What Law Firms Can Learn From A Career In Software Development About Retaining Employees

According to one attorney-turned-developer’s calculations, after 43 year of employment, at age 65, the software developer will have saved $2,102,010 by investing in a fourth of his take home pay minus student loans.

What’s the figure for an attorney? Almost a million dollars less than the software developer ($1,268,404).

So how did William Ha, former civil litigator, come to this conclusion?

First, an attorney starts his career later and with higher student debt—a lot higher. As a result, the take-home pay that an attorney is able to invest over the next 40 years is both lower and delayed.

Of course, Ha acknowledges that each job has an “X Factor” that accounts for non-monetary yields. For example:

“The lawyer can make partner at a rather large, making a base pay of say $1,000,000 a year, and the software developer can take a company public as an earlier employee if not CEO, cashing in on his own millions,” writes Ha.

There are a variety of unknowns that affect this calculation, but Ha believes that the software engineer still wins out. A software engineer gets paid a pretty penny for any side work she completes (and a lawyer is not allowed to offer the same services).

In addition, law firms cannot go public based on ABA Professional Rules. Furthermore, to maintain the professional independence of a lawyer, no lawyer or law firm can share legal fees with a non-lawyer, explains Ha in “Economics of Software Development v. The Practice of Law – A Rough Look at the Professions”.

So, whereas law firm behemoth, Baker and McKenzie, brings in $2.54 billion in revenue in 2014, with over 11,500 employees (roughly $173,000 per employee—if they can shares these legal fees), Facebook for the same year, brings in 12.466 billion with 6,337 employees, creating $1,700,000 per employee.

In software development, it certainly pays to work for “the man.” For lawyers, it pays to be partner.

Ha moved to Los Angeles after leaving civil litigation and worked for an iOS app developer (via ATL).

“There, I saw young people my age and younger 1) making a good salary, 2) having fun at work, 3) leaving on the dot at 5pm, and 4) not having to deal with a brutal job market. This was the first exposure to software development (aside from my preconceived notions). Is this real life? I wanted to be part of this somehow…”

He converted.

As a law firm manager, does that mean you should quit (and encourage young associates to quit) to join the ranks of Facebook employees?

No, not necessarily. What Ha points out is that so much of what makes a career “worthwhile” is (1) passion and interest in the field; and (2) lifestyle.

To retain your law firm associates, it’s important to remind them why they decided to become lawyers in the first place. Perhaps it was passion for the law. If so, allow your young associates to take on pro-bono cases that they’re passionate about.

If your young associates are keen on making partner, enroll them in business development courses. Encourage them to network at professional events or join legal associations. Host dinners for your community businesses and mentor your young associates in the art of wining and dining potential new clients.

Finally, if your associates are starting to burn out—much like Ha—provide more flexible hours or a more comfortable workplace. There are a variety of innovative workplace practices that your firm can implement that don’t cost a dime, but improve the morale and the retention rates of employees (read about some suggestions here).

When interviewing potential new associates, hiring partners asks hard questions about why these law school grads what to join the firm. But, it’s equally valuable to investigate why young talent is leaving.

-WB

A growing number of firms have created non-partnership/career associate tracks to address client’ demands for value. These associates work fewer hours, and are paid lower salaries than partner-track lawyers. So how then does the firm incentivize these lawyers?

Balancing compensation in a firm that embraces multiple associate tracks is tricky. Keeping non-partner and partner tier associates happy and committed to the firm requires a compensation plan that fairly reflects the efforts, hours and status of each.

Learn more about attracting, retaining and compensating career associates with an eye towards loyalty, fairness, and firm profitability in C4CM’s webinar “Re-inventing Associate Compensation: Pay Structures that Incentivize, Reward & Retain Non-Partner Track Attorneys” on Wednesday, June 24, 2015 at 2:00 PM to 3:15 PM Eastern.

You will learn how to:

• Use creativity, rather than conformity as a criteria for non-salary rewards
• Utilize proven methods leading firms are using to create firm-building bonus structures for these associates
• Build associate loyalty and reduce turnover
• Increase associate awareness of firm business when they are not tasked as rainmakers
• Evaluate career associate performance in addition to hours

Law Firm Dress Code: Study Shows Formal Clothing Increases Creativity

Law firms tread a fine line between the traditional and the innovative.

You want to be a pioneer in law and policy, but have a predicable, steady-hand in practice.

However, amid talk of flexible schedules and alternative workplace management, long gone is the image of the three-piece suited lawyer behind a mahogany desk in offices with nautical décor. These days, a lawyer is only as good as his or her computer screen or case management software.

Founding partner at Quinn Emanuel Urquhart & Sullivan says he’s convinced that “sartorial freedom helps nurture legal genius” (via the careerist):

“What we [litigators] do is an exercise in creativity. You have a set of facts and the law–and you have to be creative with the two. Dressing casually improves our creativity.”

