Law Practice Management Asked and Answered Blog

Category: Management

Mar 26, 2020

Law Firms Working Remotely During Covid-19

Question:

I am the sole owner of an estate planning firm in downtown Chicago with four other attorneys and six staff members. Since we are considered by the state of Illinois to be a  necessary business service most of us are still working at the office. I know that many firms are working remotely. How is that working out and what are the specifics of how to make that work – new client intake meetings, work on client matters, coordination with attorney and staff team, and client document signings?

Response: 

It is working out very well for many firms and better than expected. Here is what one of my estate planning law firms with four attorneys and seven staff members is doing:

  1. The firm has the receptionist at each of its two offices working at each office.
  2. The receptionist at each office answers the phones, makes appointments for new clients, and since the firm has landlines emails remote attorneys and staff their phone calls/messages who in turn return phone calls.
  3. The receptionist at each office receives mail at the office, scans the mail, and emails to appropriate attorneys and staff. Incoming client documents are scanned to client files. Vendor invoices are scanned and emailed to the firm administrator who in turn updates the billing and bookkeeping systems.
  4. The receptionist at each office makes remote bank deposits using the remote deposit scanner provided by the bank. A copy of the deposit report is emailed to the firm administrator who updates the billing and accounting systems.
  5. All new client intake interviews are being done over the phone or via Skype, Zoom, or GoToMeeting.
  6. Client document signings are being postponed or done at the office in a special sanitized room after clients are screened.
  7. The firm has been paperless for some time and attorneys and staff are able to access form documents and client files remotely. GotoMyPC was setup on each attorney and staff member’s PC in the office and access is obtained to the firm’s server via GotoMyPC.
  8. The firm administrator initiates the billing process by generating prebills in pdf and emailing to attorneys who in turn markup with comments on the pdf. The administrator makes changes, generates final invoices, email to clients that receive email invoices, and emails to the receptionist at each office who in turn mails to those clients that receive paper invoices.
  9. Virtual team meetings are held weekly.
  10. A new employee hired before Covid-19 will be trained virtually

This approach is working pretty well. The firm has sufficient work in process to keep people working and the firm, although new client calls are down, the phone is still ringing are the firm is signing up new business.

It would have been easier had the firm had cloud-based billing and accounting systems as well as VOIP phone system. However, the procedures and protocols the firm is taking is working reasonably well.

Personally, our firm went remote 20 years ago and we don’t miss the days of high office space cost, overhead, wasted commute time, etc. At that time I built out and dedicated 1,000 square feet of space in our home and we have all the systems (phones, file servers, conference room, etc.) that would be found in a typical office. We supplement this with a virtual arrangement with Regus.

Good Luck to all during this challenging time.

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John W. Olmstead, MBA, Ph.D, CMC

 

Feb 06, 2020

Law Firm Marketing and Business Development Coordinator or Director

Question:

I am the sole owner of an estate planning firm in San Francisco Bay area. I have four full-time associates, six paralegals, two secretaries, a firm administrator, and four other staff members. We are a high volume operation and we do a lot of marketing. We need help coordinating and handling and coordinating the marketing. Are we ready for marketing coordinator or director?

Response: 

Personally I think the firm is a little small for a full-time marketing position. If you can find a person that is willing to work part-time that could work in a firm your size. Many firms your size and larger that have a firm administrator include marketing responsibilities on the firm administrator’s job description and have marketing and business development coordination handled by the firm administrator. Here is an example of the marketing and business development duties that your administrator could handle.

Advertising

Coordinate the firm’s advertising program established by the owner.

Business Development

Coordinate and implement the business development program established  the owner

  1. Sponsorship’s and Community Programs – oversee, plan, and coordinate the firm’s:
    (1) Client seminars
    (2) Webinars
    (3) Ad hoc events
  2. Database Management and Distribution of E-News Letters

Oversight responsibility by performing or delegating the following:

1  Updating Firm E newsletter database

2 Monthly review of E newsletter Database blocked list report,
contacting contacts for updated email addresses, and updating
e-newsletter and all related databases.

