January 17, 2008

Second-Class Treatment of Law Firm Staff

12:00 am

Tom Collins and I were discussing the between and non- employees of . Following up our conversation he sent the comment to post:

I will never forget the time I spent on the site of a one law firm. The entire five-person accounting department shared one windowless office. Desks were pushed against one another. The accounting staff worked in chairs with missing arms, torn upholstery and busted springs. Their mismatched desks looked to be recovered salvage with missing drawers and loose veneer. This was an extreme case, but it is standard operating procedure for many firms to treat their non-professional staff as second-class citizens.

The non- support staff in a law firm has a lot of influence over the success of the firm's —they can spoil the soup. How they feel about the firm is reflected in how they deal with law firm clients and .

Excellence in client services starts with excellence in how the firm treats its own people.
 

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Filed under Firm Culture, HR by Brian J. Ritchey

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

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Filed under Policies/ Procedures by Tom Collins

January 15, 2007

Law Firm Collections Efforts: Are Yours Too Little Too Late?

11:23 am

I was paging through an expensive resource guide for when I saw it.  It was A Model Collection System, a semantic or procedural flow chart illustrating recommended collection efforts for a law firm.  The chart included the following steps:

 

  1. Send the client a bill

  2. If there is no payment in 30 days, send a statement and letter and have the make a call to the client

  3. If there is no payment in 60 days, send a statement and letter

  4. If there is no payment in 90 days, send a statement and letter

  5. If there is no payment in 120 days get serious about collection:

    1. Strong letter

    2. to call client

    3. Refer to committee

    4. Pursue collection or write-off

 

“It is too late to close the door after the horses are out of the barn.”  Old sayings like the previous sentence are sound business advice for .   Why in the world would collection efforts be directed at past due accounts?  Why not close the barn door before the horses get loose and have to be rounded up?

 

The typical law firm, according to the Juris , has 76 days of unbilled time still in its work-in-process at the end of every month. It takes another 72 days on average to collect for amounts once they are billed.  That is a 148-day cash flow cycle. That is getting close to half a year!

 

Improving collections is achieved through procedures to avoid collection problems rather than trying to solve them after the fact. How do you do that?  You do it by directing your energies as follows:

 

  • Improve intake procedures

  • Bill faster—speed up your billing process

  • Move routine collections out of attorney’s hands

  • Work accounts before they become past due

 

For more on improving law firm collections, including a checklist for speeding up billing and collections, read the following previous posts:

 

Speeding Up Law Firm Billing and Collection

Attorneys Are the Wrong People to Collect Firm Accounts

Collection Tip – Honey vs. Vinegar

 

You might also reread or distribute the post on problem solving, A Problem Solving Policy for the Law Firm.

 

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

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Filed under Cash Flow Issues by Tom Collins

December 1, 2006

Law Firms are Adding Alternatives to Partnership

11:18 am

If you don’t keep up with the other side of the pond, you may be unaware of the growing movement to offer career alternatives other than partnership—or, as an additional step, lengthening the time required to become a partner.

The November 20 issues of The .com reported that London-based Berwin Leighton Paisner (BLP) will now offer 'Associate Director' positions as an alternative to partnership. BLP has 600 and 170 partners. According to the The .com, the new associate directors will be tied to the firm's but without a direct share in the equity. BLP emphasizes that associate directors, while continuing their role as , assume a management role in one or more of the following areas: operational, client , people development, know-how and training, or .

I’m not crazy about the title ‘Associate Director;’ it feels a little too British for me. But I have to say that once we have taken the step to identify the law firm as a legal service business, the partnership model begins to look outdated and cumbersome. It limits growth, impedes survivability, and imposes a high price for success on those who must admit new members to the top.

While the U.S. is not ready to separate law firm ownership from those in the profession, would do well to find a way to separate career success from the rights and obligations of ownership.

