Andrew McDermott

Is an MBA useful? To run your small law firm, it would be, right?

Many pundits feel it isn’t. Their argument focuses on the fact that an MBA doesn’t teach you the real world strategies and tactics you need to build, grow and scale a successful business.

They’re right, it doesn’t.

So why run your small law firm as if you have an MBA? Isn’t that kind of self-defeating? It would be if that’s all you had to offer.

A better alternative? The Personal MBA

Jeffrey Pfeffer of Stanford University and Christina T. Fong of the University of Washington analyzed 40 years of data in an effort to answer a simple question. Do business schools make their graduates (MBAs) more successful?

Here’s Pferrer and Fong’s answer:

“Business schools are not very effective: Neither possessing an MBA degree nor grades earned in courses correlate with career success, results that question the effectiveness of schools in preparing their students. And, there is little evidence that business school research is influential on management practice, calling into question the professional relevance of management scholarship.”

Guy Kawasaki chimes in on this question as well.

In his book, The Personal MBA: Master the Art of Business, Josh Kaufman shows firm owners how to create their very own Personal MBA.

Why is this important?

Most of us want the knowledge, training, and experience needed to build a successful organization. Here are a few ways attorneys can use their personal MBA to build and grow their small law firm successfully.

Strategy #1: Cash flow management controls

Cash flow is the lifeblood of your firm.

If the cash flow in your firm is stable and predictable, your firm has enormous value. There’s a tremendous value in building a firm with evergreen retainers, subscription fees, and recurring billings.

Here’s something that’s more valuable.

Good cash flow management controls. What exactly does this mean? It’s actually pretty straightforward.

1. Positive cash flow. More money coming in, less money going out. This sounds incredibly obvious until you ask partners which financial metrics should be tracked. Firm leadership should be able to track a variety of financial metrics at any given moment.
2. Strict financial controls. You’ll need the rules, policies and procedures governing cash flow management. How money is handled in your firm, who has access to it and went. You should also have strict controls over reporting – income, expenses, assets and liabilities.

This isn’t all that complicated. You looking for specific financial information which includes the following:

• Amount of work done vs. amount billed
• Revenue billed per month
• Revenue collected per month
• Monthly expenses
• The accounts receivable lifecycle (the amount of time between you doing the work and receiving payment)
• Any discounts and/or write-downs (before billing)
• Write-offs after billing.

These metrics enable you to…

• Identify problem clients
• identify clients who pay well/on time
• Which practice areas are profitable or unprofitable
• Whether your collections policies need improvements to capture more revenue
• Whether your time tracking methods are accurate

This is your foundation. The success or failure of your firm, to a large degree, depends on cash flow management. Here’s a comprehensive post on the fundamental components of a successful legal practice.

Strategy #2: Consistent platform management

How do you approach business development?

Many attorneys treat business development as a sporadic but largely unnecessary endeavor. Here’s what I mean by that. Many attorneys struggle to attract new clients. They know they’re struggling but most haven’t addressed the problem.

Platform building alleviates the pressure these issues place on firms. Building your own platform means you have a steady supply of traffic, prospects, clients and revenue.

Doing this reframes the rainmaking problem.

You’re no longer begging for business, prospective clients are begging for a moment of your time. Why is this so significant? When clients appeal to you for your help they’re…

• Consistently pursuing you for help. Client acquisition is no longer a problem
• Willing to spend more on your service and expertise. As a result, your firm is resistant to rate pressure
• Eager to consult with you on other matters. This improves costs and decreases expense ratios indirectly

A platform provides you with:

• A steady trickle, manageable stream or torrential deluge of prospective clients
• Prospective clients who are able and willing to pay your fees
• partners who are willing to build, promote and sustain your firm

It’s common for attorneys to view advertising, marketing or promotion is the strategy to pursue. Here’s the problem with this view, when you stop working your phone stops ringing.

A platform is different.

Run your small law firm like you have an MBA

A Personal MBA.

Many pundits feel the traditional MBA has outlived its usefulness. Forty years of data show there is no correlation with career success or positive financial results. Does this mean an MBA is useless? You’ll have to decide for yourself.

A Personal MBA could be your answer.

An informal training methodology you develop for yourself. A straightforward methodology you can use to learn/earn the real world experience. It’s the ideal way to develop the strategies and tactics you need to build and grow a successful law firm.

How is a recurring payment plan a potential solution for your billing cycle?

What’s the one billing problem that’s often ignored?

The missed billing cycle. If you’re managing your firm know what I’m talking about. Lost income due to a missed billing cycle.

This occurs for a variety of reasons.

Law firms routinely forget to send invoices to clients. Or they forget to follow-up with those who don’t pay. Some firms bill at the end of the month only to have clients pay (if they’re lucky) at the beginning of the next month.

Would a recurring payment plan fix these problems?

Absolutely.

The usual benefits are an obvious draw for law firms. These benefits are consistently mentioned for a reason. They provide law firms with the foundation they need to build a stable organization. Recurring payment plans, when used appropriately, make feast and famine cycles a thing of the past.

1. More predictable cash flow. You and your clients settle into a routine. You bill at a specific time each month, often with a predetermined budget or range. Clients pay you automatically at a set time each month.
2. Decreased collections activity. If you’re a business-to-consumer or small business attorney, recurring payment plans are a must. Why? Because according to economist Robert Reich, 8 out of 10 people live paycheck to paycheck. Payment upfront (via retainer) is the golden rule. Refuse to offer recurring payment plans and, at some point, clients will stop paying. A recurring payment plan reduces collections activity, increasing firm cash flow.
3. Value-driven client relationships. A financial routine shifts everyone’s attention to the value and outcomes received by the client. A recurring payment plan reduces the attention placed on the bills and payment. Yes, clients will still be focused on their bill. But that bill will be broken up into small, bite-sized pieces clients can manage.
4. Law firms become scalable. A payment plan gives your firm a certain amount of predictability. This is crucial for firm grown. The more predictable your receivables, the easier it is for your firm to raise capital, attract partners and grow your firm.

You’re probably already familiar with these benefits. Even if you aren’t, it’s not all that hard to figure out, is it? Here’s the thing about these benefits. They’re not the most valuable part of a recurring payment plan.

The most valuable components sidestep money

The most important benefits improve your financial standing dramatically but they accomplish it indirectly. This sounds strange, doesn’t it?

It’s true though.

Here are three hidden, but more valuable benefits to adopting recurring payment plans in your firm.

Hidden benefit #1: Clients are trained properly

The attorney/client relationship is very similar to a parent/child relationship. Your clients are in a vulnerable position. They’re trusting you to advocate for and champion their interests. A recurring payment plan trains your clients to behave in a specific way to ensure their matter is handled smoothly/well.