Urquhart believes that casual dressing helps break down barriers, so that young associates are “more likely to speak up” and “not be so intimidated by the trappings of power.”

“The only dress code we have is that you to have something between your feet and the carpet—and that’s because our insurance company requires it!”

But, before your firm succumbs completely to avant-garde open-plan workspaces or flip-flop Friday, consider a new study in the journal Social Psychological and Personality Science, titled “The Cognitive Consequences of Formal Clothing.”

In it, scientists found that when people felt more formally dressed as compared to their surrounding peers, they tended to think more creatively. In fact, one might glean from this article that traditional attire led to more innovative work, not alternative dress codes.

Offices around the world have been touting “casual Fridays” in an attempt to appeal to a younger generation. It has been assumed by employers and academics alike that the more comfortable the employee, the more productive they will be.

But, in a series of controlled experiments, scientists have now found that it is formal dress—as opposed to more casual attire—that makes people more likely to think of themselves as competent and rational.

In addition, people who felt more formally dressed than the people around them were more likely to think abstractly, “by that we mean, basically, holistic or big-picture thinking—so not focusing on the details but seeing bigger ideas, seeing how things connect from a more high-level perspective,” explained Michael Slepian, first author on the paper.

For example, in the experiment (via CNN):

“Slepian asked college students to come to the lab with two sets of clothing: an outfit they’d wear to a job interview, and an outfit they’d wear to class. (These were college students, so even the formal clothing they brought wasn’t too fancy—more like business casual, Slepian said—while the casual outfits tended toward shorts and flip-flops.) Some of the students were told to change into their interview clothes, and others were told to change into their casual ones. Both groups then answered two questionnaires, the first one asking them to rate how formally dressed they felt in comparison to the other students. The second was meant to determine their cognitive-processing style, asking them whether a given item fit within a particular category. For example, abstract thinkers—again, these are people who are more focused on the broader, bigger picture—would be more likely to answer that, sure, a camel could belong under the ‘vehicle’ category; concrete thinkers, on the other hand, would disagree, sticking to a stricter definition of the category.”

In law firm management, the ability to have big-picture thinking is crucial to firm leaders and case managers.

It’s not just that formally dressed employees are more creative, they also command more respect by their counterparts. Not only do you have more faith in yourself, others take note of your serious attire and have more confidence in you, as well.

In this particular experiment, a viable alternative explanation is that the novelty of dressing up—if it’s not something you are used to—contributes to these cognitive consequences of clothing. Even still, this argument stays in favor of Fancy Friday, rather than a casual one, for law firm environments.

So, for those more junior associates, it seems to ring true that you must dress for the job you want (and probably also the job you already have).

Law firms looking to get creative should focus on compensation, not clothing. Get some tips from C4CM’s webinar on Wednesday, June 24, 2015: “Re-inventing Associate Compensation: Pay Structures that Incentivize, Reward & Retain Non-Partner Track Attorneys.“

During this interactive session, expert faculty will examine key factors in attracting, retaining and compensating career associates with an eye towards loyalty, fairness, and firm profitability. Plus, they’ll delve into examples of bonus programs for these non-traditional associates, and how to figure in merit, productivity and creativity into their compensation. You will also learn how to:

• Use creativity, rather than conformity as a criteria for non-salary rewards
• Utilize proven methods leading firms are using to create firm-building bonus structures for these associates
• Build associate loyalty and reduce turnover
• Increase associate awareness of firm business when they are not tasked as rainmakers
• Evaluate career associate performance in addition to hours

-WB

Why The Apple Watch (& Time Management At Your Law Firm) Works Best In Pairs

So it’s here: The Apple Watch. What’s the verdict?

“It’s a gorgeous piece of hardware with a clever and simple user interface and some fine built-in functions. It already has more than 4,000 third party apps. I will probably buy one,” writes Walt Mossberg after wearing a demo Apple Watch for more than one month.

“But it’s a fledgling product whose optimal utility lies mostly ahead of it as new watch software is developed. I got the strong feeling that third-party app developers taking their first swing at the thing simply hadn’t yet figured out how best to write software for it—especially since Apple, for now, is requiring that watch apps basically be adjuncts of iPhone apps.”

Because, after all, the best hardware comes with a variety of well-written, complimentary software.

It’s why, for example, in law firm management the best time savers are not thanks to Timex, rather thanks to coupling incentive pay plans with supporting innovative work practices.

Why? According to experts, the secret to project management has nothing to do with time at all. In fact, most managers speed past deadlines.

Forget the schedule. Key filing or court deadlines aside, it’s more important to be goal- and product-oriented than time-oriented.

“Why don’t more project managers sound an alarm when they’re going to blow past their deadlines?” ask Joe Knight, Roger Thomas, and Brad Angus for the Harvard Business Review Blog.

