Legal fees - Value is in the eyes of the beholder
Price and value are clearly not the same when it comes to legal fees. While both are time sensitive (as of any given moment in time), the former generally is set by the seller/lawyer and the latter is generally perceived by the buyer/client. Price can be value, in my opinion, when the client is involved in the setting of the legal fee and price is determined by the value perceived by the client. Some folks call this "value billing."
Billable h ours on the way out?
Don't bill for time spent by first year associates, increase dramatically the time spent on educating young associates and bill only by fixed or flat fees ... these are three different approaches to providing more value to clients and greater certainty to the cost of legal services for clients that are highlighted in a current article in the ABA Journal.
Does any or all of these new approaches increase the cost of doing business? Possibly. Do they increase satisfaction of your clients. Definitely. Do they increase your revenue? Quite probably.
These approaches are worth considering and perhaps adopting for your practice.
Cash flow of lawyers is impacted by insurance proposal
Mike McKee, a reporter for the San Francisco Recorder once again underscores the hostility that California lawyers have against the current malpractice insurance disclosure proposal.
Still, the question I asked earlier in this series has yet to be answered by the Board of Governors! Why is it that shareholders of law professional corporations do not have to disclose that they do not have malpractice insurance? Or, at least meaningful malpractice insurance? All they need to do is sign a piece of paper saying that they will be responsible for the first $50,000 of a malpractice judgment. There is no financial statement required, no verification of financial ability and no insurance policy required under the current rules; nor is there any such requirement under the new proposed rule!
And why is this fair in the minds of the Governors supporting this proposal?
Is the billable hour a trap? A contrarian perspective.
In Law Firm Fees & Compensation: A LawBiz® Special Report, I discuss several formats for billing legal services. Jeff Bleich, President of the State Bar of California, discusses one of these formats, the billable hour in his April column of the California Bar Journal. He raises the specter of the “billable hour trap.” He maintains that the profession must change its fee structure and move away from the current policy of billing by time. He reflects the thinking of many lawyers who are feeling the pressure of working long hours.
Because of his comments, I began to think about this subject in a way different than I have ever done in the past. I want to share some of my revelations as, perhaps, a catalyst for your further consideration on what clearly is a very important issue.
Solo lawyers and malpractice insurance debate
Sole and small firm practitioners have more at stake than insurance in the current debate at the California Board of Governors over mandatory disclosure of malpractice insurance coverage, much more! Their very existence is threatened. Perhaps that is an overstatement. What is clear, though, is that the economic well-being of this group, and the very survival of many individuals in this group, is being threatened.
Continue Reading...Law Firm Fees & Compensation
Our new book is now available. See the comments of Carolyn Elefant, Allison Shields and Bruce MacEwen.
Learn why legal fees and compensation are integral components of the same dynamic!
Fraud by lawyers
Massachusetts followed similar actions by Connecticut and Rhode Island. Insurance carriers are now required to send a notice to consumers whenever $5,000 or more is sent to attorneys to settle clients' claims. The objective is to prevent fraud by lawyers; some lawyers resolve clients' claims without the consent of their clients or endorse/forge the settlement checks and deposit the funds into their own accounts.
The theory is that knowledge by clients will prevent fraud. I've never known knowledge of such settlements preventing thievery. But, then, I've also never known clients who walk away just because a lawyer has one sentence in a fee agreement that they have no malpractice insurance.
First, there is a very small percentage of "bad apples" in the legal profession. Second, remedies such as the "disclosure" requirement are band-aids on a scab. They are not truly remedial of the cause of the problems. While the rubric is "client protection," the real protection will come from better education of lawyers, including practice management education, providing affordable malpractice insurance, and then requiring every lawyer to have malpractice insurance -- real insurance, not self-insurance!
Collecting Your Fee -- Sue As Last Resort
In my book, Collecting Your Fee: Getting Paid from Intake to Invoice, I maintain that your intake procedure is the most important step in the collection process; that an appropriate conversation with your client about payment of fees in the beginning of your relationship will almost certainly assure payment; and that a business-like approach to the pricing of legal services and collection of legal fees will assure collection of most, if not all, your outstanding billings.
