Proposed NY advertising rules bring out the opposition
"The legal blogs are boiling:
- 'We go around passing rules that make us look like idiots.'
- 'We continue to handicap (lawyers) and bring everyone into the trenches.'
- 'The small firm can’t afford [this].'"
Small firm hiring is flat
A recent NALP survey suggests that associates in large firms feel free to make lateral moves from one law firm to another ... and that such movement in small firms is neglible.
Continue Reading...Using MySpace for marketing a law practice
See Ernie the Attorney for an interesting comment about marketing. He mentions "guilds" such as the New York Bar and their efforts to restrict lawyer advertising. This is my response to the latter observation:
Continue Reading...Marketing is taking advantage of an opportunity, even if it is E.coli
The Wall Street Journal, in September 27th edition, Marketplace, healines: "How a Tiny Law Firm Made Hay Out of Tainted Spinach."
Marler Clark, a law firm in the State of Washington, filed its first bad spinach lawsuit before all the ballyhoo started. Now, they represent 76 clients injured by the E. coli outbreak. Only 6 lawyers, the firm's reputation for handling food-borne illnesses is quite extensive. That's specialization! And that's marketing expertise! Using the Internet, with many web sites and blogs, plus traditional marketing (such as the license plate on a car), the firm has spread awareness of its expertise.
A masterful job, Mr. Marler.
Can clients pay their legal bills with a credit card?
One of the top axioms of sales is that the vendor of goods and services must make it easy to pay for the goods and services purchased. Difficulty in accepting payment will cause the customer to look elsewhere. At a personal level, I cannot tell you how many times I’ve started to buy something and turned away in mid-stream because the payment process was too difficult.
Continue Reading...Have you delegated your firm's management function? Has that created a "black hole" for violating the RPC?
Another rule change being considered by The State Bar of California is Rule 5.1 concerning the responsibilities of supervising lawyers. The rule provides that partners and other lawyers with managerial authority in a law firm must make reasonable efforts to ensure that the firm has in effect measures giving reasonable assurances that all lawyers in the firm conform to the Rules of Professional Conduct.
Continue Reading...Cash Is Still "King!"
In Law Practice Today, current (September) issue, there are two articles dealing with financial yardsticks you can use to review and know how your law firm really is working, well or not so well.
And, in the same issue, see the article about collecting your fees ... just in case you are not collecting 100% of your billed fees.
Can a lawyer today be "competent" and not technologically proficient?
The State Bar of California is revising is rules of professional conduct, the catalyst being the massive revisions recently made by the American Bar Association.
One of these rules, Rule 1.1 (formerly 3-110), pertains to the definition of “competence.” There is no reference in the definition to technology.
Continue Reading...Benchmarking financial performance of law firms - What does this mean for us?
At a conference last week in Nashville, TN, sponsored by Juris, Inc. and Citigroup Private Bank, among others, the topic was financial bench marking for law firms.
Kudos to those involved.
Benchmarking, according to the presenters, can be used for several purposes:
a. Explore operating deficiencies in the law firm
b. Understand where you are currently relative to your goals
c. Fact-based information to gain consensus among your colleagues
Is this a new fad? Or a new management tool? Industry has used this technique for many years. Several studies in the legal community have given us measurements in the past ... but, there never has been the concerted effort there is today.
As the contrarian that I am, I will assert that this information is helpful ... Helpful, but should not be controlling. The only thing that matters, in my opinion, is what your goals and strategies are ... not what someone else's may be. Yes, we live in a competitive world. And, to some extent, their performance may impact us. However, we must act in accord with what fits with our firm's culture, with the capabilities of our personnel, and with the aspirations we have, not those of our competitors. Fortunately, there are enough clients in the world that there is room for us to live nicely. The benchmarking should be used as a guide to suggest areas where we might improve ... but not as a mandate for change that is inconsistent with our firm's culture.
Continue Reading...What is your duty to the client? Lawyer beware!
Norm Pattis asks an interesting question.
"Lawyer cops among us appear to demand that the client be coddled at all costs. I recently put the following question to an ethics panel: Suppose in a case you come to believe that a certain issue is without merit. Are you obliged to obtain your client's consent before withdrawing the claim? The unanimous decision was "yes." If a client insists on pursuing a meritless claim, then you must do what the client wants, whether it makes sense or not...
Continue Reading...Do you want to be more effective?
