Category: Law Office Management

Law Firm Security: Privacy & Data Security Laws that Affect Your Law Firm

At this point in the cybersecurity game, it’s a given that to prevent a breach, law firms must take every precaution to protect its data as well as the valuable data of its clients. What may not be as clear are the obligations that law firms, or any other third party, owe to certain organizations via industry-specific privacy and data security laws and regulations. These are put in place by foundations, government laws, and agency policies to ensure that they are not vulnerable to cybersecurity attacks.

Privacy and Data Security Laws and Regulations

Although there are many organizations that are subject to these laws, this article will address the most high-profile organizations, including the following:

Health Insurance Portability and Accountability Act (HIPAA)

HIPAA applies to covered entities such as health plans, health care clearinghouses and certain health care providers. Because these entities do not operate in a vacuum and often rely on the services of third-party businesses, there are provisions that allow these entities to share information with business associates and law firms.

A business associate “is a person or entity that performs certain functions or activities that involve the use or disclosure of protected health information on behalf of, or provides services to, a covered entity,” according to the U.S. Department of Health & Human Services website.

Before information is shared with a business associate, the entity must first receive satisfactory assurances that the information will only be used for the purposes for which it was obtained, that the information will be safeguarded and that the information will help the covered entity to perform its duties. The satisfactory assurances must be in writing to ensure compliance with privacy and data security laws.

Gramm Leach Bliley Act (GLBA)

The GLBA was enacted to require financial institutions to explain their information-sharing practices to their customers and to safeguard vulnerable customer data from a security breach.

Under the Safeguards Rule of the GLBA, all financial institutions must protect consumer collected information from a security breach. Usually, data collected includes names, addresses and phone numbers; bank and credit card account numbers; income and credit histories; and Social Security numbers.

Further, financial institutions are required to ensure that parties with whom they are doing business must also be able to safeguard data with which they have been entrusted, such as law firms. Financial institutions must “select service providers that can maintain appropriate safeguards. Make sure your contract requires them to maintain safeguards, and oversee their handling of customer information,” according to the FTC website to ensure compliance of privacy and data security laws.

The FTC provides a detailed list of tips that financial institutions, as well as third-parties, can use to set up a strong security system to prevent a data breach of a customer’s information.

Payment Card Industry Data Security Standard (PCI-DSS)

The PCI was founded by American Express, Discover Financial Services, JCB International, MasterCard, and Visa, Inc. with the intent to “develop, enhance, disseminate and assist with the understanding of security standards for payment account security,” according to its website.

The standards apply to all entities that store, process or transmit cardholder data. This would include law firms, of course. The website lists 12 requirements that must be maintained, including:

  1. Install and maintain a firewall configuration to protect cardholder data.
  2. Do not use vendor-supplied defaults for system passwords and other security parameters.
  3. Protect stored cardholder data.
  4. Encrypt transmission of cardholder data across open, public networks.
  5. Use and regularly update anti-virus software or programs.
  6. Develop and maintain secure systems and applications.
  7. Restrict access to cardholder data by business need-to-know.
  8. Assign a unique ID to each person with computer access.
  9. Restrict physical access to cardholder data.
  10. Track and monitor all access to network resources and cardholder data.
  11. Regularly test security systems and processes.
  12. Maintain a policy that addresses privacy and data security laws and regulations for employees and contractors.

Federal Reserve System

The Federal Reserve System issued the Guidance on Managing Outsourcing Risk publication to address concerns about third-party vendors or service providers and the risks of a data breach. The Federal Reserve defines service provider as, “all entities that have entered into a contractual relationship with a financial institution to provide business functions or activities.”

The publication indicates that a financial institution should treat the service provider risk management program commensurate with the level of risk presented by each service provider. “It should focus on outsourced activities that have a substantial impact on a financial institution’s financial condition; are critical to the institution’s ongoing operations; involve sensitive customer information or new bank products or services; or pose material compliance risk,” according to the publication.

An effective program should include the following:

  1. Risk assessments;
  2. Due diligence and selection of service providers;
  3. Contract provisions and considerations;
  4. Incentive compensation review;
  5. Oversight and monitoring of service providers; and
  6. Business continuity and contingency plans.

Federal Deposit Insurance Corporation (FDIC)

The FDIC issued a Guidance for Managing Third-Party Risk where the agency makes clear that an institution’s board of directors and senior management are responsible for the activities and risks associated with third-party vendors. This includes a breach into a third-party’s system. Among other third-party organizations, the publication lists significant organizations where “the relationship has a material effect on the institution’s revenues or expenses; the third party performs critical functions; the third-party stores, accesses, transmits, or performs transactions on sensitive customer information.” All of these could involve law firms that work with financial institutions.

The publication summarizes risks that third-party entities may pose, including strategic risk, reputations risk, operational risk, transaction risk, credit risk, compliance risk, and other risks. It also summarizes a risk management process, which includes the following elements of (1) risk assessment, (2) due diligence in selecting a third party, (3) contract structuring and review, and (4) oversight.

Conclusion

Being a third-party cybersecurity risk may be foreign territory to most law firms. But many organizations have in place privacy and data security laws and regulations to protect systems that could be vulnerable to a cybersecurity breach. It behooves law firms to be aware of these laws and regulations to be able to implement the laws and regulations as thoroughly and as expeditiously as possible.

