Doing business the "old way" must change or ....
Linda J. Popky, "The Marketing Master," recently had to completely change her diet in order to treat a persistent cough. She compared her experience to that of businesses suffering in today's economy. She says that they will need to change the way they do business, or suffer the consequences...
Continue Reading...The Little Black Book
In today’s economic world, marketing is more important than ever. The people who are bringing in business are the ones who are out there courting it. That’s why I am happy to share with you a special opportunity. For the next 48 hours only, my colleague Paula Black is offering a collection of FREE bonus gifts to anyone who purchases her latest book: “The Little Black Book: A Lawyer’s Guide To Creating A Marketing Habit in 21 Days.”
Designed to help lawyers integrate marketing into their daily lives, this book is quick, easy and inspirational. And by purchasing it within the next 48 hours you will receive special access to information and resources from more than 30 experts. A compilation of advice from some of the most sought-after experts in the legal arena, “The Smart Lawyer’s Toolkit” gives you instant admittance to an incredible collection of tips and information. Click here for details…but do it fast!
Preparing a case budget
Preparing a case budget is the subject of a recent article. Doing such a budget and getting the client to approve the budget goes a long way toward assuring that you will collect your fee as the matter progresses. And, if the client balks at the beginning, you know you will have difficulties. Then, the choice becomes yours ... whether to accept this client on a pro bono basis or go cycling ...
Marketing 101
If you're looking for some "simple, but smart" ideas to grow your practice, check with Tom Kane today.
Don't waste a good crisis
An innovator continues to invent even through a recession! In fact, those companies (and law firms) that do, come out the other side of the tunnel in a far stronger than before.
Fee or Free
A client of mine asked me whether he should charge a prospective client a fee for their initial consultation, the meeting before being engaged.
There are three approaches to this issue, long debated amongst lawyers:
1. Free initial consultation
2. Paid initial consultation
3. Paid initial consultation with the payment applied to the total bill if they engage you.
There is no one right answer or magic bullet in response to this question. Obviously, everyone wants to get something for nothing. But, we then also run into the bromide that "you get what you paid for." In this case, nothing.
Whether you can charge for the initial consultation is normally a question of the client’s trust in you, their confidence in you … and how long it takes to generate those feelings in the client toward you …
I don’t think “free” connotes expertise … and that’s what prospective clients are looking for. In deference to the current economy, and the need attract clients, you might consider alternative #3 ... charge them an initial consultation fee, and apply that amount toward the total fee in the event they should retain you.
This is never an easy choice. But, we must remember that people do believe they get what they pay for ... and anything free is usually viewed with suspicion either as to motive or expertise. A discount in an on-going relationship, however, is viewed differently and not to be confused with the issue at hand.
Do you know when you've succeeded?
The other day, I was cycling up Red Rock Canyon in Las Vegas, NV.
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I went from about 2500 feet to 4713 feet. En route, the road was rolling hills. So, sometimes I went down, but then there was an ascent next ... all the way to the top, about 7.75 miles from the start.
Before I reached the top, however, I was complaining to myself about how hard this ride was ... and whether I could complete the ride as I had intended. When I reached the final plateau, not having ever ridden there before, I was not sure that was the top. I thought there were more rolling hills ahead of me. I asked a couple of cyclists who were descending. When they told me this was the top, I was elated I had made it to the top, relieved that the pain of the trek was over and quite surprised at how hard I had fought with myself.
How many of our clients don’t realize or appreciate the success we bring to the table for them? What have you done to educate them about the process of your representation? I was fighting myself because I had never been in Red Rock Canyon before. Most of your clients have never been involved in the judicial process before. And even sophisticated clients with previous involvement don't truly appreciate what lies ahead. What have you done to show them a preview of what’s to come? What have you done to make their journey easier? What have you done to shine a flashlight on the road in front of them?
When you shine the flashlight, and they still agree to move forward, the likelihood is that they will pay you your full fee without question and promptly in accordance with your engagement agreement.
Use the flashlight!
Change creates opportunity
One could view the current situation with the attitude that whenever there is challenge (a much over-used word today), there is also opportunity. Certainly better to consider opportunities than feeling like a victim in constant pain.
Our new newsletter is now on the stands.
Lawyers sell all the time
In response to Tom Kane, I wrote the following:
Yes, we "sell" all the time. My definition of "marketing" is the process by which we persuade another of the merits of our idea. This comes in the context of persuading a judge or jury of our client's position; of persuading our supervising partner that we're the right person to work on a matter (in a large firm); of convincing a prospective client that we can get the result they seek. This is all marketing/selling. And we do it all the time. I even do it in my sleep when I seek to persuade my wife that I'm entitled to a portion of the bed when we move around. Marketing/selling is both conscious and unconscious. When we make it conscious, we have a better chance of succeeding.
Put your best billing foot forward first
Put a “positive spin” on the description of your services. I have been saying this for many years in the context of preparing your billing statements for work done for clients.
Continue Reading...Law firm revenue is decreasing
In this morning's session of large law firm managing partners, a group I've facilitated for more than 10 years, I heard hand-wringing I've never heard before. September 2008 was a watershed benchmark for revenue. Since then, revenues have decreased each month for many of the firms. There are only occasional rays of hope in certain practice areas. There seems to be a significant excess supply of lawyers. This is a significant change. As one lawyer cautioned, though, when the paradigm shifts again (as in the past), there will be an inadequate supply of experienced lawyers available to meet the demand.
How do you see the future both for the profession as well as for your own practice area?
Five cards and three feet
Years ago, a good friend, Denis Campbell, allowed me to interview him. He was an expert marketing director at a major law firm. His topic, titled Five Cards and Three Feet, was the inspiration of this week's vid-cast.
Make a plan -- Trust your plan
I recently returned from a week in the Santa Ynez Valley, CA area. The purpose of my vacation was to ride a bike with 35 others from around the world who were similarly enthusiastic about cycling, plus coaches and staff. The Amgen Tour of California started in Northern California and went south, passing through this area (Solvang, Los Olivos and surrounding communities). I watched the Tour’s time trial held in the valley. It was exciting to see Lance Armstrong and other elite cyclists pitting themselves against the clock to see who was the fastest.
Armstrong finished 12th in the time trial, one of his specialties before retiring 4 years ago. And he finished the overall Tour in 7th. In other words, in two races he's entered (the other last month in Australia), he's finished in the top 10 ... after only a few months of training ... and 2 competitive races! And he is 37 years old, an age past which most cyclists are not seen in competition. What a remarkable achievement.
From a psychological perspective, the man is unhappy at not finishing higher up the ladder, because he has such high expectations of himself. He has to continually be coached to greater success as well as to recognize his progress, to keep reality in place. His plan is working and is on target.
Trust the plan. Work the plan. Good advice for Lance Armstrong, a winner in all respects. And good advice for lawyers wanting to achieve greater success.
Prepare a plan. Work the plan. Trust the plan. Make adjustments where and when appropriate as you progress through the benchmarks of your plan.
Sour relationship?
When it's time to separate from your spouse, do you think of the cost of doing so? Certainly in community property states, one must. But, a New York firm has gone the extra step in removing the cost of lawyers out of the equation. 60 Minutes Divorce! A brilliant marketing tactic ... and one way to seize an opportunity offered by the sour economy.
Drop in legal revenues predicted
See the ABA Journal that predicts a 20% drop in legal revenues and a 50% drop in associate billings, spurred primarily by technology and client resistance.
There are opportunities in the market. Thinking optimistically may open you to them. Thinking pessimistically certainly will cause you to miss them. How much of today's firm layoffs is because of pessimism, not because of critical analysis of the firm's position and client (and prospective clients) needs? Like much else in the law firm environment, I suspect that this is much of a knee-jerk reaction rather than serious review and strategic planning.
I'm reminded of a statement from one of the recent TED speakers who said pessimism will certainly cause you to retract while optimism will at least allow you to see the opportunities, no matter how few, that are there. Seeing the opportunities is the first step to taking advantage of them.
Opening a Law Office
The California Guide to Opening and Managing a Law Office has just arrived! It's a 600 page power packed treatise that evey sole practitioner should review. It, along with the ABA's Flying Solo, is uniquely designed to raise issues that need answers for success.
Disclaimer: I'm responsible for two of the volume's chapters. There are many contributors and editors who have made this an outstanding reference work.
Client's name is confidential
Heather Milligan provides good advice to both lawyers and marketing folks. Before disclosing the name of a client anywhere, get written consent from the client. Apparently, Quinn Emanuel did not do this ... and is now being sued by the client. They allegedly disclosed what was supposed to be a confidential settlement as part of one of their promotional brochures. A definite "no-no"!
Continue Reading...
Alltop is watching us
I just found out that Guy Kawasaki's AllTop has recognized us and is watching us!
Life's Lessons from the Superbowl
Mimi Donaldson is a football fan (who knew?), but a major fan! She was glued to the television and, while the game was on, came up with the following life's lessons from the game:
Immediate need:
What do we do for money right now?
Here are 3 tips we can learn from last Sunday's Super Bowl to help us manage in these troubled times.
#1: FOCUS
Ben Roethlisberger, the winning quarterback, extended many plays with tremendous focus and presence of mind. Larry Fitzgerald, a brilliant wide receiver, turned the game around with a long touchdown run because he looked for an opening and never looked back.
Lesson – We need to focus on the value of our product and service, stay calm in the face of doubters, and look for an opening for success -- and never look back!
#2: INTERCEPTION
At the end of the first half, James Harrison intercepted the ball and returned it 100 yards (the length of the field) for a touchdown with the longest run in Super Bowl history. The interception changed the context of the game and shifted the momentum.
Lesson – This is not in the traditional job description of a linebacker (he needed oxygen afterwards). In our businesses, we need to do something different now; attend a meeting you've never attended; look for an opportunity in a non-traditional place.
#3 – WHEN THE WHISTLE BLOWS, THE PLAY IS OVER!
Santonio Holmes caught the winning touchdown. But he had dropped a sure touchdown pass just moments before. He begged his quarterback for one more chance – telling him, “Please let me get this game for you.” Each man respected the finality of the play before. They did not allow it to affect the next play.
Lesson – We need to shake off our past mistakes and the alarming economic forecast, and recognize that each moment is a new moment of now.
The Wage Gap Struggle for Women Lawyers
Anna T. Collins, Esq. (Portland, Maine) writes an article in The GlassHammer about the gap in compensation between men and women in the legal profession. Her issues are well-taken. See below for quotes from our author and coach, Ed Poll.
