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START UP KIT FOR A SMALL LAW PRACTICE
Compiled by the Law Practice Management Program
and Law Practice Management Committee of the State Bar of Texas
TABLE OF CONTENTS
(Click on any BLUE link below to view articles)
SMALL FIRM LAW PRACTICE START-UP CHECKLIST
AQUIRE SPACE
TEXAS LAWYER’S CREED
GRIEVANCE INFORMATION BROCHURE
STARTING YOUR OWN PRACTICE
SELF-EVALUATION AND READINESS TEST
WHO’S YOUR DADDY? WHO DO I NEED TO KNOW AND HOW DO I MEET THEM?
HOW TO BUILD STRONG CLIENT RELATIONSHIPS
MARKETING – WHAT ARE YOU ALREADY DOING RIGHT?
BUSINESS DEVELOPMENT – FOLLOW UP OR FALL DOWN
CREATIVITY AND INNOVATION AS A MARKETING TACTIC
START UP KIT FOR A SMALL LAW PRACTICE
Compiled by the Law Practice Management Program
and Law Practice Management Committee of the State Bar of Texas
TABLE OF CONTENTS
(Click on any BLUE link below to view articles)
DIFFERENTIATION BY DESIGN
GET REMEMBERED
INTERNAL AND EXTERNAL FILE ORGANIZATION
PLANNING FOR FINANCIAL SUCCESS
ESTABLISHING INTERNAL CONTROLS
DEVELOP TIME MANAGEMENT SYSTEMS
THE JOY OF TIMEKEEPING
TO HIRE OR NOT TO HIRE
STATE BAR OF TEXAS RESOURCES YOU NEVER KNEW EXISTED
Law Practice Management Program
State Bar of Texas
P.O. Box 12487
Austin, Texas 78711-2487
800-204-2222, ext. 1300
www.TexasBarLPM.com
STATE BAR OF TEXAS
LAW PRACTICE MANAGEMENT PROGRAM
SMALL FIRM LAW PRACTICE START-UP CHECKLIST
This checklist addresses only those matters that are basic when opening a new small law
practice. The items listed under each heading are not intended to be exhaustive. Not all items or
headings apply to every practice start-up.
The Law Practice Management Program’s staff is available to provide further help and
assistance to deal with any of the issues mentioned here, or with practice start-up in general.
--------------------------------------------------------------------------------------------------------------------
A
ARTICULATE YOUR PRACTICE VISION
1.
2.
3.
4.
Mission / Vision / Values Statement
Target Market Statement
Core Services Statement
Practice Environment Statement
B
DEVELOP YOUR BUSINESS PLAN AND BUDGET
1.
2.
3.
4.
5.
6.
Marketing
Production
Personnel
Systems and Technology
Communications
Finance & Budget
C
IMPLEMENT YOUR PLAN
1.
Write up Partnership or Space-Sharing Agreement
2.
Acquire Space
* Location
* Layout, including wiring for equipment
* Lease details
* Signage
3.
Acquire Furniture
* Lawyer
* Secretary
* Client areas (reception, meeting room)
* Filing cabinets, safe
4.
Acquire Supplies
* Paper supplies (stationery, envelopes, business cards, note pads, telephone message
pads, post-it pads, etc.)
* Other supplies (paper clips, scissors, tape dispensers with tape, staplers, staples, staple
removers, pens, pencils, erasers, calculators, computer disks, letter openers, hole punch,
book ends, etc.)
5.
Acquire Software
* Word processing
* Time and billing
* Accounting
* Calendaring / Docket control
* Conflict checking
* Client and file information
6.
Acquire Equipment
* Computers, printer, modem, network, backup
* Cost-recovery devices
* Telephone
* Facsimile
* Copier (with collator, document feeder)
* Postage scale, meter
* Dictation Equipment
7.
Acquire Insurance
* Commercial Property and General Liability Insurance
* Business Auto Coverage
* Professional Liability Insurance
* Workers Compensation and Employer=s Liability
* Commercial Umbrella Coverage and Excess Policies
* Health, Disability and Life Insurance: State Bar Insurance Trust
8.
Acquire Legal Resources
* Texts, reports, digests, periodicals
* Computer research (WestLaw, Lexis-Nexis)
* MyTexasBar.com (FindLaw)
9.
Arrange for Services
* Process Server
* Investigator
* Courier
* Court Reporter
* CPA
* Accounting Staff/ Clerical Support Staff
10.
Court Information
11.
Develop Paper-Handling Systems
* File opening
* Filing
* Mail, FAX, and deliveries
* Phone messages
* Receipt journals for incoming monies, client documents and property
* Log for outgoing client documents and property
12.
Develop Client and File Information Systems
* File index or data base
* Client index or data base
* Conflict of Interest Procedures
13.
Develop Time Management Systems
* Dual calendar for appointments and appearances, etc.
* File calendaring system
* Limitations and deadlines system
* Timekeeping
* Case planning
14.
Start Policies and Procedures Manual
15.
Develop Systems for Legal Procedures
* (e.g., real estate checklists)
16.
Develop Personnel Policies
* Job Descriptions
* Salaries and benefits
* Workplace policies
* Confidentiality policy
* Hiring (recruiting, interviewing, selecting, negotiating terms, etc.)
* Orienting, training, supervising, evaluating
* Payroll policies
17.
Make Banking, Credit Arrangements
* Open trust and general accounts
* Check into IOLTA requirements
* LOC/ bank or family loan/ overdraft
* Office credit cards
18.
Develop Bookkeeping / Accounting Procedures
* Trust accounting procedures
* General accounting procedures (timekeeping, disbursements, billing procedures and
cycles, accounts receivable, revenue and expenses posting, month-end procedures,
payroll)
19.
Develop Financial Information System
* Aged accounts receivable, aged work-in progress, monthly cash and credit analysis,
monthly budget analysis
* Accounts receivable follow-up
20.
Establish Pricing Policies
* Setting Fees
* Disbursements recovery policies
21.
Establish Client Relations Policies
* Communicating fees and deadlines to clients
* Engagement, non-engagement and disengagement letters
* Copies to clients policies
* Documents packaging policies
* Phone call return policy
22.
Register with Lawyer Referral
23.
Announce Your New Practice
* To existing clients
* To lawyers and judges
* To potential clients
* To the public
24.
Start Marketing
* Open house
* Yellow pages
* Advertising
25.
Seek Out State Bar Help
* Management Advisors
* Assistance
Acquire Space
By Gisela B. Bradley
Will you look for a space sharing arrangement or executive suite? Look at both and see
which arrangement is best meeting your needs. There are generally two types of space
sharing arrangements. One where each lawyer is responsible for an equal share of the
rent and other expenses and participates in decisions as an equal co-tenant or, two,
arrangements where a lawyer rents unoccupied office space from another lawyer, a group
of lawyers, or a firm and has little or no input into office decision making. An executive
suite is a space in an office building that is subdivided into smaller offices which are then
rented out to a variety of businesses (i.e. Consultants, Marketers, Lawyers, Accountants,
etc.). In an executive suite arrangement, the overhead expenses are normally shared on a
prorated basis and often you will find support services, such as, secretarial support,
clerical support, courier services, etc. Depending on your geographical area you may
find some office buildings where only lawyers are leasing office space and maybe
sharing conference rooms, libraries, equipment, etc.
Regardless of where you decide to open your office, by now you will have given
some thought as to what type of clientele you will be serving and what practice area you
will be in. This will help you determine if you want your office to be in close proximity
to the courthouse, a copy center, a secretarial pool, or your home. When you find the
proper location, look at the layout and how the premises are equipped, for example, with
wiring. Wiring for your computers and other equipment must be sufficient to
accommodate your technological tools.
If you decide to go into an office sharing arrangement, be sure to pay close
attention to the signage outside. You will want to make sure that you don’t create the
appearance of being associated with any other tenants and you want to put particular
emphasis on being a “sole practitioner.” When it comes time to review your lease, you
may want to look at a copy of the Law Office Management Program brochure, ‘How to
Evaluate Your Office Leasing Needs’ found below:
How to Evaluate Your Office Leasing Needs
Leasing smart is an intregal part of your practice being on the Road to Success!
Office space is often the second largest operating expense of most law firms
today. If that is your case, perhaps it is time to renegotiate or find lease space
more in line with the needs of your firm. Plan for the future. Make sure your lease
takes into consideration your firm's future needs. While taking our suggestions
into consideration, please keep in mind that leasing requirements for each firm
will vary.
Following are definitions of some commonly used lease terms. These definitions
are meant to give you some foundation for evaluating a lease.
Actual Rent is comprised of net rent plus operating expenses, and real estate
taxes assessed on the building.
Net Rent is the actual amount paid for the space.
Operating Expense is the cost of operating the building. Be sure and set the
operating expense high enough to prevent substantial increases in future years of
the lease.
Real Estate Taxes should be based on a fully occupied building and
representative of other comparable buildings in the locality.
Net Cost is the same as net rent. It is the actual amount paid for the space.
DON'T be sold by "cheap rent"; often this may be the net cost before operating
expenses and taxes are added.
Gross Cost is the amount of money you pay for the space leased, common area
spaces, operating expenses, and your portion of the real estate taxes on the
building. A good rule to remember is that you should pay for taxes and operating
expenses of the building based on full occupancy of the building. KNOW what
your actual rent with gross costs will be, and what services are actually included
in your gross cost.
"Stop-Gap" is a provision that can be made in a lease that prevents operating
costs from exceeding a fixed amount (usually percentage) in any given lease year.
This type of provision can be beneficial to you!
Market Rent is a term used for comparable space, in a comparable building, in
the same lease area.
Arbitration Provision is a provision in the lease which allows you an opportunity
to bring in an independent person to help you and the Landlord agree upon the
market rent or other issues and disputes.
Long Term Options: Locking in long-term rates at competitive prices while still
keeping provisions for your firm's safety net -- i.e., lease reduction or lease
expansion options are a good concept to plan for the growth of your firm. This is
especially important if you are just starting out and are not certain about how
your firm will grow.
Right of First Refusal Option: Everyone hopes to see their firm prosper and
grow. On the other hand, everyone dislikes the move that is often necessitated by
the growth. Moving is expensive! It is better to get a right of first refusal on any
empty space that adjoins your current space. This way, if you grow unexpectedly,
you already have an option to lease adjoining space--no expensive move or costly
change of address!
Space Reduction Options: The lease should also include clauses dealing with
issues that are important to you in the present and the future, such as subleasing,
assignment provisions, space reduction options and lease termination rights.
These provisions should be determined up-front and included in your lease. There
may be a penalty to exercise these options. In the long run, however, this may still
be the most cost effective route for your firm to take.
Lease Termination Options: This option gives you the right to terminate a lease
at some point prior to the expiration of the lease. Like the space reduction option,
most cancellation options involve a one-time right -- usually six to twelve months
into your initial lease period.
A general rule of thumb to consider is that the larger the space canceled, the
longer the notice period. The penalty usually involves a percentage of the
Landlord's up-front leasing costs.
Also consider in your lease termination options:
1.
2.
3.
4.
5.
Landlord's inability to provide adequate expansion space.
A merger or acquisition.
A death or disability of firm's primary income source.
The dissolution of the firm.
The firm ceases doing business in that city.
Demographics: Do you know what part of the state you want to be located in?
Have you considered what the average attorney is making in that area or what the
office space will cost you? You might want to take a look at the demographics for
the area. A good place to start is the State Bar of Texas. The Research & Analysis
department does a periodic study of the entire state and can often provide you
with helpful information.
Practice Area Considerations: Does the space you are evaluating take into
consideration the client needs in the area of law in which you practice? If you do
personal injury, is your office easily accessible to your injured clients? You might
consider locating on the first floor. If you practice family law, is your office in
such a high traffic area that a client might feel their confidentiality is
compromised? If you practice social security law, does your office location take
into consideration the possible special needs of your client? Take a little time to
consider the needs of your current client base, as well as the type of clients you
wish to acquire as your firm grows.
Research Tool Accessibility: If you do not have your own library, you might take
into consideration the location of the nearest library. Is there another attorney in
the building who is willing to share their library for a small fee, or better yet...for
free?
Growth!!: The best scenario occurs and you grow beyond your projections. Is
there space on either side of your existing space to grow into?
Flexibility: How flexible is your landlord? If you underestimate your growth, will
they try to accommodate you? If they are inflexible in this, your initial
negotiations with them, do you really want to sign a long term lease.
Property Management: Will maintenance be easily obtainable? Is the property
manager easy to deal with?
Compliance with State and Federal Laws: Confirm with your potential landlord
and physically survey the property to ascertain if the building meets with all state
and federal requirements. You should be especially careful about compliance with
the Americans With Disabilities Act (ADA). If you fall under the purview of the
ADA, you may have some duty to make sure your lease space complies with ADA
requirements.
Parking: Is adequate, accessible parking provided for employees and clients?
Checking for Safety: Obtain a Police Report of the Neighborhood -- be certain
there have not been excessive crimes and/or vandalism reported in and around
the surrounding area. Is the parking area safe for your employees and clients? Do
your employees work late at night? If so, you might want to drive by at night to
see if the environment changes. If your lease space has a security system, there
may be some savings on your insurance rates.
Do not overestimate the value of highly designed or finished-out space. This type
of space could make it harder to sublease. More conventional and practical
finished space usually sublets more quickly and at a higher dollar value. Don't let
the wrapping on the package fool you!
Negotiating a cost-saving long-term lease is not as practical in the long run if
your firm is unable to grow later because of lack of space availability. Be certain
that you have the potential to add space if your firm continues on a growth path,
as well as the ability to sublease some of the space if your firm has to downsize. It
is much easier, more cost effective, and promotes good client relations, to acquire
more space and/or to downsize at the same location than to have to move your
business.
Before entering into an office lease, do your own investigation. Evaluate the area
to be leased for your needs. Weigh the pros and cons of leasing to see if leasing is
what is right for your particular situation. Consider your leasing needs today, but
be sure to plan for the future... happy leasing!
Gisela B. Bradley is the founder and CEO of Law Practice Management Consulting.
Prior to Law Practice Management Consulting she served Texas attorneys with practice
management advice and education as the first director of the Law Practice Management
Program of the State Bar of Texas. She successfully built this program from the start and
designed and developed the products and services offered. During her almost eleven
years of service at the State Bar of Texas she developed award-winning educational
programs, authored numerous articles on legal management trends, and presented
workshops and seminars on local, state and national levels. She also consulted with law
firms and individual attorneys on improving their management practices.
Before coming to the State Bar of Texas Ms. Bradley managed law firms of varying sizes
for fifteen years.
Ms. Bradley served on the American Bar Association's Law Practice Management
Advisors' Committee from 1996 to 2005. She also serves on several Advisory Boards of
legal consulting and attorney training firms.
Ms. Bradley focuses on assisting solo and small firm practitioners in improving the
efficiency of their client service, and increasing their productivity while enhancing the
quality of their work product. She provides management consultations to firms as well as
individual management coaching to attorneys.
Examples of accomplishments at the State Bar of Texas include:
Writing the Start Up Kit For A Small Law Practice, a step-by-step guide to opening
your own law office;
Developing and presenting Planning to Conquer the Real World of Private Practice, a
practical preparation course for law students;
Developing and presenting The Law Office Management Institute, a 12-months
comprehensive management training course for attorneys;
Developing How to Organize and Manage Your Law Practice, a series of seminars for
12 practice specific areas.
Ms. Bradley received her BA in Liberal Studies with a major in Accounting from St.
Edward's University in Austin, Texas
lawyers from the public should provide the
The desire for respect and confidence by
solution have become part of the problem.
use abusive tactics instead of being part of the
delay and often deny justice. The lawyers who
Such behavior does not serve justice but tends to
civility to outright hostility and obstructionism.
The abusive tactics range from lack of
clients, and demeaning to our profession.
tactics are a disservice to our citizens, harmful to
in many parts of our country. We believe such
of lawyers of abusive tactics which have surfaced
eliminating a practice in our State by a minority
of Criminal Appeals are committed to
The Supreme Court of Texas and the Court
profession's broader duty to the legal system.
client, a lawyer must be ever mindful of the
ness. In fulfilling his or her primary duty to a
terized at all times by honesty, candor, and fair-
The conduct of a lawyer should be charac-
Order of
The Supreme Court of Texas
and
The Court of Criminal Appeals
upon
the
mission, project by project, grant by grant. In the
litigation or arguments over whether or not they
In Chambers, this 7th day of November, 1989.
a part hereof.
for Professionalism" as attached hereto and made
adopt "The Texas Lawyer's Creed -- A Mandate
of Criminal Appeals hereby promulgate and
The Supreme Court of Texas and the Court
responsibility to the legal system.
faithfully serve our clients, and fulfill our
restore public confidence in our profession,
rededicate ourselves to practice law so we can
guidance. Let us now as a profession each
ranks of our profession for leadership and
members of our citizenry have looked to the
Throughout the history of our nation, the
public service. We have a proud tradition.
art we pursue a common calling in the spirit of
of law is a profession. As members of a learned
We must always be mindful that the practice
legal
assistance
to
individuals,
or
Web address: www.txbf.org
MCM
LXV
Texas 78711-2487. Call 1 (800) 204-2222 ext.2135.
Texas Bar Foundation P.O. Box 12487, Austin,
or for additional information, please contact the
To make a gift, request a grant application,
in a remarkably swift period of time.
law-related public need can be evaluated and funded
decisions. The grant process moves efficiently, and a
attorneys, evaluate the requests and make the funding
Revenue Service. Trustees, three of whom are not
organizations classified as 501(c)3 by the Internal
grant program. Requests for funding are accepted from
The Foundation board of trustees administers the
succeeds in making a difference in people’s lives.
strengthening the justice system, the Bar Foundation
providing
young and abused. Whether by educating the public,
limited access to the legal system - the poor, elderly,
process, it serves people who, historically, have
successive year, the Foundation has accomplished its
have been observed.
charitable aims of the lawyers of Texas. With each
lawyers can use and abuse to incite ancillary
Texas Bar Foundation as an expression of the
In 1965, the founding attorneys established the
forums; and the education of the public.
encouragement of legal research, publications and
profession; legal assistance for the needy; the
to
These standards are not a set of rules that
inherent powers and rules already in existence.
enforcement by the courts through their
opinion, and finally when necessary by
reinforcement by peer pressure and public
secondarily
relate
administration of justice; ethics in the legal
compliance,
that
voluntary
programs
especially
for
rule of law and the system of justice in Texas,
rules depends primarily upon understanding and
contributions and provides funding to enhance the
The Texas Bar Foundation solicits charitable
Mission of The Bar Foundation
primarily aspirational. Compliance with the
and professional conduct. These rules are
incentive to attain the highest degree of ethical
members of our profession with the necessary
Printed and Distributed
Courtesy of
Texas Bar Foundation
and
Texas Center for Legal Ethics
and Professionalism
Promulgated by
The Supreme Court of Texas
and
The Court of Criminal Appeals
A Mandate For Professionalism
The Texas
Lawyer’s Creed
A lawyer owes to a client allegiance, learning,
skill, and industry. A lawyer shall employ all
appropriate legal means to protect and advance the
client’s legitimate rights, claims, and objectives. A
lawyer shall not be deterred by any real or imagined
fear of judicial disfavor or public unpopularity, nor be
influenced by mere self-interest.
1. I will advise my client of the contents of this
creed when undertaking representation.
2. I will endeavor to achieve my client’s lawful
objectives in legal transactions and in litigation
as quickly and economically as possible.
3. I will be loyal and committed to my client’s
lawful objectives, but I will not permit that
II. Lawyer To Client
A lawyer owes to the administration of justice
personal dignity, integrity, and independence. A lawyer
should always adhere to the highest principles of
professionalism.
1. I am passionately proud of my profession.
Therefore, “My word is my bond.”
2. I am responsible to assure that all persons
have access to competent representation
regardless of wealth or position in life.
3. I commit myself to an adequate and
effective pro bono program.
4. I am obligated to educate my clients, the
public, and other lawyers regarding the spirit and
letter of this Creed.
5. I will always be conscious of my duty to the
judicial system.
I. Our Legal System
I am a lawyer. I am entrusted by the People of
Texas to preserve and improve our legal system. I am
licensed by the Supreme Court of Texas. I must
therefore abide by the Texas Disciplinary Rules of
Professional Conduct, but I know that Professionalism
requires more than merely avoiding the violation of
laws and rules. I am committed to this Creed for no
other reason than it is right.
The Texas Lawyer's Creed
A Mandate for Professionalism
The Supreme Court of Texas
and The Court of Criminal Appeals
A lawyer owes to opposing counsel, in the conduct
of legal transactions and the pursuit of litigation, courtesy, candor, cooperation, and scrupulous observance of
all agreements and mutual understandings. Ill feelings
between clients shall not influence a lawyer’s conduct,
attitude, or demeanor toward opposing counsel. A
lawyer shall not engage in unprofessional conduct in
retaliation against other unprofessional conduct.
1. I will be courteous, civil, and prompt in oral
and written communications.
2. I will not quarrel over matters of form or
style, but I will concentrate on matters of
substance.
3. I will identify for other counsel or parties all
changes I have made in documents submitted for
review.
4. I will attempt to prepare documents which
correctly reflect the agreement of the parties. I will
not include provisions which have not been
agreed upon or omit provisions which are
necessary to reflect the agreement of the parties.
III. Lawyer To Lawyer
loyalty and commitment to interfere with my duty
to provide objective and independent advice.
4. I will advise my client that civility and
courtesy are expected and are not a sign of
weakness.
5. I will advise my client of proper and
expected behavior.
6. I will treat adverse parties and witnesses
with fairness and due consideration. A client has
no right to demand that I abuse anyone or indulge
in any offensive conduct.
7. I will advise my client that we will not pursue
conduct which is intended primarily to harass or
drain the financial resources of the opposing party.
8. I will advise my client that we will not pursue
tactics which are intended primarily for delay.
9. I will advise my client that we will not pursue
any course of action which is without merit.
10. I will advise my client that I reserve the right
to determine whether to grant accommodations to
opposing counsel in all matters that do not
adversely affect my client’s lawful objectives. A
client has no right to instruct me to refuse
reasonable requests made by other counsel.
11. I will advise my client regarding the
availability of mediation, arbitration, and other
alternative methods of resolving and settling
disputes.
5. I will notify opposing counsel, and, if
appropriate, the Court or other persons, as soon
as practicable, when hearings, depositions,
meetings, conferences or closings are cancelled.
6. I will agree to reasonable requests for
extensions of time and for waiver of procedural
formalities, provided legitimate objectives of my
client will not be adversely affected.
7. I will not serve motions or pleadings in any
manner that unfairly limits another party’s
opportunity to respond.
8. I will attempt to resolve by agreement my
objections to matters contained in pleadings and
discovery requests and responses.
9. I can disagree without being disagreeable. I
recognize that effective representation does not
require antagonistic or obnoxious behavior. I will
neither encourage nor knowingly permit my client
or anyone under my control to do anything which
would be unethical or improper if done by me.
