Tag: Law Offce Management

What Is the CARES Act and How Can It Help Legal Professionals?

On March 27, Congress passed the 2020 Coronavirus Aid, Relief, and Economic Security Act (CARES) to mitigate the negative economic impact of COVID-19. The CARES Act provides small businesses and individuals with extended unemployment insurance benefits, loans for paycheck protection, refundable tax credit, and business tax provisions. Attorneys who own their own practice can take advantage of the 2020 CARES Act to protect their business and employees during the economic downturn brought on by COVID-19.

How the CARES Act Applies to Lawyers

The CARES Act could alleviate the negative economic impact of COVID-19 on your law firm while the entire world waits for what’s next.

The CARES Act helps law practices with:

  • Paycheck protection program (PPP): completely forgivable loan to cover payroll costs
  • Employee retention credit
  • 2020 Payroll tax deferment
  • Economic injury disaster loan emergency advance (EIDL)

Paycheck Protection Program (PPP) for Attorneys, Legal Administrators, and Staff

For more detail, please refer to the PPP FAQs published by the Treasury Department on Wednesday, April 8, 2020.

Coverage for Payroll Costs

  • Salary, wages, commissions, or tips
  • Employee benefits including costs for vacation, parental, family, medical, or sick leave
  • Allowance for separation or dismissal
  • Payments required for the provisions of group health care benefits including insurance premiums
  • Retirement benefits
  • State and local taxes assessed on compensation

For more detail, please refer to the Tax Foundation’s summary of the SBA Paycheck Protection Program in the CARES Act.

Coverage for Sole Proprietor or Independent Contractor

  • Wages, commissions, income or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee
  • Extends duration of benefits from 26 weeks (available in most states) to 39 weeks
  • Provides an additional $600 per week in benefits for first four months

For more detail, please refer to the summary from the law firm Rudman Winchell.

Paycheck Protection Program (PPP) Loan Forgiveness

Applications are already in play. While there is a lot of money available, it is not unlimited. Apply as quickly as possible.

  • You use the money strictly for allowed expenses
  • 75% of the loan amount is spent on payroll costs
  • You maintain your entire full-time staff until June 30
  • Rehire fired or laid-off employees quickly
  • Caps payment at $100,000 per person
  • You do not cut employees wages more than 25% for any employee who made less than $100,000 in 2019
  • For whatever amount is not covered, PPP loans have a 1% interest rate and payments are deferred six months with interest during the deferment.  The loan must be fully repaid in two years.

For more detail, please refer to the Small Business Administration’s Docket No. SBA-2020-0015.

Employee Retention Credit

You may qualify for a refundable payroll tax credit for 50% of wages if:

  • your law practice was fully or partially suspended due to COVID-19 related shut-down orders.
  • you lost more than 50% in gross receipts compared to last year’s same-quarter performance.

Payroll Tax Deferment

To further lower expenses at your law firm, you may defer your share of payroll taxes and split the deferred payments over the next two years, with half due by Dec. 31, 2021, and the other half due by Dec. 31, 2022.

Economic Injury Disaster Loan Emergency Advance (EIDL)

If you are a sole proprietor, you may be eligible for a EIDL loan of up to $2 million, repayable over 30 years at 3.75% interest rates for small businesses and 2.75% for most private non-profits under the EIDL. Payments are deferred for the first year, but interest accrues during that time.

  • You’ll have to put up collateral for loans over $25,000 and a personal guarantee for loans exceeding $200,00.
  • If you qualify for an EIDL, you can use the money for any business expense (with a few exclusions).
  • Under the same provision, small business owners may be eligible for a one-time grant of up to $10,000 that you won’t have to pay back.

For more detail, please refer to the U.S. Small Business Administration’s “Economic Injury Disaster Loan Emergency Advance” overview page.

What Happens If You Enroll for PPP and EIDL?

If you decide to enroll for both the EIDL and PPP, the amount of the EIDL grant will be subtracted from the PPP amount eligible for forgiveness. In other words, you’ll ultimately wind up paying it back.

The 2020 CARES Act Can Help Your Law Firm

Law firms are uniquely poised to understand the full extent of the CARES Act and its protections. With the financial boost from the CARES Act, attorneys are more likely to retain talent and be ready to hit the ground running when court activity ramps up again.

CARES Act 2020 Resources

 

© Copyright 2020 PracticePanther
ARTICLE BY Reece Guida at PracticePanther.
For more on the CARES Act, see the National Law Review Coronavirus News section.

Supporting Diverse Attorneys: How Marketing Pros Can Become a Business Development Ally

The path to partnership, which many attorneys aspire to achieve, can be a long and challenging road. In order to get there, an attorney’s ability to generate new business is a critical component. The partnership track can be even more difficult for diverse attorneys, as this group tends to lag behind their counterparts in business development. It begs the question: Why do diverse attorneys face challenges in business development, and how can marketing and business development professionals better support their diverse attorneys?

During the Legal Marketing Association (LMA) Southwest Region Conference in September 2019, Tasneem Khokha and Holly Barocio from GrowthPlay, presented on how we can better understand and counsel diverse attorneys, and examined the main challenges these attorneys face in building and sustaining their book of business.

Some of the key challenges Tasneem and Holly discussed, include:

  • A lack of, or much smaller network of, potential business as compared to their counterparts.
  • Feelings of being labeled as the token diverse attorney to add to a pitch.
  • Feeling as though they lack a common ground with decision-makers because of different life experiences.
  • Feeling pressure to have to work harder in order to “prove” themselves.
  • Feeling uncomfortable asking for opportunities as compared to their counterparts.

So how can marketing and business development professionals help their attorneys navigate these concerns? It starts with listening and understanding. No one can make the experiences that diverse attorneys face disappear, but marketing professionals can help them turn these challenges into opportunities and set them up to handle future experiences with ease. It’s important to remember the underlying characteristics of great business development, which are:

  • Being an authentic relationship builder.
  • Having the ability to provide solutions to problems, even if you aren’t always rewarded for your efforts.
  • Avoiding pitfalls, such as rushing to sell too soon.

While some diverse attorneys may inherently have a smaller network, if they are armed with the skill set to build authentic relationships and provide solutions to problems, they will be viewed as someone others can trust – a key characteristic of someone who can build a strong book of business. As a marketing and business development professional, being able to authentically counsel diverse attorneys is invaluable. Here are some techniques:

  • Not having commonalities with decision-makers because of different life experiences is not a make or break situation. You can find commonalities in anything – love for sports? hobbies? pets? You’d be surprised the connections people can make if they listen and pay attention to the person they are talking to.
  • From a poll of the audience, some diverse attorneys may feel that being the token diverse attorney is a negative and does not allow them to be recognized for their skills and experience. Be candid and acknowledge the elephant in the room, but advise them to take the ball and run with it. Encourage them to open up about whether they like the work or prefer to do something different, but they must seize the opportunity.
  • Another common concern is that diverse attorneys are less inclined to ask for opportunities. For marketing professionals, be there to help connect the dots and nudge diverse attorneys to openly discuss what excites them and what they want more of. Diverse attorneys may feel siloed, but you can help connect them with others in the firm who can propel them further in their careers.

