Is your law firm management style a joke -- or is this just April Fool's Day?
Years ago, as a youngster, I saw a clip on television that I remember to this day. It was a short that demonstrated how spaghetti was harvested! Yes, harvested! Full grown spaghetti being taken off the vine. This made no sense to me, but there it was, on television; it must be true.
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Flat fees is an art
The Ambrose law firm in Oregon is using the flat fee billing modality to significantly improve profits. Quoting Ed Poll, the writer in this article said: "According to Poll, 'determining what a fee should be is an art, not a science.' It requires the firm to consider the costs of running the firm, to have a tap on the marketplace and to understand the value to the client, he said..."
Profits can be stated in a mathematical formula: P = R - E. But, the "E" has a limitation. You can reduce expenses only so much before you start cutting out the "meat" of the law firm. "R," on the other hand, has no limit. You can increase revenue without limitation. Focused practice development efforts will attract new work; and once you get the work, you can develop the appropriate infrastructure to handle the increases.
Congratulations to Dave Ambrose and his crew of outstanding folks.
Profits can be stated in a mathematical formula: P = R - E. But, the "E" has a limitation. You can reduce expenses only so much before you start cutting out the "meat" of the law firm. "R," on the other hand, has no limit. You can increase revenue without limitation. Focused practice development efforts will attract new work; and once you get the work, you can develop the appropriate infrastructure to handle the increases.
Congratulations to Dave Ambrose and his crew of outstanding folks.
Save energy with better use of technology
See Monica Bay's blog article about saving energy when using new technology.
YouTube and new technology
Many folks are beginning to use video on YouTube. Political satire, personal journal-ing, acting and singing are examples of personal use of the "new" technology.
Law firms, especially sole practitioners, can't be too far behind in this world where change is happening at an ever-increasing pace. For example, I was advised not to buy a new PDA because Apple will be releasing its new i-Phone in the next few months. My audio studio is more sophisticated, I'm told by an engineer, than most radio stations. Yet, it is now obsolete because of Panasonic's new phone system which I just installed that allows me to do the same recording, and more, than I was able to do with the old system.
One can spend both a fortune in money and in time just keeping up. The goal: Stay at the leading edge of technology where it enables you to perform more or more efficiently the work that your clients value from you. Know what the bleeding edge of technology will bring, but otherwise ignore it.
Law firms, especially sole practitioners, can't be too far behind in this world where change is happening at an ever-increasing pace. For example, I was advised not to buy a new PDA because Apple will be releasing its new i-Phone in the next few months. My audio studio is more sophisticated, I'm told by an engineer, than most radio stations. Yet, it is now obsolete because of Panasonic's new phone system which I just installed that allows me to do the same recording, and more, than I was able to do with the old system.
One can spend both a fortune in money and in time just keeping up. The goal: Stay at the leading edge of technology where it enables you to perform more or more efficiently the work that your clients value from you. Know what the bleeding edge of technology will bring, but otherwise ignore it.
Registered E-mails
Ed Poll interviewes Zafar Khan, chief executive officer of RPost, a new electronic registered mail system that allows you to both certify receipt of mail by the recipient as well as the contents of the attachments. Not even the U.S. Postal service can do the latter. It's the next best thing to having someone watch the recipient read your post. And, the best part, you don't even have to sign up for the service, just pay for the post as you use it. Listen for more details as Ed interviews Zafar.
21 minutes, 24 seconds
5.0MB
Realization rates reexamined
Realization rate now has one more element to its definition. Tom Collins analyzes this management tool-metric for evaluating performance.
Beware of the Honeypot
Honeypots are a new phenomenon that can ensnare the unwary.
Tech error wipe out!
From Associated Press, (March 20, 2007)
That's what happened to a computer technician reformatting a disk drive at the Alaska Department of Revenue. While doing routine maintenance work, the technician accidentally deleted applicant information for an oil-funded account - one of
There was still hope, until the department discovered its third line of defense, backup tapes, were unreadable.
See full article by Anne Sutton (Associated Press Writer)
Law firm associates want more than money
An interesting article appears in Law Office Management & Administration Report, April 2007 issue about the new associate salary increase. The point of the article is that “money isn’t the answer...” to keep associates.
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Law firm management governed by economics
Charles & Mary Beard wrote in the 1930s about the US Constitution having been crafted within the background of economics (see their marvelous work, Economic Interpretation of the U.S. Constitution). So, too, one can look at Mayer Brown's recent actions in light of economics of a law practice. In fact, if one doesn't look at the larger economic picture, there would be a gaping hole in the analysis!
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Lawyer greed or law firm competitiveness?
