During these trying economic times we are often asked how law firms can improve profitability through cost reduction. In most law firms the real problem is insufficient gross income and lack of sufficient investment (spending and time) on marketing and initiatives designed to stimulate client and revenue growth. For most firms increasing revenues is the most effective way of impacting the bottom line. However, we do find that there is waste and unnecessary overhead that eats away at profits and a cost control program is also recommended and implemented. During recessionary times such as we are currently facing - drastic cost control are often the only option. Reducing overhead can immediately and effectively improve a firm's bottom line.

Often the term strategic plan and business plan are used to mean the same thing. The general planning process is similar. However, I believe there is a difference.

Question I am a solo practioner in Southern Missouri. I have been in practice for 20 years. I have a very successful practice with an excellent client base. I have three paralegals that I am able to keep busy. I have recently been thinking about whether I should consider joining another law firm. What should I be thinking about and what should I be looking for?

Answer: I believe that the key question is - can a law firm offer its lawyers a measure of value independent of the skills, talents, and contributions of its partners? The answer can only be answered by recalling the advantages that the best law firms have over sole practitioners or groups of lawyers who share overhead and nothing more. These advantages include the following: .

• Shared skills and expertise
• Backup or additional help when needed
• A safety net during economic downturns
• Shared resources, such as technology, library and research access, forms, and work products
• Cross-selling and/or referral of work
• Access to the expertise of lawyers in various disciplines
• Highly trained associates, legal assistants, and support staff
• A firm name or reputation that makes marketing easier
• More-sophisticated and highly skilled management
• Opportunities for individual lawyers to become highly specialized

• A system of partner coaching that brings out the best in each partner
• Emotional support, encouragement, and personal recognition
• Flexibility that allows lawyers to be more involved in probono, community, and bar activities
• Continuation of the firm beyond the tenure of the current owners

Just because a law firm holds itself out to be a firm does not mean that the advantages listed above exist in that specific law firm. If not - you might be better off staying solo.

John Olmstead will give a presentation entitled "Selling Your Ideas to Your Partners: The Administrator as Internal Consultant" on July 20, 2011 at the ALA monthly meeting held at the Iowa State Bar Association. Contact Phyllis Heatheriton, President-Elect of the Iowa Chapter - Phyllis@duncangreenlaw.com for additional details.

John Olmstead will present a session entitled - Managing Client Trust Accounts: Setting Up Client Trust Account Software October 27, 2011 at Hilton Springfield, Springfield, Illinois. The program will be part of the Illinois State Bar Assn 7th Annual Solo Small Firm Conference.