Home > Search for "cover+letter"

Lawyers Professional Liability Insurance Tips

Written by

Reputable attorneys know that when it comes to lawyers, professional liability insurance (or LPL) is a critical element to their practice and to their professional standing. But what can one do if he or she has been declined this important insurance coverage? Here are some suggestions for getting replacement lawyers professional liability insurance.

As you may already know, being declined malpractice liability insurance by one carrier can make it very difficult to obtain quality coverage, or any coverage, from a second insurance carrier. There are two main reasons for this: The first is that it is general practice for a carrier to ask if you have been declined by another company. The second is that, in many cases, the original problem that caused the first refusal may still be an issue for the attorney.

For those needing lawyers professional liability insurance, some suggestions:

Whenever possible provide complete information upfront when speaking with a new carrier. They will almost certainly find out later anyway, so be honest with them and as forthcoming as possible. This also gives you an opportunity to state your side of the story.

Explain, in full, your current docket control system. Be as detailed as possible and try to emphasize you have in place some form of cross-checking system that includes more than one person as a means to further ensure accuracy ad efficiency.

If you work alone, explain your situation and then ask the carrier if your current system is sufficient. If the answer is no, ask how you can improve and strengthen your office management policies and procedures.

Make sure your application includes any professional association memberships. You should also include any CLE activities that you have attended or have participated in.

If you feel your circumstances are unique make an appointment, if possible, to see the underwriting supervisor for the company you are applying with. The underwriting supervisor is the only person who has the authority to over-ride the company’s written guidelines. If a meeting is not possible, ask for the contact information of the supervisor and send them a letter of explanation, along with a copy of your application. If you are working with broker, sit down with that person and ask them if they can send this letter on your behalf. Within the letter, ask the supervisor to review your application on an “individual” basis. You can also send any supporting documents that work on your behalf.

It may be helpful when trying to get replacement lawyers professional liability insurance to conduct a Risk Management Audit. When possible, hire an experienced and independent auditor to conduct the audit. He or she will come to your location and review your policies and procedures. At this point, you can also ask the auditor to make specific remarks on your procedures which address those insurability concerns the carrier may have on offering you the coverage you need.

As mentioned above, one of the reasons some attorneys find difficulty in getting new lawyers professional liability insurance coverage is that the original problem still exists. If this is the case, the only effective way to get a new policy is to address and correct the problem that caused the issue in the first place.

During the Risk Management Audit, ask the auditor to clarify any issues that may have caused the refusal of coverage and to offer suggestions as to how to best correct those problems. If possible, have the letter of refusal with you when you meet with the auditor so he or she can see what the carrier expressed as the main issues for its decision to refuse future lawyers professional liability insurance coverage.

Tags by users:

Categories: Law Practice Management - Tags: lawyers professional liability insurance, liability insurance, malpractice, malpractice insurance for attorneys, malpractice insurance for lawyers, risk management audit

Become A Voluntourist

Written by

The real voyage of discovery consists not in seeking new landscapes, but in having new eyes. – Marcel Proust

We usually think of a voyage of discovery in terms of traveling to new places, seeing new landscapes. I certainly do. I’ve spent much of my life visiting new places, discovering what goes on there and who hangs out there. It’s my passion!

But Proust suggests that the real voyage of discovery is not accomplished by visiting or revisiting new places. He suggests that real discovery comes through having new eyes.

New eyes means seeing in a new way, with new insight, and from different perspectives, with a different focus. In doing so, we embark on a voyage of discovery in an entirely new dimension. Who knows? we may stumble upon dragons (friendly, of course) swimming in this new sea! Beginning a voyage of discovery by definition means that we don’t know what we’ll find, that the voyage is unpredictable. And what makes it unpredictable isn’t that we haven’t been there before, but that we’re seeing with new eyes.

I like this idea; it appeals to me, and I can apply this to everything that I do, and to the world at hand. If we focus on discovering the world through new eyes, we can view recent events on Wall Street, Main Street, and even Pennsylvania Avenue in new ways. Certainly, we can travel the world with new eyes.

Voluntourism Translates An Old Idea Into A New Context

Journeying to extend the hand of kindness, understanding and compassion is as ancient a reason to travel as travel itself. Now we refer to this type of travel as Voluntourism. The opportunities are endless. In a world flattened by technology, world markets, air travel, and a 24/7 news cycle, we all know how much need exists. When curious travelers address this need, the results can be stunning. For a few hours, days, or weeks, travelers can offer up soft or hard skills, whether physical, technical, or social. Swing a hammer. Sort through recycled lumber. Read a book. Hold a child. Paint a school. Ride a bike. Count ants by day. Count turtles by night. Or simply take a trip knowing that part of the proceeds are going towards good causes.