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

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Filed under HR by Tom Collins

August 28, 2006

Increased Law Firm Income Correlates with Five Important Practices

10:11 am

BTI Consulting Group, a leading provider of market research, reported that the “Best In Class” had in common the following practices:

1. Each has a single individual responsible and accountable for client service performance;

2. They make specific changes in response to client feedback;

3. These firms spend $14,000 to $17,000 per attorney on marketing;

4. They have a formal, written strategy - i.e., plan;

5. They track and measure client retention.

The above five practices together with seven more comprise the 12 Power Marketing Practices that BTI identified as those that are producing pacesetting performance among . Based on their research, that follow the majority of the twelve practices experience a significantly higher per-partner profit over those that do not. You can order their complete report or read an overview of the twelve practices in The Atlanta Bar Association’s The Complete Lawyer.

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

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Filed under Management, Marketing by Tom Collins

July 27, 2006

Fire Destroys 170,000 Law Firm Files

10:31 am

On July 26, 2006, the Grapevine section of the United Kingdom-based online publication The .com reported on UK firms desperately trying to come to terms with the loss of 170,000 files destroyed in a massive east London warehouse fire. The publication noted that in the aftermath of the fire, one firm has new plans to convert all paper documents to electronic records.

The warehouse fire is another . It could happen to you!

As morepartnerincome has previously noted, electronic scanning is the only way to realistically protect the contents of paper documents from destruction in a disaster. As a bonus, you gain all the other advantages of digitized information and images.

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

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Filed under Disaster Recovery, Risk managment by Tom Collins

July 20, 2006

The Myth that Companies Hire Attorneys, Not Law Firms

10:09 am

There it was again! I was reading the current issue of the Journal and there it was—the old myth: “Companies hire , as apposed to .”

It isn’t always true. Companies, in particular, look for companies to do business with. have a life beyond the attorney. have organizational depth. have reputations that go beyond the resume of an individual attorney. Companies negotiate engagements with not with individual .

What does occur is that a dependency and trust develops between the company’s representative and the individual that they deal with. Thus, when clients are given the choice of following a departing attorney or staying with the existing law firm, some will elect to stick with who they know. Departing are always surprised, however, by how many of those clients elect not to follow them.

The compels its participants to cooperate during separation so as to respect the client’s right to choose their representation. Given that professional mindset, many would be surprised to find that some business clients consider such separation and competition for their business as an act of disloyalty. In the commercial world, employers don’t play nice with departing employees who intend to compete.

In the commercial world there is a similar myth. It is the mantra “first you sell yourself, then your company and finally the product.” It, too, is a myth. I once had a very important senior partner tell me that he didn’t have time to talk to a salesperson and besides, “when we decide to do something, we will already know what we want to buy and the company we want to buy it from.”

It is clearly true that the and salesperson has to sell themselves to win the business, but often it is the image and reputation of the organization that gives them the opportunity to do so.

Yes, building is extraordinarily important—in many cases, essential. It leads to business; but don’t kid yourself, you always represent a law firm. For most business buyers that is the important part of the mix. When you can add to that, a law firm representative [the attorney] that the prospect feels comfortable working with, then you have the winning formula.

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

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Filed under Marketing by Tom Collins

May 4, 2006

Law Firm Services: Too good, too expensive, and too inconvenient

11:05 am

Here is a lesson worth learning. According to the , Clayton Christensen, a Harvard Business School professor, has hypostatized that most organizations make products that are too good, too expensive, and too inconvenient for many customers.

recognized the same tendency in discussing the weakness that market leaders invariably develop over time. They continue to add features to satisfy marginal segments of the market, opening the opportunity for a competitor to enter the market at 20% of the cost with a product that satisfies 80% of the market.

What is important for the law firm is that this tendency isn’t limited to tangible products. Services are susceptible to the same condition. I should add that the reference to “too good” doesn’t refer to quality, but instead addresses the tendency of products to become “over-featured”. For the law firm, this is the equivalent of “over-lawyering”—applying complex solutions to simple situations.

