The economic crises has finally hit home. People I know are talking about October and November as being months when the world stopped! … and they couldn’t get off. No one seems to know what is going to happen next.
I met yesterday with managing partners of several major law firms in my Managing Partners Roundtable.
Do you want to be a banker or lawyer? See LawBiz Tips current edition for one perspective.
In his article, Restoring Optimism, Law Practice Today (Nov. 08), David Maister suggests that law firm managers are coaches, but that they “edge away from the coach role” during tough economic times. I would concur that the really great managers are primarily coaches to their minions even while they understand and have a firm handle on the economics of the firm. I suspect, however, that there are very few managers or firm leaders who have this attribute.
Are you sure you still want to be partner?
Complete your time sheets daily, every day.
The best practice is to keep a running log of time (software-based or otherwise) of everything you do as you do it. If you’re a scrap-of-paper person, then you need to aggregate and compile the list for your billing program before leaving the office that day. Even if your memory rivals that of the elephant, you will miss things if you don’t do this every single day.
One missed 10th of an hour each day translates to 23 lost hours a year. And failure to keep current, proper time records will usually result in more than just 1/10th of an hour lost … DAILY … and MANY thousands of dollars in lost billable revenue!
I like the thinking of Patrick J. Lamb who, in August 2008, said that a lawyer can negotiate a fixed fee even in litigation. In other words, he contests the old rubric that since one doesn’t know what the “other side” will do in litigation, fixing a fee is not possible. He also suggests that creating a budget for litigation doesn’t guarantee a profit, just that the lawyer will not bill more than the budget.
But, the point that Mr. Lamb raises is that no business is guaranteed a profit. Yet, …
Many companies are going bankrupt. This is a growing practice area of the law. What will be the impact on the pension plans through bankruptcy? A number of large law firms are closing their doors … what will be the impact on their 401(k) plans? Have they become 101(k)’s, or gone away altogether?
Chapter 7’s usually terminates the 401(k) enabling the participant to roll it over into another appropriate plan. Chapter 11 may or may not impact the fund.
Staff should review the plans where there funds are placed . Unfunded employer contributions are at risk. There may be a full vesting if the firm discontinues contributions … but unfunded is still unfunded!
While I claim no specific expertise in this area, there has been an entire generation of employees/staff/associates, et al., who have counted on the growth of their pension plans for retirement, early or otherwise. Now, for the first time in years, there is a feeling among many that they may not be able to retire at all … or at least many years later than anticipated.
In the recent past, we talked about multiple generations working together in the same firm, with all of the consequent challenges of communication. While many thought the Baby Boomers (400,000 of them) would retire in the next 10 years, it is conceivable that they may not be able to leave because of the decreased value of their pensions and other savings.
What will happen?
Listen to Patrick Lamb, a prominent attorney and leader in the discussion of value billing and alternative fees. In our podcast, I asked Patrick to discuss the impact of today’s crises on both legal fees and attorney compensation.
When: November 25, 2008 (11:00 a.m. – 12:00 p.m. PT)
Where: Teleseminar
Sponsoring Organization: Texas Continuing Legal Education
When handling money or things for clients, a clients’ trust account is required. What must you do to set up such an account? Hos is this account managed? What is the difference between this account and an attorney’s general account? How might a lawyer run afould of the Rules of Professional Conduct? What is the liabiltiy of the laweyr for staff mistakes and bank failures?
I will teach at a new school, an on line school that will teach law school members and lawyers …
There is no organization so focused on the sole practitioner as is the Solo Practice University. I am thrilled to participate with Susan Cartier Liebel in implementing her concept and offer guidance to those who represent more than 70% of private practitioners in the legal profession.
Law schools do not teach law students to be sole practitioners; they will get the sense of the arena in which most lawyers operate today and will increasingly practice in the future. As larger firms begin to refine their needs, and to release more attorneys than in past years, more lawyers will move toward solo practice. They will need the skills that Solo Practice University will offer. My hope is that our law practice management offerings will advance both the economics and the satisfaction with the practice that these lawyers will experience.
Not only will we talk about the principles of successful law practice, we will offer coaching service to address specific challenges facing individual enrollees. Check it out and come join us.