10. I will not, without good cause, attribute bad
motives or unethical conduct to opposing counsel
nor bring the profession into disrepute by
unfounded accusations of impropriety. I will avoid
disparaging personal remarks or acrimony towards
opposing counsel, parties and witnesses. I will not
be influenced by any ill feeling between clients. I
will abstain from any allusion to personal
peculiarities or idiosyncrasies of opposing counsel.
11. I will not take advantage, by causing any
default or dismissal to be rendered, when I know
the identity of an opposing counsel, without first
inquiring about that counsel’s intention to
proceed.
12. I will promptly submit orders to the Court.
I will deliver copies to opposing counsel before or
contemporaneously with submission to the Court.
I will promptly approve the form of orders which
accurately reflect the substance of the rulings of
the Court.
13. I will not attempt to gain an unfair advantage
by sending the Court or its staff correspondence or
copies of correspondence.
14. I will not arbitrarily schedule a deposition,
Court appearance, or hearing until a good faith
effort has been made to schedule it by agreement.
15. I will readily stipulate to undisputed facts in
order to avoid needless costs or inconvenience
for any party.
16. I will refrain from excessive and abusive
discovery.
Lawyers and judges owe each other respect,
diligence, candor, punctuality, and protection against
unjust and improper criticism and attack. Lawyers and
judges are equally responsible to protect the dignity and
independence of the Court and the profession.
1. I will always recognize that the position of
judge is the symbol of both the judicial system and
administration of justice. I will refrain from
conduct that degrades this symbol.
2. I will conduct myself in Court in a
professional manner and demonstrate my respect
for the Court and the law.
3. I will treat counsel, opposing parties,
the Court, and members of the Court staff with
courtesy and civility.
4. I will be punctual.
5. I will not engage in any conduct which
offends the dignity and decorum of proceedings.
6. I will not knowingly misrepresent,
mischaracterize, misquote or miscite facts or
authorities to gain an advantage.
7. I will respect the rulings of the Court.
8. I will give the issues in controversy
deliberate, impartial and studied analysis and
consideration.
9. I will be considerate of the time constraints
and pressures imposed upon the Court, Court staff
and counsel in efforts to administer justice and
resolve disputes.
IV. Lawyer And Judge
17. I will comply with all reasonable discovery
requests. I will not resist discovery requests which
are not objectionable. I will not make objections
nor give instructions to a witness for the purpose
of delaying or obstructing the discovery process.
I will encourage witnesses to respond to all
deposition questions which are reasonably
understandable. I will neither encourage nor
permit my witness to quibble about words where
their meaning is reasonably clear.
18. I will not seek Court intervention to obtain
discovery which is clearly improper and not
discoverable.
19. I will not seek sanctions or disqualification
unless it is necessary for protection of my client’s
lawful objectives or is fully justified by the
circumstances.
THE STATE BAR OF TEXAS
you nor the lawyer has the right to appear before the
Summary Disposition Panel. The Panel reviews the
complaint, together with any information, documents,
and evidence deemed necessary for it to make its ruling.
No testimony is taken at the hearing. If the Panel determines that dismissal is appropriate, all parties are so
notified.
What is a Summary Disposition Panel and who is on it?
State Bar grievance committees are composed of volunteer lawyers and members of the public which serve in
49 district disciplinary districts across the state. Each
committee is composed of 2/3 lawyer members and 1/3
public members. The committees act in panels that are
also 2/3 lawyer members and 1/3 public members. The
Summary Disposition Panel is a panel of a grievance
committee that is responsible for deciding whether a
complaint should be dismissed based upon the recommendation of the Chief Disciplinary Counsel or should
proceed.
Can I testify at a Summary Disposition Panel meeting?
No. The Summary Disposition Panel reviews the case
without oral testimony from any party.
Can either party appeal a decision by the Summary
Disposition Panel?
No. There is no appeal from a determination by the
Summary Disposition Panel that the complaint should
proceed or be dismissed.
How will I know what happens with the grievance that
I file?
You will receive notification in writing about the status
of your grievance throughout each step of the grievance
process.
What happens to lawyers who have been found guilty
of professional misconduct?
The lawyer may receive one or more of the following
sanctions, depending upon the severity of the case.
These include: (1) a reprimand, which may be public or
private; (2) suspension from the practice of law, all or
part of which may be probated; or (3) disbarment. Any
public sanction an attorney receives for professional misconduct will become a permanent part of the attorney’s
record.
Does the State Bar offer any other avenue of recourse
for a complainant who has a dispute with a lawyer
that is not resolved through the attorney disciplinary
system?
Possibly. At any stage of the grievance process at which a
complainant’s grievance is dismissed, the matter is
referred to a voluntary mediation and dispute resolution
procedure, the Client-Attorney Assistance Program.
Should that occur, you will be provided further information about that program.
Who do I contact if I have other questions about the
disciplinary process?
If you have questions prior to filing a grievance, please
call the Grievance Information Helpline at 800-9321900. If you have questions after you have filed a grievance, please call the Chief Disciplinary Counsel’s office
at 866-224-5999 or write the Chief Disciplinary Counsel’s office at the address below.
Office of the Chief Disciplinary Counsel
State Bar of Texas
P.O. Box 12487
Austin, Texas 78711-2487
1-866-224-5999 (toll free)
AT T O R N E Y
COMPLAINT
I N F O R M AT I O N
Can anything be done for clients whose money has
been stolen by their attorney?
Yes. The Client Security Fund is a discretionary fund
maintained by the State Bar that may provide some relief
to clients under certain circumstances. In order to seek
relief, application must be made with the Fund and the
applicant must have participated in the attorney disciplinary process (unless the lawyer is already deceased,
disbarred or resigned, or on an indefinite disability suspension prior to completion of the applicant's complaint against the lawyer). Under certain circumstances,
clients may be eligible for financial relief from this
source. The Client Security Fund does not address legal
malpractice damages, disputes over the amount charged
for legal services, dissatisfaction with the outcome
achieved by the lawyer, or recovery of monies paid to
another attorney for work that was not done by the
lawyer complained about.
This brochure answers some common questions about
the State Bar’s attorney disciplinar y system. If you
have any questions about this process that are not
answered in this brochure, please call the Grievance
Information Helpline of the State Bar of Texas at 18 0 0 - 9 3 2 -1 9 0 0 .
What if I believe I have a claim for legal malpractice?
Neither the State Bar nor the Chief Disciplinary Counsel can advise you regarding what claims, if any, you may
have for legal malpractice. The State Bar does not have
any ability to pursue or in any fashion become involved
in whatever claims you may have with regard to legal
malpractice on the part of the lawyer. If you believe you
have such a claim, you should seek advice from a private
attorney of your choosing.
35515 8/07
All lawyers in Texas have an obligation to maintain a
high standard of ethical conduct toward their clients
and others. To enforce this standard, the State Bar of
Texas investigates and prosecutes complaints of professional misconduct against attorneys licensed in
Texas, pursuant to the Texas Rules of Disciplinary
Procedure as promulgated by the Supreme Court of
Texas.
What rules are lawyers required to follow?
For purposes of professional discipline, the ethical rules
that attorneys must follow are called the Texas Disciplinary Rules of Professional Conduct. These rules may be
found at www.texasbar.com. They are also printed in the
Texas Government Code (Title 2, Subtitle G-Appendix
A, Article 10, section 9), or you may call 1-800-9321900 to request a copy for $15.00.
Should I file a grievance?
Reporting unethical behavior of Texas lawyers helps
reduce and prevent harm to the public and the legal profession. In order for the State Bar to investigate the attorney's conduct, the person seeking to complain about the
attorney must file a written grievance describing the
attorney's conduct with the State Bar. The Bar’s Grievance Information Helpline (1-800-932-1900) can assist
you in determining whether to report the conduct of the
lawyer and whether other resources might be beneficial.
Is there a statute of limitations on filing a grievance?
Yes. With a few exceptions, there is a four-year statute of
limitations on filing a grievance. This means that you
usually have four years from the time the alleged misconduct occurred to file a grievance with the State Bar.
Must I be the person who hired the lawyer in order to
file a complaint?
No. Any person with knowledge of what they believe to
be professional misconduct by a lawyer has the ability to
file a complaint.
How do I file a grievance?
The first step in filing a grievance is to complete a grievance form and mail it to the State Bar Chief Disciplinary
Counsel’s office. If you have obtained a grievance form
from the State Bar, it should be mailed to the address
shown at the bottom of the form. It is important that
you mail your grievance to the appropriate office for
review. This would be the office closest to where the
attorney’s office is located. The office addresses can be
found on the State Bar's website or you can call and
obtain that information from the Grievance Information
Helpline at 1-800-932-1900, or by calling the Chief
Disciplinary Counsel’s office toll free at 866-224-5999.
nary Appeals (BODA) within 30 days from notification
of the dismissal. BODA will review the grievance and
make an independent determination about whether the
grievance states a violation of the ethical rules. BODA
may agree with the Chief Disciplinary Counsel's decision or it may reverse the classification decision. If
BODA grants the appeal and reverses the classification
decision, the grievance is referred back to the Chief Disciplinary Counsel for investigation.
Please be sure to include with your grievance form
copies (not originals) of any documentation – such as
letters or pleadings – that you believe are important in
understanding your grievance.
Can I amend and re-file my grievance?
Are grievances confidential?
If you are reporting the conduct of a lawyer who is or
was representing you in a legal matter, it is very important to know that signing the grievance form waives the
attorney-client privilege that would otherwise keep discussions between you and your lawyer confidential.
Waiver of this privilege is necessary for the State Bar to
review your grievance in its entirety.
Information about a pending grievance against a lawyer
is confidential and not subject to disclosure unless it is
ordered by a court to do so or the lawyer complained
about waives confidentiality. However, if the lawyer is
found to have committed professional misconduct and
receives a public sanction, information about the grievance is no longer confidential.
What happens after I file a grievance?
The Chief Disciplinary Counsel’s staff will review the
grievance to determine whether the allegations violate
any of the ethical rules. This is called the “classification
stage” of the disciplinary process.
A grievance that does not allege a violation of the ethical
rules is classified as an “inquiry” and dismissed. You will
be notified of the dismissal and the matter will be
referred to the Client-Attorney Assistance Program for a
voluntary mediation and dispute resolution procedure.
Can I appeal the dismissal of the grievance?
Yes. You have one opportunity to file an appeal of the
classification to the Supreme Court’s Board of Discipli-
Yes. If BODA denies your appeal and affirms the dismissal of your grievance, you can amend the dismissed
grievance with new or additional information and resubmit it to the Chief Disciplinary Counsel’s office within
20 days of your receipt of BODA’s notice. The amended
grievance must contain new or additional information
and may be amended one time only.
What happens if my grievance does state a rule
violation?
If it is determined that the grievance does state a rule
violation, it is classified as a “complaint.” The lawyer
complained about is sent a copy of the complaint and
asked to respond to the allegation(s) and submit a
response in writing within 30 days. The Chief Disciplinary Counsel will then conduct a "just cause" investigation, reviewing all of the information received from the
complaining party and the accused attorney and any
additional information gathered in order to decide
whether there is just cause to believe that professional
misconduct occurred.
What happens after the just cause investigation is
completed?
If the Chief Disciplinary Counsel concludes that there is
just cause to believe professional misconduct occurred,
the lawyer is notified of what conduct is complained
about and what ethical rules are alleged to have been violated. The lawyer is given a choice of whether to have a
panel of a grievance committee or a district judge hear
the case.
A petition is then filed with either an Evidentiary Panel
or a district court by the Chief Disciplinary Counsel on
behalf of the Commission for Lawyer Discipline. The
case will then be set for trial either before an Evidentiary
Panel of a grievance committee or a district court.
What happens if my complaint proceeds to an
evidentiary hearing?
An Evidentiary Panel is a panel of a grievance committee composed of 2/3 lawyer members and 1/3 nonlawyer members who hear and consider the evidence
and decide whether the lawyer has committed professional misconduct. Witness examination may be conducted only by the Commission for Lawyer Discipline
and the Evidentiary Panel members. The admission or
exclusion of evidence shall be in the discretion of the
Evidentiary Panel chair. After conducting the Evidentiary hearing, the Evidentiary Panel will issue a judgment of its decision within 30 days on whether or not
the attorney is found to have committed professional
misconduct. All parties are notified of the Evidentiary
Panel’s decision.
Can I appeal an Evidentiary Panel’s decision if I don’t
agree with it?
No. Evidentiary decisions are not appealable by the
complainant.
What happens if my complaint proceeds to a trial in
district court?
A jury may be requested by the Commission for Lawyer
Discipline or the accused lawyer. Evidence in a district
court trial may include your testimony, the lawyer’s testimony and possibly the testimony of additional witnesses in addition to any documented evidence submitted to the court. The trial court will enter judgment after
the close of evidence or after the return of the jury’s verdict.
If I disagree with the result reached at a district court
trial, can I appeal?
No. District Court decisions are not appealable by the
complainant.
What happens if just cause is not found?
If the Chief Disciplinary Counsel concludes that just
cause does not exist to believe that the attorney committed professional misconduct, the matter is presented
to a Summary Disposition Panel with a recommendation that the complaint should be dismissed. Neither
STARTING YOUR OWN PRACTICE
PROS v. CONS
By Susan Johnston
I.
Introduction
Licensed to practice law? Then you can do it. Yes, you can do it even if you
have no money, no friends, no family, and no potential clients. I didn’t say it would be
easy, but you can start and eventually have, a successful practice.
Should you start your own practice? Are you the kind of person who likes the
security of a steady paycheck? Would you prefer that someone else handles balancing
your checkbook and paying your household bills? Would you like to go to work and
know that you have insurance and retirement benefits established for you and not be
bothered with the details? If you answered “yes” to one or more of these questions,
starting your own practice might not be the best option for you—at least not right now
and especially if you do not have or cannot afford a knowledgeable assistant.
However, if you answered “no” to the above questions, or you have an accountant
or extremely detailed and trustworthy person on board, then you might consider these
questions. Do you get a bit of a rush when you imagine yourself as an entrepreneur? Do
you like the idea of knowing there is no “cap” on your salary? Are you a bit of a “control
freak?” If you answered “yes” to one or more of these questions, perhaps you should
seriously consider starting your own practice.
Why should you bother to listen to me? I really have no idea other than I’ve been
practicing law for twenty-one years—and even when I worked for the state as a briefing
attorney and later as a prosecutor, I always had a little bonafide real estate practice on the
side. No longer do I juggle any employers with my self-employment. I did, however, in
2001, marry my law partner which has its own “pros and cons”—if you know what I
mean.
When I asked if anyone had any ideas or information for this article, I was told
that there are numerous resources out there—especially on the State Bar of Texas and
ABA’s websites. I admit I didn’t look them up, but you should if you’re seriously
thinking about opening up your own practice. It’s just too late for me—I’ve done it.
Besides, if I read them now, they will only help me to plagiarize someone else’s work,
and I went through that on a report in junior high. It was not a good thing. I will admit,
however, that I have accessed the Law Practice Management Program’s site in improving
my practice, and I even called upon LPM for an in-house evaluation and training session,
which was quite beneficial.
Listed below are just some of the “pros and cons” you may want to consider
before starting your own practice. No doubt, because each of us is unique and has
different responsibilities regarding family, obligations, and other interests, you have your
own personal issues to add in making your decision.
II.
Taking the plunge into the waters of your own practice:
PROS v. CONS
PROS:
1. You choose the type of law to practice.
CONS:
1. You will have to learn
something about the area
you’ve chosen.
Pick an area and attend a legal seminar on the subject. Not only will you learn something
which will help you in your practice, but you will gain those much-needed CLE hours.
Remember, you’re paying for the CLE yourself, so make the most out of it. Get to know
others in your area that are practicing law and can help with ideas, networking, etc.
These lawyers might even have some contract work to assign to you which could only
help in training you and bringing in some income. If you are interested in going to the
courthouse, talk to judges about putting your name on appointment lists—ad litems,
criminal cases, etc. These are great opportunities to gain experience and get recognized.
You will need to be energetic and enthusiastic. If you already have a client/case base,
you will still need to get to work.
2. You choose where to practice.
2. Some places are
expensive.
I’m not talking about geography—I assume you will pick a state or country where you
are allowed to practice and you will pick a city where you want to live. I’m talking
about your office—the “space” so to speak. Depending on the type of practice you’ve
chosen, you may be able to work out of your house or car or even have one of
those “virtual” offices considering the technology available these days. If the idea of a
nice office building with a well-furnished suite outfitted with equipment, supplies and
staff is more your style—this will cost money. And paying more means most likely
working more. The best advice I ever received was the simple comment, “keep your
overhead low.” If you start small, as your practice grows, you can have more.
3. You choose the clients.
3. You will occasionally
represent someone you do
not like.
Sometimes, because you need the money or you just feel like you should, you will
represent someone you do not like. The good news is that it is still your decision to take
the case and not a boss’s mandate. Other times, you may start off quite well with a client,
but just like in other relationships, things may digress to an increasingly unpleasant
existence. You can ride it out or if it’s just not worth it, you can bail. That’s the beauty
of Motions to Withdraw as Counsel or Motions to Substitute Counsel.
4. You set your hours.
4. You may set a lot of
hours.
Especially just starting out, you may have to work some evenings and weekends on top of
your regular work week. Look at it this way, as soon as you get things going, you can
start planning that vacation that you will get to take—and when you decide it’s time.
Also, with advanced technology available, you can do desk work and research outside
of the office. My laptop and portable printer are usually with me. With wireless
Internet and my “Remote Desktop” software, I can access my office computer from
practically anywhere in the world. I can pull up client files, type documents, do the
office accounting and bill paying, communicate with my staff, etc.—all in the most
playful and exotic locations. Your client doesn’t have to know you’re working on his
case while your thawing out in between ski runs.
5. You set the fee.
5. You will have to
determine what is
reasonable.
Your fee must be reasonable. Sometimes trying to decide what the client can pay and
what is really fair for the work gets a bit tricky. Believe it or not, especially just starting
out, it seems like (and I was one of them) new lawyers actually do not charge enough
for their services. Maybe it’s because they don’t believe they are worth much or they
don’t want to scare the client off, or maybe it’s a combination of both. Remember, if you
think you’re not worth much, odds are, everyone else may feel the same about you.
Check around to see what others are quoting for the same service.
In my practice, I bill differently depending on the type of case it is. Upfront flat fees
work well for criminal cases; after-the-work flat fees work well for real estate
transactions; and contingency fees work well for the few plaintiff’s cases I handle. I do
very little hourly billing. I am into “value” billing 1) because it seems fairer to me and
to the client and 2) because I am really lousy at keeping up with my hours. You will have
to decide what works well for you. You also will have to set up some type of billing
system.
Example: A client comes to me to represent her in a DWI. My fee contract sets out
that I will charge a flat fee for “handling the matter through disposition other than by jury
trial.” I have another amount set out for the cost of a jury trial. The contract also
addresses that the attorney’s fees do not include costs for experts, investigators, court
fees, bail bonds, etc. This fee arrangement allows for very little misunderstanding
between me and the client. It allows me to get paid a fair amount even if I work the case
out in a day, and it doesn’t punish the client if I have to spend hours doing research on
an issue that another lawyer might have already known about. (FYI: For obvious
reasons
the State Bar does not allow us to charge contingency fees on criminal cases). I used to
allow criminal clients to pay out their fees as their cases moved along. I learned pretty
quickly that once someone goes to prison, he usually (go figure) does not pay off his
legal bill.
6. You hire.
6. You fire.
Being the boss, you get to decide who you want as coworkers. Believe it or not,
some people do not always work as well as their interview went. After hiring and
before firing comes the nasty part of watching over employees which includes their hours
and their work performance. Most of the attorneys I know are horrible at managing
their staff. They are also horrible at managing their associate lawyers. This probably
is because most lawyers want to practice law and not “administrate,” but it is a necessary
part of owning your own practice. You will also have to either hire an accountant or
figure out how to handle fun things--like payroll taxes.
I have been through many legal assistants. Every time I hire a new one, I come up with a
new rule. Once you start hiring, you will probably see what I mean. Some lawyers
manage without any assistants—it’s just them and their cell phones. You will
have to decide if you need one or more assistants to help you in your practice.
Perhaps you are in a position to hire an office administrator, receptionist, bookkeeper,
paralegal, errand runner, etc. If you are, then good for you. Most of us have to hire at
least one person. You should hope that this person doesn’t mind doing a variety of
things—most of all, making you look competent, reliable, compassionate, and efficient. I
tell you now, this person is hard to find. And, if you find him (or her), hard to keep.
7. You will make money.
7. You will have to manage
your money.
Starting out, you will need some front money. If you do not have some saved, prepare
to borrow. You may have to establish a line of credit, or you may be able to use just a
credit card. Be mindful of interest rates and try not to get in over your head with debt.
Open a business checking account and determine if you need an IOLTA account.
Invest enough initially to get you off the ground with supplies, equipment, staff, etc., but
unless you have a blank check, you probably don’t want to start out buying that solid
mahogany desk. Decide how much money you need to make and then set out a plan to
get there. In essence, establish a budget and a business plan. If you, like most of us, are
doing this actually to make a living, you need to think about establishing a retirement
plan. You will also need to think about insurance—all kinds—including health, life,
disability, malpractice, etc. Your office is going to need a lot of the money that comes
in your door, but I’m also thinking you are going to need to take some home too. That
means you will be paying two sets of bills—one for the home and one for the office. The
list of expenses for both are long—so be prepared. If you can afford an accountant to
help you with determining what counts as a business expense and how much and when to
make tax payments, then do so. The money issues are the single biggest distraction to my
practice of law, and I have an accountant.
8. You’re in charge.
8. You’re in charge.
Yes, your privilege of calling the shots is an enormous responsibility. This general
statement has been alluded to throughout this article. You get to decide how to dress,
talk, act, manage, etc. You can create your look and your style, but know that it’s easy
to be branded before you realize it. If you’re the type to frequent the bars during work
hours, it will most likely be noticed. If you don’t want to invest much in your wardrobe,
it might be noticed. These things may not matter depending on your type of practice.
I’ve been known to bring my Yorkshire terrier, Maya, to work. It does result in
in some odd looks, but the girls at the bank on the first floor of my building love her.
This silly little companion may not really help my practice, but I’m willing to take the
risk. You may have certain “quirks” to your practice which contribute to your own
unique style. Just be genuine and aware of the possible consequences. And yes, that old
cliché, “Perception is reality,” really works. So, just act like you are a successful lawyer
and most likely the act will work. You’ll think I’m kidding but the one area you should
not skimp on is kindness. You should be nice, even if it’s an act. People are already
skeptical and distrusting of lawyers. Psychologists say if you force yourself to smile, just
the act alone for some reason makes you feel better. So go with it. Besides, hateful,
grumpy lawyers put out a bad image and put the rest of us in a bad mood. If you’re
nice, you will feel better about yourself, and you will either directly or indirectly, reap the
benefits. Trust me, I’m a lawyer.
III.
Conclusion
As you work through your decision to start your own practice, write down what is
important to you. Ask yourself what really motivates you. . . .is it money, recognition,
the satisfaction of helping others, independence, etc.? Consider not only the “pros and
cons” set out in this article, but come up with your own benefits and drawbacks to
working for yourself. Think hard about going at it alone or sharing space with other
lawyers. Examine your personality and how you function best. Talk to people. Talk to
your family. Utilize the State Bar and specifically, the Law Practice Management
Committee for information. Do not be afraid to ask for help. You can start your own
practice, and you can be successful.
