LexiconLIVE! Webinar Recording: Fundamentals for a New Fiscal – Part 2

Lexicon recently hosted part 2 of its webinar series covering the fundamentals for setting up your law firm for success in the new fiscal year.

The second part of the series covered the importance of law firm culture, succession, and cybersecurity.

Law Firm Culture and Operations

According to a 2020 Thomson Reuters report on the state of the legal market and a 2019 survey from Aderant Business of Law and Legal Technology, law firm productivity decreased 1.5% from 2018 to 2019 and 31% of firms noted operational efficiency as their top challenge.

The pursuit of high financial performance or growth can undermine a firm’s culture and break foundational processes.

To help set your firm up for success you should perform an annual review of the firm’s culture and operations. Identify whether short-term initiatives or successes have come at the expense of the firm’s culture.

A thorough review allows the firm to:

  • Correct unwitting detours.
  • Embrace good changes.
  • Align firm’s culture and operations with strategy.

There are six key culture/operations considerations you should keep in mind for the new year:

  1. Define your values
  2. Look for the right skills/fit
  3. Hire for culture
  4. Growth
  5. Decision making
  6. Quality system

Succession in the Legal Industry

According to Thomson Reuters, 40% of firms feel prepared to deal with succession of partners while 61% feel unprepared and only 37% have a formal succession planning process in place.

Lawyers who don’t have a succession plan for their practice leave clients and firms in jeopardy. You should always ensure your firm has a client relationship and leadership succession plan. It is a good idea to perform an annual review of existing succession plans to determine whether a refresh is required and whether implementation elements need updating.

Cybersecurity in the Legal Industry

According to JD Supra, there is a hacker attack every 39 seconds. Most of those are linked to external vendors and most companies take nearly six months to detect a data breach.

Up to 42% of law firms have experienced a data breach and 43% of cyber attacks target small businesses, according to the American Bar Association. Since the COVID-19 pandemic began, the FBI reports there has been a 300% increase in reported cybercrimes.

Just one breach can ruin your reputation and lead to client loss, leaked data, lost revenue, and bar complaints/action. For these reasons, it is vital to perform an annual assessment of your company’s cybersecurity risks so you know what the risks are and understand their impact.

Register for Our Next Webinar

Lexicon will continue its webinar series in the coming weeks and months ahead. Each webinar is devoted to a topic that will help law firms grow and succeed. Make sure you register for more tips and strategies to help improve your firm.