SWOT It Out

Take a glance at any general business publication these days and chances are you'll come across the term 'SWOT Analysis,'referring
to your Strengths, Weaknesses, Opportunities and Threats. Although SWOT is used ubiquitously in the business world, it's not often heard in law firms. Despite the fact that many accomplished attorneys react with blank stares when asked about it, SWOT can be one of the most powerful ways for lawyers and their marketing staff to create an effective strategic business development plan.
What is SWOT?
A SWOT analysis is a very no-nonsense way to determine which paths have the potential to yield the greatest results. Lawyers can choose many paths, with some being more profitable and satisfying than others. The SWOT analysis enables you to narrow your options and increase the possibility that you'll settle on the most effective strategies for you and your firm.
Accurate Data is Crucial
The first step in devising a SWOT plan is to gather appropriate information to use as the foundation of your strategy. Since your plan will not succeed without this data being absolutely accurate, it's wise to take your time during this stage. In fact, data-gathering and analysis process usually does take more time and effort than creating the plan itself. Be sure to tell the truth, and make it the whole truth!
A successful SWOT analysis presumes that you've gathered meaningful information, such as billing figures or competitive information. Certainly, this pile of information can be daunting but now that you've accumulated it, what does it mean to you and your firm?
It's critical to be frank and direct during this process and suspend judgment or you'll lose a lot of the benefit. Remember that outlining weaknesses, whether yours or the firm's, carries no moral baggage. Nothing is 'bad' and no one did anything wrong. Stand back from it and let it be an objective information-gathering process.
Counting Your Strengths
Examining your strengths requires you to identify and focus on your competitive advantages at various levels, from the entire firm to the individual attorneys. For example, what are the firm's strengths at this exact point in time? Is it certain practice areas? Perhaps your firm's strength is the reputation of a key rainmaker, which can also be a weakness. Some firms have created their own 'strength' in providing valuable material on an on-going basis such as regular informative e-mails and newsletters.
At an individual level, what are your strengths as an attorney? Do you enjoy networking, getting involved in organizations and taking leadership positions? Are you more contemplative and interested in writing incisive articles? Be brutally honest with yourself and you'll make the business development process more comfortable for you.
You also need to take into account your own goals, such as if you desire more family or free time despite doing so possibly slows you down on the career ladder. Is your goal to open your own firm? Knowing who you are plays an important element in your analysis.
It's important to play to your strengths. This does not mean that you don't want to shore up your weaknesses, but you'll get a higher return investing in your personal strengths than by strengthening your weaknesses. This means that if you do not like public speaking, then look for other ways to promote yourself. Perhaps you might try it a few times, decide it's not so bad and work on improving your speaking skills. However, if you are totally uncomfortable and have no desire to improve, focus on other areas such as writing articles.
Don't Hide From Weakness
The next phase calls for complete honesty ' what are your firm's vulnerabilities? Perhaps it is a key rainmaker who has made the firm so successful but has also made it a one-legged stool. What happens if he or she can no longer produce? What happens if he or she leaves the firm?
One of the most common weaknesses in law firms is a lack of communication between key parties so that one hand does not know what the other is doing. This translates into missed opportunities. Knowing your weaknesses can give you clarity in direction. You might decide to abandon an area altogether, or take steps to fill in the gaps.
On a personal level, identifying your weaknesses can mean finding others who can fill in the gaps while you invest your energy where you may receive a much higher return. Perhaps you do not like writing, but want to be published. An easy fix is to hire a ghostwriter. Disorganized? Let someone organize for you while you are producing.
Opportunities Are Unlimited
A world of opportunities lies just over the horizon if you're looking in the right place. If you're going to survive, you need to have your eyes trained on that distant view. The old clich' about the early bird is true ' the first in the marketplace definitely has the advantage. What macro changes can your firm make to put it in a better position? Which partners or practice groups might be open to joining with you? Some firms saw a downturn in the economy as an opportunity and heavily promoted their bankruptcy and restructuring practices.
Opportunities are worthless unless you capitalize on them. Get into action and brainstorm about how you and your firm can position yourselves to take advantage of them. If it's not you, it will be someone else.
There are a myriad of ways to create your own opportunities if you're willing to do so. You can create speaking opportunities for yourself, instead of hoping or waiting to be asked. Develop your own seminars or white papers and take hold of a market before it's penetrated. Or, look at current markets and divide it into thin slices. There is a new niche someone hasn't taken yet and it may be a market of a worthwhile size.
Look Threats in the Eye
Every situation has its own threats which just won't go away. They feed on your fear, looming in the background and growing larger when ignored. The threats are there, some stronger than others. There is no reason to be blind-sided. The long-term success of your practice depends on identifying them and prioritizing those that need to be dealt with. Some are closer than others and some will have more impact than others.
In some cases, a threat might be one that impacts your personal practice, such as the firm deciding it will no longer invest in your particular practice area. Your challenge is to create a way of differentiating yourself so that you stand out from the crowd. An honest SWOT analysis can help you.
Determining your strengths, weaknesses opportunities and threats, whether on an individual or firm-wide basis, gives you the perfect framework for developing your business development strategy. It helps you rule out areas that do not provide sufficient return on investment while clarifying areas which should be emphasized. Once you focus on your strengths, identify your weaknesses, see the opportunities, and pinpoint the threats and obstacles facing you and your firm, you can create an effective business development program.