Are you Abel or Able?
Are you “for sale?” (See the sign in the background.)
Is this a sign or is this a sign?
The building and the land on which it sits are equally large.
Must be a personal injury law firm.
In 1995, the U.S. Government recognized my service mark, The Business of Law®. At that time, no one used the word “business” in the same sentence as “profession” when talking about the legal profession. Since then, more lawyers recognize that they are in a service business, but a business nevertheless. And the principles of business are now being reviewed and considered by more lawyers than before. Years ago, I wrote a piece that suggested that even sole practitioners would be well-advised to engage an executive director. The cost-benefits favor the lawyer many fold, though too few sole practitioners recognize this.
Today, large firms are engaging professionals to run their practice, their business. For example, Pepper Hamilton recently engaged a non-lawyer to be the CEO; this isn’t the first firm, though still only a select few, have moved in this direction. They are beginning to understand that it is the lawyer who can set the strategy … and it is the lawyer who must do what only the lawyer can do, get the business (marketing) and do the work (production). But, others – professionally trained and skilled as support for the law firm – can take the law firm to higher levels of success than would otherwise be the case.
Today Ed talks about a basic sales mantra: "Meet People! Meet People! Meet People!" He shares how Five Cards and Three Feet can help do this.
St. Louis has not yet realized that the legal age for having fun is 18!
From time to time, we have guests on our blog.
This week, Erik M. Pelton with Erik M. Pelton & Associates, PLLC is our guest blogger.
Unless you are truly a solo practitioner, you will experience hiring and managing a staff (even a ‘virtual assistant’) at some point. In fact, unless you are super-efficient or already established, some form of staff is likely necessary to manage a growing firm and the marketing needs. For example, in my 12 years of practice (starting and managing a small firm), I have hired and supervised numerous associate attorneys, paralegals, and interns, as well as a variety of subcontractors.
Hiring and managing is no easy task – especially when you have no relevant training or experience. Law school gives most of us the experience of being interviewed, not interviewing others; of writing resumes, not reviewing them; of taking instructions, not giving them.
Use the following keys for making successful hires in a law firm, and you should fare well:
– Personality and character are at least as important as experience and skills. Skills can be taught, but bad character or clashing personalities cannot be overcome.
– Reward staff that are trusted and hard working. When financial raises or bonuses are not available, provide additional vacation time. While this represents and increase in expenses, the financial and other costs (time, risk, productivity) of replacing someone good who leaves for another job and training a new hire are generally far greater.
– Let employees develop their own “brand.” Encourage them to participate in associations, chambers of commerce, or other activities that are good for the firm and good for their professional development.
– Provide occasional non-work opportunities to socialize with employees and their families and significant others. Take them out to dinner, sporting events, or the like.
– Lead by example. Actions speak louder than words. These clichés are generally true and can have a big impact. If you expect your staff to do something in a certain manner or act a certain way, you must lead by example.
– Don’t micro-manage. Delegate and provide support to your staff, but allow staff the room to grow and to figure things out on their own.
– Provide periodic reviews. Offer constructive criticism and positive reinforcement. Provide a steady stream of feedback to your staff and encourage them to provide the same to you.
– When staff members do not work out, cut your losses and move on. Letting someone go is difficult, uncomfortable, and creates short-term stress and additional work. However, it is worth it. Bad situations only become worse over time, and the lost time and stress produced by bad or unproductive relationships can never be replaced.
The only way to get experience in a position of authority is to do it! Hiring and supervising can be great fun and lead to great successes by training and mentoring staff persons that blossom.
© 2012 Erik M. Pelton. All Rights Reserved.
How do you formulate a plan when leaving your firm? Do you make a list of contacts, or create your own forms? Today’s clip from Ed is full of helpful tips when you’re thinking about leaving your firm.
There is much talk about how competitive the legal market has become. And this reminds me of an old Chinese proverb: “He who doesn’t turn runs far. “
In track and field events, the coach tells you to look at the tape in front of you, not who is behind you. Likewise, in running your law practice, do the best you can, focus on your skills (and improve them), on the efficiency and cost of delivering your legal services (use technology to improve your efficiency) … and, of course, on your clients and their needs (and wants). Then, you will have given it (your profession) your best shot.
John Wooden said, “The scoreboard? Championships? A sales quota? The bottom line? As goals, predictions, hopes, or dreams to be sealed up (in an envelope) and filed away, fine. But, as a day to day preoccupation they’re a waste of time, stealing attention and effort from the present and squandering it on the future. You control the former, not the latter.
“An organization – a team – that’s always looking up at the scoreboard will find a worthy opponent stealing the ball right out from under you….” Coach seldom scouted the opposition, focusing instead on what needed to be done to improve his team and prepare them to be the best they could be.
Traveling in the heat of 2011 was an incredible journey, one with many complaints …
until we learned about the hardships Lewis & Clark suffered …
with no maps or other guides to refuge. We again learned to be happy with what we had …
there is always someone who suffers more.
I’ve written extensively about lawyers planning for the succession of their practice, whether by merger, sale, or simply retiring by just walking away one day, closing their door forever more.
Some failed to plan well or spent their working lives increasing their standard of living to meet their compensation level — and not saving; others suffered financial losses in the economic downturn; and still others have lived beyond what they expected with their savings depleted by normal bills or chronic illness.
But, what are the numbers? I haven’t seen hard and fast numbers for the legal profession … but here are some numbers for our country … which I believe shed some light on the legal community.
The unemployment rate for Americans older than 75 years is twice what it was only five years ago. The rate might be higher if older folks were not embarrassed to say they are looking for work.There has been a 25% jump in the number of older people in the work force in the last 5 years. By 2018, the government projects that 10% of people over 75 years of age will be working or seeking work. Average net worth of households with at least one person over 70 years of age went down by 27% between 2007 and 2009. In 1981, social security paid 52% of the average worker’s pre-retirement earnings; in 2001, the percentage was 39% and expected to decline further.
More elderly find they cannot afford to retire … they must continue to work. The recent economic woes have taken a big bite out of the retirement hopes and plans of the Baby Boomers. And this includes lawyers.
Just today, a lawyer in his late 60’s called me to talk about selling his practice and retiring. But, he said, he enjoys what he does and financially cannot see his way to retiring. For interesting tax reasons, he turned away from selling his practice. Of course, he didn’t consult me before he made this decision.
But, I find it interesting that the prediction made by the ABA only a few years ago that by 2020 (or perhaps sooner), 400,000 lawyers would retire. As evidenced by the phone conversation today, I believe the numbers are correct, but the timing is not. Succession planning, whether a solo or large firm practitioner, will require more thought than we anticipated. And experts should be consulted to determine sales potential, tax planning (both estate and consequences of a sale) and future personal life planning.