Jon Whittle Consulting Ltd
64 Contributions by Jon Whittle Consulting Ltd Experts
PRACTICE NOTES
This Practice Note explains how to interpret and make sense of a law firm’s financial accounts...
Why are financial accounts important?
Firms must monitor and assess their accounts to gauge performance and determine what actions are needed to improve results...
What is available in a set of year-end accounts will depend upon the:
legal structure or constitution of the firm
rules that dictate the form and content of the accounts
In addition to year-end accounts, you may choose to produce monthly or quarterly management accounts, which should be reviewed regularly. For further information on management accounts, see Practice Note: The importance of good management information...
What financial statements make up a set of financial accounts?
Every firm needs to prepare annual financial statements that together comprise the firm’s financial accounts. There are six statements potentially required:
profit and loss account
balance sheet
cash flow
Practice Management
PRACTICE NOTES
Producing a proposal document demands more than good writing skills. Several distinct tasks must be completed to the right timetable and in the proper order. Co-ordinating the team’s input calls for care, planning and resolve. If key steps are missed or mistimed, the process can rapidly slip out of control. This Practice Note offers guidance for law firms on important points to address when preparing a proposal document. It assumes the firm has chosen to pitch. For further guidance on pitching for business, see Practice Note: Pitching for business and Precedent: To bid or not to bid questions.
The importance of good management
Effective management and clear leadership are essential to deliver a compelling proposal. This can rest with one person or be shared, for example by the pitch lead and a senior BD person. In a joint arrangement, the pitch lead
Practice Management
PRECEDENTS
1 Document scope
This plan pertains to:
☐ Whole firm
☐ Department / Practice area [ Provide details ]
☐ Sector [ Provide details ]
☐ Office / Region [ Provide details ]
Coverage period:
☐ Next 12 months
☐ 2–3 years
☐ 3–5 years
Document owner: [ Insert name and role ]
Agreement date: [ Insert date ]
2 Our business development in context
Scale and structure: [ Provide details, eg small / mid / large firm, departmental or sector led etc ]
Primary source of work today: ☐ Existing clients ☐ Referrers / intermediaries ☐ New client acquisition ☐ Mixed
Main constraints on growth: [ Provide details, eg visibility, relationships, capacity, skills, systems etc ]
3 Unifying theme
The central idea underpinning our strategy is [ insert details, eg ‘Trusted advisers to growing businesses’ ]. This will direct our
Practice Management
PRECEDENTS
General information
Client/target name [ Enter name ]
Client/target contacts [ Enter name(s) ]
Project/matter [ Summarise the assignment you bid for. Did it sit within your usual remit, or were you seeking to move into a new area? ]
Outcome of tender/proposal ☐ Won ☐ Lost
Interview date [ Enter date ]
Interview format ☐ Telephone ☐ Video call ☐ Face to face ☐ Other [ add details ]
Interview location, where applicable [ Enter venue ]
Interviewer’s name [ Enter name ]
Pitch lead’s name [ Enter name ]
Pitch team members [ Enter names ]
Feedback questions
Invitation to tender
What prompted you to put this work to tender? [ Enter details ]
Which firms did you invite to tender? [ Enter details ]
How were those firms chosen? [ Enter
Practice Management
PRECEDENTS
1 Executive summary/introduction
1.1 Following extensive conversations throughout the practice, this business plan has been carefully drafted. We sincerely appreciate the considerable contributions offered by colleagues. The plan belongs to everyone within the firm, regardless of their position or responsibilities.
1.2 This plan aims to deliver a set of clear goals for the coming year. These aims are designed to improve the firm’s profitability by cutting expenditure, better controlling risk, and boosting revenue. The action plan at the conclusion of this document clearly explains how these goals will be met.
1.3 The business plan will undergo review on a [insert frequency, eg six-monthly] basis, and we invite staff to help actively evaluate the progress achieved to date.