© 2020 Berbay Marketing & Public Relations

For more on legal business development, see the National Law Review Law Office Management section.

Three Messages Next-Generation Recruits Need to Hear from Law Firms

By sheer numbers, millennials make up the largest generational group at midsize and large law firms today. Within the past few years, the oldest members of that generation began reaching partnership, and soon they will take over leadership positions as well. But the transition hasn’t been easy. Law firms know they must adapt in big ways to recruit, motivate and retain these lawyers, while at the same time working to stay relevant to firm clients. After all, the majority of legal services buyers will soon be millennials too.

Firms understand what matters to these younger lawyers; meaningful work, equity and inclusion, and work-life balance are all factors that determine where they choose to build their careers.

Most firms are at least beginning to reimagine some of the ways they do business in order to accommodate the needs of this new generation of lawyers. But not all law leaders grasp the important role communication strategy should play in their efforts to modernize. You might be taking the right steps, but how are you talking about that work with your target audience?

Here are three messages your firm must express:

 “We have a plan to make our firm more diverse and inclusive.”

Millennial lawyers know that most firms have been talking about diversity and inclusion for years without making much progress on advancing women, people of color, LGBT lawyers and lawyers with disabilities. They want to work for a firm that goes beyond lip service to articulate a plan of action and ambitious benchmarks that will hold leadership accountable for leaving the country club culture behind. What does that look like?

  • Provide PR support for diverse attorneys to help them build their profiles and develop business. Deploy your communications resources strategically to shine a light on your firm’s future superstars.
  • Address pay equity and the need for change. Millennials value authenticity, and they interpret silence on issues like this as complicity with unfair practices.
  • Demystify networking. Business development training and participation in professional associations can help these lawyers build their business in ways that feel natural and effective.
  • Equalize access and opportunity. How do cases and matters get staffed at your firm? Do you have a method for fairly distributing work and making sure a wide swath of your attorneys get to take a crack at high-profile work?

“We want you to have a life outside work — really.”

Millennials are more skeptical of institutions than past generations, and that means they are pretty good at spotting empty promises. So in order to appeal to these lawyers, your firm will have to get beyond platitudes and commit to specific policies and initiatives that encourage and protect work-life balance. How can you convince them you mean it?

  • Embrace flexible scheduling. Firms that will not budge on schedules virtually guarantee that parents — and women more often than men — will be forced to make impossible choices between their children and their career.
  • Destigmatize parental leave. Men and women both risk being viewed as “out of the loop” or not sufficiently committed to the firm if they choose to take time off after their babies are born, and that can have real negative consequences for their careers. Hold up and celebrate cases of men in leadership who take parental leave. Make it the new norm.
  • Address mental health issues head on. By now we’re all familiar with the alarmingly high incidence of depression, substance abuse and suicide among attorneys. Millennial lawyers want to know firms are not sticking their heads in the sand when it comes to mental health.

“We want you to succeed.”

Enduring and succeeding in the survival-of-the-fittest law firm culture may have been a badge of honor for generations past, but not for millennial lawyers. This cohort values collaboration and fairness more than gaining a competitive edge on their peers, and forward-thinking firms will adopt new policies and practices that assure millennial lawyers the game is not rigged. How can you communicate your support to these associates and younger partners?

  • Make your billable hour expectations transparent. According to the Young Lawyer Editorial Board of the American Lawyer, associates just want their new firms to be straight with them about how many hours they are expected to bill. And they don’t mean the published hours requirement.
  • Take mentorship seriously and prepare young lawyers to take advantage of it. Mentorship programs succeed when firms devote time and resources to them, and when they make thoughtful decisions about which partners should participate. (Not everyone is cut out to be a mentor, and that’s okay.)
  • Consider a sponsorship model. Sponsors move beyond the traditional mentoring engagement to advocate for their protégé. This may mean expanding the perception of the kind of work the lawyer can take on, brokering connections with other partners or with clients, or advocating when it comes time to staff cases. A sponsor uses his or her power and access to ease the younger lawyer’s advancement, particularly if that younger lawyer is a woman or other minority in the firm.

Firms who get their messaging right — and implement policies and processes that back those messages up — will be well-positioned to recruit the best and brightest next-generation lawyers.

© 2020 Page2 Communications. All rights reserved.

For more on the law firm workforce, see the National Law Review Law Office Management page.

Law Firms and Bar Associations Must Plan Now for Coronavirus Outbreak

Our sources in Washington are indeed very worried about the coronavirus emerging from China. 

Many of our sources believe that containment will not work.

In the event of a major pandemic, “social distancing” will be enforced.  Schools, restaurants, movie theaters – and even law firms – will be closed, perhaps for an indefinite time, presenting unprecedented challenges.

At the very least, bar associations and law firms should begin thinking about logistics now using “peace time” wisely.

Viruses that originate in an animal and jump to a human can and often do change or mutate, presenting challenges to doctors and researchers. Especially during rapidly developing situations, reporters will likely demand simple and definitive answers, even in situations where simple and definitive answers don’t exist. As well, bloggers with political agendas may accidentally or purposely report fact as fiction and vice versa.

On the internet, anyone can be a “reporter” with the ability to publish immediately and without the safety net of editors, fact-checkers and other traditional media gatekeepers. Consider also the pressure on traditional media of balancing the need to report immediately vs. reporting accurately. Given those factors, the emerging coronavirus provides another fertile field for confusion with consequences.

The Spanish flu killed some 50 million to 100 million people worldwide over about a year in 1918-19 — one of the deadliest pandemics in human history. The 2003 severe acute respiratory syndrome (SARS) outbreak turned out to be less than a pandemic, but caused 774 deaths in 17 countries, according to the World Health Organization (WHO). The 2009 swine flu (H1N1) outbreak featured high rates of human- to-human transmission, yet was thought to have been less lethal than originally feared, with a minimum of 18,449 confirmed deaths. In fact, though, the U.S. Centers for Disease Control (CDC) has since estimated the global death toll at 284,000 — 15 times those confirmed cases.

All of these examples should serve as cautionary tales for how we approach and talk about this latest potential pandemic.

I reached out to Peter Sandman, perhaps the United States’ pre-eminent risk communication speaker and consultant. Here’s what Sandman told me in his email reply:

The key lesson here: The word “pandemic” means an infectious disease has spread to lots of people in lots of places. To be a pandemic, an outbreak has to be widespread and intense. It doesn’t have to be severe; 1918 was, 2009 wasn’t — at least in comparison.

This coronavirus? The experts are pretty sure it’s going to go pandemic. They don’t know yet how severe it will be, though many are guessing it will be closer to 2009 than to 1918. Even a mild pandemic kills a lot of people, simply because a small percentage of a huge number is a lot of people. And a mild pandemic can certainly be disruptive: hospital overcrowding, absenteeism, supply-chain problems, etc.

If it’s mild and stays mild, it won’t be catastrophic.

Whether it’s mild or severe, though, a pandemic eventually makes containment efforts futile, and therefore a waste of effort. Patient isolation, contact tracing and monitoring, quarantines and travel restrictions are the four main containment tools. The first two are conventional. The last two are controversial, not because they’re less effective than the first two but because they have bigger downsides.

