Four Lessons That Bear Repeating
by Edward Poll, J.D., M.B.A., CMC

Sometimes the most obvious questions are the best. During a recent phone interview a writer asked me what are some of the most important lessons any law firm can apply to improve its management processes. It took a moment's thought, given the broad sweep of the question, but these four clearly stand out in my mind as vital truths for every firm. They will likely be familiar to regular readers, but are definitely worth re-emphasizing.

Lesson #1: Learn to delegate. Lawyers (like doctors and other professionals) tend to be control freaks who find it hard to let go of the details. Yet we also want to focus primarily on what we enjoy - practicing law - and tend to let business and operational issues slide. The solution is delegating to others the work other than what you do best, namely serving your clients and marketing to new ones. Hiring does involve expense but, realistically, you are leveraging skills of others at a cost of $X and charging that work out at your $Y billable rate. The profit to you is substantial ($Y-$X), and your stress level will be much lower.

Lesson #2: Have confidence in your ability. Lawyers often charge too little for our services because we don't believe strongly enough in the value that we provide. Don't forget that there will always be someone willing to charge less than you do. Once on this slippery slope, it is hard to get off ... and there is no winner. The solution is to show clients that you offer value, not just represent cost. Providing solutions gets attention - and gets rewarded. Merely charging an hourly rate, with nothing unique about it, tells your client that any other lawyer is just as good as you are. Premium service at premium rates should be every lawyer's goal.

Lesson #3: Collect the money you're owed. The key to any law firm's performance is integrating how many hours you bill with how much money you collect. Keep your accounts receivable listing always at your elbow to make sure that your clients are paying you in accordance with their agreement. It is vitally important that you move quickly to collect any overdue accounts. One study shows that a bill over 60 days past due can still be collected about 89% of the time. However, that drops to a 67% likelihood of collection after six months, and to a 45% likelihood after one year. You truly have a good relationship with your client only when the client's account receivable is up to date. Don't be among those lawyers who realize they are in trouble only after cash stops coming in the door.

Lesson #4: Don't be afraid of "selling." The real definition of marketing is simple: Identify the people most likely to hire you for the work you want to do, communicate with them to let them know who you are, and then develop close relationships with these people to help them achieve their goals. To be effective, irrespective of the size of the law firm or the firm's marketing activities as a whole, each lawyer should work at creating a personal relationship with a prospect before he or she becomes a client. While some lawyers believe they are not marketing oriented or skilled, I believe everyone can market, and should market, more than they do. There is no one personality type necessary for being a rainmaker. Everyone is capable of bringing business into the firm - and should do so.

Compliments of:
Edward Poll
LawBiz Management Company
Venice, California
(310) 827-5415
edpoll@lawbiz.com
www.lawbiz.com

About the Author: Edward Poll, J.D., M.B.A., CMC, advises law firms and their leaders on practice management, business development, and financial matters. He is a nationally-recognized practical guide to profit. His advice has benefited national, regional, and local law firms. Ed is unique in that he has long-term experience in both business and law. Ed has practiced law for 25 years, was the CEO and COO of several manufacturing businesses, and has been a consultant to small and large law firms for 15 years.