Continue Reading...Billable hours - again
Friday’s New York Times has brought light to a steamy debate in the legal community: Is billing clients by the hour the most effective and profitable way for a lawyer to collect his or her fees? In these recessionary times, this norm has become more unpopular. Clients are asking more questions and wondering if law firms are prolonging their problems instead of resolving them.
According to the American Bar Association’s Model Rule of Professional Conduct 1.5, “a lawyer shall not make an agreement for, charge, or collect an unreasonable fee.” Reasonableness is further defined by several criteria. Ultimately, though, what lawyers charge must be commensurate with the value their clients receive.
Expense reduction or investment advance
One of my law firm clients has a lawyer who is what I would call a "reluctant marketer." This lawyer is a great lawyer, a "worker-bee," but not a great rainmaker. The managing partner considered engaging a coach to help the lawyer improve his skills within his comfort zone. Why is this important? Because the amount of work for this lawyer that is being internally generated is lessening. In other words, this lawyer has to begin helping himself a bit.
Parenthetically, I saw a recent survey that shows the amount of hours being worked by lawyers, generally, is coming down. But more on that later.
But, the management committee has come back and said that "costs" are frozen. No more spending. Is this a backward way to look at the situation? What about looking at expenditures from the ROI perspective? If you buy a new piece of equipment and it pays for itself in a couple of months, wouldn't you move forward? I think you should. If a coach or marketing director can help the lawyer increase his/her revenue because of improved rainmaking efforts, shouldn't you invest in the process?
And what would this mean to the other lawyers? A reduction in their take home pay? When you're already earning hundreds of thousands of dollars, a collective reduction by only a few dollars in sdthe short run for an ROI building expenditure may be worthwhile.
A carriage builder in an automobile world!
“A carriage builder in an automobile world.”
That’s how one staff person described his boss, an attorney not willing to become an effective marketer, but yet believes he’s entitled to receive the same level of business that he has for years. He doesn’t understand that the world is changing, that practice areas once popular are no more and that he has to adapt or be swept out of the practice.
Corporate Counsel Want Value
Association of Corporate Counsel is workingon a "Value Challenge Index." Susan Hacktt, Senior Vice President and General Counsel for ACC, talked about the Index before the Los Angeles chapter of Legal Marketing Association today.
Susan made several significant points. One concerned the traditional allocation of revenue: 1/3 for overhead, 1/3 for associate compensation and 1/3 for partner income. The net result is that 2/3 of the revenue received by law firms is funneled toward attorney compensation.
Susan suggested that General Counsel, as lawyers, understand this formula and are therefore more resistant to outside counsel increasing billing rates. Lawyers wanting to earn more to move up in the AmLaw PPP (profit per partner) ranking isn't sufficient reason for the corporate client to pay more. And the rationale that expenses have increased is also not well received ... 1/3 of the firm's expenses may have increased somewhat, but the more sophisticated clients believe that the primary factor for increased expenses is increased associates' compensation. Since associates' contribution to the law firms' delivered value is suspect, clients are reluctant to pay increased rates. In fact, some clients refuse to pay for any first year associates' work on their matters.
Continue Reading...Unemployment Insurance Not Applicable to Lawyers
I came from an immigrant family as many people in my generation did, and still do. Growing up, my parents were involved in the labor movement and unemployment insurance was a big deal. In today’s context, unemployment insurance s hardly significant. But, don’t tell that to the many who are seeking this benefit and can’t crash through the long lines and busy telephone lines.
NPR did a piece today on what unemployment insurance is today and what it means.
Here are some statistics that I find fascinating, and which I did not previously appreciate. There are about 10 million unemployed workers, about half of them being in only eight states including California, Florida, Michigan and New York. There are millions more who don’t even qualify because they were self-employed or have been out of work too long ... they sort of get lost in the system.
There are seasons for lawyers
Some time ago, I wrote that lawyers have seasons in their practices. Today, I received a note from Lawyers Weekly USA in which they confirm that family law lawyers are saying that January is proving to be a boon month. While spouses didn't file for divorce in December because of the children and holidays, January is a different story ... and the stresses caused by the holidays are just too much to handle any longer. So, they file for divorce.
Bankruptcy lawyers may be facing a bonanza that goes beyond a month, or even a year, if our current crises are not resolved soon.
And on down the list. Each practice area has its own time of year. You've got to be sensitive to it and plan accordingly, both for your financial stability as well as your marketing efforts.
Continue Reading...The Question
The Edge Annual Question Center asks the question for 2009: What will change everything?
Profound question, indeed. And the answers are equally profound. Scroll down the pages and see the responses from the brightest minds of our time ... my head was swimming just reading the titles of the responses.
Thank you Matt Homann for bringing this to my attention.
Lowering legal fees
Clients seek to control the costs of their legal challenges. According to a study by the Association of Corporate Counsel, as noted by Larry Bodine, corporate general counsel do so in the following ways:
"The most common methods to control outside legal spending during the past year were: case/matter budgets (52.9%), discounted/alternative fees (52.9%), re-allocation of work to firms with lower rates (43.7%), billing guidelines/ spending rules (43.7%), and electronic bill reviewing and auditing (34.6%)."0
While reallocation of work seems to be an obvious choice, I've always wondered why more law firms don't do this. If you have several choices among quality law firms, why wouldn't you go with the less expensive? Perhaps because business is often based on relationships, and if there is a good relationship between client and counsel, the legal work may not go into play to find out whether there is a less expensive option available. This is often called "loyalty," the most desired state of affairs for vendor-partners.
From Big Law to Your Law
Carlolyn Elefant has created yet another e-book, available for free, and worth reading.
"The perfect crime"
Bill padding is the perfect crime, according to William Ross. There are many examples lawyers can point to in their own firms. However, there may be an element that some are overlooking. That is the obligation to "snitch" on one's peers if they suspect the practice is being committed by a colleague.
Obviously, such practices are difficult to detect by clients. The question is whether such practices can be detected by a colleague and then, if suspicion exists, what needs to be done about it. Must the lawyer report the suspected practice to the firm? Must the lawyer report the suspected practice to the client? Must the lawyer report the suspected practice to the State Bar disciplinary board?
Continue Reading...Social networking for lawers teleseminar
West LegalEdcenter will host our second teleseminar on the topic of social networking. David Nour, author of the new book, Relationship Economics, and I will talk about the new phenomenon being used to link with others and network with colleagues. Join us. Sign up now! The price is right - FREE.
Our financial fiasco and legal fees
Listen to Patrick Lamb, a prominent attorney and leader in the discussion of value billing and alternative fees. In our podcast, I asked Patrick to discuss the impact of today's crises on both legal fees and attorney compensation.
Time sheet records = Revenue billed
Complete your daily timesheets by day’s end. The best practice is to keep a running log of time (software-based or otherwise) of everything you do as you do it. Or, certainly before leaving the office that day. Even if your memory rivals that of the elephant, you will miss things if you don’t do this every single day.
One missed 10th of an hour each day translates to 23 lost hours a year. At $100 per hour, computing this time, without doing more work at all, will result in $2,300 additional revenue. That isn't much, but it's more than a good dinner. Increase these numbers by your actual billable rate ... and the time you actually don't bill, you will increase revenue by a very significant number!
Social networking for lawyers
LawBiz® facilitated a webinar about social networking and the benefits of this new technology for lawyers. David Nour, an expert on Relationship Economics, joined me in what the audience described as an outstanding learning experience. As the saying goes, it was like "drinking from a fire hose."
Substantially more than 100 people signed up and others contacted me with calendar conflicts. By popular demand, we will do our program again; we also will produce a DVD of this week's program; and my teleseminar with West LegalEdcenter on December 9th at 11 a.m. PT will bring David and me together again for another edition of social networking.
Stay tuned. Subcribe to LawBiz® Tips for current information as it is posted.
Law is a Business
The Business of Law® is not a generic term. In 1995, lawyers did not think they were in a business, let alone a service business. And I was successful in my application to register this as my mark. It has been my mark for more than 10 years.
Today, lawyers in the large law firms understand that law is an honorable profession, but is also a business.
Peter Zeughauser in the ALM Law Firm Leaders conference said that the AmLaw 100 revenues are $64.5 B. That’s BILLION dollars. And 3 firms account for 10% of that number; that “profits” (why are we talking about profits if we’re not in business?) increased 8.7% in 2008, ranging from a low of $410,000 to $4.95 million.
Law firm economics during crisis
During times of economic crisis, law firms need to be even more careful with the economics of their practice, according to writer Shannon Nelson of Law360.
Continue Reading...Social networking for lawyers - webinar announcement
Extend the Reach of Your Rain Making Using Web 2.0
VENICE, CALIF. October 14, 2008—Law management guru, Ed Poll, JD, MBA, CMC, and social networking guru, David Nour, will present a free webinar for managing partners and law firm administrators on October 28, 2008 at 12:00PM (PST). The webinar will show listeners how they can extend the reach of their business development activities using social media strategies such as LinkedIn, Twitter, Second Life, and Plaxo.
Webinar host, Ed Poll, is a nationally recognized management consultant who has helped to transform many law practices into profitable and successful businesses. Featured guest, David Nour, is a social networking strategist and author of Relationship Economics (Wiley, 2008). In this webinar, the hosts will show listeners how to develop a meaningful online presence on social networking sites that enhance online visibility and search engine ranking, modernize business development by bringing it into the 21st century and increase profitability.
This one-hour presentation will provide an overview of LinkedIn: the ultimate business-to-business social networking platform, and discuss how to create a content-rich profile that will position a law firm or an individual practitioner on one of the networking platforms to enhance prospective client outreach and provide quality information about the services offered.
Additionally, the webinar will discuss the best practices used by social networkers on how to handle stagnated relationships, unanswered requests, unsolicited invitations and how not to abuse the system. Content covered in the webinar will also include the more advanced strategies of social networking, including advanced search techniques for a more targeted effort, turning answers into alliances, knowledge management, and the value of premium memberships.
For more information on how to register for the webinar, held on October 28, 2008 at 12:00 PM (PST), please visit www.lawbiz.com.
About Ed Poll
Ed Poll, JD, MBA, CMC, is a nationally recognized expert in law practice management. He helps attorneys and law firms increase their profitability, consulting with them on issues of internal operations, business development, and financial matters. Ed brings his clients a solid background in both law and business. He has 25 years experience as a practicing attorney and has also served as CEO and COO for several manufacturing businesses. In 1990 he founded LawBiz® Management Company and is now focused on coaching, speaking, and training law firms.
Ed is the author of numerous publications that have become the definitive works in the field and has just released his newest book Law Firm Fees & Compensation: Value & Growth Dynamics (LawBiz® Management Co., 2008). He is also a columnist for the Association of Legal Administrators and contributes the “LawBiz® Coach’s Corner” to Lawyers Weekly.
