The components of a law firm's compensation plan and partner buy-in is important to the success of a law firm's compensation program. However, how you setup and constitute your compensation committee will is crucial. In a subjective system trust is paramount. How the members are selected, who serves on the committee, how the committee operates, and other matters must be spelled out and communicated to all partners. Here are a few ideas:

Managing people is one of the toughest challenges that many lawyers and administrators must face and deal with. Getting firm employees to follow firm policy and stop doing what they should not be doing is a challenge for all. If employees are doing what they should not be doing tell them to stop. Seriously, you can't beat around the bush and be sheepish concerning your expectations concerning desired performance and behavior in the office.

Question I am an associate in a 6 attorney firm in Cleveland, Ohio. I have been a practicing attorney for four years and have been with my present firm since law school. I am considering starting my own firm. What is your advice for someone like me starting up a practice on a shoestring?

Answer: I receive at least ten calls a week from attorneys that are in solo practice or are the sole owner of a small law firm with similar concerns and frustrations. However, there tends to be different needs and challenges depending which phase of development the firm is in. Last month I provided survival tips for the first phase. Here are some tips for Phase II.

Phase II - Taking the Practice to the Next Level - New Challenges - New Skills Required Last month I responded to a question concerning starting a new law practice and I outlined the first phase of start-up. Eventually, you must address and face Phase II.

If you are successful in Phase I you will eventually need help whether it be administrative, paralegal, or another attorney. Now you must manage others as well as yourself. More office space will be required - especially if you are currently in a home or virtual office. A new set of skill sets (people skills) is now required.

John Olmstead will be presenting again this year at the Missouri Bar Solo and Small Firm Conference, June 9, 2012, on the topic: - Law Practice Phase Two: Building a Plan for the Next Era of Your Career. We will also have a booth in the exhibit area as well. Drop by and see us.

Are you looking for a quick and dirty checklist to use to review the profitability of your practice. Click below for a copy of our Law Practice Profitability Checkup.

We frequently consult and work with law firm clients working on implementing succession strategies that involve the sale of a law practice, merging with another firm, or hiring lateral talent. If you are looking to join up with another firm keep us in mind. We will be posting confidential listings on our website in the near future.