“Because most of them have no earthly idea when they’ll finish the job. They don’t even think it’s possible to know. Too many variables. Too much that’s out of their control.”

It’s true, law firm managers should focus more on what keeps the client informed and happy rather than exactly how long it took you to get there. Unfortunately, the billable hour and client satisfaction are inextricably linked in legal services industry.

For some companies, the Harvard Business Review advice may be sound. “If your customer doesn’t think you’re late, then you’re not late,” it states.

But, if the equity partner thinks you’re late, then you’re late. And, if the judge thinks you’re late, then you’re really, really late.

So, is time management a strategic variable that law firm managers can manipulate at all?

It turns out, a not-so-recent study from 1997 shows that innovative employment practices—incentive pay, flexible job assignments, and higher job security—increase employee productivity. Although employees may be in a time crunch to write that legal brief, those who work for firms providing non-traditional working hours or environments to do so are more efficient and effective at their job.

The study published in the American Economic Review by Ichniowski et al. investigated the productivity effects of innovative employment practices using data from a sample of 36 homogeneous steel production lines owned by 17 companies.

“The productivity regressions demonstrate that lines using a set of innovative work practices, which include incentive pay, teams, flexible job assignments, employment security, and training, achieve substantially higher levels of productivity than do lines with the more traditional approach, which includes narrow job definitions, strict work rules, and hourly pay with close supervision,” write the authors.

In addition, these innovative employment practices tend to be complements. Essentially, optimal incentive structures—like higher employment security but lower salaries, or higher training couple with incentive pay—come in pairs.

“That is, workers’ performance is substantially better under incentive pay plans that are coupled with supporting innovative work practices—such as flexible job design, employee participation in problem-solving, teams, training to provide workers with multiple skills, extensive screening and communication and employment security—than it is under more traditional work practices.”

So, if your law firm can’t pull back on its billable hours or push forward its many deadlines, at least it can manage the time of and human resource policy for its employees.

Consider implementing flexible scheduling, work-from-home policies, or other innovative management practices. Give your employees the opportunity to diversify their workload or work on a variety of departmental teams.

That doesn’t mean your attorneys won’t appreciate the Apple Watch as a firm gift during the holidays. In fact, as Mossberg continues to tout Apple’s genius: “While testing the watch, I was able to try it during a faux check-in at a W hotel in Washington, D.C. As I walked in, my room number appeared on the watch, and I was able to breeze by the front desk, go right to the room and use the watch as a key.” Undoubtedly your traveling lawyers will still benefit from quick-fix gadgets.

But, in the end, the more choices you offer your employees, the more hours they will bill—and happily—for your firm.

Not sure where to start? Check out ideas for innovative management practices for law firms here.

-WB

Reference: Ichniowski, C., Shaw, K., & Prennushi, G. 1997. The effects of human resource management practices on productivity: A study of steel finishing lines. American Economic Review, 87: 291-313.

How “Perfect” Is Toyota’s New Hydrogen Fuel-cell Car? Why Law Firms Should Pay Attention

The perfect car. An Aston Martin Vanquish? Bentley Continental GTC? How about the Rolls-Royce Wraith?

Nope. Not even close—at least, that’s what theoretical physicist and best-selling author Dr. Michio Kaku thinks.

According to Kaku, Toyota has just developed the perfect car, but it’s not quite what you’d expect. It won’t break the bank or bring home any super models. However, it might just save the world.

At the Consumer Electronics Show on Monday, Toyota talked about its new hydrogen fuel cell vehicle that combines oxygen and hydrogen to create electricity, called the Toyota Mirai.

Priced at a mere $57,000 and available commercially later this year in California, the Mirai is unique in that it emits water, not exhaust or fumes, and still sports impressive power. The car runs for roughly 300 miles and has the ability to blow your mind and your hair back by going from 0-to-60 MPH in nine seconds.

Unlike hybrids or cars with electric batteries, hydrogen tanks can be refilled in three-to-five minutes. About the same time it takes to comb your wind-blown hair in the rear view mirror.

According to GeekWire, Kaku believes four requirements create the “perfect car.” Not only do all four characteristics describe the Mirai, but each of these attributes also describes perfect law firm management:

1. Mass Market

The perfect car uses a fuel source based on an element that’s the most plentiful in the universe: hydrogen.

“Contrast that to oil,” Kaku said, writes GeekWire. “Nations will kill to secure supplies of oil.”

Like transportation, law firms also provide life-altering services to society. Law firms today must be more mass market—that is to say, offer a variety of expertise with flexible service options.

In fact, the average client has 4 major practice needs and 5 minor, but measurable, needs. Yet, on average a primary provider delivers only 1.8 practices to a single client—meaning most law firms deliver one, and a handful service 2 practice areas.