However, where there is delayed payment, be sure it is not because of a legitimate complaint against you or the service provided. Given that, if the client has the ability but not the commitment to pay, you may want to consider filing suit against the former client.
You should review certain considerations before doing so:
Continue Reading...Getting Paid to Complete the Cycle
The business cycle of practicing law includes getting the client, doing the work and, finally, getting paid.
David Leffler, in GPSolo Magazine (Oct/Nov 2007) suggests that there are five stages to paying a lawyer’s bill:
1. Denial – Client says this couldn’t be my bill, the charges are too high.
2. Anger – Client says lawyers are way too expensive for what they achieve.
3. Bargaining – Client seeks to negotiate a reduced fee with the lawyer.
4. Depression – Client doesn’t contact you and is unavailble for your calls.
5. Acceptance – When Client sends you a check that clears the bank.
David talks about the importance of the beginning of the lawyer-client relationship. I agree. The intake process is what essentially sets the tone of the relationship. In my opinion, your success in the intake process at the beginning will determine your success in collecting your fee at the end.
For more about suggestions about lawyers' collections efforts, see my book.
E-billing: Blessing or Burden
In an article in the September 2007 edition of Law Firm Inc., e-billing is discussed. Here are some of the primary points made in the article:
Pro
• Find errors and charges that aren’t in keeping with the client’s billing standards
• Compares costs among various outside law firms
• Saves 15 - 18% of its outside legal costs in some instances
• Reduces workload in reviewing and approval process
• Increase payment by 30 days to the law firm
• Faster pay increases profit for the law firm
Con
• Increased cost connected with e-billing
• Usually have to hire a dedicated person/staff to deal with the e-billing detail
• Places small firms at a competitive disadvantage because they generally can’t afford the cost of the software, the learning curve and the additional staff required to handle the process
• On-going software maintenance fees
• Additional fee for each additional custom billing template needed for a new client
• Added accounting requirements
• Steep learning curve for attorneys to learn different billing codes for each client
• Increased possibility/likelihood of billing errors because of lack of uniformity in codes
• Rejection of total billing invoice when there is a human error on one element – invoice is returned for correction
• Notification of error is seldom complete and law firm is expected to know what the error is; if this is not the case, the process becomes process, return, fix, return, reject, etc., until it is finally determined what the error is and it’s fixed.
The article concludes that, at the moment, e-billing today is not likely to benefit law firms, though it may in the future; but it clearly is an added cost of doing business.
Thus, whether it's a blessing or a burden depends on which side of the table this discussion finds you.
Malpractice Insurance Disclosure Sent to Committee
The State Bar of California’s Board of Governors narrowly voted to amend the current proposal to require lawyers who don’t carry malpractice insurance to disclose this fact to their clients. The amendment would require such disclosure only in those situations where a lawyer is required to have a written engagement agreement pursuant to Business & Professions Code §6147 & 6148.
That amended proposal, then, was defeated; a subsequent sense of the Board was to send this issue to its own committee (Regulations, Admissions & Discipline Committee, not the original task force that was submitting the proposal) for further study. Two issues were uppermost in the Board’s mind. One was whether the amended proposal could be adopted by the Board without further public comment and, second, whether the full ramifications of the original proposal were completely understood by the Board.
It is hoped that the RAD committee will be successful in addressing the issues that face all of the stakeholders involved, the public and members of the Bar, without the perception of self-interest or financial gain for the Bar ... and with the interest of all lawyers in mind (including the 30,000 not currently insured).
Continue Reading...Collecting Your Fee mentioned
Don Downey graciously mentioned our book, Collecting Your Fee: Getting Paid from Intake to Invoice (ABA 2003) with the following comment:
“… a client who genuinely respects you and the work you did will pay your bill in a timely manner.” ED Poll (2003)
In meeting Ed a few years ago and having the opportunity to speak with him on several occasions, I can’t help but say that those few words embody AR collections. Not just law firm collections, but all collections. When we communicate with our clients, we need to keep in mind that every communication either gets us closer to payment or further from a payment. Our motivation, if you haven’t already seen it, should be closer to receiving payment!
Legal Fee Guidelines
Guidelines from North Carolina for billing at hourly rates were recently sent to me by Tom Grella, immediate past chair of the ABA's Law Practice Management Section.