About David Nour
David Nour is a social networking strategist and one of the foremost thought leaders on the quantifiable value of business relationships. In a global economy that is becoming increasingly disconnected, BeOne Now is solving global client challenges with intracompany, as well as externally focused, Strategic Relationship Planning™.
David is the author of Relationship Economics (Wiley, 2008) and What Every Entrepreneur Needs To Know About Raising Capital (Praeger, 2009), a senior management advisor, and a featured speaker for corporate, association and academic forums, where he shares his knowledge and experience as a leading change agent and catalyst for Relationship Economics® - the art and science of business relationships.
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Honest Lawyers
Confidence makes the world go 'round. In our current financial crises and credit restrictions, one lesson becomes very clear: Our financial markets require the confidence of banks and the public that loans will be repaid and that the extension of credit is safe. Until our public regains that confidence, the markets will have difficulties and the NASDAQ will continue to slide downward.
So, too, people must have confidence in their lawyer and the honesty and trustworthiness of their lawyer. What has our profession come to when a lawyer must promote his honesty?
Law Firm Marketing During Crisis & Chaos
During an economic crisis, yes, some call it a depression, Heather Milligan has some cogent ideas to market your practice:
- What are your clients’ key industry pubs reporting on today? Understand how the financial markets impact their companies.
- If your clients/referral sources are at risk, call and see how you can be of service to THEM. Not just their companies, but THEM. If their company is on the brink of collapse or bankruptcy, their first concerns will be about putting food on their table, not who is handling the filings.
- Face time. Face time. Face time. You need to be, and stay, top-of-mind with your key contacts.
- For we marketers, time to start thinking about clearing our budgets of “unnecessary” items. Now might not be the best time to kick-off a rebranding campaign or overhaul the website. I’m not going to ask for a high-capacity color laser printer right now. End-of-year charitable contributions/tables-of-ten will soon be reaching your desks. How are you going to evaluate them?
Three Lenses for Law Firm Recession Survival
The days of multi-million dollar profits per partner and rapidly rising triple-digit associate salaries were never real for most law firms, especially when considered in light of the demographic of law - more than 70% are in small law firms. But, now firms big and small, conservative and highly leveraged, all feel the business pressure from the economic downturn.
Big Law and the "Value Revolution"
On September 26th, ACC is planning a live webcast seminar to introduce its "value revolution," designed to teach about lowering large law firm fees to corporate clients.
Continue Reading...Gaming the system
The WSJ, August 26th, front page, discusses law school rankings ... and the ability of school deans to "game" the system used by U.S. News & World Report to rank law schools. This reminds me of the accounting adage, "Figures don't lie, but liars figure."
Continue Reading...Competitive intelligence
Does more information become competitive intelligence ... or just more information? Read Ann Lee Gibson at her new blog only if you want to learn more, i.e., become more intelligent! Congratulations to Ann for a great start.
It's the economy, stupid!
Famous words. And the legal community is beginning to feel them.
Continue Reading...Marketing department layoffs - same as lawyer layoffs?
Is there a connection between marketing department layoffs and associate layoffs?
Continue Reading...Surveys of law firm clients
In our Managing Partners Roundtable discussion this morning, we talked about the effect and value of surveys. Not enough law firms ask their clients "how am I doing?" Too often, marketing gurus suggest that written surveys be sent in the mail after a matter or litigation is concluded. I suggest that this is the wrong time ... no matter what you learn from the responses (and in my experience, you won't get many responses, probably not even a statistically valid amount), it's after the fact. That means that you will not be able to salvage that client relationship if there is real dissatisfaction!
One of my clients taught me an important lesson: Send a short survey with the first billing. If there is anything wrong, it's best to know at the beginning when you have time to correct any deficiency.
Most lawyers are reluctant to ask the question. They're afraid of the answer. But, what better result could you get than to be told there is something that you can correct ... and thereby strenghthen the relationship when you do. The client feels appreciated and heard ... and recognizes that you care enough to ask and to make a change.
In larger firms, we concluded that it is very beneficial for the managing partner to periodically visit the top 10 clients of the firm. Even when I was in industry, the fact that I as CEO cared enough to visit a customer had a dramatic impact on our relationship and the buyer's/customer's goodwill toward us.
Bottom line, we don't exist in a vacuum. We must understand and know the needs and wants of our clients ... and what better way to find than to ask, directly. In addition, this process confirms that the relationship is between the client and the firm, not an individual lawyer in the firm.
Obviously, there was much more said this morning, but this concept caused the managing partners to vow to make changes in their firms. What are you prepared to do in your relationships?
JDSupra - another networking opportunity
I have now joined JDSupra. See my profile.
The organization is designed to gather documents used by one lawyer that the first lawyer is willing to share with another lawyer ... this is a great way to find a starting point in a practice area in which you are not well versed. It may even be a great way to find a good format and content to use in your matter/case that someone else has used in another, similar matter.
Years ago, when practicing law and as chair of the Beverly Hills Bar Association's Family Law Committee, I organized and chaired a stellar group of family law lawyers to create and edit a Bar/Bench book with forms that the trial judges were using in the Los Angeles Superior Court. It was called The Billy G. Mills Bench Book. Judge Mills, at the time, was the presiding judge of the Family Law Court. The joint effort produced an outstanding work that helped many lawyers address the concerns of the Bench for the benefit of clients.
Today, JDSupra is using technology to produce an even greater result for attorneys seeking the right form at the right time to be more efficient and avoid rifling through files to find that elusive document that they remember seeing, but just can't find right now, the moment of need!
JDSupra will also introduce content that I will produce for law firm management. We hope to provide an ever broader platform to help lawyers become more effective with their clients, more efficient in the delivery of their legal services and more profitable for themselves, the objective of LawBiz Management.
Notice of Unavailability
Someone asked what I think of an attorney charging a client for work done while he/she is on vacation?
The comment, specifically, was: "Attorneys do need a vacation... what do you think about attorneys that (sic) file Notice of Unavailability and charge clients for work performed while on there (sic) vacation."
Wherever and whenever an attorney performs legal services, he/she should be able to charge for the work done so long as it is in compliance with the engagement agreement. There is normally no exception for work done for clients while on vacation or after "normal" business hours. So I don't see any problem here, unless there is a subsidiary inference that the attorney is not truly working or working at a slower pace than would have been the case if he/she were elsewhere.
As an additional point, I believe (as I've said quite some time ago) that the attorney has the right to charge the client for preparing and filing (and even appearing in court thereon) the Notice of Unavailability. But for the notice, the attorney might have to spend much more time defending against notices/motions if the adversary takes advantage of the attorney's absence on vacation ...
Social networking for lawyers
Nick Abrahams, chair of the Sydney, Australia office of Deacons, which has branches throughout Asia, discussed his firm's survey on technology.
The survey, among other things, that "If you’re over 35, you're the loneliest person on Facebook because only 1 percent of workers in that age group are using it." But a quarter of the survey respondents between 25 and 34 are on Facebook, he said, and for workers under 25, the rate of Facebook users increases to a third of those surveyed.
It is still early to discern how the new social networking sites will impact a law firm's marketing efforts; but, it is clear that these sites will not disappear in the new future ... and lawyers will need to pay attention to whether these sites can benefit them in the market places in which they operate.
I don't think we've yet got to the "tipping point" in this phenomenon, though we seem to be getting closer and closer with ever greater speed.
The Power of Nice
Unlike Leo Durocher's famous statement that "nice guys finish last," she believes that "nice girls finish first." After all, she asserts, people like to buy from people they like ... And we generally don't like people who are not nice to us. Kaplan says it's easier to be mean and gruff. It takes a special effort to be nice. Paraphrasing a saying my mother used so often, "You get more with honey than with vinegar."
This seems so obvious to me, but obviously is something that our profession finds so difficult to understand. Many Bars have adopted "Lawyer Civility Codes." Why should this even be needed? Quoting an infamous source, "Why can't we all just get along?" Why is it that we need be rude and obnoxious to our adversaries? Do we truly believe that such conduct will win us points or cause our client's position to be moved forward? On the contrary, such behavior often merely entrenches the opposition further. Being nice, courteous and kind requires neither that we be a doormat nor that we cave in to our adversary's position ... we can stand forthright to advocate our client's interest and position, yet still be civil and nice.
Again paraphrasing, "Try it, you might like it." Certainly, there will be reduced stress all around.
P.S. This works with colleagues and staff as well.
Is marketing working for you?
That’s a pretty broad statement, yet lacks simplicity and directness. This may be one reason why the seat at the table is still denied to many who claim the title “marketer.” Continue Reading...
Never say no to a prospective client
The Future of the Law Firm
There is no simple conclusion. But one element may very well be that clients (General Counsel) feel pressure down from their CEOs and Boards of Directors. They need to be more price and cost sensitive. Partners in larger law firms, on the other hand, want larger compensation packages for themselves in order to be seen as peers of the CEOs who are earning far more than in the past; lawyers do not want to be seen as vendors, but as peers ... and frequently compensation is a factor in this perspective. Of course, it's hard to be a peer with a CEO whose average compensation went from 4:1 to 17 and even 34:1 between him/her and the average employee working for him. And it's a bit disingenuous for that executive to say that lawyers' fees are too high. Even in companies whose stock is falling, or whose profits are falling, it is rare to see the CEO offering to reduce his/her compensation.
Here are some of the key findings of the research report and my thoughts related thereto:
If all else fails, sue!
Likewise, in our law practice. Clients get angry with us, they have financial reverses, they didn't get the result they expected or, for some unknown reason, they just don't pay their bill. Can we do something to avoid this situation? More so than with weather, the answer is "yes." We can be more proactive in both our intake session --- setting reasonable expectations --- and we can be more vigilant monitoring our clients' behavior after our billings are mailed, making sure we get paid for work we do or we stop working before the client will be prejudiced by our cessation.
I discuss some of these scenarios in my book, Collecting Your Fee: Getting Paid from Intake to Invoice, which is mentioned in today's LawBiz® Tips alongside my article, "If All Else Fails, Sue."
Double billing - A new twist
There is a new twist raised in these cases. Under the "double billing" phenomenon, a lawyer cannot bill two clients for the same minute of time. When using the hourly billing system, you can bill only one client for each segment of time to be billed. In other words, when waiting in court for a matter to be called, and billing client A for that time, the lawyer cannot bill client B for that same waiting time though he/she is doing other work for client B pending the call of the court. Or, while charging client A for travel time, the lawyer cannot charge client B for working on his matter on the plane.