This type of travel, once cynically characterized as Do-Gooder Travel, is now so mainstream that it’s almost overlooked. Behind every responsible travel company is a flow of cash that supports the communities in which they operate. Many offer programs that are wholly devoted to or include time to give a little back to people, plants, and animals; that support shelter, education, conservation, and sustainability.

In the 1980s, fluffy white harp seals were endangered because the economy of the Magdalen Islands off the coast of eastern Canada depended on harvesting these animals. Nat Hab’s founder, Ben Bressler (who comes from a family of attorneys), took on the task of changing the Islands’ economic focus: instead of killing the seals with clubs, inhabitants built a sustainable economy by protecting the seals and creating a then emerging eco/nature-travel business. The islanders receive money in the long term by preserving the resource rather than destroying it in the short run. Still a hallmark expedition, Natural Habitat has educated thousands of travelers by giving them a first-hand experience of eco-tourism, and has kept money flowing to the Magdalens.

Today, Nat Hab is a poster organization for what you can do with sound business practices, a big heart, and an eye to what makes long-term green sense. It is the first carbon-neutral, worldwide travel company that also offers a choice of conservation benefits. Taking it to the next level, they have developed a practical way to not just neutralize, but reduce their footprint by including hybrid safari vehicles in their fleet that run on used cooking oil!

As Ben pointed out, Escape Adventures, specializes in active travel in western North America, also offers hybrid vehicles. “This company is a leader in the field and has become a collaborator and mentor to us,” he said.

Incorporate Volunteering Into Your Travel

Olaf Malvar is a pioneer and a real-deal explorer. His brainchild, Explorers’ Corner, is a referral-only, high-end specialty adventure company. If the prospect of kayaking the Antarctic Peninsula, trekking the Caucasus Mountains, or paddling between the Galapagos Islands whets your travel appetite, then this is your community of dreamers and achievers. Olaf and his company support the indigenous peoples in their locales, especially the northern tribal communities, a fact that isn’t publicized on their website or in their newsletter.

Myths and Mountains, an inspired travel company that focuses on the people and cultures of the world’s high altitudes, was founded by Dr. Toni Neubauer who has a love for Asian travel. Toni also created READ Global, a nonprofit global organization dedicated to empowering communities by increasing literacy and access to education through the creation, advancement and leveraging of a replicable library-based model for sustainable economic development in other words, it draws on the “teach a man to fish” model that reaches deep into the fabric of a people. This year, READ Nepal received the Bill and Melinda Gates Foundation 2006 Access to Learning Award. Toni also received the Walk the Talk Global Citizen Award. As a result of Toni’s efforts, you can go library to library with M&M on their Mountains, Monkeys and Books visit in Nepal. (You can also motorcycle the Ho Chi Minh Trail of Vietnam!)

Here are some other organizations that promote voluntourism:

Global Volunteers, headquartered in Minnesota. Bud Philbrook, an attorney, got hooked back in the 1980s on his honeymoon and eventually developed this amazing little company.

Classic Escapes works closely with alumni and non-profit organizations through their Global Philanthropy projects in Africa, Latin America, and Jordon. Founder Stacy Fiorentinos is passionate about bringing the world closer.

Cross-Cultural Solutions combines international travel with philanthropy. It’s perfect if you want to focus on service, adding travel on the weekends or before/after you volunteer. You can also check out uVolunteer.

If you want to feel good about the world, yourself and your travels, hop into a vegetable-fueled vehicle, pick up a paint brush, offer up your professional services and see the world with new eyes.

Tags by users:

Categories: Travel - Tags: attorneys volunteering, classic escapes, cross cultural solutions, global volunteers, lawyers volunteering, travel, volunteer, voluntourism

Avoid Cross-Cultural Communication Snafus

Written by

Being sensitive to cultural differences in communication will impact your success in the global arena.

Messages often get “lost in translation”—literally and figuratively— during cross-cultural communication. When talking or writing to clients, colleagues and competitors from different cultural backgrounds, we often find ourselves in communication snafus. Sometimes the receiver of the message fails to understand the message or, worse,
assumes a contrary meaning. In other words, client communication techniques that work in Shanghai don’t necessarily work in Sydney or Salzburg.

Communication is key to the success of the attorney-client relationship. How can law firms and individual lawyers ensure that their messages accurately cross the cultural divide? How can they trust that their meaning is understood
as intended? Here are some strategies to maximize the effectiveness of your cross-cultural client communication.
Make Every Client Communication Count Every kind of communication—from legal bills to cocktail party conversation— is an important client cultivation opportunity. Before sending out a bill, letter or memo, or before speaking to a client at a meeting or social event, a lawyer should ponder, “How can I communicate with this particular client in a culturally sensitive way?”