None of the four, separately or together, can stop a pandemic. They can slow it a little, which isn’t nothing: It buys time for preparedness (emotional as well as medical and logistical). But as soon as the virus is spreading widely in a place, that place has no further use for containment.

The risk communication lesson now: Stop telling people that containment will “work.” If the coronavirus goes pandemic, as noted immunologist Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, and nearly every other expert expects, eventually (and probably pretty soon) it will be spreading widely in the U.S., too, and containment won’t make sense.

One feature of the 2009 flu outbreak was the changing nature of advice. At first, pregnant women were to receive priority for inoculations. Then, it was anyone with a compromised immune system, followed by those over the age of 60. As I recall, during this era before social media exploded and become a main source for news, reporters, columnists and other pundits were quick to criticize the CDC, the World Health Organization and other federal, state and local health officials for the lack of definitive advice and prognostication.

As this is being written, there is no way to tell whether the coronavirus is going to be highly infectious but not lethal or highly infectious with a high degree of lethality. It might even burn itself out — or it may seem to go into hiatus but then come roaring back in the fall (as did the Spanish flu).

Government agencies are already placing visitors from China into quarantine. This may suddenly escalate, with the closure of airports and other ports of entry. Stock markets may dramatically tumble — but then recover just days later. Or they may not. And if things really escalate, offices, schools, malls, theaters and other venues may close — and grocery shelves may empty. In the face of this uncertainty and volatility, prudent bar association and law firm leaders should be using “peace time” to prepare for the worst.

Now is the time to:

  • Examine your sick-leave policies. Family-leave policies, too, should be looked at because many employees may unilaterally decide to hunker down at home, especially if they have small children or elderly relatives to care for.

  • Encourage and utilize good hygiene practices (e.g., hand-washing, coughing into the crook of the elbow instead of the hand).

  • Consider what a travel ban might do to your business.

  • Remind your employees — and yourself — to depend on only the most reliable sources for information about coronavirus. The WHO, the CDC and state and local health boards are reliable. Facebook isn’t — and the advice given by the pundits on cable television must be taken with more than the proverbial grain of salt.

  • Remember to remind all of your stakeholders that situations like this are fluid and the information given out now may be preliminary and subject to change. Even advice from the CDC and WHO can change, depending on the facts at hand.

Employees, customers and other stakeholders will cross-check what you tell them against other sources. If you mislead them, they’ll hold it against you. Be especially careful not to sound over-reassuring or overconfident, which Sandman says are the two most common crisis risk communication mistakes other than outright dishonesty (also common, sadly).

© 2020 Hennes Communications. All rights reserved.

For more on Coronavirus risk mitigation, see the National Law Review Health Law & Managed Care section.

Attorney Wellness and Mindfulness Part 2: What does Mindfulness Practice Look Like?

In Part I of our series on wellness in the legal industry, Elena Rand, a former litigator and legal executive coach with a Master’s degree in Clinical Social Work and current CMO of Wiggin and Dana identified why the legal industry needs to understand chronic stress and how it impacts the body, and how mindfulness, even at a basic level, can help improve both individual attorney’s performance and the often stressful law firm environment.

Today, Ms. Rand goes over the basics of a mindfulness practice, as well as addressing some common barriers to practicing mindfulness and how to overcome these barriers.

What are some simple practices that a novice or even a skeptic might be able to take on to start feeling some small benefit? And along those lines, do you need to devote a lot of time to mindfulness practices to begin to see a difference? What kind of commitment level do you need to show?

There is no right or wrong way to do mindfulness practice. There are no absolute time requirements or limits and there is no Olympic medal for “ great mindfulness”. There’s no level of perfection, there is nothing to “achieve” or “strive for” and that’s a key part of the practice. In fact, if we go back to what mindfulness is, it asks us to be accepting of whatever comes up and sometimes whatever comes up is “I only have five minutes to breathe and guess what? In those five minutes, I’m obsessing about that conversation that just happened down the hall,” but mindfulness is being aware of exactly that, and accepting of that.  That is the work. It’s saying, “you know what, I just spent five minutes inhaling and exhaling and trying very hard not to think about that conversation, and all I did was think about that conversation.”  If you brought your attention to that in the moment and then proceeded to pay attention to the next moment, and the next moment… well, then that is mindfulness meditating.  You were just meditating. I want to debunk the idea that mindfulness is this sort of clear-minded perfection that will alleviate all your worries, obsessions, preoccupations etc.

You can do it for five minutes, you can do it for 10 minutes, you can do it for three minutes, you can do it in any number of ways. But again, it’s intentionally bringing your attention to what’s arising and accepting it.

As to how do you actually do it—well, definitely one way that we’ve all heard of is breathing techniques. And there’s a lot that’s been written about just focusing on your breath.

Inhale, exhale, inhaling and exhaling for any number of minutes is a start.  And during that time what will invariably happen is what’s been called monkey mind, which is a flurry of thoughts.  Everything from your clients, a brief for the meeting you have a four o’clock as well as an argument you had with your spouse and your conversation with a firm partner.  All of that’s going to be going through your mind while you’re just trying to inhale and exhale. And that’s the practice. And the idea is to gently bring your attention back to the singularity of your breath over and over and over and over again. So that’s one modality, but some people I’ve worked with really aren’t into the breathing thing, and they ask for another way.

Another way is intentional activity.   Select something that you know you do every day. Eat lunch, go for a walk, drive home and bring your attention to that action. What does it feel like? What does it feel to actually taste my food? What is it? How many times do I chew? What does it feel like to actually swallow that food? Am I hungry still? Am I not? This is a mindfulness practice that focuses on taking an action.

A third of mindfulness practice is what I call sort of a body scan.  This is just sitting, not focusing necessarily on your breath, but focusing on your body, which we don’t always do.  I mean, some people joke that our bodies are there to help us carry our heads from meeting to meeting.  The reality is that many of us are not in touch with our bodies. The body scan is another opportunity to kind of pause, and bring explicit attention to your body. Start with your feet. What do your feet feel like? Are they grounded? Can you feel your feet? Can you feel your ankle? And then sort of work your way through your body and what the sensation is.  You’re really looking for that sensory attention. So there are three examples of ways that you can introduce mindfulness in a practical way, you don’t need to go to an Ashram experience.

Let’s talk about identifying barriers.  With wellness there’s a lot of mindfulness, there’s a lot of talk about self-compassion, patience, relaxing and will practicing all of this mindfulness take away from your competitive edge?  Will mindfulness make it harder to win for my clients and my firm? It’s a tough world and I need to be strong and win. Is mindfulness going to weaken my competitive and adversarial instincts?

For anyone who really believes that genuinely I would recommend they read The Art of War by Sun Tzu.  In that book, there’s a lot of wisdom about the power of self-compassion and compassion for your opponent that strengthens your ability to have real strategic clarity about what needs to get done next. So that’s from a philosophical perspective.

From a purely personal perspective, at the end of the day anyone who is going to be fiercely competitive and adversarial also needs clarity and strategy. That takes us back to what the purpose of mindfulness is, to improve your executive functioning by addressing your body and strengthening your ability so that you can endure. I think that that if you put it in that framework, you can actually sell it a little bit more to people who want to be more competitive and more adversarial.

