A few weeks ago, Ed competed in the cycling events at the Senior Olympics. Today, Ed reflects on how that experience relates to his professional life and the Business of Law.
Today Ed revisits a topic he discussed a few months ago. This week's clip will have you consider answer 2 important questions: What can you gain by hiring a new person, and how much will it cost?
Ed examines the complexities of bonuses and offers advice on handling them.
Should lawyers litigate against their clients? The insurance companies say no now watch to hear what Ed has to say.
Every so often we need to evaluate our operating costs. In today's clip, Ed will present you the questions you need to ask yourself. Most of all - do your operations work for you and your clients?
What is the difference between Marketing and Selling, and how are both needed at your firm? This week, Ed shares his wisdom on these topics.
This week Ed launches his On the Road! series from his newly refurbished vintage Airstream. In this first segment, Ed will discuss considerations you must make if you plan on leaving your firm, whether willingly or not.
Ed criticizes law schools for no longer upholding their implicit agreement to get their students jobs.
This week, Ed finishes his list of 10 traits that are common to all successful law firms.
In the first of this 2-part segment, Ed discusses 5 of 10 characteristics common to all successful law firms.
Ed advises understanding what you want to do with the second season of your life.
Your bank will not always let you withdraw your money! Ed talks about bank check clearing policies that could affect your law firm.
Ed talks about setting SMART goals for lawyers.
Ed discusses why a law firm needs a business plan.
A friend once told Ed, "Specialize or Die!" Is that the case, or should it be "Generalize and Survive?" Ed weighs the pros and cons this week.
Are you billing appropriately? This week, Ed will offer handy tips that will help you collect what you billed to make sure that you're getting paid.
Lawyers' days are just as long as everyone else's but the amount of work can be exponentially greater. Today's clip offers some time management tips so that you can accomplish more in less time.
What is the communication between you and your partner?
Factors to Consider When Marketing You Firm:
-Have a Marketing Plan
-Consider the commonality between you and prospective clients.
-Play the Numbers Game
-The more people you can get in front of; the better the chance of someone engaging you.
-Build a quality referral sources
-Understand that people learn differently
-Connect with other professions who share your market
Today Ed talks about a basic sales mantra: "Meet People! Meet People! Meet People!" He shares how Five Cards and Three Feet can help do this.
Ed talks about lawyers who provide solutions and who communicate effectively and often with their clients.
As Ed continues "On the Road!" he explores ways attorneys can relate the cost of their services to clients, who might be demanding a reduction.
Developing your practice and business will always be a priority. This week, Ed shares tips about how networking can help you do this.
Learn important skills from Ed as he talks about how a lawyer can best allocate his time to handle current issues as well as prepare himself for the future.
Your law practice is a business. You should know how to run it like one.
Ed discusses alternative billing and how it relates to the elements of certainty and trust.
Ed discusses 8 steps that law practitioners can take to survive a recession.
Above all else, managing client expectations requires a commitment to communication. Tune in this week as Ed shares tips to make this easier for you.
Ed stresses the fact that knowledge of technology is now vital in order to be considered a competent lawyer.
Listen up, boomers! If you're a lawyer preparing for retirement, this week's vignette is for you.
Whether it's a recession or a depression we're in, several lessons have surfaced we cannot ignore. This week, Ed ponders what we can learn from this crisis to ensure we're on the right track for the future.
So your clients aren't paying the bills? In this clip, Ed looks not only at reasons why they aren't but offers solutions to overcome this problem.
Do you know how your clients would rate you?
During today's clip, Ed will share some indicators that might help you gauge the rapport between you and your clients.
Ed speaks about the financing from a personal injury case.
Ed makes suggestions about what to consider when approaching the end of your lease.
I’ve talked about a lawyer having an estate plan. I’ve talked about creating an estate plan for your law practice; this is an idea first generated by Ellen Peck, retired judge of the California State Bar Trial Court. Now, there is another estate plan to prepare: Digital.