You can do this in several ways:

• Offer clients a set price or billing structure that’s easy to follow (good)
• Provide clients with a recurring payment schedule for their matter (better)
• Bill, invoice and receive payments automatically via credit card or ACH at set, predetermined intervals (best)

As a result, clients are trained to:

• Spend more money
• Request more ongoing work from your firm
• Stay engaged in the process
• Communicate openly and concisely with you

You provide your clients with statements verifying the amounts they’ve already paid. This requires that you work to build more trust upfront during your intake process but it’s well worth it as you’ll see with the next benefit.

Hidden benefit #2: Client loyalty + revenue goes up

Which client is more likely to stay? Richard a client who pays a $17,000 retainer or Geoffrey who pays $2,450 per mo ($29,400 annually)? Give up?

It’s Geoffrey.

Richard will feel a burning desire to get his money’s worth but the pain of his initial purchase (e.g. the potential for loss) will decrease with time. Geoffrey on the other hand will feel the need to get his money’s worth each and every month. He’ll ask you or more help, which will increase loyalty over time. Why?

It’s the psychology of consumption.

“The extent to which customers use the products they’ve paid for determines whether they will repeat the purchase.” John T. Gourville

The more your clients consume – the more engaged they are, the more questions they ask, the more assistance they require – the more likely they are to continue working with your firm.

Hidden benefit #3: Circumvent client games

You know the one.

Your client feels their case/matter won’t be resolved in their favor so they decide to stop paying. It makes sense in their head – why pay you if they’re going to lose and be forced to pay the other side? A recurring payment plan circumvents this issue.

• Clients spend less money upfront but pay regularly for your help
• If they fail to pay their recurring payment plan they could lose your support at an inconvenient, catastrophic or unpredictable moment. A recurring payment plan can also circumvent piecemeal billing, providing firms the structure and predictability they need to retain quality clients.
• A recurring payment plan takes advantage of the sunk cost bias. It’s a tendency people have to irrationally follow through on an activity that fails to meet their expectations due to the amount of time and/or money invested. The sunk cost bias increases in strength over time. The longer the relationship, the more money spent, the more reliant clients are on you – the more likely they are to continue paying for your help.

Hidden benefit #4: You (semi) productize your firm’s services

Productization requires specialization. If you’re a multi-purpose firm a recurring payment plan can work but it will also require a lot more work. Specialization with a few practice areas is key. If you focus exclusively on family, tax or intellectual property law you can productize your services using recurring payment plans as a delivery framework.

A recurring payment plan breaks your service/work into manageable financial pieces.

Pieces your clients can afford to pay for.

A recurring payment plan comes with hidden benefits

Firms are able to avoid the headaches and hassles that come with missed billing cycles. They’re able to train their clients to do business their way. To scale and grow their firm in a way that makes financial sense.

It’s an obvious draw.

With the right structure, you’ll have the client loyalty, financial predictability and value-driven relationships your firm needs to grow.

Cash-poor businesses.

A postmortem analysis by CB Insights listed “ran out of cash” as the second most common reason for business failure. While it’s typically a problem for startups and new firms, it’s also a problem for established law firms.

I’m talking about feast or famine.

One minute your firm is awash with clients and projects. You’re scrambling to keep up with the demand, to serve your clients well. The next minute it feels like your firm is starving. It’s stressful and difficult to grow your firm under these conditions.

There is one major cause that’s often ignored.

Financial highs and lows = a lack of structure?

I’m not talking about the financial highs and lows that come with attracting or losing a major client. I’m also not talking about the one-off events that occur when your firm is in transition or your financial situation is undergoing a major change.

I’m talking about firms that are constantly in flux.

When I use the term “in flux” I’m talking about a specific set of financial circumstances that plague law firms.

• A decreased ability to consistently attract new clients
• Clients who frequently forget to pay their bills on time (or at all)
• A decreased ability to attract additional work or referrals from “promoter” clients
• A payment structure or building model that rewards bad behavior (e.g. discounts or write-downs if clients pay your invoice early or on time)
• Lost income due to a missed billing cycle (e.g. forgot to send your invoice to clients)
• Forgetting to follow up with clients who refuse to pay or pay on time
• Consistently experiencing a cash flow crunch

What’s the common thread here?

There are several details that immediately spring to mind. Poor timekeeping, unclear billing policies and procedures, a failure to send out invoices, etc.  A lack of financial structure contributes to these firm killing problems.

Evergreen payments: the key to healthy cash flow

Definitions are important so let’s begin with the basics. When I use the word cash flow this is what I’m talking about.

I’m going to assume you already know this. My goal here isn’t to insult your intelligence but to ensure that we’re all singing from the same song sheet.

Cash inflow good, cash flow crunch bad.

This is precisely why you need evergreen payments. Evergreen payments simplifies the cash flow management process (a bit) for law firms. If you have a system that maintains good cash inflows (e.g. consistent, reliable and growing) your job is really only focused on one specific area.

Maintaining/decreasing expenses.

Evergreen/recurring payments make this possible for a few important reasons. When used appropriately, this makes feast and famine cycles a thing of the past. Let’s review the obvious and commonly cited reasons.

1. More predictable cash flow. You and your clients settle into a routine. You bill at a specific time each month, often with a predetermined budget or range. Clients pay you automatically at a set time each month. You’re able to replenish your evergreen retainer or receive your next payment (recurring payments) at set intervals with little to no resistance from your clients, even if you’re unaware of the total cost. This decreases the likelihood that your firm will lose money.
2. Decreased collections activity. If you’re a business-to-consumer or small business attorney, ePayments are a great way to decrease your collections activity and get you paid up to 70% faster. Bill4Time Payments is a built-in payments processors that allows you to offer secure, compliant ePayments to your clients. The low cost processor is built-in to your Bill4Time account and easy to activate.
3. Value-driven client relationships. A financial routine shifts everyone’s attention to the value and outcomes received by the client. A recurring payment plan reduces the attention placed on the bills and payment. Yes, clients will still be focused on their bill which, as you’ll soon see, is important for consumption. A recurring bill means their balance will be broken up into small, bite-sized pieces clients can manage.
4. Law firms become scalable. A payment plan gives your firm a certain amount of predictability. This is crucial for firm growth. The more predictable your receivables, the easier it is for your firm to raise capital (in the form of loans or equity), attract partners and grow your firm.

You’re probably already familiar with these benefits. Even if you aren’t, it’s not all that hard to figure out, am I right? Here’s the thing about these benefits. They’re obvious but they’re not the most valuable part of a recurring payment plan.

Okay then, what is?

As I mentioned previously, the most important components sidestep money altogether. Let’s review a few of the wildly profitable but hidden benefits of evergreen/recurring payments.