So, what are law firms to do when so many cross-selling initiatives fail, or fall on deaf ears? Two words…origination credit.

Stop saying, “There are no opportunities with this client outside of my practice area,” or “We don’t handle that type of law.”

More than hydrogen, some might argue that lawyers are the most plentiful profession on earth. Which is why your firm must position themselves appropriately in this highly competitive marketplace. That means cross-selling services and adding practice areas.

Take C4CM’s audio course, “Law Firm Origination and Cross-Selling Credits: A Guide to Your Firm’s Future Success, looks at the key to successful cross-selling initiatives—how to turn selling into a team sport, and manage the origination that ensues,” to learn more about this innovative business practice.

2. Streamlined Operations

The perfect car has as few moving parts as possible.

“In a hydrogen fuel cell car, the engine has no moving parts, whatsoever,” Kaku said, according to GeekWire.

The same can be said for the perfect law firm. A stiff hierarchical system might be slowing you down. Assign casework to the most qualified team of lawyers, but don’t overstaff cases just to overbill clients.

The recent growth in in-house counsel means your firm must stand out and meet market demand—that demand calls for the end of traditional hierarchical billing models and more personalized attention at the partner-level—stop delegating work to inexperienced associates, knowing that top ranks will only give a brisk review.

The best way to ensure streamlined operations is implementing training programs for support staff and associates. You’ll have fewer moving parts and higher-quality delivery of services after strict and structured training schemes.

Because, in the end, sometimes the most effective teams are the smallest ones.

Need help? Take C4CM’s audio course, “Legal Support Staff: Revamp & Reassign Support Services for Max Profitability & Productivity.”

3. Idealist

The perfect car emits nothing but water.

“The word ‘smog’ is going to disappear from the dictionary because we are going to be entering a new age,” Kaku said, writes GeekWire.

Young associates are idealistic. This can be a positive quality. It’s important to mentor younger associates so they understand the practical implications of practicing law.

At the same time, embrace this idealism. Take some “unwinnable” cases because they take the “right” position. This will boost morale and serve as a reminder to the higher purpose of the legal profession.

Get some ideas for training programs with C4CM’s audio course, “Integrating Legal Mentoring With Law Practice Management.”

4. Affordable

Finally, the perfect car is one that is friendly to the consumer, writes GeekWire.

“Usually hydrogen cars are priced at hundreds of thousands of dollars, way beyond the pocketbook of the average person,” Kaku said. “But this car, we’re talking about the neighborhood of $50,000. As mass production, competition, and economies of scale begin to kick in—and as governments begin to subsidize the creation of refueling stations — you’re going to see that cost drop even further.”

The perfect law firm also provides affordable prices. Affordable doesn’t mean redrawing the bottom line at your firm from black to red. It means flexibility.

The rise of alternative fee arrangements is not necessarily a “win” just for the consumer. It can be a “win” for your firm, as well. With proper structuring, you can increase your client base, client loyalty, and caseload while providing accessible prices.

Need help? Take C4CM’s audio course, “Structuring Sustainable and Profitable Alternative Fee Arrangements (AFAs).”

With these four requirements, Kaku is satisfied. But for firms, there’s one more bonus characteristic.

Toyota also announced, reports GeekWire, that it would make all of its 5,680 patents related to fuel cell technology royalty-free to anyone in an effort to drive more innovation. This means fuel cell technology can now be available to anybody who wants to build on it.

Every firm should practice a bit of probono work.

The combination of innovation and affordable services? Now that’s a model for cars (and firms) worth driving forward.

-WB

Twitter To Add “Buy Now” Button? How Your Firm Can Profit From Social Media

Twitter may well become the Internet’s next online shopping platform.

For the first time, a “Buy now” button appeared on multiple tweets this month, all of which included products that link back to a shopping site called Fancy, reports Mashable.

The button only appears on Twitter’s mobile site, not its web version, and the company itself has yet to comment. But, allowing this sort of third-party link to shopping services isn’t at all that surprising.

“A law firm could develop landing pages for ‘simple legal services’ at flat fees and run ‘Buy Now’ ads on Twitter. The Twitter ad schema would enable ultra focused ads to reach locales and various demographic groups,” writes Kevin O’Keefe on a Real Lawyers Have Blogs post.

Sound farfetched? Not really. It’s already happening.

“I would never have dreamed lawyers would buy pre-written blog posts, sell a half hour of their time for $50 per hour on an a legal matching site, sell services via Groupon, or pay $90 per click through on Google Adwords,” admits O’Keefe.

But law firms do, and have.

Even if Twitter doesn’t rollout this new service, there are plenty of other reasons law firms should use social media.

Law firms, LexisNexis, and client management solution providers are just a few of the many legal services groups taking advantage of Twitter. LexisNexis does a great job at using Twitter to build relationships and enhance their visibility and reputation among customers.

