Category: Management
As a member of the National Speakers Association, I had the learning opportunity to participate with several of the great voices of our generation.
Marshall Goldsmith, who coaches more than 50 of the top 100 CEOs of corporate America, commented on several psychological observations that I found interesting:
- What we do at home, we do at the office, and vice versa. In other words, if we are unkind to our colleagues, our staff and our adversaries, we’re probably exhibiting to same behavior to our spouses and our children.
- Among the annoying habits that can hold successful people back is winning too much. Generally, we’re successful because we’re competitive. Being competitive, we win. But, we don’t know when to stop. We even compete on who is to select the restaurant to go to for dinner.
- Successful people often add too much value. In other words, we add something to another person’s idea. Instead of saying "thank you" and being quiet, we say that is a great idea, but it would be better if you add x, y, or z. He says that the quality of the idea may go up by 5%, but the participation will go way down … because it now is no longer the other person’s idea. We have stolen the other person’s investment in the process.
- Destructive comments prevents forward progress. Avoid the use of the words, "no," "but" and "however." These words discount the value of the other person and their ideas. By merely saying "thank you," we can create, maintain and retain our team with significantly greater results for all involved.
- Leadership is a contact sport! Studies show that where the leader followed-up, there was greatest improvement.
- What got you here, won’t get you there. Those competitive attributes that got you to the leader’s position are different than the attributes of a successful leader. You must alter your skill set in order to succeed in your new position.
Powerful thoughts, indeed. How can you apply these thoughts to your law practice. How can you coach your team to greater heights? Do you have a coach yourself? What do you want from your coach? Have you told him/her? How can a coach help you reach greater heights?
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A recent ALM Research annual compensation survey for Paralegals/Legal Assistants and Managers, suggested some interesting statistics.
- Compensation increases averaged between 3 and 5%
- The highest paid paralegals are litigation support/technology managers who earned a median annual base compensation of $115,000
- The average billing rate for paralegals was more than $150 per hour, with rates for most positions exceeding $175
- Paralegal case managers in law firms averaged 1,642 billable hours, followed by senior paralegals at 1,530 hours
Many lawyers are still charging less than $200 per hour. Though faced with competition from other lawyers (and now paralegals), lawyers must fight to find ways to increase their fees, whether by the hour or otherwise. If they don’t, their economic well-being will be endangered. In fact, recent statistics I saw in a California study says that 50% of California lawyers earn less than $100,000 and 50% of those earn less than $50,000. The scene is echoed in New York and elsewhere.
Like every other profession and trade and business, the practice of law is a business … That means we’re governed by the same formula: P=R – E. Profit (take home pay) equals revenue collected less expenses.
Remember the ABA study that opined that lawyers who billed 1,500 hours per year would earn a substantial income? Apparently, the standard today is between 1800 and 2200 hours of billable time. That doesn’t leave much time to eat, brush your teeth or say hello to your kids. And, of course, this does not include the hours spent on visioning the future of and operating your practice today as a business, which it is.
We need to spend many hours tilling the soil if we want to advance, both professionally and economically. "The grass is NOT greener on the other side." It’s just a different set of challenges.
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Tonight, ABC did a program about Randy Pausch, the Carnegie Mellon University computer professor who recently died of cancer. His “last lecture” has become famous, is a book and apparently will be a movie in the near future.
His story is inspiring. His last comment: When you walk off the field, can you say that you gave it your best shot, that you “left it on the field,” and that you have no regrets, even if the end result was not as you would have liked. One of his last comments was to say that he waited until the age of 39 to marry because it took him that long to find a woman whom he loved more than himself. The love and support between these two humans, and their children, also, was a joy to witness.
His comment is an outstanding rule for life, a mantra to live by … and it’s also a very good rule for your law practice. Are you truly committed to your and your law firm’s success? Are your clients the focus of your attention and your primary concern? Can the circle of your joy be extended to include your colleagues and staff? Do you have a toxic law firm environment? What can you do to eliminate this toxicity? What can you do to have a life and a law business you enjoy and value?
