Navigating Legal Waters: How Small Law Firms Can Use the Strategy Curve to Create Blue Oceans

In today’s competitive legal landscape, small law firms often swim in a sea of red, battling for clients against larger, more established practices. But what if there was a way to chart a course to calmer, more profitable waters? Enter the Strategy Curve, a powerful tool adapted from the Blue Ocean Strategy that can help small law firms differentiate themselves and create uncontested market space.

What is the Strategy Curve?

The Strategy Curve visually represents how your firm performs across various factors clients consider when choosing legal services. It combines the Blue Ocean Strategy Map elements with the Buyer Experience Cycle (BEC) to comprehensively view your firm’s competitive position.

Using the Strategy Curve, small law firms can identify opportunities to stand out in crowded markets, eliminate unnecessary competition, and focus on delivering unique value to their clients.

Creating Your Strategy Curve

To create your Strategy Curve, follow these steps:

  1. Identify factors: Using the BEC categories as inspiration, brainstorm factors that influence a client’s choice of law firm.
  2. Analyze competitors: Identify your top 5 competitors in the local market.
  3. Rate performance: Rate your firm’s and each competitor’s performance on each factor from 0 to 5.
  4. Plot the curve: Create a chart showing how your firm and competitors rate across all factors.
  5. Apply ERRC: Use the Eliminate-Reduce-Raise-Create framework to determine which factors to modify, delete, or add.
  6. Reassess: Rate your firm on the new factors you’ve created.
  7. Determine capabilities: Identify the skills and resources needed to implement your new strategy.

The Buyer Experience Cycle for Legal Services

When creating your Strategy Curve, consider these BEC categories:

  • Purchase: How easily can potential clients find and engage your services? Is your online presence secure and user-friendly?
  • Delivery: How quickly can you begin working on a client’s case? Is your onboarding process smooth and efficient?
  • Use: Do you communicate clearly and provide updates throughout the legal process? Are your services accessible and easy to understand for clients?
  • Supplements: Do you offer additional services or resources that complement your core legal offerings?
  • Maintenance: How do you manage ongoing client relationships and ensure continued satisfaction?
  • Disposal: How do you handle case closures and ensure client confidentiality in the long term?

Applying the ERRC Framework

To create your blue ocean, consider how you can:

  • Eliminate factors other firms take for granted but add little value to clients.
  • Reduce aspects of your service that may be overdesigned or unnecessary.
  • Raise elements that truly matter to your target clients above industry standards.
  • Create new offers or approaches that the legal industry has never seen before.

Case Study: Johnson & Partners, a Small Family Law Practice

To illustrate the power of the Strategy Curve, let’s follow the journey of Johnson & Partners, a small family law practice in Nashville, Tennessee.

Identifying Factors

Sarah Johnson, the firm’s founder, brainstormed factors affecting client choice in family law:

  • Speed of response
  • Empathy in client interactions
  • Use of technology
  • Flexible payment options
  • Breadth of services
  • Years of experience
  • Courtroom track record
  • Mediation success rate
  • Child-friendly office environment
  • Evening/weekend availability

Analyzing Competitors and Plotting the Curve

Sarah identified her top 5 competitors in Nashville: Smith Legal Group, Anderson Family Law, Metro Legal Solutions, Heritage Law Firm, and BrightPath Legal. She rated her firm and each competitor on these factors using a scale from 0 (no performance) to 5 (exceptional performance). Here’s what she found:

FactorJohnson & PartnersSmith Legal GroupAnderson Family LawMetro Legal SolutionsHeritage Law FirmBrightPath Legal
Speed of Response342534
Empathy in Client Interactions534343
Use of Technology243524
Flexible Payment Options523232
Breadth of Services254545
Years of Experience354454
Courtroom Track Record354454
Mediation Success Rate433343
Child-Friendly Office Environment5N/AN/AN/AN/AN/A
Evening/Weekend Availability4N/AN/AN/AN/AN/A

Explanation of the Results

The analysis revealed key insights into Johnson & Partners’ position in the market:

  1. Strengths: Johnson & Partners excels in empathy in client interactions (rated 5) and flexible payment options (rated 5). They also have unique offerings like a child-friendly office environment (rated 5) and evening/weekend availability (rated 4).
  2. Weaknesses: The firm lags in technology use (rated 2) and breadth of services (rated 2), where some competitors are stronger.
  3. Opportunities: Johnson & Partners has a higher mediation success rate (rated 4) than most competitors. This could be an area to develop further.
  4. Competitive landscape: While some competitors like Metro Legal Solutions lead in technology use and Smith Legal Group has a strong courtroom track record; Johnson & Partners has carved out a unique niche with its focus on empathy and child-friendly services.

Step-by-Step Application of ERRC Framework

Sarah applied the Eliminate-Reduce-Raise-Create framework based on her analysis:

  • Eliminate: Eliminate traditional office hours by moving to more flexible scheduling options such as evening/weekend availability.
  • Reduce: Focus on courtroom litigation while shifting towards mediation services (where Johnson & Partners already had strong success rates).
  • Raise: Use technology for client communication and case management by investing in secure apps and tools.
  • Create Child-centric services, such as a “divorce explanation” program for children and partnerships with child therapists.

Implementation: Reassessing and Determining Capabilities

After implementing these changes inspired by her Strategy Curve analysis:

  1. Sarah invested in training her team in child psychology to improve their child-friendly services.
  2. She partnered with local child therapists to offer holistic support for families going through divorce.
  3. The firm upgraded its technology infrastructure by introducing secure client communication apps and virtual mediation tools.

Results

Six months after implementing these changes:

  • Client inquiries increased by 30% due to positive word-of-mouth about their unique child-centric approach.
  • Client satisfaction scores improved by 25%, reflecting better communication and empathy during cases.
  • Mediation success rates rose by 40%, helping families avoid costly litigation.
  • The firm experienced a 20% growth in new clients as it carved out its blue ocean in family law.

By focusing on child-centric services, technology-enabled communication, and mediation-first strategies, Johnson & Partners differentiated itself from competitors still competing on traditional factors like courtroom track record or breadth of services.

Applying the Strategy Curve to Your Firm

  • Use the ERRC Framework: Based on your analysis, identify factors to eliminate, reduce, raise, or create. This will help you focus on what truly adds value to your clients.
  • Reassess Your Firm: After applying ERRC, rate your firm on the new factors you’ve created or modified. This ensures you’re positioned to deliver on your new strategy.
  • Determine Capabilities: Identify the skills and resources needed to implement your new strategy. This might involve training staff, investing in technology, or forming strategic partnerships.
  • Monitor Progress: Review your Strategy Curve regularly to ensure it remains aligned with changing client needs and market dynamics. Adjust your strategy as necessary to maintain your competitive edge.

Using the Strategy Curve as a guide, you can systematically identify opportunities for differentiation and innovation, align your services more closely with client values, and make strategic decisions about resource allocation. This approach allows you to create your blue ocean—where competition becomes irrelevant because you’re offering something no one else does.

As you navigate these changes, remember that success doesn’t happen overnight. With persistence and creativity, your small law firm can chart its course toward unique strength and profitability in today’s legal market.