The new twist is that lawyers in two law firms were listed as employees of the New York State's pension funds. This gave them retirement credits from the funds even though they either did no work at all for the funds or were gainfully employed and paid by the law firms, not the funds. This takes "double billing" to entirely new level!
What should I consider when raising my fees?
Budgeting for Success
AVVO runs into roadblock
"Who’s licensed to practice law in Illinois? None of your business.
That’s what the state Attorney Registration and Disciplinary Commission has told a Seattle company that wants to post the names of lawyers on the Internet and assign grades based on performance, awards, experience and disciplinary records.
Avvo (listen to our podcast interview with Mark Britton, CEO and Founder of Avvo, Inc.) has posted information online about lawyers in more than a dozen states. The company, which started its Web site a year ago, says it has received lists of lawyers from 30 states. Illinois, however, has balked.
Unhappy client?
Many lawyers, unfortunately, never figure out that their client is unhappy. They just think that the client has no additional legal work. They don't realize that the client was so unhappy that, though they didn't complain, they just didn't return! What a shame not to have the sensibility to even know this.
Law is subject to economics - duh!
Legal fees seen as "nickel and dime"
Lawyers will find a loophole
The rule is flawed, as I’ve argued in more than one past post. Since lawyers are skilled in finding loopholes, I suspect that this new rule will be honored in its breach ... and therefore not provide meaningful protection to clients.
There are creative alternatives the 30,000 sole and small firm lawyers impacted by this rule may take to avoid the intent of the Board and its new rule: Continue Reading...
Client Relations in a Changing World
Lawyers can't sell
This week, in consecutive phone calls, I was hired for two separate, large engagements. I’m excited about both of them. And in the process, the teachings of my father many years ago came to mind. Stay by the phone. When the phone rings, and you respond, you will be hired. But, if you don’t respond, you won’t be hired. This is similar to the adage that if you don’t swing the bat, you can’t hit the ball. Marketing efforts are designed to make people aware of us and to encourage them to call.
A corollary for me was that I can’t “sell” anything to anyone. I can only hope to make people aware of my skills and availability. If they have a need, and they know who I am, they will contact me to discuss whether my skills match their needs. It is always the buyer who makes the decision, not the seller. With this mind set, then, the “seller’s” obligation is to educate the buyer about the value of the services provided and the benefits to be received ... not the “features” being offered by the seller.
These are lessons learned early in my career that I believe still resonate today.
Lawyers should go where the business is
It's time to stop focusing on real estate, construction, banks, mortgage companies and airlines, according to Larry Bodine. Go where the money is: energy, steel, industrial metals, coal companies and railroads. See the 10 Best Performing Industries on MarketWatch.com.
This reminds me of the book written by Harvey MacKay, Dig Your Well Before You're Thirsty or the phrase "... fish where the bass are..."In other words, provide services that your clients need ... If your skills are no longer in hot demand, modify your practice area to adapt your skills to the needs of the clients. If you're in the larger firms, and are practicing real estate law currently, you might be better advised to learn bankruptcy or workouts to adapt your current skills to the needs of the clients. If you're in a small firm or sole practice, this might be more difficult to accomplish with less personal economic impact, but still possible.
The key is to either provide services the market needs ... or to have the capital to sustain the wait until the market comes back to your skills.
Law Firm Fees & Compensation
He says, "
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."
Legal Fees: Could you afford you?
Because our “new” vintage Airstream is still being built and our “old” vintage Airstream was totaled from our December accident, we could not stay at the rally, but had sleeping quarters about 10 miles away, a short car ride. To get there, we had a short stint on Highway 550, a heavily trafficked thoroughfare in the area, so I’m told. As we got close to our destination, I noticed the highway was streaming with police. It looked like a major car accident; as I got closer, it looked like a disaster. I could tell the roadway had been narrowed by cones and police cars into one lane. And as I approached the head of the line, a policeman approached me. Suddenly, I realized that I was in the middle of a road block!
Continue Reading...
A Note Beats a Link - Hands Down
Professor Alan Childress of
Social networking - Even for Airstreams
How about going to a Vintage Airstream Rally with no Airstream? Continue Reading...
Will lawyers adopt to social networking?
In a recent article by Larry Bodine, he cited the following statistics: Less than 8% surveyed believe social networking is important to them; 91% said they spend less than 25% of their online time working with social networks. Still, these are rather large numbers to be devoting to a networking process that is relatively new ... As with other technologies, we will have to wait and see if this takes hold.
Continue Reading...
Billable h ours on the way out?
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.
Is the billable hour a trap? A contrarian perspective.
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.
Continue Reading...
LawBiz® Tips
What do successful law firms have in common with successful basketball teams?
Are there any lessons to be learned from this excitement for lawyers and law firms?
Continue Reading...
LawBiz® Tips now posted
Law Firm Fees & Compensation
Learn why legal fees and compensation are integral components of the same dynamic!
Staff identities on your web site?
Continue Reading...
Lawyer branded!
Sales attorneys in the offing
Law firm profitability - Lessons from basketball
For me, this is reminiscent of the discussion I had recently with a client who asked me to do a profitability analysis of her firm She and her partner believed that the expenses of their small firm were too high My review of the data indicated that there were areas where reductions or revised characterization would be relevant. For example, several capital expenditures could be removed from the expense side of the profit and loss statement and recast as assets; a management fee could be removed or recast as a draw by one of the partners because such a fee is inappropriate for a small firm. However, the real focus for this firm should be on increasing its revenue. That would have the most dramatic impact on the performance of the firm. Recasting the expenses would not change the cash flow of the firm, but would help generate the mental toughness confidence that they are not in terrible shape, that they could succeed, and provide the mental toughness to continue seeking the appropriate client base to generate increased revenue.
Looking at the relevant data helps remove the fear of failure, engender confidence that small changes in one's own behavior can have large impact on one's success, and bring the realization that success is just around the corner.
LawBiz Tips published
Also, I talk about dreaming having a poor ROI. What does this mean for the law firm? Read LawBiz Tips and learn my approach.
ABA Tech Show pictures
We went to dinner while in Chicago this last week and she took several photographs. Here are two of them that are listed on Facebook, one of the sprouting social networks. One should be careful what is placed on internet boards such as this ... This entry is sedate and trustworthy. This is the first posting for me, excluding our Airstream trailer, of photos on this site.
Marketing fee stability
The Red Zone of Your Career
Karen Mathis, immediate past chair of the American Bar Association, focused her year on developing a new awareness for the legal profession. She said recently that 400,000 lawyers will retire in the next 10 years. That’s the entire current membership of the
Open Letter to the American Bar Association
However, as the Executive Director of the ABA, Henry F. White, Jr., at the ABA’s Solo Caucus in Los Angeles’ Mid-Year meeting, February 10th, said, “At the end of the day, it’s all about money, despite the goodness.” He, and his fellow panelists, M. Joe Crosthwait, Jr. (moderator), Karen J. Mathis (ABA immediate past president), and H. Thomas Wells, Jr. (ABA president-elect), were preaching to the choir. Continue Reading...
Challenges facing sole practitioners
- Income fluctuations
- Managing the practice
- Lack of help in the practice
- Isolation from other attorneys
- Inability to discuss ideas with colleagues
Continue Reading...
Are you still in love with your business?
He gives us 3 steps to follow if we love our practice ... and 3 steps, if your answer is "no," to fall back in love with your business.
Professionalism vs Competence
Respondents said "yes" (15%), "no" (84%) and "don't know" (1%). It is clear that people are tired of bombastic behavior, at least in the workplace. Can this be translated into a more collegial, and team-oriented work environment?
Patrick Lamb, a leading proponent of "value billing" has certainly committed himself to the concept of team effort. He opened a new practice with two other partners in January 2008. Collegiality, outstanding client service and billing for value delivered (not time spent) gets promoted one step at a time. Patrick has taken that first step in his new firm. Congratulations and best wishes for his continued success.
As more lawyers succeed in this business model, perhaps others will follow. Then, perhaps, will civility in the profession be achieved.
As a side note, I'm currently reading (actually, listening) the recently published book about Lincoln and his leadership skills. I'm struck by the number of lawyers who were the leaders of our country and the large percentage of our representatives in government (House of Representatives, Senate, and State legislatures) who were lawyers. At one time, the balance substantially exceeded 50%. Contrast that to today when only around 25%, if that, of these bodies are lawyers. Perhaps the lack of civility in our society in general and the legal profession in particular, is the reason for the lack of faith in lawyers. I don't know the reason or the answer to this dilemma. But, I do know that many lawyers are stressed, are "burned out" and are unhappy with their chosen profession.
Given this history, I am quite surprised and pleased that 3 of the viable, now 2, Democratic candidates for President are lawyers.
Fraud by lawyers
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!
Facebook for Lawyers
- There are more than 63 million active users on Facebook
- Since 2007, Facebook grows by more than 250,000 per year
- There's been an average 3% growth annually since 2007
- Active users double every 6 months
One challenge, though, is how many of these professional and social networking entities can one participate in ... Consider, for example, LinkedIn, supposedly a primary business networking entity. And what about YouTube? One could spend an entire life in this new, virtual world ... and I'm not sure that would produce the best results. So, how does one choose?
Social & Business Networking
Christy Burke, a marketing and public relations expert in New York, has the following comment on this subject in a new article: "...If you have decided to start a blog, consider teaming up with another attorney to share the writing workload, hire a freelance writer to help you when you’re swamped, or stockpile a number of “canned” posts which are not time-sensitive and can be used when no news items are coming up in your field .."
There is nothing in the Rules of Professional Conduct to prevent this; there is nothing in the Rules to prevent another person from writing a brief to which you affix your name as the author (you are still the responsible attorney); and there is nothing in the Rules to prevent someone from editing your work. Nor is there a requirement that you disclose who assisted you in the performance of your obligations and work product. The point is to produce quality work, address the expectations and challenges of your clients, and earn a profit to be able to pay the folks who work for you and feed your family (that’s called running a business!).
Crisis management, and then some!
According to one source, crisis management statistics include causes that are outside of those traditionally thought about by law firms. But, in addition to Katrina, broken pipes, etc. think about the following:
About 53% of marketing executives responding to a recent survey by BtoB and Eric Mower and Associates, said they have experienced a business crisis that resulted in negative news coverage, declining sales or reduced profitability. About the same number (57%) reported that their company does not have a crisis response plan currently in place.
Of the 43% of companies that have developed a plan, 10% worry about their ability to carry it out, and only one-half have trained spokespersons ready.
Some 23% of respondents who went through a crisis said it took three months to a year for their brand to fully recover, while 13.3% said recovery took more than two years and 17.7% said they have not yet recovered after two years.
