A Recovering Lawyer's Take on the Business of Law

Part 1: The Power of Core and Non-Core Functions

‍Over the past decade, I’ve transitioned from practicing law to advising businesses on growth and operational strategies. My work with small and medium-sized businesses has given me a deeper understanding of how effective business structures and strategies can drive success—especially in the legal industry.This series is designed to share key insights from my experience that can help law firm owners streamline operations, focus on their strengths, and create thriving practices.

I haven’t practiced at a law firm in over 10 years. That’s wild for me to think about, because that was my career goal since college. And then it became partnership status at a law firm. I naively thought that my brilliant insights, typo-free briefs, and strong advocacy would unlock the keys to an Atticus Finch-like career, where I rode a rising tide of success that solved all the firm’s problems.

I jokingly say, “I’m a recovering lawyer,” because I still lean on the analytical skills and general knowledge I acquired while practicing. But in the past decade, I’ve learned a lot that would have been helpful to me 10 years ago. I’ve worked in the insurance, employee benefits, HR, and Professional Employment Organization (PEO) industries, in managerial, executive, and founder roles. In many of those roles, my clients were small to medium-sized businesses. I helped them manage risk, align their workforce, clarify their value proposition, and grow. As I traveled that path, I learned a few key insights that I believe apply to any business—especially a law firm.

‍Core vs. Non-Core Functions

‍Every business has core functions: they’re why the business exists. These should be fully owned and continuously improved. For a law firm, that’s delivering legal services and representing clients.Every business also has non-core functions: essential support operations that enable the core work to happen—like accounting, payroll, employee benefits, and IT. These are often ideal opportunities for outsourcing. According to Forbes, about 66% of U.S. businesses outsource non-core functions—and for good reason:

• Focus: Attention, effort, and capacity are finite resources. The time spent focusing on non-core functions could be spent enhancing core functions – things that only the business itself can perform.
• Expertise: Non-core functions take time to learn and maintain a current knowledge base. That’s especially true in rapidly evolving areas like employment law/HR.Outsourcing non-core functions allows you to tap into experts that specialize in your specific need.
• Cost: Hiring someone internally can be expensive, especially when the true cost of an employee often ranges from 1.25 to 1.4 times their annual salary when accounting for taxes and benefits. Outsourcing can be more cost-effective, particularly for smaller firms needing a fraction of a full-time equivalent.
• Efficiency and Risk Mitigation: When hiring someone internally, you risk underutilization or creating a single point of failure. Outsourcing alleviates this by providing access to a team of experts.

I hope this first part of the series has provided useful insights into core and non-core functions for your law firm. If you’re looking for help growing your law firm, I’d love to listen to your challenges and help! Please feel free to email me at mwilbers@legalbackoffice.com or set up a time to meet with me at www.legalbackoffice.com/contact.

‍