LAW PRACTICE MANAGEMENT THE SCIENCE OF PERFORMANCE COMPETENCE

LAW PRACTICE MANAGEMENT THE SCIENCE OF PERFORMANCE COMPETENCE

About L. O. M. A. S. Ø Established 1979 Ø Oldest program at The Florida Bar Ø FREE Ø CONFIDENTIAL Ø Part of your Member Services Ø Staffed by experienced Legal Administrators Ø Mandate is to provide law practice management information and assistance to members 2

Legal Marketplace Surveys report that the #1 reason why lawyers are not promoted is: n LACK OF MANAGEMENT SKILLS n If you have hopes in the future of being promoted or becoming a managing attorney, you must have acquired management skills n Private Law Firm n Federal, State, or County Law Office n Judiciary n Legal Services (. org) n Corporate Legal Department 3

Law Firms, Government Law Offices, Corporate In-house Legal Departments n n When being considered for promotion, it is already assumed you are a good lawyer. Now, your management skills are being evaluated. Poorly trained managing attorneys result in high associate and staff turnover, low morale, loss of productivity, lower profits, and increased exposure to risk. n 33% associate turnover rate, nationally (NALP) 4

Why is it important to You? Associate? Partner? Solo? k s i R t n e m e g a n a M 5

What Kind of Management Skills n Financial Management Skills n e. g. , budget preparation, report analysis, controlling costs, etc. Project Management Skills n Decision-making Skills n Human Resources / Supervision Skills n Records Information Management / Managing Technology n How to Develop Workable Systems n 6

Management Challenges in the Law Office Marketing n Practice Management disciplines n Specialization n Technology n Succession Planning/Retirement n n For Law Firms, add two more Pricing Legal Services n Profits Allocation n 8

A Question of Balance Client Marketplace (COMPETITION FOR SERVICES) Profitability (Is this worth doing? ) Market for Staff (SATISFACTION) 9

The Road. . . Is paved with Good Intentions § No one sets out to be sued or grieved § You work hard for your clients § Achieve Balance in your life and career § Learn how to prevent risky actions, unhappy clients 10

How to Manage Your Time and Work 11

Managing Your Work And Your Time ü Time management seminars ü ü ü How to manage and track deadlines How to keep time records How to manage records (e. g. docket, files) How to develop and USE a conflict of interest checking system How to say NO 12

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Signs of a Management Breakdow n Is your office a catalyst for stress? n Chronic stress and chaos n No budgeting process n No planning: strategies and caseloads n No training/manuals n Poor records management, filing backlogs n Calendar/Task errors n Client complaints 14

The 7 Business Processes in a Law Office 1. 2. 3. 4. Production Marketing Personnel Systems & Technology 5. Finance 6. Communication 7. Management 15

1. Production Organizing to get the work in and get the work out 16

Production - Key Business Processes n n n n Intake Process Conflict of Interest File Opening Telephone Call Management Calendaring & Diarying File Closing and Archiving Records Management or Information Management 17

2. Planning/Marketing How to keep the work you have and; n Planning to obtain the work you want now and in n the future n The Marketing Plan is part of the Strategic Plan n Quality of operations affect Marketing efforts n Why we don’t market. . . 18

Key Components of a Planning Effort n Direction and Buy-in n If this cannot be defined – STOP HERE Realistic Objectives and Goals n Honest Analysis of Resources n Ability to Benchmark n Ability to Measure your Efforts n Staffing n Funding n 19

3. Communication s Greasing the organization’s wheels Not Another Did How? Why? Nobody The. Trouble knows Temp I seen Did Not By Huh? When? 20

The Communication Process n The need to define, document and distribute criti information: Risk Management, disaster preparedness & business resumption n Partnership Criteria n Policies, processes and procedures n Supervision and Limits and Boundaries n Orientation, Training and Mentoring n Culture n Client relations n 21

4. Personnel - Organizing the people n n n n n What kind of skills What kind of positions How much experience How many people Deployment Skills and Process Training Cross-Training Performance Measurement Rewards Morale 22

How to Manage People 23

Personnel – Hiring and Firing n At Will n Know how to interview n Check references n Keep up-to-date with labor laws n Bi-annual refresher seminar n How to terminate employment n She’s going to tell a story. . . 24

Supervising Others n Three cardinal rules 1. 2. 3. It is arrogant to believe that you can supervise others when you do not know what they do Agree to be managed Agree on how you work X X X NO Lone Rangers NO Confederation of Solo Practitioners “But, we’re different, our work is unique. . . ” 25

You Are Your Brother’s Keeper n 4 -5. 1 Responsibilities of a Partner or Supervisory Lawyer “. . . Shall make reasonable effort to ensure that the authorized business. . . , has in effect, measures giving reasonable assurance that all lawyers therein conform to the Rules of Professional Conduct. ” n The lawyer is responsible for the actions of his/her employees 26

5. Systems & Technology n n n n n Managing consultants Virtual offices What is the software supposed to do? What do our clients use? What does the competition use? Lease or Purchase Administration & Security Training, training and more training Benchmarking n Read at least one legal tech periodical 27

6. Financial Management: Organizing & Accounting for flow of money the Internal Financial Controls n Insurance portfolio n Timekeeping, Billing and Collections n Reports – what do you need? – n n n Productivity & Profitability Reporting Budgeting 28

Insurance Portfolio Professional Liability Insurance n Did you tell the truth on your App? n General liability insurance n Valuable data and papers n Fraud/theft n FF&E (furniture, fixtures, equipment) n Where are your inventories? n Benefits comprising 38% of payroll expense n 29

Timekeeping, Billing & Collections Why we keep time records 3. Record of the work Profitability/Productivity How we get paid n Does your bill tell the story of the work? 1. 2. The best form of a bill is the one that gets paid n Use the billing software to track the results of non-billable activities 30

About Trust Accounts n Fiduciary Accounting – Agent/Principal n What is an IOTA trust account? n IOTA vs. Separate Interesting Bearing Accounts n If you are holding client money, it must be in a trust account. n Familiarize yourself with Ch. 5, RRTFB. n LOMAS DVD - “Maintaining a TRUSTworthy Trust Account” 31

More About Trust Accounts n You must supervise the banker, accountant, bookkeeper n When practicable, valuable client property should be held in a Safe Deposit Box n The rules governing client money, govern the property n RRTFB 4 -1. 15 Safekeeping Property 32

Budgeting n Planning tool for the firm, n Also for your cases Fundamental component of the strategic plan and marketing plan n Budget Components n Revenue n Expenses n Cash Flow n Capital Needs n 33

Management: Pulling it all together 7. n Shared Vision and Goals n Agree to be Managed n n Maintain an External Focus Nail the Numbers n n Planning & Implementing Culture n Employee Relations n Conflict Avoidance n Client Relations n Risk Management 34

Compensation Systems “ You get what you REWARD ” • Rewards marketing, mentoring, etc. ? • Compensation system reward handing off work to the best person for the job? • Compensation system include rewards for keeping other people busy? • OR does it reward hoarding? • Does the lawyer keep clients happy? 35

Compensation Systems n Lock-Step n Partner retires but doesn’t tell anyone n Eat-what-you-kill n A computer runs the firm n Work hoarding, kills efforts to specialize n Objective/subjective n Based on numbers AND factors such as management skills, keeping clients happy, crossselling, etc. 36

Recommended Reading n ABA Bookstore: How to Start and Build a Law Practice by Jay Foonberg n Through the Client’s Eyes n Results-Oriented Financial Management n Lawyer’s Guide to Records Management n Lawyer’s Guide to Marketing n Compensation plans for Lawyers n 37

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