Susan K. Johnston
Susan K. Johnston is a partner in the firm of Johnston & Johnston located in
Waco, Texas and has been practicing law for 20+ years. Susan is a member
of the Law Practice Management Committee and a graduate of Baylor
University School of Law.
Self-Evaluation and Readiness Test
Erich M. Birch, P.E.
Birch & Becker, LLP
7000 N. MoPac Expressway, 2nd Floor
Austin, Texas 78731
(512) 514-6747, (512) 258-9199 – fax
www.birchbecker.com
Introduction
The purpose of this paper is to discuss the issues a lawyer should consider before making
the jump into a solo law practice or other small firm environment. The decision to be
totally self-sufficient should reflect the lawyer’s beliefs that he or she can provide
competent legal services, can attract clients, and is prepared for the business of running a
law firm. This paper will help the lawyer evaluate the reality of the business portion of
the conviction, i.e., are you prepared to run a law firm?
The paper is written from the perspective of a lawyer who has some level of legal
experience, i.e., a lawyer who is already working in a law firm, for a corporation, in
government service, etc. It is important to note this perspective because the paper
assumes that the lawyer has already developed a legal expertise and has been somewhat
exposed to the business side of the practice of law. Although the guidelines presented are
equally useful to the brand new lawyer who intends to “hang out a shingle” immediately
upon graduation, the new lawyer should recognize and be forewarned that he or she will
have the additional challenges of learning the law, learning how to practice law, and
trying to gain exposure to clients while also attending to the important business matters
discussed below. This is not to discourage the new lawyer; obviously there are many
successful law firms that have been started by brand new lawyers. Instead the new
lawyer should just be aware that these additional areas need to be considered when
writing a business plan for the new firm.
The “self-evaluation and readiness test,” focuses on the time period immediately prior to
the start of a new law firm. This paper is part of a multi-series program offered by the
State Bar and it therefore should be considered in context with the other topics in the
series. In particular, the Business Plan is a crucial element of the preparation required for
a lawyer launching a new firm. Many of the details that will help determine the
smoothness of the firm’s take-off and flight will be determined by the attention given to
the Business Plan. This paper will discuss some, but by no means all of the details that
need to be addressed in a well developed Business Plan.
It should also be noted that although this paper discusses the self-evaluation issues
involved with the details of starting a new firm, there is another self-evaluation that is
even more important. This is the self-evaluation that helps determine whether the lawyer
truly has the desire to be a solo/small firm lawyer and has the skills, discipline, marketing
abilities, etc. to be successful. This paper assumes that the personal assessment has
already been conducted, and the lawyer is now in the tactical and preparation phases of
the firm’s life.
Countdown to Take-off
Regardless of the reasons behind the lawyer’s decision to launch a new law practice, the
time period immediately prior to the start of the firm can be the most exciting, but also
the most unsettling. Interrupted sleep patterns will likely be the hallmark during this time
period as uncertainties concerning finances, clients, office issues, self-confidence, etc.,
often seem much larger during the wee hours of the morning. Shortly after the
resignation letter has been handed in, these issues will come more clearly into focus.
However, if the issues have been properly addressed in advance, the anxiety associated
with the decision to leave the familiar for the unknown can be greatly reduced.
There are two time periods when the lawyer should affirmatively and deliberately
evaluate whether sufficient preparation has been made to start the firm. Before the notice
of resignation is submitted to the employer is the obvious first time, and the second is
shortly before the first day of business for the new firm.
Self-Evaluation:
“T minus 30 days – Tomorrow I turn in my resignation”
Before announcing your decision to cut the umbilical cord with your current employer is
the time for a serious self-evaluation. The act of submitting your resignation is usually an
irrevocable decision, and so thereafter is not the time to discover that you aren’t quite as
ready as you thought you were. Even if your employer would consider reinstating your
position, the relationship would never be the same as you have now breached your
loyalty and tipped your hand that you have entrepreneurial inclinations.
Significant planning should have occurred prior to the day of submitting your notice of
resignation, and the self-evaluation is a “gut check” as to whether you are ready to fly.
Similar to a pilot’s review of the flight checklist before even taxiing to the runway, the
lawyer should also make sure that all systems are flight ready before starting the 30-day
(or whatever resignation notice period applies) clock.
Assuming the lawyer is currently employed, it is unlikely that his or her work will stop
the moment the resignation is submitted. In fact, in light of the lawyer’s ethical duty to
manage the client’s work, the time period from the resignation day to the first day of
business at the new firm may be very busy. As you busy yourself preparing letters to
notify clients of your departure, work on the transfer of your cases to your new office (or
Page 2 of 8
Erich M. Birch
November 28, 2001
to another lawyer), address the hassle of cleaning out your office and moving, make
yourself available for the goodbye lunches, etc., you will find 30 days consumed in a
flash. For this reason, the lawyer must be truly realistic about the self-evaluation and
assessment whether things really are in order. Before you know it, you’ll be sitting at
your new desk (if you remembered to order one).
The following items, in my opinion, are essential to the “T minus 30 day” evaluation:
1. Business Plan. Most of the items on the lawyer’s checklist can be generated from the
already prepared business plan. In fact, completion of the business plan is the very
first, and likely the most important self-evaluation item to consider. The reason for
this is because the process of preparing the business plan forces you to consider most
of the other issues that should be addressed. It is also for this reason that the business
plan must be an original document, created by the lawyer himself or herself.
Although the use of a “go by” business plan is helpful and encouraged, mindless
plagiarism of a business plan is a waste of time and may instill an artificial sense of
readiness. The work and fruit of the business plan is the painstaking effort of
working through the details of your new firm, e.g., assessing where you expect your
clients to come from, defining what specific services you will offer (and which you
affirmatively will not offer), estimating how much time you will spend marketing and
where you will direct your marketing efforts, understanding how much fee income
you must generate to make your firm profitable, etc.
Self-evaluation reality-check No. 1: If your business plan is not complete, you are
not ready to resign.
2. Are You Ready for the Independent Life? Leaving the comfort and security of an
employer to blaze one’s own trail is not for everyone. Of course the prior statement
assumes there really is “comfort” and “security” with the current employer. As part
of the self-evaluation the soon-to-be lawyer entrepreneur should confirm that he or
she has the constitution for the job. Employees live sheltered lives. Someone else
manages the firm/company; someone does the marketing; an accounting department
sends out the bills and collects when the bills are overdue; like clockwork, a paycheck
arrives on the desk twice a month. So why would an employee choose to give up this
sheltered life to risk the unknown of entrepreneurialship? Obviously many
nevertheless take this road, and in fact, certain character traits are common to the
independent type. Some have created personality tests that help evaluate whether a
person fits the independent mold, and an example of one of these tests may be found
in the appendix to this paper.
Self-evaluation reality-check No. 2: If you don’t pass the “independent at heart” test,
then you might want to pass the opportunity to resign.
Page 3 of 8
Erich M. Birch
November 28, 2001
3. Finances. Since most entrepreneurs will already worry about the financial aspects
of starting a new business more than anything else, there is little need to emphasize
the importance of this issue. Financial planning issues should also be thoroughly
addressed in the business plan. Needless to say, prior to resignation day the lawyer
should have a very clear understanding of how much it will cost to start and operate
the firm, where the money will come from to start the firm, and how long it will take
before the firm is profitable. In the typical practice, assuming client billable work
starts immediately, the lawyer will still probably not see the first client check for
about three months.
Self-evaluation reality-check No. 3: If you can’t quote your estimated monthly
expenses or your anticipated monthly income, but you’re pretty sure the finances will
“work themselves out,” then let’s just hope your spouse makes a lot of money.
4. Office Arrangements. By this time the lawyer should have selected the new firm’s
office location, signed a lease, ordered or arranged to order computers, printers,
furniture, etc., have the phone systems in the works, made arrangements for internet
and long distance services, arranged for secretarial and administrative support, etc.,
etc. Whether you need an office at all is a question in today’s high technology world.
A growing number of lawyers are finding that certain types of practices can be
conducted from an office located at the lawyers home, resulting in a much reduced
overhead without any sacrifice in work quality or service to the client. Regardless,
the lawyer must have addressed office issues, especially if the employer abruptly
responds with the “why don’t you just leave today!” response to your notice of
termination. It won’t be apparent how important all of the details really are until your
first week of business and you reach for your, e.g., staple machine, business cards,
Texas Statutes, malpractice insurer phone number, etc., and find they aren’t there.
Self-evaluation reality-check No. 4: If you can’t recite the address and telephone
number of your new office, then maybe today’s not the day to resign.
5. Confidants and Advisors. There is a proverb that says: “In the multitude of
counselors is safety.” Although it is possible to start a business based completely on
your own research and intuition, it is unnecessary and somewhat foolish, especially
since there are good resources available. Chief among these resources is the State
Bar’s Law Office Management Program. Personnel within this office are helpful,
knowledgeable, and have a large library of resource information available for use by
the lawyer entrepreneur. This office can also provide a confidential sounding board
as the lawyer debates whether going it alone is the right thing to do. In addition, the
lawyer should also meet with solo and small firm lawyers and other small business
owners who might shed light on their experiences in starting a business. I have yet to
meet a small business owner who isn’t flattered and excited when asked to share their
insight about the opportunities and pitfalls in starting a business.
Page 4 of 8
Erich M. Birch
November 28, 2001
Self-evaluation reality-check No. 5: If you haven’t discussed your plans with
impartial counselors and listened to a few horror stories, you might want to hold onto
that resignation letter.
6. Timing & Schedule. A timeline can be a very helpful tool for setting targets and
tracking progress as you prepare to open for business. In fact, the timeline really
should be prepared long before resignation day, and the resignation day itself should
be a milestone on the timeline. A well-planned timeline will reveal the long leadtime items and will help you to set realistic goals and factor in other issues that might
affect your plans. For example, if your business form requires a filing and entails a
certain lead time then the date for filing these documents should be entered on the
timeline well in advance of the day you open for business. Also, if your current
employer typically awards bonuses at a certain time of the year it would certainly be
prudent to take this into account as you set your resignation date.
Self-evaluation reality-check No. 6: If you are not sure today is the day to resign,
because you don’t have a schedule telling you today is the day to resign, then today
isn’t the day to resign.
7. Readiness Test “Dry Run.” The second part of the self-evaluation is a readiness
test. There are two times (at least) that you should take yourself through this list of
readiness items. The first time is a dry run through the list as part of your preresignation self-evaluation. The second time is the final exam, i.e., the day before
you start your business. If during your dry run you realize that there are still lots of
things to do, it is not necessarily a reason to hold onto your resignation letter, but you
will then have created a list of things to do so that you are prepared for the final exam
in 30 days.
Self-evaluation reality-check No. 7: If my readiness test “dry run” reveals that I am
not prepared to start work, then I have lots to do over the next 30 days.
The self-evaluation items identified above are obviously not all-inclusive. However, the
items should encompass most of the key issues, and can act as a barometer to gauge the
overall intensity of your preparation and planning. In other words, if you have
thoroughly addressed the above issues, it is a good bet that you’ve adequately addressed
the other issues that aren’t mentioned above. It is now time for a more detailed checklist.
Readiness Test:
Page 5 of 8
Erich M. Birch
November 28, 2001
“It’s Monday morning at the new firm – What will I do today??!!”
So, you really did it – you’ve resigned and will now hang out your own shingle.
Tomorrow is the first day of business… then what? The purpose of this next part of the
self-evaluation is to provide the seed for a checklist of things that should be considered in
preparation for the first day of business. The list asks Who, What, When and Where
questions about your readiness to start practicing law on day one. In some cases
italicized comments have been added to clarify the question. If you don’t have a ready
answer to each question, then you’ve still got work to do.
•
Who…
o am I? [Last week you were an employee; this week you are owner,
manager, administrator, bookkeeper, marketer, etc.]
o will take care of my administrative and paralegal tasks? [Do you have an
assistant, or do you plan to do some or all of these tasks yourself? Have
you delineated who will do what?]
o is my first client?
o is my next client? [If you don’t know who your next (or first) client will
be, then marketing would appear to be a high item of attention.]
o will I call to start generating/referring work?
o will I meet for lunch? [The solo lawyer especially should schedule
lunches routinely to avoid feelings of loneliness and to stay connected with
the profession. This is also a great marketing tool. But, don’t wait for the
phone to ring; you should initiate the calls and schedule the lunches,
otherwise they probably won’t happen.]
•
What…
o is the name of my firm? [You should get use to saying it – proudly.]
o are my areas of practice? [Consult your business plan.]
o clients & matters will I refuse to accept? [When times are slow you will
be tempted to take these matters – could be a mistake. Ask your advisors
for some war stories about cases they knew were a mistake from the
beginning.]
o are my billing arrangements? [Do I have an accounting system? Do I
have a format for printing invoices?]
o is the first client matter on which I will work?
o will I do if I have nothing to do? [Options: marketing activities,
straighten up the office, play golf, knock-off early?]
•
When…
o is my first day of business?
o will I arrive for work in the morning?
Page 6 of 8
Erich M. Birch
November 28, 2001
o will I quit for the day? [It is very easy for the solo/small firm attorney to
become a workaholic. Obviously long hours may be required in the
beginning, but eventually the lawyer should establish a working routine.]
o do I expect my first check from a client? [When do I mail my first bill?
When is payment due? Will the firm accept credit cards?]
o will I pay myself?
o are the bills due?
o are taxes due?
o will I mail my new firm announcements?
o will I place my announcement in the Texas Lawyer and local bar
magazines?
•
Where…
o is my office?
o is my next meal coming from?
The above list is a start, however, it is at best a sampling of the details that need to be
addressed when starting a new firm. Once the idea to start a firm takes life, throughout
the day and into the night the budding entrepreneurial lawyer will likely experience
flashes of ideas, things to-do, and worries about the budding firm. If each of these
“flashes” is added to a “firm start-up checklist,” the lawyer will eventually have a
custom-made list of things to review as the startup date approaches.
Obviously there are other sources of helpful information from which startup lists can be
obtained. As mentioned earlier, the State Bar’s Law Office Management Program has an
excellent library of resources. I also found Jay Fooberg’s “How to Start and Build a Law
Practice” to be very helpful. The back of the book contains a management checklist that
lists over 500 items to consider in the operation of a law firm. In addition, the web is a
seemingly endless source of information. Many sites containing small business and law
firm-specific startup information can be found on the web. (See, e.g., Heiros Gamos at
http://www.hg.org/sbcenter.html, the ABA’s site at http://www.abanet.org, and the State
Bar’s Program at: http://www.texasbar.com/members/buildpractice/lomp/index.htm.)
Conclusion
In conclusion I would like to encourage the would-be entrepreneur to follow his or her
dream. I have now worked for a large corporation, the government and for a mid-size
law firm. The startup and operation of my own law practice has been by far the most
rewarding. The time spent on planning and preparation will remove the mystery from the
startup process and will help ensure the successful startup of your new venture.
Page 7 of 8
Erich M. Birch
November 28, 2001
Appendix
Are You Independent at Heart?
1.
2.
3.
4.
5.
6.
7.
8.
9.
Do you work best when you’re in control of the project?
Do you tend to question authority?
Do you consider yourself a nonconformist or outsider?
Do you enjoy making your own rules?
Do you resent office politics and power games?
Is having control over the hours you work very important?
Do you work well by yourself?
Do you like spending time alone?
Are you motivated more by your own desire to do the job well than by
the expectations of others?
10. Do you like variety and dealing with new challenges?
If you answered “yes” to most of these questions, you probably want to be on your own
badly enough to overcome the inevitable challenges of solo practice.
Excerpted from The Complete Guide to Contract Lawyering by Deborah Arron & Deborah Guyol (Niche
Press 2nd ed. 1999)
Page 8 of 8
Erich M. Birch
November 28, 2001
Erich Birch, P.E., J.D.
Erich Birch is a professional engineer and attorney with over seventeen years of legal
experience primarily in the areas of environmental, administrative, and contract law. His
practice is focused on permitting and compliance issues involving air quality, industrial
and solid waste, environmental audits, and Superfund. Erich's experience spans the areas
of private business, public governmental service and private law practice. He began his
legal career in the public sector as an attorney with the Texas Water Commission,
working in the Commission’s Legal Division handling matters involving hazardous
waste, Superfund, petroleum storage tanks, and contracts. He also served as the agency's
Public Interest Counsel prior to entering private law practice with an Austin law firm.
Prior to practicing law, Erich was an engineer in the petrochemical industry. He worked
for thirteen years with Monsanto Chemical Company serving in various roles including
project engineer, design engineer, field engineer and as manager of the design group.
Through this experience he gained hands-on familiarity with many types of
manufacturing equipment and process systems. Erich was also a specialist and
instructor of a logical problem solving technique and successfully facilitated many group
participatory problem identification and resolution sessions.
Erich received a degree in Mechanical Engineering from Vanderbilt University in 1976,
and received a Law degree from the University of Houston in 1989. He is a Registered
Professional Engineer in Texas and is a member of the American Society of
Mechanical Engineers, the American Bar Association, the State Bar of Texas, the
Austin Bar Association, the State Bar's Law Practice Management Committee, the
American Arbitration Association, and he is a trained Mediator.
Erich is a frequent speaker on environmental and law practice management topics, and
a listing of his speaking engagements and published articles is available at the link
below. A complete history of Erich's educational background and work experience is
also available below.
PLANNING TO CONQUER THE REAL WORLD OF PRIVATE PRACTICE
“Who’s Your Daddy?”
Who Do I Need To Know And How Do I Meet Them?
By Debra Bruce
I. Rule 1.01 of the Texas Disciplinary Rules of Professional Conduct
A lawyer should not accept employment in a matter beyond his/her competence.
Unless: 1.01(a)(1) a competent lawyer is associated with client’s prior informed consent
“Competence” defined as having the ability to timely acquire the necessary knowledge, skill &
training.
Need to know: lawyers
• That you can call on to give you advice and guidance to expeditiously acquire such
additional knowledge, skills and training as you may need.
• That you can associate in your client matter with the client’s consent if the matter is too
complex to handle on your own.
How do you meet them?
• Houston Young Lawyers Association meetings
• State and local bar association section meetings.
• Solos Supporting Solos.
• Call your old professors, especially if you are practicing in the same town. They can
answer questions and refer you to other lawyers. They may even be able to help you
find employment down the road if you stay in touch. Established lawyers often contact
their old professors when they are looking to hire a young lawyer.
• Lawyers in firms where your friends are working. Even someone just 2 or 3 years ahead
of you can be helpful.
• Take on bar association duties or section duties
Start attending meetings before you have questions, so that you will already have the
relationships established before you have the questions. Most of the organizations have student
memberships, but very few students take advantage of them. You will stand out as dedicated,
plucky, and savvy.
Find ways that you can benefit the lawyers you would like to benefit from. When you do them a
favor first, they will want to find a way to benefit you.
• Perhaps offer to 2d chair a trial with them for free, or at a very cheap rate.
• Handle some of their dog cases for them.
• Find out what needs or interests they have and try to help get them met.
• Baby-sit their kids in a pinch.
• Give their high schooler a tour of the college campus.
• Prepare a home-cooked meal and deliver it.
• Take their college kid to lunch to tell them what law school is really like these days.
• Teach them the slang they need to know to understand what their kids are saying.
• Teach them how to do things on the computer.
Debra Bruce, JD, PCC
Executive Coaching for Lawyers
www.Lawyer-Coach.com
Page 1 of 4
713-682-4353
debra@Lawyer-Coach.com
•
Set up a simple website, listserv or blog for their ski club or charitable organization.
II. Rule 1.14
A lawyer holding funds of clients must hold them in an account separate from the lawyer’s own
funds, in a “separate account, designated as a trust or escrow account.”
2. Need to know: bankers familiar with trust accounts, and preferably with IOLTA accounts.
That banker can be essential to your practice for a lot of other reasons, as well.
• If the banker knows you and trusts you, she can be a good referral source.
• You may need a loan for capital improvements or equipment. Perhaps you will be able to
negotiate a line of credit once you are able to demonstrate an income stream and create
some receivables.
How do you meet them:
• Don’t just set up your account and do all your business thereafter at the ATM or drive-up
window. Walk in to make deposits and make a point of saying hello. Call them by name.
• Consider putting your accounts at a bank small enough that you can get to know the
branch manager or a significant officer. Perhaps one in your building, so you can bump
into them or stop in often.
• Stop and ask questions about their services. Refer new accounts to them.
• Take out a small loan and pay it off in 6 months or a year, just to establish yourself as a
good and creditworthy customer.
• If you do transactional work, find out who handles real property financings or business
loans. Invite them to lunch and find out what kind of business they are looking for.
• Attend some of the networking and holiday events that the bank has. For example,
Sterling Bank has a women’s networking event each month.
• Bankers move around a lot. That’s good and bad. It makes it more challenging to have a
solid banking relationship with your bank when the people keep changing. It gives you
an opportunity to have potential referral sources in multiple banks, however, if you keep
up the relationship.
Rule 2.01 “In advising or otherwise representing a client, a lawyer shall exercise independent
professional judgment and render candid advice.”
Comment 4 says, “Matters that go beyond strictly legal questions may also be in the domain of
another profession. Family matters can involve problems within the professional competence of
psychiatry, clinical psychology or social work; business mattes can involve problems within the
competence of the accounting profession or of financial specialists. Where consultation with a
professional in another field is itself something a competent lawyer would recommend, the
lawyer should make such a recommendation.”
3. Need to know: depends on your practice area. Often the people you may need to refer your
clients to can be good referral sources to you, as well.
For a Family Law Practice:
• Therapists, counselors, social workers
• Financial planners
• CPAs (tax & auditing)
• Ministers
• Bankers
Debra Bruce, JD, PCC
Executive Coaching for Lawyers
www.Lawyer-Coach.com
Page 2 of 4
713-682-4353
debra@Lawyer-Coach.com
•
•
•
Investigators
Appraisers
Lawyers in other specialties
For a Transactional (Business, Real Estate, Tax) Practice:
• CPAs (tax & auditing)
• Appraisers
• Bankers
• Investment bankers
• Venture capitalists
• Surveyors
• Title companies
• Real estate agent
• Property insurance agent
• Life insurance agent for key person insurance
• Tenant leasing agent
• Architects
• Interior designers/space planners
• Specialized licensing agents (like liquor licenses)
• Engineers
For a Trial Practice:
• Court reporters
• Court clerks
• Mediators
• Investigators
• Doctors
• Expert witnesses (engineers, safety experts, chemists, etc.)
• Forensic computer experts
• Document storage, retrieval and management
• Demonstrative evidence presentation and multi-media specialists
• Jury consultants
How do you meet them?
