Architect Daniel H. Burnham once said "Make no little plans; they have no magic to stir men's blood...Make big plans, aim high in hope and work." In this article, Tom Collins identifies nine subject areas that will help law firms achieve success through planning.

We know that measurement alone improves performance. But combine measurement with goals and plans and the whole ball game changes. Planning, goal setting, measuring, and accountability go hand in hand with increased management and teamwork. The resulting culture in such law firms sets those firms and their performance completely apart from those firms who are not similarly engaged.

Yet only about one-fourth of midsized firms report that planning is a key component to their mode of operation. Why should you be one of those? Per-partner income for those firms is twice that of the next best performing 25 percent of firms and seven times that of the lowest performing 25 percent.

The democratic governance model prevalent in law firms may be the main reason the majority of law firms fail to engage in a formal planning process. As the number of partners grows, it becomes harder and harder to find a consensus as to what the firm's strategy should be. Instead of building a consensus and moving forward, the discussion simply ends to avoid conflict.

Compensation plans in this environment are more likely to focus on short-term measures of performance like fees received, billable hours and origination. Not that these measures are irrelevant or unimportant. The point is that investment of partners’ time and resources in activities to achieve long-term growth and success are not being rewarded and are unlikely to be a priority for the firm’s leaders. Interestingly enough, The Brand Research Company found in their report of “Why Law Firms Fail” that there is a high correlation between failure and “eat what you kill” compensation structures.

More successful firms rewarded partners and associates for long-term practice building activities and for team results in addition to traditional individual performance. What do you need to do to become part of that top performing group?

• Engage in the planning process
• Set goals and objectives
• Develop plans for achieving those goals
• Measure progress and hold people accountable

Structure is a critical part of the planning process and the one I have encouraged firms to follow involves nine main areas to be addressed by the planning team in the order listed. The nine subject areas are:

• Nature of the law firm (or activity, e.g., practice area or department)
• Environment in which firm operates
• Opportunities/Capabilities (SWOT)
• Assumptions about the future
• Objectives—Mission/Strategic Thrust
• Policies/Procedures (changes or new ones needed)
• Strategies—How we are gong to achieve objectives
• Priorities and schedules for programs, new resources required, measurements
• Organization and delegation

Planning gets the entire law firm team playing from the same play book. It prepares the team for the future, equipped to capitalize on its opportunities.