1.4 We ask every member of staff to treat the firm as though it were their own enterprise.
Practice Compliance
PRECEDENTS
Do’s and do not’s for effective presentations
Do
Limber up physically and warm up, eg extend and clench your hands, then give them a shake and relax the muscles in your face and jaw.
Ask your team lead to frame the session in a concise, engaging manner.
Agree beforehand who will take the lead on each specific area.
Practise together and also on your own.
Do not
Arrive at the venue at the last minute—get there with ample time to prepare and check the set up is as you expected.
Look unsure about who should speak on a particular subject or at a particular moment.
...
Practice Management
PRECEDENTS
Before meeting a potential client, it is vital to understand both the individual and the organisation they speak for. This framework serves to support a lawyer in getting properly ready for a business development (BD) meeting...
Practice Management
PRECEDENTS
Use the responses to the following questions to help you determine whether to proceed with a particular opportunity to tender for work...
Question Answer
Do we currently deliver services within the pertinent sector or work type?
[ Reflect on whether you already operate, or intend to operate, in the prospective client’s sector or type of work ]
Will fulfilling the client’s required work lead to any extra costs for the firm?
Practice Management
PRECEDENTS
1 Budget particulars
Applies to: [ Insert eg, Whole firm, Conveyancing department, Charity sector etc ]
Budget holder: [ Insert name and role ]
Authorised by: [ Insert name and role ]
Financial year: [ Insert year the budget applies to ]
2 Summary overview
2.1 The combined business development and marketing allocation for [ insert eg, the firm, the conveyancing department etc ] stands at: £[ insert amount ]...
Practice Management
PRECEDENTS
Plan summary
Time period covered by this plan
From [ insert start date ] to [ insert end date ]
Level of plan
☐ Whole firm
☐ Department / Practice area
☐ Sector
☐ Office / Region
Owner of the plan
[ Insert name and role ]
1 Analysis
1.1 Internal review
This part outlines our present situation.
1.1.1 [ Insert eg Firm, Department, Sector ] strategy and priorities
[ Provide a concise overview of the direction, growth aims and principal priorities.]...
Practice Management
PRECEDENTS
1 Document scope
This plan relates to
Time span covered
Owner of this plan
Agreement date
☐ Whole firm
☐ Department / Practice area [ Insert details ]
☐ Sector [ Insert details ]
☐ Office / Region [ Insert details ]
☐ Next 12 months
☐ 2–3 years
☐ 3–5 years
[ Insert name and role ]
[ Insert date ]
2 Business development aim(s)
Our principal business development aim(s) are:
2.1 [ Insert first aim, eg Increase sustainable fee income while maintaining...
Practice Management
PRECEDENTS
1 Document scope
Scope/level: ☐ Whole firm/Department/Practice area [ Insert details ]/Sector [ Insert details ]/Office/Region [ Insert details ]; ☐ Local/Regional/National/International; Lead/dates: [ Insert name and role ]; From [ insert start date ] to [ insert end date or target end date ]
2 UK [ and international ] environment (Political Economic Social Technology Analysis—PEST)
Political/legal; Economic; Social/demographic; Technological: [ Insert details ]
3 Regional or Local Market Analysis
Economy/demographics; Business landscape; Influencers/infrastructure; Critical issues: [ Insert details ]
4 Sector analysis
Overview; Regulation/governance; Organisations/media; Client needs/pressures; Intermediaries/influencers; Legal competitors: [ Insert details ]
5 Legal market developments analysis
Structure/performance; Regulation/profession; Talent/recruitment; Buying behaviour; Media/commentary: [ Insert details ]
6 Competitor analysis
Competitors; Performance/positioning; New entrants/substitutes: [ Insert details ]
7 [ Other external factors relevant to the firm
[ Insert factor ]/[ Insert factor ]/[ Insert factor ]: [ Insert
Practice Management
PRECEDENTS
Question Yes/No
Have you determined how much capital the business will require in total over the five-year period?
Do you have a clear strategy to manage lock-up in debtors and work in progress (WIP) to cut the level of capital required?...