Hidden benefit #1: Clients are trained properly

The attorney/client relationship bears a striking resemblance to a parent/child relationship. Your clients are in a vulnerable position. They’re trusting you to advocate for and champion their interests. Evergreen/recurring payment plans train your clients to behave appropriately. It maximizes your client’s focus on value and minimizes their focus on price (which you don’t want to eliminate).  

You can do this in several ways:

• Offer clients a set price or billing structure that’s easy to follow (good)
• Provide clients with a recurring payment schedule for their matter (better)
• Bill, invoice and receive payments automatically via credit card or ACH at set, predetermined intervals (best)

As a result, clients are trained to:

• Spend more money
• Request more ongoing work from your firm
• Stay engaged in the process
• Communicate openly and concisely with you

You provide your clients with statements verifying the amounts they’ve already paid. Notice, you’re not asking for permission, you’re providing a summary or accounting for a decision already made.

This is the key distinction.

This requires that you work to build more trust upfront during your intake process but it’s well worth it as you’ll see with the next benefit.

What if you don’t? What if you ignore client payment delays?

• Allow clients to pay late without penalty and they’re likely to do it again (and again)
• You (severely) diminish client loyalty (if they won’t stand up for themselves there’s no way they’ll stand up for me…)
• You’ll experience a cash flow crunch as feast and famine cycles become the norm

You won’t be able to train your clients properly until you know why they’ve stopped paying. Here are a few of the most common reasons for nonpayment.

1. A cash flow crunch of their own: Clients with financial problems are understandably hesitant to pay. These clients fully intend to pay you but they lack the financial resources to do so. Being paid is important, maintaining their habit is more important. You want to ensure your clients send you something each and every month. This may require that you provide them with less until they’re fully caught up. It may also require modifying representation. What’s most important? Treating your clients as allies, never as an adversary.
2. Unhappy or dissatisfied clients: Your client realizes their case/matter won’t be resolved in their favor so they decide to stop paying you. It makes sense in their head. Why would they continue to pay you if they’re going to lose and be forced to pay the other side? An evergreen/recurring payment plan helps to circumvent this issue. It positions you and your client on the same team. Remember, clients, are more likely to use what they pay for. The more they consume the more they buy. The more they buy the more they trust. You’ll be able to earn more fees from evergreen clients who are focused on value rather than cost.
3. Large corporations: Large corporations have their own set of billing guidelines, payment schedules and hidden requirements that need to be followed to the letter. Fail to do so and you may trigger a billing dispute delaying payment. If you’re dealing with unexpected news pick up the phone and call your client. Create a map of expectations ahead of time. You’ll want to outline the explicit and implicit expectations you’re dealing with.
4. Clients who are unwilling to pay: These clients weasel their way into your firm with one goal in mind. To extract as much free/low-cost work as they can from you before they’re given the boot. These clients wreak havoc on firms as they make their exit. They leave negative reviews, burn bridges and destroy firm morale. It’s best to avoid these clients before they find a way into your firm. Ask for a larger upfront retainer (followed by regular and evergreen retainers or recurring payments).

Hidden benefit #2: Client loyalty + revenue goes up

Which client is more likely to stay? Richard a client who pays a $17,000 retainer or Geoffrey who pays $2,450 per mo ($29,400 annually)? Give up?

It’s Geoffrey.

Richard will feel a burning desire to get his money’s worth but the pain of his initial purchase (e.g. the potential for loss) will decrease with time. Geoffrey, on the other hand, will feel the need to get his money’s worth each and every month. He’ll ask you for more help, which will increase loyalty over time. Why?

It’s the psychology of consumption.

“The extent to which customers use the products they’ve paid for determines whether they will repeat the purchase.” John T. Gourville

The more your clients consume – the more engaged they are, the more questions they ask, the more assistance they require – the more likely they are to continue working with your firm. Here’s the interesting part of this research.

Cost drives consumption.

Do you want clients to spend more with your firm over time? To request your help with additional matters? To be more receptive and open to your suggestions – even if there’s a significant financial upside for you?

Of course you do!

It’s true, evergreen/recurring payments, don’t come with the strong upfront payment many attorneys prefer. They offer something better.

Predictability.

The sunk cost effect is the core driver of this predictability. Your clients feel compelled to use the services they’ve paid for to avoid feeling that they wasted their resources.

See for yourself.

Wait just a minute here!

Am I advocating that you use evergreen/recurring payments to manipulate clients, via the sunk cost effect, to keep them trapped in a relationship with you?

Absolutely not.

I’m stating something much worse.

I’m stating that your clients will use, rely on and manipulate the sunk cost effect themselves and that there’s not a thing you can do to stop them from doing so. Once they’re invested (financially) in your firm, and you’ve earned their buy-in with evergreen/recurring payments they’ll do it themselves.

Be careful.

The sunk cost bias increases in strength over time. The longer the relationship, the more money spent, the more your clients consume, the more reliant clients are on you – the more likely they are to continue paying for your help.

It’s your job to ensure your clients are treated well.

Hidden benefit #3: Circumvent client games

You know the one.

Your client feels their case/matter won’t be resolved in their favor so they decide to stop paying. Again, it makes sense in their head – why pay you and the other side if they’re going to lose? A recurring payment plan circumvents this issue.

• Clients spend less money upfront but pay regularly for your help
• If they fail to pay their recurring payment plan they could lose your support at an inconvenient, catastrophic or unpredictable moment. A recurring payment plan can also circumvent piecemeal billing, providing firms the structure and predictability they need to retain quality clients.
• Evergreen/recurring payment plans take advantage of the sunk cost bias. It’s a tendency people have to irrationally follow through on an activity that fails to meet their expectations due to the amount of time and/or money invested. 

Hidden benefit #4: You (semi) productize your firm’s services

Productization requires specialization. If you’re a multi-purpose firm a recurring payment plan can work but it will also require a lot more work. Specialization with a few practice areas is key. If you focus exclusively on family, tax or intellectual property law you can productize your services using recurring payment plans as a delivery framework.

A recurring payment plan breaks your service/work into manageable financial pieces. Pieces your clients can afford to pay for.

Here’s a brief primer on that.

Did you catch that?

There are three types of productized services.

1. The foot-in-the-door-offer. Irresistible introductory offers that are designed to attract client attention in hopes of securing an ongoing relationship with higher fees. This productized service is an excellent strategy to attract a consistent stream of B2B clients.
2. One-time purchases. These purchases fulfill a client need but they also set the relationship up for upsells, cross-sells and down-sells. You’re not pitching clients irrelevant services they don’t want or need. You are piggybacking on your one-time offer, showing clients that an ongoing relationship would provide them with more value.
3. Recurring retainers/subscriptions. Clients pay you for a value-added service on a weekly, monthly, quarterly or annual basis. This doesn’t have to be labor intensive work either. You can use evergreen retainers and subscription payments as a strategy to handle the tedious or routine work clients need done on a day-to-day basis.

