Reid My Blog!

A Lesson From Starbucks

In case you hadn't heard, Starbucks is closing all of its stores today at 5:30 to retrain their baristas and enhance the customer experience. It is another in a series of steps initiated by CEO Howard Schultz to "revisit the standards of quality that are the foundation for the trust that our customers have in our coffee and in all of us. Schultz also views it as "a time to celebrate who we are and to be proud of what we have built." Powerful stuff that offers several lessons to those of us in the legal profession.

1. Closing the doors to devote time to enhancing the customer experience is an expensive endeavor. All costs and no revenue for 3 hours. OK, maybe it is a slow time at many outlets, but it is still making a commitment to all customers and to the future well-being of Starbucks. How many law firms close to enhance the experience of their clients?

2. Howard's real reason for the closings may be to make more money in the long run, but he is focusing it on rebuilding the trust of the consumer. Far more admirable, but ultimately with the same result. Never underestimate the power of trust in an attorney-client relationship.

3. Rather than just announce a temporary closing, Starbucks has trumpeted the store closings and the reasons why for several weeks. And the media has obliged with stories about getting your afternoon Starbucks fix early today. It has been a great marketing coup.  They are letting their customers know they have heard their complaints and are making the answer very public.

So take a page from Starbucks, set a date for staff training focused on client service, announce to your clients that you are closing for an afternoon to enhance their experience. It will deliver multiple benefits, just ask Howard Schultz!

Must-Read Essay on Our Changing Profession

I encourage every lawyer—especially young lawyers—to read this outstanding article about the evolution of law practice over the past fifty plus years.  Author Abe Krash, a 50-year veteran of the legal profession, does a terrific job of recounting the changes he has witnessed—both good and bad--from his vantage point in what is now a large D.C.-based law firm, Arnold & Porter.  His comprehensive article avoids many of the typical war stories, and focuses on the evolution of the profession by addressing topics such as specialization, billable hours, technology, multi-office law firms, ethics, demographics, and money.

Beware; the article is long, but worth every minute of your valuable time to obtain such insight. Often, looking back in time can help us gain perspective to create our own preferred future.

I only know Abe Krash by his stellar reputation in the DC Bar; after reading his article, maybe I’ll call him to see if he’d like to have lunch. Despite the long article, I'd like to learn more.

My iPhone Rocks!

In neglecting my blog for the month of January, I=ve not had the opportunity to brag about my Apple iPhone that I received for Christmas.  That month away from blogging gave me a chance to learn my iPhone and put it to the test.  The verdict?  I=m in love with my iPhone.

I spent a good deal of time researching the iPhone, before and after I posted my holiday gift guide.  Since the iPhone was introduced this past summer there has been a number of good posts and reviews across the Internet, here, here and here. In sum, the reviews of the iPhone are very favorable, provided you know what you are getting with the AT&T cellular system.  Because I am already on AT&T, I put the iPhone on the top of my Christmas list. Thanks, Santa!

My Take: Like my MacBook Pro, even the packaging containing the iPhone was thoughtful, artistic and practical. (Showing once again that small things do matter!)  The activation manual was sparse because the iPhone is so intuitive.  Even in the early hours of Christmas Day, the Apple servers quickly activated my phone, and I was set for a day of tinkering and exploring.  And had we not had family plans, I might have spent the entire day just with my new phone.

My iPhone replaced my Motorola Razr phone.  There is no comparison.  The reception quality of the iPhone is far superior. The sound quality too. Far superior.  The phone controls, such as volume and hands-free speaker are superior too.  In addition, the size and feel of the iPhone is much better for those of us with larger hands. Good riddance, Razr!

However, the best thing about the iPhone hardware is the touch screen.  The touch screen rocks.  The touch screen keypad for the phone is the easiest of any phone cell phone I have ever owned.  And despite less than stellar reviews of the QWERTY keyboard, I have grown accustomed to it with ease.

The iPhone software is as elegant as the hardware.  The phone itself is easy to use, adding new contacts via the keyboard is intuitive; however, I have had some difficulty moving my contacts in Outlook to the iPhone.  It’s a Windows to Mac issue, but I resolved it with Outlook 2 Mac software.

Transferring my contacts from my MacBook Pro was much easier.  As was transferring my songs, videos, and pictures in iTunes. Love iTunes.

Although the iPhone does not support e-mail via Microsoft Exchange, it was easy to set up to receive e-mail via my Gmail account--with a little help from Google.  There is also an Apple video showing this process.

While the iPhone is very intuitive, I took advantage of a free training session offered by Apple at their retail stores.  The time was well spent and helped me learn my phone, as well as additional features on my MacBook Pro.

