GLC |Law Firm Consulting Group

Law Firm Advisory & Management Consulting Services

At a time when the legal industry is going through revolutionary change, GLC|Law Firm Consulting

Group’s focus is to assist law firm leaders and senior managers establish effective strategic management

and leadership processes designed to improve and sustain competitiveness in the market. Finding the

right competitive differentiation for any firm is unlikely, if not impossible, without and effective long

term vision and supporting strategy.

Our professional consultants employ proven methodologies and industry specific knowledge to help law

firms achieve measurable and sustainable strategic and operational improvements. Our legal industry

experts understand the rapidly changing pressures and increasing enterprise wide decisions brought to

bear by today’s new legal market place.

Services : What We Do…….

Our consultants assist firms increase their competitive position in the marketplace through a

combination of services designed to:

Develop competitive firm-wide vision and strategies

Conduct organizational change necessary to implement the strategy

Develop partner compensation and performance measurement systems

Align practice groups with firm-wide strategies

Enhance cost controls and management

Improve utilization of strategic technology

Provide rigorous and objective financial analysis, managerial review and guidance

Lateral, merger & acquisition due diligence and searches

Financial management and benchmarking

Strategic sourcing and procurement of operational solution providers

Managing partner/ leadership coaching/ succession planning

We also provide scalable, customized Finance, Accounting and Operational solutions and consulting services from strategy and leadership to project execution. We support the offices of the law firm’s C-Suite using a unique blend of engagement models

We can assist any law firm including those facing challenges, or in transition, whether it’s rapid growth, mergers, acquisitions or exit, integration, turnaround, building infrastructure, systems optimization, improving performance, bridging a gap in leadership or skill set, or simply augmenting staff to maintain productivity.

GLC |Law Firm Consulting Group

Approach : How We do It……

Since we recognize that the issues and challenges facing each law firm are unique our consulting process

and approach is to first work with our clients to assess and evaluate the current situation. Once we have

jointly developed a clear understanding of a firm’s competitive position, organizational strengths,

weaknesses and culture we provide specific advice and assistance in developing strategies and solutions

to achieve their stated objectives.

Example/Case Study:

A large regional general practice law firm struggling with declining profitability, loss of market share,

partner defections and on-going recruitment challenges contacted us for help. The firm had a long and

successful history but was unprepared for the new challenges brought about following the financial

crisis of 2008 and the resulting new competitive challenges associated with the maturation and

transformation of the legal industry structure.

The firm engaged us to provide, in their words, “an independent evaluation of the firm and individual

practice group business systems and goals, and a proposed plan to improve the overall efficiency and

operations of the firm and/or particular practice groups. “

After completing an initial Strategy & Operations Assessment we presented the firm with a written

report of our findings based on substantial input and feedback received through confidential interviews

with firm leadership, the attorneys, paralegals and staff regarding issues to be addressed. All members

of the firm made it clear that they were unhappy with how the firm was operating and the primary

contributing factors were identified:

Size and geographical separation made it increasingly difficult to operate as a democracy.

Partners of the firm perceived that the management can accomplish more than it was.

No mechanism existed to implement or communicate effectively and consistently.

The loose firm/practice group organizational/management make it difficult to enhance

communication, cohesiveness and operational efficiency.

Lines of authority and responsibility are not as clear as they need to be.

Some practice groups not profitable – “not pulling their weight”

Lack of strategic vision (internal/external)/competitive positioning

Partners involved in individualized practice management and administration (silos)

Underproductive lawyers

Aging rainmaker base – no formal client, referral & rainmaker succession planning.

Aging knowledge base – no formal knowledge transfer/professional development/succession

planning.

Dissatisfaction with overall firm efficiency, productivity, and profitability.

Not enough attorney specialization - gaps in substantive expertise.

Not enough coordination and interaction among members between practices and offices

(operationally and business development)

We presented a vision, business development strategy and a definitive succession plan to address

significant gaps in expertise and knowledge identified as a significant threats to the firm and its current

competitive position and practice offerings. We also recommended that the firm endorse a new practice

management model and restructured of the roles and responsibilities of its Practice Group Leader

positions and Business Development Committee to improve communications, the consistency of those

communications, and create direct accountability and authority for implementing strategies to improve

business development, operational efficiency and service delivery.

With our assistance the firm reached consensus on a vision and the development of an integrated

package of strategies to achieve its business goals, placing it on a more solid foundation to continue to

move forward incorporating a new culture of accountability and continuous process improvement

necessary to retain top talent, drive growth, and improve profitability and efficiency.

Example/Case Study:

A successful and growing national boutique law firm engaged us to work with them in evaluating and

performing a business audit and develop a strategic 3-year financial plan to help guide them in financing

the growth in lawyers necessary to meet increasing client demands. Although successful they never

seemed to really understand their firm’s cash flow and needed a more formalized way to present, share,

plan, and monitor the firm’s profitability and working capital/cash flow.

