LawBizBlog

Choosing between food and rent

edpoll@lawbiz.com (Ed) — Thu, 02 Jul 2009 16:01:08 -0500

In a conversation today with a client of mine, he presented me with an interesting dilemma. He is a sole practitioner with two associates. They both acknowledged that they were down to 50% capacity.

His dilemma now: What is his best choice?

1. Fire one of the two lawyers

2. Take work from his desk and transfer it to them ... this would give him more time to market the firm or more leisure for himself, but it wouldn't immediately increase the firm revenue

3. Have the two associates begin to focus more on practice development efforts that are within their comfort zone to take up the slack time and hopefully succeed in additional revenue

What are your thoughts? Are there other options you can suggest?

He would like to keep both associates fully occupied. But, if he can't, it's like choosing between food and rent. You need both but can't afford to pay full boat to do so.

Are high student loans equal to unfitness to be a lawyer?

edpoll@lawbiz.com (Ed) — Thu, 02 Jul 2009 15:15:46 -0500

In the case of Robert Bowman, New York judges overruled the Bar's entrance committee. He lacks the requisite character and fitness to be a lawyer, according to the judges, because of his extensive student loans accumulated over 26 years of study. He will not be granted the license to practice law.

Because of a very tough youth and at least two major accidents that required extensive rehabilitation, his education was extended ... and during that time, Mr. Bowman accumulated somewhere between $270,000 and $400,000 in student loans. He admits to not paying any of it back ... yet. He needs a job to do so. He's passed the bar and been deemed to be morally fit and of good character by the entrance committee. Oh, yes, except for the student loans he's not repaid or even paid down. (A side question might be, who made such loans, and why? But, I digress.)

As with a number of our politicians of recent note, I find it both interesting and disturbing when small-minded (yes, I know, this is a moral characterization) people sit in judgment on others on issues of this nature. Mr. Bowman apparently faced incredible physical odds in his life, not of his own making, and overcame them. But, in the process, he needed financial help.

I guess it was just bad timing for Mr. Bowman. Because had he accumulated this debt after he were licensed, and then went into bankruptcy, there would be nothing said about his character fitness. Before today, I had not experienced lawyers going into bankruptcy. Today, that is no longer an uncommon occurrence. In fact, bankruptcy is an approved strategy to avoid debt payment, used by a number of large law firms, including the Heller Ehrmann firm recently ... to avoid payment of the firm's lease obligations ... and therefore protecting the financial interests of their equity partners who might otherwise be exposed to collection efforts. I have difficulty understanding why the lawyers of Heller are morally fit to practice law, owing millions of dollars, and Mr. Bowman is unfit because of a few hundred thousand dollars.

Oh, and how about some of the lawyers in our community who give the profession a bad name by virtue of the way they practice, and the scams they pull on their clients ... and theft from client trust accounts that result in slaps on the hand or temporary suspensions? No, that seems to be o.k., but somehow, Mr. Bowman's case is different.

Perhaps moral integrity and character fitness should be grounds at least every five years for investigating every lawyer who renews his/her license. After all, don't we do that when we renew our driver's license?

Successful Law Firms Are All Alike (Part I)

edpoll@lawbiz.com (Ed) — Wed, 01 Jul 2009 18:19:17 -0500

Twitter beginning to slide?

edpoll@lawbiz.com (Ed) — Tue, 30 Jun 2009 17:45:09 -0500

Some lawyers are beginning to leave Twitter.

I started with Twitter several months ago and within 48 hours received 2 invitations to speak at conference, one on the West Coast and one in the Northeast. Beyond that, I haven't seen any revenue generated, but I have made connections with folks whom I value. Is it worthwhile? That depends on your metric for success. For revenue, no, not yet. For connections and an avenue for quick conversation, I think so (at least that's my current thinking. And I know a number of folks who swear by Twitter.