Causes for these companies' crises vary. A majority of survey respondents (55.7%) said layoffs, shutdowns or business foreclosures created the crisis. Some 45.2% blamed operational or services failures, 33% cited legal or ethical problems and 32.2% pointed to a competitive attack, such as negative word-of-mouth or messaging by others who have a vested interest in damaging the company.
Being Interviewed Successfully
Her main points are:
1. Return a reporter's call or email promptly
2. Find out what the reporter is interested in writing about
3. Know what you want to say and stick to it
4. Determine how you want to be identified
5. Be a resource for the reporter
This latter point is particularly important. Even if your name doesn't get into the story, the reporter will remember how helpful and prompt you were this time, and call you again! Being on a reporter's "call sheet" is gold!
Collecting Your Fee -- Sue As Last Resort
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...
Dress is part of the Courtroom drama
Casual day (turned into casual all the time by many) really doesn't have a place in the minds of many traditional law firms. And we're seeing a move back to traditional dressing standards. Only in certain areas of practice is it appropriate to dress "down." Otherwise, what Mom told us, "dress for success," really is true.
The Revolution is Coming -- Notes from the Corporate Side
My earlier post summarized their comments and included a few of my challenges to their concepts.
Susan has given permission to include her notes from their Power Point presentation.
The discussion has been joined. Please email your thoughts to me. We all will have a hand in the shaping of the future of our profession.
The Book Stops Here!
Publishing can be an important boost to one’s status and credibility. This is an outstanding method of demonstrating your expertise.
There are many examples of this in the legal profession. Today’s LA Daily Journal highlights one such example. In an article entitled “The Book Stops Here: Treatises Identify Firm,” the law firm of Miller Starr Regalia, a northern California real estate law firm, is featured. Their seminal work, the highly regarded Miller Starr California Real Estate Book, is known far and wide, even outside California boundaries. Since its first publication in 1965, the book has grown to 12 volumes and is highly regarded as an encyclopedia of California real estate law.
Not only does the firm receive a respectable revenue flow, more important benefits result. One is greater respect for all of its attorneys in the court room. After all, if your firm is the leading authority on the law and is cited by courts in making their decisions, you start with an advantage over your adversary. Also, clients want to be represented by the leading authority. Thus, their revenue is greater than it would otherwise be.
Think about what your expertise is, who your target market is and how you might best reach your market. Publishing is only one approach.
The Revolution is Coming - Where Will Your Firm Be When It Arrives?
ACC, at its annual meeting in Seattle, WA in October 2008 intends to roll out an effort to relate law firm billings to client perceptions of value. To some degree, the panelists suggest that they seek to roll back the clock 40 years, when there was a “professionalism” about billing, a stronger and more effective bridge of communication between the client and its relationship partner at t he law firm and less emphasis on increased profits per partner. ACC is not quite sure how they intend to get there nor what the “it” will look like. But, the discussions with stakeholders has begun. And the ride promises to be interesting, to say the least.
Continue Reading...
Retirement: Is this the new four letter word?
Continue Reading...
Do you want to grow? Then "outsource!"
Q: Ed, can Outsourcing really make a firm more productive and profitable?
Law Practice Development
Q: Ed, do you have any fresh ideas about how I can market my law business?
A: There is no better way to establish effective prospect relationships than by establishing a presence for your firm or your practice at industry trade shows and association meetings. By properly researching and targeting your audience, you can meet more prospects in one day than you might otherwise meet in months. And by physically being present at these meetings of potential clients, you demonstrate that you know their business, understand their concerns, and are serious about offering solutions.
Continue Reading...Social Capital - How to invest
Follow up to lawyers blogging
Another article in this edition concerns the changing landscape of the legal profession and outsourcing, written by me.
Do blogs work for lawyers?
Ed, you’re an avid blogger—I read LawBiz® Blog all the time. I’ve even contemplated starting my own blog. What could blogging do for my private law practice?
Canadian lawyers share best practices
Lawyers fees compared to the value of those fees
Rees Morrison observed, "Certainly no law firm can hazard more than a guess on the worth to a particular client at a particular time of its 10 paralegal hours, 20 associate hours, and 8 partner hours on a revision of a major sublease. For much that law firms do, value and cost are incommensurable."
I agree with Rees when one looks backwards. However, if one reviews the matter with the client before the engagement actually begins, the client generally will be able to assess the value to him/her/it. At that point, the law firm and client, together, should evaluate whether the anticipated service can be delivered for a fee that is commensurate with the value delivered as perceived by the client.
Budgeting for the matter, with the involvement and concurrence of the client, will go a long way to establish both the value to the client and likely fees the law firm will charge.
In this discussion, we must be careful not to equate the result for the client with the value because no law firm can guarantee the outcome.
Malpractice Insurance Disclosure Sent to Committee
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...
Thinking outside the pumpkin
Disaster preparedness - Business continuity
While making a presentation about recovering from disasters to the Association of Legal Administrators national conference for financial issues, (see my latest book, Disaster Preparedness & Recovery Planning) I listened to another presenter talking about the insurance aspects of disaster. She noted some frightening statistics: More than 40% of all businesses never reopen after they experience a disaster; of those that do open, more than 30% fail after two more years of operation.
Continue Reading...Disaster plans impacted by technology
- 83% of medium businesses (more than 100 people) have remote or mobile workers
- That means that only 17% of such businesses have no mobile workers at all
- Lifestyles today blend work and personal activities with fluid boundaries between the two
- 15% of our workforce are telecommuters
- 23% of our workforce travel long distance
- 27% of our workforce travel locally
- "Anywhere solutions" can boost productivity and enhance the probability of recovery in the event of disasters
- New technology for unified communications, not yet a driving force, is generally reviewed, if at all, at the time of replacement or updates rather than as an independent purchase now
- One of the greatest challenges facing today's business is that information is lost or stranded within the head of one individual
That means that technology becomes even more important in the management of a law firm. Technology affects current law firm profitability and becomes essential for survival and continuity in times of disaster. In current terminology, "knowledge management" will be the backbone of the success and survival of a law firm. And knowledge management needs enhanced technology to be effective and readily available. As I've said before, I believe law firms of the future will grow or die based on their effective implementation of knowledge management.
Building Loyalty
Q: My practice is in a rut and I don’t know why. How can I attract more clientele—both old and new—as well as those who come from diverse backgrounds?
Mandatory Disclosure If No Malpractice Insurance
Q: As a sole practitioner, I’m nervous about the possibility that new requirements that lawyers must disclose in writing if we don't have malpractice insurance. How will mandatory disclosure affect my business?
Is Business Professional?
Q: As a lawyer who runs her own practice, it seems like everything I do revolves around trying to make more money. Is it professional to always be concerned about turning a profit? Or should I focus more on other things?
Law is a verb, not a noun!
"The organization of the future is a verb, not a noun." He continued by asking: "Who will own the stock of the organization?" He said that users will control the company; his examples include www.digg.com and other similar Internet operations such as "youtube" and "facebook." Yes, the stock of the company may be "owned" by one or two people, but the control of the operation is really in the hands of the users. He cited examples of where the users did not agree with a company policy and forced the company to retract its stand.
This is an interesting concept. I'm reminded of the phrase, "... the more things change, the more they stay the same!" I'm referring to the fact that, even in the "old days," the real control of a business was and is in the hands of consumers. Unless you have customers willing to purchase your goods or services, you have no business! Unless you have clients, there is no reason for you to have a law practice. Yes, you may technically "own" the company or law firm, but you will have no business ... no revenue ... without clients.
Thus, the clarion call: Treat thy clients as they would like to be treated, or you will have no clients! This is a paraphrase of Tony Alessandra's "Platinum Rule" of asking your clients how they want to be treated, or Ben Franklin's mantra, "... take care of the pence and the pence will take care of you."
Another way of looking at this concept is to suggest that law is a verb, not a noun; that law is constantly changing. Our courts, though they use precedents, constantly interpret the written word to mean something different in different times, always seeking to keep the law relevant to the day's values. In other words, the law changes or is a verb, not a noun.
At the end of his presentation, Bhatt observed that business used to be about putting together the puzzle. Seven steps to this, five steps to that, etc. We will see how this process orientation is no longer appropriate. We will be asked to solve the mystery, not create a process. And if/when we bring value to the table to help our clients solve their business mystery, we will be their colleague, their "partner " in helping them solve the mystery then facing their business.
Pretty sophisticated stuff ... and lawyers who can "get it," will remain the top lawyers of our profession.
Lawyers still don't get it
I am amazed at how many (a lot!) did not carry business cards with them. Don't carry business cards if you don't want more clients or more revenue!
And, of those that gave us their business cards, many still don't have e-mail accounts. To me, that is like not having a telephone number on your card. How is that possible in today's world? Again, only if you don't want more clients ... and if you don't want people to contact you.
Put in positive framework, make it easy for people to reach you ... make it easy for people to do business with you. They, generally, will not go out of their way to do so.
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...When is a lawyer also a doctor
This is an interesting, though not earth-shattering, topic.
LawBiz® Tips redesigned
| Venice, CA 90291 | September 25 2007 | |
| Law Practice Management Tips and Business Secrets to Arrive Weekly VENICE, Calif., September 25, 2007—Law business growth and management consultant Ed Poll announces the release of the new version of his free eNewsletter, LawBiz® Tips, that has a fresh updated look and is presented in a modern HTML design. Arriving weekly instead of monthly, this version offers a new twist on Poll’s already famous advice for lawyers on how to make running a law practice easier, less stressful, and more profitable. “As readers will notice in the very first issue, the new newsletter has a high value content like the old one but is now delivered in more ‘bite-size’ chunks,” says Poll, founder and president of LawBiz Management Company. Poll practiced law for 25 years, was the CEO and COO of several manufacturing businesses, and has been a consultant to small and large law firms for 15 years. “I’m excited about our new format and hope readers will find it more enjoyable.” The average issue will feature one article that focuses on a critical aspect of the reader’s law career and business, whether it is low-cost strategies to improve marketing, managing, selling, client management skills, account keeping, or employee relations. The newsletter will also cover some of the personal issues lawyers who run their own practice might feel uncomfortable discussing, such as how to improve relationships at work or what to do with a partner who is not pulling his or her weight. And just like the old newsletter, this one will still feature Ed’s own personal commentary, updating readers on upcoming speaking engagements and family news. In each issue subscribers also get: • Access to free gifts and special offers • Announcements of special events • Discounts on Poll’s CLE products and coaching • Their privacy protected. Participants can unsubscribe anytime. The first issue that was released today discusses why law firm managers should focus less on making money themselves and channel that energy into being a better leader and decision-maker for the firm as a whole. To sign up to receive this issue and many more, please visit www.LawBizTips.com. To schedule an interview with Ed Poll, or to find out more about his law business consulting and coaching, please contact Carolyn McKibbin at 617-230-4886 or Carolyn@ictusinitiative.com. ### |
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| Carolyn McKibbin (Carolyn@ictusinitiative.com) Public Relations The Ictus Initiative 343 Commercial St Boston, MA 02109 Phone : 617-230-4886 |
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Starting a Practice -- Lessons to grow
Law firm marketing truth
I appreciate the opportunity he gives me to expand my thoughts on this subject further. What follows is my response to Scott:
I truly enjoyed reading your comments on what I did not say; quite amusing. I think, however, that you miss the true value of blawging (blogging). It is to convey value, to convey information and to convey help to the reader. Oh, yes, it can be to vent and it can be to journal, but that was not the context in which I made my comment. Lawyers use the blawging process to communicate their existence to the world - to express their expertise so as to make prospective clients aware of them ... and, hopefully, to become clients. If this is true, and I believe it to be and can point to many examples, then it is a marketing tool. Just as large firms have marketing and business development departments, producing quality material that may or may not be written by attorneys (but for which the attorneys/law firm are responsible), so to can blogging be performed under the direction of an attorney though not written by him/her.