This is the quiet backstage work that competitive attorneys have to be doing on themselves in order to go into battle and be as effective a warrior as they can be. I don’t see it as at odds. I see this as adding to their repertoire of, strategic skill-building so that they can be as effective and as competitive as they want. It’s working on a muscle that has kind of atrophied, which is self-care, and their wellness and strengthening that so that they can choose to do with that whatever they would like.

The law offices like many business environments, seem to be in a constant state of emergency which can make it difficult to be consistent with a mindfulness practice. How do you maintain a mindful practice in a high-pressure environment?  Are there any tips, tricks, life hacks, anything like that to make it more likely to be successful?

What I personally do, which is very simple, is I have a separate space, a different chair.  It doesn’t look like a meditation chair. I get to sit in that chair and I have a cup of tea, in-between meetings or right before the end of the day.  This chair is away from my desk, and I will intentionally make a cup of tea in my office and I sit in that chair and take some time for myself, measuring time with an app on my FitBit.  Then, I know that at least I have incorporated some level of breathing or grounding or intentional action into my day, and that’s separate from my other practices. Some firms have taken to having a mindfulness group that meets together monthly.

I think when you introduce it that way to people it becomes achievable, but obstacles still exist.  It takes about a month for an action to turn into a habit. One way to reach that point is to enlist a friend, someone who is like-minded and values achieving mindfulness as much as you do to help keep you on track.

I think one of the biggest obstacles is time and perception. The timepiece is personal.  At the end of the day, if it’s important to you, you will find the time to take care of you, which goes back to wellness.

Again, I think a lot of people have a perception of, “Oh, that touchy-feely guru wellness stuff that’s all really kind of hip and important now in law firms.”  I really worry and want to make sure that the concern for wellness is not a passing fashion. I want sustained change, and I think that even the perception of those types of wellness activities at law firms is changing as we have more and more millennials who are asking for it or expecting it, who are embarking upon it, who are creating, healthy boundaries around their work and their life and their wellness. The barriers of time, and how it is perceived, are changing, but it’s slow.

My big hope right now is that this doesn’t become a flash in the pan kind of interest, but rather a pivotal moment and a paradigm shift, like what happened 10 years ago with the law firm’s focusing on business development and maternity leave where the industry realized the need for change and there was a shift in industry norms.

I am a big proponent of embarking upon wellness as a lifestyle change and not a quick fix. There was no quick fix to changing maternity policies and flex-time at law firms.  There was no quick fix to introduce in the ideas of business development and leadership skills, and there’s going to be no quick fix for really shifting the law firm culture into a wellness culture so that attorneys can be doing all the things that are expected of them. We need to embark on the change mindfully and with intention so that we bring about meaningful culture change to the legal community.

Many thanks to Ms. Rand for her time and expertise on this important topic. Elena Rand and Eilene Spear of the National Law Review will be hosting a panel on this topic at the Momentum Events Employee Wellness Event for Legal and Professional Services Providers at the Riverside Hotel in Fort Lauderdale on February 27- 28.

Copyright ©2020 National Law Forum, LLC

For more on the topic, please see the National Law Review Law Office Management page.

Attorney Wellness and Mindfulness Part 1: Why is Mindfulness a Benefit to Attorneys and others in the Legal Industry?

Attorney wellness and a focus on all aspects of employee well-being, including mental health, has become an important issue in today’s workplace environment.  Law firms, and the legal industry in general, with its competitive reputation, expectation of heavy workloads and high stakes environment is beginning to embrace wellness practices as an anecdote to the chronic stress often faced by attorneys and other individuals who work in law firms.

The problem is so widespread that in 2017, the ABA House of Delegates approved Resolution 106  amended the ABA Model Rule for Minimum Continuing Legal Education (CLE) to include a requirement for lawyers to receive at least one hour of mental health, substance abuse credit every three years.  And mental and physical health issues as well as substance abuse CLE courses are mandatory in several states, such as Illinois and Florida or count towards professional responsibility credits in numerous other states.

Elena Rand JD, MSW and Chief Marketing Officer of Wiggin and Dana has been working on this issue for years, putting her experience as a litigator and a legal executive coach along with her Master’s degree in Clinical Social Work to help those in the legal industry understand chronic stress, how it impacts the body, and how mindfulness, even at a basic level, can help improve performance and well-being.

Elena Rand and Eilene Spear of the National Law Review will be hosting a panel at the Momentum Events Employee Wellness Event for Legal and Professional Services Providers at the Riverside Hotel in Fort Lauderdale on February 27- 28, and in preparation for that presentation they sat down and discussed some aspects of mindfulness, identified some barriers to its practice and outlined the need in the legal industry.

I know you have formal training in Clinical Social Work and have dedicated much of your professional life to workplace health and wellness issues, can you take a minute or two and address your background and why wellness at the workplace, specifically in the legal industry is an issue that you care about?

Attorney wellness and wellness and the legal community in general is something that has been sort of a mission and a passion of mine probably for the last 15, maybe even 20 years. It really came to the forefront of my attention when I was working as a legal executive coach.  I was doing coaching for a large law firm, really focused on working with attorneys to improve their leadership and business development and networking skills and taking high-performers to the next level. What I invariably discovered is that there is an underbelly of crisis and struggling for many of these enormously successful, high achieving, high performing go-getting attorneys. I found that attorneys were struggling both in terms of managing their baseline day to day life to extreme mental health issues and addiction. That kind of came to full bloom and grabbed my attention.

As a legal executive coach working with high-performing attorneys, I was sort of a first responder in many ways for a lot of the wellness and mental health crises that were being buried for many, many years. Before we could even get to how to focus on getting you to the partnership level, and how do we focus on doubling your book of business, attorneys were coming to me on their own saying, “I don’t think I can take another moment of this,” or “if I add one more thing to my day, you know, I’m going to, I’m going to really lose it.”

I started to see that this was an issue that kept popping up and presenting itself, so I went back to grad school and earned a master’s in clinical social work. I wanted to have a real behavioral toolbox so that I could understand human behavior, understand the spectrum of wellness and the lack of wellness, and really be able to service the legal community in that way.

Additionally, wellness has been a lifelong personal struggle and mission, in my life.  I was one of those crazy, high-performing litigators who hit a wall at 90 miles an hour when I had my first child at the age of 27 and suffered from crippling postpartum depression. Suddenly, after years of just pushing and pushing, I one day woke up to realize that I was now severely impaired. It was very scary and humbling and you know, it became sort of my own passion and mission to really bring a level of attention and awareness to wellness in the legal community.

It’s pretty obvious that the legal industry is very competitive and that it can be full of very high-stress situations. What are some symptoms of constant stress that you might come across in the day to day operations of a typical law firm?

That question’s really important. You know, stress is basically a physiological reaction to a perceived threat to you and to your environment, right? So that’s where you get the whole fight or flight physical response. That’s what stress is. From a biological perspective, what ends up happening is your blood pressure goes up, your veins constrict, and you have basic physiological symptoms kicking you into fight or flight mode.  From purely a biological perspective, these automatic stress responses can have serious ramifications that can end up impairing an individual’s daily functioning.

