May 11, 2007

Voice Mail — a Lawyer's Friend or Foe

10:21 am

How phone calls are handled either works for or against you, and that goes for both ends—incoming and outgoing.

It is important enough that the publication Law Practice devoted two pages to the subject in April 2007. For my , the most important advice from author Dan Pinnington is to call your office and find out how calls are really being handled. As Dan says, you might be surprised by what you hear.

Now remember this is likely to be a prospect's first brush with how your firm works. From the caller’s perspective, if you can’t handle a call correctly, professionally and responsively, how can they expect you to handle their work differently?

As for established clients, most now feel they are better served if they can call your direct line. If you provide your clients with a direct number and then hide behind voice mail because you don’t want to be disturbed, you turn an intended good thing into an actual irritant for your client. Pinnington advises using a phone with a call display. He writes, “Many who had thought they would use call displays to avoid calls….find they actually take more calls because knowing the caller’s identity allows them to understand how much time will be involved before they pick up the phone.” He also says “…that four seconds between when the name pops up and you take the call magically seems to get you in the right frame of mind."

As for calls received by the receptionist, always give callers the option of leaving a traditional message or voice mail. He warns against asking callers for their identity prior to giving them the option of leaving a message or voice mail. “If you don’t take a call after a client has been asked who they are, you create the impression that you are avoiding their call.”

For those calls that do go to your voice mail, Pinnington provides the following advice:

1. Open with your name and title so the caller is sure they reached the correct mail box.

2. Update the message daily to include details of your schedule.

3. Indicate whether you’ll be checking voice mail or when you will be back in the office.

4. Always give the caller an option to transfer to a live person.

5. Encourage the caller to leave a detailed message.

6. Let the caller know when they can expect their call to be returned—after noon today, within 24 hours by the next day, etc.

Test your own voice mail system. Is the message clear? Are you speaking too fast? Are you limiting the caller to a 60-second message rather than getting the full details that would make your job easier?

As for the times you are the caller being asked to leave a voice message, Pinnington says the most important point in his entire two-page article is his advice that you “Clearly and slowly state your phone number. …Most people say their number at speeds approaching warp5, with the result is that it is unintelligible. Slow down and take a deep breath between each digit. Okay maybe not quite that slow, but you get the point.”

Morepartnerincome.com is sponsored by , Inc. For information about ® products and services for increasing law and partner income contact National Sales Center at 877/377-374, e-mail info@juris.com or go to www.Juris.com.
 

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February 13, 2007

Law Firm Policy Manual for the MTV Generation

11:25 am

My head is spinning.  I’m looking for the duct tape to keep it from exploding.

 

Why? I am on page 356 of the ’s revised and updated fifth edition Law Office Policy & Procedures Manual, that is why!   Page 356 advises that “those who use the lunchrooms should keep them clean…”.

 

I have to say that the authors have done a great service for those who have been given the charge to come up with such a manual.   All you have to do is fill in the blanks and you too can have a 375-page policy & procedure manual that covers everything from keeping the microwave clean to handling intra-office dating issues.

 

Seriously, there are things here that need to be covered.  But the important stuff gets lost in 375 pages.  You also have the problem of keeping all those pages current! The moment you release a Policy and Procedures manual, it is out of date.

 

Don’t get me wrong; there are some really important and good things in this model manual.  But times have changed. They have gotten faster for one thing! In this MTV and instant messaging world, you have to accomplish the intended purpose differently. Forget the idea of a printed manual. Use technology rather than paper.  Microsoft’s SharePoint® is perfect for this purpose.  Second, except for those subjects covered by law and regulation, forget the long narratives. Use phrases, words, and pictures to get the point across. As for the kitchen or lunchroom, put up a sign that reads, “Your mother doesn’t work here”—enough said.  The message is conveyed. Keep it simple. For example, rather than explain the purpose of every committee, just list them.  Most are self-explanatory.  You can explain those that aren’t.  The more words you use, the harder it is to keep your policies and procedures current and the more difficult it is for people to remain familiar with them.

 

Words, phrases, icons, symbols, graphics, and pictures make your message far more memorable than long, detailed narratives.  You can still find a place for the legalese explaining that the organization’s communicated policies and procedures, regardless of how they are communicated, are not a contract of employment, can be changed whenever decided, and as communicated, may or may not have accurately communicated our intended purpose and, if so, you may or may not have understood them correctly. J

 

Morepartnerincome.com is sponsored by , Inc.  For information about ® products and services for increasing law and partner income, go to www.Juris.com.

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January 19, 2007

Corporate World Still Hesitant About Law Firm Billing Alternatives

11:35 am

The January California (page 8) reports that lacking comfortable alternatives, and clients are staying hitched to the .