The focus of the opinion is whether it is reasonable to charge for email and other communications among the staff and lawyers about a client's matter.
Continue Reading...Save money by knowing the earth is flat!
With tomorrow being October 8th and Columbus Day, it is time to recall the great traveler who taught is that the world is, in fact, round! He went from the East to the West.
It took Thomas Friedman to teach us that "the world is flat" by going from the West to the East!
Friedman teaches, among other things, about "outsourcing." Many lawyers are using this principle (sometimes also called "delegation") to lower their cost of operation and thus increase their profit. Even sole practitioners and small firm lawyers can effectively use this principle.
I encourage you to read Friedman's book.
Malpractice insurance disclosure
The tidal wave has not yet struck! That means there is still time to save ourselves.
The California State Bar Board of Governors voted today on the proposal to require disclosure to prospective clients that they do not have malpractice insurance (if they don't). Other lawyers who are either exempt under the rule or who do have E & O coverage do not have to discuss malpractice insurance or disclose anything about the subject in their engagement agreement.
Continue Reading...Law firm virtual banking
During a discussion amongst law firm chief financial officers that I moderated for the American Bar Association, one of the best practices mentioned was the use of check scanners. Coincidentally, not more than 7 weeks after that event, my bank installed a check scanner into my office.
It is a remarkable instrument that further reduces the bank float from your clients and gives you almost immediate access to "good funds." No more waiting for the "check to clear" or other excuse for delaying your use of funds.
Continue Reading...Lawyers Need Work
Can lawyers find jobs in today’s market? The Wall Street Journal (page 1, Sept. 24, 2007) suggests that it’s not so easy today. That’s consistent with my earlier blog post that lawyers are “between a rock and a hard place.”
It is also consistent with my assertion that law is a business, or framed in the context of my registered trademark, The Business of Law® is governed by the principles of economics. Yes, law is a profession, but as Tower Snow, once managing partner of the former Brobeck, Phleger & Harrison law firm in San Francisco said, “Law is subject to the same laws of economics as any other business...”
Continue Reading...Associate lawyer compensation: Have we yet hit the vomit point?
Many years ago, a good friend of mine said that the problem with aging is that we’re mired in history rather than focusing our perspective on today.
Thus, today's article in The American Lawyer by David Brown may shock those of us who are over the age of 30!
He talks about the “paycheck report,” a survey of “mid-level” associate compensation. Associates’ paychecks exceed $200,000 per year and, in some instances, reach $350,000!
Legal fees rising to vomit point
According to NALP, 14% of law school graduates earn $135,000 (now $160,000) starting compensation. 42% earn $55,000 or less.
This is consistent with statistics that show experienced lawyers earning less than the public believes lawyers earn: 50% at less than $100,000 and 25% at less than $50,000!
Thus, lawyers are "between a rock and a hard place!" The public believes that figures reported in the Wall Street Journal of August 22nd to the effect that lawyers are now charging $1,000 per hour is the norm or standard. Yet, only a few lawyers are commanding that fee level, and then only in the "bet the company" kind of cases. Commoditized work cannot command that rate. Even in extraordinary matters, that rate approaches what one New York law firm partner said is clients' "vomit point."
Law firms impacted by current credit crunch
I was asked if the current credit crunch/crisis is affecting law firms.
My response was that the credit crunch, I think, is somewhat artificial … and folks that are being hurt are ones that extended themselves too far in the first place without a safety net …. Or ones whose business just evaporated without warning (although there usually is some kind of warning if observant).
Financial planning for law firms
At the ABA conference in San Francisco last week, I had the pleasure to moderate an outstanding panel of experts about the financial management of their firms and their "best practices." The panel consisted of Bob Hirshon, CEO of Stoel Rives in Portland, OR (and former ABA president); Marcia Wasserman, COO of Nossaman Guthner Knox & Elliott; Larry Kleinberg, CFO of Munger Tolles & Olson; and Ron Yano, CFO of Loeb & Loeb.
Reid Trautz mentioned his observations from our panel:
"From a terrific panel of firm financial managers moderated by Ed Poll, comes these interesting ideas:
- Firms are taking advantage of the new check scanners offered by some banks to more quickly and securely deposit client checks.
