Just as law firms are now adjusting how they position themselves in the legal market, they also must ensure they are correctly managing receivables in today’s ever-changing economic environment. Firms may need to embrace new strategies to ensure they get paid for their services. Therefore, start asking the questions that will help you determine if your firm is making the adjustments necessary to deal with the ever-changing economy:
What do we need to change, if anything, to ensure we are making progress? Most importantly:
- Determine if you have the right leadership and management team in place to move forward
- Understand how attorneys are managing their A/R remotely and if they are spending enough time on their collection efforts
- Evaluate your administrative staff, specifically whether they are doing the right work the right way
- Measure the results you are achieving as compared to the A/R management efforts you are performing
What role should leadership and management play? If you want to effectively manage receivables, you need to have the ability to tell the attorneys to address their collections, but also understand how to look to other resources to help them achieve results. Take stock of what you are doing — and why — and evaluate what is and what is not working. An important aspect of this is assessing whether you have the right people, with the right skills, in place to do the job. Also, understand that everyone should be held accountable to ensure progress is being made.