Attorneys do not do everything done in a law firm. That doesn't make the information or the service a "scam." There are trial briefs written by paralegals -- is this a scam? There are deposition summaries written by paralegals -- is this a scam? There are many things done for lawyers under the lawyers direction/responsibility that provide benefit for clients .. and enable lawyers to more effectively market their services to new prospects.
Take this out of the context of the law office, there are many books written for famous people that appropriately convey the intent and meaning of the "author." Are these scams? Does the public not get value in better understanding the character and message of the famous person? Lee Iacoca is one that comes to mind quickly. We learned a lot about him, his life and his message ... though he didn't write the book himself.
Blogging is not the last, great American novel ... it is a business tool. As such, one can take a business-like approach to its application. Google certainly does, so I'm not sure why you don't.
Again, thanks for writing about my belief system and allowing me the opportunity to expand on it a bit more ... though I certainly didn't say all the things you said I said. <g> Continue Reading...
MCLE provider renewed
FOR IMMEDIATE RELEASE CONTACT: Ed Poll
LawBiz Management
(800) 827-5415
edpoll@lawbiz.com
LAWBIZ® EXPERT RENEWED AS PROVIDER FOR LEGAL EDUCATION
Ed Poll Was Renewed as an Approved Provider of Education for California Lawyers
Venice, Calif. September 13, 2007 – California-based law practice management expert and lawyer Edward Poll was once again approved as a provider of education for lawyers licensed by the State of California for the term of September 1, 2007 to December 31, 2010.
Continue Reading...
Ept managers & gruntled employees produce minishing profits
Associate lawyer compensation: Have we yet hit the vomit point?
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!
Continue Reading...
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."
Continue Reading...
Lawyers can learn how to use the speaking platform
What's in it for you? There are many reasons, but here are three:
- Enhance you uniqueness in business strategy and leadership to enhance your bottom line.
- Learn the 6-step formula for proven goal setting and high achievement, plus how to have more fun and take your practice to the next level.
- Discover five simple questions you can ask informally that can teach you so much about other people and make them feel important.
Law IS a Business
Being effective with clients, efficient in the delivery of services to clients and therefore more profitable, we are actually protecting the public by providing sufficient resources to the lawyer to feed his/her family and therefore have no need to invade the trust account funds.
To say that law is a business, a service business, is not to deny that it is also a profession rooted in the highest ideals from the very beginning of our country. Continue Reading...
Law firm marketing: Seek benefits to clients, not features of the lawyer!
Lawyers have a very difficult time truly understanding what we (lawyers) provide to clients. Clearly, this is not easy for most of us. Saying "we provide solutions" is not sufficient.
Because of this, it is difficult to differentiate ourselves from the other 1 million lawyers in this country! As the legal profession matures and lawyers come to fully understand the business-like qualities of professional service providers, being able to state the differentiation in ways clients understand may be one key to economic survival.
Law Blogs have arrived!
NY advertising prohibition rules reviewed by court
" ... In Alexander v. Cahill, the U.S. District Court for the Northern District of New York analyzed the lawyer advertising and solicitation rules adopted by the Appellate Division of Supreme Court effective February 1, 2007. The Court upheld many of the rules, but did find some portions unconstitutional as protected free speech under the First Amendment. The decision is available online at www.nysba.org/AttyAdvCourtDecision. ... "
New York Bar committees will review the issues further in light of the Court decision and, thus, the rules are still in flux.
Lawyers can't sell -- Why not?
Productizing Your Law Practice
Join me in our next West LegalEdcenter teleseminar on July 18th -- 11 a.m. PT / 2 p.m. ET.
Practice management for lawyers -- Blogging lessons
Marketing vs Sales
Get a job by blogging
How to productize your law practice
It shows the creativity of this young Philadelphia lawyer. My hat's off in admiration for what, based on the book store's display, is quite likely to be a very successful venture and great marketing ploy.
Blogging for money -- ethical?
Lawyer advertising rules again revised
Florida, one of the most restrictive States in the country, follows New York's recent changes.
Advertising
Thank you, Monica, for focusing more lucid comment on the advertising issues presented by the recent New York State Bar regulations.
I particularly like the focus that the Bar's energies seem to be inward-looking. As lawyers should be looking at the needs and wants of their cliens/customers, so should the Bar ... looking to the needs of its customers, lawyers. While the Bar's responsibility is to protect the public (from lawers?), the Bar also owes a responsibility to its members. Creating unmanageable requirements is not the way to protect either the public or the members/lawyers.
Law firm coaching for client care
One doesn't have to go that far ... just look at your State Bar's disciplinary system reports. The number one complaint, by far, from clients is the lack of caring --- said in many different ways such as failure to return phone calls --
If lawyers want to stay in business, let alone become profitable and continue to grow their practices, they need to pay better attention to the needs of their clients and respond to their wants.
Lawyer advertising exposed
New York is not alone. See new rules in Kentucky. Other rules already exist in Texas and Florida. And advertising rules are being examined around the country such as in California.
Do these rules violate Free Speech? Isn't any and every communication from a lawyer intended to attract new business, directly or indirectly? Is this a slippery slope for the Bar?
Continue Reading...
Blogging Special Report
IncreMentalAdvantage just released a special report entitled, “The Marketability and Legality of Law Firm Blogs.”
Kentucky Bar relents on blogging restrictions
What values are most important to clients?
1. Show up on time
2. Do what you say
3. Finish what you start
4. Say please and thank you
These are the single, simplest, most important rules to remember in dealing with all people, not just clients, in my opinion. Continue Reading...
Ghost Writers for Blogs
The company we keep -- A sales tool
Continue Reading...
Bah, Humbug! Be original this holiday
There are so many people who have enabled me to be successful; it would be impossible to thank them all, individually and with an appropriate gift at this time of year. I was raised with a unique philosophy: "If you don't recognize me during the year, don't bother me on my birthday." (You can translate that: "Don't give me a gift for the holiday unless you mean it and unless we have an on-going relationship during the year. I'd much prefer a lower legal fee."
You may think this is extreme; I think there is merit in the idea that a holiday or once a year is not really effective to recognize the value to you of the people for whom you care or without whom you would be less successful.
Continue Reading...
Would you do business with yourself?
Roberta Munson asks some great questions, prompted by her less than exemplary experience with a cell phone company:
Budgeting for Internet Marketing
This is an interesting statistic, but falls short of the mark. There is no indication what this means in terms of money. Since we don't know the size of the marketing budget, we can't relate the percentage to the revenue (and therefore the size of this expenditure).
Also, I suspect that the internet focus is more intense since many of the internet functions can be handled internally, without additional cost to the firm.
Nevertheless, this is some evidence of the increasing importance of the internet to the promotion of the law firm's brand and business development efforts.
Use the internet for marketing
Lawyer as Doctor?
Continue Reading...
The Business of Law, Coming Soon to a Library Near You
Unique Books to Distribute Law Practice Management Books Published by LawBiz Management Company
Continue Reading...
New Jersey lawyer advertising restriction
Marketing Teleseminar -- Successful Series Continues
October 17, 2006
Venice, CA
Teleseminar Series Continues
Edward Poll, principal of LawBiz Management is conducting a 6-part series with the South Carolina Bar Association on how to successfully operate a law firm.
The next in the series is: "How to create a marketing plan that will spell success." It will be held at 1 p.m. ET; 10 a.m. PT.
A good marketing plan will show you the path to get from where you are to where you want to be, from your current position in the legal community to having achieved your goals. What will it take to get you there and how much will it cost, both in time and in money? How can I calculate my ROI (return on investment)?
• Overview of goals
• Your comfort zone for marketing
• How to use specific tactics to your advantage
• ROI (return on investment) of your efforts
• Where do I get the time to do all this marketing
For more information.
Taking Electronic Passwords to the Grave
Attorneys advising clients on estate planning should ask them to determine who they want to have access to their computers when they die. So starts an article with a whole new concept for me. And a great new tool for marketing in your Estate Planning or even General Practice law firm.
Continue Reading...Temping is Tempting
How to Romance and Retain Your Best Customers
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].'"
Using MySpace for marketing a law practice
Marketing is taking advantage of an opportunity, even if it is E.coli
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.
Do you want to be more effective?
Thank you to Lisa Solomon for this lead.
Estate planning is a growth practice area!
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.
NY advertising prohibition rules causing quite a stir
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!
Be unique and sell
There's an adage that goes something like "He who quotes the first number in a negotiation loses."
Eliminate your competition entirely. Be different. Offer something that your competitors don't or can't. Create something new that your clients need or want. Think about what this might be in your own practice. If you can't think of what makes you unique, you've lost, you're really nothing more than a commodity to your clients and you may "soon" be out of business.
It's tough to market something you don't like
"Not only are lawyers typically reluctant to market their practices, now we learn that many associates aren't even interested in becoming a partner or staying in the profession. It's impossible to market a service that you don't want to perform."
See the full entry for statistics.
Lawyers earn their living with their mouths! Learn how to do better!
Continue Reading...
Observations from a marketing consultant
Interesting blog statistics
More than 6% of the lawyer population now have blogs
More than 1.2 million blog posts daily (one more added here! :-)
57% of lawyers read one blog daily
70,000 new blogs daily
Continue Reading...
True cost of blogging is at least $20,000 per year
Does size of law firm change marketing efforts for lawyers?