Not long ago in London, I led a panel discussion about cross-cultural client development for the American Bar Association’s Section of International Law. During the panel discussion we shared our client communication strategies in different cultural contexts. One panel member was Cyndee Todgham Cherniak, a lawyer with Lang Mitchner’s Toronto office who works in China so often that she has even secured a local cell phone number comprised of “lucky numbers.” Before each trip abroad, she reviews a little tip sheet she has prepared, reminding her of things to bring (lots of extra business cards) and appropriate ways to greet and interact with Chinese clients.
One clear theme emerged from this conference: being sensitive to and mindful of cultural differences in communication decidedly impacts a lawyer’s success in the global arena. But what if a lawyer gets it wrong? Simply apologize. All the panel members agreed that clients will generally understand cultural gaffes, especially if attorneys recognize their mistakes and apologize.

Look For And Understand Differences In Communication Style

Cultural differences impact not only our words, but also our vocal pitch, body language (including how close parties stand when conversing), and eye contact. For example, intense eye contact is often considered rude in Vietnam
whereas many Arabs and Latin Americans often use direct eye contact when delivering important messages. Customary gestures or behaviors can also have radically different meanings depending on the cultural context; for
example, noisily slurping soup is customary in China but considered rude in many other cultures.

As you interact with your clients or prospective clients from other cultures, adapt your vocal pitch and pace to theirs. Pay particular attention to how loudly you are speaking; many Americans inadvertently speak English too
loudly in an attempt to be understood. Match your body language as well. This technique is called mirroring and matching, and it helps to create rapport between two people—even across cultures.  Lawyers may want to learn more about other cultures and their customs by reading Gwyneth Olofsson’s When in Rome or Rio or Riyadh or Roger Axtell’s two books, Gestures and Do’s and Taboos Around the World.

Other books, like those in the Culture Shock series, focus on the cultural nuances of one particular culture.  Thanks to globalization and increased mobility, lawyers have ample opportunities to spend time with people from different cultures and practice their communication skills. To heighten your sensitivity, look for opportunities to interact with educated people from a variety of cultures—whether through business or social circles. Then pay attention to differences in communication style through verbal and non-verbal cues, and practice matching the other
person’s body language, pitch, tone and gestures.

Forge Strong Relationships

Lawyers who want to build relationships with foreign clients should respect and anticipate cultural differences, taking the time necessary to build rapport in a manner comfortable for the client. In their recent book, Negotiation Genius: How to Overcome Obstacles and Achieve Brilliant Results at the Bargaining Table and Beyond, Harvard Business School professors Deepak Malhotra and Max H. Bazerman explore the importance of relationships as a precursor to trust: “Learning about the other side’s family and their life, spending time with them in informal settings, sharing common friends, and living or working in the same community will facilitate trust.”
Entertaining and gift giving also impact the attorney-client relationship.

Lawyers intent on socializing with their clients (which is indeed important to the rainmaking process) should study their client’s cultural expectations in social situations. Lawyers should also learn any dietary restrictions that their client has—including those arising from religious beliefs—and memorize a few basic greetings, toasts and pleasantries in the client’s native dialect. Culturally savvy attorneys learn to anticipate differences arising from gender, hierarchy and the treatment of time. One of my lawyer clients, frustrated by his meetings with his Arab counterparts, complained, “They showed up late, and then all they wanted to do was chit chat!” Eventually, the punctual American lawyer learned that his Arab counterparts viewed time differently.

The same lawyer also learned that his Arab counterparts prioritized developing a relationship with him through “small talk”; this relationship- building discussion lasted for most of the meeting and covered a wide range of topics before business could begin. Similarly, rituals that may have less importance in the United States may carry great significance abroad, such as the famed Japanese ritual of scrutinizing and appreciating the other person’s business card.   Incorporating a client’s cultural rituals into the attorney-client relationship may take time, but it builds ties that bind.

Consult The Experts

The market is flooded with information about the business customs of various cultures. Along with many insightful books, a few of which are mentioned above, there are several helpful websites like Dialogin.

Speaking to experienced international lawyers also provides invaluable data. Many belong to the international section of local bar associations or the American Bar Association, or one of the global lawyer organizations like the
International Bar Association headquartered in London.  Networking with business people through groups like the Alliance Française and speaking to business people steeped in a particular culture, including foreign embassy personnel, are other good ways to learn about business customs of other cultures.