LexisNexis has over 26 thousand followers on Twitter. And there’s no wonder why. Its posts are readable, interesting, and we’re all vying to be their next re-tweet.

Taking notes by hand (w/ pen & paper): A must for lawyers ‪http://bit.ly/1mWSKRY via ‪@lawyerist ‪@samglover

Blogger Kevin O’Keefe talks about the many positive takeaways from being re-tweeted by some of these bigger names in legal services:

1. “I feel an enhanced relationship with the companies and their executives.
2. I am more apt to speak positively about the companies and their work—when deserved.
3. I begin to tweet things they blog or share on Twitter. I am more apt to reach out to the companies on ideas.
4. I view these companies as more innovative and social. While most of the people in the legal profession, including law firms and companies serving the legal profession are slow to adapt to a real social presence, these companies are proving they understand the future of social.”

The last reason being no small thing.

Read more about how to use Twitter effectively as a law firm or legal services entity on O’Keefe’s Real Lawyers Have Blogs.

Twitter is just one social media tool of many. And even if you would never do the same, if you consider it nearly unbelievable, as many as 56 percent of consumers and 72 percent of minorities who searched for an attorney in the past year reported doing so via social media, according to a study conducted by The Research Intelligence Group.

In fact, over one-fifth of survey participants went so far as to consult the social media pages of the specific lawyers or firms that they were considering during this search for legal representation.

So whether or not shoppable tweets are on their way, there’s already more than one reason for law firms to use Twitter.

-WB

How can you maximize the potential of social media while ensuring the appropriate use of intellectual property and customer information? What can counsel do to proactively protect brands from infringement by social networking website users?

Listen to C4CM’s audio conference “Copyright and Trademark Enforcement in Social Media: Policing and Protecting Against Brand Infringement” and learn about the potential trademark, copyright, and privacy issues presented by the use of Twitter, Facebook, and Pinterest, and best practices for the protection of intellectual property and privacy on social media sites, including:

• Copyright and Trademark Enforcement in Social Media
• Social Media and Defamation, Patent, Copyright, Trademark and Trade Secret
• Social Media and IP Policies You Need Today
• Trademark Infringement Threats on Twitter, Facebook and Other Social Networking Websites
• New Challenges Posed Both to Brand Owners and Users

How To Increase Revenue Per Lawyer At Your Firm

Is your firm struggling to increase revenue per lawyer?

Revenue per lawyer can be an indicator of a firm’s overall financial well-being. By developing an internal culture of business development, your firm can begin to generate more revenue. Nevertheless, not all employees find it easy to build client loyalty, manage expectations, and generate client referrals.

Client satisfaction alone does not translate into future business.

Lawyers must be proactive in at least two areas: (1) explaining legal services of the firm; and (2) providing value where other legal services have failed.

First, clients, in order to make referrals, need to know the breadth of services available at a law firm.

For example, a firm may have provided a client with labor and employment legal services to a technology start-up. This start-up may have a business partner in need of intellectual property legal aid, but not realize the same firm also offers this service.

Prep your lawyers on how to identify and maximize cross-selling opportunities. This may require a script prepared in advance for your lawyers to read to clients about the range of your legal aid. It should also include background research into the business needs of your clients and their industry.

Second, clients, in order to remain loyal, need to know the breadth of customization of services available at a law firm. So, for example, your firm may be willing to offer alternative fee arrangements, such as a fee deferral system.

Fee deferral systems or contingency arrangements are especially important today amid the growth of technology start-ups.

“Think about it. You’re basically saying you’re going to stand behind your client and you’re going to hope that they can succeed and if they don’t succeed, you’re not going to get paid,” explained lawyer Debbie Weinstein of her client-focused business strategy at LaBarge Weinstein LLP to Law Times.

“That builds a lot of trust, a lot of integrity, and it also builds a common bond. The client says, ‘You know what, these professionals actually think I can make it and they’re not looking to get paid before anyone else.’ That builds long-standing, great relationships, and we have multiple entrepreneurs who come back to us every time they start a new business.”

Not all firms are willing to take such risks. But, if your firm is among the few, it may carve out a niche of competitive advantage that is desperately needed to get ahead in the legal services industry.

Finally, don’t let your clients out-tech your firm. Learn how to utilize technology to support and accelerate key client development activities.

For some specific ideas and resources, listen to C4CM’s audio guide “Increasing Revenue Per Lawyer: Creating a Healthy Culture of Business Development.”

Time to target better business practices, in addition to better legal ones. Innovation is the first step in increasing revenue per lawyer.

-WB

A To F: Alphabetical List Of Outdated Legal Technology

We’ve already complained about Luddite lawyers.

Technology is not only a pragmatic requirement of the practice of law; it is now an ethical one, too.