What are you going to do with all your passwords, all your email accounts, all your accounts in social media and all your other accounts that reside in the internet?
Your virtual life doesn’t end just because you die. And in some arenas, the material you have on the internet cannot be removed or taken down. You may even have money residing in some of the internet residences such as PayPal, on-line gambling accounts, etc. Be sure to appoint or designate someone to be responsible for dealing with these issues. Be sure to write down all the accounts and passwords. And be sure to contact such companies as LinkedIn, Facebook, Google, etc. to comply with their policies.
There is little or no case law to date about planning for digital assets after death, and certainly no precedent of which I’m aware on this. But, for just that reason, it’s time to think about these issues.
Ed discusses the factors that influence collection success.
Client selection: you have to get the right client.
You must understand the wants and the needs of the client.
You have to get confirmation of the arrangement between you and the client in writing.
And, check the client's credit.
For growth and expansion, there are two philosophies:
Trail your growth (conservative), or
Hire for the future (confident and assertive)
For troubled times, there are two philosophies:
Slow to hire
Quick to fire
Lawyers should do only two things:
Market for new business:
Only they know if they want to represent the prospect
Only they know if they’re competent to handle the matter
Only the lawyer is licensed by the state to practice
All else can and should be handled by others
Ed talks about creating a bond with the client to achieve client loyalty because your revenue is a perishable commodity.
Under current law, clients' trust accounts are protected under the IOLTA program. The FDIC provides unlimited insurance coverage.
However, unless extended by Congress, beginning January 1, 2013, such unlimited coverage will terminate and the new limit will once again be $250,000 per depositor. All funds held in such trust accounts as well as all funds held, personally, by the same client in the same institution will be considered in the $250,000 limit.
Be careful and review your bank's regulations and the funds you are holding for the benefit of your clients. Watch Congress for any "lame duck" laws on this and the FDIC and its responsive regulations. You may have to split clients' funds into two or more banking institutions in order to keep his/her money insured. And you may once again have the responsibility of checking on the financial soundness of the banking institution in which you maintain your clients' trust account.
Yesterday, I watched the Richard Gere film, Aribtrage. The film portrays a successful billionaire's moral decline as he attempts to save his failing company from his poor decisions. He "cooks" the company books by borrowing money that is not shown on the books as such in order to keep up appearances in order to complete a sale of the company, falsifies investors reports and otherwise plays "loose" with the truth. This is a man in trouble, but Gere continues to exude confidence in order to reach his goal.
Coincidentally, in today's Wall Street Journal, reporters once again discuss the Dewey & LeBoeuf LLP demise. Prosecutors are still questioning whether there was deception about the financial condition of the firm in the last few months. Were partners told the truth, were they given accurate financial reports, and were the firm obligations to pay down outstanding debt on behalf of terminated partners honored? And, were the transgressions that did occur a matter of a struggling business doing what it could to survive or a matter of criminal and/or civil fraud?
As a matter of "black letter law," it's clear that management (managing partner and management committee members) owe a fiduciary duty to others -- investors, lenders and partners. Did they breach this duty? How close to Arbitrage did the leaders of Dewey come?
Ed notes that poor client service is responsible for 63% of clients leaving their law firm.
In a recent display of enthusiasm, pizza shop owner, Scott Van Duzer, gave President Obama a bear hug when the President visited his shop on a Florida campaign tour. The visit and the ensuing bear hug provided quite a spectacle. After all, how could the secret service have permitted this? But, both the owner and the President seemed to enjoy the moment.
What impressed me more was the interview of the shop owner. He said, in response to a question about whether he feels that Obama has let the country down, “The bottom line is this: I own a small business. I take accountability for my business. I’m not looking to blame the government. And if people had the same mentality of taking care of their own businesses instead of looking to blame somebody when things are a little bad—just tightening things up and doing the best they can—I think we’d be better off that way, too. The whole world is not in a good place right now, and I’m not looking to blame someone. I think that’s the problem. We’re looking more so to blame him for our misfortunes.”
