Welcome to The One Minute Manager. Our goal is to provide you with quick tips that will enhance the success of your practice. Within 60 seconds you will gain an idea that will increase your profitability or simply ease the burden of a difficult management issue. We hope you will find this a valuable resource.

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The One Minute Manager . . . . .

This has been a particularly bad year with the influenza infection emptying many law offices for extended periods. Work loads get spread among fewer people and the anxiety level increases as deadlines are missed and client service diminishes. The use of costly temporary assistance from outside agencies seldom delivers the value or support needed.

It is often during these times that the demands increase for hiring additional staff. The pressures certainly seem to justify the need and the hiring begins. It is this cycle that leads to the common problem of over staffing.

Law firms inevitably go through periods of peak demand that cannot be met by existing staff; and slower times with excess staff. At what level should you be staffed for typical hill and valley activity? The mid point seems logical but you can expect needs to be unmet during peak period. Firms that have a high service level strategy can move up higher, but will have higher costs and greater periods of excess capacity.

Staffing decisions are frequently based upon visceral reaction and little analysis. An analysis of your payroll costs is a better indicator. Law firms usually have a single line item on their income statement for salaries. Consider the advantage of a breakout of costs related overtime and sick leave. Rising overtime costs may trigger a better hire decision; and you will likely be shocked at your cost of sick leave. A further breakout of salaries related to associates, assistants, and administration will help identify rising costs, not linked to revenue growth, when stated as a percentage of billings.

A simple change to your accounting system will bring you more informed staffing decisions to maintain or improve profit margins.