Blawg Review # 163

Now that it is finally the turn of More Partner Income to host Blawg Review, it is tempting to stray from our mission.  For those who may expect this, I'd like you to join me for a moment of digression, as I whisk you away to a remote vineyard in southern France, placing you at a hilltop overlooking hectares of ripe grapes as a cool breeze gently flows through your hair.  It is dusk, and the reddish glow of the horizon creates in you a moment of reflection, something you haven't done in years.  A sommelier suddenly appears:  a vinucator who will ruin the moment by lamenting the perils of the homogenization of wine. 

Ok, that should sufficiently shatter the tranquility of the moment, so let's move on to the theme of this entry:  Law firm survival in economic hard times.

You know that when the price of a gallon of gas increases, it is because of evil oil companies.  That is a given, right?  Well, sure, if you don't know what goes into the price of oil.   Similarly, without knowing the costs associated with performing a service, law firms might be tempted to not increase their own rates, considering the implications it may give to clients (gasp! we are affected by economic conditions, just like you!). 

Reid Trautz argues in his blog Reid My Blog! that firms should increase rates now, mid-year, based on perceptions of our economy.   If firms haven't already increased rates this year, now is about the time they should consider it.  Inflation isn't waiting for you.  Though some argue that law firms can be recession-proof, Ed Poll argues that law is subject to economics just as any other business.

Judge Posner in the Becker-Posner blog writes of the cost of the deterioration of infrastructure.  More money will be needed to finance upgrades.  From where will it come?  Tax increases?  Tax cuts?  How about taxing wheels?

The Estrin Report discusses more layoffs for associates and staff - regardless of whether the economy improves or not.  Even partners aren't immune.  Jim Cotterman of Altman Weil suggests that the likelihood of becoming partner is being affected by the economy:

Generally law firms are best situated if they promote to ownership only those who can maintain, refresh and expand the business opportunities of the firm.  Without this one attribute, no firm can remain competitive or viable for very long.

What can a law firm do?  For one, it can avoid being stupid, as Jordan Furlong of Law21 writes.  What does he mean by stupid?

• Partnerships that don't enforce rules against uncooperative or alienating partners who happen to bring in a lot of revenue;
• Senior lawyers who consistently hoard the best work and the most client contact, to the detriment of junior lawyers;
• Firms that allow women lawyers to leave because of partnership tracks that are tailored for men;
• Firms that prioritize short-term profits over long-term interests.

Speaking of women, Matt Homann in his blog the [non]billable hour writes of the five things you need to know about women and word of mouth.  One of the things appears to be costly: Instead of offering a 15% discount for referrals, offer a 15% discount to everyone a woman refers!  Considering this blog's disdain for discounting fees, I would prefer that "kirtsy" discount be placed on a timer.

I'm more inclined to attract women [clients] who misbehave.

Another thing firms can do is communicate better with clients.  Status reports are often an underutilized medium of communication that can mean the difference between a happy client and a lost client.

Tom Kane's Legal Marketing Blog discusses 6 steps to improving client service:

1. Agree upon and commit to a defined set of client service standards.
2. Turn fluffy, high-level strategic statements into real, definable, measurable action steps.
3. Provide training and ongoing reminders focused on what it takes to meet and exceed a client's expectations.
4. Include client service as a significant factor in compensation.
5. Give leaders the power to enforce standards (carrot and stick).
6. Provide role models, teach the skills, give opportunities to practice and supply meaningful feedback. One great rehearsal hall is within your own firm, where lawyers can deliver exceptional service to each other.

Being a role model is a tall order in today's firm, where partners appear to work twice as much as associates.  However, in a great post from the Harvard Business Review "Editor's Blog" titled  A Boss Who Changed My Life, Steve Prokesch writes of the means that his boss employed that helped "turn us individually and collectively into winners":

• Set the bar high and then push your team to raise it higher;
• Make excelling a team activity;
• Promote your team in the organization;
• Remember that management is personal;
• Champion your people.

The above is a lesson that can be learned by all in business. 

There are other blogs that were emailed to me which are also worthy of mention:

• Mark Herrmann, author of one of my personal favorite books, "The Curmudgeon's Guide To Practicing Law", co-authors a blog called Drug and Device Law.  His June 5th post is titled Users Guide To Defence Amicus Briefs - Wyeth v. Levine.
• Victoria Pynchon, author of the blog Settle It Now Negotiation Blog, wrote a series of moving articles on the familial issues surrounding the last days of her father's life and the possibility of suing her father's physician; the first titled Negotiating Life's End.
• Biker Law Blog host Norman Gregory Fernandez writes of California's new law banning cell phone use (when not using hands free) and whether the law serves its purpose of reducing distractions to drivers.
• Eric Turkewitz of the New York Personal Injury Law Blog writes of a purported obscene filing in a Texas court (which is later shown to be a practical joke played on a partner - who said lawyers had no sense of humor?).
• There must be something in the air in Texas:  The Wall Street Journal Law Blog writes of a Texas Federal Judge in the case Waggoner v. Wal-Mart issuing an Order that was as ridiculous as it was funny (as if the SouthWest Conference was ever in the same category as the SouthEastern Conference!).
• Lowering the Bar has a post discussing a Colorado store owner who was ordered to stop taking shoes from people he catches shoplifting in his store.
• Brett Trout discusses in his blog, BlawgIT, the patent application of Microsoft's device manner's policy.
• Every law student finds an obsession to take their mind off the stress of law school (I dropped over $10k on building a 110 gallon reef aquarium), but Chris Colin from the San Francisco Chronicle writes of an old friend who developed a passion for crafting dinner plates based on legal themes.

Jesse Hines (a guest author on Write to Done) argues that a single-idea post often works better than list posts.  Though I didn't follow that particular advice in writing this entry, I look to that blog as a source of writing guidance.

Thanks to all who emailed suggestions this past week.  Blawg Review has information about next week's host, cearta.ie, and instructions how to get your blawg posts reviewed in upcoming issues.

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