Tag: management

Get Off the Beaten Path: Three Ways Outsourcing Can Help Firms Achieve CRM & Data Quality Success

Normally, the path most traveled is thought to be the better road as it represents the path that leads to achieving goals and success while the less traveled path leads to stressful processes and unknowns.

But for firms trying to achieve CRM success, the “beaten path” involves investing tens of thousands of dollars into the latest and greatest technology and hiring internal Data Stewards to maintain the data flowing into the system. This can take up a significant number of firm resources and there is no guarantee that CRM Success will be achieved.

Let’s face it, the traditional approach to CRM and Data Quality Success often leads to more headaches and challenges than it does to success. Without the right experience and expertise, leading a CRM implementation project or a data quality clean-up can be disastrous.

Hundreds of thousands of records flow in from departmental databases which need to be analyzed and categorized properly. Meetings need to be held with firm leadership to understand their expectations for the system, and meetings need to be coordinated with vendors to set up demonstrations along with Requests For Proposals (RFPs).

To add more fuel to the fire, meetings also need to be held with end users to understand their needs and requirements so system selection can be catered to them. In the end, firms are left with high training and implementation costs; limited staffing pools due to required expertise; and increased employee burnout due to the overwhelming nature of the work.

The Path Less Traveled: Outsourcing

Many forward-thinking firms have taken the path less traveled to CRM success and have outsourced many of their core marketing technology positions and data quality work to trusted service providers. Outsourced Marketing Technology Managers and Data Stewards can provide all the benefits of retaining these positions in-house at a cost-efficient price all while reducing managerial headaches.

The route less traveled gives you access to a pool of highly skilled professionals without the additional costs associated with hiring internally. Many outsourced Marketing Technology Managers and Data Stewards have years of industry experience working with the nation’s top firms tackling complex data quality issues and guiding implementations ensuring they are implemented and integrated effectively.

To achieve CRM and data quality success, sometimes the beaten path won’t get you there. Here are three ways taking the path less traveled can help you achieve CRM and data quality success:

1. Cost Savings

Utilizing outsourced service providers for marketing technology or data quality roles can help firms save a significant amount of money. For firms with around 250 professionals, hiring an internal CRM Manager and Data Steward can cost firms around $116,640.

For firms that have limited resources and budgets, outsourcing providers offer various pricing models for their services. From contracting their workers on an as-needed basis for short-term or long-term projects to paying-as-you-go. This allows firms to allocate more of their investments to higher-priority projects or initiatives. Depending on the rate of the service provider, firms can expect to pay up to 33% less ($77,350) when they outsource their core marketing technology and data quality work.

2. Improved Data Quality

Opposed to internal Data Stewards, outsourced data quality professionals can focus on key responsibilities and can work more efficiently than their internal counterparts who have to focus on other tasks or priorities. These outsourced professionals understand the intricacies of the professional service industry and seamlessly fit into your firm’s day-to-day processes.

Outsourced Data Stewards have the ability and know-how to implement data standardization processes and protocols, minimizing the number of dirty records that may flow into the system. They also have access to industry-leading tools that can streamline and automate data management so your attorneys and professionals can worry less about maintaining their contacts and more about serving their clients.

3. Reduction In Turnover

Traditionally, hiring Data Stewards internally has been a revolving door, where firms would hire a new team member to maintain their data quality, train them, compensate them, motivate them, then, replace them. Given how outsourced service providers are not directly involved with the firm’s core services, they assume the role of finding, hiring, training, motivating and managing the data quality professional.

This frees up your marketing and business development teams to focus on growing the firm and nurturing client relationships rather than chasing down contact data from the organization’s professionals. They can help you with a wide range of data-related activities including:

  • Regularly reviewing new records
  • Enhancing records with geographical information, financial data, or who-knows-who relationships
  • Creation and management of segmented and targeted lists for marketing or business development campaigns

To achieve CRM and data quality success, sometimes the beaten path won’t get you there. So, if you are struggling with your marketing technology or data quality, don’t be afraid to explore alternate routes, like outsourcing. It can open your firm up to a pool of highly skilled professionals who have years of experience solving the same issues you may be going through. An outsourced team can provide your firm with significant cost savings, improved data quality, and a reduction in employee turnover and managerial headaches.

These operational efficiencies lead to greater productivity and returns on marketing spend – meaning greater profitability for the firm.

© Copyright 2024 CLIENTSFirst Consulting
For more news on CRM Development, visit the NLR Law Office Management section.