In other words, we’re not “entitled” to a particular way of life; we have to work to achieve our success; and we are accountable to ourselves ... neither the government nor anyone else has “done it to us.” Blaming someone else merely allows us to feel like a victim. We do have power and control over our own lives to a far greater degree than we admit.
By analogy, in a show the other day, Katie Courac talked to two teenagers who were bullied. Their common characteristic was that they refused to feel like a victim. They remained upright and confronted their attackers. Their stories provided an interesting perspective
Can we use help? Absolutely. Do we need rules of the road to assure that we have a level playing field? I believe so, but that's my bias. Should the government provide us with help? Before you answer this question, read the Time Magazine article by Jeremy Styron to understand how the government actually is in our daily lives, more than we know, more than we care to admit, providing us with material assistance just to get through our normal day's routine.
But, without the accountability to ourselves, without rules that apply to all, equally, we go nowhere. Thank you, Mr. Pizza Shop Owner, for putting entrepreneurship and small business in the proper perspective.
LawBizForum.com contributor Linda Popky has 10 Tips for Promoting your Services, which Ed shares with you today
Ed discusses the virtual office and the importance of face-to-face client contact.
“I am really tired, and want to retire.” But, retirement is out of reach for many lawyers after their homes and retirement plans took heavy hits over the last few years. “Business purgatory” is how one phrased it.
Delays in retirement are now common, with 38% in one survey saying their retirement will be at least 5 years later than expected. The income stream for many lawyers comes from their law practice. Selling, closing or merging the practice are options, but none are likely to provide the same income stream the lawyer is accustomed to receiving.
Unless the lawyer is willing to adjust one’s life style, he will remain in practice, working to build up the practice further in order to reap the rewards needed to fund retirement.
Commentary about when and how a lawyer can represent both defense clients and plaintiff clients on the same issue.
Ed weighs the costs and benefits of writing books, articles, blogs, etc.
Ed speaks about collections: lawyers effectively collecting on all that they bill.
Today, I realized that it is the 10 year anniversary of my riding up one of the most famous mountains in the world, Alpe d'Huez!
I rode a major mountain here in California earlier in the year, Mt. Figueroa about 1/2 hour north of Santa Barbara. It is the same mountain climb that many professional cyclists ride in the early months of the year to train for the Tour d'France and other major races. When I reached the top, the coaches at CTS Training (Chris Carmichael, then the coach of Lance Armstrong) assured me that this climb confirmed that I could climb any mountain in France. Well, in some disbelief, I made reservations the following week to go to France in July 2002. And I did climb several of the other major climbs in that year's Tour, as well.
It's now 10 years later; time has taken its toll. But, I did start training to climb Mt. Fig. again this year. Wish me luck, though I'll need more than that ...
What's in your bucket list? What are you doing to achieve your goals?
It's no secret - lawyers butt heads. But, when it happens, do you keep your clients' best interests in mind, or do you seek dominance instead?
Ed's wife reminds him that there's no such thing as a free lunch, but today Ed shares tips that will promote your firm and services at little expense.
The Problem with Bankruptcy Isn't Attorneys' Fees, It's Executive Incompetence - As Posted in Alan Weiss's Contrarian Consulting Blog.
Recently my article about Who Sets The Lawyer Fees was used as a guest blog by Alan Weiss. The blog discusses the recent Wall Street Journal article about the Justice Department's attempt to control fees that the bankruptcy lawyers seek, and the possibility that the U.S. Trustee Program may now be entering the fray.
In case you missed it, here's the link to Alan's blog: bit.ly/KoDDLx
In the Wall Street Journal, staff writer, Jacqueline Palank discusses the Justice Department’s attempt to control fees that bankruptcy lawyers seek. Creditors and employees may, at times, be a bit disgruntled by such fees. So, now, the U.S. Trustee Program appears to be entering the fray.