We completed a financial analysis & operational review to:

Develop a clear understanding of current cash-flow.

Determine prior 12-24 months operating results/profitability

Evaluate asset & liability positions

Determine key performance indicators (KPIs)relative to market (geographic and practice

specific)

Evaluate Performance/Compensation Systems (philosophy, accountability, criteria,

process & data)

As a result of this analysis and review we were able to assist the equity partners and leadership team

develop 3-year financial plan, implement budgeting process and management reporting package to

track progress against the plan, and provide key performance indicators to help identify where

management action/policy change, or some sort of course correction may be required. The financial

analysis and resulting planning tools developed enabled the firm to better understand and manage its

cash flow and plan its growth without sacrificing current profits.

For More Information Contact:

Michael Blanchard

GLC |Law Firm Consulting Group

28 Prince Street

Rochester, NY 14607

(585) 258-3910 (Office)

(585) 662-8720 (Direct)

GLC |Law Firm Consulting Group

Strategy & Operations Assessment/Benchmarking

SERVICES OVERVIEW AND PROCESS

An in depth firm analysis will encompass any and all issues that a firm may be dealing with, including firm strategy, profitability, management and governance, attorney productivity, partner and associate compensation, practice/business development, office administration and leadership succession planning. Although we are flexible depending on the circumstances, the typical methodology we have developed begins begin with a thought provoking confidential questionnaire covering all aspects of law firm operations and culture for each of the attorneys to complete and return to us in confidence. We also review and analyze copies of all relevant firm reports and documents, such as profit and loss statements, attorney productivity and compensation histories, aged accounts receivable, copies of partnership/corporation documents, etc. The process continues with a visit to the client’s offices for the purpose of interviewing the members of the firm and any other relevant personnel. Following that visit, we provide the client with a written summary, or “word picture” of the firm, including our impressions and observations, analysis of the financial data, comparisons with other firms, etc. The process we have described has proven to be very effective to identify the issues and concerns and to gather the necessary information to build consensus for change and the development of a culture of continuous process improvement. The final step is an exit briefing, which usually lasts a full day, at which we present and discuss our written report that contains specific recommendations on the issues identified by the review process described above. The exit meeting is typically held about 6 to 8 weeks after our visit to the client’s offices, depending upon scheduling. We don’t indulge in boiler plate in the preparation of our reports. They are all drafted and tailored to the unique culture and personality of each individual client/firm. Our style is to be frank, and to call things the way we see them, and, when appropriate, we are accustomed to saying things people don’t want to hear, but need to hear to build a successful firm in the new normal.

GLC |Law Firm Consulting Group

Law Firm Strategy & Leadership Coach (SLC) Retainer Program (Fixed Fee)

PROGRAM & SERVICES OVERVIEW

After years of predictable and respectable growth most lawyers and their firms were not prepared for the economic meltdown and paradigm shift in its basic business model that simultaneous occurred during the recession of 2008. The traditional legal business model has been altered forever. Globalization is a reality, technology is redefining how to deliver and promote legal services and the economy has put the client in the driver’s seat.

As the legal industry evolves into a “new normal” and becomes an increasingly more competitive, law firms must navigate unchartered waters. Firm leaders must embrace a new future. For a growing number of larger firms, that future includes a Chief Strategy Officer. However, for most firms the creation of this position may not economically feasible or justified at it size. The fewer your answers are to the following, the greater your need for a strategist.

Who in your firm is identifying and monitoring the competition or creating points of differentiation?

How many of the seven forces of strategy development are being managed by your firm’s leadership?

Recognizing the critical importance of the “strategist” role and its value to leadership for firms of all sizes we have created the Law Firm Strategy & Leadership Coach Retainer Program.

The role of the Strategic Leadership Coach (SLC) is to act as a firm “strategist” to understand and cope

with competition as identified by the seven forces that shape law firm strategy:

1. Industry Rivalry (Intensity)

2. Threat of New Entrants

3. Power of Talent/Service Providers

4. Power of Clients

5. Threat of Substitute Service Providers

6. Governmental Regulations

7. Alignment of Compensation & Culture

The principal service goals of the Law Firm Strategic Leadership Coach Retainer Program are to assist and counsel firms in:

Identifying & analyzing the competition

Developing a vision and strategy

Facilitating a culture of continuous improvement across the firm

PROGRAM ELEMENTS

Competition: Strategy begins and ends with the competition. The SLC will conduct external research – competitive intelligence and market intelligence – to understand the firm’s position, its value and its points of differentiation.

Vision: Armed with market research and internal awareness, the SLC is instrumental in assisting in the development of the firm’s vision.