Here’s a brief idea showing you how you can use a productized service to grow your firm.

Step #1: Set up your DBAs

You’ll want to verify that this is acceptable in your local jurisdiction. You’ll also want to notify your malpractice carrier of any pertinent changes. You can use your DBAs for a variety of purposes.

• Creating a low-cost brand that automates or semi-automates routine legal work (e.g. wills, basic trusts, agreements, etc.). This low-cost brand would be a helpful and cost-effective way to rapidly train new graduates/associates. It could also be a significant profit center for your firm.
• Creating a prestige brand that bills at a higher rate. This is perfect if your prestige brand only matches illustrious/valuable clients with law firm partners who have 20+ years of experience under their belt. It’s an ideal strategy if you’re looking to win larger contracts from well-paying corporate clients.
• Creating a volume brand that produces large amounts of high-quality work at reasonable, mid-market rates. This would be perfect for grinder associates were focused on churning out as much high-quality work as possible. It would also be ideal for the minders who manage them.
• Creating a specialist brand that focuses on specific practice areas or precise areas that require a tremendous amount of legal expertise. This is perfect if you’d like your firm to branch off into specialized practice areas (e.g. IP, tax or compliance law).

This quick bullet list isn’t comprehensive. It’s not intended to be. It’s designed to get you thinking about the ways you can use sperate brand identities (via DBAs) to create consistent and steady cash flow for your firm. It would require that you maintain a separate brand identity for each DBA (e.g. business cards, websites, social media, mailing addresses, etc.).

Why go to all this trouble?

Your brand stands for one specific thing in a customer’s mind. If we’re relying on the Pareto distribution, I know most attorneys receive 80 percent of their revenue from 20 percent of their practice areas.

Separate brand identities provide stability.

Practice areas that are viable today may not be as viable tomorrow. Properly used, brand identities via DBAs provide firms with the flexibility and financial stability they need to weather any economic storm.

Step #2: Create and set up payment terms

You’ll want to create the payment terms necessary for your firm whether you’re using DBAs or not. You’ll want to make sure evergreen retainers are stored appropriately in your trust account until their earned (obviously). It’s something you already know but it’s still surprising that so many attorneys miss this.

You can use evergreen retainers, recurring and subscription billing, fixed fees and other alternative fee arrangements, where appropriate, in your DBAs.

Again obvious, but worth repeating.

Next, you’ll want to avoid one of the biggest mistakes solo attorneys make when discussing fees with a prospective client.

Assuming your client understands.

You want to lay out the terms of your evergreen retainer clearly, so your clients understand it, ahead of time. You’ll want to verify (without being condescending) that your clients understand.

They should know:

• When evergreen retainers will be replenished (e.g. triggered by schedule or dollar amounts)
• What happens if they fail to pay for/replenish their retainer (e.g. work stops, withdraw representation)
• The late fees and penalties associated with their failure/inability to pay
• That you’ve made a good-faith effort to suss out any questions, objections, fears or concerns upfront
• What their options are if they object to any of the terms you laid out

What happens if clients reject the terms you laid out?

It’s simple.

You refer them to a DBA that will better serve their needs. If a low-cost client wanders into your prestige brand looking for help they may balk at the price. No worries, simply redirect them to your low-cost DBA.

Step #3: Get existing clients to switch

When it comes to switching there’s a hidden fear.

“Clients don’t want to switch. If I push too hard to leave or I’ll lose their business.”

Relationship is the antidote to this fear. Specifically two kinds of client relationships.

1. Constrained relationships I have to stay in this relationship
2. Dedicated relationships I want to stay in this relationship

Customers in a constrained relationship feel they have to stay to avoid losing the exclusive benefits there are currently receiving. They may also choose to stay to avoid the transitional pain and expense that comes with switching.

Here the main factors that impact your client’s psychological commitment to your firm.

• Sunk cost effect. Remember this? The more recent the spend, the more likely customers are to stay and consume. The more money they invest the more likely they are to stay. The more they consume now, the more they’ll consume in the future.
• Regret avoidance and loss aversion. It’s better to not lose $ than to gain $. When customers are satisfied, they tend to avoid doing things they feel they may regret; they stick with what they know and stay with the status quo to limit risk. The stronger your value proposition the greater the loss aversion.
• A desire to feel in control. Customers typically don’t have control over the outcome. As a result, they prefer to maintain control over their circumstance. Doing this helps them avoid the psychological pain that comes with uncertainty. Customers stay with the status quo to avoid losing control.

What about dedicated relationships? These customer relationships last longer because they’re self-sustaining. These clients develop emotional bonds with the associates/team handling their matter/project. It’s no surprise then that loyalty flows naturally from these client relationships. Which factors are most important to these relationships?

• Benevolence. Your clients feel a consistent sense of goodwill from you. The relationship isn’t adversarial it’s a healthy mix of partnership and caretaking.
• Integrity. Your clients see you’re focused on delivering value. You don’t nickel and dime your clients, you’re too busy delivering exceptional results on their behalf. Your clients know you’re honest, ethical and morally sound, whether they’re watching or not.
• Competence. You’re the best-of-breed, the finest your client can afford. You’re highly competent, you’re able to produce results other attorneys can’t or struggle to achieve.

This is how you get existing clients to switch to evergreen payments. You have a constrained, dedicated or combination (both) relationship with your clients.

Anything else is voluntary.

Want to increase the likelihood that your clients make the switch to evergreen or recurring payments? Give them a compelling reason.

• Create a compelling value proposition. Create a service/firm with an exclusive, compelling, credible and clear offer from your client’s perspective.
• Reverse or assume their risk. Find a way to eliminate, reduce or modify the risk to your clients. The risk to your client switching comes in two flavors (1.) the obvious risks (e.g. loss money, receive less attention) and (2.) the hidden risks (e.g. you’re overcharging me, this deal is predatory, etc.)
• Give them an out. Give your clients the opportunity (as much as possible) to say No. Provide them with a clear exit if they’re unwilling to continue with the current arrangement. Examples include upgrades, downgrades, renegotiation, and alternate DBAs.

This is how you get clients to switch.

The good news? It’s upfront work that pays dividends indefinitely. The bad news? It’s difficult, requires a fair bit of thinking and in the end, most firms give up before they’ve completed the process.

This is how you win.

Step #4: Manage your financial data

It’s a mistake to attempt to manage your financial data manually. There’s too much data to manage and not enough time to analyze it. With practice management software, you can manage evergreen payments on a recurring basis. You can set up alternative fee arrangements (e.g. subscriptions, fixed fee, contingency, holdbacks, etc.).