Do you want to make your writing and your presentations more effective? Do you want people to pay attention to what you say? Then, see 5 simple tools that will help you.
Thank you to Lisa Solomon for this lead.
Congratulations to a sole practitioner
Carolyn Elefant was interviewed. If you are interested in learning how a well-known sole practitioner views the world, read her interview. And, better yet, read her blog.
Continue Reading...Phishing, not Fishing!
Phishing scams - What are they? And some suggestions from my bank on how to avoid them:
Phishing attacks are "spoofed" e-mails and fraudulent websites designed to fool recipients into divulging personal fianancial data such as credit card numbers, account usernames and passwords, social security numbers, etc. By "hijacking" the trusted brsands of well-known banks, online retailesr and credit card companies, phishers are able to convince up to 5% of recipients to respond to them.
I've been tempted on a number of occasions and, having been burned a couple of times with credit card fraud, have learned to think twice about who is seeking this information. Even now, if in doubt, I forward the information to my web master or my accountant to ask their advice. Most recently, this occured with an e-mail from the Internal Revenue Service -- NOT -- and my accountant told me to delete the e-mail.
Continue Reading...Absence of malpractice insurance must be disclosed under new rule
A Standing Committee of The State Bar of California has proposed new rules: Rule of Professional Conduct and Rule of Court. The public comment period expires September 15th .... My opposition to this proposal follows below.
Continue Reading...Click fraud -- Who pays?
If you purchase ads on the Internet to boost your web site or blog traffic, you may be overcharged. Business Week.
This is a major challenge for Google Ads and Yahoo ads, but, of course, they are financially benefitted.
Outsourcing is taking over
In today's Los Angeles Times, on the front page, is the headline that our top spy agency is outsourcing! More than half of our spys, in a government department opened only 2 years ago, created to prevent another 9-11 tragedy, are not government employees! They're employed by the private sector!
Hmmm, must be an interesting idea whose time has come. <g>
To ensure satisfaction to the client and payment to the lawyer, a lawyer must budget an engagement before starting ...
If a tall skyscraper can be built under a fixed fee contract, clients frequently ask why the cost of their “simple” matter can’t be estimated before beginning work. A lawyer generally responds that he/she doesn’t know enough to prepare an estimate of costs.
Continue Reading...Outsourcing spreading
Outsourcing -- having work done outside of your own office, or your own firm/company -- is not new. For years, companies have been expanding operations to other cities and even other countries. It's called "division of labor" or "economies of scale" or, today, the dreaded and feared "outsourcing."
A new term to describe the phenomenon of having work done most economically and most efficiently.
Continue Reading...State Bar targets solos and minorities
In an apparent attempt to protect the public, a State Bar committee is proposing a new rule of professional conduct and rule of court: This would require all lawyers in California to tell their clients if they do not maintain professional liability (malpractice) insurance.
The problem: The 30,000 lawyers in this category (who don’t have malpractice insurance) are primarily sole practitioners and attorneys of color.
The following is the Statement of Opposition filed on September 14th with the committee:
Continue Reading...Estate planning is a growth practice area!
Ms. Cookie Lewis of askinfomania.com reports on a recent survey conducted by Harris Interactive®.
They report, among other things, that: “Two out of three U.S. adults today have used a lawyer at least once in their lives, about the same percent as in 2000 (65% in 2006 vs. 68% in 2000)... (T)he single biggest reason lawyers are hired today is to handle estate planning. Forty-six percent of those U.S. adults who have hired a lawyer say that is what drove them there, a similar percent as in 2000 (51%).”
This is a statistic that, frankly, surprises me, given the big push to eliminate estate taxes altogether ... and the fact that 2010 is a year when there will be no estate tax.
Hang up the phone!
As of today, California has joined 3 other States banning using a hand-held cell phone while driving. Hands-free cell phones are still o.k. while driving. There are many distractions while driving; talking is probably the most dangerous, no pun intended. The law becomes effective July 1, 2008.
Insecure rainmakers hurt your firm
Mark Maraia talks about insecure rainmakers in a recent posting. He suggests that such partners hurt the law firm.
When reading his comment, I concluded that the term "insecurity" is a bit misleading; perhaps the label isn't important, just an analysis of the behavior. The behavior manifests itself as ego-centric; it is a hoarding behavior that we see too often in firms, large and small. It is a mentality that the client is mine, not the firm's. It is the opposite of the Kennedy paraphrase that a rising ocean raises all the boats in the ocean.