3   Update Other Firm E-newsletter Databases

4   Update case management and time billing databases

5   Distribute Electronic E newsletters.

Client Testimonials

Prompting the owner monthly to solicit one client testimonial from a client and posting or coordinating with the firm’s website provider for them to post the testimonial to the website.

  1. Business Development Committee Meetings – Friday Attorney Meetings

2  Schedule, coordinate, and maintain a file on the firm’s file
server of action items and notes from each meeting.

3  Coordinate and assist in the implementation of action items.

Public Relations

Coordinate the firm’s public relations program.

Electronic Media

1. Website

Oversight responsibility for maintaining the firm’s web site and keep
the website’s content fresh and updated in coordination with website provider.

2. Social Media

Update entries on social media.

Directories

  1. Coordinate external directory listings
  2. Update the firm resume and material for printed and electronic directories.

Client Communication/Satisfaction Program

  1. Oversight and coordination of the end of matter survey/online review
    program and maintain database of responses
  2. Prepare monthly client survey report from survey database.

Firm Announcements

Supervise preparation and distribution of firm announcements

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John W. Olmstead, MBA, Ph.D, CMC

Dec 31, 2019

Law Firm Management – What Will Be Keeping Owners and Managing Partner Awake at Night in 2020

Question: 

I am the owner of a twelve attorney business litigation law firm in Northern, California. I started the firm fourteen years ago after practicing ten years in a large law firm. While the practice has been fulfilling both professionally and financially, the management side is often a challenge. As I sit here on December 31, 2019 thinking about management challenges that I may face next year I was wondering what you envision the challenges will be in 2020.

Response: 

The following were the common challenges that owners and managing partners advised us that they faced in 2019:

  1. Talent Management – Attorneys and Staff
    1. Hiring
    2. Training
    3. Motivating
    4. Compensating
    5. Keeping (retaining)
  2. Firm Succession and Transition
  3. Getting and Keeping Clients and Additional Sources of Business
  4. Managing Cash Flow
  5. Satisfying Hard to Please Clients
  6. Balancing Time Between Servicing Clients and Managing the Firm
  7. Getting Paid
  8. Competition from Other Law Firms and Non-Law Firm Service Providers
  9. Proving High Quality Legal Services at an Affordable Price and Avoiding Malpractice Claims
  10. Finding Time for Personal Life and Family

In 2019 the number one challenge was talent management and I believe this will continue to be the case in 2020. The other challenges that I have listed will continue to be the major concerns of owners and managing partners in 2020.

Here are some links to a few of our resources that you might find helpful:

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John W. Olmstead, MBA, Ph.D, CMC

 

 

 

Jun 19, 2019

Burning Issues for a New Law Firm Owner Starting Firm After Leaving BigLaw

Question: 

I have recently started a law firm in the suburbs of New Orleans after leaving a large law firm in the city. I was a non-equity partner in the firm and had worked for the firm for fifteen years. I worked in the estate planning group and handled complex estate planning matters for wealthy individual clients. Much of the business was referred to the firm by large bank trust departments. I have been promised referrals from some of these banks. I had other referral sources as well that will be sending business. The focus of my practice will be exclusively on complex estate planning for wealthy clients. A paralegal and an associate from the firm will be coming with me. During my career my focus has been on practicing law and not running a business. What are some of the challenges and burning issues that I will face?

Response: 

You are starting with the advantage of probably having grown up with excellent training and mentoring that larger firms are capable of providing. As a result you probably have an excellent skill set and it sounds like you have learned how to get business and have developed referral relationships. However, you also have been accustomed to firm management and other resources that will not be available to you in a smaller firm. You will have to get your hands dirty and handle much more of the firm management and administrative functions than you had to do in the larger firm.