Clueless in the Cubicle

The Journal’s recent piece about managing employees with misperceptions about their employment self-worth reminds us once again why honest and timely performance feedback makes good business sense. I have written before about the benefit of candid performance reviews, even at the risk of hurt feelings. I have also defended performance evaluations as an important tool to mitigate potential liability for employment claims. The Journal’s piece states that nearly four in 10 employees who received the lowest grades from their managers last year rated themselves as highly valued by the organization based on almost two million assessments. If true, that represents an astounding disconnect between performance-related perception and reality.

Theory is one thing. Managers who are adept at giving feedback is another. While businesses are rightly focused on running the organization’s business, training managers how to deliver quality feedback is often assigned a low priority. Adding to that deficiency is the often unmet need for managers with the right EQ to deliver feedback. But despite those challenges, which exist even for employees who relish feedback, there are some important guidelines for managing employees with an inflated sense of employment worth. Here are a few suggestions for delivering feedback for performance-deniers, who clearly require a more exacting approach.

First, performance discussions (especially about the areas in which the employee is falling short) must be done regularly and ongoing, and especially promptly after an error or mistake is committed. Performance deniers will use a one-time annual review (even if negative) to point out the obvious: if they are falling so short, the manager would not have waited so long to deliver that message (and which, in their view, adds to the review’s inherent unreliability).

Second, managers should not shy away from a denier’s tendency to fight the feedback (they disagree with it, it is wrong, it is fake). Rather, managers should use the denier’s dispute to double down on feedback: the employee’s inability to accept criticism, consider it, and even hear it, are all key parts of an employee’s commitment to the organization to grow and do better. Growth requires introspection. The refusal to engage in that process is itself a performance deficiency.

Third, managers should not permit performance conversations to become a discussion about victimization, unfair treatment or perceived persecution (all of which may end up becoming a legal claim). Performance deniers are adept at deflecting: one key deflection is to blame others and make the discussion about things entirely outside performance parameters. Managers need to be empowered to insist on returning the feedback conversation back to the key and only focus: what is the employee doing well and how can (and must) the employee improve?

Finally, organizations need to assess the impact performance deniers have on employee morale. While not all employees will share the same perception, most people are aware when others aren’t pulling their weight – especially when they are tasked to pick up the pieces. Those on the downhill slope of these assignments – often the best performers because of the natural inclination to step up – may not stick around. The slippery slope here is clear and cluelessness at work is not a great look for the business or the employee.

©1994-2024 Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. All Rights Reserved.
by: Jennifer B. Rubin of MintzFor more news on Employer Performance Reviews, visit the NLR Labor & Employment section.

Wealth Management Update January 2024

JANUARY 2024 INTEREST RATES FOR GRATS, SALES TO DEFECTIVE GRANTOR TRUSTS, INTRA-FAMILY LOANS AND SPLIT INTEREST CHARITABLE TRUSTS

The January applicable federal rate (“AFR”) for use with a sale to a defective grantor trust, self-canceling installment note (“SCIN”) or intra-family loan with a note having a duration of 3-9 years (the mid-term rate, compounded annually) is 4.37%, down from 4.82% in December 2023.

The January 2024 Section 7520 rate for use with estate planning techniques such as CRTs, CLTs, QPRTs and GRATs is 5.20%, down from the 5.80% Section 7520 rate in December 2023.

The AFRs (based on annual compounding) used in connection with intra-family loans are 5.00% for loans with a term of 3 years or less, 4.37% for loans with a term between 3 and 9 years, and 4.54% for loans with a term of longer than 9 years.

REG-142338-07 – PROPOSED REGULATIONS RELATED TO DONOR ADVISED FUNDS

On November 13, 2023, the Department of the Treasury and IRS released Proposed Regulation REG-142338-07 under Section 4966; providing guidance related to numerous open-issues with respect to certain tax rules relating to donor advised funds “(DAFs”).

Pursuant to §4966(d)(2)(A), a DAF is defined generally as a fund or account (1) that is separately identified by reference to contributions of a donor or donors, (2) owned and controlled by a sponsoring organization, and (3) with respect to which a donor (or person appointed or designated by such donor) has, or reasonably expects to have, advisory privileges with respect to the distribution or investment of amounts held in the fund or account by reason of the donor’s status as a donor.

Under the proposed regulations, the definition of a DAF is consistent with the definition under the statute (the same three elements), however, the proposed regulations provide key definitions with respect to specific terms under the Statute.

Element #1: a fund that is separately identified by reference to contributions of a donor or donors.

Separately Identified: The proposed regulations provide that a fund or account is separately identified if the sponsoring organization maintains a formal record of contributions to the fund relating to a donor or donors (regardless of whether the sponsoring organization commingles the assets attributed to the fund with other assets of the sponsoring organization).