Continue Reading...Multitasking -- More with less or Less with more?
Check out today’s Wall Street Journal, Marketplace Section (B1) in an article by Jared Sandberg. He talks about multi-tasking, a favorite activity of lawyers.
He says, “Multitasking, a term cribbed from comupters, is an information age creed that, while almost universally sworn by, is more rooted in blind faith than fact. It’s the wellspring of office gaffes, as well as the stock answer to how we do more with less when in fact we’re usually doing less with more. What now passes for multi-tasking was once called not paying attention.”
“‘It’s a matter not of if, but when, the multitasker will hit ‘reply’ instead of ‘forward.’ ... The question is whether the mistake will be an annoyance or a catastrophe.’”
Hoping for overnight success!
Chris Carmichael, coach and confidant to Lance Armstrong for many years (and all of his 7 wins in the Tour de France), was talking about overnight successes in the sports field. Some of his athletes ask him how they can reach success quickly, "overnight." His words apply to all endeavors, even the practice of law.
His response: "... So when people press me for shortcuts to success, I tell them that there really aren’t any. If you talk to the guy getting all the glory for his “overnight success,” I’m 99% sure that he doesn’t see it that way. He just sees all the work that went into finally getting it right."
LAWBIZ® EXPERT INDUCTED INTO LEGAL MANAGEMENT ORGANIZATION
FOR IMMEDIATE RELEASE
CONTACT: Katy Conlon
The Ictus Initiative
(617) 717-8294
Katy@ictusinitiative.com
Ed Poll Named as Fellow of The College of Law Practice Management
SAN FRANCISCO, Calif. September 12, 2006 – California-based law practice mangement expert, Edward Poll, was inducted as a Fellow of The College of Law Practice Management Saturday night during a special dinner and induction ceremony. The event was part of the organization’s 12th Annual Meeting held at the Palace Hotel in San Francisco, Calif.
Continue Reading..."The DuPont Model"
Jeff Carr, General Counsel of FMC Technologies, in another interview, talks about the "DuPont Model" and compares this model to his own expectations when interacting with outside counsel for FMC. Jeff talks about how the law firm needs to partner with the Corporate Law Department, collaborating together, as contrasted to the traditional vendor-buyer relationship. Collaboration produces more effective representation at a lower cost to the company without discounting either the value or the per hour fee of the lawyer. Although alternative pricing is an important topic that will likely appear again in our podcasts, this is the last interview in our current series on the topic.
NY advertising prohibition rules causing quite a stir
Larry Bodine discusses a recent case where a lawyer's faxes were held to violate NY's advertising prohibitions. NY is considering even more stringent rules than currently exist.
However, reading between the lines, I suspect it is no so much NY rules about advertising that were violated, but rather the federal act against unsolicited faxes ... and the fact that this same attorney was found guilty in 2004 of virtually the same offense by the same judge.
I don't know about you, but I would think this defendant should know better ... or should not complain if he seeks to be the guinea pig ... Of course, I didn't read that he is appealing the decision. So, perhaps he believes that any notoriety is good notoriety ... and his being sued gets him far more press than he could on his own ... and he will benefit from that. Not exactly the way I would encourage my clients to market!
What's the best way to ensure that I get paid when I take on a new client?
The rules of professional conduct require that lawyers have a signed engagement letter for a new client, stating each party's responsibilities for making the engagement a success. You will have an easier time meeting your client's expectations and collecting your fee if you incorporate all essentials in the engagement letter.
Make sure clients understand that they're entering a two-way relationship. The lawyer agrees to perform to the best of his or her ability in accord with professional standards, and the client agrees to communicate and cooperate fully - which includes paying the bill. At minimum, both lawyer and client should stipulate and agree in the engagement letter about the scope of the work to be performed, what fee will be charged, how it will be calculated, when the fee should be paid, and the consequences of non-payment - including the lawyer's right to withdraw from the matter if payment is not made. When you get agreement on things like this up front, your chances of collecting your fee go up significantly because the client understands what to expect. The time to make it clear is right at the start - as documented in the engagement letter.
More to come...
Cash always is the key element in running a business
There is a cycle for every work project: Getting the work (sales); doing the work (production - operation); and finance (getting paid). Cash, being the grease that makes this wheel turn, has to be considered at every stage. In the selling process, what will be the terms of your agreement? Most lawyers forget about this and merely focus on getting the client. If the client fails to pay on time, most lawyers let the client slide, forgetting that the agreement is a two-way street.