- More firms are closing their billing on the 25th day of each month to get their bills into the "first of the month" billing cycle of clients--both businesses and individuals.
- Law firms are putting more pressure on partners to collect bills sooner (nothing new there!), but they are using automated e-mail and other added technology features now available in many time & billing programs to keep the pressure on, well, automatically!
- Larger firms are doing more to ensure that each new client matter has a signed representation letter or agreement before starting any work. This is a smart practice, and is just one area where large firms tend to lag behind smaller firms."
Getting paid for your legal work
The Canadian Bar Association has a series on how to get paid. Check it out if you're collecting anything less than 95% of what you bill.
Getting paid - CA Supreme Court weighs in
In 2004, the California Supreme Court in Fletcher v Davis said that a lien by an attorney on a fund or judgment the lawyer receives to ensure compensation of an hourly fee engagement is enforceable.
Continue Reading...Increase your legal fees in one easy step!
Failure to collect fees can sink a law firm. After billing $100, some lawyers can collect only $65. Can your firm survive with a realization rate of only 65%? What enables some lawyers to collect what they bill and other lawyers unable to do so?
Collecting Your Fees: Ethically Getting Paid from Intake to Invoice will be offered by the ABA on June 21st at 10 a.m. PT.
Law firm goes public
No longer is there a debate about whether a law firm is in business. It is clear that the answer is yes!
In Australia, a class action law firm has filed an IPO. This is the first for a law firm following new legislation in Australia that allows firms to raise funds on the public markets and allows non-lawyers to invest. A similar bill is under consideration in the United Kingdom.
While safeguards must be in place to prevent non-lawyers from practicing law, why shouldn't they be allowed to invest in law firms just as they do in other professional service or manufacturing entities? As the proverb suggests, "these are interesting times."
How Should Law Firms Track Finances?
There are two basic methods for keeping track of law firm financial performance: accrual and cash accounting. Accrual records income irrespective of whether cash has been collected, and reflects billings, work in progress (completed but not yet billed) and accounts receivable (work billed but not yet collected). Cash accounting, on the other hand, reflects only collections, never billings or work in progress.
Financial planning for law firms - Metrics for success
Wesst LegalEdcenter will be presenting a teleseminar on the topic of financial planning and metrics for reviewing profitability. Wednesday at 10 a.m. PT
Unless there is a specific goal, one usually expressed in a number, there can be no goal. It’s been said that unless something can be measured, it has no value. Yet, when talking about creating a financial plan or a budget or, sometimes, even a strategic plan, there frequently comes a glaze over lawyers’ eyes. “That’s something for someone else to do, not me.” Yet, it’s this financial component that let’s us know whether we’re successful. How else could we tell? By the amount of money in our bank account? Yes, but how do we know whether that amount shouldn’t or couldn’t have been more? What is our benchmark?
This program will answer these questions.
Fixed fees gain acceptance
Buying legal services is generally compensated, still, by the hour. But, according to Wall Street Journal writer, Ashby Jones, on May 2, 2007 (Marketplace Section) says that technology now permits law firms to gather cost information in greater detail than ever ... and thus permits them to determine what it cost to deliver those services. With this, law firms are more willing to enter into fixed fee arrangements.
Some General Counsel, responsible for their company’s legal expenses, are interested in fixing the fees in order to be able to budget for their department’s expenses. Cisco, for example, has more than 70% of its annual $125 million legal budget under fixed fee arrangements.
Continue Reading...Law firm billing opportunities
When a client calls to inquire about your bill, opportunity is knocking!
Continue Reading...Filing tax returns "late" -- If only we knew!
If only we knew that we could file late and not get penalized! We could have kept our money in the bank longer ... or not sold the securities needed to raise the cash to pay the taxes.
IRS noted that Taxpayers, Tax Professionals with TurboTax problems have until midnight April 19 to e-file (IR-2007-91, April 18, 2007)
This has not been a good few days for technology: TurboTax and Blackberry both went down! This would have made for a good bet. But, perhaps with so many technological devices at hand, it should not be a surprise when crashes occur.