Client communication today requires cross-cultural sensitivity. Lawyers who respect and appreciate a client’s unique cultural perspective, and know how to communicate in a culturally appropriate way, will be well positioned for success.
_________
FOOTNOTES

1.   Deepak Malhotra and Max H. Bazerman, Negotiation Genius: How to
Overcome Obstacles and Achieve Brilliant Results at the Bargaining Table and
Beyond, Bantam Dell 2007, p. 97.

Tags by users:

Categories: Law Practice Communications - Tags: communication skills, expert lawyers, international lawyers, law practice communication, legal negotiation

Stay Active And Career-Smart During A Down Economy

Written by

Lawyers can easily get so bogged down in day-to-day work that they don’t think about their careers in a broader perspective. Busy, overscheduled, and overworked, they fantasize about the respite a slow period will bring, and promise themselves that they will reflect on the bigger picture “as soon as things calm down.”

When the market does slow down, however, lawyers often feel more anxious than relieved. Free time gives them opportunity to worry about decreases in salary and bonuses and even worse, being laid off.

There’s no point ruminating about what’s out of your control. Instead, focus on what you can control. Rather than panicking, channel your energy into activities that will showcase you in a positive light and will also double as career insurance should you ultimately end up in a job search.

Many of these ten activities will not only make you feel good, they will also serve as tools to enhance your resume and build your network.

Ten Activities Will Keep You Sharp And Make You Feel Good

1. Write. This is a direct way of getting your name into circulation. Writing articles can help with business development by establishing you as an expert in your field.. It can also distinguish you from other similarly situated candidates both in interviews and on your resume. Speaking of resumes…..

2. Update your resume. Many of us think of this as a painful process. In an ideal world, you would regularly update your resume two or three times a year—adding new projects, responsibilities and accomplishments as they happen in real time. For those of you who haven’t updated your resume in years, I recommend Make the Right Career Move by Rachelle Canter 1., an excellent book with invaluable chapters on resume writing. As you redo your resume, think about where you are in your career and where you want to go.

3. Organize your office. If clients walked by your office, would they be impressed or would they quickly retreat with a look of disgust? For those of you who haven’t sent a file down to records in years, now’s your opportunity. Invest some time to make sure everything in your office has a place where it belongs. Check the health and effectiveness of your filing system. Getting organized will be a huge help when things pick up again. Also, as you go through your files, you may discover topics on which to write, and accomplishments to add to your resume.

4. Focus on training. Rather than dashing to complete CLE credits before state deadlines, get them out of the way now. Better yet, offer to teach a CLE course. This will help establish you as an expert and will give you a chance to practice public speaking. As an added bonus, in many states presenters earn double the CLE credits. With the luxury of time, you can pick topics that actually interest you and are relevant to your career as opposed to settling for whatever is being offered. You can also use the time to work on your development areas. If writing has been an issue for you, get a writing coach. If you’ve been working on your negotiation skills, spend time with a colleague skilled in that area. Ask questions about your development areas and then practice, practice, practice. Keeping busy with non-billable time will look better than just having low billable hours—particularly when expectations around billable hours will be low anyway.

5. Get current. Now’s the time to catch up on all the articles, newsletters or books you’ve been accumulating. Look at your particular industry through the lens of the economy. What strategy can your clients adopt to steer themselves through tough times? What legal or business implications might they be facing and how can you help them? Even better, use your newly- enhanced knowledge of your area to connect with clients: spend time with and stay close to them. Show them you are just as concerned about their businesses as they are.

6. Practice business development. A dip in the economy is the perfect time to brainstorm: write down ideas you have for expanding your current client base or acquiring new clients. Don’t dismiss anything. Start building a strategy for each idea. Keep the good ideas and recycle the old ones while staying open to creative solutions.

7. Get involved. If you work at a firm, offer to interview new applicants for summer and first-year positions. Join firm committees or groups that you’ve always been interested in. Volunteer to mentor a new associate. All of these activities will establish your citizenship in the firm. As a former insider, I can assure you that being in the good graces of the recruiting and professional development staff is always a good idea.

8. Network. Make good on your promise to reach out to all the contacts you’ve been amassing. Look up the person you shared a panel with. Combine networking and business development by catching up with a former client or law school classmate; conversations like this might spark either a business development opportunity or an idea for a written piece. Reach out to someone who has a job you might be interested in. Network to catch up on what’s going on in your clients’ industries. Get involved in your local or state bar association and avail yourself of the tremendous networking resources it can provide.

9. Give back. Get involved in a pro bono case—particularly one that has meaning for you. This will give you an opportunity to keep your skills sharp while waiting for other work; you might even learn a new skill or two to use in an interview or job transition. Don’t restrict yourself to the legal field: volunteer for any organization you’re interested in. All of this can help your interviewing, networking and business development—while doing something good. For some ideas, check out www.probono.net or www.voa.org.