Biology impacts our behavior; so chronic, ongoing stress in the body manifest and present some clearly identifiable behavioral dysfunctions. For starters, chronic stress induces a level of constant baseline agitation. Everything and anything can be irritating to the point of explosion.  Everyone is a little bit of a powder keg about to explode. Chronic stress will cause sleep deprivation. It has been linked to eating disorders. It can cause imbalances in your metabolism. It’ll cause imbalances in your serotonin level, and the other thing it does is it causes isolation. You have increased isolation with stress because you’re protecting yourself.  You’re not talking to anybody, you’re going through all of these things and everything in your body and mind is telling you to isolate.

From an executive functioning point of view, there is so much research to show that people functioning under high levels of stress for a long period of time can demonstrate impaired judgment,  impaired ability for conflict resolution, and impaired compassion. These impairments impact interpersonal relationships at work including client relationships. High stress has a whole host of impairments associated with high-level executive functioning that really is being called into play moment to moment. As an attorney, chronic stress can compromise your ability to focus and use good judgment. Your ability to analyze situations correctly and be able to step away and say, “is this a moment for confrontation?” or “is this a moment for cool off?” is now off.  Your ability to assess how best to present information appropriately to the client, to the associate, or to the partner is also off. Bottom line is that chronic high stress really impairs many of the operational skills needed to interface and practice effectively as a lawyer.  Finally, it also impairs the softer skills that are really needed as you become more of a senior partner and involved in business development.

From a business perspective, both individuals and the institutional law firms are negatively impacted by untreated chronic high stress as an individual’s capacity to handle situations and use good judgment and analysis have basically gone out the window.

How does mindfulness practices help counteract that stress in a typical law office environment?

Basically, mindfulness is bringing your attention to the present moment in an intentional, deliberate and systematic kind of way with an attitude of acceptance of whatever might show up or for whatever you’re experiencing. What mindfulness does, is it forces you to pause, which is, you know, a novel concept for many attorneys. One of the key things that happen when you are in a stress-induced situation is you stop breathing. We hold our breath. When you do that, you essentially jack up all of those sympathetic stress indicators in your body I mentioned before. I really want to make mindfulness super clear and basic, because I want to make mindfulness practice really accessible and strip away any preconceived ideas of what mindfulness is.

So, what is the power of the present moment?  If we strip it down, the present moment for any human being at any given moment is made up of  a cocktail of  their emotions, their sensations, and/or their thoughts. When you’re bringing your attention to that bundle of things that are happening, what you’re feeling, what you’re thinking and what you’re sensing in the world, suddenly you start to breathe and you start to invoke and sort of trigger your parasympathetic nervous system, which is the self-calming, self-soothing embodiment that we all automatically have in our body. What you’re inviting yourself to do is to intentionally focus on the present moment so that you can breathe, so that your body can be able to kick itself into a place of calmness.

We’re not talking about achieving nirvana, you know, we’re talking about creating a tool that is user-friendly so that in the moment you can pause, breathe and be able to ground in the present moment so that your body and your mind can kick into a better and perhaps, more optimal way of functioning.

That’s a simplified way of thinking about it because other levels can be a little off-putting or intimidating.  If you read a lot of philosophy on mindfulness and meditation, anyone who claims they’re an “expert” in mindfulness doesn’t get it, in my opinion. We’re all beginners. And the idea that we are all beginning all the time in this process with the “beginner’s mind” is what can make the difference of whether you try mindfulness or not. There is no perfection or achievement award in mindfulness; starting at the beginning and paying attention to the present moment over and over again is the practice.

Many thanks to Ms. Rand for her insights.  Monday we will have Part 2, which will address the basics of what mindfulness practice can be, as well as some barriers to practicing mindfulness and how to overcome them.

Copyright ©2020 National Law Forum, LLC

How Law Firms Can Prevent Phishing and Malware

Law firms harbor information directly linked to politics, public figures, intellectual property, and sensitive personal information. Because lawyers rely on email to manage cases and interact with clients, hackers exploit technical vulnerabilities and people via email. After cybercriminals infiltrate a law firm’s systems in a successful phishing or malware attack, they leverage breached information for financial gain.

Starting with email, law firms must control the availability, confidentiality, and integrity of data. Or they will suffer breaches that bring increased insurance premiums, loss of intellectual property, lost contract revenue, and reputational damage.

Law firms aren’t securing their cloud technology

As lawyers adapt with best practices in technology, they’re moving client data and confidential documents from on-premise to cloud-hosted databases. 58% of firms use cloud technology to manage their clients and run their firms, according to the 2019 Legal Technology Survey Report on Cybersecurity and Cloud Computing from The American Bar Association’s Legal Technology Resource Center.

Migrating data to the cloud is a good thing, despite concerns about its availability. Data is more secure when stored in a system with modern infrastructure and security protocols, instead of stored locally on an outdated system no longer supported by vendors — such as a desktop device still running Windows 7 software, rather than Windows 10.

Even though the cloud is safe, law firms inevitably fall victim to cloud-based cyberattacks like phishing and malware.

26% of lawyers reported a security breach at their firm. TECHREPORT’s other findings explain why the breach rate is so high:

  • Fewer than half (41%) of all respondents changed their security practices after migrating to the cloud.

  • Only 35% of lawyers adopt more than one standard security measure — like encryption, anti-malware, anti-phishing, and network security.

  • 14% of respondents using cloud-based technology to manage their firm do not have any preventative security measures in place.

Changes to your firm's security policies.

Source: 2019 ABA TECHREPORT

How law firms can prevent phishing and malware

Lawyers know data breaches create downtime, loss of billable hours, and reputational harm. But they’re less aware of how to prevent those outcomes.

Phishing explained

Phishing happens via email, when hackers impersonate trusted senders to trick recipients into divulging sensitive or confidential information. Most often, phishers trick victims to click a malicious URL and interact with spoofed login pages. Microsoft is the most spoofed brand in the world, because it is the hub for organizations to collaborate and exchange information. If a lawyer enters their Office 365 credentials onto a spoofed login page, the username and password go directly to the hacker’s server.

Most common brands in phishing attacks.

Source: TechRadar

Successful credential-harvesting phishing attacks allow hackers to access data-dense services like Office 365, online banking, and practice management software. Stolen credentials lead to account takeover scenarios that result in further exploits, including network infiltration, database infiltration, and data exfiltration.

3 common characteristics of phishing attacks

  1. Subject lines that appear highly urgent

Many subject lines in phishing emails are in all-caps to pressure the recipient. Beware of subject lines that say “URGENT” or “Are you available?” An infographic from cybersecurity firm KnowBe4 reveals the top phishing email subject lines from 2019.

Top-clicked phishing tests.

Source: KnowBe4

  1. Spelling errors, grammar errors, and awkward language

Hackers need to deceive language parsing technology like Optical Character Recognition (OCR) that identifies suspicious content and blocks the message. To bypass anti-phishing algorithms, they’ll intentionally misspell words, use special characters that look like letters, and replace letters with lookalike numbers. Phishing URLs are often misspelled, or the domain name does not match the content of the page. Carefully read every URL to see if the words and letters match the content of the page.

