Attorney Development Plan
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Creating and Effective Associate Development Program for Tomorrow's Leaders. This presentation reviews the essential components of an effective program including: - evaluation and feedback - practice planning - compensation - advanced criteria
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Attorney Development Plan
- 2. ATTORNEY DEVELOPMENT PLAN ATTORNEY DEVELOPMENT PLAN WHAT IS THIS ALL ABOUT? ✓ Developing talented and motivated lawyers ✓ Ensure the best attorneys stay with the firm ✓ Building a high performance culture
- 3. ATTORNEY DEVELOPMENT PLAN ATTORNEY DEVELOPMENT PLAN WHAT DOES IT TAKE? ✓ Equity member commitment ✓ Associates and Income Members have to perform ✓ Honestly evaluate performance
- 4. ATTORNEY DEVELOPMENT PLAN ATTORNEY DEVELOPMENT PLAN HOW IS IT ACCOMPLISHED? ✓ The right recruiting strategy ✓ The right evaluation and feedback systems ✓ Priority training and development (the best and the rest)
- 5. ATTORNEY DEVELOPMENT PLAN ATTORNEY DEVELOPMENT PLAN HOW IS IT ACCOMPLISHED? ✓ Short and long term incentives ✓ Placing the right people in the right roles ✓ Advancement criteria
- 6. 33% Evaluation and feedback system Practice planning Compensation and incentives MAIN COMPONENTS OF AN ATTORNEY DEVELOPMENT PLAN
- 7. ATTORNEY DEVELOPMENT PLAN EVALUATION AND FEEDBACK SUBJECTIVE CRITERIA Quality of professional work Client relations and service Personal development Business development efforts Profile building Administrative compliance Training and teaching Firm values
- 8. ATTORNEY DEVELOPMENT PLAN EVALUATION AND FEEDBACK OBJECTIVE CRITERIA Billable hours Timekeeper profitability Business credit Managing/billing profitability Originating profitability
- 9. ATTORNEY DEVELOPMENT PLAN EVALUATION AND FEEDBACK REWARDS SUBJECTIVE OBJECTIVE More salary emphasis Less salary emphasis Less bonus recognition More bonus recognition Equal Advancement weight Equal Advancement weight BUILDING LONG TERM VALUE PROFIT CONTRIBUTIONS
- 10. ATTORNEY DEVELOPMENT PLAN EVALUATION AND FEEDBACK DATA COLLECTION AND ANALYSIS Online Form - demonstration Grading Scale Practice Level Performance Measures
- 11. ATTORNEY DEVELOPMENT PLAN EVALUATION AND FEEDBACK ANALYTICS Evaluation score summaries Peer comparisons Progression measurements
- 12. ATTORNEY DEVELOPMENT PLAN EVALUATION AND FEEDBACK FEEDBACK Sharing results – view graphics Progression toward partnership (based on criteria) Performance improvement plans Individual meetings
- 13. 33% Practice planning MAIN COMPONENTS OF A ATTORNEY DEVELOPMENT PLAN
- 14. ATTORNEY DEVELOPMENT PLAN PRACTICE PLANNING PROCESS WHAT IS A PRACTICE PLAN? Non billable time investments General investments Firm specific investments
- 15. ATTORNEY DEVELOPMENT PLAN PLAN DEVELOPMENT CONTEXT Years 1 – 5 heavily influenced by the members After year 5 Attorney choices aligned with the firm’s opportunities Personal choices balanced with the firm’s needs As a lawyer matures, more latitude is afforded PRACTICE PLANNING PROCESS
- 16. ATTORNEY DEVELOPMENT PLAN PLAN DEVELOPMENT CONCEPTS Shared vision of success Train associates to view career strategically Focus efforts according to potential PRACTICE PLANNING PROCESS
- 17. ATTORNEY DEVELOPMENT PLAN SAMPLE PLAN REVIEW Economic summary – sample plan Plan detail Frequency PRACTICE PLANNING PROCESS
- 18. ATTORNEY DEVELOPMENT PLAN PRACTICE PLANNING PROCESS FREQUENTLY ASKED QUESTIONS Do people really do this? Are there any compensation guarantees? Is compensation based on these plans? What if I do not participate?