This week, we've seen much discussion about the Mayer Brown "layoffs" of 10% of their partners. I have always maintained that law firms mirror their clients. Was Mayer Brown doing any different?
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Lawyers need coaches, too!
According to Bob Pike, the guru of trainers' training programs, a new study suggests as many as half of mid-level corporate managers have received coaching in the workplace in recent years.
Even lawyers are now getting coaching. Those who want to take their sucess to the next level engage a coach as an ally, just as athletes do.
Even lawyers are now getting coaching. Those who want to take their sucess to the next level engage a coach as an ally, just as athletes do.
Strategic planning is not set in stone
Tom Collins suggests that many consultants discredit the value of strategic planning. And Larry Bodine bemoans the current "business" environment of law firms.
Law firms have always been seen by those law firms that have grown to the behemoths they are today, and those who would like to emulate those large law firms in the AmLaw 100, as a business! Continue Reading...
Law firms have always been seen by those law firms that have grown to the behemoths they are today, and those who would like to emulate those large law firms in the AmLaw 100, as a business! Continue Reading...
Law firm finances is not a joke
Larry Bodine quotes Patrick Lamb about Mayer Brown, "PPP is a joke. And what's more of a joke, lawyers either are so stupid that they can't see behind the manipulation or they know how meaningless the statistic is, in which case law firm managers are fools for running their firms based on a bogey everyone knows is so malleable. Seriously, senior firm managers really have to ask themselves, if a prospective partner is attracted to them because of their PPP and doesn't know how the firm's "stock price" is so easily manipulated, do they really want such a fool as a partner?"
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Time change -- BEWARE
We prepared for Y2K. Nothing untoward happened. Apparently, no one prepared for the early time change. While I suspected that there was something awry in my Outlook calendar, I wasn't sure until today when I missed an appointment. This recurring appointment was displayed one hour later than originally scheduled!
The real issue seems to be in the "recurring" events, those events that occur the same time on a daily or weekly basis.
I thought MS patch dealt with these Outlook issues. Apparently, for the three weeks involved, this didn't happen. Check your "recurring" appointments. Manually set appointments do not seem to be affected. So, now, I've manually fixed all my appointments, even the recurring ones ... and may even rely on paper/pencil calendar for awhile. Be sure to check your system on a daily basis. Again, check it when the three weeks are over and yet again in the Fall.
The real issue seems to be in the "recurring" events, those events that occur the same time on a daily or weekly basis.
I thought MS patch dealt with these Outlook issues. Apparently, for the three weeks involved, this didn't happen. Check your "recurring" appointments. Manually set appointments do not seem to be affected. So, now, I've manually fixed all my appointments, even the recurring ones ... and may even rely on paper/pencil calendar for awhile. Be sure to check your system on a daily basis. Again, check it when the three weeks are over and yet again in the Fall.
West LegalEdcenter
West LegalEdcenter features a teleseminar about business planning for the law firm: The First Essential to Success: Creating a Business Plan. Be sure to listen ... the prgram is interactive ... Should the time (Wednesday, 3/14/07, 11 a.m. PT) not be convenient for you, you can download the program at any time for later listening.
IF you're reading this post, AND you sign up for the program, feel free to call or email me for an answer to any question you may have arising from the program.
I hope to hear you online.
IF you're reading this post, AND you sign up for the program, feel free to call or email me for an answer to any question you may have arising from the program.
I hope to hear you online.
Law firm ownership interests adjusted!
Mayer Brown unloaded 45 partners! 10% of their partners! Why? According to an internal memo published by Wall Street Journal, the reason was to increase their profits per partner, a standard they say is important in competition for laterals and law school grads.
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Marketing Strategies, Focus Groups, Branding & Brainstorming
In this week's podcast, Ed Interviews Holly O’Neill. She is the principal of Talking Business, a company focusing on marketing strategies, focus groups, branding and brainstorming for new products and services.
14 minutes, 47 seconds
3.4MB
Law firm contingent fees can create problems
Conflicts can be created when traditionally transaction - commercial litigation law firms, paid by the hour, enter into the contingency fee arena. The Wall Street Journal, in its March 7th edition, delineates several of these, and more are discussed below.
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Blogging for money -- ethical?
Is the blogging world becoming polluted? Is the line between paid advertising and unbiased opinion becoming blurred?
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Warning! The time is a'changin'
Don't forget, the time is changing this week-end. Not bad enough that most lawyers are already overworked, we're "losing" an hour of billable (or sleep-able) time. While our bodies make the difficult adjustment (according to psychologists, we become moody and cranky until our bio-rhythms adjust, sometimes taking several weeks), what about our computers?
I'm told by MS that their service packs are not sufficient to make the complete adjustment for all of our programs. Thus, be careful, our computers (calendars, etc.) may have a difficult time as well making the adjustment this week-end.