To be effective, irrespective of the size of the law firm or the firm's marketing activities as a whole, each lawyer must establish his/her expertise to entice a prospect to become a client. This is done in many ways including, but not limited to (the former lawyer in me just came out), writing, speaking, using the internet and sometimes advertising (in any medium that is cost effective), among other modalities. And, with this expertise, each lawyer must create a personal relationship with the prospect before he/she becomes a client.
Communication is essential for success
"The ability to communicate well can make a critical difference in life, and especially in your career. A study conducted by AT&T and Stanford University revealed that the top predictor of professional success and upward mobility is enjoyment of and ability for public speaking. Yet surveys also show that our number one fear -- even more than death -- is speaking in public."
Other words of advice from FDR: Be brief. Be short. Be seated.
Words of wisdom that are difficult for lawyers to implement. We need to learn more of this.
Bar fails again to protect its members!
After reviewing the proposed changes, I had some thoughts, expressed below without reference to any one section. My comments are of a "macro nature," not focused on the language of any one section. Continue Reading...
Corporate Law Departments - What do they need?
General Counsel of Corporate Law Departments are like most clients, except that they may have less time to focus on what they want/need. They tend to be true multi-taskers, wearing several hats at one time. They are the lawyer for the company. If they are effective, they are also a trusted business advisor to the CEO and other corporate managers. This leaves them less time, perhaps, to focus on the legal side than other clients. How can we meet their time-compressed needs?
Continue Reading...Proof of blogging value
But, more importantly, her public pronouncements on her blog has made her a recognized expert in her field which then got re-enforced by the radio interview.
Keep up the great work, Denise! This really can show the rest of us the lighted path to success in the new era of technology ...
Can you use coupons to market your legal services?
Vanity postage
According to Business Week, PhotStamps was one of the most innovative and exciting products for 2005. The US Postal Service annually receives 40,000 requests/submissions for new stamps and approves 35. However, the USPS approved a one year test for personalized stamps.
Continue Reading...Is blogging worth the effort?
There are posts from Michelle Golden and Suzanne Rose that would draw you to an affirmative conclusion. Both articles are well written and deserve to be read if this is an issue for you.
Prospects are great, but clients are better
Tom Kane has an interesting comment that should cause those consumed with marketing for new clients to take pause. As he says, don't stray too far from home -- take care of existing clients before looking outside.
Marketing is not a 4 letter word
The suggestion was made recently that marketing is a "dirty" business and many attorneys refuse to do it. My response is ...
Continue Reading...Charging for emails - How to lose $80,000 per year
Larry Bodine in his excellent Blog on marketing, highlights a comment I made in our new Special Report concerning business competencies needed to be successful lawyers.
He cites a personal experience with a law firm that charged him $102 to listen to a voice mail message and, rather than credit this amount when Larry complained, told Larry to find another law firm to do his work.
Larry's story is an excellent example of lawyers' lack of sensitivity to the wishes/needs of clients. Can you imagine losing a 5 year client with more business in the future over $100? ... I'm sorry, $102! ... They would gladly have discounted the billed rate if asked, but got all hung up over a request not to be charged for emails.
In today's world, with major corporations dictating what they will and won't pay for, I can't imagine this happening. But, I'm sure it still does somewhere.
When responding to emails (and even voice mail messages to a lesser extent) about litigation and transactional matters, this is legitimate work that frequently gets forgotten by lawyers for billing purposes because of the speed of response ... and the failure of lawyers to note their effort in their time logs.
Bottom line lesson: Lawyers lose revenue when they don't bill; speed of response frequently causes lawyers to overlook the need to note their time. When on a billable hour system, this oversight can be very costly to the lawyer.
"Ghostblogging"
In my recent article for ABA's Law Practice Today, I spoke about blogs as a tool of marketing, not an end unto itself.
Joel Shoenmeyer takes issue with me, suggesting that I said others should write your blog ... and that, if that is the case, "... prospective clients aren't learning anything about your legal knowledge or your personality. And if you use a ghostblogger and don't disclose this fact to your blog's visitors, then you are also a liar."
Continue Reading...Preventive law -- Serve better and more!
Patrick J. Lamb, in his new blog, says:
"There is a difference between hearing what the law firm can do to improve the work it is currently doing and whether there is more work to handle. I've done north of twenty client service interviews. I know clients are savvy enough to distinguish between a discussion about how you can serve them better and how you can serve them more."
I agree that the client will know, by the "smell test," whether you are seeking to serve him better or serve him more!
Continue Reading...Law firm marketing vs. Sales
Adam Smith writes the following question:
"Most businesses know their leading indicators of sales. For example, if the company increases the number of sales calls in January, there will be more sales in April.
"Has anyone analyzed empirically what the leading indicators of sales are for AmLaw 200 law firms? Do the indicators include ads in the trade press? Fancy dinners with potential clients? Rounds of golf with potential clients? Publishing articles in legal or trade journals? Giving speeches? Winning jury trials? Closing big deals?
"It strikes me that law firms have very little idea of what business development activities they really want to encourage among their lawyers and so take a scattershot approach to the effort.
"Has anyone thought intelligently about this?"
Continue Reading...Change Means Opportunity
Bob Ambrogi, a leading journalist on legal affairs, cites a BTI study about Corporate America's dissatisfaction with their present counsel.
Continue Reading...Lawyer advertising - again
New York is considering creating a commission to review lawyer advertising.
The idea is to make sure that lawyers advertising enhances the image of lawyers.
But, with the right to advertise given to lawyers, who will draw the line on what can be said ... beyond truth and no false claims of success ... why should lawyers be treated differently than any other profession in regulating its advertising?
Why do bar associations continue to think that the legal profession is different than other service professions? This is where arrogance starts.
Client service - an update and different perspective
Carolyn, in response to my comment about client responsiveness, suggests that fast response is not always possible. I agree.
There are some options, however, that one can apply to achieve a similar result. First, if you are busy and employ one or more staff, have the staff person set up an appointment for you when you will be available. That might be later that day, in the evening or the following day. The fact that the client knows you will call at a time certain is most often sufficient.
Studies have shown that most calls are process calls, calls that the staff person can answer. So much the better! Thus, you, the lawyer, have to deal with only 20% of the calls anyway ... and can call the client back when you're available.
If you're a true solo and have no one to set up such an appointment, you must find a way to manage the clients expectations. Do this in the first intake session with the client. Tell the client that if you don't answer the phone or return the call within two hours (or something of this nature), it's because you are in court or otherwise just unable to respond. But, have no fear, you will call in the evening or early morning, depending on the client's preference. Managing the clients expectations from the very beginning will avoid disappointment and anger by the client.
More effective blogging
See a great post on blogging more effectively, i.e., to get more traffic to your blog site ...
Never discount your price!
"If your only entry point is price, you don't get their loyalty," Zhang said. "And if price breaks is your only selling point, there is always someone who can undersell you." These are the prophetic words of an attorney currently competing for business in China.
Continue Reading...Demonstrating how we improve our clients' lives: The goal for 2006
The Chief Marketing Officer for Intel said in the current issue (January 9, 2006) of Business Week, "I tell people they're not just about making silicon. They're helping people's lives improve, and we need to let the world know that," says Eric Kim.
The question then, is: What are you going to do in 2006 to change how you are perceived by your clients and your prospective clients? How are you going to communicate to your clients how you help improve their lives?
Averages don't control
The question was asked: What percentage of revenue is normally spent on marketing? While some studies apppear to provide an answer to this question, I'm not enamored with studies that show averages of costs of operation in a law firm. I think they must be taken with a grain, a large grain, of salt.
Continue Reading...Press Release
December 12, 2005
Venice, CA
FOR IMMEDIATE RELEASE
Ed Poll Appointed to Law Journal Newsletter Editorial Board
The publication becomes the first of the Law Journal Newsletters to go to 12 pages from its standard 8 pages.
######
Is client service unprofessional?
My recent experience with the Bar is covered in the current issue of the ABA's Law Practice Today.
The Bar tells us that we should not be concerned about marketing; marketing is broadly defined as communication with clients and prospects. And then lawyers are disciplined for failing to communicate with clients!
Something is wrong with this picture! The Bar needs wake up. The Bar, and particularly the larger firms that control the organized Bar, needs to put their fear of advertising (already permitted by Court order!) on the shelf and not confuse real marketing with education about communications with clients, a skill law schools and the Bar fail to provide.
Testimonials - A contrarian view
Question: Can I use clients' names for testimonials?
Answer: I will register a contrarian perspective that has been developed by 25 years of practicing law. It is contrary to the perspective of all sales people I've ever met.
Continue Reading...Marketing to the Latino community
The Latino community is growing in the United States and represents significant buying power. This group also has significant legal needs.
Continue Reading...MCLE & Marketing - A bit of irony
In reading the October/November issue of Law Practice, the publication of the Law Practice Management Section of the American Bar Association, I was suddenly struck with a bit of irony.
The answer: YES!
The Court said that lawyers have the right to advertise their services. Advertising, by the way, is one aspect of marketing ... Despite this prohibition of restriction, State Bars across the country continue to say that marketing (the broader version of advertising) is excluded from MCLE legitimacy ... credit for programs on marketing are denied.
Now, what is wrong with the principle of helping lawyers identify those who can best use their services and how then to help them develop close relationships with them?
This is not a question of perpetrating a fraud on prospects, it is a question of how to identify what prospects want and then determining whether you, the lawyer, are competent to handle the matter.
How incredibly sad that the Bar discriminates against the small firm lawyer in this process ... how incredibly arrogant of the Bar to refuse to help its members where they need the help most, with clients!
Frankly, I think a lawsuit on constitutional grounds against the Bar would succeed, as did Bates v. O'Steen. But, lawyers seem able to address these issues in other ways, subverting the Bar's prohibition anyway. I prefer, however, to be straight rather than devious.
But then, this is only my opinion.
Associates Need to Know!
A recent survey reported by Larry Bodine suggests that most law firms require their associates to have business development skills and, more importantly, to bring in new business.
"But ironically, 57% of law firms fail to provide them any training to generate new business," according to Larry Bodine, a noted marketing guru.
I have no quarrel with the survey results, but the results are directly contrary to my own experience in talking with managing partners and others at larger firms. Frankly, this is one of the facets separating large and small firms. The latter lives and dies on the ability of all their members bringing in some, if not a lot of, new business.
This highlights, however, another area of great change in The Business of Law(r)!
Motorola's Razr is a great model for lawyers
See the article about the development of Motorola's Razr mobile telephone. There are some interesting and important lessons the company learned as a result of its huge success with this product.