If the sponsoring organization does not maintain a formal record, then whether a fund or account is separately identified would be based on all the facts and circumstances, including but not limited to whether: (1) the fund or account balance reflects items such as contributions, expenses and performance; (2) the fund or account is named after the donors; (3) the sponsoring organization refers to the account as a DAF; (4) the sponsoring organization has an agreement or understanding with the donors that such account is a DAF; and (5) the donors regularly receive a statement from the sponsoring organization.

Donor: The proposed regulations broadly define a Donor as any person described in 7701(a)(1) that contributes to a fund or account of a sponsoring organization. However, the proposed regulations specifically exclude public charities defined in 509(a) and any governmental unit described in 170(c)(1). Note: Private foundations and disqualified supporting organizations are not excluded from the definition of a donor since they could use a DAF to circumvent the payout and other applicable requirements.

Element #2: a fund that is owned or controlled by a sponsoring organization. The definition of a sponsoring organization is consistent with §4966(d)(1), specifically, an organization described in §170(c), other than a private foundation, that maintains one or more DAFs.

Element #3: a fund under which at least one donor or donor-advisor has advisory privileges.

Advisory Privileges: In general, the existence of advisory privileges is based on all facts and circumstances, but it is presumed that the donor always has such privileges (even if no advice is given).

The proposed regulations provide that advisory privileges exist when: (i) the sponsoring organization allows a donor or donor-advisor to provide nonbinding recommendations regarding distributions or investments of a fund; (ii) a written agreement states that a donor or donor-advisor has advisory privileges; (iii) a written document or marketing material provided to the donor or donor-advisor indicates that such donor or donor-advisor may provide advice to the sponsoring organization; or (iv) the sponsoring organization generally solicits advice from a donor or donor-advisor regarding distributions or investment of a DAF’s assets.

Donor-Advisor: Defined by the proposed regulations as a person appointed or designated by a donor to have advisory privileges regarding the distribution or investment of assets held in a DAF. If a donor-advisor delegates any of the donor-advisor’s advisor privileges to another person, such person would also be a donor-advisor.

Potential Issue related to Investment Advisors: Is a donor’s personal investment advisor deemed a “donor-advisor?” Pursuant to the proposed regulations:

  • An investment advisor will not be deemed a donor-advisor if he or she:
    • Serves the supporting organization as a whole; or
    • Is recommended by the donor to serve on a committee (of more than 3) of the sponsoring organization that advises as to distributions
  • However, an investment advisor will be deemed a donor-advisor if he or she manages the investments of, or provides investment advice with respect to, both assets maintained in a DAF and the personal assets of a donor to that DAF while serving in such dual capacity. This provision, if finalized may have important consequences for fee structures used by supporting organizations since payments from a DAF to an investment advisor who is considered a donor-advisor will be deemed a taxable distribution under §4966. The IRS is requesting additional comments on this potential issue and is still under consideration.

Exceptions to the Definition of a DAF Under the Proposed Regulations:

  • A multiple donor fund or account will not be a DAF if no donor or donor-advisor has, or reasonably expects to have, advisory privileges.
  • An account or fund that is established to make distributions solely to a single public charity or governmental entity for public purposes is not considered a DAF.
  • A DAF does not include a fund that exclusively makes grants for certain scholarship funds related to travel, study or other similar purposes.
  • Disaster relief funds are not DAFs, provided they comply with other requirements.

Applicability Date: The proposed regulations will apply to taxable years ending on or after the date on which final regulations are published in the Federal Register.

EILEEN GONZALEZ ET AL V. LUIS O. CHIONG ET AL (SEP. 19, 2023)

Miami Circuit Court enters significant judgment for liability related to ownership of golf cart.

Eileen Gonzalez and Luis Chiong and their families were neighbors in a Miami suburb. The families were good friends and had many social interactions. Luis owned a golf cart which he constantly allowed to be driven and used by other people and Eileen’s minor children were often passengers on this specific golf cart.

Luis’ step-niece, Zabryna Acuna, was visiting for July 4th weekend in 2016. Zabryna (age 16 at that time) visited often and during each visit, she had permission to drive the golf cart. On July 4, 2016, Zabryna took the golf cart for a drive with Luis’ son and Eileen’s minor children as passengers.

While driving on a public street, Zabryna ran a stop sign and collided with another car which caused all of the passenger to be ejected from the golf cart. Every passenger suffered injuries, however, Eileen’s son, Devin, suffered a particularly catastrophic brain injury. This led to an eventual lawsuit.