There’s something more important here.

It’s the data.

If you’re looking to get a decisive victory with your cash flow management you’ll need a significant amount of data. You’ll need a way to track these metrics comfortably. The easier it is, the easier it will be to grow your firm.

Verify that your software can do the following:

1. Set up alerts: These alerts are automatic, alerting you to any potentially dangerous or problematic issues before they hit the point of no return.
2. Schedule software: If you’re relying on practice management software, you’ll want to schedule reports so they’re run automatically, on a schedule, all the time. Get everything out of your head and into a trusted software system.
3. Schedule people: Build a team of trusted, freelance/outsourced providers who can help you with the above list of metrics. If you’re doing amazing work (and I assume that you are), you won’t have the time you need to track all of this consistently. Surround yourself with software and people who can.
4. Focus on accuracy: You’ll want to provide your people and software with the information and resources they need to perform. This means you’ll need to track your time accurately, record data in your software tools judiciously and focus on doing this consistently. Skip this step and your metrics won’t be accurate.

If you’re using practice management software you should be able to set evergreen and recurring payments up easily. You’ll want to ensure that you receive notifications or alerts when you retainer balance is low. Your practice management tool should also manage your trust accounts.

Financial highs and lows signal a lack of structure

New and established firms struggle with feast or famine cycles.

One minute your firm is awash with clients and projects. You’re scrambling to keep up with the demand, to serve your clients well. The next minute it feels like your firm is starving. It’s stressful and difficult to grow your firm under these conditions.

This doesn’t have to be you.

Most of these law firms exist in a constant state of flux. They struggle to receive payment from their clients. Their day-to-day cycle is a consistent source of stress and anxiety. Evergreen payments are the key to healthy cash flow.

Cash inflow good, cash flow crunch bad.

Evergreen payments provide firms with the predictable cash flow and decreased collections activity they need. These law firms become scalable, high-performance growth machines. They’re exceptional value generators for clients, employees and partners.

With strategy and evergreen/recurring payments, you’ll have the tools and resources you need to create the cash-rich, feast worthy law firm you deserve.

Can online payments truly make a different to your bottom line?

It’s there in the back of your mind.

The reason why so many attorneys choose to collect larger retainer fees upfront. Doing so relieves a few of their secret and unspoken fears.

Get as much as you can now. There may not be a “get” later on.

It’s common for attorneys to collect as much as they can upfront, as often as they can,  for advance work. Yes, these retainers provide short-term relief but they do little to diminish any long-term cash flow concerns firms may have.

Online payments give your firm stability

With online payments, specifically in the form of credit cards or recurring ACH transfers, you’re able to get paid up to 70% faster than the industry average. Built-in payments processors, like Bill4Time Payments, are easy to use, secure, and compliant. Bill4Time Payments is accessible in your Bill4Time account and easy to activate. There are lots of compelling arguments outlining the benefits of moving clients from checks to online payments.

The real question here is how?

How exactly do you convince a client to make the switch from checks to online payments? Typically, there are pre-existing arrangements in place. Clients paying by check have a specific set of expectations, specific reasons for paying by check.

How do you get them to agree with you?

How do you get clients, who are already set in their ways, to make a significant change?

Strategy #1: Replace your clients one-by-one

What’s the hidden fear lurking behind the scenes here? It’s the fear that you’ll ask (or demand) that your clients will say No to your request.

Even worse, you may lose them.

Push your clients too hard for a commitment and you may even see a dramatic reduction in the amount of business you receive from long-term clients. If these large clients are sending you a large book of business the results to your firm could be catastrophic.

It’s simply not worth the risk.

Here’s a better way to get clients on the same page. You start with yourself. You eliminate your fear of losing the business.

Here’s how it works.

1. You increase your pricing. This enables you to compensate for any bank, transfer or processing fees. If your payment processor takes 3.3% plus $.30 per transaction for example, you’ll want to ensure your client fees are adjusted accordingly.
2. Set your breakeven point. Identify your monthly recurring revenue (MMR) point. This is the amount you’ll need to maintain your operations as-is. You’ll need this amount, in full, before you pitch current clients. This step is the foundation, your strategy won’t work without it.
3. Set your terms and conditions. You want to identify your pricing model, billing strategy and appropriate schedules. Are you offering clients an evergreen (recurring) retainer that’s renewed on a specific schedule or via set criteria? Are you offering subscription billing or a flat monthly fee? You’ll need to finalize these details first before attracting or pitching clients.
4. Bring new clients in, under the new terms. New clients are brought in under the new terms and conditions you’ve laid out in step three. These are reliable clients who have explicitly agreed to your new pricing model. You’re looking for the behavior markers that signal a reliable, long-term client. As far as these clients are concerned, pay by check doesn’t exist.
5. Bring in new clients, replace the old. Your new set of clients should meet the predetermined MMR point you’ve set previously (step two). If your firm needs $650,000 per mo. to operate comfortably use this as your benchmark. Just be sure to exclude current clients. If you’re uncomfortable waiting you can begin pitching clients when you’re 1/3 – 2/3 of the way there. This comes with increased risk.
6. Pitch existing clients with a compelling offer. At this point, you’re able to confidently reach out to existing clients with your offer. If you’re willing to grandfather existing clients in (i.e. they continue to pay by check) you can assume more risk with step four. If you’re unwilling to grandfather existing clients you’ll need less risk.

See the difference?

This strategy eliminates a significant amount of the fear you feel. You’re able to approach existing clients confidently, knowing that you have a secure foundation/safety net in place. You’re producing more revenue with less effort and in less time.

Strategy #2: Give existing clients an incentive

You could use force to gain compliance. This would probably damage the client relationship permanently. It hardly seems worth it, especially when there are more effective strategies you can use to gain buy-in from your clients.

Here are a few you can use:

• Discounts: This strategy is the low hanging fruit firms pursue first. It’s easy to offer clients a significant discount for a set period of time. This strategy should be used with care. It should be unpredictable, difficult to game and focused on delivering value to all parties.
• Bonuses: Enable you to provide clients with a specific set of valuable add-ons. The important detail here is this. Your clients must find these bonuses compelling. If you’re a startup or small business attorney regular calls, webinars, workshops or sit-downs with influential or legendary entrepreneurs, specialists and experts would be an incredibly compelling bonus.
• Urgency: You want to give clients a compelling reason to act now. This could be a complementary service or add-on that’s offered for a specific time frame. “We’re only taking on 15 clients at this time. We’re working with clients on a first come, first serve basis, apply now.”
• Alarm, logic and gain: Show clients what they stand to lose (naturally) by continuing to pay with checks. Provide them with a logical rationale that shows them why they should switch to online payments then, show them what they stand to gain after they understand the consequences.
• Loss aversion is a natural response to loss. It’s better to not lose $5 than to gain $5. This can work in a variety of directions. “I’m currently losing $$ per invoice with clients who pay by check. Making online payments would help us come out ahead. Would you be willing to switch?” or “Our firm is moving from checks to online payments. I’m reaching out to see if you’re willing to make that transition with us?”