Some of the challenges and burning issues that will keep you awake at night will probably include:

  1. Hiring, training, motivating, compensating, and retaining attorneys and staff – both those that initially join you and future hires. Small firms often cannot afford to provide the level of compensation and benefits that larger law firms and other businesses provide. You must creative and use other carrots such as flexibility, work-life balance, etc. to be competitive.
  2. Additional sources of business. Even though you have promises from past referral sources to send you business the business may not materialize from these sources for various reasons. You must be prepared to proactively marketing your practice. A content-rich website, client seminars, and additional referral source development should be at the top of your list.
  3. Cash flow will be a challenge and issue, at least initially. Insure that your have sufficient working capital to start your firm and access to adequate credit lines if you need them. Obtain retainers from clients upfront, stay ahead on retainer replenishment, and bill promptly. Watch your spending but focus on revenue generation.
  4. Balancing your time between servicing clients and managing the practice. In your prior firm your primary mission was to practice law and serve clients. Now, as the sole owner of a law firm, you will also have management and administrative responsibilities. Your time between these two areas will require careful balance – neither can be neglected. While you can eventually hire some help you can never relinquish total responsibility for running the business.
  5. Development of systems. Processes and procedures will need to be documented in office policy and procedures manuals. Computer hardware and software will need to be acquired and implemented. There will need to be oversight over these systems. You should at least have a “top level” understanding of these systems.
  6. Client demands. Client demands and workloads can often take a toll on new owners. There will a time will your will be so busy you would like to hire additional help but not so busy that you are ready to or can justify doing so.

These are just a few of the challenges and burning issues that others from BigLaw starting their own practice have discussed with us.

Good luck with the launch of your practice.

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John W. Olmstead, MBA, Ph.D, CMC

Apr 24, 2019

Law Firm Training Tools – Documentation of Processes and Procedures in Firm Procedural Manuals

Question: 

I am the sole owner of a six attorney personal injury firm in San Francisco with five support staff. My father started the firm twenty-five years ago and has since retired from practice. I took over the practice five years ago. At the time I took over the practice we had just my dad, myself, a couple legal assistants, and no technology. Since then I have done a lot to grow the practice including adding attorneys and staff as well as implementing technology. My biggest problem is training new attorneys and staff. We have no written documentation as to how we do things so training has to be done orally by myself or others every time a new attorney or staff member joins the firm. Can you offer any suggestions?

Response: 

Sounds like you don’t have a written employee handbook or procedures manuals. These are essential tools that every law firm regardless of size should have. These tools dramatically reduce time that has to be spent by others to on-board new employees and can facilitate bringing on lower cost employees with less experience such as recent law graduates or paralegal graduates.

The employee handbook outlines the firm’s employment policies and contains sections such as:

An operation or procedures manual is the firm’s how-to-do-it guide. It defines the purpose of work, specifies the steps that need to be taken while doing the work, and summarizes the standards associates with both the process and the result. Your operation or procedures manual specifies this is how we do it here. Every process in the firm should be documented in your manual – from marketing – to accounting –  to IT – to legal case work. Sections in your manual might include:

Procedures manuals are often a list of steps in outline form. The American Bar Association has a book – The Law Office Policy and Procedures Manual that may help you get started. 

In my earlier life I spent nine years in the United States Air Force Judge Advocate Generals (JAG) office and there I learned the importance of policy and procedures manuals and I carried this into both law firms where I worked prior to starting my consulting practice thirty-four years ago.

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John W. Olmstead, MBA, Ph.D, CMC

 

 

 

 

Jan 09, 2019

Law Firm Management – Held Hostage by Office Manager or Bookkeeper

Question: 

I am a partner is a small family law firm in Tucson, Arizona. There are two partners in the firm and two associates. We have an office manager/bookkeeper, a receptionist, and two legal assistants. The office manager was hired one year ago. The other partner is retiring next year and I am purchasing the practice from him. I became a partner last year. I am new to the management side of the practice and have been relying on the office manager who also serves as our bookkeeper. I am at my wits ends with our office manager and I believe that she is not suited for the position. She has no organizational skills, she misses deadlines, vendor bills are not paid on time, and client bills are not sent out accurately and timely. I have counselled her on numerous occasions to no avail. I believe we need to replace her but I am reluctant since no one else here knows what she does or how she does it. A new billing and accounting system was implemented last year and she was the only one trained on the system. What do we do if we terminate her or she quits? We are hostages. I would appreciate any ideas of thoughts that you may have.