ARTICLE BY:

Jaliz Maldonado
PracticePanther
© Copyright 2018 PracticePanther

3 Steps to Network Your Law Firm on LinkedIn

LinkedIn is all about making business connections and luckily for you, there are several great tools on the site that makes networking on this platform a breeze. Once you have your profile in place and have made sure all the information is up to date, that you have some blog posts connected to it, and have added a video or two, you are set to network. Here are the three key steps you need to take:

Step 1: Have LinkedIn import your address book and search your email account.

The site will then suggest some connections based on who you already know. Send those suggested connections a connection request and you are on your way.

Step 2: Find and connect with potential clients.

  • Search by industry first to see if you already have any connections at companies you are targeting for potential new business.

  • If you find that you have a first-degree connection to a prospective client, call or email your first-degree connection and ask them to make an introduction.

  • If the connections you find are further down the scale (2nd or 3rd tier connections), use the InMail feature to invite those people to connect with you. Customize your request to provide context for the connection.

  • Be sure you have opted in to LinkedIn alerts for all your connections. Once you receive an alert that someone you’re connected with has published an article or has a new job, send them an email to reconnect and rekindle the relationship.

  • If you receive an alert that someone has viewed your profile who could be a potential new client, send that person an InMail message asking if you can help.

Step 3: Cultivate new referral sources.

  • Find LinkedIn groups that match up with your practice area and join them. Participating in these groups helps drive traffic to your LinkedIn profile page.

  • Showcase your expertise by starting your own LinkedIn group and inviting your connections to join.

  • Post blogs, articles, firm announcements, press releases, videos on your profile page and in your groups.

  • Examine your client’s networks to see if there are any potential prospects you’d like to be introduced to and then ask your current or former client if they would be a referral source for you.

Once you get the hang of how things work on LinkedIn — and how easy it is to connect — you will find that it is ripe for networking successfully. And you don’t even have to leave home or the office to do it!

This post was written by Stephen Fairley of The Rainmaker Institute, All Rights Reserved ©
For more legal analysis, go to The National Law Review

5 Business Communication Etiquette Pet Peeves

I frequently work with my children to help them understand the importance of good table manners – elbows off the table, how to set a table, which fork to use, how to hold a fork and knife (and properly use them), which glass to drink from, and to never chew with their mouths open. Let’s just say it is a work in progress.

While these lessons seem obvious, you would be surprised how frequently we get requests for etiquette training for lawyers. But it’s a fact that how we present ourselves has a significant impact on our brand. If you are seated next to a lawyer who slurps his soup, uses the wrong fork and drinks from your water glass, how likely are you to hire him?

Like our table manners, our communication etiquette sometimes needs attention, too. After all, good relationships begin with good communication. As a communications professional, here are my five biggest communication pet peeves:

  1. Email Signatures: It is a best practice to include your telephone number in your email signature, even on the reply. In this day and age, a majority of our business is conducted without ever hearing someone’s voice. Sometimes, though, actually talking is the best way to communicate, and it is terribly frustrating to have to go digging through old emails, files and even paper notebooks to find a phone number.

If your law firm doesn’t already have a standard email signature protocol, now is the time to institute it. Use it as a way to market your law firm, being mindful not to overwhelm readers with too many ways to reach you. If you are including a graphic, make sure recipients can view it on a mobile device and that it does not make an email too large to open. Your clients will thank you!

  1. Grammar & Spelling: They’re/their, who’s/whose, you’re/your, it’s/its. Learn it, live it, love it. Sure, we all can make mistakes when using our smartphones and blame them on autocorrect, but there are some basic grammar rules that we as legal industry professionals should know.

In addition, try to tighten up your sentences. For example, “I thought I would connect with Jane to discuss,” can be rewritten as “I am going to call Jane to discuss,” or “Jane and I are going to discuss.” To put it concisely, be direct.

And take the time to ensure that you do not have any spelling errors. Readers will automatically assume the worst of you – and your intellect – if you misspell words. Spellcheck is not always accurate, so proofread your work. If you are not a great proofreader yourself, enlist the help of a colleague or a professional proofreader before you send documents to clients. With emails, take a few extra seconds before clicking send.

  1. Limit the Word “Just”: In the spirit of being direct, I want to share my dislike of the word “just.” Improper use of the word often weakens what you are communicating and implies an unspoken apology. I am certainly guilty of using it and am consciously trying to eliminate it from my vocabulary. For example, “I am just following up” suggests that I am sorry to bother you but have something that I think is important to say. “I just have to say” implies that what you have to say is somehow a side note.

Try eliminating the word “just” when you are asking someone to do something for you as well. “Can you just…” minimizes a person’s contributions. Count how many times you use the word “just” in a day, and see if eliminating it helps you become a stronger communicator.

  1. “At Your Earliest Convenience”: Be careful with this term because, when used the wrong way, it makes you seem lazy and unengaged. It is perfectly fine to ask someone to respond at their earliest convenience, but how do you feel when I tell you that I will call you back at my earliest convenience? Probably like I will get to you after I drink my coffee and check social media. For most law firm marketers, your “clients” are the attorneys in your firm. They are your most important asset. Make them feel that way, and avoid telling them that you will do something when it is convenient for you. Try “as soon as possible” instead. It feels much better!

