Show that You Care with Reception Area Reading
June 5th, 2013
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
May 15th, 2013
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
December 20th, 2012
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?
December 17th, 2012
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
November 23rd, 2012
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?
October 1st, 2012
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
September 19th, 2012
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?
June 14th, 2012
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?
June 11th, 2012
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
Lawyers: Beware Low Billing Rates
May 17th, 2012
Lawyers bill too little for two reasons. First, they believe that a lower fee will yield more clients. Alternatively, especially when they represent individuals and small business owners, lawyers feel sorry for their clients and end up billing what they think the client can pay — not what the lawyer is worth. Do not fall victim to either of these faulty arguments. Never, ever compete on cost Other lawyers may bill less for their services than you do, and you may fear losing business to these low-cost competitors. Don’t. Chances are good that these lawyers are not making a profit and will soon go out of business. You don’t want to join them. If I had excess capacity in my practice, I wouldn’t waste it by taking on legal work that loses money. This kind of “loss leader” work will only lead to more work of the same kind – unprofitable. It’s a dangerous spiral. I’d spend that time on face-to-face marketing activities before I wasted it on unprofitable legal work. Clients who shop for lawyers based on rates alone will always find someone who charges less. All things seeming equal, these clients will abandon you for a lower-cost alternative. You want to make sure that all things are NOT equal. Use your social and legal skills to earn the trust and loyalty of your clients. Once you’ve done that, cost is less important and you can bill rates that reflect your true value. Consider raising your billing rates I regularly advise my lawyer coaching clients to raise their fees — and none has ever complained that he or she lost business as a result. The profits on less work performed at a higher rate will always exceed the profits on more work performed at a lower rate. In fact, lawyers can even LOSE business if their rates are too low. There is a strong perception that higher rates equal higher quality — and vice versa. When I was an in-house counsel reviewing the rates of outside lawyers, my response to a low rate was never “I should hire him, he’s cheap,” but rather “I should avoid him, there must be something wrong.” Clients expect legal services to be costly Whether a client is the general counsel of a Fortune 500 company or a blue-collar worker in a small town, he or she expects that retaining a lawyer to solve a serious legal problem will cost a lot of money. They do not expect a “great deal” and a Best Buy or Wal-Mart experience. The key is to manage those client expectations by billing a rate based on fair — not discounted — market value for your services. If you feel sorry for people, do more pro bono work — where you charge nothing to those who cannot afford legal services. You might have a good heart, but do not use it as a reason to discount your regular rates. The only lawyer who might want to bill below market value for a short while is an absolute newbie. Otherwise, I recommend that my attorney coaching clients charge at least market rates for the service they provide. How to bill a higher rate Even better is the ability to bill above-market rates. To do this, you must identify some quality of your practice that strongly differentiates you from your competitors who are “just as good” at the law — something like personal skills, fast response time, a business/industry segment focus or a convenient location. As long as it’s not cost. The more you can differentiate your practice, the more you can bill. Originally published on Lawyerist.com Read More
Categories: Practice Management