Practice Management
PRECEDENTS
Building a pipeline of prospective new clients tends to work best when approached in an organised, methodical manner from the outset and throughout. Maintaining up-to-date records is a key element of pipeline management—keeping information and data in one place, such as a central spreadsheet, makes the process more efficient and provides confidence that you are staying firmly on top of your new client pipeline at all times. Please click for an Excel spreadsheet...
Practice Management
PRECEDENTS
1 Document scope
This review applies to:
☐ Whole firm
☐ Department / Practice area [ Insert details ]
☐ Sector [ Insert details ]
☐ Office / Region [ Insert details ]
Start date: [ insert start date ] End date or target: [ insert end date or target end date ]
Owner: [ Insert name and role ]
2 Firm strategy and direction
[ Insert summary of the priorities for business development. ]
3 Financial performance
[ Insert overview of what the numbers indicate. ]
4 Clients and referrers
[ Insert outline of what matters most for business development. ]
5 Business development and marketing activity
[ Insert overview of current activity, spend, insights, and what is effective or falling short. ]
6 Lawyers and skills
[ Insert synopsis of capabilities, gaps, and strengths. ]
7 Other relevant information
[ Insert principal conclusions and insights. ]
8 Final
Practice Management
PRECEDENTS
General
Date of meeting [ Insert date ]
Chair/lead [ Insert name and role ]
In attendance [ Insert names and roles ]
Date of request for proposal (RFP)/invitation to tender (ITT) [ Insert date ]
Prospective client [ Insert name ]
Agenda
Clarify:
the scope of work we are invited to tender for
any questions in the RFP/ITT requiring answers
evaluation criteria/scoring system
the submission date and time
[ Ensure you have complete clarity about the scope of work ] [ Make sure you identify every question or criterion you need to cover in...
Practice Management
PRECEDENTS
1 Investing in the future (legal and commercial investments)
To capitalise on our firm’s core strengths, deliver outstanding client service, and elevate brand recognition and value
To allocate resource to the planned programme of activities so we continue to attract and retain top talent
To dedicate [ x ]% of turnover to reinforcing our business platforms: operations, systems, risk management and environment
2 Governance/management
To evaluate the management structure and processes, and develop options for consideration that streamline and strengthen the firm’s management
To review and reshape the focus, timing and management of senior meetings to emphasise strategic planning, innovation and appraisal of prepared proposals
To implement business planning for each legal service and operational area
3 Risk management
To progress agreed actions that raise risk awareness across the firm, supported by an open-door policy and a no-blame culture
To continue providing the infrastructure, systems, training and support to manage
Practice Management
PRECEDENTS
Area
SMART goals
Activities and steps
Resources needed
Viability
Accountable individual
Due date
Future investment
Risk control
Financial matters
Personnel
Client services
IT
Premises and facilities
Miscellaneous...
Practice Management
PRECEDENTS
Participants
[ insert list ]
[ Facilitator [ insert details ] ]
Timetable
Timing: 8.30–9.00
Session number: N/A
Session description: Arrival, tea and coffee
Led by: [ insert name(s) ]
Timing: 9.00–10.00
Session number: 1
Session description: Introductions, aims, programme and process
Aims
If you held a Magic Wand without any limits, which changes would you bring about? What legacy would you hope to leave...
Practice Management
PRECEDENTS
Person leading strategy review
[ insert name ] (strategy lead)
Coordinator
[ insert name of a person who will assist with coordination ]
Steering group
[ insert names of personnel responsible for direction of strategy implementation ]
Step number
1
Start strategic review process
Step Actions
Set a date for a strategy away day, allowing at least 12 weeks’ notice.
Discuss and agree:
who will lead the process
who will attend as delegates
whether an external facilitator is needed
Book an appropriate venue.
Complete the Timeline section for the rest of this plan.
Begin the Precedent: Strategy away day—logistics planner.
Timeline
N/A (but start at least 14 weeks before the final strategy is
Practice Management
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