  2. Emphasize Sparingly: When I receive an email that is filled with bold, underlined and all-caps words, I FEEL LIKE I AM BEING YELLED AT and that whatever isn’t emphasized probably isn’t important! Think about what you are emphasizing. Is it really crucial? As a general rule of thumb, focus on headers and deadlines to make sure that all of the content of your email is properly read and understood. Then think about using the signature at the bottom of the email to give the person a way to call to confirm.

All of the ways we present ourselves and communicate – both directly and indirectly – impact our personal brands. Making yourself available and easy to communicate with will boost your personal brand, make people feel good about doing business with you, and hopefully drive more business.

This post was written by Stephanie Kantor Holtzman of Jaffe Associates.,© Copyright 2008-2017
For more legal analysis, go to The National Law Review

To IT or Not to IT: Why Your Firm Needs to Hire a Legal IT Consultant

Legal IT ConsultantWhether ’tis nobler in the mind to suffer through all the bad things luck throws at you, or to take arms against all those things that trouble you by putting an end to them? Yes, I am being a bit pretentious. But, Shakespeare’s words are relevant here. How do you deal with the day-to-day challenges of running your firm? Should you put up with it or do something about it? Simply put, if you want your firm to grow you have to take action. A legal IT consultant can help solo and small firms put an end to the challenges that are keeping them from being competitive with larger firms.

Why You Are Hesitating, Hamlet?

I have already argued in an earlier article that solo and small firms must embrace new technology in order to stay competitive. Nevertheless, I understand even a tech-savvy lawyer’s time is better spent being a lawyer than updating a website. Moreover, it does not matter if you have the latest software if no one can use it properly. So, who is going to train your employees to use the shiny and new technology? Set up, implantation, and training is a major time-killer. Add to this every other challenge that comes with running a firm.

The goal is to get lawyers back to practicing the law. This cannot be done without directly tackling the things draining your time. The fact is, technology can and will make your life easier and save you time. A legal IT consultant will use their ability to take some of the weight off your shoulders. Let them handle all your technology needs, therefore you can get back to your clients.

Bring an Objective Eye

I get it, Hamlet. Your firm is your baby. You have invested a lot of time and money in it. You want your firm to succeed, so it is hard to trust someone else with it. But, this is exactly what makes an IT consultant so beneficial. Sometimes, you are too close to something to see it objectively. An IT consultant is a neutral party. Vital changes will be made by someone who is objective. IT consultants are not yes men or untrustworthy. You can trust them to give you their fair thoughts on how to improve your firm.

You may already be using technology like case management software. However, one of the most common ways you waste billable hours is with bad software. You may choose your current software because a sales rep gives you a good pitch. It is difficult to realize why your current software is not saving you time without testing each one yourself. This trial-and-error process is just too time-consuming.

An IT consultant is not a salesperson. You can trust that they will recommend the best case management software for your needs. An IT consultant will learn what you and your staff need out of the software. They can assess which software meets those needs and ask the right questions to a salesperson. This process could take you weeks to complete on your own. Your consultant will handle the grunt work. You do not need to divide your time between cases and trial software.

Save Time and Money

Training is also not an issue. Lawyers tend to stick with bad software because it is inconvenient to train themselves and their staff in the software. The consultant will choose software that is the easiest to use and direct training themselves. Again, this is another task you do not have to deal with. You also save time spent on training, getting schedules in order, and implementing the new software. Overall, this is a much less stressful process for you and your staff.

IT challenges do not end after you install all the fancy hardware/software. We can look forward to AI solving this problem for us one day, but not yet.  IT consultants stick with you until the needed changes are complete. IT consultants do not just make suggestions and leave the rest to you. An IT consultant will develop a long-term strategy and work with you on how/when to best to make changes. There is no need to ask a ghost for advice. You can rely on regular updates from the consultant to make sure they are meeting goals.

Therefore, the most important part of an IT consultant’s job becomes to reclaim your billable hours and personal time. You have a dedicated professional handling all IT issues and implantation of new technology for you. Your firm can only grow if you are doing your job and helping your clients. The IT consultant eliminates the extra work that is important for growing your firm, but distracts from your billable hours.

Moreover, as you begin to add more technology you will also have to keep up with updates and changes. This is a difficult task even for fresh-faced lawyers. Technology is simply advancing too quickly to consistently stay up-to-date. Very few lawyers can dedicate the necessary time to keep up with all the changes, work with their clients, run their firm, and complete other tasks.

The IT consultant’s job is to keep up with the pace of change and trends. They will update your firm and guide you and your employees through those changes. Likewise, the shiniest, newest technology is seductive. IT consultants know what will work best for your firm. They will recommend only the technology your firm needs. You can rest assured that money is not being wasted on useless tech. The consultant will give you a detailed explanation on how/why the recommended changes will meet your firm’s needs.

Meet Goals with Less Stress       

One of the biggest challenges to meeting goals are employees. You can trust your employees to do the jobs you hired them to do. Employees, however, hate to have new tasks added to their workflow if they need to learn new skills. Employees are resentful of having to do a task they have little experience with or knowledge of. This creates extra stress on them and slows down the progress of their work. You cannot blame them for this. IT consultants realize it is a lot to ask of employees to add more duties to their plate.