 

The article, Driven by the Clock, notes that C-level executives on the corporate side seem more reluctant than to abandon the status quo—the traditional hourly bill.  Offered an alternative arrangement, one corporate executive rejected it, explaining, “I need someone watching my back. I already have an investment banker whose only interest is this deal is collecting his commission.”

 

The client did not want legal advice biased toward a certain outcome. One of the complaints against the “” by the business world is the perceived conflict-of-interest that may result in the finding things to do just to increase the bill. The article illustrates that alternatives to the can interject their own versions of perceived and real conflicts-of-interest into the /client relationship. 

 

As observed by Brad Brian, past chair of the ’s litigation section, “There is an interesting dance going on. A lot of clients want attorneys to think about billing alternatives, but they’re nervous about them too because there are risks on both sides.”

 

There is no single pricing solution that will make everyone happy all of the time.  It follows that a law firm should not have a single pricing model.  Where alternative pricing fits, alternative pricing is a road toward more partner income and happier clients.

 

Morepartnerincome.com is sponsored by , Inc.  For information about ® products and services for increasing law and partner income, go to www.Juris.com.

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August 16, 2006

Time Entries' Naratives Can Create Trust or Distrust

10:17 am

Attorney Harry Styron writes an instructive article in the August 2006 online publication from the Section, Law Practice Today, titled The Art of Time Entries.

While you may think it is a pain to record your time and write those entries, they are a running record of your work, including how well you listen and communicate with your client. Those entries can build the confidence and trust of your client or sow the seeds of distrust, bill disputes, or worse. There is one thing that you send to your client that is certain to be studied in detail—your bill. Use it to show professionalism and customer care. This will convey value and develop the kind of trust that earns you more business and referrals.

The article is worth reading. You will not only find instruction on best practices but the reasons that should motivate you to follow them. Here is how he concludes his message:

”Time entries are not just the cash register tape of our profession. The process of entering time, despised in some ways by all of us, can be more constructively viewed as the manner in which we show our respect for the client and ask the client to respect our profession.

The result of mutual respect is client loyalty and job satisfaction. Since time entries are read attentively by most clients, we are foolish not to use them to strengthen our practices. We are insane if we allow time entries to undermine our client relationships.

Associate attorneys rarely receive instruction in the preparation of time entries. Pressure on associates to bill many hours creates in them the pressure to pad. Reviewing, correcting and adjusting associates’ time entries is a tiresome task for the supervising attorney. The associate whose time entries show accomplishment, rather than churning, will please those who must review them.”

Morepartnerincome.com is sponsored by , Inc. For information about ® products and services for increasing law and partner income, go to www.Juris.com.

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July 28, 2006

Whatever Happen to the Paperless Law Office?

10:41 am

I would be remiss if I didn’t add my drum beat to Dennis Kennedy's post Lawyers Continue to Move Toward the “Papermore” office. Dennis notes the following comment from the : “According to the 2006 Legal Technology Survey Report, 61% of attorneys save email related to a case or client matter by printing out a hard copy."

When you start digging into it, you will find keep paper copies of bills even when their accounting system automatically archives those bills electronically. States mandate the retention of paper copies of trust ledgers. Not only do most keep documents in their original paper form, some actually take the time to convert electronic documents into paper for “retention” purposes.

This fetish for paper runs against technology and business trends. It places and clients at an unnecessary risk. Paper was yesterday’s precedent, but that is changing. It is not the most efficient mode of communication, and it is no longer the most secure method of retaining information. As I noted in a prior post discussing the lessons learned by in Katrina’s eye and in the post about the fire that destroyed 170,000 files, you cannot protect paper! You can replace office space, equipment, phones, etc., but without your “client and case stuff,” you are out of business.

The only way to protect the contents of paper is to convert it to electronic digits and images. Once you have done that, you have the ability to apply the same safeguards available to you to secure your computer records.

In his post, Dennis credited Ross Kodner for championing the cause of the "Paper LESS" for years. There has been progress. Unfortunately, rather than becoming less dependent on insecure paper, many appear to be going in the opposite direction, converting electronic content into paper document.

Old ways die hard!

Morepartnerincome.com is sponsored by , Inc. For information about ® products and services for increasing law and partner income, go to www.Juris.com.
 

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April 26, 2006

Financial Survey Targets Midsized Law Firms

10:35 am

The participation period is ending for the Law Practice Business Survey. This is your last chance to receive and analysis as a participant.

The survey is conducted by , Inc. as an extension of its Managing Partner Forums and is on track to be the largest financial survey of midsized yet, with over 400 firms participating.

Unlike surveys that target the top 100 or ’s surveys skewed to small firms, the Law Survey is aimed specifically at midsized . For the first time, midsized firms can compare their own performance to key financial and operating of similar firms to identify areas for improvement.

