Some law firms are late to the starting gate. Some firms continue to hang on to the "old ways" of running their practice. There are only a few alternative paths:Hang on with the old and wait for the world to catch up, or change as the world changes, making the tough decisions on a current basis.
In recent days, there have been several articles about large law firms cutting equity partners and staff in order to bring their financial affairs into focus. The reality is that they have found that the "eat what you kill" mentality works only so long before dissension and dissatisfaction sets in amongst the rank and file. Becoming more collaborative, cross selling the expertise of the firm and its individual members can create greater firm revenue. And paraphrasing former Pres. Kennedy, as the ocean rises, so do all the ships in the ocean.
In addition, the firms must identify their strengths and play to them. There are very few organizations that can be "all things to all people." With limited resources available, it is important to husband those resources and expend them in a focused manner for greatest benefit to the firm and its clients. Knowing who you are and what you want to be is essential to one’s success.
The catalyst to change is often money. With a cushion from past successes, there is little motive to change. When a cushion narrows or evaporates entirely, and when collections become an issue because clients with their own financial problems fail to pay your legal billings, motivation to review your operations and make appropriate changes rises to the surface.
In today’s WSJ, there is an article about investment industry fiduciaries. Apparently, the Department of Labor is moving forward in requiring brokers and investment advisers to avoid conflicts of interests.
And, the SEC, under the Dodd-Frank financial regulation law of 2010 can develop different standards for brokers and advisers. The latter group must avoid conflicts, but the former group must only disclose a conflict.
What a concept! In other words, if a stock broker’s company is underwriting the stock, the broker need only disclose the conflict. Try that in other professions, especially lawyers!
If we have a conflict of interest, we must do more than disclose. We must excuse ourselves. Yes, there can be a waiver, but that is not looked on with favor.
Of course, we follow the almighty dollar. The investment community is outraged that the DOL should believe it unlawful to proceed with a conflict of interest … We’ll see how this plays out.
Todays law firms are struggling to pay for their 3 most importance expenses: labor, rent, and insurance. This week, Ed offers tips to help you manage your cash flow so that paying the bills doesnt break the bank.
Jim Heiting, former president of the State Bar of California, commented on my article in LawBiz® Tips last week. He said, "I fully agree with your article about bar associations … and the new push to create more unemployment and less opportunity for the solo and small practitioner. Why not develop a [Bar] program that assists solos and small practitioners to represent people for reduced fees to get experience, make money, provide services otherwise unavailable at that rate, etc. We have many, many who would like to make a modest living but can’t/don’t seem to do it. This would assist the needy in both arenas: client and attorney."
For my money, Jim Heiting has been the only California Bar leader who truly had members’ (lawyers) AND the public’s interests in mind. Others before and since Jim have seen the Bar as a regulatory agency for the public with little or no concern for members. Unfortunately, this is likewise the case across the country.
There are way too few leaders in the legal community, whether in the Bar or the law school, who understand The Business of Law® and are willing to focus on members’ (lawyers) needs. Instead, they focus on creating new licensure opportunities that will not truly help the intended market and will both weaken the value of the law degree and the economic well-being of members.
A Canadian lawyer was on his way to a hearing for a client. Driving to the airport, he found himself in a deluge that "buried" his car, a new Ferrari. He abandoned his car and found another way to the airport to fly from his city to another for a hearing on the following morning. All this for the benefit of his client. By the way, he won his motion on the following day!
Client service to the extreme! What have you done for your clients lately?
ABA Journal has just opened it’s 100 best legal blog list.
This is an annual list, compiled on the basis of votes by readers, of the best blogs that lawyers should know about. If you enjoy my blawg, please follow this link to nominate it! Of course, you can also vote for other blog authors too, but please consider voting for mine, and let the editors know why you appreciate it!