• Bar section meetings – talk to speakers & ask other lawyers
• Networking groups
• Chambers of Commerce
• Civic groups
• Trade association meetings
• Ask for referrals by other service providers who serve the same client base
• Your building directory
• Events, parties, etc. they sponsor (they’re looking to meet people like you and potential
customers)
• Chat with people at the courthouse
• Attend unusual CLE events with non-lawyer speakers
• Judicial receptions
• Events sponsored by Texas Lawyer or other companies that have exhibitors
• State Bar convention
Debra Bruce, JD, PCC
Executive Coaching for Lawyers
www.Lawyer-Coach.com
Page 3 of 4
713-682-4353
debra@Lawyer-Coach.com
•
•
Ads in the Texas Bar Journal, the Houston Lawyer, Texas Lawyer and other legal
publications
Online research, listservs & chat rooms for lawyers
III. Paragraph 5 of the Preamble to the DRs:
“As a public citizen, a lawyer should seek improvement of the law, the administration of justice
and the quality of service rendered by the legal profession.”
You need to have your office well organized to be able to render quality legal services.
What connections do you need to help you run a quality law office?
Who do you need to know:
• Persons to recommend hardware & software tailored to the legal industry
• Insurance agents for: malpractice liability, premises & general liability, fire, theft &
casualty, flood, business interruption
• Good legal secretary, legal assistant or office assistant
• Computer technology professional
• Landlord representative in your office building
• Tenant rep to find your office space
• Executive suites rep
• Lawyers subleasing space
• Banker – loan officer
• CPA or other tax advisor
• Employment agency for temp and permanent assistants
• College placement office & financial aid office for part-time help
• Furniture dealer – perhaps used
• Bookkeeper
• Printer for business cards, stationery, announcements, invitations, etc.
• Promotional item sales rep
• Business coach
• Professional organizer
• Legal research & forms guide company rep (Westlaw, Lexis, LoisLaw, BNA, etc.)
• Nearby bigger law firm with a good library
How do you meet them?
See the other suggestions above.
Debra Bruce, JD, PCC
Executive Coaching for Lawyers
www.Lawyer-Coach.com
Page 4 of 4
713-682-4353
debra@Lawyer-Coach.com
Debra Bruce, JD, PCC
Lawyer-Coach, LLC
Before becoming an executive coach, Debra practiced law for 18 years in firms
ranging from a prestigious international mega-firm to her own entrepreneurial
firm. She specialized in business transactions, but on occasion acted as
consultant to or assisted trial attorneys.
Over the years, Debra’s interest in practicing law waned. Finally she made a
courageous Leap of Faith to follow her heart elsewhere. Her desire to share her
experience and encourage others to live a life they love ultimately led her to a
new career in executive coaching.
Today through coaching, writing, and conducting workshops, Debra helps her
clients create fulfillment and success in their careers, businesses, relationships
and lives. Her lengthy legal career gives her a special understanding of the
unique issues that confront lawyers. Although she specializes in coaching
lawyers, her clients come from other fields, as well. They are located across
North America in places like Houston, Seattle, Dallas, Los Angeles, Austin,
Washington, D.C., and Toronto.
B.S. in Psychology (summa cum laude) University of Houston
J. D. (with Honors) University of Texas School of Law
Order of the Coif; Texas Law Review
Certified Professional Co-Active Coach (CPCC)
Professional Certified Coach (PCC),
International Coach Federation
Past Co-Leader, Houston ICF Chapter
Board Member, Renaissance Lawyer Society
Chair, Law Practice Management Section of Houston Bar Association
Vice-Chair, Law Practice Management Committee, State Bar of Texas
Member, Texas Bar, Houston Bar Association, American Bar Association,
College of the State Bar
Monthly Columnist for The Practice Manager, published by the State Bar of
Texas
Practiced Corporate & Securities Law for 18 Years
© 2007 Debra Bruce
How to Build Strong Client Relationships
Martha M. Newman, J.D., B.J.
Business and Professional Coaching
Martha M. Newman, J.D., B.J.
Business and Professional Coaching
coach@gainyourgoals.com
Martha M. Newman is a Business and Professional Coach and owner of Gain Your
Goals, Inc. She specializes in performance coaching and action-planning for
attorneys and other professionals, and delivers presentations and workshops on
client development, marketing and time management. Her background is in
business litigation, broadcast journalism, and sales training. Martha is former Vice
Chair of the Fort Worth Zoning Commission and a docent at the Kimbell Art
Museum. Having received her coach training at the prestigious Graduate School of
Management at UT Dallas, her coaching and workshops are outcome-oriented with a focus
on positive change that produces tangible results. Her corporate work experience is in the
fields of sales training, technical writing, public relations, and advertising.
How to Build Strong Client Relationships
Martha M. Newman
THE Foundational Skill of All Great Lawyers: Listening Whole-Heartedly
Listening whole-heartedly demands incredible concentration and a deep desire to
understand the client who is speaking. Great listeners have the ability to make you
feel completely understood and recognized. Mastering this skill can radically
transform your law practice!
Employ Empathizers
Show empathy with more than an unconscious “uh huh” or “umm.” Dust your
dialogue with phrases like “I see what you mean,” or, “That’s interesting.” When
you respond with complete sentences instead of grunts, your listener feels that you
really understand.
Empty Their Tanks
Your client’s brain is like a topped-off tank of gas…. over flowing with his or her
own thoughts and worries. If you want your clients to listen to the expert advice you
have to give, let your clients “empty their tanks” first. Wait patiently until they have
had their entire say, and the needle is on empty. Only then will they hear you.
Listen with your eyes!
Don’t just listen to what your client is saying. Picture it. As he or she speaks, create
a visual—a movie, even—of the story. This will help you understand, follow and
remember the story—even a month later. If you retain only the words of the story,
you will forget it a day later.
Echo the Emotion! (How to Turn Anger Around)
When clients emote, respond with words that show you have heard what they say
and understand their feelings. Such empathy calms a client’s emotional storm.
For example:
“You must feel terrible.”
“I’m so sorry you are going through such pain and aggravation.”
“What an awful experience you have had!”
Your First Impression Shrieks Before You Speak
The way you look and the way you move is more than 80 per cent of a potential
client’s first impression. Great posture, a heads-up look, confident smile and direct
gaze portray the image of a Somebody.
• The Flooding Smile
A big, warm smile is an asset, but to convey credibility, a smile should erupt
slowly. An immediate smile given to everyone makes no one feel special.
Pause before you smile for just a moment. Then let a big, warm, responsive
smile flood over your face and overflow into your eyes. The split second
delay convinces people your flooding smile is genuine.
• Use Sticky Eyes
Exaggerated eye contact can be extremely advantageous in awakening
feelings of respect and affection from your clients. Maintaining strong eye
contact also gives you the impression of being an intelligent and abstract
thinker. So, pretend your eyes are glued to your client’s. Don’t break eye
contact even after your client has finished speaking. When you look away,
do so slowly and reluctantly.
Say “We”
The word we fosters togetherness. It makes the listening client feel connected to
you. It gives a subconscious feeling of “you and me against the cold, cold world.”
So if you want to create a bond with a new client, use the word we to make the client
feel you are already friends as in “I think we’ll survive this.”
A Lawyer’s Cardinal Rule
RETURN PHONE CALLS within 24 hours! You will keep clients if you do; you
will lose them if you don’t.
How to give bad news and have clients like you even more
Successful lawyers know how to deliver bad news to clients. It’s all in the attitude.
Often it’s not the news that makes someone angry. It’s the unsympathetic attitude
with which it is delivered. Gauge your client’s mood first; then deliver bad news
with a sigh, a smile or a sob, not according to how you feel about the news, but how
the receiver will take it.
Master the Welcome:
How do you greet clients and prospective clients? The first five seconds-- the
greeting, the welcome, the receptionist’s answer—influence client satisfaction more
than any other act. Clients love feeling welcome. Is the visitor greeted immediately
and warmly? What immediate impressions does your office make? Does the
receptionist desk face the people who enter your office? Are your telephones always
answered within three rings and warmly? Does your office feel alive?
Use the “You” word liberally!
Start every appropriate sentence with “you.” It immediately grabs your client’s
attention. Clients respond positively because you have pushed the pride button.
So, Comm-YOU-nicate whenever possible.
Don’t touch a cliché with a Ten-Foot Pole.
Big winners (your clients!) cringe at clichés. Trite, over worn phrases shout lack of
imagination. So, if you are feeling fit as a fiddle, happy as a lark, or high as a kite,
just remember that using common clichés around uncommonly successful people
brands you as uncommonly common. Roll out some clever phrases instead!
Pause before you speak.
Silence---the pregnant pause, the white space of conversation---works! It brings the
words around it into high relief. It suggests those words will matter. It makes those
words effective and memorable. It’s hard to resist talking, enthusiastically and
often, but that makes you appear too eager and too inclined not to listen.
What clients love most: “Comfort”
Clients crave comfort more than anything. How do you answer that craving?
Perceived expertness comforts people. Firms that look and sound expert comfort
anxious clients.
Clarity comforts. It helps them understand, which makes them more confident
about who you are and why they should choose you.
Integrity comforts. It assures your clients that in a world of uncertainty, they can
predict what you will do from what you say.
Expressing your genuine interest in people comforts them, too. It assures them you
will protect their interests as well as yours.
Your passion comforts people. It shows you love what you do which increases the
chances that you will perform well.
We admire excellence and envy superiority, but it is simple comfort that captures
clients and keeps them.
How to Respond When You Don’t Want to Answer: The Broken Record Technique
If a rude client hangs on you like a leech, asking the same impertinent question on
an unwelcome subject, simply repeat the same response over and over until the
questioner gives up. Use the same words in exactly the same tone of voice. The
frustrated client will usually give up and quiet down.
Never the Naked Thank You
People use the bare, curt “thank you” so often that it becomes a throw away. So
never let the words “thank you” stand naked and alone. Always make it thank you
for something. Thank you for being so understanding. Thank you for being such a
good client. Thank you for waiting. This practice has surprising effects. People
listen and appreciate your gratitude.
Business Manners that Keep Clients
1. Always wait a split second after a person finishes talking before you speak
2. Listen with your entire body.
3. Be positive.
4. Speak well of others.
5. Memorize names.
6. Never try to impress. It diminishes you.
7. Praise, but never flatter.
8. A simple rule when in doubt: Be kind.
9. Deliver on your promises. Clients crave consistency.
10. Answer your phone: When a client calls, pick up the phone if you possible can!
THE BOTTOM LINE: Sincerity is the threshold characteristic of effective
communication with clients. All of our suggestions regarding good listening and
empathetic responses are powerful only if they are genuine.
Portions of this presentation were garnered from the following sources: What Clients Love, by Harry
Beckwith; Rainmaking Made Simple, by Mark Maraia, and How to Talk to Anyone, by Leil
Lowndes.
Marketing: What Are You Already Doing
Right?
Debra Bruce, JD, PCC
Lawyer-Coach, LLC
Debra Bruce, JD, PCC
Lawyer-Coach, LLC
Before becoming an executive coach, Debra practiced law for 18 years in firms
ranging from a prestigious international mega-firm to her own entrepreneurial
firm. She specialized in business transactions, but on occasion acted as
consultant to or assisted trial attorneys.
Over the years, Debra’s interest in practicing law waned. Finally she made a
courageous Leap of Faith to follow her heart elsewhere. Her desire to share her
experience and encourage others to live a life they love ultimately led her to a
new career in executive coaching.
Today through coaching, writing, and conducting workshops, Debra helps her
clients create fulfillment and success in their careers, businesses, relationships
and lives. Her lengthy legal career gives her a special understanding of the
unique issues that confront lawyers. Although she specializes in coaching
lawyers, her clients come from other fields, as well. They are located across
North America in places like Houston, Seattle, Dallas, Los Angeles, Austin,
Washington, D.C., and Toronto.
B.S. in Psychology (summa cum laude) University of Houston
J. D. (with Honors) University of Texas School of Law
Order of the Coif; Texas Law Review
Certified Professional Co-Active Coach (CPCC)
Professional Certified Coach (PCC),
International Coach Federation
Past Co-Leader, Houston ICF Chapter
Board Member, Renaissance Lawyer Society
Chair, Law Practice Management Section of Houston Bar Association
Vice-Chair, Law Practice Management Committee, State Bar of Texas
Member, Texas Bar, Houston Bar Association, American Bar Association,
College of the State Bar
Monthly Columnist for The Practice Manager, published by the State Bar of
Texas
Practiced Corporate & Securities Law for 18 Years
Marketing: What Are You Already Doing Right?
On a panel for a webcast by the Law Practice Management Program about
“Finding and Keeping Good Clients,” we discussed the efficacy of public
speaking. Rick Albers, a real estate lawyer in Austin, recounted that another
lawyer once told him that he had spoken many times at continuing legal
education programs, and never got any business from it. Rick’s mouth dropped
open. He himself had referred four matters to that lawyer over the last several
years. Rick made those referrals because he knew from hearing the lawyer
speak that he was knowledgeable in the relevant area of practice.
Many years ago, when I had my own law firm, my father asked me how I got my
clients. I blinked, dumbfounded by the question, and finally responded, “I wish I
knew, Dad, so I could get more of them.” That question spurred me to examine
my list of current and former clients. I discovered that 75% of my business came
from referrals from other lawyers. To my surprise, many of those referrals came
from my competitors!
These stories illustrate one of the shortcomings in the marketing efforts of many
lawyers. We don’t have a system to measure which activities produce the
outcomes we desire.
Find What Already Works for You
When I work with attorneys on business development, many are afraid I will ask
them to do something way outside their comfort zone. Often, however, we start
by uncovering what already works for them to enhance that, or to better
capitalize on existing opportunities.
In my own situation described above, my analysis revealed that something I did
for other reasons turned out to be a good business development tool. Shortly
after the conclusion of a transaction, I often invited opposing counsel to join me
for lunch or an adult beverage. I did that to smooth over any rough edges that
might have developed from the tensions of adversarial representation. As a
result of that habit, I developed lots of relationships of trust and friendship with
lawyers who knew first hand the quality of my work. When they could not take on
a representation due to a conflict, many of them referred their prospective clients
to me.
Track and Analyze Your Marketing Results
Here are some steps you can take to make sure you recognize what you already
do well:
1. Ask prospective clients who contact you how they found you. If they found
you through the Internet, what search terms did they use? If another
2.
3.
4.
5.
6.
7.
lawyer referred you, how did they know that lawyer? If they saw your
advertisement, where and when did they see it?
If the client was referred to you, contact the referral source to thank her
and ask why she suggested your name.
Track that information in a way that lets you easily review, reconfigure and
analyze it. The system doesn’t have to be complicated or high tech, but do
take advantage of the features of software you are already using. Look for
patterns and commonality.
Record every time you “touch” a prospective client, whether in person, by
phone, letter, email, speaking, writing, or advertising, and the length of
time between the first touch and the date they became a client.
Look for evidence of which activities bring in top tier clients, and which
tend to attract less desirable ones. That requires you to “grade” your
clients so you can recognize the common traits of the more desirable
ones.
Track the cost and time involved in your various marketing activities to
identify the most efficient use of your time and money. High dollar
marketing companies track results meticulously and make adjustments
based on that feedback.
Ask clients for feedback on your firm’s services. What did they like? What
would they want to see more of? What would they want you to do
differently? How do your services compare to other law firms they have
used? What would make them feel comfortable in referring friends and
colleagues who need your services?
Adapt to the Data
Once you get a large enough sample from tracking this information, you may find
some surprises. Those expensive season tickets may not be paying off,
especially if you give them away instead of accompanying your client. It may take
a lot more touches or a much longer period of time to generate a new client from
your marketing efforts than you expected. Sometimes new clients say, “I heard
you speak a couple of years ago.” You may have a misperception about where
most of your business comes from. You may be spending too much time in an
arena that brings in lower level clients. You may be doing things right that you
never realized.
Persist with What Works
Marketing legal services often involves planting a lot of seeds that take a long
time and a lot of nurturing to germinate and grow to harvest. That time lag can
distort our perception of what works. Reviewing the statistics on your successful
efforts can bring clarity and give you the necessary encouragement to persist
when delayed gratification tempts you to give up too soon.
Business Development: Follow-up or Fall
Down
Debra Bruce, JD, PCC
Lawyer-Coach, LLC
Debra Bruce, JD, PCC
Lawyer-Coach, LLC
Before becoming an executive coach, Debra practiced law for 18 years in firms
ranging from a prestigious international mega-firm to her own entrepreneurial
firm. She specialized in business transactions, but on occasion acted as
consultant to or assisted trial attorneys.
Over the years, Debra’s interest in practicing law waned. Finally she made a
courageous Leap of Faith to follow her heart elsewhere. Her desire to share her
experience and encourage others to live a life they love ultimately led her to a
new career in executive coaching.
Today through coaching, writing, and conducting workshops, Debra helps her
clients create fulfillment and success in their careers, businesses, relationships
and lives. Her lengthy legal career gives her a special understanding of the
unique issues that confront lawyers. Although she specializes in coaching
lawyers, her clients come from other fields, as well. They are located across
North America in places like Houston, Seattle, Dallas, Los Angeles, Austin,
Washington, D.C., and Toronto.
B.S. in Psychology (summa cum laude) University of Houston
J. D. (with Honors) University of Texas School of Law
Order of the Coif; Texas Law Review
Certified Professional Co-Active Coach (CPCC)
Professional Certified Coach (PCC),
International Coach Federation
Past Co-Leader, Houston ICF Chapter
Board Member, Renaissance Lawyer Society
Chair, Law Practice Management Section of Houston Bar Association
Vice-Chair, Law Practice Management Committee, State Bar of Texas
Member, Texas Bar, Houston Bar Association, American Bar Association,
College of the State Bar
Monthly Columnist for The Practice Manager, published by the State Bar of
Texas
Practiced Corporate & Securities Law for 18 Years
Business Development: Follow-up or Fall Down
Recently I celebrated a business development victory with a lawyer. I asked him
what he thought was the most important ingredient in his success. “Persistence,”
he replied. “I just kept following up.”
That’s where many of us fall down. We attend networking events, give speeches,
join organizations, and do other things to be at the right place to meet
prospective clients. We succeed in meeting what appear to be some good
business prospects or good potential referral sources. Hooray! Now what do we
do?
Some of us take their business cards back to the office, put them in our desk
drawer, and that’s the end of it. Perhaps we are hoping they will germinate in
there. Perhaps we hope that we are so memorable and our services in such
demand that the prospective client will soon call us.
Many of us manage to enter their contact information into our database and send
a “nice to meet you email” before we peter out. We would do more, but we just
don’t know what else to do.
Some of us get bold enough to call the prospect. We exchange pleasantries, tell
them about what we can do for them and offer our services. Usually that results
in a polite brush-off, and that’s the end of the road for us. We mark that prospect
off the list.
Follow-up is one of the most crucial, yet most neglected or malpracticed business
development skills. That’s probably because it requires so much delayed
gratification. It requires making repeated investments that may not pay off for a
long time, if ever. Some of us are too impatient to make that kind of investment.
We take our shot, and if we miss, we move on. Others of us get discouraged too
soon, taking the lack of action by a prospect as a sign of rejection.
Some of us are willing to make the investment, but we are afraid we will be
nagging or pestering the prospect. We have all been the victims of in-artful
follow-up where someone did make a pest of himself.
If you found yourself in any of the above categories, here are some tips on how
to make your follow-up work.
1. Try to go beyond superficial conversation when you first meet the
prospect. Learn a little about her interests or her challenges. You will
have more fodder to work with in your follow-up.
2. Do some preparation before you follow-up. At a minimum, check out
her company’s website and Google her. If you learned about some
concerns she is facing, do some brief research into possible solutions.
3. Look for ways to benefit your prospect when you follow-up. Share
some current information that might be useful to her. Offer to be a
sounding board or to give her some “off the clock” advice about any of her
challenges that you discovered. Offer to make an introduction that is
valuable to her. Send her an article or news clipping that relates to
something you discussed with her.
4. Have a genuine interest in and curiosity about her and her business.
You can find something interesting or intriguing to you about every person
and every business on this planet, if you approach them with curiosity.
Expressing a desire to learn more about something specific about her
experience or her opinion may be just the ticket that gets you a follow-up
lunch. We are all attracted to someone who genuinely finds us interesting,
aren’t we?
5. Listen for her needs or worries that you can help with. Don’t just listen
for legal needs that you can address. Listen for needs that other lawyers
in your firm can handle. Listen for needs that have nothing to do with the
law, but for which you may be able to make a referral or provide a
resource.
6. Focus on building a relationship and filling needs. Most unsuccessful
follow-up has its focus on what you can get from the prospect, instead of
what you can give. If you make yourself a good resource for your
prospect, she will want to stay connected to you, and won’t find your calls
a bother. She will want to repay your favors with business or referrals, if
she understands what you do and how you can help.
7. Have a system for follow-up. Don’t let prospects fall through the cracks
just because they don’t have a need for your services at this moment. Set
reminders on your calendar to touch base periodically. Months can slip by
before you realize it. Perhaps you will want to set aside a specific morning
each month to review your list of prospects and dormant clients to reach
out to.
8. Track your contacts with a prospect. Sales research shows that most
salespersons make 7 to 10 sales calls before closing the sale. Many
lawyers give up on a prospect after contacting them only 2 or 3 times. At
least for a little while, try recording each time you have a phone call with,
send an email to, have a meeting with or just bump into a prospect. You
can use Outlook, your case management software, contact management
software like Act! or Sales Logic, an Excel file, or even a chart on a piece
of paper. When you do get some business from her, look back to see how
many times you connected before you actually got the business. You may
be surprised to see that even with a “hot prospect,” you connected more
than a dozen times. This information will give you the encouragement to
persist with other prospects when progress is slow.
Armed with these tips and a giving attitude, you can confidently persist in building
relationships that ultimately result in your business success.
Debra Bruce (www.lawyer-coach.com) practiced law for 18 years, before becoming a
professionally trained Executive Coach for lawyers. She is Vice Chair of the Law
Practice Management Committee of the State Bar of Texas, and the co-founder and past
leader of Houston Coaching Network, the Houston Chapter of the International Coach
Federation.
Creativity and Innovation as a Marketing
Tactic
Debra Bruce, JD, PCC
Lawyer-Coach, LLC
Debra Bruce, JD, PCC
Lawyer-Coach, LLC
Before becoming an executive coach, Debra practiced law for 18 years in firms
ranging from a prestigious international mega-firm to her own entrepreneurial
firm. She specialized in business transactions, but on occasion acted as
consultant to or assisted trial attorneys.
Over the years, Debra’s interest in practicing law waned. Finally she made a
courageous Leap of Faith to follow her heart elsewhere. Her desire to share her
experience and encourage others to live a life they love ultimately led her to a
new career in executive coaching.
Today through coaching, writing, and conducting workshops, Debra helps her
clients create fulfillment and success in their careers, businesses, relationships
and lives. Her lengthy legal career gives her a special understanding of the
unique issues that confront lawyers. Although she specializes in coaching
lawyers, her clients come from other fields, as well. They are located across
North America in places like Houston, Seattle, Dallas, Los Angeles, Austin,
Washington, D.C., and Toronto.