The problem with all of this social media is that the human body needs no further inducement to hunch over ... we've tried for so long to stand tall, straight. And being hunched over to look at our portable screen takes us back to our origins ... and takes multi-tasking to an entirely new level of understanding.

What has been your experience?

Are you the manager or the visionary?

edpoll@lawbiz.com (Ed) — Mon, 29 Jun 2009 14:59:18 -0500

I was just getting used to the "Information Age" when I learned about Dan Pink from Stewart Levine, a friend of mine.

Pink says we're moving out of the information age and into the "conceptual age" in which creativity will be supreme.

Wow, sure is tough to stay current. Someone asked me today about widgets. I said I learned about them, along with Blackacre, in law school. But, apparently, widgets has taken on a whole new meaning. :-)

How does this impact the law firm? Well, is the leader of your firm a visionary, one who can see the future for the firm, or a manager, one who implements the firm's policies? It is rare that we find one person embracing both roles.

Legal fees - New proposal prevents retainers

edpoll@lawbiz.com (Ed) — Sat, 27 Jun 2009 09:56:48 -0500

A new proposal, supported by the Board of Governors of the State Bar of California, appears to make it illegal for a lawyer to charge and accept an advance retainer in matters involving loan modifications. Do you think that, after the work is completed, the lawyer will be able to get the client to pay the fee?

How similar is this to the new San Francisco City ordinance that forces landlords to reduce their rent if a tenant loses his/her employment?

I thought these matters were the government's responsibility or charities? Perhaps lawyers and landlords are being conscripted now as charities.

Proud parent

edpoll@lawbiz.com (Ed) — Fri, 26 Jun 2009 10:00:27 -0500

Today, I'm a super proud parent (though I'm always proud of my kids!)

My daughter received a certification as a WCS (Women's Health Certified Specialist), 1 of only about 50 in the country.

Don't Waste a Good Crisis

edpoll@lawbiz.com (Ed) — Wed, 24 Jun 2009 11:58:41 -0500

Age discrimination lawsuits will be harder to win

edpoll@lawbiz.com (Ed) — Sat, 20 Jun 2009 23:46:26 -0500

In a decision this week, the US Supreme Court decided to change precedent. And who said "conservative" justices don't make law, are not "activists"? This decision is one of those based on ideological lines.

The Court in a 5-4 decision said that the burden of proving age discrimination lies solely with the plaintiff. In previous cases, the plaintiff merely had to prove that age was a factor ... and then the company had to show that there were legitimate reasons for the termination. How, now, will plaintiffs be able to show that age was the primary factor? Afer all, the plaintiff was not in the room when the decision to terminate him/her was made.

LawBiz® Forum goes live

edpoll@lawbiz.com (Ed) — Sat, 20 Jun 2009 21:40:10 -0500

The Forum, previewed at the ABA TechShow, is now "live." Lawyers are invited to join at no cost and participate with their questions and support for other lawyers. We are creating a community, unique in the legal world.

Call Ed with any questions at 800/837-5880 or edpoll@lawbiz.com.

IOLTA Funds

edpoll@lawbiz.com (Ed) — Fri, 19 Jun 2009 18:34:59 -0500

Doing business the "old way" must change or ....

edpoll@lawbiz.com (Ed) — Fri, 19 Jun 2009 00:13:53 -0500

Linda J. Popky, "The Marketing Master," recently had to completely change her diet in order to treat a persistent cough. She compared her experience to that of businesses suffering in today's economy. She says that they will need to change the way they do business, or suffer the consequences...

" ... The old ways to generate business don't seem to be working. Assumptions on how people make purchase decisions, choose brands, and even decide whether or not to purchase products and services have all changed. The trouble is we're so used to looking at things the way they've always been that we don't see the different paths that may be more effective in today's situation.

"Those who are waiting for the old way of life to return are likely to find themselves quite hungry for some time. They're hunkering down and waiting for things to come back to "normal," to the way things used to be. There's no question that we will achieve a semblance of business normality very soon, but it's highly unlikely to be what we were used to before. The world has changed – the strategies and approaches, tactics and approaches we used before are unlikely to be as effective in today's environment.