10. Recover! Don’t panic—use the time productively. Go on that vacation you had to cancel last year. Spend more time with loved ones. Read the crime novel that’s been collecting dust on your night table. Schedule long-overdue doctors’ appointments. Check in with your financial adviser. In all likelihood, the market will rebound and when it does, you’ll be in an energized and positive state of mind.

If you adopt my new favorite quote, “Pain is inevitable, suffering is optional” (author unknown), you’ll start converting your nervous energy during slow times into productivity. Keep busy, stay on people’s radar screens, and become engaged in other endeavors. Focus on the overall value these activities add to your career and plan for ways you can make them part of your regular routine, even when the economy picks up.

Footnotes

1.) Canter, Rachelle; Make the Right Career Move: 28 Critical Insights and Strategies to Land Your Dream Job; Wiley, John & Sons, Incorporated, 2006.

Tags by users:

Categories: Law Career Development - Tags: business development, focus on training, law career development, lawyers volunteering, organize office, pro bono, update resume

Cultivate Your Rainmaking Skills By Becoming Active

Written by

Fact #1: We’re in an uncertain economy. The legal market is down. Revered law firms are dissolving. Lawyers good lawyers are getting fired, and those who remain are often worried they’ll be next. Budgets are getting tighter and there’s no end in sight. Some experts estimate that the economy won’t begin to recover until late 2009.

Fact #2: Despite the economic climate, some attorneys are growing their practices by bringing in new business and clients and, in some cases, expanding practice areas. These lawyers find more satisfaction because they’re working with clients they enjoy. They have more professional options and security because they know how to satisfy clients, generate referrals, and keep a steady stream of new work.

Fact #3: Rainmakers are the last lawyers to be cut and the first to be solicited for new employment. Client development and retention are key skills in today’s economy. No matter how times may change, if you can generate new work and new clients on a consistent basis, your practice will thrive.

Rainmaking isn’t a skill taught in law school, and far too often, lawyers fall prey to the mystique of the “natural rainmaker” that if they don’t already know how to get new work, they can’t learn the skill. In fact, many lawyers secretly wish that they could simply provide excellent work product and let others get new business. That’s rarely an option in today’s economy for anyone other than junior associates in large law firms.

Networking Can Be A Natural Outgrowth Of Your Interests

Networking is a time-tested method of developing the relationships that lead to business. Unfortunately, networking often carries a vaguely distasteful image of crowded rooms in which aggressive people force business cards on anyone who will listen to their tales of business glory. Many lawyers (and certainly most introverts) who think of networking in that light shudder and resolve to try something less odious.

A lawyer once contacted me to ask how a nice but socially awkward introvert (her words, not mine!) could begin rainmaking. The lawyer, let’s call her Margaret, described her discomfort with small talk and braggadocio, both of which she perceived to be integral to business development success. Margaret further explained that she felt no desire to play golf and would prefer to make client connections due to her legal skill. Margaret’s quandary boiled down to one key question: “Can I bring in business and still be myself?” Especially because I consider myself to be somewhat of an introvert, I empathized with Margaret’s situation and shared the tactic that has always worked well for me: gaining contacts through substantive working groups of industry and bar associations.

Networking based on substantive work harnesses a lawyer’s technical skill, generates almost endless opportunities for conversation, and offers opportunities for attaining leadership positions. Because leadership creates the perception of expertise as well as increased visibility, lawyers who attain leadership roles have the chance to become known by the members of the association for their expertise without engaging in endless small talk at cocktail parties. Personal contact advances relationships, and using substantive work as a springboard for those conversations may feel more comfortable, especially for introverts and those who would prefer to focus on work. Through the substantive work, relationships grow and develop organically, often into professional friendships based on respect and trust, which sets the stage for client development.

Another advantage of this work is that it’s appropriate for lawyers at any stage of practice. More junior lawyers might take on a role in coordinating and assimilating others’ work, or they might find a way to work with more senior lawyers by writing profiles of the group’s leaders for publication in an association newsletter, for example. More senior lawyers are often in a position to be thought leaders who help shape the direction that the law or practice should take, and they’re often invited to speak or to write for the group. In addition, association work can yield mentorship opportunities that benefit both the junior and senior attorneys.

Tags by users:

Categories: Legal coaching - Tags: law, law tips, legal coaching, legal coaching tips, mentoring, mentorship, rainmaking lawyers

Why Adopt Fixed, Value-Based Pricing Now?