B.S. in Psychology (summa cum laude) University of Houston
J. D. (with Honors) University of Texas School of Law
Order of the Coif; Texas Law Review
Certified Professional Co-Active Coach (CPCC)
Professional Certified Coach (PCC),
International Coach Federation
Past Co-Leader, Houston ICF Chapter
Board Member, Renaissance Lawyer Society
Chair, Law Practice Management Section of Houston Bar Association
Vice-Chair, Law Practice Management Committee, State Bar of Texas
Member, Texas Bar, Houston Bar Association, American Bar Association,
College of the State Bar
Monthly Columnist for The Practice Manager, published by the State Bar of
Texas
Practiced Corporate & Securities Law for 18 Years
Creativity and Innovation as a Marketing Tactic
At a dinner party recently, a lawyer and I discussed theories about the struggles
many law firms are facing. Today the market place changes rapidly, but changing
something in a law firm can be harder and slower than turning a battleship.
My theory was that, as lawyers, we focus on the past and on precedent. We
actually have an aversion to innovation and change because too much
innovation in the law creates unpredictability and instability in society. On top of
that, we spend most of our time on behalf of our clients trying to determine who is
at fault and assigning blame (and damages), or trying to protect against every
risk that could possibly arise as the result of all the negligence and malfeasance
in the world. We are too expert at pointing out the problems and risks of any new
idea, and too unpracticed at seeing the benefits and possibilities.
As if on cue, the next issue of Texas Lawyer included an article titled, “Law
Departments and Firms Should Nurture Creativity,” (February 5, 2007). Although
most of the article discussed how lawyers suppress creativity, it included several
examples of innovations by corporate law departments. I promptly sent quotes of
some of the innovative ideas and a link to the article to appropriate clients and
prospects, as well as to the lawyer from the dinner party.
When you see new ideas, do you think of how your clients might benefit from
them? Or do you just keep your focus on the law? When I trained as a young
lawyer, I was taught to stick to the legal issues, and avoid the business issues.
Today, however, the biggest rainmakers are the lawyers who become trusted
advisors, sounding boards and doors to resources for whatever challenges their
clients face.
What would your clients think if you said, “I was reading about the improvements
in X, and I wondered whether that might be opening up a market opportunity for
your company in our area.” What message would it send to your client if you
were to share with them the innovations you see in other industries that might
apply to their business? What would your client’s perception of you be if you said,
“You know, I’ve been thinking about the recurring litigation you have been facing,
and I wondered whether X change in procedure would reduce the number of
cases.” Some litigators reading this are thinking, “Litigation business is already
down right now. Why would I want to help reduce it further?” To them I respond,
“When litigation is down, how do you think clients choose which few lawyers will
get the cases they do have?”
I think most clients would perceive such discussions as an indication that you
care about their success; that you see yourself as a member of their team. Such
discussions especially foster trust when the client sees you hold their interests
ahead of your own. In an era of increasing competition in the legal field, you can
stand out amidst armies of qualified lawyers by demonstrating to your clients,
prospects and former clients that you focus on and care about their success.
And what about innovation? The February 5, 2007 Texas Lawyer article cited a
survey of in-house counsel respecting the three most distinguishing attributes of
successful outside counsel. Only 6% named creativity. It is not clear from that
report whether corporate legal departments don’t really look for innovation and
creativity when they hire outside law firms, or just don’t find it.
Anecdotal evidence supports the argument that business people (if not in-house
counsel) want creative lawyers who offer more than just legal advice. Take the
case of the outside general counsel chosen for the San Antonio Spurs basketball
team. In a Texas Lawyer article entitled “J. Tullos Wells Scores as Outside
General Counsel for San Antonio Spurs” (July 18, 2005), Jack Diller, the Chief
Executive Officer who engaged Wells said “I was looking for someone who
blended a strong knowledge of the San Antonio market with the ability to be
creative in terms of reacting to the kinds of changes that had taken place in NBA
basketball.” Notice he didn’t say he was looking for the lawyer who had the most
legal expertise, or who had tried the most cases, or who had closed the biggest
deals.
Texas Lawyer also reported that Rick Pych, the Executive Vice President for
Corporate Development of the Spurs, said that the Spurs’ reliance on Wells went
well beyond providing the team with legal advice. They also relied on him for
advice on the role the Spurs should play in the city of San Antonio. Diller further
recounted that Wells learned how to work the NBA salary cap so the team would
have money to acquire a valuable player later. That required planning ahead and
conducting business in a way that would position the team to take advantage of
the cap when other teams couldn’t.
If you want dream clients, be their dream lawyer. Wells noted that only 29 other
lawyers on the planet get to do what he gets to do. It’s pretty hard to compete
with a lawyer like Wells, who creatively solves his clients’ problems and helps
them run their business more effectively.
This month, be a shining star in your client’s eyes. Lawyers called “brilliant” are
usually the ones who find new solutions to old problems, or who innovate quickly
enough to keep pace with the development of new problems. Keep your eyes,
ears and mind open for brilliant solutions to their challenges, even if they don’t
involve legal issues.
Differentiation by Design
Debra Bruce, JD, PCC
Lawyer-Coach, LLC
© 2007 Debra Bruce
Debra Bruce, JD, PCC
Lawyer-Coach, LLC
Before becoming an executive coach, Debra practiced law for 18 years in firms
ranging from a prestigious international mega-firm to her own entrepreneurial
firm. She specialized in business transactions, but on occasion acted as
consultant to or assisted trial attorneys.
Over the years, Debra’s interest in practicing law waned. Finally she made a
courageous Leap of Faith to follow her heart elsewhere. Her desire to share her
experience and encourage others to live a life they love ultimately led her to a
new career in executive coaching.
Today through coaching, writing, and conducting workshops, Debra helps her
clients create fulfillment and success in their careers, businesses, relationships
and lives. Her lengthy legal career gives her a special understanding of the
unique issues that confront lawyers. Although she specializes in coaching
lawyers, her clients come from other fields, as well. They are located across
North America in places like Houston, Seattle, Dallas, Los Angeles, Austin,
Washington, D.C., and Toronto.
B.S. in Psychology (summa cum laude) University of Houston
J. D. (with Honors) University of Texas School of Law
Order of the Coif; Texas Law Review
Certified Professional Co-Active Coach (CPCC)
Professional Certified Coach (PCC),
International Coach Federation
Past Co-Leader, Houston ICF Chapter
Board Member, Renaissance Lawyer Society
Chair, Law Practice Management Section of Houston Bar Association
Vice-Chair, Law Practice Management Committee, State Bar of Texas
Member, Texas Bar, Houston Bar Association, American Bar Association,
College of the State Bar
Monthly Columnist for The Practice Manager, published by the State Bar of
Texas
Practiced Corporate & Securities Law for 18 Years
© 2007 Debra Bruce
Differentiation by Design
Recently I ran into a Houston lawyer at the Hermitage Hotel in Nashville, Tennessee. As
we chatted, he extolled the virtues of the hotel. He began with his amazement that,
although he had only stayed there once before, the doorman called him by name when he
arrived. Then he gushed about the impact of walking into the luxurious bathroom in his
room.
At the Vintage Inn in Napa, California, as I unlocked the door and stepped into my room,
I heard gentle strains of soothing music. Lamplight and a fire flickering in a fireplace
created a romantic mood and warmed me from the chill of the night air. A small table
held a complimentary bottle of wine, with glasses and a corkscrew. I sprawled on the bed,
and felt like I had landed on a fluffy cloud. This was not my usual business trip
experience. When I got home I started planning how I could get back to that hotel.
What do these stories have to do with your law practice? They illustrate the marketing
power of focusing on a client’s experience when delivering service. These hotels stood
out in an industry with competitors literally around the corner. Would your clients say
that about your firm?
An article in the October 2007 issue of Fast Company magazine reported that “a threeyear study of more than 40 Fortune 500 companies by the research firm Peer Insight
found that companies focused on customer experience design outperformed the S&P 500
by a 10-to-1 margin from 2000 to 2005.” Jeneanne Rae, co-founder of Peer Insight LLC,
says “Customers will gladly pay more for an experience that is not only functionally but
also emotionally rewarding (emphasis added).”
Psychologist and marketing experts say that most buying decisions are emotional, and the
buyer’s analysis is really just designed to support the emotional decision already made.
That’s why Madison Avenue uses sex to sell cars, beer and soap.
I work with lawyers in large firms all over the U.S., and when we survey them about
what differentiates their law firm from their competitors, a high percentage of them
respond that they provide superior legal services. These top notch firms compete against
other top notch firms, and if there is any real difference in legal ability at that level, I
doubt that most clients can discern it. Clients can discern, however, differences in how
they feel when they receive legal services. The lawyers surveyed, however, tended to
focus on functional needs, and rarely considered the emotional needs of their clients.
What would effective “customer experience design” look like for your law firm? Begin
by identifying the emotional needs, concerns and preferences of your client base. What
do your clients want? There are probably a number of core needs in common with most
clients, regardless of the kind of legal services sought. They want relief from stress and
worry about the legal issue they have entrusted to you. They want to feel important and
know that you have their interests uppermost in your mind. They want to feel safe. They
© 2007 Debra Bruce
want to feel taken care of. They want to feel valued and appreciated for choosing you.
They want to feel understood. They want to feel special.
Now think about the “touchpoints” with your clients and the ideas, emotions and
memories that these interactions trigger. It may help to think of them not as “clients,” but
as “participants” in an experience of sights, sounds and smells that you create.
Don Norman, a nationally-known design guru, says “attractive things work better.”
Norman asserts that a pleasant aesthetic design can help people be more flexible and
creative in finding solutions to challenges. Stress, however, makes people less able to
cope with difficulties and less flexible in their approach to problem solving. So it is
important to minimize distractions, bottlenecks and difficulties, and to maximize
aesthetics. A well-designed experience for your clients may actually help them be more
creative participants in problem solving.
For most clients, situations involving legal representation involve stress. To improve
interactions with clients, begin by creating a pleasant experience for them when they
come to your office. Difficulties in parking, or a late start for an appointment, can reduce
your client’s ability to deal with unexpected news or to be flexible and creative in
negotiations.
By way of example, I went to a new dentist, and thought it was odd that a dental office
would have coffee and chocolate chip cookies in the waiting room. The snacks were
attractively presented, as if Martha Stewart had chosen the table cloth, napkins, serving
plates and containers for cream and sugar. Several of the chairs in the waiting room had
vibrating back massagers. I felt comfortable and welcome, and found I even wanted to
linger there. I found I didn’t mind dealing with all of the usually bothersome new patient
questionnaires and insurance paperwork. That dental office used good customer
experience design to improve my impression of their services, and after my first visit I
told several people about those dental offices.
One Houston family lawyer has offices in an old house with a large attractive flower
garden at the entrance. She keeps homemade cookies on hand and burns scented candles
in the office. Her clients have commented that the environment helps them calm down.
Give your own office a client experience audit. Contact your own office as though you
were a client.
When your clients call your office, does the person answering the phone recognize their
name? How many times did the phone ring before they picked up? If it is necessary to
put the caller on hold, does your assistant or receptionist ask permission first? Does he or
she actually wait to hear the response? If a client informs you of an unsatisfactory
telephone experience, what do you do about it? Do you thank the client for letting you
know?
© 2007 Debra Bruce
If you serve elderly, injured or disabled clients, can they get to your office without
climbing steps? Is the physical environment pleasant and soothing, or noisy and chaotic?
Do your clients have the sense that their matters are truly confidential, or can they
overhear telephone conversations as they walk down the hall? Do they see other clients’
documents as they meet in your office?
Do you give the clients the experience of feeling special? Does your receptionist know to
expect their arrival and address them by name? Do you promptly greet them, or do you
keep them waiting? If they meet in your office, do you put your phone on “Do Not
Disturb” and turn off the email alerts so that you can give the clients your full attention?
Do you offer your client a beverage? Does the client have a comfortable place to sit? Do
you stay behind a fortress of a desk, or do you join your client in a symbolic gesture of
your partnership with them?
In rendering legal services, do you help your clients know what to expect and keep them
informed of developments? Evidently many lawyers do not, because I repeatedly hear
General Counsels say that surprises are their pet peeves about outside counsel. How
quickly do you respond to emails and phone calls? The most frequent complaints
received against lawyers by the State Bar of Texas have to do with poor communication
and failing to respond to client request for information.
What other ways can you give your clients a positive experience when working with you?
It is worth some thought if you want to stand out in a crowd of competitors.
© 2007 Debra Bruce
Get Remembered
Debra Bruce, JD, PCC
Lawyer-Coach, LLC
Debra Bruce, JD, PCC
Lawyer-Coach, LLC
Before becoming an executive coach, Debra practiced law for 18 years in firms
ranging from a prestigious international mega-firm to her own entrepreneurial
firm. She specialized in business transactions, but on occasion acted as
consultant to or assisted trial attorneys.
Over the years, Debra’s interest in practicing law waned. Finally she made a
courageous Leap of Faith to follow her heart elsewhere. Her desire to share her
experience and encourage others to live a life they love ultimately led her to a
new career in executive coaching.
Today through coaching, writing, and conducting workshops, Debra helps her
clients create fulfillment and success in their careers, businesses, relationships
and lives. Her lengthy legal career gives her a special understanding of the
unique issues that confront lawyers. Although she specializes in coaching
lawyers, her clients come from other fields, as well. They are located across
North America in places like Houston, Seattle, Dallas, Los Angeles, Austin,
Washington, D.C., and Toronto.
B.S. in Psychology (summa cum laude) University of Houston
J. D. (with Honors) University of Texas School of Law
Order of the Coif; Texas Law Review
Certified Professional Co-Active Coach (CPCC)
Professional Certified Coach (PCC),
International Coach Federation
Past Co-Leader, Houston ICF Chapter
Board Member, Renaissance Lawyer Society
Chair, Law Practice Management Section of Houston Bar Association
Vice-Chair, Law Practice Management Committee, State Bar of Texas
Member, Texas Bar, Houston Bar Association, American Bar Association,
College of the State Bar
Monthly Columnist for The Practice Manager, published by the State Bar of
Texas
Practiced Corporate & Securities Law for 18 Years
Get Remembered
Years ago at an early morning meeting Jimmy Brill, a board certified estate
planning lawyer and the founder of Solos Supporting Solos, asked each of 30
lawyers to introduce themselves and their practices. I didn’t know any of them,
and they all faded into a blur, except for one tall gentleman in a straw hat and
seersucker suit. He said, “I’m a proctologist in the courtroom.” He got some
chuckles and my attention.
I often ask the attorneys I coach on business development to analyze their client
list to determine how they obtained their previous clients. Most of them report
that the majority of their new clients come as referrals. If your business depends
on referrals, your success depends on the likelihood that others will remember
you when someone has a problem you can solve.
A couple of months after that morning meeting, I asked someone in the group,
“What’s the name of that guy who’s the proctologist in the courtroom?” “Ted
Hirtz,” he responded immediately. Ted’s introduction stood out and triggered the
memory of enough people for me to locate him again.
What made Ted memorable? Chip Heath and Don Heath, the authors of Made to
Stick, would say that one reason Ted stuck in my mind was that his description
“broke my guessing machine.” I anticipated that he would say he was a trial
lawyer, a real estate lawyer, or something else predictable. Unexpectedness
grabs our attention and enhances memory.
In their book Made to Stick, the Heath brothers analyzed what makes stories,
events and sayings memorable. They distilled it down to six factors that create
“stickiness,” which they express in an acronym that (almost) spells success:
Simplicity, Unexpectedness, Concreteness, Credibility, Emotions, and Stories.
Ted Hirtz used concrete words that created an image in my mind. (Let’s not go
any further with that.) We remember concrete images more easily than abstract
concepts. He also kept it simple. He conveyed one straight-forward message:
that he is a tough trial lawyer.
Ted’s statement also evoked some emotion. Most of us either winced or
chuckled. Studies show that people remember thoughts paired with emotion
longer. No wonder we remembered Ted’s statement. In one sentence he utilized
at least 4 of the stickiness factors.
People also remember what you do if your description triggers them to imagine
that you can help with a problem they struggle with or know someone else who
does. So keep those legal concepts simple and easy to understand, and try to
illustrate the benefit of using you. Don Graul, a lawyer who handles family law
mediations before attorneys get locked in battle, says that he helps parents get
divorced with less pain for themselves and their children.
Sometimes Don says he does “early intervention mediation,” but he recently
remarked that often even lawyers don’t seem to get it. That approach doesn’t
employ the principles of simplicity and concreteness. Big words often float right
over our mental retention pond. It also lacks the emotional depth of Don’s other
description.
What if what you do is just naturally complex and difficult for a lay person to
understand? Boil it down to the most basic issues, or the most meaningful
concrete benefits. Kevin Maguire switched from saying that he is a
condemnation lawyer to saying he helps resolve land disputes. His listeners
responded with questions about his work. Lisa Thorp, a public finance lawyer,
said her descriptions of what she did bored people. Now she speaks with pride
about helping communities build hospitals and schools. Chris Kotlarz, a tax
lawyer, says he helps keep the government’s hand out of your pocket. Who
doesn’t want that?
Notice that none of the previous examples started with “I’m a lawyer.” Most
people already have in mind an image of what it means to be a lawyer.
Unfortunately, today that may not be the image you want to invoke. Once you
stick a concrete image in their minds of the benefit you provide, however, you will
often get a follow-up question like “How do you do that?” There’s your
opportunity to tell a brief success story, illustrating the point and strengthening
your listener’s memory. It might start with, “Well, I’m a lawyer and, for example,
when my client had a problem with X, I helped him by doing Y.”
How will you know when your introduction works for you? Here are some good
signs. One: you get a follow-up question indicating curiosity about how you do
what you do. Two: Your listener asks for your card. Three: You hear other people
repeating some version of what you said. An acquaintance may introduce you to
a third person using your words, or even better, someone may call to hire you
because they heard you can help with whatever you said.
By way of example, Steve Scholl got trained in a specialized form of mediation
called peacemaking. He began introducing himself as “a trial lawyer and
peacemaker.” I knew he had achieved stickiness when someone at my church
remarked to me that she met a man who is “a lawyer and a peacemaker,” with a
certain tone of surprise in her voice.
If these ideas sound effective to you, but you keep drawing a blank when you try
to apply them to your practice, perhaps coaching will help. Find a buddy to
brainstorm and experiment with, or contact your favorite lawyer-coach.
INTERNAL AND EXTERNAL FILE ORGANIZATION – MANUAL
SYSTEM
By Gisela B. Bradley
I. INTRODUCTION
This article concerns itself with the set-up, maintenance and organization of files, both
within the individual file folder as well as the files themselves. The ideas contained in
this article are suggestions only, there are many different ways to structure your records
based on personal preferences, as well as different needs depending on the type of file it
is. If you are looking at major restructuring of your filing system you may wish to consult
a records management professional for additional suggestions and advice.
II. OPENING AND CLOSING FILES
A. Opening Files
When a new file is opened, the following should always be done.
• A new matter information sheet filled out by the attorney (or legal assistant) to
place within the file.
• New client and matter information should be entered into your firm’s billing
system.
• New client and matter information should be entered into your firm’s case
management system, if you use one.
• At least one, and preferably a series, of tickler/deadline entries should be made
and placed on the firm’s calendar. Never open a file without associating it with
some sort of calendar entry.
• If you do not have a case management or billing program, set up important client
information on a card, cross-reference it, and place in an ‘open file’ box.
• Add the matter to a list of new open matters (if you do not record this information
anywhere else – if you do, then don’t duplicate your efforts).
• Set up a new directory (where appropriate) in word processing to hold the client’s
documents
• Where appropriate (usually) a statue of limitations entry should be made for the
file.
• A new file must be physically set up, with appropriate labels, etc. The firm should
have a policy for which files need separate internal organization, and all files that
need to be internally organized (such as litigation files) should have the initial
steps taken WHEN the files is opened, not after.
B. Closing Files
As with opening a file, many firms have too informal a procedure. It is not good enough
just to know that the legal work has been concluded; the administrative issues must be
brought to a close as well. To close a file, ensure that:
• An attorney in charge must first of all request that the file be closed. Never
inadvertently close a file on which more work needs to be done.
•
•
•
•
•
•
•
•
•
•
Once the request is made, the file should be marked as closed in your billing and
case management systems.
Never mark a file closed if it has an outstanding balance due.
Check your trust account records to make sure there is a zero balance for that
client. If not, either refund the overage or send a bill to the client for the
remainder. Never close a file with a non-zero trust balance.
Archive any word processing documents associated with the file and remove any
directories created when the client matter was set up.
Pull any true junk – old note pads, extra copies of documents, etc. – from the file
and discard.
Pull any reusable materials – such as memos or briefs, expert witness opinions,
etc. – and file.
Remove the file listing from your open matter list, if you maintain a separate
manual one.
Remove the file cards from your open file cards box, if you maintain a separate
one, and transfer the information to a closed files box.
Record a new closed files number for your file in a closed file record – keeping
system.
Transfer the file to closed file storage.
III. FILE APPEARANCE
A. File Labeling
Many law firms just put the name of the client on the file label, or assign the number 1 to
the first client and go up from there. While this may work all right for small firms with a
few clients (none of whom is a repeat customer), it is not desirable for several reasons.
Ideally, you want a file label designator that:
•
•
•
•
Allows you to distinguish between separate matters handled for the same client
Can be used ‘as is’ by your billing program
Provides some clues to the age and/or subject of the file
Is not so long or so complex that it’s incomprehensible or easily mistyped
Many billing programs require either numeric file designators or ones that begin with
numbers. Check your program. Others may not permit hyphens, spaces, etc. Here are
some possible constructions:
•
•
•
•
02001JJ (First file opened in 2002, client is John Jones
JJ-W02 (A will file opened for John Jones in 2002)
020001-W (ditto; just does not have client’s name on it)
02001-1 (This firm categorizes types of files by number; wills are 1)
And so on…… there is no one right and wrong way of handling this.
IV. COLOR CODING FILES
Color-coding your law office files is a great way to draw attention to different types of
files and prevent the casual viewer from confusing these files with other, unrelated files.
The concept of color coding covers a variety of options, so mix and match the following
suggestions to customize your filing system to your office’s particular needs.
TIP # 1
Don’t use only a colored label – color code the entire file.
It is possible to buy a full rainbow of file folders instead of the standard manila ones.
Using different colored file folders for different categories of cases can be a real time
saver, especially considering attorney’s habits: they will leave piles of files all over their
offices, no matter how many times they have been instructed to return files, only have out
the file they are working on, etc. If they can scan a pile of folders for the ‘green folder’,
file misplacement is much less likely.
Most offices who color code folders by type of case work out their own – sometimes
tongue-in-cheek – means of identifying the different subjects: white is probate, red
personal injury, green real estate, blue corporate, and so on.
This particular implementation will not be useful, however, for an office that only
handles one type of case, or for a general practitioner with twenty or more general ‘types’
of cases to deal with. The same concept can still be used; some examples follow:
•
•
•
Give each new year a different color
Color files according to the primary attorney on the case
If your firm only handles a few clients, color by client.
Tailor your own particular use of this idea to fit your own firm, attorneys and clients.
There is no ‘best’ system for any given office; the one necessity is that all attorneys
within the firm must be using the same system.
TIP # 2
Combine effects.
All right, so now you have a variety of colored file folders. There is obviously more
available, however, than a colored folder. Colored labels are available, as are different
colored dots that can be affixed to a folder or a label. You can combine these to convey a
wealth of information about your firm’s files.
