The end of marketing departments?
Are Marketing Departments and CMO's on the way out as a way of doing business?
Gerry Riskin talks about a recent law firm management consulting conference in Sydney, Australia.
A consultant from McKinsey related that this major consulting organization does not have a marketing department. The reason, according to the presenter from McKinsey, is that each professional operates on what they call the "2/4/8" principle. They are working on 2 assignments simultaneously; they are in the process of making 4 proposals for new work; and they have 8 other prospects in sight.
This may coincide with Coca-Cola's announcement that it is eliminating the position of CMO! How can arguably the best marketing company in the world eliminate the marketing position? Can this be true? Yes, according to the CMO himself.
These two items, juxtapositioned as they are suggest that the marketing function is being pushed down, organizationally, to the level of the folks in the field, the professionals responsible for interacting with the clients/prospects, with some organizational assistance. But, the real push will be the creation of one-on-one personal relationships in order to increase business.
What a novel thought: People buy from people with whom they like to do business! A relationship approach!
Use of technology must be tempered
MP3 users hearing damage warning
According to the BBC World Edition, "(t)he iPod is the world's most popular digital music player. The surge in sales of iPods and other portable music players in recent years could mean many more people will develop hearing loss, experts fear....
Continue Reading...Is T.V. advertising a cause for lawyers' poor image?
The managing partner of a large law firm contends that P.I. lawyers' advertisements on television are the root cause for the poor image lawyers currently experience.
I suggest that the commercials are of no consequence and that his assertion makes him (this managing partner) look foolish.
I know. You now want proof of my assertion. Well, here it is, in part.
Continue Reading...Mergers & Technology: The importance of one to the other
I wrote an article some time ago which references some of the technology aspects when law firms enter into merger discussions.
Listening to some IT people who've experienced the "new" life of merged law firms, I began to appreciate the real horrors of merged life. In some instances, in fact, the different technology platforms was too great an obstacle to overcome and the firms decided against merger.
On the other hand, even in the best of situations, with the best of intentions by all parties, each firm must create a technology integration committee and have those two groups work together to create a harmonious and single-purpose technology that serves the needs of the law firm and the interests of the firm's clients.
Looking for value in investing
The Motley Fool is a great resource for understanding today's financial world.
A current article explains the P/E ratio for investing. This is an important tool to use for valuing any business, including a law practice. I particularly like the part where this article's author talks using "free cash flow" as an indicator of value.
Worth your reading ... and taking the time to understand.
How to "fire" a client
Question:
I know that a number of people have "fired" clients. I'm not sure how to fire a client, or at least decline a related matter from an existing client who is a real pain. I don't want to have to deal with him on other matters. What excuses do you use to fire or decline work from existing clients? What should I do?
Response:
Here's one contrarian thought:
Large firm lawyers say they don't want to go solo
See the post on August 17th by Dennis Kennedy discussing an article about large firm lawyers converting to sole practitioners. The article, to Dennis' surprise, suggests that 93% of large firm lawyers wouldn't go solo, even if they were guaranteed the capital to do so.
I'm not sure what "guaranteed capital" means. To me, it means you've got enough to start; it doesn't mean you've got enough to live the life style you want for 12 months or 36 months (or whatever) even if you're not a great rainmaker. The uncertainty of bringing in new business may be more scary to today's youth than we think. And, if you're a great rainmaker, the AmLaw 200 numbers recently released seem to suggest that you will earn more in a large firm context than in your own firm.
Thee are exceptions to every rule, and this is no exception. (Pun not intended, but I like it anyway.)
Asked why I became a lawyer instead of a doctor, my response was because that was in the nature of my personality. I think the same is true for the question as to why you stay in a large firm rather than go solo. It's the nature of our personality that governs what environment we choose in which to practice law...coupled with circumstances (such as being taken off the partnership track, etc.)
I'm not sure the result is so surprising as Dennis suggests, other than that this number varies from the statistic published in an earlier survey.