Response: 

I understand and appreciate your situation. It sounds like you have not documented your procedures in the form of a firm procedures manual and everything is in the office manager’s head. This makes it difficult for someone to take over her responsibilities if she leaves the firm for whatever reason but not impossible. It will probably be difficult to get her to develop one now as it may signal to her that her time with the firm is short and she may start looking for another position. You may have to just bit the bullet, terminate her, restaff the position, and go from there.  It won’t be fun but you will make it though. You might consider the following:

  1. The office manager probably has handwritten notes, etc. that she has used to roughly document how she does things. Collect these and review these.
  2. Contact your billing and accounting software provider and have them help you will any training needs you have as well as procedural issues. Back in my old life when I did software work with law firms I often was called and assisted firms with such situations.

After you get the position staffed and past the crisis develop a detailed written manual of procedures for the office. Not just the office management side but the client service side – attorneys and paralegals as well.

I believe that it is imperative that owners and partners in a law firm have access to financial information on a timely basis, understand the information, and use the information in a proactive way to manage the practice. I suggest:

  1. The owner, or an appointed partner(s) in larger firms, obtain a basic level of understanding in basic accounting/bookkeeping and law firm financial management.
  2. The owner, or an appointed partner(s) in larger firms, obtain detailed training on the accounting software system(s) along-side the bookkeeper when the system is implemented. In addition to general operation of the software, special training should also be obtained on interpretation and use of the management reports.
  3. Insure that you have accounting controls in place and appropriate segregation of accounting duties.
  4. Outline your expectations and requirements of the office manager/bookkeeper, meet with her/him, and communicate appropriately.

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John W. Olmstead, MBA, Ph.D, CMC

 

Oct 17, 2018

The Focused Law Firm

Question: 

I am a member of a three-member management committee. Our firm is a twenty-five attorney firm located in the greater Washington D.C. area. We specialize in governmental law. We are feeling that our committee and the firm spends a lot of time in meetings discussing management problems, strategies, etc. to no avail. Not much changes or gets implemented. I welcome your comments.

Response: 

One of the major problems facing law firms is focus. Research indicates that three of the biggest challenges facing professionals today are: time pressures, financial pressures, and the struggle to maintain a healthy balance between work and home. Billable time, non-billable time or the firm’s investment time, and personal time must be well managed, targeted and focused. Your time must be managed as well.

Today well-focused specialists are winning the marketplace wars. Trying to be all things to all people is not a good strategy. Such full-service strategies only lead to lack of identity and reputation. For most small firms it is not feasible to specialize in more than two or three core practice areas.

Based upon our experience from client engagements I have concluded that lack of focus and accountability is one of the major problems facing law firms. Often the problem is too many ideas, alternatives, and options. The result often is no action at all or actions that fail to distinguish firms from their competitors and provide them with a sustained competitive advantage. Ideas, recommendations, suggestions, etc. are of no value unless implemented.
Don’t hide behind strategy and planning. Attorneys love to postpone implementation. Find ways to focus the firm and foster accountability from all.

Go For Bottom Line Results

Attorneys respect facts. The quicker your committee can implement solutions that have a positive financial impact on the bottom line the quicker the committee will gain credibility and respect from the other partners.

Use The Consulting Process

Treat the problem or issues like a legal matter engagement or project. Conduct appropriate research and back up ideas and recommendations with hard data. Adequately prepare and rehearse presentations. Prepare like attorneys prepare a case for trial. The management committee’s credibility will only be enhanced if its ideas are accepted and implemented with positive results.

Use of Triads – Present Three Alternatives or Options

Time after time management committees have spent endless hours studying and researching a problem, brainstorming solutions, preparing and presenting their recommendations to the partners only to have their report tabled and asked to present additional alternatives. What happened? The management committee failed to present three options or alternatives. The partners had no basis of comparison.

Experience and research shows that the success rate improves dramatically when three options or alternatives are presented. The triad strengthens thinking abilities enormously and empowers people in making choices. It also trains the mind to see the relationships between alternatives and options. Management Consultants never present just one alternative or option.

Management Committees that use triads and present three alternatives or options will be more successful in selling their ideas to their partners.

