STaRS Analysis for Law Firms

A STARs analysis can help law firms to identify their strengths and weaknesses and develop strategies to improve their performance. The analysis looks at the normal workflow of a law firm’s fee center, help determine the efficiency of the firm, and how to improve overall performance.

Determine how well the outcomes worked and if you met your goals.

STARS Analysis at a Law Firm

STARS analysis allows you to ask behavioral interview questions and highlights specific examples of skills and experience of all areas within a law firm. The first step is to decide how to break down the fee centers, most firms break down by attorney, area of practice, and office location.

A STARs analysis can help law firms to identify their strengths and weaknesses and develop strategies to improve their performance. The analysis looks at the normal workflow of a law firm’s fee center, help determine the efficiency of the firm, and how to improve overall performance.

For example, a law firm that has a strong structure and talented lawyers but weak relationships with clients may need to focus on developing its client relationship management system. A law firm that has a strong structure and good relationships with clients but weak systems may need to focus on improving its operations or policies, processes, or workflow.
A STARS analysis is also used to compare law firms against each other. This can be helpful for law firms that are considering mergers or acquisitions, or for law firms that are trying to grow in a competitive market.

Let’s dive a little deeper into what STARS stands for and how it would look in your law firm.

STARS Acrynoym

STARS stands for Startup, Turnaround, Accelerated Growth, Realignment, and Sustaining Success. This model is an effective framework to analyze law firms.

Startup

Define the situation or task that you are faced with.

Turnaround

Determine what your goal or objective is.

Accelerated Growth

Determine measures to implement and be prepared for future growth.

Realignment

Determine what steps are needed to address  problem areas.

Sustaining Success

Determine how well the outcomes worked and if you met your goals.

STARS Analysis at a Law Firm

STARS analysis allows you to ask behavioral interview questions and highlights specific examples of skills and experience of all areas within a law firm. The first step is to decide how to break down the fee centers, most firms break down by attorney, area of practice, and office location.
We recommend completing the STARS analysis on a quarterly basis by practice area, location, and by attorney. There are specific forms and interviews that help create a picture of the strengths and weaknesses of the fee centers.

A law firm STARS analysis model:

Startup

Introducing a new area of practice that includes hiring new attorneys at a new location. A firm’s organizational structure, including its size, practice areas, and location are part of the analysis.

Turnaround

Even one year of a new area of practice starting up in an existing location is still losing money on the fee center. The firm’s lawyers and other employees, including their experience, skills, and reputation are part of the analysis in this phase.

Accelerated Growth

Accelerated growth without a plan can lead to chaos with personnel, ineffective client management, and a fractured infrastructure. Defining leadership and planning for the future creates the ability to control how you scale your firm and allows you to only take in ideal clients.

Realignment

The staff are involved in discussions about the problems and identify the areas where the firm is falling behind. Develop a plan to address changing procedures, marketing strategies, re-prioritizing tasks, and reviewing resources. The firm’s relationships with clients, other law firms, and other key stakeholders are key considerations in this phase.

Sustaining Success

The firm’s business systems, including its practice management workflow, IT systems, marketing and client relationship management systems, and financial systems are continually measured to ensure they are maintaining sustainable outcomes.

A STARS analysis illustrates how your law firm is functioning and brings to light the necessary changes. These improvements will allow you to carefully plan your firms’s future, prepare you for growth, and create efficient fee centers. When you are finished with our processes you will be ready to bring your law firm to the next level of sustained success.

Reach out to one of our expert advisors to conduct a STARS analysis on your law firm.