The Circuit Court ruled that Luis owed the plaintiffs a duty of reasonable care which he breached and was negligent in entrusting the golf cart to his niece who negligently operated it causing the crash and injuries at issue. The Court further held that pursuant to the Florida Supreme Court, a golf cart is a dangerous instrumentality, and the dangerous instrumentality doctrine imposes vicarious liability upon the owner of a motor vehicle who voluntarily entrusts it to an individual whose negligent operation if it causes damage to another.

Ultimately, the Court awarded a total judgment of $50,100,000 (approximately $46,100,000 to Devin and approximately $4,000,000 to his parents).

IR-2023-185 (OCT 5, 2023)

The IRS warns of Art Valuation Schemes (Oct 5, 2023).

The IRS essentially issued a warning to taxpayers that they will be increasing investigations and taxpayer audits for incorrect or aggressively creative deductions with respect to donations of art. Additionally, the IRS is paying attention to art promoters who are involved in such schemes.

The IRS is warning taxpayers to exercise caution when approached by art promoters who are commonly attempting to facilitate the following specific scheme wherein: (i) a taxpayer is encouraged to purchase art at a significantly discounted price; (ii) the taxpayer is then advised to hold the art for a period of at least one year; and (iii) the taxpayer subsequently donates the art to a charity (often times a charity arranged by the promoter) and claim a tax deduction at an inflated market value, often significantly more than the original purchase price.

This increased scrutiny has led to over 60 completed audits with many more in process and has led to more than $5,000,000 in additional tax.

The IRS reminds taxpayers that they are ultimately responsible for the accuracy of the information reported on their tax return regardless of whether they were enticed by an outside promoter. Therefore, the IRS has provided the following red flags with respect to the purchase of artwork: (i) taxpayers should be wary of buying multiple works by the same artist that have little to no market value outside of what a promoter is advertising; and (ii) when the appraisal coordinated by a promoter fails to adequately describe the artwork (such rarity, age, quality, condition, stature of the artist, etc.).

Within the Notice, the IRS details the tax reporting requirements for donations of art. Specifically, whenever a taxpayer intends to claim a charitable contribution deduction of over $20,000 for an art donation, they must provide the following: (i) the name and address of the charitable organization that received it; (ii) the date and location of the contribution; (iii) a detailed description of the donated art; (iv) a contemporaneous written acknowledgement of the contribution form the charitable organization; (v) completed Form 8283, Noncash Charitable Contribution, Section A and B including signatures of the qualified appraiser and done; and (vi) attach a copy of the qualified appraisal to the tax return. They may also be asked to provide a high-resolution photo or digital image.

NEW YORK PUBLIC HEALTH LAW AMENDED TO PERMIT REMOTE WITNESSES FOR HEALTH CARE PROXIES (NOV 17, 2023)

An amendment to Section 2981 of New York Public Health Law was signed into law by the governor on November 17, 2023.

Section 2981 was amended to add a new subdivision 2-a, as follows:

2-A. Alternate procedure for witnessing health care proxies. Witnessing a health care proxy under this section may be done using audio-video technology, for either or both witnesses, provided that the following conditions are met:

  1. The principal, if not personally known to a remote witness, shall display valid photographic identification to the remote witness during the audio-video conference;
  2. The audio-video conference shall allow for direction interaction between the principal and any remote witness;
  3. Any remote witness shall receive a legible copy of the health care proxy, which shall be transmitted via facsimile or electronic means, within 24 hours of the proxy being signed by the principal during the conference; and
  4. The remote witness shall sign the transmitted copy of the proxy and return it to the principal.

SMALL BUSINESS SUCCESSION PLANNING ACT INTRODUCED (OCT 12, 2023)

On October 12, 2023, the Small Business Succession Planning Act was introduced to provide businesses with resources to plan successions, including a one-time $250 credit to create a business succession plan and an additional one-time $250 tax credit when the plan is executed.

Under the proposed Bill, the SBA will provide a “toolkit” to assist small business concerns in establishing a business succession plan, including:

  1. Training resource partners on the toolkit;
  2. Educating small business concerns about the program;
  3. Ensuring that each SBA district office has an employee with the specific responsibility of providing counseling to small business concerns on the use of such toolkit; and
  4. Hold workshops or events on business succession planning.

Pursuant to the proposed Act, the following credits would be available:

  1. $250 for the first taxable year during which the SBA certifies that the taxpayer has: (a) established a business succession plan; (b) is a small business concern at that time; and (c) does not provide for substantially all of the interests or assets to be acquire by one or more entities that are not a small business concern.
  2. An additional $250 for the first taxable year which the SBA certifies that the taxpayer has successfully completed the items described above.

