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Another Fine Issue of Law Practice Today

The February issue of Law Practice Today hit my inbox today.  As always, it has a number of great articles and information from leading experts and practitioners.  Dan Pinnington shares his expertise in Managing the Security and Privacy of Electronic Data in a Law Office.  Dan also provides a sneak peek at one of the more popular sessions at the ABA Techshow--60 Tips in 60 Minutes.  That session is always full of quick and valuable technology tips--and not just because I'm one of the tips presenters this year!

Ed Poll also weighs in on the subject of selling a law practice--a growing trend thanks to states continuing to change their Rules of Professional Conduct.  Finally, The BTI Consulting Group and  ABA Law Practice Management Section team up on a survey of law firm utilization.

I highly recommend Law Practice Today as monthly reading.  It is full of practical and useful information, and highlights important upcoming events of interest to lawyers in firms of all sizes.  Best of all you can subscribe for free. 

Files That Talk

As lawyers, we know that pictures speak a thousand words. We often use pictures and other visuals to persuade clients, juries, opposing counsel, government regulators, and others to see our point of view.  Pictures are powerful, but we are often ignorant of some of the most powerful images: The picture of how our clients view us as lawyers. 

Rest assured, clients reach conclusions about your qualities as a lawyer by extrapolating from the visible to the invisible. The condition of your office and files become vivid symbols of your skills and attitude toward your clients and their problems. 

Messy, disorganized files project carelessness, while neat, well-organized files convey concern, competence, and attention to detail. A cluttered office and desk can convey an image to a visiting client that you are too busy to effectively handle their legal matters. 

Other lawyers and judges also notice the condition of your files, so your reputation in the legal community, and consequently your effectiveness as a lawyer, is influenced by the messages they send.

Here is a proposed standard for file maintenance, as suggested by Alberta lawyer Paul McLaughlin in his book Welcome to Reality: A New Lawyer's Guide to Success: My clients can come in at any time and look through their files without their condition or contents embarrassing me.

Here is my proposed standard for office appearance: My clients can visit at any time without the condition of my office embarrassing me or causing the client to silently question my effectiveness and efficiency.

Meeting with clients in a conference room is, at best, a temporary solution to a messy office. Quite frankly, it’s a cop-out. The same goes for shoving documents in the file with the best intentions of neatly organizing it later—it only gets attention if the matter goes to trial or a hearing. In the meantime, clients and others are watching the mess grow.

Taking time to frequently organize your files and offices will provide your clients with a positive picture to take with them during and after the representation.

 Not a sermon, just a thought.

Buyer's Remorse

Buyer's remorse is not limited to the purchases of consumer electronics, homes and automobiles. Many clients also experience second‑thoughts about the lawyer or law firm they just hired.  They may never voice these thoughts to you, but there is something lawyers can do:  To reassure your new clients that they have made the right choice, immediately show a little extra client care: Personally call them within 24 hours to let them know you have commenced work on their behalf. Tactfully let them know this is a courtesy call at no-charge. Then send each new client a brief thank you note with a "gift." The "gift" could be a recent copy of your firm newsletter or a recent topical article you authored that relates to the client’s matter, thereby adding to the their confidence in your abilities while helping them to better understand the legal issues. The gift could merely be your business card that lists an unpublished telephone number for the client to reach you directly in an emergency, or it could be a book related to their legal issues, to convey to them that you care about them as a client. You get the idea, so go ahead an create the best “gift” for your firm or practice. This immediate special attention reduces the clients’ unspoken thoughts of remorse, and helps to build positive long‑term relationships.

Client Intake Risks, Part I

The initial client consultation is a risky time in the formation of an attorney-client relationship. There are ethical and financial risks, some of which are obvious, some of which are not. I'll be writing on these risks over the coming weeks to identify some of the less-obvious ones, and provide some suggested solutions.  Today I want to focus on accepting documents during an initial client interview.  It is best not to accept any original documents from the prospective client, until the client has retained your services.  Accepting the documents-- which are personal property--puts you at risk if the prospective client later claims you agreed to the representation.  Instead, immediately photocopy any original documents the client may have brought to the consultation and return those during the consult to the client. If the documents are too voluminous don't offer to copy and return them after the consultation--there are too many ways they could get lost or you get blamed for not returning them. Also consider modifying your client intake sheet to include a provision that the client gave you permission to photocopy any tendered original documents and an acknowledgment that they were, in fact, returned. 