An IT consultant will use their knowledge and resources to help your employees as well. The consultant does not simply train employees to use new technology. They serve as a guide and teach skills. The IT consultant will come up with a plan for helping employees adapt to their new tasks. This is especially helpful considering how multigenerational firms are becoming. Some employees will adapt quicker to their new tasks. The consultant will create specific schedules and strategies for these employees. Once the employees understand the changes, they will feel less resentful of the new work. This relieves stress and work gets started sooner. Thus, the IT consultant saves time and money in the short and long run.

There is no excuse not to take action. You should hire a legal IT consultant because they will help you grow your firm. Take your rightful place as king of all firms. The rest is silence.

ARTICLE BY Eddy Bermudez of PracticePanther

© Copyright 2017 PracticePanther

Strategic Planning in Law Firms: Essential Steps for Success

Law firms doing the “same old thing” isn’t going to work anymore. Despite all the legal industry changes discussed in Part 1 and Part 2 of this series, 66% of Managing Partners report that their law firm’s strategy has not changed.  It is imperative for today’s law firms to have a strategic plan that evolves with the firm and changes in the market; however, only 24% of law firms report having strategic plans, even though 71% of Managing Partners report that having a strategic plan improved their firm’s performance.

Strategic PlanningWhat makes a strong strategic plan?

Successful strategic planning is an ongoing process; the first step is creating the plan, but just as crucial is the follow-up. Steps include:

  • Implementation
  • Review
  • Making changes as needed (and things can change fast)

When drafting a strategic plan, it’s important to think about the process–and to incorporate measurable capabilities.  The tenets of good goal setting should apply–keep things simple, realistic, and achievable, looking ahead three to five years with annual goals.  As you create the plan, build it with the knowledge that it is a living document that must change, because the world is changing.  It should function as a sort of guiding principal, and it reminds your firm of your priorities when crisis situations arise.

Chart, Data

With rapidly changing technology, crises and unexpected opportunities, keeping in mind your strategic objectives is a good way to keep your firm focused on your priorities.  When surveyed, Managing Partners indicated the most important strategic objectives were Marketing and Business Development, Succession Planning, Firm Growth and improved lawyer productivity.

Where should a law firm allocate Marketing and Business Development resources?

With Marketing and Business Development as one of the most important pieces of the strategic plan; it’s important to describe what a solid strategy looks like.  For many firms, marketing and business development is not a top priority–it should be.  The research for Re-Envisioning focused questions on trends in allocating marketing resources in the following seven areas:

  • Website and Internet Marketing
  • Firm Events & Seminars
  • Organizational Involvement
  • Charitable Contributions
  • Rankings and Directories
  • Marketing Staff
  • Lawyer Sales Training

When asked about 2015 investments v. 2016 investments, it was clear that most firms are continuing to do what they have done before.  According to Re-Envisioning, “firms are doing the same old things because ‘we’ve always done it this way,’ budgets are set by equity partners unwilling to support marketing expenses, or there is a ‘let’s wait and see what the other firms are doing’ attitude.”  Investing in Marketing & Business Development can pay off in a big way, but of the firms surveyed, only 25% of them invested more than 4% of their revenue in Marketing  & Business Development.   To successfully move forward, law firms need to change their perspective and to truly innovate in terms of their Marketing and Business Development practices.

A good place to start is with the clients your firm already has–and wants to keep.  Break them into A list, B list and C list–so you can identify who may be happier working with a competitor, and who you want to make sure stays with your firm.

What should a law firm consider when developing a business development model?

Beyond an inventory of current clients, it’s important to develop a BD model–representing how your firm views business development and how it works for your firm’s situation.  Your model should answer the following questions:

  • Why do people buy?
  • How do they buy?
  • What are prospects and clients motivations and fears?
  • What is the process for finding prospects and transitioning them into clients?
  • Where does business come from?
  • How does your business development efforts focus on building relationships?
  • How does your firm become a trusted advisor to your clients and community?
  • What differentiates your firm and your lawyers, and how do those differences align with your clients’ needs?

Asking questions like this can help your firm ensure that your marketing and business development resources are going in the right direction–and can help your firm create a deliberate way forward, with an integrated approach to ensure goals are met and resources are not squandered.  Additionally, creating a plan with measurable tenets can help your firm track return on investment so it’s clear what’s working and where additional investment might be warranted.

How does a law firm achieve buy-in for the marketing and business development plan?

Another area to consider is asking individuals in the firm–partners and associates– to create a personal business development plan.  By asking individuals to think about marketing and business development, your firm is demonstrating its commitment to these principals.  Additionally, asking partners and associates to think about how they can best contribute to business development encourages accountability and personal reflection, so individuals can find a way to contribute that is best for them, increasing the likelihood that the commitment will be lasting.