Aggregate and segmented will be released June 7 2006 when I team up with , Inc.’s president Stephen Collins to present at ALM’s Small Firm Business Forum in Los Angeles, California.

Don’t miss this final opportunity to participate before the survey period ends in the next few days. You can participate online or by mail using a printable survey form by going to Law Practice Business Survey.

Morepartnerincome.com is sponsored by , Inc. For information about ® products and services for increasing law and partner income, go to www.Juris.com.
 

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April 10, 2006

Law Firms Can Stop the Client Expense Cash Drain

10:11 am

Under the heading BIG IDEAS, the March/April 2006 issue of Legal Management reports on an innovative approach for managing client expenses advanced by the firm. Why bother?  AmLaw 100 firms alone advance more than $4.5 billion in interest-fee loans when prepaying their clients’ hard disbursement cost.  Any law firm funds tied up in uncollected funds comes out of the pockets of partners. 

 

The new approach involves the firm’s use of a Dedicated Hard Disbursement Line of Credit (DLOC).  Checks for client expenses are paid from the DLOC. The hard disbursement amounts and interest and audit fees are automatically added to the client’s next invoices by software that integrates with the firm’s accounting system.  The firm simply passes on the carrying cost to their clients without added markups.  Legal Management reports that the DLOC complies with the ’s Ethics Standards.

 

For more about DLOC, check out Disbursement Management Associates and their sister organization PTFM.

 

Morepartnerincome.com is sponsored by , Inc.  For information about ® products and services for increasing law and partner income, go to www.Juris.com.

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October 5, 2005

Value Curve for Law Firms

10:30 am

William (Bill) C. Cobb, http://www.cobb-consulting.com, invented the Cobb Value Curve (See Attachment).  His work has explained and guided law firm pricing for over a decade.  Most recently the Value Curve was cited and included in the publication Billing Innovations by Richard C. Reed.

 

Value Curve ClntPwr.jpg

 

It illustrates that the value of legal services (and price legal customers are willing to pay) vary greatly depending on the nature of the customer's need.  “Bet your company or your life” issues are at one end of the scale and transaction style services are at the other.  What is often not as clearly understood are two important points:

 

  • The opportunity for substantial per-partner income exists regardless of where on the Value Curve a law firm operates.
  • What the law firm is selling and their mode of operations has to vary greatly in order to realize the per-partner income potential.

At the nuclear event (or “bet your company”) end of the scale, nothing matters except the skill of the .  Price doesn’t matter.  Business often goes to the celebrity attorney or powerhouse law firm.  On the other end of the scale, buyers care nothing about who is doing the work.  One legal professional is equal to another.  The law firm is no longer selling experience or skill.  What they are selling is process, procedure and service—all based on their ability to provide the transactions at a lower price due to advantages acquired by , technology and cost of labor.

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September 30, 2005

Cyber Insurance for Law Firms

10:23 am

The September 2005 issue of Law Practice, the publication of the Section of the , includes an article dealing with insurance coverage for a cyber attack against .

It appears that most think their present insurance policies will come to their aid if a hacker destroys data or interrupts their business operation. The law firm not only faces the risk associated with that direct damage but they could find themselves liable to third parties (clients) who suffer as a result of the impact on the law firm.

are expected to maintain appropriate security against cyber attacks. The problem is that we all know that no security measures can provide 100% protection. Insurance is not an alternative for prudent measures. You will find those measures a requirement to obtaining coverage.

Insurance is something every firm should consider but it will not come cheap—anticipate $12,000 to $20,000 per million dollars of insurance coverage.

The authors, Sharon Nelson and John Simek, predict that carrying cyber insurance will be a standard practice ten years from now. They observe that a cyber-catastrophe could devastate a law firm. At the very least, should be cognizant of the dangers and should investigate the cost of protection.

PS: The cyber-catastrophe risk is another reason for using an online backup service. See the related post of September 23, 2005, Online backup and recovery services for .

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September 19, 2005

ABA Legal Technology Survey

10:48 am

The ’s 2004-2005 survey is now available. You can purchase individual volumes or the complete five-volume set at www.lawtechnology.org/survstat. An executive summary can be purchased for immediate download. Volumes include:

  • Law Office Technology
  • Litigation and Courtroom Technology
  • Web and Communications Technology
  • Online Research
  • Mobile

Laura Ikens, research specialist at the ’s Research Center, noted in that the survey disclosed a disconnect between availability and use of legal-specific software. Software is sitting on the shelves unused. Software loaded on computers and workstations is underused.

Try as they have, software companies haven’t been able to eliminate the need of the user to invest a little "learning time" to save a lot of future time. Too many features and capabilities are hidden behind menus and icons. Users don’t know to look for them. And even if they did, the old saying "out of sight, out of mind" applies.

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