"Maybe it's time to change the recipe. Time to replace outdated assumptions and processes with ones that reflect the new reality. Time to find substitutes and alternatives to grow your business: new markets to targets, different ways to provide value to customers, innovative ways to be competitive..."

Is this what some of the now defunct law firms did? Did they wait too long before realizing that the world had changed? Today, we criticize law firms that lay-off lawyers and staff ... "right size." But, aren't they the wiser ones who are seeking to adjust to the realities of the new world?

Social Media = Narcissism + ADHD + Stalking

edpoll@lawbiz.com (Ed) — Thu, 18 Jun 2009 11:25:01 -0500

Senior lawyers at risk

edpoll@lawbiz.com (Ed) — Wed, 17 Jun 2009 22:39:39 -0500

Layoffs in the legal profession have been in the news lately, but downsizing from the top? More experienced attorneys, even senior partners in some larger law firms are not as secure in their jobs as they once were in what may be more signs of practicing law as a business. Law.com bloggers and co-hosts Bob Ambrogi and J. Craig Williams welcome Ed Poll, a recognized expert and author in law practice management and Stephen E. Seckler, president of Seckler Legal Consulting, to discuss the new benchmarks the legal profession is seeing in job performance and what The Business of Law may look like in the future.

LawBiz® Forum

edpoll@lawbiz.com (Ed) — Wed, 17 Jun 2009 19:10:54 -0500

NEW ONLINE FORUM LAUNCHES FOR LEGAL PROFESSIONALS
Ed Poll Unveils LawBiz® Forum as New Online Community

VENICE, CA MAY 5, 2009 - Nationally recognized law firm management expert Ed Poll, JD, MBA, CMC, announced today the launch of www.LawBizForum.com, an online destination for lawyers, sole practitioners, partners, managing partners, of-counsel and in-house counsel, and others who are members of the legal community providing services to the American people.

LawBiz® Forum will promote discussion about issues that enable lawyers to more effectively and efficiently deliver their services to their clients, such as management, marketing, technology and finance, and others. LawBiz® Forum is a place where the legal community can exchange ideas and techniques in order to improve the personal and professional lives of its members.

“Law is an honorable profession. Only lawyers are given the unique responsibility in the United States Constitution to help those accused of a crime, a fundamental right guaranteed to all citizens,” remarks Poll. “This helping, caring nature of the legal community sometimes is forgotten by the psychological, social, and economic pressures facing lawyers, and I created this forum so that we can care for each other.”

LawBiz® Forum will have several levels of membership. All visitors to the site can review the discussions at no cost. However, members will be able to contribute to the discussions, participate in exclusive webinars, and have online access to Poll’s books and audio products.

In addition to LawBiz® Forum, Ed has a popular YouTube Channel and has also started to use Twitter as a way to reach out to the cyber sphere.

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About Ed Poll

Ed Poll, J.D., M.B.A., CMC, is a nationally recognized expert in law practice management. He helps attorneys and law firms increase their profitability consulting with them on issues of internal operations, business development, and financial matters. Poll brings his clients a solid background in both law and business. He has 25 years experience as a practicing attorney and has also served as CEO and COO for several manufacturing businesses. In 1990, he founded LawBiz® Management Company and is now focused on coaching lawyers, speaking, and writing.

