3 New Year Resolutions For Law Firm Success in 2019

It sounds unreasonable.

Researchers say you’re going to fail to keep your New Year’s Resolutions, but you should try anyway. At first glance, this sounds ridiculous.

Why set yourself up for failure?

Because your New Year’s resolution is one of the best ways to create a virtuous cycle of success. Success leads to more success, and success typically begins with a goal or a plan.

The hidden secret to New Year’s resolution success

It’s something the jaded and skeptical take for granted. Failure, whether firsthand or vicarious, is the fuel that drives incremental growth and success.

You need it to grow.

Here’s the problem most firms run into. Those who choose to set goals for the new year do so with the expectation of success. Many of us begin with the unrealistic expectation that things are going to go exceedingly well.

We’re disappointed when it doesn’t.

When we fail, we’re often very hard on ourselves. Is our failure due to some kind of weakness or inefficiency on our part?

Not usually.

The cause is something a bit more, nefarious. Our expectations are to blame. Our fuzzy, implicit and unrealistic expectations wear our emotional resolve down. There’s a simple way to avoid this problem. A strategy that, when used correctly, creates a virtuous cycle automatically. What is it?

Condition your firm to fail forward.

Create New Year’s resolutions.

Set goals that are timed, concrete and measurable.

Do your very best to create something that will take you in the direction you’d like your firm to go.

Expect and prepare to fail

But fail forward.

What does that mean exactly? It means that you’re fully aware that things aren’t going to go as planned. You’re going to miss the mark on your first attempt. That’s okay.

Find one thing.

Just one, single, tiny detail you can fix permanently. Then you implement that fix. Then, you try (and fail) again. Find another tiny detail you can fix permanently. Then you try again.

Are you seeing this?

You’re making systematic improvements towards your goals. You’re prepared for failure. Failure isn’t a disruptor or an agent of chaos, it’s the tool that drives you forward.

This is great and all…

But it doesn’t really give you a whole lot of clarity about the goals you can set now, does it? Which New Year’s resolutions are appropriate for law firms?  Where do you focus your attention?

You look for trouble spots.

Here are a few areas you can use to approach goal setting in an appropriate way.

Resolution #1: Improving utilization rates

Your utilization rate is a reflection of your firm’s productivity and billing efficiency. The higher your utilization rate, the more efficient your firm.

This can be difficult to manage.

Most firms are buried under an avalanche of nonbillable work. They spend a significant amount of time on tasks that simply fail to ring the meter.

How do you fix this?

1. You learn about the gaps in your firm’s utilization
2. Identify strategies to improve your firm’s utilization rate via utilization optimization
3. Pick one element to improve, ignore other strategies until you achieve a decisive win

Let’s break this down even further.

Bad habit: poor/inaccurate timekeeping

Cue: Tracking time away from my desk

Routine: I reconstruct my time, on post-its, at the end of the month

How to change: Find an automatic time tracking tool. Create a tiny habit to make usage permanent

See how the win is baked in?

Resolution #2: Boosting realization rates

Realization rates are on the decline.

A Thompson Reuters report found that collection realization rates are in free fall for many firms. This doesn’t have to be the case for you. As you know, your realization rate measures the amounts you bill vs. the amounts you collect.

It’s sobering.

Many firms find write-downs and write-offs to be a consistent part of their practice.

It doesn’t have to be.

Let’s say we resolved to fix this in 2019. How would you go about fixing this?

1. Discuss with your team. Identify the causes of poor realization internally
2. Use realization optimization to improve your firm’s billing, collection and overall realization rates
3. Implement a fix for the easiest cause (e.g. invoicing regularly). Make the fix permanent.

What if we broke this down further?

Bad habit: I’m too busy. I forget to send out invoices on time

Cue: I don’t have automatic reminders

Routine: I send the invoice late, clients think they’ve already paid and dispute their bill

How to change: Automatically convert tasks to time entries. Create automatic reminders sent via text, app or email to send invoices on time. Invoices sent out automatically

See it?

The path to success comes in steps, not leaps.

Resolution #3: Improving work/life balance, increasing billables automatically

Associates are struggling with burnout.

They’re consistently expected to deliver more with less. It’s common for associates to feel they’re only productive on nights and weekends. This isn’t a mandatory state of affairs.

Believe it or not, burnout is optional.