Depending on the size of the firm, you may wish to give each attorney a differently
colored label, or change label colors with the start of each new year. New label colors
with the start of each new year is especially helpful if your office uses a numeric file
labeling system that starts with the last two digits of the year, e.g. 02-0021. That way
egregious misfilings will be noticed immediately.
An excellent idea is to either change the label color for closed files (since most
authorities agree these files should be renumbered anyway) or, if they retained their
original labels, to ‘red-dot’ them indicating they are closed. That way, anyone skimming
a row of files will note that a closed file has been intermixed with the active ones. Dots
can also be used to ‘flag’ files that are scheduled for trial, or for which a client conference
has been scheduled, or what ever would be most helpful for you.
V. FILE CONTENTS
A. Documenting the File.
Maintain a log that shows all documents placed in a file or removed from a file, along
with a notation in the case of a removal. (this can be as simple as a sheet of lined paper).
Bates stamping. (again, simply hand numbering each document in the file will help).
B. Subdividing a File.
1. Administrative
Fee Agreement
Trust Ledger Card (in closed file)
Associated Counsel Agreement
Medical Releases
Other Authorizations of Liens
2. Correspondence
Generated by Your Office
3. Correspondence
Received by Your Office
4. Court Documents
5. Evidence
Blueprints
Contracts / Other Agreements
Medical Records
Police Records
What should the well-dressed file include?
•
•
Fee Agreement !!!
Any other necessary authorizations or contracts between you and anybody else
involved
•
•
•
•
•
•
New matter information sheet
Case progress form or notes form
Place to keep telephone messages
Log of information in the file
Separate locations for all evidence, exhibits, etc.
Documentation for all expenses associated with the file
All closed files should contain, in addition
•
•
Copy of the client’s trust account ledger card
Completed file closing check-list
C. General File Organization Systems
There are many different ways that firms set up file organizational systems; no one
system is intrinsically best, but they share certain characteristics:
•
Some sort of master index or log of all files in the office. Without this, you will
have no record of a file that has been taken home or misplaced, and you will have
no way to see at a glance the total number of files that you are working on at any
given time.
•
A consistent naming or numbering system for all files in the office. While
statistics show that it’s easier to misfile alphabetically rather than numerically
organized files, most people don’t like having a file whose numerical name gives
no clue to its contents. You may want to combine names with numbers, as in
02Smith. You should also have something about the physical appearance of the
file or its label give you a hint as to the age of the file. For example, you could
start a new color each year or preface each file name with the year the file was
opened. This makes it easier for you to see at a glance the relative ages of the
matters you are working on.
•
Within the file itself, information must be (a) organized and (b) logged. Logging
each item in a file, although an extra administrative burden, is imperative in order
that you will be able to have a running list of all file contents that you can use in
case that you mislay an item in the file. Logging information can be as simple as
having a lined piece of paper placed in the file, or behind each organizational
divider, recording each document that was placed in the file, the date, and any
subsequent activity for that document (such as being removed).
As far as organizing the material in the file goes, there are several adequate alternate
methods, which include:
•
Using the time-honored method of attaching a two-hole punch clip to either side
of the file folder, and placing all correspondence in chronological order on one
side, and all court documents in chronological order on the other.
•
Using an accordion folder or some other ‘master file folder’ and within it placing
multiple small manila files labeled as to contents. Typical content files would
include correspondence, administrative work, court documents, police reports,
medical records, and so on.
•
Three-hole punching all material and keeping a case ‘notebook’, with material
organized chronologically behind tabs separating different topic areas.
VI. FILE LOCATION
A. Reasons for File Location Management
• Central storage means that all attorneys and all staff know the location of any
given file, so they can help with it if need be
• Closing files becomes much easier
• Files don’t get lost, reducing risk of malpractice
• Making it harder for disgruntled employees or associates to steal files
B. Reasons Why Files Are Not Kept Where They Are Supposed To Be
• Firms without good tickler systems need to have the file physically present as a
reminder of what needs to be done
• Attorneys claim that file needs to be at hand if client calls
• Attorneys like security and control of having files with them
C. Sample File Location Policy
All active files for a particular work group, such as domestic, corporate, or workers’
compensation, should be stored in a central location, regardless of which attorney is
primarily responsible for them. As soon as file is closed, it should be renumbered and
transferred to a closed file storage location on-site.
Files should remain in the file storage area unless they are currently being worked on. In
other words, a file that is waiting for a medical report to be sent in and added is not
currently being worked on: it should be in storage. A file that will be tickled in a month
for a motion that needs to be completed within 40 days is not currently being worked on:
it should be in storage.
Files that are currently being worked on should be on the desk of the attorney, legal
assistant or secretary doing he work until, and only until, that work is completed. Then
the file should be returned to the central file storage area with the tickle date put into the
case management system that shows when the file should be pulled next.
If a file is not currently with the person to whom the file was assigned, the file’s
temporary location should be noted in a user-definable field in your case management
system. This includes any files that are taken home, a practice that should be strongly
discouraged.
File clerks should not move whole files around; if pieces of information within the file
need to be copied, the removal of the document should be noted in the file’s internal log.
VII. CONCLUSION
The overall organization of a law office often takes roots in the way the files are handled
and managed. From this article the reader will see that there are many options and
possibilities to create a well working records management system. The key to success is
select the system that will work best for your practice, document the procedures and
make sure every one complies with them
Gisela B. Bradley is the founder and CEO of Law Practice Management Consulting.
Prior to Law Practice Management Consulting she served Texas attorneys with practice
management advice and education as the first director of the Law Practice Management
Program of the State Bar of Texas. She successfully built this program from the start and
designed and developed the products and services offered. During her almost eleven
years of service at the State Bar of Texas she developed award-winning educational
programs, authored numerous articles on legal management trends, and presented
workshops and seminars on local, state and national levels. She also consulted with law
firms and individual attorneys on improving their management practices.
Before coming to the State Bar of Texas Ms. Bradley managed law firms of varying sizes
for fifteen years.
Ms. Bradley served on the American Bar Association's Law Practice Management
Advisors' Committee from 1996 to 2005. She also serves on several Advisory Boards of
legal consulting and attorney training firms.
Ms. Bradley focuses on assisting solo and small firm practitioners in improving the
efficiency of their client service, and increasing their productivity while enhancing the
quality of their work product. She provides management consultations to firms as well as
individual management coaching to attorneys.
Examples of accomplishments at the State Bar of Texas include:
Writing the Start Up Kit For A Small Law Practice, a step-by-step guide to opening
your own law office;
Developing and presenting Planning to Conquer the Real World of Private Practice, a
practical preparation course for law students;
Developing and presenting The Law Office Management Institute, a 12-months
comprehensive management training course for attorneys;
Developing How to Organize and Manage Your Law Practice, a series of seminars for
12 practice specific areas.
Ms. Bradley received her BA in Liberal Studies with a major in Accounting from St.
Edward's University in Austin, Texas
PLANNING FOR FINANCIAL SUCCESS
By Gisela B. Bradley
I.
INTRODUCTION
To achieve financial success in your law practice you must first define what that
means to you, create a plan to reach your financial goals, monitor the development
and growth of your financial health, and be prepared to take corrective actions when
necessary.
To gain financial success assumes a steady flow of clients, competent client
representation, and the ability to manage the firm’s affairs efficiently and cost
effectively. It is said that only when the lawyer is able to meet his/her reasonable
economic needs, he/she is most able to serve the client in the client’s best interest.
For purposes of this article the author narrows the focus on client communication,
fee structure and related issues, and banking relationships and bank accounts, as they
relate to the planning for financial success process. The material presented here is by
no means an exhaustive study of the subject. The reader is encouraged to seek
individual guidance from a legal management consultant, a CPA or a banker for
additional information.
II.
CLIENT COMMUNICATION
a. Client Expectations
There is an old saying “A client does not care how much you know until he
knows how much you care” – that points to the relationship side of the attorney /
client interaction. A side that is so often overlooked or ignored by the attorney. Yet it
is the relationship between the client and attorney that will set the tone and determine
the level of success with that client for the duration of the association with the firm.
Clients typically only have an involvement with the law once or twice in their lives;
they really don’t understand the process the lawyer lives with on a daily basis. That is
why it is so important to establish a clear line of communication with the client. The
client has four basic needs: they want to tell their story, they want to be listened to,
they want to know that they have come to the right place, and they want their problem
solved. Once the client feels that you can meet these needs, he also wants to know
how much it will cost him.
With as many choices as the client has for legal representation, he is naturally
looking for the best service at the most cost effective price. It is the lawyer’s
responsibility to communicate clearly if and how the firm can meet the client’s needs.
b. Firm Expectations
A successful attorney/client relationship is based on two-way communication.
The attorney’s responsibility does not just consist of listening to the client’s needs,
but also to express the firm’s needs and expectations of the client. In particular, when
it comes to billing issues. During the initial client interview the attorney should
explain the firm’s process of handling the case. Who will be working on the case, at
what billing rates, and how often will the client be billed. It may be helpful to show
the client a sample bill to make sure the format and extent of detailed information
meets the client’s needs. If the firm’s policy is to ask for a retainer, the client needs to
know how the retainer will be applied to the charges, and whether or not he is
responsible for replenishing the retainer. Equally important is to let the client know
the firm’s expectation regarding payment of the bill. What are the firm’s payment
terms? Will there be interest accruing on late payments? How does the firm handle
fee disputes, etc.? In some firms someone other than the attorney, i.e. the business
manager or bookkeeper, conveys this type of information to the client. This
distinguishes the attorney as the legal service provider from the business side of the
firm. However, regardless of the policy you adopt, the information must be given to
the client before the case is accepted. The client needs to know, and has a right to
know, all aspects of the relationship before he hires the firm. This will also contribute
to payment by the client according to firm expectations.
c. Internal Procedures for Communication
Internal procedures must be established to handle ongoing communication with
the client. From the first office visit by the client a process should be in place about
what type of information to obtain from the client and how, i.e. by way of ‘intake
form’ or ‘client information sheet’ or a personal interview. Secondly, there should be
a process for providing the client with information about the firm, i.e. a firm brochure
or resume. Once the client has hired the firm and the firm has accepted the case, each
client should be treated as if he was the only client in the firm! Following are a few
examples of how to accomplish that:
1. Return phone calls promptly – your internal systems should be able to identify
which calls must be returned by the attorney and which calls can be answered by
someone else.
2. Make sure your clients know your staff, and your staff knows your clients. This
will prevent the client from insisting on speaking to the attorney if he knows that
your staff is part of your team.
3. Create a regular flow of information to the client. You can do this by sending
copies of everything to the client, use your invoice as a status report if you bill on
a regular basis, or send out a separate status report – even if nothing is happening
in the case at the time.
4. Ask the client for feedback. Your internal systems may include a tickler to remind
you at certain intervals of the case to get client feedback and input. This will
include the client as a ‘team member’ and will make him feel more in control of
his own case, and give him a better understanding of the legal system.
5. Under promise and over deliver. Be realistic in forecasting your work. Your
internal systems should give you reliable information about deadlines and
commitments already booked, so that you can give the client a good estimate as to
when the work can be completed. Don’t promise something ‘to make the sale’ and
then find yourself unable to deliver. It makes a much better impression on the
client if circumstances are explained honestly and then the work is delivered when
promised or even before!
d. Fee Agreements
When all the necessary information has been shared to make the hiring /
accepting decision, all terms of the agreement should be reduced to written form.
The written agreement should explain all charges to be made and the need for
timely payment by the client.
III.
FEE STRUCTURE
a. Market Analysis / Observations
In order to price your services competitively you must know what the market
around you is doing. That does not mean that you need to fall in step with every
one else, it simply means that you should be aware of what similar services are
priced at in your market. It is just one part of the billing rate equation. Additional
sources of billing information may be your local bar association as well as other
professional organizations.
b. Firm Financial Needs
Regardless of what other firms are charging, you must look at your own
financial needs as the second and equally important part of your billing rate
equation. What does it cost you to provide one hour of service? What does it cost
you to keep the doors open per hour? Your overhead expenses may be very
different from the firm down the street. Does that mean your billing rates should /
could be different? When you examine the firm’s financial needs, also keep in
mind any upcoming expenditure, i.e. computer upgrades, other equipment
acquisitions, new furniture, planned expansion, etc. You will find a sample fee
calculation formula under d. Setting Fees.
c. Clients’ Ability to Pay
When establishing your fee schedule a number of variables must be taken
into consideration: the market, your own needs, and the client’s ability to pay.
Economic downturns can have a devastating affect on your own firm as well as
your clients’ business. If your research shows that your client’s business is about
to be impacted by an economic or other event, which will render him unable to
pay your bills, your overall fee structure may need reviewing to work with the
client through this down time. The key is to seek a balance in your cash flow
sufficient to meet your firm’s needs and continue to serve your clients. The best
way to accomplish that is to keep informed, have a good communication system
with the client, and engage in advance planning.
d. Setting Fees.
Today’s market and increased client sophistication when selecting legal
services are making it necessary to carefully evaluate billing practices. Whether
you prefer task based billing, value billing, hourly billing or other alternative
billing methods, it is crucial to know what the cost of each billable hour is. Only
after you have determined the cost of each billable hour, will you be able to
structure your fee arrangements. Your calculations will show you where your
break-even point is, as well as what your profit margin is.
Following is a sample formula (by Jay Foonberg, author of How to Start and
Build a Law Practice) you can use to determine the cost per available hour. This
formula is for a solo practitioner with a monthly salary of $5,000, and a secretary
at $2,000 per month. The office rent is estimated at $2,500, a part time
runner/clerk at $500 and taxes, insurance, supplies, etc. at a total of $2,600 per
month. This formula may be adjusted for groups:
Total monthly expenses:
Less attorney’s salary
Overhead costs:
Divided by available hours (160)
Overhead cost per available hours
Plus attorney’s rate (5000:160)
Total cost per available hour:
$12,600.00
$ 5,000.00
$ 7,600.00
$
$
$
47.50
31.25
78.75
This calculation results in a cost of $78.75 per available hour. If you billed
your time at $78.75 and billed 40 hours per week, and your fixed and variable
expenses were the same as in the above example, you would be at break-even.
Any billing above $78.75 would result in profit. The danger in this analysis is that
it makes no allowance for billing adjustments, such as write-downs or write-offs,
nor billing at less than full time each week.
Therefore, while it is absolutely necessary to know the cost of each billable
hour, you must take the collectibility variables into consideration when setting
your fee.
e. Disbursements Recovery Policies
Some firms establish a policy whereby the firm will advance client expenses
such as filing fees, court costs, court reporters, expert witnesses, process servers,
etc. up to a certain dollar amount and then bill it to the client. The witness, the
court reporter, or any other third party will bill anything in excess of this dollar
amount directly to the client. Other firms have policies where no expenses will be
advanced, instead the client will be asked to pay a certain amount of money up
front to cover anticipated third party expenses. What ever your policy may be you
need to take these situations into consideration when making your financial
projections.
f. Discounting Fees
I have yet to meet an attorney who has not discounted his fees for whatever
reason. May that be as a favor to a friend, neighbor, family member, or simply a
client who cannot afford the regular fee. I am in no way advocating changing this.
However, in planning for financial success I am strongly suggesting that you keep
track of discounted fees. When you practice the exercise above to determine what
your cost per hour is to deliver legal services, you know how far you can discount
your fees before jeopardizing the economic health of your practice. For example
if your per hour cost is $80 and your regular billing rate is $125, your profit
margin is $45 per hour. This is the range in which you can discount. Of course I
must cautiously point out that you should also calculate your realization rate to
know what your effective billing rate is and you will find that the profit margin
shrinks somewhat. For example: Total dollars collected per month divided by the
number of hours billed per month results in the effective billing rate. Take that
rate and compare it to your per hour cost and you will have a more realistic profit
margin.
Your internal accounting system should be able to give you this information
on a regular basis so that you can make the appropriate management decisions on
a day-by-day basis. Without this knowledge you will still discount your fees, but
how do you know what kind of discounts you can give before you find yourself
taking shortcuts in the services you provide.
g. Collecting Fees
According to Jay Foonberg, the author of ‘How to Start and Build Your Law
Practice’ “ if a client doesn’t have the money up front to hire you, he won’t have
it after you have done the work either”. Therefore, his motto is “Cash Up Front!”
For all the other lawyers who have accounts receivable to collect, here are some
suggestions:
1.
Have a clear fee agreement that is signed by the client and the lawyer.
2.
Bill clearly, accurately and regularly.
3.
Try to get retainer fees in advance.
4.
Stay on top of your accounts receivable.
5.
Have form letters in place for quick mail out when necessary.
6.
Be aware of slow down in payments that may signal future problems with
collections.
7.
Develop script for someone other than the lawyer to use when making
collection calls.
8.
Offer discounts before writing them off completely.
9.
Remember that a lawsuit for the collection of outstanding legal fees may
invite a complaint or even a malpractice claim.
h. Accounts Receivable
If you are using an automated time and billing system, chances are very
good that you have a built-in aged accounts receivable schedule. Be sure to print
it out after each billing cycle and review it carefully. You may have various
options for the format of the print out, i.e. names only or names with addresses
and phone numbers. The latter makes it easier to initiate contact at the time of
review. You may also want to check your software program to see if it has
automatic reminder letters. Some applications have form letters already as a part
of the system. Review them and add your own touches as needed. The advantage
of these form letters is that you might be able to tell the system that you want
letter No. 1 generated for every one in the 30-day column, or letter No. 2 for
every one in the 60-day column, etc. You can substantially minimize your
collection problems by staying on top of your accounts receivable. This means
that if your payment terms are ‘Upon Receipt’, and your accounts receivable
schedule shows someone in the 30-day column, that is the time to pick up the
phone. The client may not have received the invoice but is ready to pay as soon as
you fax him a copy. The client may have a question about one item on the bill,
but hasn’t had the time to call yet. Answer the question and ask when you might
expect payment. If you do not follow up on a regular basis, the item will move
another column to the right and in doing so will become increasingly harder to
collect. Uncollected accounts receivable affect your realization rate. To become
financially successful means to be in control of your practice. That includes
working the accounts receivable. If you as the lawyer are not comfortable with
this task yourself, hire someone on a part time basis – once a month – to make the
collection calls and keep your accounts receivable manageable.
IV.
BANKING RELATIONSHIPS / BANK ACCOUNTS
a. Choosing Your Bank / Banker
The relationship you develop with your bank and your personal banker should
be a mutually beneficial one for many years to come. To help you decide where to
keep your bank accounts, ask yourself the following questions:
1. Depending on my type of practice, does it make a difference to my clients
where I bank?
2. Depending on my type of practice, can the bank be a potential referral
source for more clients?
3. Can the Bank accommodate my needs for the various types of accounts
required for my practice?
4. Does the Bank have an officer who is familiar with the legal profession’s
banking needs?
5. Can the Bank handle IOLTA accounts?
6. Is the Bank’s location convenient to my office?
7. Does the Bank offer after hour deposits?
8. How flexible is the Bank with interest rates?
The answers to those questions will go a long way towards choosing a bank
you can work with for many years to come.
b. LOC (Line of Credit), Loans, Overdrafts
From time to time a law firm, even the most financially successful law firm,
may find itself in need of funds. It may be to enable the firm to take on a larger
case requiring a certain amount of cash flow for out of pocket expenses; it may be
a relocation of the office, or the acquisition of expensive equipment, or a number
of other out of the ordinary events. This is where a good relationship with your
personal banker will prove beneficial. Depending on the nature of your cash
requirement, the most prudent method of borrowing, in my opinion, is for as short
a time as possible, at the lowest possible rate of interest. For example, if you have
a temporary shortage of funds (malpractice premium is due by Monday and the
large settlement is not coming in until Friday) a negotiated overdraft protection
may be the best way to go. If, however, you foresee the necessity for a periodic
expenditure to take care of out-of-pocket expenses in that large case, a Line of
Credit arrangement with your bank may be the most suitable solution. This is
where you draw as needed, pay back, draw again, pay back, etc. etc. A line of
credit arrangement with a bank is often looked at as ‘testing the waters of this
relationship’. The manner in which you handle such an account will build the
relationship with your banker. You are developing a mutual trust relationship,
which in the long run may result in better interest rates, client referrals, etc.
Another benefit of a line-of-credit account is that the interest is calculated on the
outstanding amount, rather than a fixed amount.
If and when it becomes necessary to apply for a loan for a fixed amount at a
certain rate of interest for a fixed length of time, the trust relationship between the
firm and the banker will also determine the extent of flexibility the bank is willing
to work with. A banking relationship is like a courtship by which over time, both
parties can benefit if handled appropriately and a foundation of trust can be
developed.
c. Operating Accounts
I am often asked by solo practitioners ‘why do I need a separate operating
account, everything comes to me anyway?’ My suggestion: Treat your law
practice as a business. Have a separate bank account under the law firm’s name
and title it ‘Operating Account’. This account is used for all items, which relate to
the operation of the law practice, including fees received, operating expenses, and
the payment of attorney draws, or paychecks. This provides a much cleaner audit
trail for business transactions.
d. Trust Accounts
A trust account is established for the purposes of handling client funds. It
should be opened under the firm’s name and titled ‘Trust Account’. What are
client funds? Client funds or 3rd party funds are moneys received by the firm to be
held until a fee is earned or can be disbursed otherwise. For example, a client
retainer should be deposited in the trust account until the work is performed and
can be billed against the retainer. A settlement check from a 3rd party needs to be
deposited in the trust account until such time when proper disbursement to all
parties can be made. This account should never be used for operating transactions.
e. IOLTA Accounts
IOLTA stands for Interest on Lawyers Trust Accounts. This is another type of
trust account, which must be established IF you are handling client funds at an
average bank balance large enough to accrue interest in excess of service charges.
This account is opened under the federal ID number of the Texas Equal Access to
Justice Foundation and any interest accrued minus the service charges is paid to
the Foundation by the bank. I am including a pamphlet in the back of this book on
‘Guidelines for Attorney’ published by the Texas Equal Access to Justice
Foundation.
CONCLUSION
Planning for financial success means nothing other than being in control of
your practice, establishing sound business practices, nurturing good client
relationships and knowing the value of your work. Developing the right balance
between wanting to serve those who cannot always pay the full price, while at the
same time building a trust relationship with those who can help you through some
financially challenging periods is a lifeline for many law firms. Learning these
skills does not happen overnight, but with patience and ongoing monitoring and
adjusting processes financial success can be achieved much more so than living in
a reactionary practice.
Gisela B. Bradley is the founder and CEO of Law Practice Management Consulting.
Prior to Law Practice Management Consulting she served Texas attorneys with practice
management advice and education as the first director of the Law Practice Management
Program of the State Bar of Texas. She successfully built this program from the start and
designed and developed the products and services offered. During her almost eleven
years of service at the State Bar of Texas she developed award-winning educational
programs, authored numerous articles on legal management trends, and presented
workshops and seminars on local, state and national levels. She also consulted with law
firms and individual attorneys on improving their management practices.
Before coming to the State Bar of Texas Ms. Bradley managed law firms of varying sizes
for fifteen years.
Ms. Bradley served on the American Bar Association's Law Practice Management
Advisors' Committee from 1996 to 2005. She also serves on several Advisory Boards of
legal consulting and attorney training firms.