Poll is the author of numerous publications that have become the definitive works in the legal field, including: Law Firm Fees & Compensation: Value and Growth Dynamics (LawBiz© Management Co. 2008), Attorney & Law Firm Guide to The Business of Law: Planning and Operating for Survival and Growth, 2nd ed. (American Bar Assoc. 2003); The Profitable Law Office Handbook: Attorney’s Guide to Successful Business Planning (LawBiz® Management Co. 1996); Secrets of the Business of Law®: Successful Practices for Increasing Your Profits! (LawBiz® Management Co. 1998)

The Little Black Book

edpoll@lawbiz.com (Ed) — Tue, 16 Jun 2009 14:09:52 -0500

In today’s economic world, marketing is more important than ever. The people who are bringing in business are the ones who are out there courting it. That’s why I am happy to share with you a special opportunity. For the next 48 hours only, my colleague Paula Black is offering a collection of FREE bonus gifts to anyone who purchases her latest book: “The Little Black Book: A Lawyer’s Guide To Creating A Marketing Habit in 21 Days.”

Designed to help lawyers integrate marketing into their daily lives, this book is quick, easy and inspirational. And by purchasing it within the next 48 hours you will receive special access to information and resources from more than 30 experts. A compilation of advice from some of the most sought-after experts in the legal arena, “The Smart Lawyer’s Toolkit” gives you instant admittance to an incredible collection of tips and information. Click here for details…but do it fast!

Hold your head high

edpoll@lawbiz.com (Ed) — Tue, 16 Jun 2009 12:06:18 -0500

Take a look at today's WSJ in the Personal Journal section ... talks about our personal critic ... our worst enemy ... and suggests that challenges to our self-esteem are so devastating to our well-being. This may be one of the most important lessons I've learned and re-learned ... and continue to deal with ... in recent years! I always knew it, but never put it in the right context before listening to my coach. Self-esteem goes beyond the bravado attributed to lawyers and that has been dubbed "arrogance" by those outside the legal community.

Just one of many benefits I've received over the last few years from being in my own business coaching program with someone I trust and have a high regard for.

Self-worth may be more important than any other attribute. It allows one to hold one's head high, a very important angle for the human anatomy.

Senior Olympics - Why so special to me

edpoll@lawbiz.com (Ed) — Sun, 14 Jun 2009 00:01:57 -0500

I competed in two events at the Senior Olympics held this week in Los Angeles. I previously reported my results. I've been thinking further about the process of the competition and came up with ideas about how the competition relates to my life, and the lives of many people in our profession. Below is how I see the Senior Olympics on the one hand and how they are a metaphor in real life. If you have other events in your life that you care to share, please write me.

I would love to present the following in a graphic format but am technologically challened to do that. So, the presentation is linear. And SO means Senior Olympics and MIRL means Metaphor in Real Life.

Senior Olympics
Rode to the site of the Senior Olympics on the Sunday before the event to make sure I wouldn’t get lost on the day of the first event

Metaphor in real life
Asked my father to drive me to and around both junior and senior high school; my daughter asked me to go with her when she scouted her ultimate college choice

SO
I rode the course before the day of the event to check it out, to determine where the inclines and curves were, to determine the benchmarks before reaching both the 5K and 10K points, and to get an idea of what my time would be on this course, a course I had never ridden before, so that I would know when my last hard push on the course should start.

MIRL
A client of mine asked me to detail what the litigation process was like, what he should expect at each stage of the process and what would be the likely outcome. He needed to reduce the element of surprise and have an idea of the process since he had never been involved with the legal system before.

SO
On the day of the event, I made sure I was early so that I could warm up sufficiently, ride the course more than once and determine if any new obstacles would impact me, as well as appropriately deal with any calls of nature. Because I was early, I had time to talk to a coach who provided me invaluable information about how to approach the race; his advice enabled me to achieve my best time ever.

MIRL
My wife is always early. When she gives me a departure time, I know to advance that by at least 15 minutes. When you know what to expect, you are less likely to be subject to unwanted surprise ... and when you do arrive early, you can network with other people and learn from them.
This experience also confirmed once again the invaluable assistance a good coach provides to lawyers who want to reach their goals, to people who want to more than just show up in life.