Look-back Rule: If substantially all of the equity interests in business are acquired by an entity that is not a small business concern within three-years of establishment of a business succession plan or completion of such responsibilities (as the case may be) the credits will be subject to recapture.

Small Business Concern (defined under Section 3 of the Small Business Act): A business entity that (a) is legal entity that is independently owned and operated; and (b) is not dominant in its field of operation and does not exceed the relevant small business size standard (subject to standards and number of employees provided by the North American Industry Classification System).

Henry J. Leibowitz, Caroline Q. Robbins, Jay D. Waxenberg, and Joshua B. Glaser contributed to this article.

© 2023 Proskauer Rose LLP.
For more news on Wealth Management in 2024, visit the NLR Financial Institutions & Banking section.

One week until the final session! Register today for the Women in the Law Rainmaker Forum

The National Law Review is pleased to bring you information about the upcoming Women in the Law Rainmaker Forum hosted by KLA Marketing Associates.

1.24.14

When

For your convenience, 3 dates and times:

February 17 – Late Afternoon

Feburary 19 – Morning

Februrary 27 – Late afternoon

Where

Philadelphia / New Jersey / Virtual

Join us – a safe, intimate forum where Women in the Law “lean in” and access much-needed resources to develop a prosperous and rewarding practice. Make 2014 the year to take control of your career. 
Join for our popular Forum to:
  • Learn critical rainmaking techniques
  • Brainstorm opportunities
  • Dig deep into your business challenges
  • Tap skills/experience of others  

Four 2-hour sessions to change the

way you do business – and win business!

Special Pricing: $499* for all 4 sessions – – and more. Register now to claim your seat that will change the way you do business!

About the Trainer/Coach
Kimberly Alford Rice, Principal and Chief Strategist of KLA Marketing Associates, has successfully trained hundreds of lawyers to build and grow a prosperous book of business over the course of her 20+ year legal services advisory practice. She deeply understands how to engage the organizational and human factors that drive successful implementation and change through her work. To learn more, check out KLA Marketing Associates website.

How Lawyers Can Leverage LinkedIn to Build Their Practice, Part 1 of 2

The Rainmaker Institute mini logo (1)

I think we can all agree that building long-term, meaningful and influential relationships is foundational to a successful legal practice. People don’t hire law firms; they hire an attorney. The more people you connect with, the more opportunities you have to build meaningful relationships, and the more potential clients you can generate.

With over 225 million members in over 200 countries, LinkedIn has quickly become THE ‘go to’ business-to-business directory and the most popular social networking platform dedicated to professional business development.

Here are some of the top tips from attorneys who have used LinkedIn to their advantage and know they have gained new clients from its smart use:

1. Complete Your Profile! You must commit to do this. You can’t ever hope to get the benefits without this. Put in as much information about yourself as you can. Use the same keywords and phrases prospects would use to search for an attorney in your practice area on Google.

Sometimes just where you went to college or law school can drive business or referrals to your firm. I know plenty of attorneys who have generated referrals because they went to the same school as someone else on LinkedIn, or grew up in the same hometown. Creating a shared reality with a prospect can be a powerful step toward acquiring their business. Also, certain applications with LinkedIn require that your profile be at least 50 – 75% complete in order to benefit from them.

2. Upload A Photo. Don’t be shy here. Don’t think about whether it’s right or wrong, just do it. A profile with no picture is a bad thing. LinkedIn is a social network for business professionals so your photo should convey that. Stay away from the photo of you on the golf course or holding a glass of wine. If you don’t have a professional headshot, they are available from any photography business for a nominal fee.

3. Use The Headline Below Your Profile To Make People Want to Know More.

linkedin profile

When you set up your profile, LinkedIn uses your name, title or position as your headline, but you can edit this to make it more powerful. Try to think of your headline as your professional tagline. You have the opportunity to describe the type of attorney you are and the type of work you are currently doing. Do not make the mistake of listing more than two areas of law here, as you want to appear as a specialist. Specialists generate more referrals than generalists. Remember the phrase, “jack of all trades, master of none!”

4. Use The “Sharebox” Often. If you want to see the social power of LinkedIn, this is where you will find it. This area of LinkedIn allows you to add a brief update of what you are doing, any new professional certifications you have received, interesting cases or any other information you feel comfortable sharing. This is not a ‘chat’ site; it is for information that is professionally relevant.

In tomorrow’s post, I will share 5 more tips for leveraging LinkedIn to build your client and referral base.

Article by:

Stephen Fairley

Of:

The Rainmaker Institute