Wellness

Be the Best You

By Joan R. M. Bullock

In the March/April issue I wrote the article, “Today’s Lawyer,” focusing on the solo and small firm practitioner. I noted how the DIY economy, fueled by commoditization of legal solutions from digital platforms, threatens the practices of solo and small firm lawyers. A similar commoditization — developing reusable templates for bread-and-butter legal work — functioned well for the small firm practitioner. The practitioner profited from being able to charge a reasonable fee based upon the value of the legal solution proffered even though the actual time taken to provide the legal solution was shortened through the repeated use of the template. In fact, the small firm practitioner could expand the practice by utilizing interns, new lawyers and paralegals to complete and review the template for client matters with a resultant growth in revenue and profits for the firm’s bottom line. Digital platforms such as LegalZoom, Rocket Lawyer, Nolo, LawDepot and even the Google search engine, however, took this commoditization of legal solutions one step further—making a form of the template accessible to the lay market, permitting these platforms to profit from the volume of those seeking access as well as from the subsequent queries that come from the lay market utilizing those templates.

The increasing competitive nature of small firm practice and the growing encroachment of digital platforms in the legal services market have resulted in seasoned practices being reluctant to bring on novice attorneys who cannot contribute to the bottom line early on. Law schools have stepped up to this challenge and are providing more skills and experiential training in the curriculum. But is this enough?

About a month ago I got an update on LinkedIn regarding an article entitled “How a Thomas Jefferson Grad Came to be in Charge of the Ivy League Alums.” The author, Frederick Shelton, President and CEO of the Legal Business & Marketing Consulting firm of Shelton & Steele, wrote about the “Rainmaker’s Reward” and the utility of street smarts. It’s no secret that those who are able to make it rain are prized in a firm. Lawyers who can bring in new business are highly valued, even if they do little of the work that they bring in and even if they give little face time in the office. They add directly to the firm’s bottom line and therefore are given deference. This deference extends to how much time they need to spend in the office and how much client work they need do. Rainmakers have options. A firm not willing to give this deference will soon find that the revenue generated by the rainmakers will leave with those rainmakers to more accommodating firms. This is the “Rainmaker’s Reward” and it is control over the lawyer’s professional destiny and personal life.

Many lawyers, however, are uncomfortable seeing themselves as rainmakers. It looks too much like selling. They’d rather do the work. After all, that’s what law practice is all about. Unfortunately, those who do the work can be easily replaced—by smarter lawyers, less expensive lawyers or other professionals, or even technology. For example, even in the “olden days” tax law was complicated, with many tax returns completed by lawyers. Over the years, tax lawyers lost tax return clients to accounting firms; accounting firms lost many of these clients to volume-based businesses like H&R Block; volume-based businesses lost clients to software companies that catered directly to individual taxpayers. Now, for the simplest returns, the IRS allows individual taxpayers to complete their return from the IRS website without having to purchase the software. The now pervasive use of technology to assist in completing the tax return has converted a manual, calculator with pencil-and-paper approach by a professional, to a gathering of documents, fill-in-the-box approach by the consumer. Taxpayers’ ease in utilizing technology, coupled with software that replaces the judgment of a professional in determining the significance of the taxpayers’ information has, to a large extent, demystified the tax return process.

With more of the lawyer’s work being replaced by technology, it is critical that the lawyer develop a level of street smarts along with embracing the skills of a rainmaker. The sitting at the desk waiting for a prospective client or a supervising attorney to ring your phone or stop by your office and provide you with work is no longer a viable option. Street smarts is the creative edge needed to see and exploit gaps for competitive entry and differentiation. In this regard, the successful lawyer creates his or her own path for job security. A great example of this is TJSL alumna Candace Moon, who was profiled in the June 2018 issue of the ABA Journal. She created her entry into the practice of law by discerning and exploiting the gap in the craft beer industry.

Ultimately, lawyers want to have a sense of fulfillment, to believe that they are making a meaningful difference in the world and impacting their clients in a positive way. This can only happen if first, lawyers have control over their personal and professional lives. Accordingly, teaching law students today must include life skill lessons. We’ve heard it before: “In the event of loss of cabin pressure … place the oxygen mask on yourself first before assisting others.” Life happens to everyone. Lawyers take care of and counsel others best when they are in a good place by having first taken care of themselves. Be the best you for your clients and your firm. Take care of yourself — first. Read More

Law Practice / Law Practice Management

Hiring Trends: What Firms Need to Know

By Henry Angelino

2018 is coming to a close and many firm leaders are thinking about their plans and goals for 2019. One typical consideration is whether to expand their firm by hiring additional staff and/or attorneys. Do they need an assistant or an associate just to keep up with their case load, and can the budget support another salary? If this is their first employee, they have the added concern of ensuring the structure and procedures are in place to properly manage and efficiently/effectively utilize an employee. Thus, careful planning and research should be part of this major decision, and hiring a new employee should not be taken lightly or done in haste.

So, you think you are ready to move forward and expand your team but aren’t sure of the best path to take in finding a quality candidate. The first step is to make sure you have a complete description of the knowledge/experience requirements, duties and responsibilities for the position, and know the traits you are looking for in your ideal candidate. Additionally, what are your expectations if the position is for a billing professional? Are you looking for a more experienced employee or do you want a less experienced employee that you can train without having to worry about “bad habits” or “knowledge gaps” from previous employers? Do you want to conduct the search or hire a recruiter to do the initial search and screening for you? OK, you have done your homework and are ready to initiate a search. What do you need to know about the current legal hiring market to increase your chance of success? Here are a few trends that I am seeing in San Diego.