This all seems fairly straightforward, doesn’t it?

Many attorneys feel this is all a bit much. “You just have to ask” they say, “and clients will switch.” Experience tells us this isn’t the case. Checks give clients a significant degree of control. Research shows gains received from switching aren’t enough. You’ll need to show clients the (positive and negative) consequences of continuing with the status quo.

Large upfront fees aren’t the answer

They’re comforting in the short term but they create significant disadvantages for small, medium and growing firms. If you’re working with consumers and/or small business owners they may not be able to pay the large upfront fees you’re asking. Online payments give you predictability and your clients flexibility.

Get as much as you can now. There may not be a “get” later on.

This doesn’t have to be your story. With the right strategies and a clear set of tactics, you’ll have the systems you need to provide your firm with financial stability and growth. 

It’s all worthless. Not your final year of law school, of course, but your GPA

Laszlo Bock, former head of HR at Google had this to say about GPAs and test scores. “GPAs are worthless as a criteria for hiring, and test scores are worthless.“

This isn’t surprising, is it?

Experience seems to validate this over time for law firms as well.

“Google famously used to ask everyone for a transcript and G.P.A.’s and test scores, but we don’t anymore, unless you’re just a few years out of school. We found that they don’t predict anything.”

Law firm expectations have changed as well

Remember the trend I talked about in my previous post? Today, modern clients are obsessed with value. This means successful law firms are focused on value as well.

Is that what we’re seeing?

Absolutely.

Law firm expectations continue to rise. Clients place an exorbitant amount of pressure on firms. As a result, firms expect a tremendous amount of new skills from new graduates/potential associates. Skills associates didn’t need 10 years ago.

Skills most law schools don’t teach.

Most new graduates are unprepared for work in a thriving law firm. This means any firm that hires these new graduates will need to invest a significant amount upfront before seeing a reasonable return.

Something law firms aren’t eager to do.

Law firms used to be different

The practice of law used to be different. Graduates only needed two things, legal acumen and experience. If they were good at their jobs and they serve clients well, they did well.

Not anymore.

New graduates need readiness and real-world skills they can put to work immediately. Your LSAT test scores are still important, but they aren’t as relevant as they used to be. Today employers are looking for demonstrated competency.

They want graduates to show what they know.

Most graduates are completely unprepared to do this. This isn’t their fault. They’re simply expected to demonstrate skillset they haven’t learned yet.  Here are three real-world strategies law students can use to win a coveted spot in a flourishing law firm.

1. Learn your role, expand your role

Most attorneys fit into one of four distinct roles. Finders, binders, minders and grinders.

• Finders a rainmakers. They’re expected to bring new clients and new business to the firm. As far as law firms are concerned, finders are exceptionally rare is also whether so valuable. If you’re looking to eventually make partner the skill is a must.
• Binders are connectors. They’re sophisticated networkers, professionals were capable of building and maintaining relationships with powerful and influential people. A mature binder eventually becomes kingmaker, a professional who is capable of conveying, absorbing and revoking power.
• Minders are managers. They’re bureaucrats who are skilled at managing the never-ending mass of clients, employees, partners and politics in their firm. They thrive on administration.
• Grinders are workhorses. These associates are expected to do one thing and one thing only. Do all of the work that’s set before them, producing high-quality work in a reasonable amount of time.

New associates are typically hard to be grinders. Partners are expected to be a combination of finder, binder and minder.

As far as roles are concerned, grinder is typically imposed while the other three roles are earned.

This is the problem.

Savvy law students will work to develop skills in each of these areas. They’ll…

• Become a student of psychology and marketing, learning to attract new clients on demand
• Learn how to build deep, loyal and lasting connections with tremendously powerful and influential people
• Master easy-to-learn efficiency and productivity skills like Tiny habits, the Pomodoro technique, Ivy Lee method and others.

One year of training, with examples you can demonstrate, will put you ahead of most veteran attorneys.

2. Learn business development

Law students who understand the ins and outs of business development and the fundamentals of good marketing are able to write their own ticket.

Why is that?

Here’s what Joe Ankus, founder of legal recruiting and training firm Ankus Consulting had to say about this trend.

“The era of a new graduate joining a law firm, being an associate and being invited to become a partner over a martini lunch five years later is long gone. There is no question that over time the trend has evolved to this: Lawyers are not only expected to be competent lawyers, but also they are expected to be prolific rainmakers.”

Rainmaking is no longer optional.

If you’d like to maintain a strong negotiating position in your law firm or avoid being pushed out during layoffs or restructuring, rainmaking is a requirement.

Firms are hesitant to kill the golden goose (you).

The better you are at generating new leads and business for your firm (whilst maintaining control over your lead generation mechanism), the more secure your financial and negotiating position will be in your career.

Which brings us to the next strategy.

3. Learn to create, implement and maintain systems

If you’re a grinder, you won’t have a tremendous amount of time to dabble with each of the roles I’ve mentioned. You’ll need to have systems in place – a way to automate and semi-automate the strategies I’ve mentioned.

Educational materials

• The Fifth Discipline by Peter Senge
• The Art of Thinking In Systems by Stephen Schuster
• Learn To Think In Systems by Albert Rutherford

Systems you’ll need in your career

• Systems to build connections rapidly and establish new connections on-demand
• Systems to build authority, credibility and influence (e.g. public speaking, guest posts, interviews, etc.)
• Marketing systems to attract leads, clients and revenue – for your firm or yourself
• A working knowledge of case, document, project, time and practice management software tools
• Experience with a variety of third-party tools and resources e.g. Box, Stripe, PayPal, QuickBooks Microsoft Office, Adobe Acrobat, and others
• Personal time management and automation tools e.g. Calendly, Zapier, IFTTT and others.

Systems thinking is the secret ingredient that produces transformative change.

Remember that? Here’s a quick recap.

• Conventional results. Being great at your job, going above and beyond and performing well in general. If you’re a grinder your work is pristine and above reproach. You’re fast, efficient helpful, productive, etc.
• Transformative results. These are results that make things better for your firm, your career, the industry or customers as a whole. It can be as simple as shared knowledge or as comprehensive as advanced rainmaking or brokering deals on behalf of your firm.

Conventional results build trust. It helps you to keep your job. Transformative results win coveted opportunities in highly competitive environments (e.g. make equity partner).

Change in expectations requires a change in strategy

The pressure is on.

Graduates are expected to hit the ground running. New attorneys need skills they didn’t need 10 years ago.

