On Thursday, August 22, the NASDAQ, one of the largest financial exchanges in the world, failed. It had no backup, and was down for more than three hours. The financial impact had to be in the billions of dollars.
Even as big as NASDAQ is, even though they have a pivotal role in the global economy, they failed to have a plan for disaster recovery. How and why they recovered is still, at this writing, a mystery. The fact that they did recover is remarkable. Even more remarkable is the fact that it has happened to them before. According to an article in The New York Times, the exchange has been shut down twice before when squirrels chewed through power lines, and as recently as 2011 hackers breached its computer system.
If it happened to NASDAQ, it can happen to your law firm. As I’ve written many times before, “disaster” for a law firm is not a question of if, but rather of when. The only unknowns are what the type of disaster, when it will occur and how bad it will be. NASDAQ was out of commission for three hours. A burst water pipe, a fire, a natural disaster, a computer meltdown could put a law firm out of commission for three weeks, or three months.
NASDAQ had no backup. How about your firm? The issue isn’t just backing up data files, although that is important. Do you have disaster recovery backups like these?
·An internal emergency communication system for lawyers, staff, clients, vendors, and the court, incorporating recorded hotline messages and out of area contact points.
·A plan for temporary office space that will accommodate furnishings, computers and phones.
·A referral arrangement with another firm that will allow you to carry on key practice matters by requesting a continuance or rescheduling a deposition.
·A solid relationship with your banker so you can get an emergency loan.
·An employee assistance fund to help tide staff over in the event there are no ready funds to pay them.
If you don’t, start planning to put them in place now. If disaster happened to NASDAQ, it can happen to you.
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.
NEW ONLINE FORUM LAUNCHES FOR LEGAL PROFESSIONALS
Ed Poll Unveils LawBiz® Forum as New Online Community
VENICE, CA MAY 5, 2009 – Nationally recognized law firm management expert Ed Poll, JD, MBA, CMC, announced today the launch of www.LawBizForum.com, an online destination for lawyers, sole practitioners, partners, managing partners, of-counsel and in-house counsel, and others who are members of the legal community providing services to the American people.
LawBiz® Forum will promote discussion about issues that enable lawyers to more effectively and efficiently deliver their services to their clients, such as management, marketing, technology and finance, and others. LawBiz® Forum is a place where the legal community can exchange ideas and techniques in order to improve the personal and professional lives of its members.
“Law is an honorable profession. Only lawyers are given the unique responsibility in the United States Constitution to help those accused of a crime, a fundamental right guaranteed to all citizens,” remarks Poll. “This helping, caring nature of the legal community sometimes is forgotten by the psychological, social, and economic pressures facing lawyers, and I created this forum so that we can care for each other.”
LawBiz® Forum will have several levels of membership. All visitors to the site can review the discussions at no cost. However, members will be able to contribute to the discussions, participate in exclusive webinars, and have online access to Poll’s books and audio products.
Ed Poll, J.D., M.B.A., CMC, is a nationally recognized expert in law practice management. He helps attorneys and law firms increase their profitability consulting with them on issues of internal operations, business development, and financial matters. Poll brings his clients a solid background in both law and business. He has 25 years experience as a practicing attorney and has also served as CEO and COO for several manufacturing businesses. In 1990, he founded LawBiz® Management Company and is now focused on coaching lawyers, speaking, and writing.