Attorneys are losing as much as six to eight hours, a full workday, every day, on nonbillable work. This destroys work/life balance and it makes it difficult for attorneys to do their best work over the long term. Contrary to popular belief most attorneys need more time, not less.

How do you fix this?

1. Identify your total pool of common/must-have to-dos (e.g. drafting briefs, meetings, deposition, administrative, intake, marketing, etc.)
2. Segment your to-dos into four categories: (1.) outsource (2.) delegate (3.) to-do (4.) delay/discard
3. Determine when and how to outsource/delegate
4. Use a legal project management tool to manage important to-dos and items to delay/discard

Let’s simplify this.

Bad habit: I do everything in my firm myself (poorly)

Cue: I’m distracted by the latest to-do or most urgent fires. I’m always behind

Routine: Every month I fall further and further behind

How to change: Use a practice management tool to direct my attention. Hire one person (freelance or employee) to handle _____ for me

If you’re paying for a tool you’re more likely to use it. If you’ve hired someone to help you, you’re more likely to give them something to do.

See how the win is baked right in?

Failure. It’s the secret to New Year’s resolution success

It sounds unreasonable.

But the data shows researchers are right. You’re going to fail to keep your New Year’s Resolutions. When you have the right structure this is a very good thing.

Focus your attention on failing forward.

Learn to see failure for what it really is. An opportunity for error correction. With the right approach and a bit of know-how, you’ll find failure leads your firm to a virtuous cycle of success.

What would it be like to produce stellar work consistently?

It sounds like a dream.

The reality is even more surprising. But it’s completely possible for firms that rely exclusively on cloud computing to get the work they need done. The cloud produces incredible benefits for firms that use it.

What kind of benefits?

Let’s take a look at those now.

Benefit #1: Consistent quality of work

Most attorneys are used to having things done a certain way. They rely on specific tools and they use them in a very specific environment (their office).

Take timekeeping for example.

Most attorneys rely on manual methods to track their time. Primary research found:

• 34% of attorneys kept logs on paper (yes, real paper)
• 45% used desktop computers via spreadsheets
• 6% used laptops
• 48% used a tablet pc
• 96% used a smartphone

And if they’re away from the office?

• 27% kept their logs in paper
• 4% used their laptops
• 81% their tablets (via spreadsheets?)
• 2% used their smartphones

So if we’re just looking at the environment alone there’s a significant change here. If your attorneys aren’t in the office they won’t be billing for work the same way.

Which most likely means billable leakage.

Firms that rely on the cloud have consistency. If you’re using apps in the cloud, you’re able to produce high-quality work on demand. You’re able to track their time accurately and automatically, using the same system you’re familiar with whether you’re using a desktop, laptop, tablet or smartphone.

Time tracking, billing and invoicing. Client, task and project management. Document storage and management. The cloud gives you access to tools that work the way you expect, regardless of the device you’re on or your current circumstances.

The cloud enables your firm to perform consistently whether you’re online or offline, in or out of the office.

Benefit #2: Outsourced security and reduced expenses

Global Biglaw firm DLA Piper flaunted their expertise in cybersecurity compliance. Yet in 2017, they were hit with a rapidly spreading ransomware attack called Petrwrap/Petya.

Unfamiliar with ransomware?

It’s malicious software that encrypts and blocks access to data. Data you own, the data that’s already on your computer or server.

The issue?

DLA Piper had previously published educational materials outlining the nine steps organizations should follow to protect their firm from a ransomware attack. An investigation uncovered some surprising details.

They didn’t follow their own advice.

The malicious software spread from one satellite office to the next, affecting offices in the US, UK, Europe and the Middle East. Almost every employee of the firm was sent home while they struggled to contain with the problem.

When you rely on cloud software you outsource security.

You dramatically reduce the expense, time and effort needed to protect your firm’s data. Firms working with cloud providers know their data is safe both in transit and at rest.

You’re able to focus on what matters most: the advocacy.

You have the tools and resources you need to protect your data, your client’s data and your firm from imminent attack.

Benefit #3: You win and keep more clients

This is surprising.

A Microsoft survey found 91 percent of customers would leave a business that used or relied on outdated technology/methods.

The survey provided some additional details.

