.
9. Play to your strengths
It’s important to work with the strengths of your workforce, for example younger staff members often have insights into IT matters.
10. Try voice recognition
Give voice recognition software a try if you haven’t done so recently.
11. Team building
Spend quality time together as operational teams so you really know each other. Character and behavioural assessment testing can be fun, and really worthwhile.
We are always available to work with any practice and are confident we can help you see real results – without complication.
Jon Cartwright, Partner, Hazlewoods
Solicitors Group, November 2016
© Hazlewoods 2016