Five keys to a successful strategic plan

By Julious P. Smith Jr, Chairman Emeritus, Williams Mullen

Most law firms make the same mistakes when creating strategic plans. In planning, as with most things, the fundamentals are important. The basics are simple, but easy to miss.

Below I lay out five keys to a successful strategic plan. Although much more goes into the plan than these five factors, focusing on them gives the process a much better chance of success.

1. Mission statement

The mission statement forms the most critical part of the strategic plan. Too many firms confuse a mission statement with a statement of the firm’s values or principles. Recitations about great, dedicated lawyers and staff capture the essence of the firm, but not its mission. The firm’s mission includes more.

A mission statement acts as a roadmap or filter. It should state what the firm wants to become and where it wants to go. The strategic plan becomes the vehicle for accomplishing that mission.

2. External focus

Much like the mission statement, many strategic plans focus on perceived internal shortcomings. The plans talk about increasing billable hours, getting people to work harder, and enabling practice groups to function better. These are laudable goals, but not for a strategic plan.

The plan’s focus needs to be external and deal with questions like:

• What types of clients does the firm want to represent?

• What markets should be its focus?

• What industries can the firm best penetrate?

To achieve the goals set out in the plan, some internal changes may need to occur. Those changes should be a by-product of the plan, not the plan itself.

3. Vision

The managing partner or executive committee must create the strategic direction of the firm. Consensus should be built around that vision. Good leaders know where they want the firm to go and work to get others to embrace that direction.

Leaders must get input and feedback on their vision. Only that way can they know that the firm supports the selected direction. The vision comes first, then the consensus – not the other way around.

4. Brevity

Hardbound 50 and 60-page strategic plans look good in the library, but rarely succeed. A firm can achieve a well thought-out two or three-page plan. The plan may creep out to five pages and still be doable. Beyond that, the firm loses its focus.

Succinct, discernable goals create an understandable and, more importantly, achievable strategic plan. A longer, more detailed plan leads to lack of focus and failure. Keep it short and simple.

5. Execution

Unfortunately, lawyers by nature plan well and execute poorly. Many firms spend a lot of hours and dollars creating a strategic plan, pat themselves on the back and store it away never to look at again.

Build deadlines and reporting processes into the plan. Have expectations about its execution and regular progress reports. Otherwise, the plan just becomes another failed exercise.

Following these five keys will give the firm a good base for its strategic plan.

jsmith@williamsmullen.com