Ms. Bradley focuses on assisting solo and small firm practitioners in improving the
efficiency of their client service, and increasing their productivity while enhancing the
quality of their work product. She provides management consultations to firms as well as
individual management coaching to attorneys.
Examples of accomplishments at the State Bar of Texas include:
Writing the Start Up Kit For A Small Law Practice, a step-by-step guide to opening
your own law office;
Developing and presenting Planning to Conquer the Real World of Private Practice, a
practical preparation course for law students;
Developing and presenting The Law Office Management Institute, a 12-months
comprehensive management training course for attorneys;
Developing How to Organize and Manage Your Law Practice, a series of seminars for
12 practice specific areas.
Ms. Bradley received her BA in Liberal Studies with a major in Accounting from St.
Edward's University in Austin, Texas
ESTABLISHING INTERNAL CONTROLS
Article Written by:
Gisela B. Bradley, Director, Law Office Management Program, State
Bar of Texas, Austin, Texas
Gisela B. Bradley is the founder and CEO of Law Practice Management Consulting.
Prior to Law Practice Management Consulting she served Texas attorneys with practice
management advice and education as the first director of the Law Practice Management
Program of the State Bar of Texas. She successfully built this program from the start and
designed and developed the products and services offered. During her almost eleven
years of service at the State Bar of Texas she developed award-winning educational
programs, authored numerous articles on legal management trends, and presented
workshops and seminars on local, state and national levels. She also consulted with law
firms and individual attorneys on improving their management practices.
Before coming to the State Bar of Texas Ms. Bradley managed law firms of varying sizes
for fifteen years.
Ms. Bradley served on the American Bar Association's Law Practice Management
Advisors' Committee from 1996 to 2005. She also serves on several Advisory Boards of
legal consulting and attorney training firms.
Ms. Bradley focuses on assisting solo and small firm practitioners in improving the
efficiency of their client service, and increasing their productivity while enhancing the
quality of their work product. She provides management consultations to firms as well as
individual management coaching to attorneys.
Examples of accomplishments at the State Bar of Texas include:
Writing the Start Up Kit For A Small Law Practice, a step-by-step guide to opening
your own law office;
Developing and presenting Planning to Conquer the Real World of Private Practice, a
practical preparation course for law students;
Developing and presenting The Law Office Management Institute, a 12-months
comprehensive management training course for attorneys;
Developing How to Organize and Manage Your Law Practice, a series of seminars for
12 practice specific areas.
Ms. Bradley received her BA in Liberal Studies with a major in Accounting from St.
Edward's University in Austin, Texas
INTERNAL CONTROLS - An Integral Part of Law Office
Management
by: Gisela B. Bradley
An internal control structure is a system of safeguarding the firm’s resources. It
provides a way to collect, organize, record and report information that is needed for the
efficient operation of a law practice. There are several operating activities which require
internal controls. This article addresses the activities of practice management, production,
revenue, expenditures, and financial and management reporting.
The management of the firm defines practice objectives, which will be met by
way of implementing internal control procedures and policies. Following are examples of
internal control goals to be implemented in each of the above mentioned activities:
Practice Management
•
New clients and/or new matters will be approved by management before
acceptance.
•
Contingent fee work will be evaluated and approved by management.
•
Pro bono work will be reviewed and approved by management.
•
Written firm policies and procedures will be communicated to all firm personnel.
•
Billing rates and terms as well as client credit limits will be set by management
and communicated to clients and staff.
•
Non-standard rates or billing arrangements will be approved by management.
•
Billing and collection problems will be addressed before they effect the firm’s
finances.
•
Legal work as well as attorney and paralegal performance will be reviewed
regularly.
•
Write-offs of accounts receivable or work-in-progress will be evaluated and
approved by management.
•
Maintenance procedures for a docket control system will be established.
•
Background information for purposes of conflict checking will be established.
Production
•
A log or some other tracking system will be maintained in a timely manner to
record and report time.
•
All recorded billable time will be charged to the correct client file.
•
All non-billable time will be recorded in the appropriate accounts provided for
such activities (i.e.CLE, pro-bono work, management, or administrative hours).
Revenue
•
All recorded time will be billed regularly at the pre-approved rates.
•
All bills will be reviewed by management before mailing and will be posted to the
client’s file in a timely fashion.
•
Client advances (third party billings) will be reviewed for pre-approved amounts.
•
Direct billing will be initiated for costs in excess of approved advance amounts.
•
•
•
All incoming funds are logged in and properly deposited
Any unbilled time and expenses will be reviewed regularly.
Aged accounts receivable will be reviewed and followed up on.
Expenditures
•
All disbursements for operating or capital expenditures will be authorized by
management.
•
Purchasing of goods and services will be authorized by designated personnel only.
•
Check writing and signing procedures will be established.
•
All goods and services will be verified against goods and services purchased and
invoices and shipping documents will be attached to the check copy.
•
Disbursement transactions will be properly classified and recorded for financial
and management reporting.
Financial and Management Reporting
•
Standard accounting policies and procedures will be established and approved by
management.
•
Information contained in financial and management reports will be verified for
accuracy, it will be meaningful, understandable and reliable.
•
Financial and management reports will be prepared and distributed regularly.
•
An annual operating budget will be prepared and approved.
•
Discrepancies between budgeted and actual results will be reviewed regularly.
•
All tax returns and other reports will be filed regularly and timely.
The written policies and procedures to achieve these goals will be more detailed
and will clarify each individual aspect of the control system. The users of such a system
will realize that non-compliance with these policies will have a direct effect on the
revenue potential of the firm.
A crucial component of internal control is follow-up. The information contained
in the financial reports is to be reviewed and compared with management’s objectives.
This process allows refinement of the operating cycle. Decisions will be made based on
the reported information, therefore the integrity of the reporting system must be
preserved and never viewed as a simple clerical exercise.
Gisela B. Bradley is the founder and CEO of Law Practice Management Consulting.
Prior to Law Practice Management Consulting she served Texas attorneys with practice
management advice and education as the first director of the Law Practice Management
Program of the State Bar of Texas. She successfully built this program from the start and
designed and developed the products and services offered. During her almost eleven
years of service at the State Bar of Texas she developed award-winning educational
programs, authored numerous articles on legal management trends, and presented
workshops and seminars on local, state and national levels. She also consulted with law
firms and individual attorneys on improving their management practices.
Before coming to the State Bar of Texas Ms. Bradley managed law firms of varying sizes
for fifteen years.
Ms. Bradley served on the American Bar Association's Law Practice Management
Advisors' Committee from 1996 to 2005. She also serves on several Advisory Boards of
legal consulting and attorney training firms.
Ms. Bradley focuses on assisting solo and small firm practitioners in improving the
efficiency of their client service, and increasing their productivity while enhancing the
quality of their work product. She provides management consultations to firms as well as
individual management coaching to attorneys.
Examples of accomplishments at the State Bar of Texas include:
Writing the Start Up Kit For A Small Law Practice, a step-by-step guide to opening
your own law office;
Developing and presenting Planning to Conquer the Real World of Private Practice, a
practical preparation course for law students;
Developing and presenting The Law Office Management Institute, a 12-months
comprehensive management training course for attorneys;
Developing How to Organize and Manage Your Law Practice, a series of seminars for
12 practice specific areas.
Ms. Bradley received her BA in Liberal Studies with a major in Accounting from St.
Edward's University in Austin, Texas
Develop Time Management Systems
By Gisela B. Bradley
Following are some suggestions on calendaring, appointment setting, tickler systems, and
docket control. This information refers to manual systems to address the time management
issues. I also make reference to the earlier software portion of this paper for electronic
calendaring and docket control.
A. Calendaring, Appointment Setting, Tickler Systems and Docket Control
Note: Firms use different terms to talk about how they set appointments, manage
court dates, reminders, etc., including such terms as “diary,” “docket,” “tickler,”
“calendar,” and so on. We’re just using three terms, defined as follows:
•
•
•
Calendar: any tool that lets you record any type of appointment or deadline on it
Docket: a calendar that only includes court dates
Tickler: a reminder of an upcoming event
1. Useful Tools
•
•
•
•
•
•
•
Single Large desk calendar with plenty of room in each day for entries.
Calendar should preferably have space for to-dos, reminders, and
miscellaneous as well as appointments (for example, a DayTimer)
If you must, separate calendar books for attorneys. Recommended
instead: small notebooks that will hold copies of weekly schedules, copied
from the main calendar or printed from your case management software.
However, your attorney may want you to keep “private” appointments in a
separate book. Note that using calendaring software makes keeping public
vs. private appointments much simpler.
Wipe-off wall calendar for major events that may involve the entire office
(i.e. closings, depositions, holidays, etc.) DO NOT place a wall calendar,
or any other calendar for that matter, in any place where clients can see it.
This includes the lunchroom, if you ever take clients back there to get
them sodas or coffee.
Tear-off appointment slips that the attorneys can fill out when they are out
of the office and give to the secretary that makes appointments when they
get back.
Calendaring/Case management software program, preferably installed on a
network.
Filing box for ticklers, either a small box that holds the index cards (if
you’re just writing notes for your ticklers) or a large accordion-type folder
(if you’re placing the tickle documents inside the tickle file as you set it
up).
Firms that have a busy court docket may want a separate calendar or
separate reminder box for court appearances only. The disadvantages:
time, trouble, and the confusion that results from having separate systems;
in addition, you will have to cross-check with the other calendar to make
sure that a regular appointment doesn’t conflict with a court appointment.
Advantages: double-check your most important appointments (court
dates), easier to talk with judges and staff with the information readily in
front of you, easy to spot double-ups in larger offices where two attorneys
are supposed to be in the same court the same morning (ask one to cover
for the other).
2. General Tips
•
•
•
•
•
•
•
•
Try above all to keep your calendaring systems simple. If everyone in the
office does not understand the system and use it 100% of the time, it’s
worthless--once people do not trust the system, they will begin to create
systems of their own, and chaos will result. So, if at all possible, don’t set
up multiple calendars where one calendar will do, or separate to-dos,
reminder lists, private calendars, public calendars, dockets, hold-forpickup items, etc. if it’s possible to keep track of them in the same place.
Keep ONE calendar. ONE person makes entries on the calendar. Use
calendar slips to make appointments when the attorney is away from the
office, then transfer to the main calendar.
Don’t just calendar important events like hearings, deadlines, and statute
of limitations expirations. Put reminders of these events on the calendar
as well to let you know that you need to start worrying about these items.
Remember to calendar not just what you are supposed to do, but what
other people are supposed to do as well. For example, a common reason
for P.I. cases dragging on as long as they do is that the attorney who
requested the medical records or the response to the interrogatories forgot
to follow up when the records or the response was never received. If you
request something, always put on your calendar the due date for the
response.
Never make any sort of request of anybody, inside the office or outside of
it, without having a deadline associated with it.
Never allow a file to go back into the file cabinet without having a
calendar entry associated with it. If you follow this advice, you will never
lose files that have gone off into limbo and been forgotten. You will
always have a calendared item (even if it’s just “Pull the Jones file today
to see where we are”) to remind you that the file is active.
Don’t calendar in pencil and erase changes. Write everything in pen
(assuming it’s not computerized) and cross out changes. Sooner or later
you will be glad you can prove the original item was on your calendar. If
you use a computerized calendaring system, look for one that can give you
an audit trail of all changes to the calendar.
Combine calendaring and mail opening functions, when possible. Open
and sort the mail for the attorney, then highlight each item in the mail that
requires a calendar entry to be made and initial it to show that the item has
been transferred to the calendar. Only then deliver the mail to the
•
attorney. This will save A LOT of time as well as keep you better familiar
with what’s going on with the office’s case files. If at ALL possible do
not let attorneys open their own mail. If one person in the office always
opens the mail, try to make that same person the person who keeps the
calendar.
Calendar and schedule not just people but things, as well. A prime
example is your conference rooms. You should always indicate on your
MAIN calendar when the rooms are scheduled, and with whom. If people
must get up and go “sign in” a log in the conference room itself, they
probably won’t make the effort and occasionally you will have a conflict.
3.Ticklers (Reminders)
Categories of reminders:
•
•
•
Reminders for upcoming appointments, deadlines, etc. on the calendar
Reminders for other work you’ve promised to do on a file OR that other people have
promised to do for you
Reminders of people coming in to pick up information, sign documents, etc.
Place reminders for upcoming deadlines, etc. directly on the calendar. If you have a
calendar system that supports to-do lists, place your reminder on the to-do lists.
Place a copy of any piece of paper that refers to an action you’re supposed to complete
into a “tickler file” with the date that action is supposed to be completed written on the top of the
paper. Also include reminders of all things that you’ve asked others to do for you. For example,
if you’ve requested medical records by a particular date, put a copy of your request letter in the
tickler file. Store all pieces chronologically within the file and refer to the file every day to find
your “to-do” and follow-up items for that day.
Place information that people are coming in to pick up or sign in a hold file at the front of
the office, organized chronologically. Make SURE that it is part of someone’s job
responsibilities to call each person who has something in the hold file and has not come into the
office. You can combine this with the tickler file if necessary, but it can be a good idea to have
separate files (One reason is that the receptionist can probably handle everything in the hold file,
but a lawyer, secretary, or legal assistant may have to individually deal with the other items).
4. Case Management/Calendaring Software
A firm-wide docket/case management program is very, very useful indeed, even if you’re a small
firm with a small budget.
•
•
It will enable you to have one central calendar for the entire firm, which can be viewed
and sorted by individual attorneys, workgroups, or however you like. You can also set up
private appointments and entries that pertain only to a set group of people.
Ticklers can be set up once and then have all associated events automatically be
•
•
•
•
•
scheduled
You can easily see schedule conflicts and overlapping resources. For example, you can
see that one attorney is scheduled to be in court in Hays County on a routine appearance
at 10:00 a.m. and another is supposed to be in the very same court at 11:00 a.m. Why not
have one cover for the other?
The program will maintain all kinds of case and client information that can again be
sorted and printed for various purposes. A standard use is printing labels for Christmas
or birthday cards. Remember that you have user-definable fields in which you can store
that information -- or any other you want.
You can also use this software to schedule not only people but resources, such as
conference rooms. This is wonderfully useful for firms that do a lot of real estate
closings or client meetings. Instead of running around looking for a free room, you can
just tell the program to look for whichever space is free and schedule there.
You can link data if you have integration with your billing system; in other words, you
can post a completed appointment with a client as a billed event in your billing module,
complete with all the necessary financial information to process it.
Better systems either have their own electronic mail or link to a third party program,
which means that you can quickly and easily tie in questions mailed to another attorney
to existing appointments, or create an appointment on the fly based on an e-mail entry.
Because of this, programs such as Abacus, TickleX, TimeMatters, Amicus Attorney &
Amicus Assistant, and CaseOrganizer are favorably viewed not only by the firms using them but
also by malpractice insurance carriers, who may lower your premiums based on knowing you
use one of these programs. Cost (not including the general cost of networking) for these
programs should run from $60-$600, depending on the program you choose.
If you do install calendar control software, follow these guidelines:
•
Keep it simple. Again, a program with a lot of bells and whistles that nobody will use is
inferior to a simple program that everyone will follow.
•
Keep it centralized. Do not allow many people, especially if they are not well trained to
make entries or change entries in the calendar.
•
If at all possible, install your calendar on a network. This will enable everyone to be able
to view or print the calendar from his or her desk, but appointment making can still be
centralized in one person’s duties.
•
Anticipate partners or others who will refuse to use a computer, and work around
this. If a partner does not have a computer on his desk, get the secretary to print
out a daily calendar from the program, but DO NOT allow that person to avoid
using the calendar. The calendar will only work if everyone’s schedule can be
counted on to be found.
Gisela B. Bradley is the founder and CEO of Law Practice Management Consulting.
Prior to Law Practice Management Consulting she served Texas attorneys with practice
management advice and education as the first director of the Law Practice Management
Program of the State Bar of Texas. She successfully built this program from the start and
designed and developed the products and services offered. During her almost eleven
years of service at the State Bar of Texas she developed award-winning educational
programs, authored numerous articles on legal management trends, and presented
workshops and seminars on local, state and national levels. She also consulted with law
firms and individual attorneys on improving their management practices.
Before coming to the State Bar of Texas Ms. Bradley managed law firms of varying sizes
for fifteen years.
Ms. Bradley served on the American Bar Association's Law Practice Management
Advisors' Committee from 1996 to 2005. She also serves on several Advisory Boards of
legal consulting and attorney training firms.
Ms. Bradley focuses on assisting solo and small firm practitioners in improving the
efficiency of their client service, and increasing their productivity while enhancing the
quality of their work product. She provides management consultations to firms as well as
individual management coaching to attorneys.
Examples of accomplishments at the State Bar of Texas include:
Writing the Start Up Kit For A Small Law Practice, a step-by-step guide to opening
your own law office;
Developing and presenting Planning to Conquer the Real World of Private Practice, a
practical preparation course for law students;
Developing and presenting The Law Office Management Institute, a 12-months
comprehensive management training course for attorneys;
Developing How to Organize and Manage Your Law Practice, a series of seminars for
12 practice specific areas.
Ms. Bradley received her BA in Liberal Studies with a major in Accounting from St.
Edward's University in Austin, Texas
TIMEKEEPING - or THE JOY OF TIMEKEEPING!
By Gisela B. Bradley
The financial success of your law practice begins with a good system of time record
keeping.
Why is it that lawyers who always keep contemporaneous time records enjoy a 25 to 40
percent higher income than those who do not?
Let’s examine some of the reasons:
1.To be Able to Produce More Meaningful Bills.
Clients are becoming more demanding in wanting to “see” what they are paying for.
Therefore, the more descriptive the invoice - the higher the probability of collecting it. It is very
difficult and time-consuming to draft a detailed, narrative invoice without contemporaneous
time records. You would have to go through the client’s file and review everything that was done
during this billing period. This would most likely result in estimations, loss of detail from
telephone calls, incomplete expense records, etc.
A good timekeeping system, either electronic or manual - will assist you in
capturing the time spent on a case. Whatever system or method you use, be sure to keep
the time book or time slips on your desk in front of you as a constant reminder. Record
all telephone calls and all correspondence. It is important to write your description of services in
exactly the wording you would use on a narrative bill. When you are ready to send your bill, all
the detail of your services will be readily available to draft a meaningful, descriptive bill.
If you do not record your time contemporaneously, you will not be able to remember
later what you did. It is simply not possible to remember everything you did at the end of the
month or the end of the week or even the end of the day.
Following is a time conversion schedule for your convenience, in recording your time:
1 to 6 minutes
7 to 12 minutes
13 to 18 minutes
19 to 24 minutes
25 to 30 minutes
=
=
=
=
=
0.1
0.2
0.3
0.4
0.5
31 to 36 minutes
37 to 42 minutes
43 to 48 minutes
49 to 54 minutes
55 to 60 minutes
=
=
=
=
=
0.6
0.7
0.8
0.9
1.0
As you are disciplining yourselves to make timekeeping a regular process of each day,
you must also teach those to whom you delegate work. Be that other attorneys, paralegals, law
clerks, or secretaries - teach them the importance of accurate, detailed, contemporaneous time
records. You have the ultimate responsibility for your client’s invoice. You can make a much
more informed decision about what to bill the client, when you have all the information in front
of you.
2. To Know the True Value of One’s Services.
If you do not keep accurate time records, you would not know how much of your time
was really spent on a case. To prepare a bill, you would have to estimate every aspect of the
services provided. It is natural that we tend to underestimate the time spent on a task, because we
simply don’t remember everything that was done. How then, can we really know the value of our
service?
3. To Evaluate the Cases for Profitability.
To determine the profitability of a case, simply divide the total fee collected on the case
by the total number of hours expended. This will give you the per hour fee collected. You can
and should perform this calculation on contingent cases as well. This method of testing will
show you which cases are more profitable than others. This is an important management tool. It
will help you streamline your practice. You will be able to manage your cases better by deciding
how much time to spend on less profitable type work and how much time to free up for more
profitable work.
If you feel that you are working too hard for the level of income you generate, take a
look at your time records! If you keep accurate time records (including accountability for nonbillable time) you may find that you are spending too much time on firm management tasks, or
maybe you are accepting too many community or association responsibilities, or, as stated
above, spend too much time on cases that are not profitable.
The knowledge of where and how your time and efforts are expended, allows you to
make the decisions needed to achieve your goals!
It may help for you to establish a yearly income goal, and determine how many billable
hours it will take to achieve this goal. Then, divide that number of billable hours per year by the
number of work days in the year. This will give you a daily budget of billable hours required to
meet your goal.
At the end of each day, total up your billable hours and compare with your daily budget.
You will know immediately if you are on target to reach your income goal, or if adjustments are
in order.
By keeping proper time records, you are much more in control of your financial health,
then having to deal with “surprises” several months after the fact. If all this means - having to
change old habits - I think, you will understand that it will be much more rewarding to learn new
(timekeeping) habits.
The key is to keep time records, not billing records. Do not evaluate a service at the time
it is provided - as to whether it is billable or not. Record all time and then decide later if it should
be billed. This assures that no billable services are omitted from the invoice.
To help you accomplish your goals, it takes commitment to be disciplined, it takes
commitment to be consistent, and it takes commitment to follow up and take corrective actions
when necessary!
BILLING
====================================================================
Your time records are the source of information for your clients’ invoices. If you
recorded everything you did, it is just a matter of transferring the information from your time
records to your billing format.
But before we do this, let’s examine the impact an invoice can have on the client, and
how we can achieve ultimate collectibility. We will look at
•
•
•
•
•
•
overall communication with the client re: billing;
what can / should be billed;
timeliness of billing;
billing methods;
billing formats; and
billing accuracy (clerical).
1.
Communication with Client re: Billing.
As a part of your initial client interview, explain your billing practices, so that the client
can ask any questions at that time. This will prevent surprises when you mail out your bill.
Explain the fee structure; who will work on the case, and at which rate. It is recommended that
you introduce your team to the client. Explain the frequency of billing, expense reimbursement
policy or direct billing by third parties, and last but not least - unless you have a retainer to bill
against - discuss the payment due date. Some firms allow cash discounts for payments within ten
days, others are talking about penalties for late payments. Whatever your policy is - do
communicate it to your clients before you accept a case!
2. What Can / Should be Billed.
In addition to billing for your time at whatever rate or value you and your client agreed to
- there are several service related expenses, such as long distance, copying, fax and postage
expenses, which many firms bill out to their clients.
Third party expenses - such as expert witness fees, court reporters’ fees, filing fees, etc.,
for which you may want to have a separate agreement for. Some firms set a dollar limit to what
they will advance for the client, others instruct third parties to bill the client directly.
Travel expenses, delivery charges, etc. - be sure to include copies of receipts for every
expense you are billing to your client. Some clients even require copies of your long distance
bill!
Billing for technology - technology resources have often been viewed as part of a law
firm’s overhead - and were not charged to the client. With some law firms making huge profits
on photocopy charges, fax charges, etc. clients have taken a dim view on lawyers profiting from
such expenses. After all, “they are in business to practice law, not to sell photocopies!”