If your IT Department isn’t already the most integral and important part of your firm, it’s like you’re falling behind. Furthermore, if you use any of the following items on a day-to-day basis, it’s like your operations are as outdated, as well.

Eliminate some of these machines and office mores to get back on track.

“A” for Associates.

Associates are on the decline, and law firm employees on the rise.

Associate compensation models are changing as the legal marketplace becomes overpopulated with a generation of lawyers with very different workplace attitudes and expectations.

Firms are recognizing the growing obsolescence of the traditional lockstep model and are taking steps to rework it or replace it. Firms now have an opportunity to be much more creative in how their attorneys are paid and to use compensation as a way to drive long-term value. To create long-term value and retain good attorneys, a firm first needs to design a strong, coherent, and attractive strategy.

Rather than firing secretaries or de-equitizing partners, Greenberg Traurig law firm has created a new strategy for hiring associates in the form of a “residency program.” Firm managers view this program as a way to attract talented associates without having to endure the costly and risky hiring process. Also, it allows junior lawyers to sign on who may not have made the cut in the first place, reports Law21.

In addition, junior lawyers work case matters without billing their work at the high rates clients have come to expect. Sitting on conference calls and gaining on-the-job training, these “resident” attorneys gain the job experience needed to succeed in the future and sustain life in an over-saturated market today.

Greenberg is simultaneously creating a new non-shareholder-track position called the practice group attorney, similar to the positions at law firms Kilpatrick Townsend & Stockton; and Orrick, Herrington & Sutcliffe. 

The age of the Associate is over.

“B” for Binders

Why are you till making copies, printing out transcripts, and creating binders? Sure, every once in awhile, there’s a need for a hard-copy backup binder. But, it’s time to go digital.

Papers can be scanned, digitally stored, text-recognized, and then made searchable to improve the efficiency and cost-effectiveness of your law firm.

Binders are out, and electronic case material software—MyCase, Amicus Attorney, AdvantageLaw, LegalFiles, and OneNote—is in.

“C” for Conference calls

How many people really benefit from conference calls? Already, it’s impossible for more than one person to speak, and—often—people accidentally speak over one another.

Is a conference call more efficient than a memo? Do five people really need to bill the client for the same call?

Conference calls can easily be replaced with a quick person-to-person conversation, memorandums circulated over email, lists distributing work product, or—for the advanced law firm—discussions over a wiki (Learn how to create one here).

Ditch the conference call and develop your social capital at in-person conferences instead.

“D” for Dictaphones

Della may have used a Dictaphone for Perry Mason, but outside the world of black and white television is the real world of iPhones and Macbooks.

Your smartphone, tablet, and computer is capable of recording and even transcribing audio. So why are you still using cassette tape recorders? The Dictaphone should die in a fiery death, the app Dragon Dictation, however, is worth its weight in Silicon.

“E” for E-mail

Experts agree, e-mail is outdated. A meeting-less morning, a conference-call free afternoon, or e-mail-less day goes a long way in productivity for the firm and project deliverables for your clients.

Reading and answering e-mail takes up approximately 28 percent of the average workweek for employees, reports a 2012 study by McKinsey & Company. Communicating and collaborating internally takes up 14 percent of the workweek, and searching and gathering information just 19 percent.

Have you ever e-mailed a colleague who shares a wall with you? If so, it’s time to reconsider your e-mail etiquette and e-mail frequency.

Electronic communication certainly has its advantages. But, its overuse has made e-mail under-perform in comparison to old-fashioned office visits.

“F” for Faxes

Ok, keep your fax machine. But only if it’s paid for or used as a paperweight, museum item, or reminder to what legal assistants had to go through to file motions in the past. Otherwise, stick to e-filings or eFaxing.

If you’re having trouble keeping up with times, just consult The Center For Competitive Management (C4CM)’s list of courses and audio conferences on technology integration for law firms.

Also, keep reading this blog, https://lawfirmsuccess.wordpress.com/, for more tips of the legal trade.

-WB

Lawyers Finally Forced To Embrace Technology (& Snubb Ned Ludd)

In 1985, Robert Calvert wrote and recorded a song “Ned Ludd,” which says:

They said Ned Ludd was an idiot boy

That all he could do was wreck and destroy, and

He turned to his workmates and said: Death to Machines

They tread on our future and they stamp on our dreams.

The year of 1985 was the year of the Polaroid, original Macintosh computer, and the digital Casio Keyboard. In 1985, Nintendo was shipped from Japan to the USA and revolutionized gaming. We also got a glimpse of Windows 1.0.

So, with so many amazing technological advancements, why were people singing homages to Ned Ludd?

Ned Ludd, for those who don’t know, is the person who gave Luddites their name.

In 1779, Ludd supposedly broke two stocking frames in a fit of rage. Thereafter, any and all violence by 19th century English textile artisans who protested against new, labour-saving machinery—the Luddites—was blamed on Ludd (read more on Wikipedia here).