Cash is also important in the production cycle. Paying staff - they can't wait, they have families to feed; vendors, however, can be encouraged to wait a bit.
And, of course, in the finance segment, getting paid is what it's all about!
Then, we start over with a new cycle.
Email -- Hoarders vs. Deleters
See today's Wall Street Journal, Part D, Personal Journal:
There are two kinds of people getting email: The Hoarders and The Deleters!
Hoarders keep every email, judging their self-worth by the number of their retained emails.
Deleters get rid of most of their emails, wanting a very clean electronic environment.
How to avoid embezzlement
Embezzlement in law firms in not so uncommon, as noted by Tom Collins who reports the following:
"As a CPA that worked with businesses of all types before founding Juris, Inc., I can say that I have never encountered a single case of embezzlement outside of the legal community and found it relatively commonplace among law firms. There are several factors making law firms more susceptible to misappropriation of funds—part-time executive management, absent or weak financial management, inadequate internal controls, high volume of pass through disbursements, decentralized approval and signing authority plus a tradition of deadline or crises driven transactions.
Continue Reading...Coaching produces incredible ROI
Larry Bodine relates his success story for marketing / business development coaching. Getting paid only $24,000, his efforts helped a firm increase their billings by $1 million. Congratulations Larry ... and congratulations to the firm for their understanding the value / benefits of coaching.
Benchmarking financial performance of law firms
A recent Juris, Inc. survey of midsized law firms disclosed that partners in the top performing 25 percent of these law firms earned twice the income of the next twenty five percent and more than 7 times the per partner income of the bottom twenty five percent.
Continue Reading...
Is it Christmas already?
We just passed Labor Day. The politicians are badgering our ear drums and eyeballs with their messages, and now some are actually seeking to grab our attention for Christmas!
In an increasingly "niched" world, it's getting easier for people to find information and products that are relevant to their particular interests on the web. Where else can lawyers find Christmas cards, paralegals find Mother’s Day cards, and judges and court reporters find cards that speak directly to them?
Continue Reading...
Alternative Fee Billing
Hugh Q. Gottschalk, an attorney in Colorado, leads us in yet another perspective on alternative legal services pricing. He also discusses understanding the cost of your services, budgeting for litigation and structuring the actual fee agreement with a client.
These discussions should be considered in light of the "reasonableness" of legal fees... and most importantly, how the lawyer can deliver quality services at a price that will produce a reasonable profit for the lawyer at an acceptable price to the client.
Blogging - A contrarian view
Alan Weiss, noted management consultant, also known as The Contrarian(r), has negative vides about blogging: "Give it time. You can see that blogs are on the decline. There are too many, not enough time, and too much useless opinion. Rushing into any new technology or approach rarely gives you a market advantage and can sap your resources."
While I would not go so far as Alan does, it is clear that blogging is very expensive. See my earlier blog and my writing (check out the archives), where I point out that a modest time commitment to blogging will cost you close to a $100,000 per year! That ain't cheap! Better compute the benefits you receive from blogging, that infamous ROI principle.
Where technology may fail
Good advice, from Alan Weiss, noted business management consultant: Keep serial numbers and service numbers on hard copy readily available. They do no good on your computer if your computer or monitor has failed. And you don't want to go digging around when time is scarce.
Sometimes "paper" is better than technology, even if only as a backup.
Juris® Announces Alliance with LawBiz® to Conduct Joint Managing Partner Roundtables
BRENTWOOD, Tenn. (September 1, 2006) – Juris, Inc. is pleased to announce its business alliance with LawBiz Management Company, a division of Edward Poll & Associates, Inc., to jointly conduct local Managing Partner Business Roundtable meetings throughout the U.S.
The Managing Partner Roundtables are an extension of the very successful “Juris Managing Partner Forum”, a group of law firm managing partners who meet annually in a two day forum to discuss critical business issues facing their firms. The Business Roundtables will extend the Juris Managing Partner Forum benefits by conducting focused monthly meetings in cities throughout the United States. Stephen Collins, president of Juris said, “Ed Poll’s experience in practicing law as a managing partner and his consulting and coaching of managing partners brings a unique perspective to the Juris Managing Partner Forum members. Also, the fact that Ed has been successfully conducting these Roundtables in Los Angeles for years allows us to leverage his experience in making these meetings valuable to participants.”
Continue Reading...