- 19. 33%Compensation salary and bonus MAIN COMPONENTS OF A ATTORNEY DEVELOPMENT PLAN
- 20. Associate/IP compensation and bonus plan philosophy Competitive base salaries Performance based bonuses Goal is to reward hard work and increased value to clients ATTORNEY DEVELOPMENT PLAN
- 21. Compensation philosophy Base compensation long term value Bonus short term performance
- 22. Objective Subjective Billable Hours Profitability Leverage Billable Hours Individual Profits Leverage Profits Bonus basis Objective factors Associate/ IP Bonus Plan Recap
- 23. Objective Subjective PD efforts Specific contributions Determined by committee Pre-determined scale Bonus Subjective - optional Associate/ IP Bonus Plan
- 24. MEMBERSHIP ADMISSION CRITERIA Associate progression to income partner Income partner to to equity partner
- 25. ATTORNEY DEVELOPMENT PLAN PROMOTION TO INCOME PARTNER COMMON CRITERIA Minimum of 5 years with the firm Ability to grow existing firm business Bar or civic association leadership Speaking and publishing success
- 26. ATTORNEY DEVELOPMENT PLAN PROMOTION TO INCOME PARTNER COMMON CRITERIA Recruiting support Composite score of 4.0 on a 5.0 scale Ability to leverage other lawyers and paralegals Economically viable
- 27. ATTORNEY DEVELOPMENT PLAN INCOME PARTNER TO EQUITY PARTNER COMMON CRITERIA Continued satisfaction of income member requirements Annual originations of $350,000 Newly originated recurring billings of at least $75,000
- 28. ATTORNEY DEVELOPMENT PLAN PROGRESSION TO PARTNERSHIP Associate 5 years Income member 2 years +- Equity member 7 years +- TIMELINE
- 29. ATTORNEY DEVELOPMENT PLAN ORIGINATION FUNDAMENTALS BOOK OF BUSINESS DEFINED Business originated and controlled Inherited business trough a succession or strategic plan Certain client sharing credits
- 30. ATTORNEY DEVELOPMENT PLAN BOOK OF BUSINESS DOES NOT INCLUDE Business without opportunity cost ORIGINATION FUNDAMENTALS
- 31. ATTORNEY DEVELOPMENT PLAN COMPONENTS OF A SAMPLE BOOK Business that you originate should be at least 50% Business that you inherit or share in 45% Nominal client credits from other partners 5% ORIGINATION FUNDAMENTALS
- 32. b r i a n @ p e f o r m l a w . c o m PerformLaw.com
Editor's Notes
- What do we have to do together? The members of the firm are committed to providing each attorney with the training, feedback, mentoring and incentives to perform at a very high level The associates in turn will be expected to perform at very high levels and to prepare themselves for increased responsibility
- The evaluation and feedback system Please review the evaluation form being passed out Grading scale Excellent Exceeds expectations Meeting expectations Below expectations Unacceptable Overall practice level Overall practice level Novice Intermediate Advanced Expert Specific performance measures – all Quality of professional work Client relations and service Personal development Business development efforts Profile building Training and teaching Administrative compliance Firm Values
- The evaluation and feedback system Each attorney will have be given a summary of their evaluation scores in each area Each attorney will be given the opportunity to review the actual evaluation forms complete with written comments Each attorney will participate in at least an annual detailed evaluation meeting with one or more of the equity members These evaluation meetings will provide an opportunity for structured feedback
- The evaluation and feedback system Important points Scores lower than a 3 are an issue As you will see later, to progress to Junior Membership, you must have a composite score of 4.0 of a 5.0 scale, with no grades lower than 3.0 As you become more experienced, the tougher and more comprehensive the evaluation scope For example, in the beginning years of your practice several areas will be graded as NA, which has no effect on the evaluation
- What is a practice plan? A plan to focus investments of non billable time on those activities that will create the most value for the associate General investments Time investments that are good for all lawyers Firm specific investments Time investments of particular value to the firm
- How is a practice plan prepared? In the early years of an attorney’s ATTORNEY, the plan is guided mostly by the members of the firm As an associate becomes more experienced, the substance of the plan is more heavily influenced by the associate ATTORNEY choices based on the firm’s opportunities Personal choices balanced with the firm’s needs
- How is a practice plan prepared? In the early years of an attorney’s ATTORNEY, the plan is guided mostly by the members of the firm As an associate becomes more experienced, the substance of the plan is more heavily influenced by the associate ATTORNEY choices based on the firm’s opportunities Personal choices balanced with the firm’s needs
- What is the practice planning process? Review sample practice plan Economic summary Planned billable expectations Hours Billings and realization Collections Other firm specific economic measures Review sample practice plan Review at meeting General notes Not all of the activities will be priorities at all times in your ATTORNEY and may vary among associates depending upon individual talents and firm needs Generally, as you become more experienced, you plan contains more priorities
- Frequently asked questions Do people really do this? Are there any guarantees? Do I do this even after I have my own clients and become a member? What if I do not participate?
- Bonus
- A minimum of X years with the firm An ability to grow existing firm business Leadership in bar or civic associations, for example: Attorney will have been published in an accredited bar journal or other publication at least once during the 5 year evaluation period Active member of at least 1 professional organization Conducted professional speaking engagements
- Support the firm’s recruiting efforts, as appropriate Have a composite score of 4.0 on a 5.0 scale on the previous two attorney evaluations No grade lower than a 3 in any one area. Managing enough business to demonstrate an ability to leverage other lawyers and paralegals Annual billings of at least $25,000 as a billing timekeeper
- Continued satisfaction of requirements of junior membership Attainment of $350,000 in annual billings credit as originator, billing timekeeper, or as a part of client credit sharing agreement with another member, for the two years preceding advancement. Newly originated or developed business of $75,000 (counts toward the $350,000 requirement), such new business must be recurring in nature and been attained in each of the immediate 2 years preceding advancement
- Achieve consistent (2 years or more) leveraged billings of at least $100,000 Receive the affirmative vote of the Equity Members holding at least 70% of firm membership interests
- What is a book of business and why is it important? Your book includes: Business that you originate and control Business that you have inherited and control through a succession or strategic plan- or by accident Business that you receive credit for within the firm’s client credit sharing system Your book does not include: Business that you operationally help manage for another partner who is significantly involved in the client relationship and/or cases You may receive nominal client credit for this service
- What is a book of business and why is it important? Your book includes: Business that you originate and control Business that you have inherited and control through a succession or strategic plan- or by accident Business that you receive credit for within the firm’s client credit sharing system Your book does not include: Business that you operationally help manage for another partner who is significantly involved in the client relationship and/or cases You may receive nominal client credit for this service
- How much business should come from each component of a book? Difficult to answer but let’s try this: Business that you originate should be at least 50% Business that you receive trough a client sharing program in which another partner is active and controls the relationship should not exceed 5% of your total book (good citizen credits) Business that you inherit or are given strategically (client or case significance) would make up the difference 45%