Too Busy? When to Hire Help

Most solos are all-to-familiar with the “feast or famine” roller coaster. Either you have too much work to comfortably handle on your own, or you are wondering how you are going to pay the bills. Today, I’d like to talk a little bit about a number of ways to successfully deal with the “feast” option. First of all, don’t panic. Too much work is a good problem to have. Put your situation into perspective. “Feast” is a much better problem for a solo to have than “famine.” You just need a plan. One way to handle the problem of too much work is to turn some of it down. You now have the luxury of becoming more selective about the work that you do or the clients that you work with. There’s a reason why successful lawyers tend to be happier lawyers. They not only make more money, but they can also be pickier about the matters and the clients that they accept. Look before you leap What if you are lucky and all of your work is work that you want to do for clients you enjoy? Don’t automatically decide to hire your first employee – an administrative assistant, a paralegal or another lawyer. Do some research first. Do you have a clear picture of the work that you will be delegating to someone else? Do you really know if there is enough work to keep that person busy full time? Take a step back and determine the exact tasks that could be delegated to someone else. Keep track of everything that you do over the course of a few days. I suspect you’ll be surprised to discover how you actually spend your time. The best use of your time is generally going to be practicing law, especially if you bill by the hour. After taking this inventory, assign the tasks to one of two categories: tasks related to office administration and tasks related to your actual caseload. Office administration can be easily delegated When it comes to administrative tasks, there are lots of options. You can hire college students, law students, virtual assistants or a colleague’s administrative assistant who wants to work some extra hours. These people will usually work for a relatively low hourly rate, keeping your overhead low. Caseload work requires more caution When business is good, solos often make the mistake of pursuing one of two romanticized visions. The first is hiring a young associate who can be groomed into a future partner. The second is merging with another solo and adding an ampersand to the firm’s name. Both visions often lead to trouble. Young associates can be fickle On its face, the “young associate” option is very appealing. You can leverage the associate’s time and make more money. According to law firm economics, the easiest way to increase profits is by leverage. You bill out an associate’s time at a level where the total revenue exceeds the associate’s salary and overhead. Those extra dollars all go to the firm’s bottom line. In reality, it usually takes much more time and effort to train and mentor the associate than you anticipated. But perhaps the biggest risk in this strategy is that the romantic dream of bequeathing the practice to your protégé can turn into a nightmare. How? When your so-called protégé decides that he or she wants to be the boss and opens his or her own law firm. To add insult to injury, you can bet that the protégé will attempt to steal some of your clients in the process. Solos must be carefully vetted While merging with another solo can minimize the training/mentoring problems, you can’t leverage this person as much because they’ll require a higher salary. And, do you really want to hire an experienced lawyer who has enough extra time to assist you with your caseload? I’d rather join forces with someone who has a robust book of business of their own. But that won’t solve your “busyness” problem. Contract lawyers are a better solution The solo attorney with too much work should consider hiring a part-time contract lawyer. With this alternative, you are not over-committed. If you don’t like the performance of one contract lawyer, you can easily try another. A good paralegal is even better Good paralegals or legal assistants can be worth their weight in gold. A well-trained and bright paralegal can do many of the tasks that a lawyer does. The beauty of this solution is two-fold. First, a paralegal’s time can be leveraged just as (or even more) profitably than another lawyer of any experience level. Second, a paralegal or legal assistant is less likely to jump ship and compete against you. A paralegal can go work for a competitor, but it’s unlikely that your clients would follow. Carefully consider your options When faced with a “feast” of too much work, don’t panic or rush into making a full-time hire. Take some time. Determine what you need, how often you need it, and which option of meeting that need will be most profitable. Originally appeared on Lawyerist.com’s law firm hiring & staffing portal Read More
Categories: Practice Management