It's one thing to accept original documents from a bona fide client, but it's another to take a risk on a person who has not yet formalized their relationship with you. 

Law Firms, Paralegals, and the FLSA

Jim Calloway has a post today about the effect of the new (August 2004) overtime regulations on law firms which employ paralegals.  His post includes a terrific article on the subject by Oklahoma attorney, Bill Wells, with specific references to prior FLSA decisions involving law firm paralegals.  It is estimated that half of all law firms classify their paralegals as "exempt" employees; however, with the buzz caused by these new regulations, it appears that some firms may have to take a new look at how they classify and pay their paralegals.  The National Federation of Paralegal Associations also has some helpful information on the exempt/non-exempt status of paralegals here.

Beam me up, Scotty!

Once again life now imitates TV with the release of the Vocera Communications Badge.  This tiny wearable wi-fi device allows the user to tap it, then communicate with others on the local area network.  The network software uses voice recognition technology to connect the requesting party with the party he or she is seeking.  Now in use in hospitals across the U.S., will U.S. law firms see the need to make the same trek? 

Merger Opportunities

Bruce MacEwen of Adam Smith, Esq. has an excellent post about the trends in law firm mergers, highlighted by the recent merger announcement of Shaw Pittman and Pillsbury Winthrop.  In his post, Bruce questions whether there is room in the market for medium-sized (100-400 lawyer) firms, then provides his answer: "In our brave new world, without a compelling regional or practice-specific expertise, I'm increasingly skeptical there is such room.  Choose critical mass or local excellence. " 

I think that is good news for law practice entrepreneurs.  Whether by choice or as a result of conflicts, a number of these lawyers will not join the merged firm.  Some may join other large firms, but others will start boutique practices using their big firm skills and contacts to create a smaller firm in their own image.  They will have a chance to build what Messieurs Shaw, Pittman, Pillsbury, and Winthrop did more than a generation ago.  The good news is that more resources exist today than fifty years ago to help these new entrepreneurs build their firm.  And while the stakes may seem higher now, I’ll bet the four above-named founders would disagree.

God, I love the smell of capitalism in the morning!

A Lawyer Unpaid is Justice Denied

I believe that lawyers are meant to be lawyers and not bankers, yet I talk to too many lawyers whose clients owe them significant sums of money. So why do we take on such financial risk in addition to the professional risks of representing a client?  It's because many lawyers feel uncomfortable talking about money with clients.  We often don't have a thorough discussion at the beginning of a legal matter, and we generally don't want to confront the client with the issue until the amount owing is already too high.  I co-authored an article on this topic several years ago that was picked up by several professional journals.   The concepts we discuss in the article still apply today.  By focusing on the reasons why a client is not paying the fee, a lawyer can often create a solution to get paid.  Proving once again that it pays to on top of your accounts receivable.

What's Hot in 2005

Long-time Law Practice magazine columnist and strategic marketing guru, Robert Denney, shares his 16th annual report on the pulse of the legal services market in the current issue of Law Practice magazine.  His “What’s Hot and What’s Not” is always worth a read.  So what’s hot, according to Denney?  Employment law, IP, and contingency litigation are “red hot”, while white collar crime, real estate, corporate, immigration, education & school law, and Indian & gaming law are among the hottest areas.  There are some areas starting to heat up including mergers and acquisitions, media law, health-care mediation, and pharmaceutical work.  Cooling off are bankruptcy, personal injury, and environmental work.   As for marketing trends, seminars are still a great way to attract attention, according to Denney. Extranets are cooling fast, and “branding” is cooling too.  Finally, Denney adds in a few trends in law firm management and governance, including the fact that many firms remain undercapitalized, firms are not sufficiently dealing with culture issues, and law firm leaders are still not receiving sufficient management and leadership training.  Can I get an “Amen?”

Go West, Young Man!

My good friend Jim Calloway of the Oklahoma Bar Association and I are pleased to present a noontime CLE program at the Utah State Bar on Friday, February 11, 2005, in conjunction with the ABA Mid-Year Meeting in Salt Lake City.  The two-hour seminar will cover marketing and management issues that confront many solo and small firm practitioners.  We will be joined by the Utah Bar's Communications Director and resident tech guru, Toby Brown.  Join us if you can!