The COVID-19 pandemic, in the blink of an eye, has created many challenges. Challenges from economic uncertainty to social unrest have left firms to scrap their long-term plans in favor of a short-term approach to combat the rapidly changing environment. This brief article provides steps law firms can consider for planning in a time of uncertainty.

Taking action

Here are some steps that can help:

  • Think Tactically
    During this tumultuous period, your long-term strategies might go out the window. You will need to adopt tactics on the fly to deal with the shifting economy's effects on your clients and your own business. For example, you may be forced to decentralize planning, giving greater power farther down the ladder, particularly if some employees are let go. This way, practice groups, client teams and client relationship managers can respond promptly to client needs and unexpected opportunities for generating revenue.
  • Stay on Top of the Numbers
    Arm yourself with up-to-date information on the firm's financial status, as well as the state of the legal market. This includes the firm's current cash position and budget performance year-to-date. You also need a strong grasp of the cash flow situation. Track the market to identify practice areas and services in demand and those in decline, whether just temporarily or likely for the long term. This information, along with your financial data, will empower you to make informed decisions.
  • Form a COVID-19 Crisis Management Team
    If you have not done so already, assign a dedicated crisis task force to monitor financials and other internal and external developments. The team should regularly meet to evaluate risks and opportunities. It also should monitor relevant government and health care guidance to ensure compliance. And it can seek out information from other geographic areas and industries to identify best practices for coping with the effects of this year's economic uncertainty on businesses.
  • Update Your Business Continuity Plan
    Another team can tackle your business continuity plan. It should review how your firm handled stay-at-home orders, school closures and other effects of the pandemic — in case they become necessary again. Gather input from different firm levels and from clients about what worked and what did not. As the team identifies gaps, it can formulate solutions that will allow you to improve future responses.

Shorten Your Time Frames

Planning typically is done in increments of one to five years. But the current environment calls for one- to three-month increments, with regular reviews and adjustments within those increments.

Think about life after the pandemic

Understand that this is not forever and that while short-term planning is being emphasized now, long-term planning is still needed. Think about the lessons that have been learned and what your business can look like in the future. Evaluate if working from home and increased flexibility will change your business model. If you have grown practice areas that were only temporarily during the pandemic, think about how you can seamlessly transition to other types of services.

Originally published by Ostrow, July 2020

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.