Granted, there are times and issues where law firm clients want their to pull out all the stops. However, the majority of clients, business and non-business types, view their law firm experience as too inconvenient, overly complex, excessively lawyered, and too expensive. We hear the same mantra over and over again from law firm business clients: “We want a law firm concerned about lowering our legal cost.”

Clients are not looking for services at a cheaper price. They are looking for services appropriate to the situation, services that cost no more that the situation requires. Of course, they also want a court system that is faster, convenient, and predictable. They want a tax system that is simpler. They want less regulation. Unfortunately, we are never going to get back to just 10 Commandments, but that doesn’t stop the customers for legal services from wishing for simpler times. It is the very complexity of our legal systems that creates the demand for law firm services. Nevertheless, never forget that those same clients come to you to make things less complex, less inconvenient, and less expensive!

If you accept our Harvard professor's theory, then face opportunities and risks that are merely different sides of the same coin. can reap significant rewards if they make the solution to the customer’s legal needs simpler, less expensive, and easier for people to get. They risk losing business to providers (including alternatives to the law firm) who invent convenient, simple, and less expensive solutions. Look at TurboTax for a perfect example.

It is all about innovation and reinvention. Clayton Christensen calls it “disruptive innovation” and suggests that there are three key strategies:

  • Make it easier and simpler for people to get what they need
  • Provide good enough solutions to those with low-end requirements and risk
  • Remove barriers to consumption

If you are looking for a breakthrough growth strategy, start brainstorming about these three strategic directions. For example, what are the barriers to consumption? What keeps clients from being able to solve their own needs? What keeps people and businesses from seeking legal advice and services? What tactics could your law firm use to remove those barriers among its targeted clients? There are fortunes to be made by those who invent solutions to those barriers.

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

 

 

 

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Filed under Blog by Tom Collins

March 20, 2006

Brits find Humor in US Associate Compensation

12:18 pm

A March 15th post on The Lawyer.com read “…the US bonus race is a faintly comic sideshow. Over here, what matters are the for advancement—and the US firms barely score.” The comments were in reference to research about the partnership across the U.K., including those in the 30 significant US/international firms in London.

These observations should not be dismissed lightly. US firms really do appear to have overestimated the importance of associate compensation in attracting and retaining talent. Associate compensation is not the No.1 reason for lateral movement. It is professional development—or in the words of The .com, for advancement—that counts. Unfortunately, higher associate salaries seem to have become an ugly aspect of a law firm’s institutional ego—“We are the biggest and the best and therefore must have the highest paid associates.”

Midsized firms should take a lesson from the Brits. Devote more effort and invest more dollars in developing your talent into well-rounded leaders within your firm. As a payoff, you will take advantage of a work-experienced talent source—disenchanted associates looking for real professional growth and advancement.

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

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Filed under Compensation, HR by Tom Collins

November 11, 2005

Law Firm National Reach Is Overrated

11:37 am

Scott Gawlicki, reporting on Martindale-Hubbell’s 16th annual survey of general counsels in Corporate Legal Times, noted that only 29% of surveyed GCs considered it important for a law firm to have a national reach.

 

I recall talking to the founding partner of a prominent southern law firm who remarked, “We have the highest rates in the city. Most of our business is for New York clients and they consider us to be the best bargain around.”

 

Granted, if you are pursuing the top 10% of the Fortune 1000, size and location (including international) are important but the other 900 corporations in the Fortune 1000 have discovered the value of using mid-sized . In our own survey of , we found a significant concern over competition from larger firms. When we asked more detailed questions about lost business, it appeared that mega-firms did not have a material impact on fee revenue, client retention or the availability of talent.

 

Ninety percent of general counsels say they still rely on referrals (not size) when choosing a law firm. National reach or law firm growth is just not highly valued by the majority of general counsels. Jim Taronji, Jr., a 25-year veteran in-house and a former General Counsel, put it this way in a letter to the editor of Corporate Legal Times—that “message falls on deaf ears. A law firm becomes suspect to its clients if it only grows for the sake of growth.”

 

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