Issues to be Addressed for Effective Strategic Planning (Part 2 of 2)


ALA Soundings

In Part 1, we addressed a common problem with Strategic Planning in law firms – often Strategic Plans are implemented ineffectively, if at all. Our view is that a solution lies first in the commitment of the firm to Strategic Management, and second to the preparation of a Strategic Plan to set the direction. Part 1 defined Strategic Management as distinct from Strategic Planning, and introduced an Organizational Alignment Model as a foundation for thinking about both.

 

In this article, Part 2 of the series, we address the use of this tool as a basis for law firm Strategic Planning.

 

To begin, let us assume the following situation in your law firm:

  • The partners have decided it is time to address Strategic Planning, either to refresh a prior plan or to begin Strategic Planning as a new process;
  • The partners and senior administrators of the firm understand that successful use of the Strategic Plan will require making the Plan the driver behind firm management, and are willing to commit the Firm to a Strategic Management process; and,
  • Decisions have been made regarding whom to include in Strategic Planning, how to go about the process, and how the process should be scheduled and led.

Now what? How do you go about analyzing and understanding your current situation (Point A), deciding where you want the firm to be in the future (Point B), and the steps needed to close the gap (the details of a Strategic Plan)?

From Point A to Point B

An Organizational Alignment Model was developed by McKinsey and Company to help analyze both the starting and ending points of Strategic Planning. This includes consideration of seven internal elements that must be in alignment if the organization is to succeed.

The seven elements (all conveniently beginning with the letter “S”, hence reference to this as the “7-S Model”) are:

 

  • Strategy: the plan devised to build and maintain competitive advantage over other law firms.
  • Structure: the way the firm is structured and who reports to whom.
  • Systems: the daily activities and procedures that partners, associates and support staff engage in to get the job done.
  • Shared Values: the core values of the firm that are present in the firm culture.
  • Style: the style of leadership in the firm.
  • Staff: the partners, associates and support staff and their general capabilities.
  • Skills: the actual skills and practice competencies of all employees.

 This is based on the insight that, for an organization to perform well, these seven elements need to be aligned and mutually reinforced. So, the 7-S model can be used to help identify what needs to be realigned to improve performance, or to maintain alignment and performance as a result of changes contemplated in a Strategic Plan.

 

We recommend the Strategic Planning Team use the 7-S model to analyze the current situation (Point A), a proposed future situation (Point B) and the gaps and inconsistencies between them. It is then a question of building your firm’s Strategic Plan on the vision of Point B, and all of the supporting tactics and action items needed to get there.

The 7S model is a good framework to help you ask the right questions – but it will not give you all the answers. For that you will need to bring together the right knowledge, skills and experience.


Key Questions

Here are some of the questions that you will need to explore to help you understand your situation in terms of the 7S framework. Use them first to analyze your current (Point A) situation, and then repeat the exercise for your proposed situation (Point B).

Strategy:

  • What is our strategy?
  • How to we intend to achieve our objectives?
  • How do we deal with competitive pressures?
  • How are changes in customer demands anticipated and planned for?

Structure:

  • How is the Firm structured?
  • What is the role of practice groups?
  • How well does the structure support our strategy?
  • How do the team members organize and align themselves?
  • Where are the lines of communication? Explicit and implicit?

Systems:

  • What are the main systems that run the organization? Consider practice management, financial and HR systems as well as communications and document storage.
  • Where are the controls and how are they monitored and evaluated?
  • What internal rules and processes do we use to keep on track?

Shared Values:

  • What are the core values of the Firm?
  • What is the corporate/team culture?
  • How do we deal with behavior that is inconsistent with our Shared Values and culture?

Style:

  • What is the leadership style used in the Firm?
  • How effective is that leadership?
  • Do employees/team members tend to be competitive or cooperative?
  • Are there real teams functioning within the organization or are they just nominal groups?

Staff:

  • What positions or specializations are represented within the Firm?
  • What positions need to be filled?
  • Are there gaps in required competencies?
  • Do we have the right balance of skills and competencies?

Skills:

  • What are the strongest skills represented within the company/team?
  • Are there any skills gaps?
  • What is the company/team known for doing well?
  • Do the current employees/team members have the ability to do the job?

Remember, your planning team will want to go through this exercise twice – once for your current (or Point A) position and a second time for your future (or Point B) planning positions. This can be done in a variety of ways.

One, Point A analysis can be done by the planning team prior to the partner group meeting as a whole.  As a starting point for the larger group, the pre-planning information will be presented to the partner group for review and discussion, as well as discussion leading to Point B. A second approach involves the planning team completing all questions in the Point B (future) exercise with their best answers. The Point B analysis can then be used by the partner group as a “straw man” plan to be discussed, pulled apart if necessary, and re-assembled but with some basic thought having been done in advance. A third approach engages the entire partner group to participate in both Point A and the Point B exercises as a way to gain the greatest participation and buy-in.

However you choose to apply it, we believe the Organizational Alignment Model is a useful tool in organizing a firm’s thinking related to both the current and future situations, and for insuring all internal issues relevant to the Plan are considered.

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Conclusion

The issues requiring attention in the Strategic Planning process can often be identified by comprehensively applying the Organizational Alignment Model. When additional preparation is required, the Planning Team for a law firm can ask and answer the questions provided in this article to develop a deeper understanding of the present and future positions of the firm.  The focus in Strategic Planning can then turn the necessary work to closing the gap between Point A and Point B.