These changes may be around the corner, many law firms are incorporating them already.  Brent Turner, Client Development–Peer Monitor & Thought Leadership at Thomson Reuters, comments, “For the first time in many years, we’re seeing healthy acceleration in the marketing and business development budgets of US Law Firms, let primarily by AMLAW 200 firms.  We’re also seeing evidence that these investments are starting to pay off in a big way.” Terry Isner Jaffe PR Law firm business development

 

 

ARTICLE BY Eilene Spear & Jennifer Schaller of The National Law Review / The National Law Forum LLC

Copyright ©2017 National Law Forum, LLC

What It Takes to Make It Rain: Rainmakers Now, and Rainmakers of the Future

rainmakerIn the rapidly changing legal industry, it is no surprise that broad conceptions of what it means to be a rainmaker are also evolving. Dr. Heidi Gardner, Lecturer and Distinguished Fellow at the Center on the Legal Profession at Harvard Law School, has been conducting research over the past decade on collaboration in law firms. Her findings have also revealed insights into rainmakers: what makes them successful, how their roles changed over time, and how the next generation of rainmakers can be primed to succeed. She will be presenting her findings on the myths and realities of rainmakers at the Thomson Reuters 24th Annual Marketing Partner Forum.

Successful Rainmakers: Extroverts, Introverts, and Cultural Understanding

A common discussion regarding rainmakers, and leadership in general, is whether they are born or made. Based on her decades long research, Dr. Gardner’s answer to whether rainmakers are born is a resounding no. What makes someone a successful rainmaker is their ability to exhibit other sides of their personality, or other strengths and traits, depending on their audience. Rainmakers are typically discussed as being highly extroverted—charismatic, forceful, possessing great salesmanship skills. However, these traits themselves don’t make rainmakers successful, but rather it is their enormous ability to connect with whomever the buyer of their services. Because buyers are not a homogeneous group, most successful rainmakers are able to adjust or adapt their style appropriately.

Introverts are therefore not precluded from being successful because of their commonly thought of as “quiet nature”. In fact, introverts may make better rainmakers in some regard. Dr. Gardner points out that introverts tend not to think out loud and consider what they’re going to say before they say it. They often take time to reflect and appropriately listen to the person that is sitting across the table. This makes introverts very adept at identifying the buyer’s underlying issues and thinking through what it takes to connect the dots inside their firm to help clients solve complex issues. Dr. Gardner also points out that “Many buyers of legal services are also introverts, and they will appreciate someone who has similar a demeanor—not salesy or pushy.” Great rainmakers who are introverts are chameleons. It likely takes more energy for them to be outgoing and interact with strangers in a bigger setting, but they will have developed the capacity to be gregarious enough to make those connections.

Successful rainmakers have a foundation of being highly empathetic and have a strong motivation and interest in understanding other clients—it’s part of what makes them so successful. Dr. Gardner posits these skills are the “basic building blocks for being able to communicate across cultures” and make rainmakers more equipped to be successful with buyers from other countries. What’s required is an additional measure of cultural intelligence; successful rainmakers take part in and study the behavioral mimicry of their buyers in addition to having an appreciation for why different people approach different problems from different perspectives in general.

Evolution of Rainmaker: Toward Collaboration

During the course of Dr. Gardner’s research, she has discovered an interesting trend, or rather non-trend, in the legal industry: the rainmakers at law firms are largely the same people. During the past ten to twelve years, firms have moved away from mandatory retirement. Partners are staying longer than ever, so the rainmakers at firms now are the same ones from a decade past.

There is a new generation of rainmakers coming in now, but there is a lot of frustration in the profession regarding the structure and effectiveness of succession planning (which will be discussed further below). Despite the fact that the legal industry is currently dealing with the same cast of characters, one profound change Dr. Gardner has observed in the last decade involves a simultaneous broadening and narrowing of the role of the rainmaker.

According to Dr. Gardner, “clients increasingly expect a level of industry expertise” that requires attorneys to identify their practices with more specificity than ever. An attorney can no longer be an “environmental attorney”, but must become “an environmental attorney with a focus on extractive industries”, or an “intellectual property lawyer” must be an “IP attorney who specializes in the patent prosecution of computer hardware”. However, because clients’ problems are becoming increasingly complex, rainmakers are less able to be seen as the single go-to person for a particular client who puts together a team of experts in a single discipline, but rather as needing pull together teams of multidiscipline experts. So along with the narrowing of the rainmaker’s own field of expertise, successful rainmakers are broadening their ability to pull together diverse teams to tackle their client’s problems. The rainmaker is the conductor; as Dr. Gardner states: “The client counts on them to be a broker to all of the kind of experts that exist within the firm.”

In order to be successful going forward, rainmakers of the future need to be more collaborative as far as seeking out complementary experts to serve clients. A common obstacle that prevents rainmakers from being successful in this is the reliance on bringing in the “obvious suspects” as a matter of prestige in front of the client. But when called upon to do work on the case, these attorneys are nowhere to be found. Dr. Gardner believes that a key to building a successful team will be to find the hidden gems at the law firm—rainmakers should seek out attorneys who are hungry for client service opportunities. She acknowledges that doing this can be a risky. It’s easier to put someone in front of your client who has an existing reputation as a guru in their sector, but their value to the process is limited if their participation is not complete.

People who are truly intent on becoming successful rainmakers should be investing the time and the energy on others who are not necessarily thought of as the “obvious suspects”. They must access the deeper well of talent that exists and bringing them through the system so that they become committed, loyal, deeply engaged attorneys who are serving the client. To continue to be successful, rainmakers will need to take the risks and bring different kinds of people on board; as Dr. Gardner stated “The legal industry is too fragile to rely on just small pool of experts.”