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John W. Olmstead, MBA, Ph.D, CMC

 

Aug 22, 2018

Law Firm Retreat Follow-up and Implementation

Question: 

I am a partner in a eighteen attorney firm in Milwaukee. Over the years our firm has held firm retreats, but the results have been disappointing – a lot of talk and little action. We have the same problem in our monthly partner meetings. We spend a lot of time in meetings – discussions and decisions made but little implementation. This week we are having a partner vote to decide on whether to have a retreat this year. Frankly, I will vote against it and I think it will be a waste of time. What are your thoughts concerning law firm retreats?

Response: 

I understand your frustration and concern. Many law firms have had similar experiences with retreats. Good ideas and decisions but no follow-up or implementation once the retreat is over. Often retreats are too loose with no structure or leadership.

Insure that the firm appoints a qualified retreat leader either from within the firm or someone outside the firm that has experience leading or facilitating retreats. Identify specific objectives and desired outcomes during the retreat planning phase and design in how follow-up and accountability for implementation will be achieved. Be sure you come away from the retreat with a specific plan for follow-up action on every problem discussed. For example, if you decide to start a talent search to fill specific position, or if you have assigned several partners members to work further on specific problems and report the results, it is important that individual assignments and target dates for reporting and completion be made explicit. Determinations of this kind should be recorded and made part of the minutes of the retreat. Further, a system of follow through meetings to assess progress is advised, in order to maintain the momentum achieved at the retreat.

Many law firms benefit considerably by incorporating specific retreat decisions into a twelve month plan and schedule of activities to meet firm objectives. Planning of this kind typically results in significant firm progress, even though there may be initial resistance to these efforts by some firm members.

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John W. Olmstead, MBA, Ph.D, CMC

Aug 15, 2018

Six Worries That Keep Law Firm Managing Partners Awake at Night

Question: 

I am a new managing partner in a thirty-five attorney firm in Tucson, Arizona. I replaced the previous managing partner who retired. He was the firm founder and had been in the position since the firm’s inception. I have had this position for six months and I am finding the job overwhelming – trying to serve my clients and managing the firm at the same time is very difficult. What are the major challenges that managing partners are having.

Response: 

I understand and appreciate your situation. Managing partners advise me that the following challenges are what keeps them awake at night:

  1. Managing cash flow. Investments in technology, higher salaries for attorneys and staff, and longer collection cycles are all having a negative impact upon cash flow. Contingency fee firms have additional cash flow challenges. Managing partners must insure that client bills are going out promptly, client payments are deposited promptly, and vendor bills are paid “just in time.” Cash shortfalls will have to be financed with additional partner capital contributions or bank loans.
  2. Satisfying hard to please clients. Institutional clients are demanding more from their law firms in terms of service offerings, geographical coverage, responsiveness, and fee arrangements. Law firms are finding that the market for legal services is a buyers market and that they must continually innovate in order to continue satisfying client demands. Many are conducting client satisfaction interviews with these clients in order to measure client satisfaction and identify needed improvement areas and new opportunities.
  3. Competition from other law firms and non-law firm service providers. The oversupply of lawyers, advertising, and the internet has increased competition between law firms. In addition to the competition between law firms, law firms also also facing competition from other service providers as well. Managing partners are finding they have to allocate more resources to advertising and marketing. Websites, internet search engine optimization, and pay-per-click internet advertising is becoming the norm for many firms.
  4. Getting new clients and keeping existing clients. Today clients are less loyal and more likely to switch law firms than in years past. Managing partners are having to work harder to retain existing clients and acquire new clients. Acquisition of new institutional clients often requires responding to request for proposals, bidding for engagements and projects, preparation of quality proposals, and making presentations to prospective clients.
  5. Succession and retirement of senior partners. Many law firms are experiencing a “bunching” of numerous senior partners approaching retirement at the same time. Succession and transition planning is critical to the continued success of these firms. Getting partners to openly discuss their retirement plans is a major challenge that managing partners are facing.
  6. Getting and retaining top talent. Acquiring and retaining top lawyer and staff talent is becoming more difficult and more costly for law firms. Even though there is an oversupply of lawyers on the market there is still a shortage of experienced lawyer talent in many practice areas. Lawyer search timelines and recruiting cost are on the rise.

 

 

 

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John W. Olmstead, MBA, Ph.D, CMC

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