Now, let`s see how to perform a SWOT analysis for law firms: 3. Get feedback. Unlike Fight Club, the first rule of SWOT analysis is to talk about it. A lot. You want to get as much feedback as possible from as many sources as makes sense for your situation. In other words, you don`t want the SWOT to be just you and your thoughts. Involve the entire legal department in brainstorming suggestions and ideas for each box. You can do this in a group session or, if you think you`re getting more honest feedback, appoint someone to collect everyone`s suggestions with a guarantee of anonymity. Then take the store outside the department and get their feedback. To the extent that senior management will be involved, it is gold.
But it`s just as good to get feedback from other executives and regular customers of the department. Use a simple (free) survey tool to gather feedback (you can also use it with the legal team). [4] External advice you use regularly can also be helpful (especially if you insist that you want them to be honest, especially when it comes to weaknesses). The key here is to get fresh, honest feedback – not just things you want to hear or that validate your own thinking. That is, your thoughts are important – very important. But do your best to be objective and not be too positive about strengths or too negative about weaknesses. I used to keep a list of items that I put in the different boxes, and when it came time to create or update our SWOT, I already had a number of ideas and thoughts ready. Not only does the chart show the four basic SWOT attributes, but you can also see how the elements on the left are positive while those in the right column are negative, or as I often call it: value creation vs value destruction. As always, legal services should try to maximize the former and minimize the latter.
In a SWOT analysis, you identify your strengths, weaknesses, opportunities and threats. This step requires objectivity, having a clear picture of what you are good at, and knowing your limits. Several SWOT analyses for the legal sector have already been carried out and published online on various websites. Therefore, it would be ideal for you to research and review them to complement your SWOT analysis. If you use third-party legal services to improve your business operations and reduce your workload, the service provider is also seen as the strength of your business. When looking at your company`s strengths, look at the strengths that exist internally in your practice. These are the assets that will last no matter how the external market affects your business. For example, if you have two lawyers with 20 years of practical experience, this high level of legal experience is a strength. Even if no other client walks through the door, that talent will always be there. Other strengths may include your company`s reputation for top-notch customer service or a proven track record of high results. To perform a SWOT analysis for lawyers, you must first draw a SWOT analysis table, which usually consists of four fields. It`s simple.
You can simply take a pen and paper and divide the paper into four boxes, with each box given a title based on the four aspects of the analysis. Artificial intelligence (AI) has helped the legal industry manage certain tasks, such as document review, which is actually called technology-assisted review (ART), legal research, legal documents, contract analysis, document proofreading, and document organization. Lawyers are excellent in many areas, but unfortunately, business is not always one of them. In law school, you will learn how to analyze cases and provide effective legal arguments. However, most law schools can`t teach you how to run a successful business. I am not talking about a law firm. I`m talking about the basics of a successful business. So I set out to find techniques that lawyers in the business world could borrow to make them more efficient. I found an article published by the ABA on SWOT analysis and how this business analysis tool can help small law firms achieve their business goals and leave their single on hold for years to come. New laws can also become a threat to your law firm. Here is an example to explain the same thing. Let`s say your law firm provides specialized legal advice to defend criminals and all of a sudden there are laws decriminalizing the activities for which you represent your client.
Here you could lose customers due to changes in the law (external threat). 4. Strengths. The fun (and easy) part of a SWOT is listing all the things that the legal department does particularly well. [5] These can be fast-moving contracts, excellent cooperation with the sales team, or obtaining patents. It can even be something like the high level of qualification or longevity of the legal team. Here, input from outside the department is also crucial, i.e. what do others see if not the strengths of the legal service? Also consider things like writing skills, using technology, staying within budget, creating self-help resources, etc. The key is that a SWOT exercise really requires you to think about all the different attributes of the legal department (good or bad). In any company, the business analytics department usually performs a SWOT analysis. However, if you don`t have a BA team or business analyst, you should do it yourself as an owner or delegate this responsibility to one of your employees with excellent analytical skills. Like any other business, law firms can reap many benefits from SWOT analysis, as a law firm`s growth is highly dependent on its productivity, profitability, and reputation in the legal industry.
As you may have noticed, many of my articles over the past few months have focused on how the legal department can demonstrate its value to the business. This is probably the most common question I get from in-house lawyers and other blog readers. The willingness and ability to create a proper SWOT analysis is another tool for your belt – a large, valuable steaming hot glue gun. However, the strength of a SWOT lies in its simplicity, meaning it`s a great view within 30,000 feet of the legal department or a specific legal issue (e.g., preparing for data breaches). This is not the plan, but it will help you create the plan. He is also self-employed and works for any legal department anywhere in the world. Most importantly, don`t forget to look at it as a whole – the four boxes are interconnected and intertwined. If you want to dig deeper into SWOT analysis, check out these articles: How to Perform SWOT Analysis for Your Small Business, An Essential Guide to SWOT Analysis, and Harvard Business Review – SWOT Analysis. As businesses reopen and the new reality of operations post-COVID-19 becomes clear, it`s the perfect time to try your luck at a SWOT. It`s also the perfect job for your legal operations team. In the meantime, stay safe, wash your hands and wear a mask for the sake of others.
Better days are coming! [8] For more information on PEST analysis, see pestleanalysis.com/pest-analysis/. Not only that, AI-powered software can also help you ensure that the data you use for SWOT analysis is accurate and authentic. SWOT analysis for law firms is a very important analytical tool that helps law firms achieve their goals and succeed. This is simply because it is necessary to better understand your position in a competitive landscape (such as the legal sector). This advantageous facet is provided by the SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. An in-depth SWOT analysis examines internal and extreme factors that can affect the company`s ability to attract and retain customers and the potential for incremental growth. SWOT analysis could do wonders for your business. It helps you understand the essential steps you should take for the growth of your business in the future. However, SWOT-related factors would likely lurk in a part of your mind; Therefore, creating a comprehensive report in an organized manner helps you and your colleagues understand what additional actions are needed. You`d also feel less overwhelmed and have more control over your legal business. 9.
What do you do with it? There are many things you can do with SWOT. This may be the first step in a broader effort to create a multi-year strategic plan for the legal department. It can serve as the basis for an extended team meeting or be part of an external legal department. It can even be a “marketing” tool[10] that can be shared with senior management and company executives to show how the legal department responds to feedback and, more importantly, how part of the company acts, using the same types of tools and analytics to continuously improve. In other words, it`s a great PR department for the legal department! You can also use it for individual bar exams, goal setting (for the department as a whole or at an individual level), succession planning, creating a departmental technology roadmap, reviewing the department`s different geographic locations, and literally dozens of other important and practical applications.