Written by

In all my years of practice, I have never had a client say, “I’d like to buy ten six-minute increments of your time, please” and I have never met an attorney who did. That being said, it is a wonder that since the late 1950’s the legal profession has adopted a billing model that has us selling something that nobody wants to buy: units of time. The sad consequences of operating on the billable hour model are that it pits the economic interest of legal professionals against their clients (we end up weighing whether we want to get paid more to take our time, or to be more efficient and be paid less); and it causes the perceived commoditization of the practice of law.

In today’s economic climate, lawyers who bill hourly are facing significant price competition and pressures on profit margins because their business models do not translate their work into value as it is seen through the eyes of their clients. However, there are many things you can do immediately to add significant value to clients, prevent client attrition, and keep your profits in line through these tight economic times.

Explain Value In Pre- And Post-Action Reviews

A best practice for attorneys is to have clients define, in their terms and at the beginning of the engagement, what success means to them. This allows you to make sure their expectations are reasonable and that you understand what they really think they are paying for. Remember, they are not buying your time and effort. Make sure to have clients identify what they value, how they desire to work together with you, and what communication style they prefer: this way, you will be more likely to hit the bull’s-eye.

If you do not plan to change your pricing model anytime soon, this is a great way to keep your clients happy and reinforce your unique value. Many lawyers get so caught up in creating the outcome for the client that they forget to tell the client all of the great things that they did to get there, and I don’t mean in the form of an itemized bill.

Finally, before giving clients your bill, have a detailed discussion with them reviewing the process you went through. Reveal the thought and expertise that you put into the matter and connect that with the outcome that you achieved. Sometimes, you might even tell a story about how you successfully used a negotiating tactic with opposing counsel or explain that you crafted a unique argument to the US Patent and Trademark Office and prevailed. This will reinforce your unique value and keep clients from focusing on itemized bills for emails, phone calls, and vague line items that they do not understand or value. As a general rule, if you do not first reinforce value to clients, they will look at your bill to find it. When they don’t find it there, the first thing they will do is complain about line items—or even worse, say nothing and never return.

Designate The Scope Of Outcomes

If you’re a bit more adventurous, include in your engagement letter a definition of the scope of the project defined by desirable outcomes rather than by process. When clients see their own definition of success in your engagement letter, they will see that you “get it” and that you have your eye on their prize rather than on a process that you find intellectually stimulating. With proper communication, clients will understand that an outcome is not guaranteed, but they will also be significantly less likely to blame you for not achieving their desired outcomes if they know that you were aiming for the right goal to begin with.

Give A Value Guarantee

A few innovative firms have begun to offer a value guarantee to clients, ultimately putting the “perceived” power in the hands of the client. This may seem scary, but it isn’t. First, a value guarantee is not a guarantee about outcome. It is a value promise of the firm to make sure that what clients pay is ultimately no greater than what it was worth to them. This has several benefits: it keeps you constantly thinking of how the client perceives value; it also significantly reduces client attrition and complaints, and ultimately prevents you from losing referrals.

If you think about it, clients already have a value guarantee: we call them write-downs, write offs, non-paying or slow-paying clients, etc. By offering a guarantee, you create an incentive for clients to talk to you about what they value and how much they value these qualities. This is valuable intelligence for a firm to have. The alternative is a silent killer. All of the research we have done shows that unhappy clients are unlikely to tell you how they really feel, but they will not hesitate to pay less, not pay, or tell everyone they know how horrible their experience with you was. To a great extent, they already have the power to control your profits, which is why it’s a great practice to give them an incentive to address issues with you that allow you to maintain a long-lasting relationship and avoid the silent killer. Remember, it costs five times more to acquire a new client than to maintain an existing one.

Adopt Fixed, Value-Based Pricing

Fixed, value-based pricing is the most effective way to align your economic interest with the success of the client in a manner that can earn you significantly more in the long run. It’s also the most value-aligned pricing model that, done well, almost assures client satisfaction. There are a few firms nationally that have completely abandoned hourly billing in favor of this model, and many others are exploring the possibilities in light of the earnings pressures faced by the industry today. 1

Value pricing is a form of fixed pricing that sets a price for work based on its subjective value to the client. There are significant resources online and in print to help professionals navigate the inevitable change to fixed-pricing in the market. 2

In order to price based on value, attorneys must work with the client up-front to discover the value-drivers, desired outcomes and preferences, and then carefully scope out an engagement around what the client wants to achieve. Next, ask your client to attribute a value to the engagement and get your money up-front. That way, you don’t need to manage your entire life in six-minute increments and you can work effectively and efficiently to achieve the outcome in a manner that increases, rather than decreases, your profitability.

Your client’s last memory of you will be your achievement for him or her rather than your bill. If you feel as if you need some courage to try this model, remember that the reason you are in business is to be profitable, not to make exactly the same profit margin on every job you do or to know exactly how many pennies you made on each engagement.