Rainmakers – The Next Generation

As stated previously, Dr. Gardner has found that effective succession planning in law firms has been found wanting. Even though this generation of rainmakers has been around longer than ever, it is critical for the continuing success of firms to take a hard look at bringing up the new generation of rainmakers on deck. The most effect way to begin doing this is through mentorship. Dr. Gardner states, “People need to accept responsibility for developing a pipeline of talent.” She experienced some of the effective mentoring while she was working as a consultant at McKinsey’s Johannesburg office. She worked under a partner that would take her to all the important meetings, where she wasn’t expected to participate, but allowed to observe. During her time under the tutelage of this partner at McKinsey, she learned a tremendous amount about the ins and outs of client handling. Today’s rainmakers need to make those types of investments in people that will eventually come after them.

Up-and-comers also need to be willing to take responsibility for the trajectory of their career. Too often, Dr. Gardner has encountered partners who have tried to give junior partners or associates the opportunity to participate in learning experiences, who are asked “Can I bill the time?” This is the incorrect mindset to have on the road to becoming a successful rainmaker. Dr. Gardner elaborates: “If you’re trying become a successful rainmaker, you have to invest some non-billable time in your own development as well.” Both the willingness of existing rainmakers to mentor and the tenacity of of rising rainmakers will be what dictates the success of the next generation of rainmakers.

Learn more about the Thomson Reuters Legal Executive Institute Marketing Partner Forum here.

ARTICLE BY Nicole Cudiamat Minnis of The National Law Review / The National Law Forum LLC

Copyright © 2017 National Law Forum, LLC

Innovation, Change and Accountability: A Way Forward for Law Firm Leadership

Law firms across the country are facing a crisis in leadership, but many of them don’t know it yet.  Despite all the challenges discussed in Part 1 of this series, many law firms, especially small and mid-sized firms,  are not changing their strategies, in fact, they keep on doing the same old things.

law firm leadership and governance

Many law firms are structured where decisions are made based on consensus, and the Managing Partner is tasked with conducting the orchestra–managing the processes, focusing on firm administration and the tasks the firm is working on.  Even though this decision and execution process is clunky, no one seems to be leaving it behind.  According to Re-Envisioning, “Most MPs enjoy the positive aspects of the MP role, but many don’t seem to want accountability or to be responsible for holding others accountable for getting results.”  Tough conversations are not had, problems are not addressed, and necessary changes are not being made because Managing Partners are not empowered to focus on the right things.  David Maister, author of True Professionalism, says, “What worries me most is not that today’s law firm leaders are often imperfect in fulfilling the role, but rather than many of them aren’t even aiming at it.”

law firm leadersHow can law firms change their leadership structure to be more like a business?

As we discussed in Part 1, one of the major recommendations of Re-Envisioning is changing the Managing Partner to a CEO, in name and in function.  This requires the MP to act more as a CEO–focusing on having tough conversations to ensure client service is provided at the highest level, and that results and profits are being made.  One suggestion is that the MP/CEO have a formal job description.  Of the MPs surveyed for Re-Envisioning, 53% indicated that they did not have a formal job description, and an additional 20% indicated that one existed, but that it was not closely followed.  In fact, only 19% of respondents indicated that they had a written job description and that it was followed, and of those 19%, 93% said that they liked having a job description–that it gave them something to “focus on.”  Armed with a title change and a job description, CEO’s are better equipped to move the firm forward in the direction it needs to go.

Other changes that can help re-shape the firm’s culture can be achieved through the Executive Committee.  Hiring a Chief Operating Officer and giving him or her a strong voice on the leadership team can help the firm keep eyes on the prize.  Additionally, Re-Envisioning suggests morphing the Executive committee so “it functions like a CEO’s senior leadership team.”

To function like a leadership team the executive committee needs to do the following:

  1. Oversee firm-wide strategic priorities
  2. Members would be elected for terms by owners on a staggered basis
  3. But with no term limits for committee members.  If someone is doing a good job in a position, you want them to keep doing a good job in that position.law firm managers managing partner

What kind of firm culture should the executive committee strive for?

Innovation, Change and Accountability are things the Executive Committee should promote in the firm.  The new culture of legal services demands creative thinking, an ability to adapt to shifting circumstances, and a willingness to hold everyone accountable for achieving results.  But what does that mean in practice? Innovation as a value will reward creativity and taking risks to find better ways to accomplish things–and looks at everything, all processes and asks “why do we do it this way?” and most importantly, makes changes as needed.  With Change, the firm and its leaders are open to new ideas, conflicting opinions and constructive feedback, always looking for better solutions and embracing changes that improve results and profitability.

Finally, accountability means the CEO:

  1. Holds himself or herself to high standards and achieving results
  2. Communicates expectations of executive committee members, stakeholders/owners and members of the firm
  3. Identifies the need for change and makes adjustments when necessary
  4. Quickly and firmly addresses problematic partners and underperformers
  5. Build trust in order to enact changes
  6. Emphasize clients first, firm second, individuals third as a guiding principle
  7. Expect others to follow his or her lead and hold others accountable for achieving results and performing at a high level

It’s clear that there is plenty of work to do in law firm leadership.  To achieve the objectives of re-orienting law firm leadership to a CEO structure, and to encourage the adoption of innovation, change and accountability as firm-wide principles, law firm leadership needs to set priorities. The survey results that Re-Envisioning was based on indicate that the top 3 contributions that leaders should focus on were Strategic objectives, being a Change agent, and making the tough decisions and holding people accountable.  These objectives can help law firm leaders make the changes in their firms that need to be made.