But the coolest feature of the phone is the Google Map is function.  Seeing this is worth a trip to the Apple store or find a complete stranger with an iPhone, and ask them to see it! Or just watch this video. When the Locate Me icon is touched, it engages the new Google feature that uses cell phone triangulation to pinpoint your location on a map.  Then, using the keyboard, enter search words such as Arestaurants@ or Alibrary@.  Google places markers on the map where those establishments are located. Touch one of those markers and the name of the establishment pops up. Touch that name and detailed information about that establishment is presented.  Information such as their street address, website address, and phone number.  Touch that phone number and the iPhone will instantly call that establishment.  I have found it very helpful.  I recently took my first trip to the Big Island of Hawaii, and was unfamiliar with local restaurants and shopping.  However, using Google Maps I was able to find restaurants and call for reservations--all without asking the hotel concierge or firing up my laptop.  Really useful and way cool.

Finally, the number of web-based applications for the iPhone continues to grow.  Apple has a list conveniently located on their website.  So rather than gunk up the phone, the software remains on the Web.  Now is a good time to mention that the monthly fee for all iPhone data transfers is a mere $20. That=s about half what other smart phones data service plans cost, making web apps cost-effective as well as convenient.

I could go on, but my point should be clear: the Apple iPhone is a huge step in smart phone technology. Some might view the iPhone as a toy; others might call it a necessary business tool. I=m in the Atool@ camp, but consider it as fun as a new toy!

So now I have gone All-Apple: My laptop is a MacBook Pro and my smart phone is an iPhone. I guess with my growing love of Apple products, I should probably buy stock.  Maybe next Christmas. Until then, I'll track the share price via my iPhone. How convenient!

Google Phone Preview Set for Monday

Google's entry into the smartphone arena is set for a sneak preview on Monday at the Mobile World Congress in Barcelona.  Google's open-source alliance of more than 30 companies world-wide is developing the Android platform to challenge Apple's iPhone and Nokia--which is positioning itself as a leader in content as well as device manufacturing.  Few commentators have noticed Nokia's purchases of Navteq (the information provider behind Mapquest, Google Maps, and others) and Trolltech, as they move from device maker to be a location-based content provider across multiple phone platforms. 

What does this mean to lawyers and their firms? Competition for RIM's Blackberries, Apple iPhones, and Palm and Windows Mobile devices. Competition brings more choices, often better choices, and lower pricing. Google's so-called "gPhone" is expected in the second half of 2008, and Nokia's acquisitions will speed development of additional application in their phones and in others'. RIM is not standing still waiting for these competitors; witness their new designs reported by Engadget.

2008 is shaping up to be an exciting year for new mobile devices for busy lawyers.

Still Time to Register for Techshow at Early-Bird Rate

The ABA Techshow is less than six weeks away, still plenty of time to register and make travel arrangements to be there; however, if you want the low early-bird rate, you must register by February 8. Techshow remains one of the best legal conferences in North America today, providing terrific educational sessions, an opportunity to see and evaluate the best in law office technology, and maybe the best of all, to network with other lawyers from across the U.S. and Canada. (Nothing like working out a little business while working on your business!)

Techshow remains conveniently in Chicago, but has moved across town to the Chicago Hilton, which promises to be a great new layout for getting more out of the conference. One of my favorite new events in 2007 returns this year too: Taste of Techshow, is an opportunity to enjoy a small group dinner at a wonderful local restaurant with other lawyers interested in using technology to improve their law firms. I co-hosted a table last year with 2007 Techshow chair, Dan Pinnington, and we both agree it was a great evening. Look for the Taste of Techshow sign-up at the Techshow Concierge Desk at the Chicago Hilton.

Law Firms Top Forbes Profitability Survey

Citing the low cost of entry and a steady flow of lawsuits, Forbes.com lists legal services as one of the most profitable businesses to start in America. Statistically, says Forbes, "[b]ean counters trumped all, with a 25% average pretax margin. Next came the legal-service firms, at 21.6%, followed by dental offices (20.9%) and specialty design shops (17.6%).  Specialization helps in health services, too. Chiropractors, optometrists, podiatrists, and physical, speech and mental health therapists--the fifth most profitable group as a whole, with a 17.5% margin."

I bet that comes as a surprise to many smaller law firms in the U.S. who are facing rising labor and real estate costs, but a slow-down in the rate of fee increases.  However, I have worked with a number of firms that will not settle for less than 25% pre-tax, and some who can raise that five or more points.

Still, it is nice to know that despite the demands of practicing law today, if managed properly, a firm can be among the most profitable businesses to launch and build today.