With careful scoping, great communication about value-drivers and good project management, you should be able to successfully implement a value-pricing system that will differentiate your firm and make you a provider of choice. As many innovative professionals have discovered, clients highly value what we do and are willing to pay a premium for certainty, allowing us to focus on value creation and quality lawyering instead of timesheets, billing, and collections.

In this economy, the uncertainty of hourly billing makes value pricing more compelling than ever before. After all, who can afford to write a blank check?

Tags by users:

Categories: Financial Matters - Tags: attorney fee, billing law practice, cost of lawyer, fixed value-based pricing, lawyer fee, lawyer's costs, legal professionals

Don’t Neglect Your Reputation When Leaving A Firm

Written by

Most law students and lawyers know quite a bit about finding a job how to write a compelling cover letter and an attention-grabbing resume, how to navigate tricky interview questions and how to make contacts who can help with the job search. With all the time we expend finding a job, it’s not surprising that we never focus on the flip side: leaving a job. Yet, how you leave your place of employment whether it’s a firm, government or corporation can have more of an effect on your career than what you actually do after you’re gone.

Your goal is to preserve your relationship with the employer you’re leaving while still vigorously protecting your rights.

You’re Leaving Because You Want To Leave

In many ways, departing a firm voluntarily is more difficult than getting fired. Sure, you don’t experience the same powerlessness and embarrassment as when you’re told to leave. On the other hand, you still need to deal with colleagues who may feel betrayed by your departure, or who view your motives with suspicion, believing you want to steal clients or bring down the firm. Here are some do’s and don’ts about disengaging

Be prepared: It doesn’t hurt to brace yourself for a worst-case scenario in which your firm sends you packing the day you give notice. In this situation, the firm would close ranks and deny you access to your computer and files by deactivating your security codes and password. Of course, this means you would lose the ability to save what’s rightfully yours. To avoid this, before you give notice, save copies of all of your work product, e-mail messages, and any client materials you’re entitled to retain; and start bringing home the seminar materials, bar journals, and other publications that belong to you. Do this whether you expect your firm to react negatively or not.

Be considerate: Give your firm the traditional two weeks’ notice if not more. Try to avoid giving notice in the weeks before a major trial or closing. Finally, assure your firm that you will continue to work long enough to finish outstanding work, or to brief a new attorney on the matter. Of course, your firm might decline your offer; in fact, they might ask you to leave right away. But at least you can be satisfied that you acted professionally.

You Are Asked To Leave

In these tough economic times, many law firms are downsizing, firing first-rate lawyers who in many cases have never before dealt with rejection. And let’s be honest sometimes law firms act downright unlawfully, squeezing out female lawyers who’ve returned from maternity leave or forcing out older, better paid lawyers. If you believe that you’ve been a victim of unlawful conduct, consult with an employment lawyer. Bringing a lawsuit can negatively impact your career, but at the same time, our profession won’t improve unless those who were wronged step up.

If you were fired unfairly but not unlawfully, you may want to vent about your plight either internally or even go public on a blog site. Before you do, however, consider this:

Badmouthing your former firm can burn bridges, or even cause the firm to disseminate negative information about your performance. If there are skeletons in your closet such as client complaints or poor reviews, you might do well to keep quiet. Likewise, if you believe that others at the firm are sympathetic to your situation and might pass work your way or help you find a job, consider whether badmouthing your firm is worth it.

If you send an email to partners or others giving them a piece of your mind, assume that it will eventually wind up on the Internet. That’s what recently happened to Shiuyung Oh, a former Paul Hastings associate. Her firm downsized her, and then claimed it fired her due to subpar performance. Her email to others in the firm in which she explained her situation ultimately wound up on AbovetheLaw, a popular legal gossip website leaving Oh no choice but to go public with her complaint.

You don’t need to leave the firm with your tail between your legs. Express your disappointment or anger to lawyers with whom you worked but do it in a professional manner. This leaves the door open to repair or rebuild the relationship down the road.

Negotiate Benefits

When you leave your employer, whether voluntarily or involuntarily, you may be entitled to certain benefits such as compensation for vacation time or the right to purchase health insurance through COBRA. If you’ve been fired or you’re planning on starting a firm, negotiate vigorously for what you deserve; every little extra bit of cash can help alleviate the financial stress of the early days of starting your own practice.

Here are some benefits for which you should actively negotiate:

Vacation/sick days. Many attorneys who leave a firm or the government find themselves with three or four weeks of unused vacation.