New postal regulations effective next month
New postal regulations may not be understood. They go into effect in May. If you don't want your costs to go up by as much as 50%, you need to pay attention.
Fraudulent cashier's checks
I must have been naive, but I always thought cashier's checks meant that the money represented by the check was segregated by the bank and awaited deposit to give the bearer the funds. It seems that isn't necessarily true, as it turns out. But, the real fraud is committed by the criminal mind in counterfeiting those cashier's checks, something I didn't think possible.
Continue Reading...Corporate Counsel Seek New Ways to Price Legal Work
March 19, 2007
BUSINESS FINDS LEGAL SALARIES HARDER TO STOMACH
To Contain Costs, Corporate Counsel Seek New Ways to Price Legal Work
By Bobbi Murray
Daily Journal Staff Writer
LOS ANGELES - A fresh raise for law firm associates this year has renewed discussions among corporate counsels about how to trim legal costs.
In-house lawyers say they aren't unwilling to foot an outsized bill for bet-the-company cases. But they are increasingly looking askance at bills larded up with high associate salaries working on routine matters.
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.
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.
Continue Reading...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!
Continue Reading...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?
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?"
Continue Reading...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.
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.
Continue Reading...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.
Law firm finances - Banking
A recent survey of small business owners by SurePayroll has produced some interesting results concerning business relationships with banks:
Law firm associate salaries increase
One large law firm after another is falling prey to the new, higher level of associate salaries, $160,000! My, oh my! Where will this madness stop?
Larry Bodine has an interesting take on this phenomenon, saying that the marketing opportunities for the smaller, regional firm are now greater than ever.
Bruce MacEwen has a different perspective, suggesting that we're asking the wrong question and looking at the wrong issue when we focus on the first year's associates' salary increase.
Continue Reading...Lawyer management consulting re banking
Tom Collins discusses an important issue concerning law firm creditworthinesss, law firm culture.
Citing a CitiBank report, culture of a law firm is an important consideration in granting credit. This is consitent with one of the 4 C's cited in our latest Special Report, The Successful Lawyer-Banker Relationship.
Tom also discusses the reason for partner defection. He suggests that it is not over money, but rather over the lack of law firm planning and business direction. An interesting thought.
The market says rates can go higher
There has been recent discussion among some of the smaller law firms about reasonable (ABA standard) and unconscionable (California standard) fees. Unfortunately, this is a back-look standard where Monday-morning-quarterbacking reigns supreme.
Use of credit cards to pay legal fees and costs
The California Standing Committee on Professional Responsibility and Conduct has submitted for public comment its interim opinion No. 05-0009 concerning the use of credit cards for payment of earned legal fees, payment of unearned legal fees and costs and expenses.
My response to the proffered opinion follows:
Silence can be very loud
Jack and Suzy Welch, one of their weekly columns for Business Week magazine, respond to the following question (paraphrased): “I’ve recently noticed that new MBAs are passing me by and moving into management in my company. I assume this is because they’re less expensive than experienced workers such as me. Do you see this as a trend?”
Their response was fascinating to me.
Open letter to California Bar President
Editor, California Bar Journal
180 Howard Street
San Francisco, CA 94105-1639
December 20, 2006
Letter to the Editor
Letter to the President of the State Bar of California
In the current issue of the California Bar Journal, Sheldon Sloan, President, State Bar of California, starts his President’s column, stating: “As members of the State Bar Board of Governors, our most important duty - second only to public protection - is keeping watch over the hard-earned dollars you (lawyers of California) send us each year both in mandatory and voluntary donations.”
Some interesting numbers
Numbers don't tell us everything. But some numbers should start us thinking:
Continue Reading...Is Benchmarking the master or the servant?
Recently, I received a call from a lawyer wanting to know what percentage of his gross revenue should be allocated to rent, perhaps the number 2 or number 3 largest cost item for lawyers. He said he wanted to know whether his percentage was in line with other law firms.
My response didn’t satisfy him; he went to another consultant and was told the average was 12%. In a recent survey conducted by Juris, Inc., the percentage for occupancy cost was 9%.