Nevertheless, to recoup the cost of technology is an acceptable practice. The client benefits from
the attorney’s quick access to information, and the use of technology, in many cases, is the only
vehicle to accommodate this. The law firm must be careful not to charge for the learning period
of on-line legal research, or to create a data base for the client. Persons performing legal
research should charge for their time actually spend doing the work. Similarly, if the cost of an
on-line service is to be passed on to the client, the charge should reflect the actual cost incurred
by the firm. Additionally, if a law firm uses more technology, i.e., with document assembly
programs, to perform a service for the client, this technology may be billed out at either a time
(computer time) charge or a flat fee. These systems are expensive to develop and maintain, but
reduce the time an attorney must spend creating a document while producing the work faster, at
higher quality, and reduced cost.
3. Timeliness of Billing.
If you fail to bill your clients fairly and promptly - you may lose your practice! Prepare
your bills on a regular basis. Monthly would be best. The client likes to see what is going on in
his case on a regular basis, and may find it easier to “pay as you go” than being surprised or,
worse yet, shocked to receive one big bill at the end of the case. Also, you incur your rent,
payroll and other expenses on a monthly or even more frequent basis. Billing your clients
monthly will match your income against expenses.
As soon as a case is completed, send out a final bill, preferably within ten days of
settlement or other conclusion. If you do not send your final bill, which often is a large one,
while the momentum of the conclusion of the case is high, your chances of collectibility
diminish with each passing day.
4. Billing Methods.
Determine the rate structure best suited for a particular case. Discuss the result with your
client. You may decide on a fixed fee, an hourly rate, a contingency arrangement, or a retainer
basis. Whatever the outcome - be sure the client is informed completely and all his questions are
answered - to avoid later surprises and / or disputes.
5. Billing Format.
Be as explicit as possible. Which of the following invoices do you think your client
would be most willing to pay?
A. For professional services rendered.
$500
B. For professional services rendered. Motion for Change of Venue and
Answer to Complaint.
$500
C. For professional services rendered. Anderson vs. Baker, Los Angeles Superior Court
Case No. 789012: Analysis of Complaint; office conference with Tom Baker to obtain
facts of case and to discuss strategy of defending; preparation of Motion for Change of
Venue, including Notice of Motion for Change of Venue, Points and Authorities in
Support of Motion; Declaration of Tom Baker in Support of Motion; Declaration of
Attorney in Support of Motion; preparation of Proposed Answer to Complaint;
preparation
of Declaration of Service by Mail of various pleadings. Telephone
conference with Tom
Baker and opposing counsel concerning no settlement of case.
Telephone conference
with clerk of court and opposing counsel to obtain hearing date
for Motion; preparation of
Order Granting Change of Venue. (Services rendered May
3, 4, 6, 8, 10, 12, 14, 15, 24, 25,
and 27, 1995)
$500
6. Billing Accuracy.
Be sure you have a system in place for checking the bills for clerical errors before
mailing. Be sure all names are spelled correctly consistently! Be sure amounts billed are
according to agreement with a client! If there is a forwarding balance from a previous billing, be
sure all payments and other credits have been applied properly! And last but not least - be sure
the bill is addressed to the right person at the right address!
Clients are paying closer attention to the bills they receive. They are often explicit about
the form and content they would like to see in their bills because they want to know what they
are paying for and how much each type of work costs.
Clients have a right to know!
Just by looking at the bills they receive, they should be able to determine what resources
were used to produce their legal work. That is the only way to effectively value the services and
present the work as a good value to the client and profitable for the firm.
Client Communication / Relationship Management
====================================================================
Numerous bar association studies and client surveys have repeatedly shown that clients’
anger and disgruntlement are not the result of poor legal work, but rather the lack of common
courtesy displayed by attorneys. Clients complain about unreturned telephone calls and, if calls
are returned, they are often days or even weeks late.
Even more seriously, attorneys ignore written correspondence, rarely responding in a
meaningful way within a reasonable amount of time. Clients feel that they become a number, or
non-entity once they have hired an attorney. These clients’ views, sadly enough, are confirmed
by attorneys’ attitudes of being “bothered” by clients with the smallest details. Attorneys feel
that they could not complete their jobs if they paid attention to every client communication.
To find ways to satisfy the client’s need for communication efficiently is fundamental
and crucial to good client relations.
We will look at several techniques to promote good client relations and then focus on
ongoing relationship management.
First, we must realize that each client is different. Therefore, the attorney must create the
communication process suitable for each client. Some clients want to participate in or at least be
informed about every move the attorney makes, others become annoyed if inundated with paper
or telephone calls. It is important that during the initial client interview, the attorney asks the
client to which degree he would like to be kept informed. Do not keep the matter of
communication to chance!
Once the attorney determines how the client wants to be kept informed, instructions
should be placed in the client’s file for all staff to see. If a new attorney or staff person comes on
the case, they can easily review the guidelines and instructions and respond accordingly.
The most frequently heard complaint is that attorneys do not return clients’ telephone
calls. By returning phone calls promptly, the attorney will set a good precedence for client
satisfaction. All calls should be returned within twenty-four hours. Sometimes it may not be
necessary for the attorney to return the calls him/herself. If the attorney has other staff return the
client’s telephone calls, it is important the client know this person. The attorney can assure the
client that even though his/her assistant may place the call, the information given still comes
directly from him. When the attorney decides to return the client’s calls personally, it is
recommended that a certain time during the day be set aside for this task. This is no different
from scheduling an appointment. Also, the attorney’s staff will be able to let the clients know
when they can expect a call back. The advantage of having an assistant return calls is that the
assistant is more likely to be in the office at various times, whereas the attorney’s availability
may be limited.
Misunderstandings are usually the result of two main sources: poor communication and
miscommunication. Creating a memo system is a very effective way of solving this. When a
client calls with additional information on the case, ask him/her to put it in a brief memorandum
and fax it to you or e-mail it, if you are linked electronically. This way you always have
something in writing to refer to as needed. Similarly, when responding to a client’s request, put it
in writing. Later, if you need to discuss the matter over the telephone you can refer to the written
memorandum.
To prevent miscommunication, it is best to follow up each telephone conference or
personal meeting with a letter, stating all decisions reached and issues addressed. Clients often
say that the attorneys do not do the work they say they will, don’t do the work timely, and make
mistakes on details of substance. Most of these problems can be solved with the follow-up letter.
This letter summarizes what happened in the meeting, and guarantees that everybody heard the
same thing. If necessary, changes can always be made. The follow-up letter allows both the
client and the attorney the same understanding of what took place, and the same expectations of
what is to come - all of which greatly reduce the chances of client disappointment and
consequent dissatisfaction.
The basis of good client relations is prompt and reliable attorney - client communication.
Developing a good system may take some effort, but the pay-off will be well informed and
satisfied clients.
Once a communication system has been developed, we move toward a relationship
management concept in the ongoing process of client relations. Relationship management is the
center of Total Quality Management. Many firms are adopting the TQM approach in their
practice of law. This approach was born out of the need to improve service to the client. Many
traditional law firms are structured in such a way that the critical element of administrative
support is service to the attorney, who, in turn, serves the client. In such firms, individual
attorney needs determine how the firm’s support services are conducted. In the client-centered
law firm, all client service personnel serve the client directly. The attorney is viewed as simply
one team member involved in providing that client service. This approach directs the work to the
most capable, but least expensive person in the firm.
Some effective checks and balances for a workable relationship management program
will include a series of questions, such as:
1. Does the firm treat clients over the duration of the relationship in the same way as
when first pursuing their business?
2. Are client satisfaction interviews given?
3. Does the firm have a policy for promptly identifying and addressing client
complaints?
There are several ways to initiate a dialogue with the client: firm-hosted luncheons; client
focused task forces; client interviews; and/or structured partner/client conferences on service
quality and enhancing relationships; have the whole client team from the firm meet with their
counterparts at the client; find out how much the client wants to be involved in strategy; discuss
time and dollar budgets; ask the client for feedback as case moves along; discuss changes in
strategy, etc. It is also recommended to do a post-mortem audit with the client on each matter to
assess satisfaction, items for improvement, and future needs.
Additionally, clients are increasingly distributing written engagement guidelines and
requirements. Some of these documents deal primarily with billing issues, but are increasingly
covering goal-setting philosophy, status reports, staffing, budgeting, media contact, research,
approvals, communication channels, and other special issues. This information source must be
factored into any relationship management guidelines and should be heeded conscientiously.
There should be internal processes to evaluate the commitments to the clients to avoid
gaps between client expectations and service product delivery. Externally, a process should be
created to determine client satisfaction and adjust to meet clients’ needs before any
dissatisfaction becomes damaging. From time to time there should be a “performance
evaluation.” Some firms believe that all is well and first class service is provided, unless the
client complains. Firms can no longer afford that complacency.
TECHNOLOGY
====================================================================
1.Technology Trends.
The business of practicing law continues to change through the use of automation. More
and more attorneys are using their computers for applications other than the basic word
processing and accounting. The use of computers accelerates the work product resulting in still
higher expectations. Last year’s ABA survey showed that particularly solo and small firm
practitioners are increasingly relying on technology to provide solutions for their clients. Survey
results suggest that computers may become the expert partners of solo practitioners and small
firm lawyers. Some of the trends discovered were:
a.
only
Lawyers’ work styles are changing as lawyers increasingly use computers not
in the office, but also at home and away from the office.
b.
Solos and small firm practitioners are speeding up the use of basic applications
such as word processing, time and billing, conflict checking, docket control, and
c.
Are ready to expand their technology capabilities to include on-line services, CDROMs, and electronic research.
Other findings showed that 63% of the respondents use PCS, 6% use pentiums, and 9%
use Macintoshes. Two thirds said they use Windows, 69% have modems, 42% own a portable or
lap-top computer with 20 more percent saying they are likely to purchase a portable computer in
the next twelve months. A growing percentage (23% over 3% in 1990) have e-mail and are online with a commercial on-line service.
The practice of law has always had tremendous pressure to produce results under tight
deadlines. Many lawyers report that electronic communication has increased their clients’
expectations for a fast turnaround. Clients, who use technology in their own businesses, expect a
swift response from their attorneys. Many are beginning to demand that their lawyers install a
remote access link between their computers so that work can be done in real time between the
two offices.
How do we get there from here?
If you are thinking of automating or upgrading / enhancing existing systems, you should
first do a needs analysis. A needs analysis consists of a series of questions to determine exactly
where you would like to be when the “transition” is over.
You begin with looking at what is automated currently, i.e., word processing, accounting,
time and billing, conflict, docket, legal research, ability to send fax, track copies by client/matter,
keep track of long distance telephone calls, etc.
Next, you consider the degree of satisfaction / dissatisfaction with existing systems, their
“user friendliness,” and their overall usefulness. Following must be a clarification of desired
functionality of current work processes.
Once you have established how you would ideally like to see your current operation
improve, think about the new applications you would like to add to enable you to take on larger
cases, new practice specialties, more clients.
One important reminder: if technology will not improve the efficiency or effectiveness of
a particular function, it may not be wise to “fix” it!
Decide which functions should be automated, and when. Schedule the transition for such
periods when it will cause as little disruption as possible. Study technology surveys in your
geographical area as well as your practice area. Talk with other law firms of similar size and find
out what works best for them. Develop an informal Request For Proposal which will allow you
to establish a common ground for evaluating software and hardware configurations. You specify
the firm’s needs and methods for submitting proposals, making sure you will be able to compare
apples with apples.
First determine which software applications are best suited for the firm’s needs. Then let
the software dictate the hardware needed to run it efficiently. Hardware decisions that precede
software decisions may restrict your use of applications.
Networking or upgrading your Local Area Network will pose some hardware challenges.
Here you have to consider the file servers and any possible cabling requirements. If you have
remote workstations or notebook computers, special communication tools need to be installed,
such as a Wide Area Network or a dial-up modem. This is really a step beyond the basics and
you may best be served by talking to an independent network consultant who can evaluate your
specific needs without trying to sell you a product.
Planning, planning, and more planning is the best way to ensure that your firm is
equipped with the most effective technology as we approach the new millennium. You may
implement automation in several stages over a period of time to assure a smooth transition. This
may be easier to accommodate the busy schedule of everyday operation. It may also be easier to
budget for technology “installments” rather than for one lump sum expenditure. Keep in mind
the training curve for staff and attorneys. You will need to determine your own firm’s pulse to
decide what type of implementation schedule will work best for you.
With the needs analysis process complete, you can chart a steady course of short and
long-term steps necessary to improve and upgrade the firm’s technology into the 21st century.
2. Client Satisfaction Through Technology.
Law firms are forced to be more attentive to client concerns by increasingly competitive
pressures in the legal community. Many clients are demanding change and improvements in their
legal work. Clients have become more cost conscious and want their cases resolved quickly for
the lowest possible cost. Even a courtroom victory is sometimes viewed as “unaffordable!”
The traditional way of delivering legal services (labor intensive) needs to be reengineered to be more efficient and effective. Technology can be the answer. But a more
satisfying method for the client is the combination of client involvement in a case and
technology.
One Seattle law firm has found the answer to that challenge. This law firm has
implemented a system of allowing the client electronic access to ongoing activities in their case.
This is done by way of four forms: an evaluation form, a strategy form, a settlement form, and a
budget form. As the case progresses each form is updated after consensus is reached with the
client. A well-managed case can be recognized by constant refinements in the strategy and
settlement log. The budget form is automatically updated by the system as the attorney’s time is
entered. The system “watches” the fee totals and notifies the managing attorney for this case
when they start to approach budget limits. All this information is accessible to the client by
calling into the attorney’s computer and viewing these forms. This eliminates telephone calls,
status reports, billing surprises, and achieves client satisfaction.
This system is only one example of how technology can enhance client relationships and
client satisfaction. The key is to listen to the clients’ requirements and complying with their
rules.
Gisela B. Bradley is the founder and CEO of Law Practice Management Consulting.
Prior to Law Practice Management Consulting she served Texas attorneys with practice
management advice and education as the first director of the Law Practice Management
Program of the State Bar of Texas. She successfully built this program from the start and
designed and developed the products and services offered. During her almost eleven
years of service at the State Bar of Texas she developed award-winning educational
programs, authored numerous articles on legal management trends, and presented
workshops and seminars on local, state and national levels. She also consulted with law
firms and individual attorneys on improving their management practices.
Before coming to the State Bar of Texas Ms. Bradley managed law firms of varying sizes
for fifteen years.
Ms. Bradley served on the American Bar Association's Law Practice Management
Advisors' Committee from 1996 to 2005. She also serves on several Advisory Boards of
legal consulting and attorney training firms.
Ms. Bradley focuses on assisting solo and small firm practitioners in improving the
efficiency of their client service, and increasing their productivity while enhancing the
quality of their work product. She provides management consultations to firms as well as
individual management coaching to attorneys.
Examples of accomplishments at the State Bar of Texas include:
Writing the Start Up Kit For A Small Law Practice, a step-by-step guide to opening
your own law office;
Developing and presenting Planning to Conquer the Real World of Private Practice, a
practical preparation course for law students;
Developing and presenting The Law Office Management Institute, a 12-months
comprehensive management training course for attorneys;
Developing How to Organize and Manage Your Law Practice, a series of seminars for
12 practice specific areas.
Ms. Bradley received her BA in Liberal Studies with a major in Accounting from St.
Edward's University in Austin, Texas
Antony Ng
Antony P. Ng is a registered patent attorney with extensive experience in preparing and prosecuting
patent applications. Mr. Ng has drafted over 600 patent applications encompassing a broad range of
technological fields such as electrical hardware and computer software, telecommunication and
network systems, semiconductor fabrication and chemical compositions, etc. In his Austin-based
practice, Mr. Ng also provides, to domestic and international clients, counseling on various
intellectual property related matters, including infringement and validity opinions.
Prior to his legal practice, Mr. Ng was a reliability engineer at Texas Instruments for over four years
with responsibilities including investigating new testing methodologies to detect reliability problems
of integrated circuit devices. During law school, Mr. Ng was a judicial intern for Honorable Judge
David Hittner, Southern District of Texas, and Honorable Justice Michol O’Connor, First Court of
Appeals of Texas. Mr. Ng also served as an assistant editor for the South Texas Law Review.
Practices
Patent preparation and prosecution
Patentability and infringement opinions
Intellectual property portfolio development and management
Trademark prosecution
Technologies
Telecommunication and network systems
Computer hardware and software
Analog and digital electronics
Semiconductor fabrication
Chemical composition
Bar Admissions
State Bar of Texas
U.S. Court of Appeals for the Federal Circuits
U.S. Patent and Trademark Office
Education
J.D., South Texas College of Law
M.E.E., Rice University
B.S.E.E., Texas A&M University
Affiliations
Tau Beta Pi
State Bar of Texas Resources You Never Knew Existed
By Orlando Lopez
The intent of this article is to hopefully introduce the reader to some of the online
resources that the State Bar has created for the benefit of its members. The Bar
prides itself on providing our members with innovative tools that puts relevant,
accurate information at their fingertips, provides a forum for communication, and
assists them with day-to-day practice management issues.
TexasBar.com
First, let’s take a look at the State Bar’s website and some of its nifty features.
Find a Lawyer
The most-used feature of the State Bar’s site is its “Find a Lawyer” Tool found at
the bottom of the home page. This section of the bar’s site provides users with
information about all licensed Texas attorneys such as contact information (city
practice is located and phone number), status of attorney (whether or not
attorney is in good standing with the Bar), picture of attorney (if provided), and an
email address (if provided). This portion of the site gets tens of thousands of hits
per month, so it’s a good idea to make sure that your information is current with
our membership department.
Blogs by Texas Lawyers
A new feature on the Bar’s site is Blog’s by Texas Lawyers. The Bar provides
the framework / coding for licensed attorneys to create and maintain their own
blogs in various practice areas.
TexasBarCircle.com
The Bar’s latest addition to its website is TexasBarCircle.com, which can be
described as Myspace for attorneys. This is a social / networking community
where attorneys can interact with other attorneys about almost any issue / topic
whether it is work-related or purely social. Attorneys can share pictures with one
another, make announcements, tell others about their hobbies, etc.
TenMinuteMentor.com
Ten Minute Mentor is an award-winning site that was created by the Texas
Young Lawyer’s Association several years ago. The site contains hundreds of
short video snippets on a wide variety of law-related topics that were designed to
provide attorneys with a quick overview of these topics. For example, if you’re
preparing for your first deposition, you would want to watch the video on “Taking
Your First Deposition.”
TexasBarCLE.com
TexasBarCLE, the Bar’s main CLE provider, has a very large site with several
really helpful features that many attorneys use in their practice on a daily basis.
First of all, an attorney can access countless hours of CLE programming through
TexasBarCLE.com. All of their live CLE programs are videotaped and archived
for viewing on the site as a part of their Online Classroom. In addition to the
videos, all of their course materials are made available in pdf format via their
Online Library, which members of the Law Student Division get free access to.
Visitors to TexasBarCLE.com can also access a free Case Digest. The digest is
updated weekly and contains case summaries in some or all practice areas with
links to the full-text opinion of the summarized cases.
The State Bar of Texas offers its members free legal research via
TexasBarCLE.com. At the moment, only Texas case law is available through
TexasBarCLE.com, but there are plans to expand this to include federal case
law.
TexasBarLPM.com
The Law Practice Management Program has a really comprehensive site with
some really innovative features.
Like TexasBarCLE.com, LPM also has an online classroom featuring archived
videos of past CLE offerings that may be accessed at the user’s leisure. In
addition to the archived videos, LPM also offers live online webcasts. These are
usually one – two hours in duration and usually address single / specific,
management topics. Although, these are broadcast over the Internet, these
programs are interactive as viewers are able to email their questions to the
speakers during the course of the program.
Starting a Law Practice
This is a section of our site that attorneys who are in the process of starting up a
practice will find particularly helpful. This portion of the site is a sort of directory
of different resources that we have run across over the years that would benefit
attorneys starting up a practice. In some cases, the site will point you to a
publication that can be purchased, and in others, it may point to an article that
can be downloaded free of charge. We do update this part of our site regularly
with new resources, so do check back from time-to-time.
Online Support Staff Training
There are numerous educational opportunities available to attorneys in the form
of CLE. However, the same is not true for attorneys’ support staff and it is the
support staff that interacts with clients sometimes more than the attorneys. For
this reason alone, it is important that your employees are aware of confidentiality
issues and can competently communicate with clients and attorneys.
Recognizing this dilemma, we created an online training portal specifically for
support staff.
State Bar Marketplace
The Marketplace is a part of our site where a member of the Bar can find
information on any number of products used by law firms throughout the state.
From computer software to legal research, you can find information on just about
any product here.
Self-Assessment Tool
This innovative feature of our site allows users to answer a series of questions
that will ultimately help them gauge how well they are managing their practices.
There are four different areas of practice management that one can assess –
technology, business planning / client development, operations / facilities, and
financial management. The user chooses a category and then answers a series
of yes / no questions. If the user answers yes, then he / she can go to the next
question, if the answer is no, the user is then given an explanation of problems /
consequences of answering as such and is also given a list of resources that
may help correct said problem. Once all of the questions have been answered, a
score is tabulated and given to the user along with a list of resources to consider.
Product Reviews
Attorney can post reviews here of any type of product that they use in their
practice – from insurance to hardware. Visitors to the site can also respond to
the review and post their own comments about that product. Reviews can be
searched on the site either by product name or product category.
The Practice Manager – Electronic Newsletter
Every month, Law Practice Management publishes an electronic newsletter that
is posted at the website. The newsletter, which has become quite popular
among solos and small firm practitioners, features two regular columns,
Technology Round Up and The Coach’s Corner, which offer practical
information on law practice management issues and technology. There is also
an updated calendar of events, management tip, and book specials in the
newsletter.
In addition to these features and tools found on our site, visitors can also find
listings of live events that we have scheduled, books and videos available
through our office, list of management consultants located throughout the state,
and a series of single-topic “How to” brochures based on the most frequently
asked questions received by Law Practice Management.
As you can tell, the State Bar of Texas is really dedicated to its online presence
and will continue to strive to improve that presence in order to better serve our
members.
Orlando Lopez
State Bar of Texas
Law Practice Management Program
1414 Colorado, Suite 601
Austin, Texas 78701
512-427-1302 OR 800-204-2222, ext. 1302
www.TexasBarLPM.com
Education
B.A. in History from Southwestern University at Georgetown, Texas - December
1996
Professional Activities
• Director, Law Practice Management Program of the State Bar of Texas
• Courier/Clerk - Small Law Firm
Related Publications/Presentations
• Coordinator & Speaker - High Tech Friday State Bar of Texas 2001
Annual Meeting
• Coordinator - Fall 2000 Technology Fair
• Author - Legal Software Directory
• Speaker/Author - http://Hot Tech Tips: Six Tips in Sixty Minutes
National Association of Bar Executives Annual Meeting - August, 1999
• Speaker - Mexican American Bar Association's Annual Meeting
• Speaker - 1998 Practice Management Series
• Frequent speaker at various Local Bar Association meetings and
conferences
• Coordinator - Gizmos & Gadgets: Technology Tools to Increase Your
Efficiency
• Coordinator - Maximizing the Effectiveness of Your Support Staff