Luddites hated technology. They fought against the Industrial Revolution. In the 1980s, the computer boom, like Calvert’s song, was experience a minor backlash of critism. Today, we are witnessing the same.

But, are lawyers Luddites?

That has been a frequent topic of conversation of late, particularly since the recent amendment by the ABA House of Delegates to Comment 8 to Model Rule of Professional Conduct 1.1 on Competence. The phrase (in bold italics) below was added to Comment 8:

To maintain the requisite knowledge and skill, a lawyer should keep abreast of changes in the law and its practice, including the benefits and risks associated with relevant technology, engage in continuing study and education and comply with all continuing legal education requirements to which the lawyer is subject.

The Lawyerist featured an article in December 2013 titled, “Luddite Lawyers Are Ethical Violations Waiting to Happen.”

The article’s author, Megan Zavieh, comments, “During my first year of law school, we were not allowed to do computerized research. Instead, we were taught to use the leather-bound reporters, Shepherds, and treatises. It was only during our second year that we were deemed worthy to use Westlaw and Lexis to ‘confirm’ our book findings. (Of course, I doubt any of us ventured into the stacks again.)”

“This approach reflected the general attitude of the legal profession in the mid-to-late 1990s.”

Of course, the 1980s and 1990s for law and technology look nothing like the legal practices of the 21st century. “In 2013, email is ubiquitous, and just about every lawyer has some form of electronic research available on his laptop, tablet, or phone. And everyone—lawyers included—uses Google to find everything else,” writes Zavieh.

“In law practice, that includes research on witnesses, opponents, judges, and anything else not found in a Fastcase, Westlaw, or Lexis database. Technology is an unavoidable part of practicing law.”

The Lawyerist article is powerful, citing case precedent where technology—including “reasonable efforts” to conduct online searches during jury selection or considering the inclusion of social networking sites in due diligence as part of a “matter of professional competence”—has entrenched itself in courtrooms and cases.

Being ethical now requires lawyers to be technological. So, what does that mean for your firm?

First, “old-school” partners can no longer shun firm training sessions on legal services software. “The age of the law firm partner who can’t remember what Facebook is called, or who asks his secretary to print out his emails, or who goofs up a video conference during trial, is past,” Zavieh reminds us.

Second, new associates should be tested on their technological knowledge before being hired. Always.

Third, your firm might reconsider how it conducts its due diligence, and disseminate technology-friendly policies.

Fourth, your e-discovery software should be state-of-the-art.

Fifth, your IT department should circulate monthly memos on the top tech trends and how to incorporate them at your firm.

Sixth, your younger associates should keep track of technology-related legal precedent and what it means for important case matters.

Finally, if you’ve rejected any of these simple steps toward streamlining technology into the day-to-day operations of your firm, it’s likely you’re a Luddite. And, these days, Luddite lawyers are about as outdated, un-recruited, and under-performing as 19th century looms.

-WB

Alternatives To “Big Law” For Recent Grads & “Out Of The Box” Law Firm Strategies

The good news is, this week Forbes reports, citing the U.S. Bureau of Labor Statistics, that the U.S. Economy added 203,000 jobs in November, bringing unemployment down to a shockingly low 7 percent.

In addition to a lower unemployment rate, this week, the labor force participation rate was stronger, up to 63 percent from 62.8 percent last month, reports the same statistics.

So, in sum, the government is back in business and—better yet—reporting optimistic numbers for our employment outlook.

What’s the bad news?

The bad news is, employment for lawyers is still low. It has been difficult for the legal industry to efficiently match demand for low-cost legal services with the overabundant supply of highly educated (and thus enormously-expensive) legal professionals.

Law firms are still struggling to find the right combination of partners and associates.

And, the new generation of graduates is unlikely to see a return of the old BigLaw system offering stable, well-paying jobs. Of the 2012 law school graduates in private practice, just under half—43 percent—landed jobs at firms with between two and 10 layers, according to the National Association for Law Placement, as reported by the Wall Street Journal.

“Looking for other ways to practice law successfully is something people ought to be focusing on more,” said New York City Bar President, Carey R. Dunne, a former prosecutor and partner at law firm Davis Polk & Wardwell LLP, to the WSJ.

According to Mr. Dunne, the pool of well-paid jobs at big law firms is shrinking as clients push back on price and lower-cost alternatives, like outsourcing to foreign or in-house counsel.

Luckily, new programs are cropping up to solve this crisis.

The New York Bar Association is trying out a variety of alternatives to law firm placement for recent grads, such as placing novice lawyers in apprenticeships with big banks or other employers. They are also starting a new law firm that will test whether young attorneys can make a decent living while helping Americans who can’t doll out market rate.