I'm told by MS that their service packs are not sufficient to make the complete adjustment for all of our programs. Thus, be careful, our computers (calendars, etc.) may have a difficult time as well making the adjustment this week-end.
Law firm management issues to be reviewed
Law Firm Leaders Forum in San Francisco today and tomorrow promises to highlight issues of importance to all lawyers by the leaders of some outstanding law firms. I look forward to hearing more about their comments from Adam Smith.
Tell me about the issues that face you and your firm.
Tell me about the issues that face you and your firm.
Law firm management needs to create loyalty
In previous times, I was concerned with exceeding client expectations. However, in this era of fast-moving relationships, this merely means we are “renting” clients’ business. In order to avoid “burn-out” by lawyers and clients who are not satisfied with lawyers, I think we need to talk in terms of “managing” client expectations. When clients know what to expect from their lawyers, and their lawyers deliver what they promise, obviously clients will be satisfied.
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Cash flow becomes tighter with associate salary increases
Adam Smith has a nice piece on the recent associate salary increases to $160,000. It's hard, however, to feel sympathetic to law firms where the disparity between partners and associates continues to increase. Of course, law firms merely reflect their corporate clients where the CEO compensation (sometimes at hundreds of millions of dollars) is far greater than the rank-and-file compensation than at any other time in our history.
Will clients change their purchasing habits. If history is a teacher, the answer will be "not significantly."
Ultimately, who pays for these increases? Us. Consumers. That's why they call it inflation.
Will clients change their purchasing habits. If history is a teacher, the answer will be "not significantly."
Ultimately, who pays for these increases? Us. Consumers. That's why they call it inflation.
Law firm finances - Banking
A recent survey of small business owners by SurePayroll has produced some interesting results concerning business relationships with banks:
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Law Firm Technology Tips
Albert Einstein said that "... (technology is) this magnificent applied science which saves work and makes life easier ..." Here are a few such tips for consideration:
1. Radio-frequency identification tags for your luggage will increase the chances of keeping your luggage and tracking it if/when lost.
2. New workplace trend: Use a gym ball in place of a chair. Ergonomic consultants suggest that gym balls help strengthen one's abdominal and lower back muscles as well as improving posture. Technology has helped design some of the fancy chairs now being sold for egonomic benefits. Going back, however, to some of the old ways may be the real solution to back and other medical ills. Einstein went on to say that technology fails to bring us happiness "...because we have not yet learned to make sensible use of it." The gym ball may be one example of "sensible use" of existing knowledge.
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1. Radio-frequency identification tags for your luggage will increase the chances of keeping your luggage and tracking it if/when lost.
2. New workplace trend: Use a gym ball in place of a chair. Ergonomic consultants suggest that gym balls help strengthen one's abdominal and lower back muscles as well as improving posture. Technology has helped design some of the fancy chairs now being sold for egonomic benefits. Going back, however, to some of the old ways may be the real solution to back and other medical ills. Einstein went on to say that technology fails to bring us happiness "...because we have not yet learned to make sensible use of it." The gym ball may be one example of "sensible use" of existing knowledge.
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Outsourcing Helps Lawyers Deal with Increased Secretarial Needs
Ed interviews Don Garrison of Quik Sek, a virtual dictation service. He discusses how his company uses "outsourcing" to help lawyers deal with increased secretarial needs. He talks about the company's technology to help lawyers deal with forgotten or never-learned dictation skills needed to use his service. Listen now to this interesting conversation.
14 minutes, 41 seconds
3.4MB
Law firm management - Use of cell phones
Cell phones are ubiquitous - In fact, I fear the next generation of young folks may be born with one arm at a 90 degree angle resulting from their parents seemingly being in a permanent "cocked arm" position .
However, there are things you can do with a cell phone that you may not have realized. Check out the following:
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However, there are things you can do with a cell phone that you may not have realized. Check out the following:
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Advertising is part of law firm management
As of February 1st, New York adopted a new set of rules and regulations concerning law firm advertising. These rules apply to any attorney based in New York, representing clients in New York or seeking clients in New York.
Obviously, that doesn’t apply to all attorneys in the country. So why should the rest of us care? Because what New York Bar does will affect the thinking of other Bars .... For example, the California Bar is now reviewing its rules, currently less stringent and more predictable than New York’s. Others are as well. Continue Reading...
Obviously, that doesn’t apply to all attorneys in the country. So why should the rest of us care? Because what New York Bar does will affect the thinking of other Bars .... For example, the California Bar is now reviewing its rules, currently less stringent and more predictable than New York’s. Others are as well. Continue Reading...