  1. Unexpected or unusual requests for documents or money.

Phishers can spoof the sender name and domain of trusted contacts’ email addresses to lull recipients into a false sense of trust and compliance. Requests for sensitive information (bank routing numbers, trust account numbers, login credentials, document access, etc.) should be confirmed over the phone or any other communication channel besides that same email thread.

6 ways to prevent phishing at your law firm

  1. Check if email addresses associated with the firm were involved in high-profile breaches

Have I Been Pwned is a website that identifies compromised email addresses and passwords across online services that have been breached so that victims can change their password and prevent account access. Set up alerts through the website to monitor any future breaches.

Check if you have an account that has been compromised in a data breach.

Source: HaveIBeenPwned.com

  1. Install password managers

The best passwords don’t need to be memorized. 25% of people reuse the same password for everything, according to OpenVPN. Password manager services like 1Password (paid) and LastPass (free) use browser plug-ins and mobile applications to create, remember, and autofill complex, randomly-generated passwords. They identify weak or reused passwords across websites, and run a program to simultaneously rewrite and save new passwords on those sites.

LastPass password management software

Source: LastPass.com

  1. Make Multi-Factor authentication (MFA) mandatory at the firm

Multi-factor authentication, a secure login method using two or more pieces of confirmation, adds another step to the login process to prevent account takeover and the breach of confidential data. When username and password credentials are submitted to the login page, MFA generates and sends a unique alphanumeric code to the account holder’s email or phone for use as a secondary password. Unless this code is submitted on the follow-up login screen in a timely manner, it will expire.

Because email accounts and cell phone numbers are publicly available and can be compromised, use app-based and hardware-based MFA instead.

Solo and small/medium firms should use the Google Authenticator app, which continuously creates dynamic codes that swap out every 30 seconds and are unique to the device on which the app was installed.

Larger firms should adopt physical MFA. These “keys” plug into your laptop, tablet, or mobile device ports to authenticate access to software — and even the device itself. Because the keys are unique, hackers can’t access accounts supported by hardware MFA keys like Yubico’s YubiKey, which is used by every Google employee. If the key is lost, account access can be gained through backup codes or MFA codes delivered via email, mobile, or authentication apps.

Make Multi-Factor authentication mandatory at the law firm.

YubiKeys (Source: Wired Store)

  1. Participate in phishing awareness training programs

These software programs regularly educate and train employees on the characteristics of spam, phishing, malware, ransomware, and social engineering attack methods. Microsoft’s Attack Simulator and KnowBe4 offer free programs that train users not to interact with phishing attempts and give visibility into how well they’re trained, based on their click rate during the attack simulations. The 2019 Verizon Data Breach Investigation Report found that lawyers and other professional service workers were the third most likely group to click on phishing emails.

2019 Verizon Data Breach Investigation Report

Source: 2019 Verizon Data Breach Investigation Report, Figure 45

  1. Only connect to secure WiFi

Connecting to public WiFi in a cafe, airport, or hotel is dangerous. Malicious worms can transfer from one device to another if they are connected on the same network. When traveling, use a virtual private network (VPN) to extend a remote private network across the public network and secure the WiFi connection.

  1. Report suspicious emails

Popular email clients like Office 365 and Google Gmail offer suspicious message reporting. Use this built-in tool to improve their anti-phishing algorithm. If applicable, contact the IT team or cybersecurity staff at the firm so they can update security configurations in the email client or third-party security tool they may use.

What is malware?

Malware is any malicious file that launches scripts to hijack a device, steal confidential data, or launch a Distributed Denial of Service (DDoS) attack. Most malware is delivered via email. The 2019 Verizon Data Breach Investigation Report found that 51% of phishing attacks involve malware injections into a network. These malicious scripts are usually injected via spoofed DocuSign and Adobe attachments, or fraudulent billing and invoicing documents.

Ransomware is a subset of malware that hackers use to hold information or access hostage until a ransom is paid. Ransomware exploits frequently involve blackmailing tactics, and “sextortion” phishing emails (in which hackers purport to have footage of the victim watching pornography) are gaining popularity.

The 2019 ABA TECHREPORT noted that 36% of firms have had systems infected, and about a quarter (26%) of firms were unaware if they’ve been infected by malware. Larger firms, which tend to use on-premise software because of the up-front work associated with cloud migration, are the least likely to know if they’ve suffered a malware attack.

3 ways to prevent malware

  1. Monitor and update outdated software and hardware 

Application updates are necessary and should not be treated as optional. These software upgrades implement essential security features to ward off new strains of attacks. Not updating software and hardware provides short term savings, but will be very costly in the long run.

Be aware that:

  • Windows 7 is no longer supported since January 2020.

  • MS Office 2010 will no longer be supported as of October 2020.

  • Support for Adobe Acrobat X Reader/Standard/Pro, Adobe Acrobat XI, and Reader XI has ended. 88% of attorneys continue to use these highly-vulnerable Adobe programs, according to the 2019 ABA TECHREPORT.

  1. Monitor email for links and executables (including macro-enabled Office docs)

Executable files automatically launch actions, based on the code in the file. Apply software restrictions on your device to prevent executable files from starting up without your consent. Microsoft found that 98% of Office-targeted threats use macros. In 2016, Microsoft pushed a macro-blocking feature in Word to prevent malware infection.

Block macros and prevent malware in Microsoft Office Word.

Source: Microsoft Security Blog

  1. Hire a Managed Service Provider (MSP) for cybersecurity

MSPs offer an affordable portfolio of solutions to manage cyber risk across firm operations.

The solution: control the login process and data access in cloud-based apps

Lawyers are obligated to protect sensitive client information from phishing, malware, and ransomware. As breaches continue to make headlines, clients are selecting firms based on their data security. Law firms educated on confidentiality, security, and data control will be able to reassure security-conscious clients.

Cloud security — especially in email and document storage — relies on identity and access management. Establish a secure login process, govern user privileges in applications, and ensure that everyone at the firm can spot suspicious emails and attachments.

Choose cloud providers with a reputation for secure software and identify third-party security vendors for anti-phishing, anti-malware, and MFA.

© Copyright 2020 PracticePanther

Written by Reece Guida of PracticePanther.
For more on cybersecurity for legal and other businesses, see the National Law Review Communications, Media & Internet law section.

On-Demand Creativity: Five Ways to Foster It in Your Law Firm

Lawyers aren’t necessarily thought of as those who practice in a “creative” profession. At least not in the same way that artists, writers, musicians or marketing professionals are deemed “creatives.” However, lawyers and those who support them know that nothing could be further from the truth. In fact, the practice of law demands creativity in virtually all aspects – creating ingenious defense strategies, crafting brilliant opening statements, structuring unique partnerships or mergers or acquisitions, etc. Law firms also routinely launch creative marketing campaigns or inventive business development strategies. Plenty of law firms even get creative in terms of alternative billing structures. Indeed, the practice of law and the business of running a law firm require virtually nonstop creative thinking and strategy.

However, as most attorneys and firms know, generating creative inspiration can prove challenging. After all, some of the best ideas seem to materialize out of thin air, with an out-of-the-box design for working up a case coming to light during the course of other work. Since trial-winning ideas or successful marketing strategies that generate a particularly impressive ROI often seem to come to life out of the blue, it’s worth asking the question: Is there a way to generate creativity on demand? The short answer is: yes.

