The Key to Creating Long-Term Growth for Your Law Firm

Your law firm is a business. Like all businesses, growth and profitability are paramount. You want to see your client base grow and your profits increase, year over year. Even more importantly, you don’t want to go backwards just because you are so busy working in the business that you don’t notice what is happening. You may have other goals – opening another office or being recognized as an expert in your practice areas. Whatever your measure of success is, you want it to be sustainable.

The only true way to grow a law firm is through the routine of creating more efficient ways of doing things. For many businesses, including law firms, the clearest path to innovation is through the regular implementation of new technology in a regular cycle.

This requires a culture of innovation so that your whole firm is accustomed to continuous improvement. You can visually plot the impact of innovation on growth and the inevitable progress through to decline using what is called the Sigmoid Curve. The Sigmoid Curve is a representation of time and activity – in this case, growth. It can be widely applied to the rise and fall of products and businesses, including law firms.

The 5 Phases of the Sigmoid Curve

Phase 1: Change

This is the phase where change is introduced. In an established law firm, this phase might occur when you begin investigating potential areas of improvement in your firm. You may consider how to re-organize your processes using legal technology. 

Phase 2: Growth

Your law firm experiences sharp growth. The renewed processes that you have established result in a dramatic increase in efficiency, productivity, and profitability. You exceed your client’s expectations, and you begin to see an expanding client base.

Phase 3: Success

Your firm is more profitable than ever and is at the peak of success. For many businesses, the elation that comes with success makes it difficult to appreciate that without further innovation, this growth will eventually decline. 

Phase 4: Stagnation

Your law firm hits a plateau. Growth and revenue stagnate. You are still benefiting from the last technology change, but previous efficiencies gained are not having the same impact they once did, and areas that need improvement for you to keep competitive are now becoming an issue.

Phase 5: Decline

Revenue begins to decline. At this point, it is increasingly difficult to initiate a change event. The decline of growth is not inevitable. The issue lies in businesses reaching a peak and rather than finding ways to improve, they remain stagnant. They fail to consider that success doesn’t last forever, so they are unable to objectively identify areas of potential improvement in their business. 

How to Avoid Stagnation and Decline

You must start a new “curve” right before your law firm reaches the full potential of Phase 3: Success. That way, you will be starting something new when you still have the resources, and the spirit, to take in new initiatives and innovation. In contrast, most people think of doing something new only when they have reached the bottom of what they are presently involved in, which is expensive and difficult to manage.

To grow a law firm, you must consider how legal practice management software can improve your practice. Seeking a legal software provider for your firm that is committed to innovation will allow your firm to enjoy natural and repeated cycles of long-term growth through new efficiencies.

Book a meeting with a legal specialist today and see how LEAP's commitment to legal technology innovation will help grow your law firm.