Show that You Care with Reception Area Reading

Leo’s post last month on Lawyerist complaining about opposing counsel’s failure to provide coffee and snacks reminded me of my biggest pet peeve when visiting a law office – a lack of decent reading material. Most law firms forget that their reception area is a component of its client service. What kinds of materials does your law firm provide for clients cooling their heels in your reception or waiting area? Most firms underestimate the importance of reading material, and therefore fall short. Diversion can be important Most lawyers are very busy during normal office hours and, as a result, sometimes run late for client appointments. When the inevitable wait occurs, what do you have for clients to do to occupy their time? When I’m kept waiting at the doctor’s office, I’m usually a lot more pleasant to deal with if I haven’t spent the time bored out of my mind and mulling over my aches and pains. Many of your clients arrive at your office already irritated by their legal problems. There is no need for you to annoy them any further. The old standby is to provide your clients with reading material that will keep them diverted while they wait. Take a look at your waiting area to see what’s available. Here’s what I’ve found while waiting in well over a hundred law firms of all shapes and sizes over the past 30 years. Nothing at all in the reception area Occasionally a law firm has absolutely nothing to read in the waiting area – often on the (misguided) advice of their decorator. While this may be esthetically pleasing, it leaves clients twiddling their thumbs and feeling aggrieved with you for the wait – especially when their phone battery is low. Something mind-numbing The next worst option is the law firm that is full of itself. These attorneys provide a captive audience with fancy brochures detailing the firm’s “thrilling” history and “unparalleled” practice expertise. While this might be better than nothing, I really don’t care. Perhaps just as boring are the intellectual property firms that proudly display arcane scientific journals for my casual amusement. They’re kidding, right? The local daily newspaper A local daily newspaper is the most frequent offering. This option at least gets a passing grade, but not a very high one. An afternoon client may have already seen the paper earlier that day. Perhaps the bored client can then read all of the horoscopes for that day or attempt the crossword? Other newspapers and magazines Now we’re getting somewhere. I’m a news junkie who rarely has the luxury of time to read The New York Times or The Wall Street Journal. When I see either on the table in the waiting area, I sometimes actually hope that the person I am calling on is running late. A sampling of recent magazines is also good. How about The New Yorker, Time or Forbes? Even People magazine can be a guilty pleasure for someone who reads the headlines in the grocery line but is too embarrassed to actually buy a copy. And make sure your popular magazines are up-to-date. Have the issue about Kim’s and Kris’s final divorce settlement, not their wedding. Big screen TVs It is more common these days to find a big screen TV in the reception area. Although it looks impressive, it can be risky. Should the channel be set on Fox News or MSNBC? Dr. Oz or Ellen? Regardless, make sure the volume is off and the subtitle switch is on. Others who would rather read or work usually prefer silence. Keep your clients occupied in the reception area Just think about the last time you visited your dentist and the only thing to read while you waited in the reception area was Highlights. How did you feel? About as good as your clients will feel if you ignore my advice. Originally published on Lawyerist.com Read More
Categories: Practice Management

Client Service: Happy Clients Can Set Lawyers Apart

It’s not always easy to convince lawyers that they should care more about client service. Too many genuinely believe their legal expertise is paramount—the only thing that truly matters when establishing their law practice’s reputation. But lawyers should not underestimate the impact of how they treat their clients: It’s the only part of the lawyer-client experience that we can control, and the only thing that can be accurately evaluated and appreciated by any client. Continue reading this post on www.attorneyatwork.com Read More
Categories: Practice Management

