Kyle Wiggs / Writing / Running the firm

Running the firm

Being busy is not the same as being full

Firms hire because the founder feels at capacity. Frequently the capacity is there and it is pointed at the wrong work.

Measure before concluding

Two weeks of where the hours actually go, in rough categories. Client-facing, operational, administrative, business development, and firm-building.

Almost nobody has done this and almost everybody is surprised.

The usual finding

A minority of the week is client-facing. Most is operational and administrative work that accumulated one reasonable decision at a time.

That is not a capacity problem. It is an allocation problem.

Why it feels like capacity

Because the hours are genuinely full. The feeling is accurate; the diagnosis is not.

The question is not whether you are busy. It is whether you are busy with the work only you can do.

The three responses

Remove the work, by eliminating it or outsourcing it. Delegate it, which requires someone to delegate to. Or accept it and hire for growth.

Most firms jump to the third, which is the most expensive and the slowest to pay back.

The test question

For each recurring task: would a client pay for this specifically, and does it require your judgement?

If neither, it should not be on your desk regardless of how efficiently you do it.

The real constraint is usually attention

Not hours. The capacity that matters is the ability to think about a client situation properly, and that is consumed by fragmentation more than by volume.

A day with six interruptions has less capacity than a day with the same hours and none.

When it genuinely is capacity

When the client-facing time is already the majority and clients are being under-served. Then hire, and hire properly.