Continue Reading...Advertising is Not Publicity
"Advertising is what you pay for.
Publicity is what you pray for."
Thank you Dian Thomas for this brilliant phraseology. She talks about ways in which we can get million dollar publicity. See her web site.
Should Small Firms Join the ABA?
This is an on-going debate for small firms. And, since the ABA de-funded the Standing Committee on Solo & Small Firms, the question loomed even larger. The change of the name from ABA's General Practice, Solo & Small Firm Section to Division will have questionable impact.
But see Tom Kane's highlight on this issue, pointing to the new ABA President's comments.
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!
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...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:
Pareto's Principle really does work!
Your marketing efforts will improve dramatically if you spend time applying the Pareto Principle to your firm. Tom Kane in his blog today refers to an article in the ABA's Law Practice Today.
Look at the steps set forth in the article for good advice to increase your revenue.
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...Keeping clients after a lawyer retires
Question: How are clients kept with a firm when a lawyer retires?
This is a classic and difficult problem for many law and professional firms. Typically 10% of the lawyers bring in 80% of the business. When the rainmakers hit 65, they slow down, and their referral sources retire. Meanwhile, the next generation of partners has been accustomed to inheriting business and has no marketing skills.
This is usually when I get a call.
Firms must start with the premise that clients are a firm asset, and not a partner's personal asset. I have advised law firms to:
- Have the rainmakers introduce younger partners to their client contacts
- Build teams around the top 20 clients, and to let the client know they have a team.
- Actively start cross-selling the top 20 clients. For more info see Larry Bodine's webinar: Best Practices Of Cross Marketing and Selling New Services To Clients
- Create a business/strategic plan for the firm
- Compose a strategic marketing plan built around the top industries in which the firm has clients.
- Train the lawyers to go after target businesses and have each lawyer compose a personal marketing plan. Those who don't make the effort have their pay docked at review time. Those who get results get bonuses.
- Don't make associates partners unless they have a book of business; don't hire associates unless they have business development skills.
- Require everyone on the management committee to be rainmakers. If they can't bring in enough business to feed themselves and a platoon of associates, demote them off the committee.
And that's just for starters.
Client Profiles
Here's a new one: Create a client profile, the profile for your ideal client. Then, create a marketing plan that focuses just on your target market, not everyone. Then, go get 'em! Increase your revenue by five and six figures while everyone else is sitting still, wondering how you flew so high!
Client profile answers these questions:
What characteristics describe your ideal client?
What is your client's occupation?
What are their demographics?
What is their response to coaching?
How do you know when it's a "fit"?
Number of clients.
Weeks of coaching.
Monthly fee?
Annual income?
Other profit centers?
Relationships?
Vocation/Calling?
Location?
Vision/Dreams?
Legacy?
Manage your priorities, not your time
If you want to be successful by choice not by chance, you have to arrange your priorities in such a way that you have time to do the necessary outreach, the necessary article writing, the necessary speaking, the necessary networking and the like in order to let the world know that you exist. Beyond just existing, the world must know what you do; and beyond just what you do (a features element), the world must know what you can do for them (benefit orientation). One way to implement this is to do is look at your calendar, reserve one or one and a half hours three or four times a week for these efforts.
Yes, this does cost something. But, realistically, you are leveraging skills of others at a cost of $X and charging that work out at your billable rate. The profit to you is substantial ($Y-$X) while at the same time getting something done that is very important to your future pipeline of work.
Stamps or franking?
A recent discussion on the ABA's Solosez concerning whether to lick a stamp and put it on an envelope or purchase postage electronically (franking) was of interest. And, one of the participants, Becki Fahle, of San Antonio, TX, gave me permission to quote her:
There are very good reasons to use stamps rather than franking:
Continue Reading...Challenging the Billable Hour in Public
A law firm has created and is running an ad campaign that challenges the billable hour. Larry Bodine writes about it.
In marketing, the standard advice is "be different." McGuire Woods certainly will be that with its ad campaign and may just succeed in increasing. Some years ago, Ross Fishman used this technique (be different) to create a large buzz when his firm "guaranteed" that people would be satisfied with the service they received from the firm. Today, that firm has grown substantially, in part, because of the very successful ad campaign. The offering of the campaign was so different that business publications like Wall Street Journal, et al, picked it and ran news stories about the campaign and the firm.
Now that's getting a "bang for your buck!"
Coaching is an important ingredient for success
"... coaches work one-on-one with a select few who, with some tailored training and support, break through to higher levels of achievement. The focus of the coaching is to shape the raw material of attorneys' capability into the proven experience of skilled service providers who know how to keep existing business and expand and develop new opportunities at the same time. In other words, to work with motivated professionals to make them into full equity partners." See more by Felice Wagner on the qualities and value of coaches and the coaching process.
Unbundling your service to lower your price
When you have to bend on the price you quote a client, be sure you first list the things you do for the client for that price. Then, when you lower your price in order to respond to the client's request (based on your competition), take some of those things off the table. Thus, you are not really "lowering the price." You're adjusting the price to fit the appropriate level based on the service to be delivered.
Continue Reading...Marketing more effectively
For those interested in more effective marketing, consider Tom Kane and his comments. Then, when you want to put his thoughts into a plan, consider our workbook.
I have just returned from the TechShow put on by the American Bar Association's Law Practice Management Section. The best such trade show I've seen in a very long time. Cudos to everyone involved. I'll be posting a summary of some of the best products I saw. Stay tuned.
It's easy to lose a client: Don't respond
Clients stay with lawyers because of trust. And trust is built by responding to clients' needs and wants. Losing a client is very simple: Don't respond to their calls and requests!
See the March 20th comment by Tom Kane.
"Your call is important to us."
Have you ever gotten lost in "voice mail hell"?
Have you ever wondered why you have to wait so long for someone to answer your phone call?
Here's one example of a very upset customer:
Continue Reading...The food industry as a model for lawers!
The restaurant industry can teach lawyers a great deal. A recent article suggests that waitresses and waiters can increase their tips significantly (and increase repeat business) by using a few very simple, but effective techniques.
In fact, there is a website in which Cornell University associate professor Michael Lynn discusses his findings that: 1) casually touching customers increases tips for both male and female servers, 2) touching increases tips more when waitresses touch female customers compared with male diners, and 3) touching increases tips of younger customers more than old.
While not all his findings are transferable or applicable to the legal profession, many are. Basic friendliness, courtesy and consideration go a long way to increase client-attorney effectiveness, increase revenue, repeat business and referrals.
Watch your server the next time you're in a restaurant. When treated well by your server, think about how you can incorporate his/her skills in your practice. When treated poorly, compare those actions with how you and your office staff interact with your clients. Are there lessons there that you can use?
Networking is not net-resting
See MayItPleasetheCourt. Craig Williams, in his web log, talks about diving not being the same as floating. While he didn't intend to take the metaphor further, he reminds me that networking is not the same thing as netresting.
In order to be effective in networking, one must work ... work the room, work the rolodex, work the telephone, etc. in order to meet people and let them know what you do. Only when they know what you do can they make a choice to have you work for them.
Building a field doesn't mean, despite the film, that baseball players will come to play. Unless you let folks know what you do, they won't know they may benefit from having you represent them. Give them a chance to know you ... Give them a chance to include you in their list of options. They just may choose you to be their lawyer!
Care and feeding of Corporate General Counsel
General counsel say that they find lawyers from a number of sources including:
-Referrals from trusted sources (usually other general counsel)
-Publications they read in which lawyers write about the topics of their concern
-Networking
General counsel say they look for lawyers who
-Respond promptly
-Are expert in their field
-Have a good reputation
-Know the client's industry
-Have a relationship with the company in the past
-Are members of a firm that has a good reputation
-Are confident, but not arrogant
Reputation is very important to general counsel because they are always reviewed and criticized by someone - everyone - in their organization. While reputation is important in high stakes matters, cost is very important in commodity-type work.
Do what you can to relieve the stress of general counsel. That is their message. That's how to bind yourself to your corporate client.
These were the sentiments expressed at a recent meeting of the Los Angeles chapter of the Legal Marketing Association by several general counsel.
Another message that came through in the presentation is that the maxim that clients seek lawyers, not law firms, is not entirely true. Rather, it is true that clients -- Corporate America -- do look at the law firms. They have to in order to CYA because, as noted above, their every move is scrutinized by everyone else in their corporate organization. It's a lot easier to say a mistake was the result of an action by a major law firm than it is to say it was the result of a sole practitioner or small firm. This prejudice of large organizations (clients) regarding the size of their law firm is a fact of life. There are many ways to deal with size bias, but the prejudice must be met ...
Position is Everything
Harry Beckwith, author (Selling the Invisible and What Clients Love) suggests that the number one marketing mistake law firms continue to make is their failure to establish a position.
"Specialists thrive, generalists die." This paraphrases Beckwith's belief. OR, "Generalists are flexible and survive during economic troubles." This paraphrases Alan Weiss' belief.
Another way to paraphrase these concepts is: "Specialize or die." "Generalize and thrive."
Beckwith believes that promoting one specific skill will provide a law firm with competitive advantage. And competitive advantage will yield more revenue and more profit.
What do you believe? What is the USP (unique selling position) of your law firm?
Serving Small Clients Profitably
Ed Wesemann in his book, THE FIRST MYTH OF LEGAL MANAGEMENT IS THAT IT EXISTS, suggests that small clients disproportionately drain the resources of law firms while providing a disproportionately small contribution to firm profits. I agree that the size of the client is important; everyone wants to serve larger clients.
I am all in favor of seeking larger clients with more money and more interesting challenges. This effort, however, must be balanced to assure that the firm doesn't wind up with only a few clients, larger though they may be, who put the firm at risk if they should leave.
But, be sure that no long-term capital or other expenditures are made at the behest of such larger clients without some type of assurance or guarantee that the business will stay with you until at least the amortization for the new expenditure is completed. In the longer term, a strategy based on fewer, larger clients will almost always lead to disaster.
Market share of legal services to your client
Do you want to increase your market share of the legal services purchased by your clients? Think of your best client. Then, the next one, and so on.
Now, go print out the MacKay 66 client profile.
How many of these questions can you answer for each of your clients, let alone for your very best client?
Trade Shows
A few years ago, I interviewed a lawyer in Canada for our Law Practice Management Review: The Audio Magazine for Busy Attorneys.
His experience suggests that with the appropriate goal and market target, you can succeed. It is not however without its challenges. As my wife is fond of telling me, there is no free lunch. There is a cost both in money and, more importantly, in time that accompanies trade show exhibits.
The most important lesson is that i) you need appropriate planning before going into su