Skills most law schools don’t teach.

Most new graduates are unprepared for work in a thriving law firm. Firms are hesitant to invest a significant amount of capital before seeing a reasonable return.

They won’t have to.

At least, not with you. Armed with these three real-world preparation strategies, new graduates will have the unfair advantage they need to attract consistent employer attention in the marketplace.

They’ll be ready and able to show firms what they know.

Almost all of them are in debt.

The vast majority of law students graduate with an avalanche of debt. U.S. News wanted to answer a simple question. Which law school graduates have the most debt?

The answer is sobering.

In every law school except two, more than half the student population graduated heavily in debt. In some schools like the Southern University Law Center or Florida A&M University, 100 percent of their students graduated with debt ($94,447 and $61,500 respectively).

Debit is a facilitator and Law school is a worthwhile pursuit

This isn’t a tongue-in-cheek claim.

The data shows that most of the time, law school is absolutely worth it for graduates. If graduates are able to land a job with the right firm, their career is off to a fantastic and promising start.

Turns out that’s a big if.

According to Law School Transparency, the resultant debt from the average amount borrowed is $120,000. New graduates at the lowest end of the spectrum make $50,000 annually, those on the highest end make $190,000.

It’s not ideal but a graduate making $50,000 per year can still make headway, build a successful career and pay down their loan.

Certainly not ideal, but it can work.

Here’s the problem.

Law school graduates aren’t winning the jobs and opportunities they need. Don’t take my word for it. Let’s look at the data instead to be sure.

According to Paul L. Caron, Dean Pepperdine University School of Law, demand for legal services is declining. The number of graduates has also decreased.

The ABA Journal released a report showing that less than half of graduates had jobs before graduation. The evidence shows a large segment of the law school population doesn’t fare any better post-graduation.

Perhaps this is good news?

Not so much. The percentage of grads employed in (full time/long term) jobs is up, but the total number of opportunities decreased from 28,029 to 26,923. The Bureau of Labor Statistics confirms this stating:

“Competition for jobs over the next 10 years is expected to be strong because more students graduate from law school each year than there are jobs available.“

There are lots of graduates and but there’s not enough employment opportunities to go around. Here’s what this means for you.

If you’re a law student you need an edge.

You need a mix of both quantitative and qualitative skills to succeed in the highly competitive environment you’re already swimming in. When I use the words quantitative and qualitative here’s what I mean.

Quantitative skills	Qualitative skills
Conscientiousness (high)	Agreeableness (high)
Good written/oral communication	Openness (high)
Analytical and logical reasoning (high)	Neuroticism (low)
Research skills (high)	Organization
Knowledge of substantive law and legal procedure	Teamwork
Time management	Attention to detail

These skills are the basics.

Here’s the problem with this list of skills. They’re useful but they’re also quite generic. If you’re a graduate who’s looking to attract a significant amount of employer attention you’re going to need more help.

Dr. Bradford Smart has the answer.

Dr. Smart is the co-founder of Topgrading, a hiring and interviewing methodology that helps firms to identify A player, top-shelf employees. In his book, Smart lists 60+ core competencies an A player needs to qualify as an “A player.”

Here are the behaviors or core competencies that are required for A players. Some of these competencies are easy to change if you don’t have them. Others are harder change, some are virtually impossible.

See what I mean?

If you’ve read this far you probably have the same questions as other readers. This post is supposed to be about digital competency. Why are we talking about job skills, hireability, and core competencies?

Competencies determine success.

These core competencies are the beginning, the foundation that your digital competency needs to be successful.

Here’s why.

Sharing the strategies needed to build digital competency, win your coveted spot in the right firm and keep your position requires these core competencies.

Advice without context creates resistance.

Digital competency is a proxy for… something else

It’s one of the tools law firms use to evaluate, rate and vet potential graduates/candidates. It’s something most graduates won’t do.

Meaning what exactly?

When it comes to digital competency, law firms are focused on very specific details. Law firms, like their clients, are under a significant amount of pressure to perform. They need new associates (recent graduates), who can hit the ground running. These are the graduates who consistently win excellent positions with well-paying firms.

What do these graduates have that others don’t?

Let’s take a look at the specific details you’ll need to achieve the competency you want.

Step #1: Assess your digital competency

You’re aware of the requirements that come with digital competency and why they’re important. You’re also aware of the consequences, how they impact you and your future firm. Here are a few questions you can ask yourself to assess your level of digital competency.

You…

• Understand the pros and cons of online storage options (g. cloud, hard drive and portable storage)
• Know/can identify the appropriate format to store data as well as when each format should be used (e. client data stored on secure hard drives, contract templates stored on cloud document management portals)
• Understand how search engines like Google store, classify and retrieve information
• Know how the Internet works (i.e. it’s a giant network), how people, private companies and governments use it
• Are aware of the various digital services (g. document assembly/management, timekeeping tools, practice management software, e-discovery software, etc.) the formats available (e.g. On-premise, SaaS, IaaS and PaaS software) and you know how to use them
• Understand the consequences of communicating through various media channels (g. phone, chat, video, text, social media, etc.)
• Understand the consequences of identity contribution (g. discussing a client’s matter or sharing private information on social media)
• Can easily distinguish between personal/public information and sensitive data
• Have a professional understanding of legal frames (g. how the law governs rumors, gossip, spam, intellectual property, private data, threats, accusations, etc.)
• Have a general understanding of security best practices (g. following best practices for creating, storing and retrieving passwords)
• know how to encrypt sensitive data (g. two-factor authentication, encryption, password protection or digital fingerprints)
• Know of/have various methods to identify fishing, malware and social engineering attacks
• Have the capacity to learn and/or manage new software/technology on your own
• Have a methodology or protocols in place to personally stay up-to-date with technology changes
• Can perform an in-depth search of information/footprints about yourself and others
• Have a habit of routinely backing up and restoring relevant digital devices and data
• Can competently make a determination of illegal vs. inappropriate behavior (g. bullying vs. leaking secrets)
• Consistently consider the source and location of the data you receive
• Familiar with the terms and conditions of your digital services (g. Avvo’s terms of use)
• Communicate digitally with the appropriate voice, tone and detail

If you’re feeling brave you can take the quiz.

Can you see how many of these questions communicate the core competencies we identified earlier? These details, things your future employer can see, communicates details about you they can’t see.

Step #2: Become acquainted with the software

Your (future) firm needs new associates, graduates who can hit the ground running (you). This means you’ll need a clear idea of the software tools and resources your firm uses to serve its clients.

Isn’t this a bad idea?

Let’s say you learn to use a particular piece of software. You’re hired on at a fantastic law firm but you find the software they use is different. Wouldn’t that mean it’s all for nothing?

