Ralph Waldo Emerson once said, "Knowledge is the antidote to fear."
Well, maybe fear might be a bit of an exaggeration.
However, in recent confidential discussions with law firm leaders around the world, I have noticed a very interesting apprehension that seems to be emerging as they consider the business prospects for their firm in for the next two to five years.
There is a recognition that the long-term economic vision should be optimistic, built in part on the robust recovery from the COVID-19 pandemic and also some well-aimed investments by governments in areas such as the improvements in infrastructure that many of the mature economies will need to take full advantage of new growth opportunities. At the same time, this optimism is counterbalanced -- in some instances, outweighed -- by a pessimism about how short-term economic and geopolitical issues could destabilize progress and even, in some instances, have long-term negative consequences.
How then, can a law firm navigate through the strategic fears about the rest of the decade -- even the rest of 2025 -- with a reasonable degree of confidence?
What are the "must-do" priorities for your firm for the next three years?
One thing should be clear: "Wait and see" is not a strategy. When opportunities or challenges arise in today's markets for legal services, it is too late to start planning how to manage them.
We are advising most of our clients to focus on a set of three to five -- but no more! -- well-informed strategic priorities. These are the goals and supporting actions that, if achieved, will provide the best return on the firm's investments of time, intellectual energy, management attention and resources. They should be simple, defined in terms of observable results, and powered by actions and behaviors that everyone in the firm understands.
Anticipation and alertness to early warning signs
Planning in such an environment requires more than close monitoring of current events. It must also include a reasoned anticipation of near-term future events -- even some that two years ago would have been considered unthinkable -- and an alertness to early warning signs of them happening. These can involve unpleasant thoughts and, in some law firms, there is a risk that conflicting political beliefs among partners could disrail the process. But these discussions must take place, and usually need an outside facilitator such as a Walker Clark consultant if the partners and other key members of the firm are to define common ground from which they can move forward. Critical to this process is the development of a set of simple but reliable metrics, both quantitative and qualitative, that can serve both as progress indicators and early warning signs of impending trouble.
The bottom line is this: Is your law firm ready now to manage the risks and capture the opportunities that that could quickly arise in 2025?
At Walker Clark LLC, we have been helping our clients hope for the best but prepare for the worst for more than 22 years. (Thankfully, most of our worst-case scenario plans have not been needed, even though the process produced lasting value to the firm's planning capabilities.) We offer are broad range of strategic planning tools and methods designed specifically for law firms. Unlike traditional methods that often result in superficial plans, Walker Clark focuses on actionable strategies grounded in real-world data. There are four core principles to our approach:
- Customization: Each planning project uses concept, tools, and methods that are right for the distinct characteristics of each firm.
- Data-driven insights: Strategic priorities are informed by a thorough analysis of data, rather than the product of generic business-school theories and untested assumptions.
- Focus on integrated implementation: We work with our clients to focus on realistic initiatives to achieve practical, measurable results. We also support the change-management processes that most law firms need to reach their goals.
- Return on investment: Planning -- especially when it involves a high element of anticipatory risk management -- is a significant investment. We strive to identify actions that will produce the best sustainable returns on a firm's investment of partner time, management attention, intellectual energy, and resources.
The goal is to produce, in as little as 60 days, a concise, motivating, and -- above all -- realistic plan: something that can be printed on a single sheete of paper, not in a notebook that few will ever read; something that can actually be achieved even in uncertain economic, political, or market conditions.
Turning knowledge into actionT
As Emerson reminds us, knowledge is the antidote to fear—and nowhere is this more relevant than in uncertain times. The next three to five years will undoubtedly bring challenges — but they can also bring opportunities for growth, innovation, and stronger competitive advantages in the legal services market. By planning thoughtfully today, your firm can position itself for sustainable success in the future —no matter what changes lie ahead.
Norman K. Clark
For more information about Walker Clark strategic planning services, click here.