Billing by the Hour: We Didn't Always Do It That Way

Billing by the hour is just one of many established customs within the legal profession. Why do we do it that way? I’ve always been amused by the answer to that question. Inevitably, the answer is, “because we’ve always done it that way.” End of discussion. In the early 1980’s, when I first entered the legal profession, billing by the hour was well ingrained as the standard for all but a handful of practice areas. As a young associate in a large law firm, the thought never even occurred to me that attorneys could bill clients in any other form. Now, of course, I know better. I am very familiar with the flaws of the hourly rate system. I suspect you are, too, since the legal blogosphere is full of posts on this topic. Instead, I’d like to talk a bit about how the profession got itself into this mess. Despite what people think, “we didn’t always do it that way.” A Short History of Legal Billing A century ago, lawyers rarely billed by the hour. Instead, they billed in a variety of different manners: fixed fees, retainers, estimated “value” and contingency fees. Ironically, these are many of the same methods being touted today as“alternative.” As corporate America’s demand for legal services grew in scope and complexity in the 1960s and 1970s, it became more difficult to determine a fixed fee, a retainer or “value.” At the same time, it became more difficult for clients to understand exactly what they were purchasing. Enter the “bill by the hour” method. Initially, time records were only one component used to determine final bills. However, by the end of the 1970s, time records became the only way to determine final bills. This change was welcomed by all. Lawyers liked it because it was easy to predict revenue and profits. Clients liked it because it was easy to comprehend what they were buying. The Times They Are A’Changing Even lawyers without much business sense were soon able to figure out that the more hours they billed, the more money they made. This gave rise to law firm minimum-billable-hour requirements. You know the rest. This created an incentive to spend more time than necessary on matters and, at times, to engage in fraud by “padding” hours. Here’s a bit more history. Before billing by the hour became the standard, guess what the ABA considered to be a full year’s-worth of billable hours for a full-time attorney? In 1958, it was 1,300 hours. Those “good old days” were, in fact, pretty good! The next time you and your colleagues are commiserating at happy hour about the tyranny of the hourly rate, remember this. We didn’t always do it that way. There are a wide range of attractive alternatives. Fifty years from now, perhaps the billable hour will be the exception rather than the rule. Read More
Categories: Practice Management

Solos: Do You Really Want a Partner?

In the legal profession, there are many solo practitioners. The ABA estimates that half of the country’s lawyers “hang out their own shingles.” Over the course of a career, most of these solos occasionally give serious thought to the idea of joining forces with another lawyer. Such a decision should never be rushed. It should always be well-thought-through. Continue reading this post at www.lawyerist.com Read More

Signage for Solos

I recently received a call from a former lawyer-coaching client of mine seeking marketing ethics advice. He’s a solo practitioner and plans to relocate to a new office building. In the new location, he will office share with two other solos. His question: What kind a signage is appropriate when three solos are sharing one office at the same address? Continue reading this post at www.lawyerist.com Read More
Categories: Practice Management

Client Service: Are Your Clients Really Satisfied?

If you are like many lawyers, you assume your clients are satisfied. Oftentimes, three reasons support their assumption. Their clients don’t complain, they pay, and they come back. Each of these answers seems reasonable as an indication of client satisfaction. In reality, however, they provide little support. Continue reading this post at www.lawyerist.com Read More
Categories: Practice Management

A Personalized Cover Letter Should Accompany Legal Bills

Do you include a cover letter when you send out your monthly legal bills? Most of you do, I suspect. In my previous life as an in-house lawyer for more than a dozen years, I reviewed more outside legal bills than I care to remember. Certain things stick out. Continue reading this post at www.lawyerist.com Read More
Categories: Practice Management

LegalZoom: Good or Bad News for the Legal Profession?

Online documents are here to stay. Lost in all the hype regarding the Facebook IPO is the fact that LegalZoom filed for an IPO in early May. For those of you who may not have heard of LegalZoom, it is perhaps the largest online legal document preparation services for estate planning, trademarks, corporations and others. Some very impressive statistics were contained in its filing. In the past ten years, LegalZoom has had more than two million customers. Its revenue in 2011 was $156 million. Continue reading this post at www.lawyerist.com Read More

When is a Lawyer Like a Barber?

When it gets right down to it, what lawyers do is all about clients. Those wonderful, awful, charming, annoying, challenging and gratifying people who actually pay you to do your work. So we are declaring it “This Business of Clients” week here at Attorney at Work. You will receive some new and some of our best encore posts this week, designed to give you and your desk-side manner a quick refocus. Good for you. Good for them. First up? Roy Ginsburg and the guy who cuts his hair. Continue reading this post on attorneyatwork.com Read More