Absolutely not.

When it comes to software, there’s a significant amount of overlap. The specific software tool you use isn’t as important as you familiarizing yourself with them. If you’re familiar with the details of one software vendor you’ll have an easier time learning (or re-learning) the details of another tool.

Okay, which software tools do you need?

Practice management

Practice management software actually refers to a suite of tools firms can use to manage their operations. Most attorneys spend 6 to 8 hours a day on nonbillable work. They’re essentially paid for one to three hours of work per day.

Not good.

Practice management software includes some or all of the specific functions listed below. Practice management software is important for a few distinct reasons.

1. The software and forces firm-wide standards. When attorneys track their time, the entire firm relies on a unified measurement of time. This eliminates the everyman for him/herself scenarios that are so common in firms today.
2. Practice management software boost revenue by 50% or more. Most firms bill for their time. Attorneys who wait one week to fill out their timesheets lose 50% of their revenue. Attorneys in many firms typically fill out their timesheets at the end of the month. Yikes.
3. Security and disaster recovery are built-in. Cybercriminals target law firms because they’re data-rich sources with deep pockets. Law firms are prime targets for ransomware, malware and phishing schemes. Cloud-based practice management software reduces these threats dramatically, limiting the amount of data available to cybercriminals.

Productivity/project management

Productivity software enables firms to manage who’s responsible for what and when. Firms are able to manage deadlines and the distribution of work automatically. These productivity and project management tools give firms the ability to measure performance at a glance.

You’ll be able to identify the attorneys, paralegals and support teams caring their weight and those who are not. Law students will want to become acquainted with these standalone tools. How they work, the permissions required, who uses them, how they are used and when.

PDF conversion software

Many firms want to be paperless. PDF conversion is still important as law firm still receive physical documents on a regular basis. PDF conversion software allows you to scan and convert physical documents into digital copies. Adobe Acrobat is still the gold standard so it’s important to become acquainted with these tools, including how they work, what they’re used for, and when.

Document assembly/management

Document automation eliminates or reduces a firm’s dependence on mail merge. Document automation enables firms to customize pre-existing legal docs, enabling attorneys to insert boilerplate clauses and non-generic content into documents that require customization.

This is important because, as we’ve covered previously, clients are less willing to pay for routine or generic work.

They’re looking for value.

Document assembly maximizes your time (as an attorney) on high value, high-risk matters. It also simultaneously reduces the time spent on routine or mundane matters, which is exactly what your clients want.

What about document management?

70 percent of IT managers surveyed “know or believe that users (employees) have business (client) data in their own personal file-sharing accounts.” This basically means attorneys and other firms are storing sensitive client data in their personal Dropbox accounts.

A serious red flag and a major liability for offending firms.

Document management software provides firms with the user rights/permissions and security they need. Office managers won’t have access to sensitive client data they don’t need. When documents are difficult to find, law firms recreate them. When they need mobile access but that access isn’t available, they ask someone else to recreate them.

This creates unpleasant questions:

“Which document version is required for your client’s matter? Who has the right version? Is it you? Are you sure this is the right version? Do you have access to the right version?”

Law students should be fully acquainted with document management and storage software. You should understand how this software handles version control, search and user rights/permissions.

Time tracking, billing and accounting

Time tracking software isn’t created equal. If you’re going to work with time tracking, billing and accounting software, you’ll need to make sure the software you study follows a specific set of criteria:

1. A convenient timekeeping method. The best automated or semi-automated. They provide attorneys with a convenient way to track their time as-it-happens. This eliminates billable leaks and ensures attorneys are focused on tracking their time. Time tracking is important even firms rely on alternative fee arrangements.
2. Provide invoicing directly in the program. Attorneys should be able to create an invoice directly from their time tracking program. It’s ideal if the software works with UTBMS and LEDES billing codes.
3. Allows for trust accounting reconciliation and IOLTA administration and management, ensuring compliance and proper management of client trust accounts.
4. Provides robust reporting covering a variety of details including firm realization, accounting activity, client details, time and expense entries, user activity projects/matters productivity over time, etc.

Law students should spend a significant amount of time working with time tracking, billing and accounting software from an industry leader.

Case management

Case management software typically includes contact management (with a global search for conflict checks), calendar management, email archives, time tracking, billing and accounting. You want to learn to use these tools with appropriate details.

Learn how to schedule events, track emails (and conflicts), manage contacts and work with archives.

Internal communication

Slack, Apple’s Facetime, Microsoft Skype and Google Hangouts have been touted as helpful tools for lawyers to use in their practice. Here’s the problem: Facetime and Hangouts stores your content on their servers indefinitely. Skype stores content from calls with more than two participants.

Your conversations as a firm employee aren’t necessarily private.

They’re easily accessible via legal (subpoenas) and illegal (hacks, phishing) methods which means this is an enormous disaster waiting to happen. There are also a few significant downsides. These options don’t record meetings, chats and files. They also don’t integrate with the tools and resources your firm is already using.

Your firm needs (and may already own) secure software that allows you to communicate with your future team privately and securely. You’ll need to know how to use secure communication tools that provide you and your (future) clients with the privacy, control and security they need.

This is what you need to achieve digital competency

What if you’re way off?

What if you missed the mark completely focusing on insignificant details from software that isn’t a fit. There’s an easy way to avoid the situation.

First, determine where you’d like to work. If you’re interested in BigLaw, reach out to employees at other firms and ask for their help. Small to medium-sized firms? Do the same thing.

Second, ask them about the software programs they use. If they ask why tell the truth. Tell them you’re looking to improve your chances of winning a BigLaw position and you’re looking to become digitally competent. Let them know that you’re looking for ways to learn more about the tools and resources you’ll need to be great at your job.

Take notes.

Third, reach out to these companies and ask for their help. Tell them the truth as well then ask for what you want. A free copy or student license of the software so you can learn. Tell them you’d like to share their software with your classmates (only if it’s true).

Rinse and repeat.

When you get a free copy or license get to work. Take the time to get to know their software, tools and resources. Create a sample project or matter you can work on.

Finally, update your resume. List the software, tools and resources you studied on your resume.

Digital competency isn’t optional

It’s a requirement if you want to win.

Law schools are shaking up their curriculum, prioritizing digital competency ensuring graduates are better prepared for life after the bar. Change is slow.

Law school students can improve their postgraduate prospects by focusing on their core competencies. The skills and technology needed in their practice area/firm.

As far as critical thinking goes, lawyers are exceptional.

Law firms aren’t resisting technology, they’re embracing it, albeit slowly. Firms all around the country are adapting to meet the high-pressure demands of today’s modern client.

Adapt now and you’ll win.

Use this guide to digital competency, and you’ll have the tools and resources you need to show firms you’re the better candidate.