Continue Reading...It's that time of year again when billing rates increase
My experience tells me that sole and small firm lawyers' billing rates, despite the publicity to the contrary, are below "market value." Rates can be increased a bit, generally. And no excuse needs to be given if the increases are done properly. I've written several suggestions on how and when to increase rates.
Continue Reading...Never Negotiate Against Your Own Self-Interest
Every lawyer is a businessperson. Your practice is your business, and if you do not work to ensure its profitability, no one else will. Some lawyers, however, do not grasp this truth, and risk undermining their business by their own actions.
Continue Reading...Delinquent Taxpayers - Beware
The State of California has a new tactic for encouraging payment of its sales and use taxes.
The Board of Equalization, the tax collecting authority for California, will make available as a matter of public record, each quarter, a list of the 250 largest sales and use tax delinquencies in excess of $100,000. There is an exception to the publication if there is a dispute connected with the tax assessment.
Sex offenders must publicly register; their whereabouts, therefore, are known to the general public. Forget about the concept that they've paid the price to society by serving time in jail; they forever more will be marked and tracked. Interesting that sales tax offenders may be treated in similar fashion.
Should we expand this idea to include income tax evaders? Will this encourage timely payment?
Too bad we can't do this with our delinquent clients who fail to pay our bills. It's unfortunate that the rule of confidentiality prevents us from publicizing laggard clients. Clever lawyers should be able to develop an alternative approach. See my book for several ideas to help you collect your fees without difficulty in the future.
Outsourcing - Offshoring
DuPont, if not the leader, certainly is getting most of the press about this hot issue. In a recent Business Week (September 18, 2006) article, it was reported that DuPont has combined with OfficeTiger (with offices in the Philippines and India) to cut its legal expenses.
Continue Reading...Planners Make More Money
USA Today Snapshots (November 15, 2006) reports the results of a survey about companies that create a strategy for their future. 70% of those companies with a formal strategy in place report better performance than their competitors ... compared with 27% of those companies without a formal strategy.
And an equally shocking result: 95% of the companies don't tell their employees what that strategy is! This latter statistic is confirmed by a Stephen Covey commentary.
Continue Reading...Bank insured accounts
Have you wondered how much insurance is available for your bank deposits? Despite the FDIC promotions over the years to the effect that we have only $100,000 coverage protection, we can have more than $100,000 insurance coverage.
Continue Reading...Fee schedules are legal!
Fee schedules have been outlawed for many years, since the matter was decided by the US Supreme Court in the 1960s. But, I have just learned that the US Government, itself, uses a fee schedule in arguing for or against fee applications (where “fee shifting” to the “prevailing party” for “reasonable attorney’s fees” is permitted by statute) and in deciding what to offer outside counsel it employs on various matters.
Getting What You Paid For
Two new books, reviewed in today’s USA Today, give us tools to do better, both for our clients and for ourselves:
The first is Unscrewed: The Consumer’s Guide to Getting What You Paid For. The astounding conclusion of the author flies in the face of everything I’ve been taught. Ron Burley says that the reason we get such lousy service today is because it’s cheaper to get new customers than it is to keep current customers! His statistic cited to back him up: The average call to the customer service department of cell phone companies is $20; the marketing cost to attract a new customer if $4! Then, Burley moves on to discuss techniques to make companies pay attention to you and to make good on the quality promises they make.
The next book reviewed is The Speed of Trust: The One Thing That Changes Everything. Here, Stephen M. R. Covey, son of Stephen R. Covey, author of The 7 Habits of Highly Effective People. Covey says “Trust means confidence ...” and confidence is the glue that makes everything else possible. Covey continues identifying behaviors that engender this trust:
1. Talk straight
2. Demonstrate respect
3. Create transparency
4. Right wrongs
5. Show loyalty
6. Deliver results
7. Practice accountability
8. Keep commitments
These are characteristics that make an interaction profitable as well as enjoyable.
Growth and Profitability Are Keys to Success
Q: Q: How can I make my practice more profitable?
A: Businesses grow and become successful based on the growth of their customers. If you’re blessed with good fortune, you attract clients who grow, need more of your services as well as refer others to you.
Continue Reading...Corporate counsel checking legal billings
Saturday’s edition of Wall Street Journal, on page B1, talks about Amtrak checking its lega