Brooklyn Law School, in another attempt to match legal supply with demand, is launching a program that will place students in government and nonprofit organizations, which then hire them for at least one year after graduation, reports the WSJ.

Finally, Cisco Systems Inc. is planning to team up with the University of Colorado Law School on a program where students will be paid to work full time in the company’s legal department for around seven months, take classes to make up missed course work, and then receive a semester in free tuition.

“My goal is to develop a significant number of companies and law firms that are willing to take two or three students per year and do this, and create a really robust national program,” said Cisco’s general counsel, Mark Chandler, to the WSJ.

“I’m hoping that this is just one idea of many that will blossom.”

And, with the right education or private partnerships, your law firm can also create innovative training programs for their young associates.

It take a lot of effort to step outside that box, but—once you’re there—a world of opportunity (and efficiency) awaits.

-WB 

Still need some creative inspiration? Read C4CM’s guide on Creating The Flexible Workplace.

You’ll find tips and tricks on how to:

• Lower costs associated with employee absenteeism
• Improved staff retention and recruitment efforts
• Maximized employee productivity and performance
• Improved quality and effectiveness of employee  work and personal lives
• Decreased health care utilization costs
• Reduced organizational facilities’ costs
• Enhanced reputation as an employer of choice

Three Things You Should Tell Your Clients About IP

Law firm professionals are jacks-of-all-trades. They behave like lawyers, business partners, advisors, parents and psychologists all at once.

Clients expect law firms to have all the answers. What type of funding should I choose? What’s the best time to expand my business? Can you draw up this or that contract? What is the best IP strategy?

And, although law firms can’t (and shouldn’t) answer all these questions, they do—naturally—bring with them a variety of expertise.

And whether it’s in formal meetings or informal newsletters circulated to your clients, it’s time lawyers did some due diligence regarding intellectual property. With real estate prices the way they (still) are toady, it’s the only type of property that may still hold its weight over time.

1.  Protect your U.S. Trademark registrations.

“Think twice before filing a voluntary surrender of a US trademark registration or expressly abandoning an application, because, like the decision to burn a bridge, the choice is irreversible,” writes Steven Abreu.

It turns out, Registrant International Expeditions Inc. found this out the hard way as chronicled in a recent precedential Trademark Trial and Appeal Board (TTAB) decision, Christiane E LLC v International Expeditions Inc. (Cancellation No 92055645, May 24, 2013), according to the law firm Sunstein Kann Murphy & Timbers, LLP.

The case in question involved an questionable surrender of a trademark. And, although clients reserve the right to change their minds, courts reserve the right to fight against its.

“As the withdrawal of one’s registration (and in this case the entry of judgment against the registrant with prejudice) is an important and final action, it should not be done lightly,” agrees Abreu.

“Thus, it is incumbent on trademark counsel to advise clients that voluntary surrender of one’s registration or an express abandonment of an application cannot be undone, and the decision to do so should only be taken after a thorough contemplation of the reasons and frank discussion of the irreversible consequences.”

2. Beware of both upstream and downstream consequences to consumer laws.

“Once a consumer buys a copyrighted product, like a book, the copyright holder—whether it be the author or a publisher—has exhausted all rights to control the product’s downstream distribution,” explains Sharona Sternberg.

But what happens when copyrighted works are manufactured abroad and sold abroad? Current laws never addressed that question… until today.

“In March 2013, the Supreme Court finally provided an answer, in Kirtsaeng v. John Wiley and Sons. Supap Kirtsaeng, a citizen of Thailand, moved to the United States in 1997 to study at Cornell University.  Noting the discrepancy in the price of textbooks between the U.S. and Thailand, Kirtsaeng asked family and friends back home to buy foreign editions of English-language texts in Thailand at the lower prices and ship them to the U.S.”

After reselling these books, Kirtsaeng allegedly made hundreds of thousands of dollars through this business model. Finally, one of the publishers of these textbooks got ahold of Kirtsaeng’s scheme, and sued for copyright infringement. The case made it to the Supreme Court.

If you don’t know what happened already, read the entire tale (and analysis) here.

And, if you’re clicking on the above link in order to figure out what this means for your clients, perhaps you should be writing your own monthly newsletter (and brushing up on recent IP cases).

3. Creativity wins (cases)!

Whether it’s creative ways to reach out to rekindle relationships with old clients or attract new ones, creativity wins. And, it wins cases.

Video game developers have been winning cases against clone technology. Read more here about the defense of gaming innovators.

Meanwhile, what has your firm been doing to support the innovation of its clients, or to promote innovation within its own walls?

Whether its helping lawyer moms, using iPads in the office, building a unique law firm business plan, or restructuring to boost entreprelawyering, C4CM has ideas for you (read here).

If law firm managers are expected to know it all (and then some), it doesn’t hurt to get a little help.

-WB