Opportunities: Aware of the competition and the vision, the SLC can spot growth opportunities: higher wallet share, new clients, and M&A targets.

Execution: Even the best strategy is worthless without implementation. The SLC serves as the driver of implementation and accountability.

PROGRAM BENEFITS

Finding the time to focus on longer term vision, strategy and implementation can be extremely difficult. The SLC solution provides firms with the following service benefits:

A uniquely qualified counsel and mechanism for focused organizational engagement in the strategic planning process - a independent advisor with specific law firm expertise and industry knowledge dedicated to helping the firm to understand and ultimately adapt to this forever changed market.

An independent and objective advisor dedicated to helping the firm to understand and ultimately adapt to this forever changed market by offering opinions and recommendations on strategy, policy, operations and leadership development/succession.

A coaching bridge for smooth organizational transformation.

Assistance to the firm in developing candidate profiles and provide comprehensive executive search services for attorneys, lateral practice groups, merger or acquisition candidates and leadership succession of key management through knowledge of firm, its culture and its personalities developed as advisor to the firm.

Provide independent third party review/counsel to Management Committee and Compensation Committee. Provide external intelligence and interpretation of market forces and changes in law firm strategy and compensation practices. Assist firm with alignment with new and better pricing & matter management strategies.

For More Information Contact: Michael Blanchard GLC |Law Firm Consulting Group

(585) 258-3910 (Office) (585) 662-8720 (Direct)

GLC |Law Firm Consulting Group

Law Firm Growth & Merger Services

SERVICES OVERVIEW AND PROCESS

Before listing the specific assistance we would provide, we want to emphasize the key methodology underlying our approach to law firm growth and mergers – that their justification should be based on practice area compatibility and legal market business opportunities. Cultural compatibility, financial performance and economic parity, and the absence of “deal breakers” are, of course, important, but we believe mergers do not make sense unless they provide concrete benefits both to clients (in the form of stronger capabilities and better service), and to the firm itself through opportunities for revenue growth, practice and/or client enrichment, and ultimately increased profits. In all of our merger and acquisition work, we place an emphasis on identifying, verifying and, where possible, quantifying the concrete market-based benefits and business opportunities that are likely to accrue from the proposed combination. To these ends, we will work hard to gather competitive intelligence and carry out market due diligence to assess the relative attractiveness of different geographic markets, industry sectors, and legal specialties

Following is a suggested work plan for your consideration. Depending upon how a project progresses, together we may refine the scope and approach from time to time. Before we proceed with a project, however, we will jointly determine what approach we take based on the circumstances and your requirements.

TO HELP THE FIRM ACHIEVE ITS OBJECTIVES, WE SUGGEST THE FOLLOWING APPROACH:

ORIENTATION AND INITIAL WORK SESSION We will meet on one day with you, and others you deem appropriate. The purpose of this initial meeting is: (i) to ensure that everyone is "on the same page" with respect to the rationale, goals, and expected outcomes of the project and search process; (ii) to review a set of detailed search and screening criteria, which we will develop, on which to evaluate potential candidates (typical criteria include firm quality, size, profitability, culture, governance style, practice focus, client mix, and geographic locale); and, (iii) to discuss generally potential candidates, including any specific firms you may have already identified or firms where you have already had preliminary discussions. Following this meeting, we will begin our detailed search and profiling of potential candidates, including conducting any market research that may be warranted.

PRESENTATION TO PARTNERS Depending on your firm’s culture, we will prepare materials to present to you, and others as appropriate. This presentation will include our assessment of the marketplace(s) being considered, profiles of potential candidates, and our recommendations regarding how to proceed and priorities.

SEARCH AND INITIAL CONTACTS Once an appropriate list of firms has been identified, and with your approval, a call is made to the Managing Partner of each high-priority candidate. In most cases, the initial contact is in the form of an exploratory call from us to determine whether the firm may be interested in exploring a potential combination. Based on the reaction and level of interest expressed in

these initial telephone calls, the prospective merger candidate would be informed of your identity. The purpose of this step is to pre-qualify any potential candidates we intend to present to you.

INITIAL DISCUSSIONS AND CANDIDATE ASSESSMENT Once a prospective candidate has been identified, we will assist you in preparing for and conducting an initial exploratory meeting with the candidate firm. Normally, we would attend this meeting to facilitate the exchange of sufficient information to base initial determinations of whether there is reason to proceed. We can work with you to make sure that we will have sufficient information to make informed judgments about the prospective candidate firm. If these initial meetings suggest proceeding, the process then moves into a more substantive and qualitative examination of the firm, its people and practices, business philosophies, client base, economics, and other critical factors.

GO / NO-GO DECISION There are times we suggest that we represent both parties in these discussions. This is not a decision that needs to be made immediately. We will present to you the pros and cons of how we might proceed.