Drew McLellan of Agency Management Institute addressed the notion of sparking creativity on demand in a recent article, which we’ve expanded on below, including one of our own strategies. Here are five suggestions for drawing out creative ideas at your law firm when you need them.

Ban the Notion of Bad Ideas & Champion Creative Chaos

Obviously, not every idea is going to prove to be a winning strategy for your firm or your client, but by making it clear that all ideas are worth exploring, you may lay a foundation for creative chaos. Sometimes the worst ideas serve as the catalyst to make your team members think, which then spawns a great idea that otherwise wouldn’t have emerged. Too, if you set a culture where people can’t speak up, or their ideas are snuffed out, you may be silencing that one person who will come up with the dead-on idea for the brainstorming session.

Allot Time for Creative Idea Sharing at Meetings

During regular meetings, be sure to include time for idea sharing before heading back to your respective offices. Often, due to time constraints, meetings are held to strict time limits. Unfortunately, because of the volume of information shared during a meeting, there may not be time for an associate or team member to share an idea they have, which likely took shape during the meeting. By scheduling an extra 15 minutes at the end of regular meetings, you may just generate some of your best ideas yet.

If this isn’t possible, try scheduling an agenda-less meeting once a week, just to pick the brains of your colleagues.  Simply open up the meeting by asking something like: “Are there any ideas that you have that would make this firm run smoother or would make this case progress?” Then, open the floor up to input from your attorneys and team.

Champion Your Team’s Growth

Supporting the individual passions of your attorneys and staff is another great way to generate creativity. If you have an attorney who is an avid rock-climber, for example, encourage them to keep it up, and share their experiences about it. Likewise, if you have team members who are curious about pursuing a particular hobby, ask for updates on their progress and learn more about what they find fulfilling about it. The more you get to know your colleagues and who they are outside of the office, the greater the likelihood they may share ideas that come to them during off-hours.

Suggest Both Reasonable and Risky Solutions to Challenges

Creativity often emerges while pursuing solutions. When you’re brainstorming a solution to a problem, try to come up with one solution that is safe and practical, but also one that is risky, or otherwise unusual. By offering these ideas up to your peers, you’re likely to spark creative thinking on their part as well.

Embrace Creative Activity Team Building

Much like supporting the individual growth of attorneys and staff, it’s valuable to invest in team building. Consider a creative endeavor for your next team building exercise, such as a group night out at an art museum. Any activity wherein the focus isn’t just on chatting—such as attending a sports game or a happy hour— may just help to solidify friendships amongst firm members, who are then more open to idea sharing with the group.

Generating on-demand creativity in and of itself requires a bit of creativity. Consider these five suggestions or other ideas that these spark, in order to keep your firm investing in ingenuity.

© 2020 Berbay Marketing & Public Relations

For more legal team development ideas, see the National Law Review Law Office Management section.

Three Ways Litigation Finance Can Help Corporate Legal Departments

Corporate legal departments are generally measured by their ability to control legal costs, manage risk, and deputize external litigation resources, especially when their company is involved in litigation. Although a common feature of modern business, litigation is an increasingly costly proposition that is fraught with risk. In recent years, commercial litigation finance has emerged as an effective means of shouldering case costs and redistributing risk. While the number of law firms that have seized the advantages of this type of financing has grown exponentially, general counsels (“GCs”) and corporate legal departments have been slower to recognize the many benefits that it can offer, which has handicapped their companies by keeping a potent tool needlessly out of reach. Here are three things every GC should know about litigation finance.

Litigation Finance Offsets Risk

Litigation costs and other financial risks inherent to the legal process pose a daunting challenge to GCs. As a result, companies often forgo bringing lawsuits due to their impact on financial performance. Yet even when legal departments decide to forge ahead with legal claims, their outcome is often far from certain. The decision to bring a lawsuit, therefore, has the power to make or break entire companies. This risk is even more acute for smaller companies and those facing financial headwinds. A victory could revive a company’s fortunes, while a poorly conceived effort might precipitate the firm’s demise. Litigation finance mitigates that risk through funding “without recourse,” which allows a company to shift costs to a third party and only share an agreed-upon portion of proceeds with the funder at the successful conclusion of the claim. If a case is lost and no proceeds are recovered, the company is under no obligation to repay the funding amount.

Consider the following example: Suppose a small tech startup sues an industry giant for theft of its trade secrets relating to a revolutionary new product. The startup’s case against its unscrupulous competitor is seemingly strong as the brazen theft greatly damaged the fledgling company. Unfortunately, the lawsuit comes with a steep price tag, forcing the startup to spend more than $100,000 each month on attorneys’ fees and associated costs. Small and vulnerable, the startup is quickly exhausting its cash reserves as its better-capitalized opponent employs a panoply of defensive tactics designed to delay and frustrate plaintiff’s efforts at all stages of litigation. As legal bills continue to mount, the startup may need to abandon its lawsuit or accept a paltry settlement far below the actual value of its claim.

Faced with an existential threat, what the startup really needs is a cash injection from a litigation finance provider to pay for the escalating litigation costs while also providing a much-needed insurance policy against unforeseen financial difficulties that can result from litigation. The startup’s GC is surprised to learn that this type of funding is an increasingly common financing option that is available to companies large and small. In a typical transaction, a third-party funder can finance most, or all of the legal expenses associated with the lawsuit in return for a portion of any recovery. The funds may be used to hire top legal talent or procure additional expert resources. Essentially a corporate finance transaction, this type of funding can even be used to supplement the company’s working capital or clean up arrears to legal service providers.

The example above is just one of the ways that litigation finance can be used to hedge litigation risk. More creative GCs have been able to offset their institution’s litigation costs entirely by using a portfolio-based approach to finance all of their legal claims.  This type of structure typically provides a much larger financing commitment but requires cross-collateralization of several litigation matters. Where portfolio financing is utilized, it may provide a greater degree of certainty about long-term future litigation spend.  If the funding amount is substantial enough, GCs may no longer need to allocate for litigation budgets on an annual basis and take a longer-term approach instead.

Litigation Finance Can Transform Legal Departments into Profit Centers Through Balance Sheet Management

Under GAAP, litigation costs are reflected as expenses, which can negatively impact a company’s financials and quarterly performance. This is especially troublesome for public companies that are valued on earnings or cash flow or require certain financial criteria to be met to comply with credit covenants. For such companies, litigation costs paid from company funds must be recorded as expenses immediately when incurred, thereby diminishing reportable earnings. Worse yet, recoveries from successful legal matters may not offset the adverse impact of lawsuit-related costs because such recoveries are generally treated as below-the-line items that do not increase earnings. Moreover, some actions may result in favorable judgments which then take months or years to enforce, leaving a temporary hole in a company’s cash flows despite a successful ruling.

It is no surprise then that corporate legal departments are frequently perceived by management as cost centers, necessary to put out fires or navigate the laws applicable to a particular industry, but not as potential revenue generators. Traditionally, GCs who have identified a roster of affirmative litigation likely to yield significant recoveries will still need to convince their c-suite to take on the risk and immediate financial burden of funding lawsuits from the company’s own balance sheet. Enter litigation finance. When both the risk and burden are shifted to litigation finance providers in exchange for a portion of any recoveries, a company’s legal department can focus on unlocking the hidden value of its legal matters without the risk of negatively impacting its financials, becoming a potential profit generator for the company.