Before going further, it should be noted that i) any fee sought by an attorney must first be approved by the client going into bankruptcy; ii) the fee cannot be paid before a Bankruptcy Court Judge approves the fee request; iii) the legal fees most often are a pittance compared to the debts of the company and thus have little or no impact on either the creditors or the employees. In fact, the current proposal is limited to companies whose assets and debts exceed $50 million, hardly your "normal" bankruptcy.
The only reason for focusing on the legal fees is that this is a topic that makes good reading in the tabloids, including the WSJ. While the quoted hourly rate received by some attorneys seems high, it is insignificant in comparison to the compensation received by incompetent CEOs and others in the C-suite offices. Why don’t the tabloids focus on the cause of the bankruptcy? Why not focus on the compensation of the management team, which often is at astronomically higher multiples compared the lowest paid employees of the company? Why not seek redress against the management that is responsible for bringing the company to its knees? Although this focus may have more positive economic impact, it clearly is not sexy enough to sell many papers.
The U.S. Trustee is proposing, according to the writer, several new approaches to control lawyers’ fees, including:
• Though the lawyer applicant must disclose his/her hourly rate now, the Justice Department wants the lawyer to disclose the lowest, highest and average hourly rates the law firm charges in all its matters.
• The Department wants the lawyer applicant to create and disclose to the Court a budget for legal expenses. This budget would, necessarily, disclose to all involved, including the creditors who are adversaries of the bankrupt, the client’s planned legal strategy.
In the 1960s, the Supreme Court ruled that it was anti-competitive for bar associations to maintain a listing of suggested fees for different types of work. Such a listing, in particular, helped younger and newer lawyers set their fees at rates that were more in line with more senior lawyers. Not having such a list would compel lawyers to set their own fees, the theory being that lawyers would then be more competitive with one another to the consumers’ benefit. The Trustee by its first proposal ignores this. The existing disclosure already provides information that tends to be anti-competitive. Law firms can see what others are charging and price their own services accordingly, causing rates to slowly increase in lockstep over the years.
Intruding into the fees charged for practice areas, such as general business matters, estate planning, tax work, and other areas of work performed by the firms who also do bankruptcy work has no bearing on the special expertise of large company bankruptcy lawyers. No area of law other than bankruptcy requires such disclosure for court approval. Fees are left to be negotiated between attorney and client. Other than precedent, there is no reason disclosure should be made here either and the process should not be extended. “Transparency” is a bogus issue. There is no backroom conspiracy on how bankruptcy fees are charged. All the proceedings are public and must be approved by the Court before attorneys are paid anything.
Budgets are good. I recommend them to my attorney-clients with whom I consult. Budgeting is a process, however, between the client and the attorney. By requiring that bankruptcy budgets, which reveal legal strategy, be made public, the U.S. Trustee is saying that bankrupt companies have no rights. They have no right to advocacy; they have no right to develop a strategy that might affect creditors' claims; and they have no right of confidentiality. This is clearly contrary to the U.S. Constitution and our entire judicial system. While the bankrupts, and their inept management, may have proceeded down an economically unwise path, they still have rights to seek the best windup of affairs in their economic environment.
Don’t worry about the lawyers’ hourly rates once the bankruptcy petition is filed. They are regulated first, by the client, and second, by the Court. Who is watching the compensation of the management team before the company entered bankruptcy? Why are inept executives not punished with fines, or worse, for malfeasance and negligent management tactics? Why are they allowed to benefit so expansively at the expense of their workers? Why don’t the tabloids focus their sharp light there? Oh, I forgot, the tabloids need to sell papers, they are part of the industrial complex that both Presidents Washington and Eisenhower warned us about as they left office. Perhaps the fact that quite a few newspapers and newspaper chains (Tribune Co. and papers in Detroit, Denver, Minneapolis, Philadelphia and many other cities) have been mismanaged and had to file for bankruptcy has something to do with it, too.