These recommendations may seem daunting, or a huge disruption of firm life, however, they are the changes the new industry demands.  Terry Isner, President of Marketing and Business Development at Jaffe says, “Law firm leadership isn’t about boots on the ground anymore–it’s a 10,000 foot perspective with 360-degree views of the firm, its clients and the industry as a whole at all times.  It’s being able to adapt to change quickly and making hard choices that will inspire and empower greatness.”

 law firm leaders

This is NLR’s second article on the report  Re-Envisioning the Law FIrm: How to Lead Change and Thrive in the Future  developed by the Managing Partner Forum, Jaffe, and The Remsen Group and released on December 8th.  You can read the first article here.

ARTICLE BY Eilene Spear & Jennifer Schaller of The National Law Review / The National Law Forum LLC

January 25-27: 24th Annual Marketing Partner Forum – Client Collaboration & the New Rules of Engagement

In January 2017, Marketing Partner Forum returns to Terranea Resort in Rancho Palos Verdes, CA for a three day summit on law firm marketing and business development set against the breathtaking Southern California shoreline. Marketing Partner Forum will welcome law firm marketing partners, rainmakers, practice group heads, business development leaders and esteemed corporate counsel for a dynamic and vibrant conference designed for the industry’s most experienced professionals.

Call to register: 1-800-308-1700

Or click here to email and we will contact you.

For more information, click here.

Terranea Palos Ranchos Verdes Marketing Partner ForumWhy You Should Attend

Marketing Partner Forum is designed for client development partners, rainmakers, and the senior-most legal marketing and business development professionals across the legal industry. Our content reflects the experience and sophistication of our international audience in terms of rigor, ambition and scope. Attendees can expect to hear from venerable thought leaders both within and outside of the legal industry. Enjoy ample networking opportunities and the stunning scenery, golf course, spa and hiking trails at one of California’s most picturesque resorts. Take advantage of our brand new Marketing Partner Conference Track consisting of several compelling sessions designed specifically for the law firm partnership. Interact directly with senior clients and network for new business. Explore the brand new Marketing Partner Forum Technology Fair. Bring your family to our Thursday night reception and Friday Bloody Mary Brunch. Depart the event with practical takeaways to share with peers and firm leadership.

Time for a Change in Law Firm Leadership: A Preview of Re-Envisioning the Law Firm

Too many lawyers.  More demanding Clients. Globalization  Industry Consolidation.  These are all factors redefining the legal industry.  Re-Envisioning the Law Firm: How to Lead Change and Thrive in the Future (Re-Envisioning) a report developed by the Managing Partner Forum (MPF), Jaffe, and The Remsen Group released on December 8th offers insight into how law firms can do exactly that.

MPF Insights Executive Summary Law Firm Leadership

​John Remsen, President and CEO of the Managing Partner Forum says, “The pace of change is unprecedented for the legal industry, and the pace will only accelerate into the future.  Strong leadership and a solid game plan are required if your firm seeks to thrive and prosper in the years ahead.”  Understanding that many law firms need to make big changes, and with the goal of offering insight to law firms looking to make those changes, the authors of Re-Envisioning analyzed data from two big surveys of Managing Partners to come up with recommendations.

How the data was collected and who participated in the surveys?

The first survey used in the Re-Envisioning report was the MPF Leadership & Governance Survey from April 2016 which asked over 145 managing partners anonymous online questions.  The questions covered law firm leadership and governance, including whether or not the Managing Partner had a job description, how he or she would describe the governance model of the firm, and whether he or she were currently grooming a successor.[i]

The second source of data was live MPF Audience Polling Results. This survey was conducted in real time with the 80 plus Managing Partners who attended the MPF Leadership Conference in May of 2016. Using audience polling technology, participants were able to answer questions instantaneously and confidentiality on a variety of subjects, including “Compared to five years ago, what is the likelihood that your best lawyers may leave the firm?” and “Is your firm providing marketing and business development training for its junior partners and associates?” The data from the surveys, combined with interviews with innovative thought leaders and influential Managing Partners are also incorporated into the reports recommendations.[ii]

Why are the changes that have been impacting BigLaw now impacting MidLaw and SmallLaw?

The MPF Report goes into more detail, but just like the other industries the legal profession needs to work smarter, faces global competition and needs to respond to the demands of an evolving workforce.  The factors that hit BigLaw over the head with a hammer a few years back are now industry-wide. Specifically:

Globalization – Technology is making the world smaller each day. Now even the smallest business law clients have international concerns.

Too Many Lawyers – Although the number of law school graduates has been dropping, technology is making law practice more efficient and older lawyers are putting off retirement. The U.S. currently has 1.3 million lawyers!

Smarter, Faster, Better – Clients want better service, more customized solutions and better value for their investment.

New Market Entrants – Technology!!!!  Think LegalZoom, AVVO, Rocket Lawyer. More routine legal work is becoming commoditized.

Industry Consolidation – The Consolidation Curve -ask an MBA. Fragmented and siloed industries consolidate as they mature.  Just like other industries, technology and economies of scale are breaking down the traditional legal market which encouraged highly regionalized and /or non collaborative legal practices.  Law firm mergers and lateral movement is at an all-time high.