An Experienced Litigation Funder Can Help Optimize Litigation Outcomes

The quality and breadth of resources that litigants are able to deploy can greatly impact outcomes in legal disputes.  For example, the skill of the legal team, the quality of expert witnesses and other litigation consultants are important drivers of how courts and juries perceive the merits of legal claims. With litigation financing mitigating the burden of paying for legal costs, GCs have greater flexibility in assembling a first-rate litigation team. A legal department buttressed by litigation finance can focus on the skill and effectiveness of its team without worrying about negotiating for the lowest possible fees. Access to the support of top-quality counsel and litigation consultants can improve a company’s overall likelihood of success and the magnitude of any recovery.

Experienced litigation funders can provide access to these top litigation support channels by leveraging their network.  In addition, they can provide an invaluable outside perspective on the merits of a case during the due diligence process and throughout the pendency of the claim. When choosing a litigation funder, consider the expertise of the funder’s team and if there are any practice areas which they target in their investment strategy.

A trusted litigation finance firm should demonstrate the highest professionalism, abide by the explicit understanding that a third-party funder should have no involvement in the litigation or strategy, and should protect attorney-client privilege and confidentiality at all times.  When these essential confidences are met, engaging with a third-party funder can be enormously helpful in assessing the merits and risk of a case, budgeting litigation spend, and providing access to first-rate litigation support.

Conclusion

As litigation finance continues to gain popularity among law firms, GCs should also take notice. As businesses continuously seek to gain a competitive advantage over their peers, the ability to mitigate the risks associated with litigation should be an important consideration, especially since poorly conceived strategies can often carry existential consequences.  GCs, therefore, should recognize litigation finance as an indispensable asset that has the potential to offset the risk of litigation, provide effective balance sheet management while unlocking the hidden value of prospective legal claims, and improve outcomes for meritorious cases.

 

© 2019 LexShares, Inc. All rights reserved.

ARTICLE BY Matthew Oxman of LexShares.

Stress Impacting Mental Wellbeing of Law Firm Marketing and Business Staff: Report

96% of legal marketers say that there is significant stress in the profession. 75% feel overwhelmed at work.

These are just a few of the findings from fSquared Marketing’s “Legal Marketing Mental Wellness Survey Report”. The survey polled 200 legal marketers and business professionals working at law firms primarily in the United States and Canada.

Recently, the legal industry has started to take stress and mental health seriously, but the conversation has invariably focused on the wellbeing of lawyers,” says Lynn Foley, CEO of fSquared Marketing. “That’s not the entire picture—stress affects everyone. Law firms often have a clear hierarchy and stress flows downhill to fall on the shoulders of the professional staff.”

Mental Wellness for Legal MarketersThe effects of stress on law firm staff has often been overlooked even though a number of law firm professionals have recently died by suicide.

“When we initially sought out information about mental health within legal marketing and business development, we found that there wasn’t any research on the subject,” explains Foley. “From my experience working with lawyers, I understood that we needed more than anecdotes and emotion to advance the conversation, we needed information and data. While we aren’t actually involved in HR or wellness consulting at fSquared Marketing, we saw that there was a need for this research and we had the skills to pursue it.”

Why are marketing staff so stressed out? There are several compounding factors.

Overworked and overwhelmed

Marketing staff say they have too much work assigned to them and not enough support to effectively manage demands on their time. The vast majority also reported that their department suffered from a lack of marketing resources. This is a sure-fire recipe for chronic stress and, eventually, burnout.

75% of respondents said that they felt overwhelmed at work while two-thirds said that stress is eroding their ability to focus on the task at hand. This is unfortunate and ironic since high-pressure situations are when powers of concentration become most critical.

Mental Wellness Stress ImpactAs one respondent commented: “We aren’t surgeons, but we do carry a tremendous amount of our own stress as well as the stress of others… There are no resources and there are very few people who would ever admit to needing them anyway for fear of appearing weak — stigma is an issue for everyone in the legal industry, not just lawyers.”

A divide between lawyers and “non-lawyers” (professionals)

It’s no secret that attorneys face significant threats to their mental wellbeing. As the American Bar Association describes it, “Lawyers work in an adversarial system with demanding schedules and heavy workloads, which may contribute to increased stress levels.”

A recent survey by Hazelden Betty Ford Foundation and the American Bar Association Commission on Lawyer Assistance Programs found that close to 28 percent of licensed, employed attorneys struggle with depression.

The legal industry deserves some credit for recognizing this problem and many law firms are taking steps to improve the mental health of attorneys. Critics would undoubtedly say that change isn’t coming fast enough and that many initiatives are focused on symptoms, not root causes.

While more firms are advancing mental health initiatives, these are not always extended to professional staff. A survey of 30 Am Law Firms found that 36% of firms that offer mental health programming do no offer these programs to staff.

Many respondents to fSquared Marketing’s survey mentioned this divide between lawyers and staff. “Stress and mental health is mostly addressed for the lawyers and not the ‘non-lawyer’ roles, in my opinion,” one respondent noted.

58% of survey respondents agreed or strongly agreed with the statement: “There is a focus on the mental wellbeing of lawyers in our industry.” Compare this with the 9% who agreed with the statement: “There is a focus on the mental wellbeing of non-lawyers in our industry.”

One respondent’s comments summarized a common perspective: “It is unfortunate that law firms segregate mental health awareness between lawyers and non-lawyers. Somehow they feel that staff (with whom they work directly) do not suffer from the same level of stress that the lawyers do.”

A lack of respect for marketers

The good news is that 92% of marketing and BD staff felt that they had an important role to play at their firm and many said that their ideas were often heard, valued, and put into action (73%).

Although professionals recognize their value, they often perceive a lack of respect from attorneys. The majority (51%) agreed with the statement: “There is a lack of respect for me/my role by the lawyers.”

Mental Wellness; Misunderstood RoleFew factors are likely to prove as harmful to staff wellbeing. The divide between lawyers and staff is again a contributing factor. “It’s stressful”, one respondent commented, “when law firms hire ‘smart’ and ‘well-respected’ professionals who really want to do what’s best for the overall business, but then their ideas are brushed aside because they aren’t part of the partnership or don’t have a J.D.”

Changing the culture

The issues raised by this survey are disquieting. It’s clear that law firms need to take mental health seriously, for staff as much as for attorneys.

The survey did, however, find some cause for hope. For one, 62% of respondents said that their team’s marketing ‘wins’ are celebrated.

As one legal marketer said: “The level of stress varies significantly from firm to firm. Even though I am very busy at my firm, my work is appreciated and that goes a long way toward feeling good about my job.”

The fact that staff experiences vary between firms is evidence that law firms do not have to be toxic work environments. It is entirely possible for law firms to foster cultures of respect. Those that do are likely to enjoy a competitive advantage.

As one respondent said, “A good, friendly culture goes a long way”.

© Copyright 2019 fSquared Marketing

For more law firm marketing & business, see the Law Office Management page at the National Law Review.