SO
Having completed my event, I left. I began to focus on the next goal: recuperating, and then looking at the next event on the following day

MIRL
Having achieved one goal, it’s important to reward yourself, look at your success and move on to your next goal, whether it had already been stated or is created because of your recent accomplishment. This process and working with a coach is a lifetime process ... it does not end just because you achieved your first goal. Life is holistic, a complete life that includes work, play, family, personal achievements and all else that we call living. And a coach can help make important segments that much more effective and rewarding.

SO
I arrived again the following day for the next event. I was a little later than the previous day because I felt more confident that I knew the protocol. But, I was still early. And, I had another conversation with a second coach about this day’s race. He gave me a different “spin” on how to approach the race, in effect telling me that my day’s effort should exceed twice my first day’s result. I thought he was crazy, but listened to his experience. And, though it is still counter-intuitive to me since I didn’t think I could produce two extreme efforts, back to back, on the second day, I went onto the course with two objectives, not one. The first objective was to beat my previous day’s best. The second objective was to ride a time that was less than twice my previous day’s effort. I wasn’t sure I had it in me to achieve the first goal and I thought the second goal was a pipedream ... But, because of the coach and some encouragement from a third person, I achieved both goals!

MIRL
A Coach can help shape our thinking. Positive, constructive support always helps us improve our performance, whether we’re a child receiving advice from a parent or teacher, or a lawyer working with a coach knowledgeable in the process of law practice management. I believe in the coaching process so much that it is not only my profession, but I engage my own coach. And his wisdom and teachings have made a huge and positive impact on my life.

Every law practice has a value & can be sold!

edpoll@lawbiz.com (Ed) — Fri, 12 Jun 2009 21:02:17 -0500

I've just returned from a presentation by accountants on valuing a law practice. They talked about "excess earnings," "discounted cash flow," and "market value." They essentially discussed the valuation of a law practice from the perspective of the divorce court which fails to recognize market value as an appropriate standard of valuation, ostensibly because they can't find enough data points to make the information reliable.

However, with all due respect to the courts (and the accountants who parroted the courts' standards, the reality is that the courts will use any logic (or lack thereof) to "do equity" as between the two spouses before the court. That does not reflect market reality.

In my experience, every law practice has value ... what it may be is a subject of further discussion, but it has value! And to use formulae that are created to perpetuate a fiction does an injustice to the lawyers who have spent a full career building their goodwill and now want to retire and realize benefits from that goodwill ... We are not in the divorce court!

Senior lawyers being told to find new employment

edpoll@lawbiz.com (Ed) — Fri, 12 Jun 2009 20:13:45 -0500

In an interview for Lawyer2Lawyer I discussed the current trend in law firms to review their business model and their entire operation. They're taking the opportunity to cut back where appropriate because their revenues are declining ... and they are reducing their highest expense -- senior lawyers.

Don't waste a good crisis is the new mantra.

Wilmer Hale, a major law firm, recently announced that they have told a number of lawyers to look for other employment come the Fall. But, they have also done something that I have not heard anyone else do. At the same time they revised the standards to remain with the firm, they also are offering those impacted the opportunity to learn new skills that will give them the chance to meet the new standards.

While some may think their action is age discrimination, I believe it is o.k. to change the law firm model provided you also offer education and training programs to those involved so they can meet the new standards.

For me, a comparative situation might involve a secretary who has been employed by the firm for a long time. The secretary is proficient in dictation. Now, the firm believes that dictation is not the most efficient method to convert a lawyer's thoughts to paper. So, the firm converts to a new technology, making the secretary's skills obsolete. Rather than fire the secretary, though, the firm offers the secretary education programs to enable her/him to learn the new technology. If the secretary fails or refuses to learn and utilize the new technology, I believe there is no requirement to retain the secretary on staff.

Thus, with lawyers. Many were made partners because they had large billable hours, because they were good "minders" of clients despite the fact that they were not "finders" or rainmakers. Today, rainmaking has become a significant attribute that is important for partners to have. Those who don't become expendable.

While painful for many, I do believe it is not inappropriate for the firm to ask this of its lawyers.