Selected as "My Favorite Blog"
IOMA, Institute of Management Assistance, publishes several newsletters worthy of consideration. I've benefited from many of their ideas over the years.
I've seen them for many years and am particularly excited now because of a recent post to their electronic magazine, Law Firm Leadership e-Report of August 17, 2005 where Lisa Isom-Rodriguez , Editor, said my blog was her favorite. This is her quote:
"My Favorite BLOG
Okay, the headline isn't exactly fair, since there are a number of amazing BLOGs out there designed to help law firm leaders in a variety of ways. So, consider this my favorite BLOG for the month: the LawBiz Blog from consultant Edward Poll. Check it out for a range of information on financial management, marketing, and more."
I am flattered and pleased that we received this recognition. This shows the power of blogging since I've had no previous connection with IOMA or with Ms. Isom-Rodriguez that would warrant their knowing about our web log. In fact, this issue was forwarded to me by someone else. Otherwise, I would never have seen it! And yet, this major publication believes that our blog is one of the best in the field!!!
Quality control is ever more important!
The Florida Supreme Court recently ruled that legal malpractice can be alleged against an attorney or law firm by a third party who had not retained the lawyer's or law firm's services.
Continue Reading...Leaving a law firm?
In the process of buying a law firm, some lawyers do so in the context of leaving their present firm.
There are caveats or ethical considerations, both from the perspective of morality and rules of professional conduct.
See a collection of resources on the ethics side before taking the leap of faith.
New rule in Illinois -- can now sell a law practice!
Stop the presses!
Illinois, one of the last major States to oppose the selling of a law practice has finally succumbed! You can now sell a law practice in Illinois. The Supreme Court, effective in May 2005 (I just learned of the new rule last Thursday at a meeting of the ABA in Chicago)adopted its own version of Rule 1.17 permitting the sale.
The Court did not adopt the recent modification from the ABA, but rather adopted a modification of the original rule.
Finally! Now lawyers no longer have to play games and create sham partnerships wherein one partner can buy-out the other partner under a retirment plan, this approach having been accepted. Form vs substance. Now lawyers can be above board. And, if the buying lawyer defaults on a pay-out arrangement, the selling lawyer will have standing in court to enforce the agreement.
Congratulations to John Phipps, one of the ardent supporters of the new professional rule. And thanks to Don Rikkli, an Illinois lawyer now deceased, who pushed so hard for this rule but whose widow could not sell Don's practice when he died several years ago. And, in the background (often the foreground), congratulations to Alan DeWoskin, an attorney in St. Louis who was one of the significant movers to get the ABA to adopt its rule in 1991.
Does marketing reduce malpractice risk?
Blink suggests that doctors talk 3 minutes longer than other professionals (lawyers) and that doctors are sued less than lawyers. And managing the client experience is marketing. Therefore, marketing lowers lawyers' risk of malpractice ... or so someone suggests!
Continue Reading...Shall I take this client?
Clients ask me questions and, from time to time, I'll post the question and my response. Here is one:
Question: Should I take a prospective client who wants me to discount my price by 25%?
Response: You must first be sure that your price is competitive (is within the market for your service, your geography and your type of practice). If you are, you might want to be a few dollars lower if you're new to the practice of law ... but not much.
Continue Reading...Idea Management
See Matt Homann's comments today at The NonBillable Hour.
Matt has agreed to have LexThink be the "idea management" team for the National Speakers Association, LA Chapter's, Summer Symposium set for September 16-18th in Rancho Mirage. See my earlier posting on this outstanding conference and why lawyers must attend!
Continue Reading...For Lawyers Who Earn Their Living With Their Mouth -- And That Means All Lawyers!
A unique conference is set for September 2005 in Palm Springs, CA:
Question: Why should lawyers be interested in this conference? The answer is really quite simple: Make more money! See below for the top ten reasons you should attend:
From September 16 -18, 2005, the National Speakers Association (Los Angeles Chapter), will be hosting its 21st annual Summer Symposium at The Lodge in Rancho Mirage (Palm Springs), CA. The title: Magic of Mastery.
Continue Reading...