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Checks and balances is a key element of American democracy … and our economic success. Apparently, San Francisco forgot the lesson … and has paid dearly. This is a lesson that all law firms must learn … and practice … or possibly be guilty of multiple counts of malpractice and violation of Rules of Professional Conduct! It is a basic rule of the Business of Law. (more…)
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Facts:
1. In 2000, 60% of associates left their firms within 5 years.
2. In 2005, 80% of associates left their firms within 5 years.
3. Every time an associate leaves, it can cost a firm from $200,000 to $500,000!
4. "De-equitization" is no longer unusual; in fact, at least one firm has paid millions of dollars in penalties for firing partners — the EEOC called it age discrimination against employees.
5. Today, many firms are terminating relationships with their attorneys, and corresponding staff.
One could argue that law firms are businesses and merely reacting to the vagaries of today’s economy. While that is true, it seems that we are stuck on the horns of a dilemma. Rather than terminating lawyers in one area while at the same time seeking other lawyers (laterals and others) for different practice areas, it seems far more prudent to teach new skills to the lawyers you now employ. This would save the firm money and, perhaps more important, it would enhance the morale of the law firm … Also, how about preserving the client relationships that the departing lawyers have enjoyed while with the firm?
Something is wrong with this picture … and until law firm management "gets it," there will continue to be turmoil in the legal community.
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A recent 9th U.S. Circuit Court of Appeal allows the government to search, seize and download laptop data at border crossings despite the Fourth Amendment! Suspicion is not required. A warrant is not required. No protection is available for the individual under this ruling. Just one more liberty removed.
The panel suggested that travelers should no longer expect privacy!
Rules of professional conduct require confidentiality. ABA Model Rule 6.1 provides that "A lawyer shall not reveal information relating to the representation of a client … " Thus, a lawyer should not have any information on the laptop about clients’ matters. If that’s true, then can a lawyer travel across the border with a laptop? Arguably not!
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Marketers have frequently complained that marketers are not given a “seat at the table” of law firm management. The Legal Marketing Association, in Strategies: The Journal of Legal Marketing, recently expressed the organization’s new definition of marketing: “Marketing is the activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners and society at large.”
That’s a pretty broad statement, yet lacks simplicity and directness. This may be one reason why the seat at the table is still denied to many who claim the title “marketer.” (more…)
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"Business is a team sport," says Ann Livermore, head of one of Hewlett-Packard’s business units. But, she says that this sentiment is not common, even among other business executives. They seem to be more focused on their personal agenda rather than on the well-being of the company.
Does this sound familiar? Is this why law firms, no matter how large, act as though they are hotels for sole practitioners? Is this why even large law firm lawyers talk about "their clients" rather than talking about "firm clients"?
If you can keep your eye on the "team," does your firm have a strategic plan? Is your firm planning proactively for its future, or are you merely reacting to the marketplace and your existing clients?
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British CEO pay rose 287% in the last decade; private sector workers’ pay rose only 47% in the same period. Workers’ contributions are measured; CEO contributions often are questionable and substantial severance packages are given even when corporate stock prices and earnings have decreased. Under these circumstances, It’s hard to ask ordinary workers (who generally live paycheck to paycheck) to take cuts in compensation. (See June 30 article in USA Today.)
The U.S. corporate figures are similar, only bigger.
Now look at AmLaw 100. Are the numbers different? Not by much … When partners are earning in excess of $1,000,000, some in excess of $5,000,000, how can you complain about associates seeking $160,000? Because the firm will feel compelled to raise its rates to clients? Because some clients will resist? And the C-Executives complaining are earning how much? How many millions?
Sorry, but in this circle, there is little sympathy for the corporate client with those numbers who complains … This corporate client has options: Why not engage regional law firms with equal skills and lower rates? Is it necessary for large firm partners to earn such large sums in order to be at the table with CEOs as a colleague, not as a vendor, or can their expertise be sufficient to earn them the seat at the table?
Interesting difference, though, between law firms and corporate clients. The corporation pays a high severance package while the law firm does not. Another difference is that the corporate executive is able to negotiate the very attractive severance package before entering his/her employment and the lawyer generally is not.
One day, I’ll create a listing of the differences between the C-executive and the lawyer. I think this would be very enlightening for us. But, that’s for another day.
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Alan Weiss, The Million Dollar Consultant® asked the following questions: “What do you do when you have a great deal of work and still more requests? In other words, what do you do with an embarrassment of riches to ensure that you retain as much business as possible?” (more…)
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