-There is an increasing number of smaller and mid-sized firms that are growing and looking for qualified candidates to fill attorney and staff positions. Some of the fastest growing firms are groups of attorneys that have left larger firms to create their own firm and culture.

-There are fewer associate attorneys available due to lower numbers of law students in recent years and it is harder to find associates with three to five years of substantial law firm experience, a typically desired attribute. On the positive side, there is an increasing number of diverse candidates applying for positions.

-Qualified candidates with a solid performance record are in high demand and will usually be exploring multiple opportunities simultaneously. Thus, employers must be ready to move quickly to evaluate quality candidates and make a hiring decision.

-Small to mid-sized law firms are using contract attorneys or part-time support staff personnel to assist with excess legal and administrative tasks. This allows the firm to “test drive” employees before making a permanent hire while remaining within their budget. Another trend is to outsource various human resource and administrative tasks to reduce the time spent to manage the firm and remain compliant with the changing laws and regulations.

-Support staff are more highly qualified and willing to perform multiple roles within small and mid-sized law firms. Many candidates have a paralegal certificate and thus can generate revenue to help offset their salary and benefit costs. Additionally, some more experienced support staff candidates are applying for traditionally entry-level positions and bringing their considerable breadth of skills and experience to smaller firms. Alternately, you will receive a very large number of applications for entry-level positions and will need to separate qualified from unqualified candidates, which can be time-consuming.

-Turnover rates are increasing, causing firm leadership to spend more time hiring and training new employees after a dismissal or departure. Some of the reasons I have seen for this trend is a disparity in values or priorities, employees not meeting stated expectations, and employees not investing the time and effort to build sound legal skills and produce quality work.

Adding new members or service providers to a small or mid-sized law firm team can improve employee and client care, increase productivity, and reduce the time required by leadership to manage the firm while freeing up partners for strategic initiatives, business development and training/mentoring employees. To be successful though, firm management must ensure they carefully and quickly screen qualified candidates to ensure the right cultural and capability fit. Not always an easy task given the current hiring environment!

Henry Angelino is the owner of Angelino & Associates, Inc. and a strategic business and operations consultant for law firms. Read More

Legal Ethics

Ethical Roadmap for Data Breach or Cyberattack

By Carole Buckner

ABA Formal Opinion 483 provides a roadmap regarding a lawyer’s ethical obligations following a cyberattack or data breach involving confidential client information, where such information is misappropriated, destroyed or otherwise compromised, or where the data event impairs the lawyer’s ability to perform client services.  The ethical obligations of lawyers following a data breach depend on the lawyer’s role, level of authority, and responsibility in the operation of a law firm. Read More

Law Practice

‘Tis the Season for Planning for Success: Tips for your firm’s New Year’s resolutions

By Henry Angelino

The holiday season is in full swing as we prepare for the end of the year and plan for next year. We are attempting to balance our case load with family vacations, the final push for collections with ensuring our employees are rewarded for their dedication, and thinking about how to make 2018 even more successful than 2017. New Year’s resolutions are usually made in January, so here is a brief list of tips to help you get started.

Strategic Plan Review
Do you have a strategic or business plan and when was the last time you reviewed it? Unfortunately, there are numerous competing priorities for your time and handling the immediate needs of a client and/or matter take precedence. However, making the time for a “firm retreat” to create or review a plan can provide clarity and keep you focused in the coming year. Stephen Covey, author of The Seven Habits of Highly Effective People, states that you should “start with the end in mind.” As part of the strategic planning process, setting annual goals can assist in achieving your long-term goals (three, five and 10 years).

Business Development Plan Review
This is another tool to keep you personally focused on efforts to generate new clients or additional work from existing clients. Many attorneys will create a business development plan and put it away, never to look at it again. Now is the time to review and update your plan examining your networking progress, marketing efforts, community involvement and client development strategies. Did you join your practice section at the San Diego County Bar Association, alumni groups, professional organizations or civic boards, or volunteer with charities to enhance your professional expertise, expand your network and contribute to the community? What are you doing to strengthen your relationship with your clients? Is your plan reflected in your budget?

Risk Management Assessment
Risk and risk management are familiar terms for attorneys since they deal with them in every litigation case and transaction. Do you apply the same approach to your practice? Do you have policies and procedures in place to minimize the risk of having to disengage from a matter due to a failed client-attorney relationship, having a client file a suit or complaint against you, or the more common occurrence of performing “unintentional” pro bono work for a non-paying client? Risk management starts with the client intake process and continues with client communications, collections and disengagement or closing of the matter. Having a clearly defined process in place enables your firm to achieve consistency and efficiency, and reduce
risk while retaining optimum clients
and establishing a positive
business relationship.

Task Management and Delegation
Your time is important and you want to spend as much of your time practicing law versus administering the firm. Administration cannot be ignored though, so how do you free up more of your time? Make a list of tasks and decisions that you currently perform and then divide the list into two: Executive and Non-Executive Tasks. Executive tasks are items that only you can perform due to your knowledge, their complexity and/or their importance. Non-executive tasks are items that could be delegated to a staff member with the right training, guidance and supervision. Delegate tasks with the right controls, procedures and pre-approved templates in place, and enjoy practicing law more. Read More