THE PROCESS To start this process, We will first typically meet onsite with representatives from the candidate firm, including practice group leaders, to understand the firm’s business and practice profiles, clients, and opportunities. We would then convene an all day meeting with the leadership from the two firms to initiate discussion of threshold issues to determine whether there are sufficient reasons to proceed. During this portion of the examination, the issues involved likely include:

• Strategic logic for the combination, i.e., practice compatibility and business opportunities • Client base conflicts and integration • Cultural style and personal compatibility of lawyers • Goals and strategic direction • Management issues, including structure and authority • Financial performance and expectations • Capital (buy-in) requirements • Method of combination and potential tax consequences • Compensation and draw policies • Associate and staff compensation integration • Technology • Administrative structure, staffing, and reporting • Debt, lease commitments, and occupancy issues COMPLETION OF ANALYSIS, BUILDING OF THE BUSINESS CASE AND DEVELOPMENT OF PROPOSAL TO PARTNERSHIPS This effort involves several components. First, we need to build the market-based strategic rationale for the merger. Our goal will be to enable the firms’ respective leadership teams to answer the following questions: • What strategic ends do we seek and how will the combination help? • What specific revenue enhancement opportunities will this combination bring? • What productivity enhancements or cost efficiencies does the combination provide?

• In what concrete ways will clients benefit from this combination in terms of quality, expertise, service, and value?

• How will this combination better position the firm in terms of practice depth, breadth of services offered or geographic reach?

• In what specific ways will this combination result in enhanced competitive advantage? Second, we will assist teams of representatives from both firms complete an assessment of the operational issues relating to combining the two firms. This includes a close look at the fit in areas such as firm culture, financial performance, partnership criteria and standards, productivity and work ethic, compensation levels and process, governance and decision-making processes, computer and communications systems, and a host of other related operational and administrative issues. This process will result in recommendations regarding structure and policies to be adopted by the combined entity.

Third, the results of the above two steps will be compiled into a written proposal to the partnership. Representatives from the two firms can complete much of the drafting with our assistance.

FIRM UPDATES AND ENDORSEMENTS It is important throughout the process that the candidate search and review process not get too far ahead of the partnership, which needs periodic status reports regarding the search, evaluation, and negotiation progress. To this end, we will work with your leadership team to prepare written, oral, and electronic updates, as appropriate. Also, at some point during the process, the partnership will be informed of the specifics of a proposed transaction and a formal polling of their opinion will be taken by whatever method is considered most appropriate. This can result in an “endorsement in principle” of the transaction – with the final official vote taken only after all negotiations on all issues have been completed.

NEGOTIATION AND CLOSING PROCESS We can play a direct role throughout the negotiation process. In these discussions, we can represent either one party or the entire transaction (e.g. both parties). Our goal is to fashion a law firm combination that will be a “win-win” for both parties and to structure a transaction that will be ensured of succeeding well into the future. When all negotiations have been completed and all outstanding issues have been resolved to the satisfaction of both parties, both firms take an official vote and the transaction is officially approved.

COMMUNICATIONS STRATEGY As soon as a potential combination or acquisition candidate has been identified, we can advise the potential transaction parties on the best approach to handling internal communications, to partners, associates, and staff - and externally, to clients and to the legal and business press.

INTEGRATION PLAN We work with the leaders of the combined new firm to outline the key tasks that must be completed during the first twelve to twenty-four months to help convert expected practice and market synergies into reality.

For More Information Contact: Michael Blanchard GLC |Law Firm Consulting Group

(585) 258-3910 (Office) (585) 662-8720 (Direct)

GLC |Law Firm Consulting Group

Scalable Law Firm Management Solutions

SERVICES OVERVIEW

We provide scalable, customized Finance, Accounting and Operational solutions and consulting services from strategy and leadership to project execution. We support the offices of the law firm’s C-Suite using a unique blend of engagement models:

•Consulting/Project Based – support Managing Partners, CFOs, COOs, and Executive Directors to accomplish critical projects

•Fractional – CFOs, COOs, Executive Directors, regional & office administrators

•Outsourcing / Co-Sourcing – regional & office administrators, IT Help Desk support

•Interim Management – CFOs, COOs, Executive Directors, regional & office administrators

•Staff Augmentation - to support the CFO, COO or Executive Director organizations

•Executive Search Services

We can assist any law firm including those facing challenges, or in transition, whether it’s rapid growth, mergers, acquisitions or exit, integration, turnaround, building infrastructure, systems optimization, improving performance, bridging a gap in leadership or skill set, or simply augmenting staff to maintain productivity.

For More Information Contact: Michael Blanchard GLC |Law Firm Consulting Group

(585) 258-3910 (Office) (585) 662-8720 (Direct)