Retirement contribution and bonuses. In contrast to vacation benefits, which accrue all year long, some benefits like retirement contributions or bonuses are distributed annually, usually in January or February for the previous year. If you’re leaving voluntarily, you may be able to time your departure so that you’re around when these benefits are dispensed. However, if you’re asked to leave late in the year, you may miss out on these benefits unless you speak up. Again, consult your employee handbook and HR manual. If you’ve already met the criterion for a pension contribution or bonus, then make your case for receiving it.

COBRA. Federal law requires employers with 20 or more employees to provide employees and their dependents the right to continue health insurance coverage up to 18 months after leaving a job. Even though COBRA requires you to reimburse your employer for its share of your insurance premiums, COBRA coverage is generally lower than what you could procure on your own since you can take advantage of your employer’s group rates. COBRA imposes strict deadlines for electing coverage so it’s up to you to stay on top of the process to avoid missing a deadline.

Unemployment. If your separation is involuntary, you probably qualify for unemployment benefits. Don’t be too ashamed or proud to take unemployment; after all, you’ve been paying into the system for as long as you’ve been working, so you might as well take what you’ve earned. After what you’ve been earning at your firm, unemployment doesn’t amount to much, maybe $300 to $400 per week for three months. But that may be enough to cover some bills while you decide what to do next.

Finally, even when you’ve been terminated from your position, you have some leverage in negotiating benefits. If your firm fears you might bring a lawsuit, it may try to avoid the possibility by placating you. Or one or more of the partners may feel so guilty about your dismissal that they will try to ease their conscience by giving you what you ask for. For example, if you’re forced out in the last quarter of the year, maybe the firm will pick up the tab for health insurance premiums through the end of the year. This would be especially helpful if you intend to switch over to your spouse’s plan, for example, and you’re not sure how long that process will take.

Divide The Assets

Departing lawyers must also determine what property they can rightfully take and what belongs to the firm. Disputes frequently arise at termination over rights how to divide clients, and how to assess ownership of other assets.

Clients

As much as firms may want to keep clients, ethics rules impose some limitations that can level the playing field, at least a little.

In contrast to private corporations, law firms can’t execute non-compete agreements to prohibit former attorneys from soliciting existing clients. The ABA Model Rules of Professional Responsibility and every state bar take the position that clients have an unfettered right to choose their attorney.

And any practice which restricts a client’s ability to choose whether it’s a non-compete agreement, a law firm’s ban on communications between a former attorney and firm clients, or a firm’s refusal to turn over client files so that a client can transfer to another attorney will not pass muster under ethics rules.

Still, law firms have some wiggle room. Ethics rules don’t stop a firm from offering an existing client all kinds of perks to remain with the firm. In fact, ABA Opinion 06-444 held that a firm can ethically make retirement benefits contingent upon a lawyer’s agreement to sign a non-compete clause (ABA Journal e-Report, May 25, 2007).

In addition, the ethics rules impose limitations on departing lawyers. Both the ABA rules and most state ethics codes generally have rules on contact between a departing lawyer and firm clients. In many cases, ethics rules require joint notice to the client by both the firm and the departing lawyer. Follow these rules when you leave a firm to avoid protracted litigation over clients.

Property

While figuring out the division of clients, departing lawyers must also determine what property they can rightfully take, and what belongs to the firm. In some instances, technological advancements have rendered moot the work-product question. Most federal courts, and many state courts and administrative agencies, have transitioned to electronic filing. Consequently, you don’t need to concern yourself with the ethics of copying your firm’s briefs and motions when you can readily access many of them online at the court’s web sites after you leave.

Client files belong to the clients, so you can’t take them. But you can and should take copies of files if only to document your involvement in a matter if there’s a subsequent malpractice action or grievance filed down the road.

Intellectual property issues complicate the question of who owns work product. Though intellectual property considerations do not necessarily bar you from taking presentations, forms and software applications that you created for your firm for your own fair use, they may preclude you from licensing or otherwise profiting from those materials.

These days, departing lawyers may also face a fight over blog ownership. If you started the firm’s blog on your own server, you can likely claim ownership to the blog and take it with you when you leave even if your blog’s visibility eventually generated clients for the firm. By contrast, if the firm funds the blog and you simply contributed posts (possibly even without attribution), the firm would retain ownership though nothing would prevent you from linking to your posts after you leave.

Last impressions matter as much as first ones. Whether you’re moving on to better pastures or you’ve been forced out, take care to leave your job with your most important asset intact: your reputation.

*Portions of this article are excerpted from Solo by Choice: How to Be the Lawyer You Always Wanted to Be by Carolyn Elefant.

Tags by users:

Categories: Law Associates - Tags: cobra, federal law, government, lawyer's agreement, leave law firm, non compete agreements, retirement, retiring lawyers