Tag Archive: goodwill.

Open letter to Fred Smith, Chmn & CEO of FedEx

A customer challenge and how to create customer ill will:

I sent two framed pieces of art, one of them  a print by Salvador Dali, to my son in New York. I’m in Los Angeles. The representative at the counter of the Marina del Rey FedEx store assured me that FedEx packaging the prints would guarantee a) that they would be packaged well, b) if there were any damage, FedEx would not assert a claim of improper packaging. I paid extra for this service and was given a $1,000 insurance policy at no extra charge.

The prints arrived in New York … with the cover glass broken and the outside packaging ripped. I filed a claim with the company as requested, with photos and a claim estimate from a frame company. After what seemed like more time than it should have taken, I received a letter denying the claim…. because the prints were improperly packaged. I called to inquire further but was told that the person who denied the claim, the person whose name is on the letter of denial,  had to be the person to talk with me. I called several times, leaving my name and number, requesting a return call. Still …. no response.

I called the local (point of shipment) office. They again assured me that they were responsible for packaging … and proof of FedEx packaging is both in the pictures (they used blue packaging tape) and on the invoice issued by FedEx. But, I was told, they have no authority to settle a claim.  Apparently, neither does the New York (locus of delivery) office.

Several calls to the claims department of FedEx in the East have not been returned. Yet, another department of the company is now threatening me with a collection letter.

This denial and silence breeds ill-will among customers/clients. I read a marketing statistic that suggests that for every good service experience, you tell one person; for every bad service experience, you tell 20 people. This amplification is not what any responsible company wants  to experience.

Moral to my audience:  Make it easy to reach you; don’t hide behind complex web site walls. Return calls and resolve disputes … that’s how you create goodwill.


View page

What is the most feared word in the English language?

At the end of the day, the value of our law practice is based on our success and the many people we have touched over the years. This is a significant legacy we will leave on retiring from the practice. 

Most lawyers all around the country with whom I’ve spoken don’t understand this and can’t comprehend even the possibility that their many years of effort may actually have produced a monetizeable value of some significance. This value can enhance their retirement. It is a challenge to overcome such deep-seeded beliefs among many Baby-Boomers as they get ready to move on to their second season. This is the difference between personal goodwill and organizational goodwill. There is more of the latter than most people believe.

My conversations have convinced me that the most feared word in the English language is “retirement.” That may contribute to the refusal to consider an alternative to closing the office; we will maintain our office and work until our last breath. It is possible, however, to do both! The sale or merger of your law practice, rather than the closing of the office, should be an alternative that is kept open for your consideration.

 


View page

Legacy = Goodwill

I have been getting more calls from lawyers wanting to retire, wanting to sell their law practices. As a result, I started writing a new book. I just finished Life After Law: What Will You Do With the Rest of Your Life?  It is being edited now and will be available for sale in October.

As a result, I’ve been giving a lot of thought to the definition of Goodwill, the primary asset a lawyer has to sell. And though it is not consistent with the accounting profession’s definition, I have come upon a new definition that I believe is more meaningful to the average lawyer, whether buying or selling:

Goodwill can be defined as legacy … it’s your legacy that you’re passing along to others … It’s your reputation, your phone number, your system and way of doing business, all the intangible elements that made you successful and provides you, the selling lawyer, with what to sell … The better is your reputation, the more value your law practice will have.


View page