Workforce Changes – Baby Boomers hanging on.  Gen x and Y and Millennials with differing career goals and work styles.

The recommendations in the report incorporate three main themes:

  1. The law firm must be run like a business (not more like a business, but like a business.)
  2. The Managing Partner must take ownership of leading the effort, and
  3. Firm owners must take responsibility for embracing, engaging, and implementing the necessary changes for operating like a business.

These themes are spread across seven areas detailed in the report; including:

    • Leadership & Governance,
    • Strategic Planning,
    • Marketing and Business Development,
    • Problematic Partners, Succession Planning,
    • Recruiting,
    • Retention,
    • and Technology.

In upcoming segments we will discuss above seven areas of concern and the survey’s recommendations designed to help small and midsize law firm move into the future.

The idea of running a law firm like a business translates into re-evaluating the leadership structure of law firms.  One of the first recommendations made in the report is to change the Managing Partner into a CEO in name and function, empowering him or her with the power to lead the organization without necessarily achieving consensus.  The report observes, “While governing by democracy might theoretically sound appealing, especially because it spreads the blame should a strategy not succeed as planned, choosing to consensus build over decision-making delays and waters down change.”  Consolidating leadership with a Managing Partner who functions more as a CEO is a step that will allow law firms to make changes in other areas much faster.

The survey also suggests strategies for working with “problematic partners,” defining the problem as partners who under perform or who exhibit bad behavior that reflects poorly on the firm–anger management issues, poor representation of the firm, rudeness and arrogance. Problematic partners can be an incredibly difficult issue to confront, especially when the issue is under performance, but the report offers suggestions and strategies for tackling these thorny issues.

​Above all, the survey insists law firms must confront them.  Louise Wells, Managing Partner of Morris, Manning & Mann, says, “The culture of your firm can be influenced by what it’s willing or not willing to tolerate.  If you’re willing to put up with chronic under performance, you most certainly will get it, and that’s not good for a firm’s long-term success or its morale.  Dealing with underperforming partners is incredibly difficult, yet so important, for a managing partner to address.”

That is just the beginning of some of the dynamic thinking presented in Re-Envisioning the Law Firm.  In the coming weeks a NLR series will preview additional insights offered in the survey from other areas of law firm leadership.

ARTICLE BY Jennifer Schaller & Eilene Spear of The National Law Review / The National Law Forum LLC
Copyright ©2016 National Law Forum, LLC

​[i] The breakdown of the number of lawyers per firm as well as the job title of survey respondents of the first survey are illustrated below:   ​​

MPF surveyMPF Insights

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[ii] You can see a breakdown of the number of lawyers at the respondent’s firm and the number of years in the position below:

​​MPF surveyMPF Survey

Law Firm Holiday Cards – Do’s and Don’ts

Q: Are holiday cards effective?

A:  I think that they can be considered one more nice way to stay in touch, to send a friendly communication to a large number of clients and prospects all at once.  Of course, I said that they can be effective, not that they typically are.

Holiday cards pose complex issues of database management and client ownership, combined with the logistical questions of who signs which card(s).  Through hard work and discipline, these are mightily overcome — only to become one of a dozen bland, look-alike cards depicting politically correct images like pine trees, ice skaters, snow-covered skylines, ambiguously decorated snow men, or handicapped children’s artwork — which are then sent to dead former clients.

All in the name of strengthening client relationships?

Superhero, CardDone well, the cards should reinforce your firm’s unique brand message, or at least stand out somehow, so they don’t get immediately discarded and forgotten.

When I was the marketing partner of a law firm, it wasn’t unusual for me to get as many as 25 generic holiday cards per day from vendors all wanting our business.

Glance, toss, forget.

Glance, toss, forget.

Glance, toss, forget.

It helps if you have a strong brand message to use, or at least an interesting design to leverage. 

For example, a number of years ago we used an olive-based branding theme for Florida’s Bryant Miller Olive law firm.  Here’s the cover of their olive-themed holiday card:

Holiday Card

The point is — the card represents your firm and your practice.

Don’t rub clients’ noses in your firm’s lack of creativity by doing the same thing as everyone else.  Find some way to do something different. Those that avoid the spam filters don’t generally create much goodwill.

On rare occasion, extra creativity causes one to stand above the pack and get a notice or a smile.

For example, Phoenix’s Engelman Berger law firm always goes the extra mile.

Baseball Card, LawyerEvery year they try something new, including lawyer baseball cards, comic books, TV Guides, and parodies of board games like Clue and Scrabble, Mad magazine, and a children’s book, “Are You My Lawyer?”

Finally, while I know this whole rant is making me sound like Scrooge, I’ve never been a big fan of cards that promise:

“In lieu of a personal gift to you, we’re making a donation

in your name to the following charity(ies).”

In my actual name?

Did they ask me whether I’d prefer receiving the gift?  Or at least help select the charity? Do I get a tax deduction on that money?  And because they never tell you how much they’re donating, everyone I’ve quizzed about this assumes that they’ve taken this approach because it was cheaper and easier.  (And generally, from my experience, they’re right.)

At least that’s how I see it.

Season’s greetings.

ARTICLE BY Ross Fishman of Fishman Marketing, Inc.
© 2016 Fishman Marketing