• 61 percent think an SMB is outdated if it’s using an operating system that is more than five years old
• 25 percent think an SMB lacks credibility if it is using a free email service
• 68 percent think “modern technology” is key to the success of a business
• 70 percent said they would be “extremely or quite concerned” about providing personal information on an outdated SMB website

Is this purely about perception?

Not at all.

Your clients want to know that you’re capable of keeping up with competitors in the marketplace. But they also want to be treated fairly.

Think about it.

Imagine that it takes your competitor three hours to complete a task you can easily complete in 30 minutes. If your clients are reasonably experienced (and many are these days) they may start asking questions.

What are the ramifications here?

• More billing disputes as clients look to verify their work
• Begging clients to pay their invoice in full
• They’re forced to rely on more write-downs and write-offs
• Difficulty keeping clients as distrust becomes a problem for them
• Difficulty attracting clients as negative word-of-mouth spreads about their business

This is just one problem.

It’s a subtle consequence that’s easy to miss and even easier to discount. Client expectations continue to rise. They come to you with unspoken expectations. If your technology fails to perform, you fail to perform.

That’s a deal breaker.

When you run your business in the cloud you avoid these distractions. You focus your time and attention on the details that matter most, the advocacy. You’re saving time, money and resources but most importantly?

You’re improving your ability to attract and retain key clients.

In our shifting legal landscape, this is the key to your firm’s survival. The cloud enables you to rapidly adapt to the shifting legal landscape. In fact, it forces you to adapt.

Why?

Your cloud provider’s interests are aligned with yours. They’re enduring the same intense pressure you are. The pressure to perform, to adapt and grow. If they continue to perform, they keep you as a client.

You produce stellar work

The cloud enables you to produce that stellar work consistently. The cloud produces incredible benefits for the firms that rely on it. The cloud gives you a secure, stable and consistent environment to work from. This increases the likelihood that your work is consistent as well.

Online or offline. Smartphone, tablet, laptop or desktop – it shouldn’t matter.

Many small firms are still confused about the cloud. They’re unsure about the benefits it provides, the opportunity to transform their firm into the high-performing powerhouse it could be.

You’re not.

If you’ve read this far you’re aware of the key benefits cloud computing provides. With the right provider and outstanding support, you’ll find the cloud has everything your small firm needs to grow.

You’re a specialist for your general litigation law firm.

A highly trained general litigator who’s focused on one simple detail for each of your clients.

Resolution.

Here’s the issue. If your clients are defendants they don’t want to spend any money whatsoever. However, as plaintiffs, they want as much money/benefits as they’re able to get for their grievance.

Why does that matter?

Because litigation is difficult and expensive. When litigation relies on a process, things perform smoothly. When it doesn’t…

Litigation becomes a source of intractable conflict

The expensive kind of conflict that drags on.

The kind of conflict clients are typically prepared to spend (waste) a significant amount of money on litigation simply to “prove a point” to their opponents. Of course, you know the truth about this situation.

You’ll need to talk your clients out of it.

Sure clients say they want to press the issue, but most of the time this isn’t absolutely the case. Litigation is typically about money, principle or precedent.

Which is why efficiency is so important.

Litigation efficiency depends entirely on the systems, structures and procedures surrounding your firm. The more efficient your firm, the better you are at litigating your cases.

Here are four tips you can use to boost your firm’s efficiency.

Efficiency tip #1: Assemble your team of litigators.

You’ll need to assemble a team.

Litigation, as you already know, is a specialized skill. Work to identify the employees on your team who are capable of handling specific strategies and tactics.

Sit down with your clients.

Map out a plan that outlines important details you’ll need to cover ahead of time. How many attorneys are needed to handle your client’s matter? What’s the level of expertise required for each attorney (and the fee/rate for each)?

What are the roles and responsibilities of each person on your team?

Efficiency tip #2: Pre-manage your projects/matters

What needs to be done?

Which attorneys, paralegals and support teams will be assigned with what tasks? You’ll want to make sure that you outline your project management details ahead of time.

Segment your team accordingly.

Will you be using in-house associates for the bulk of the work? Or will you need to rely on freelance talent to support your team? Assigned tasks based on your team’s abilities, education and skill set. Outline the tasks that will require junior and senior associates.

Divvy up tasks accordingly.

Efficiency tip #3: Set communication procedures

You want to set communication details and procedures ahead of time. Discuss the appropriate communication channels, frequency and format.

How you communicate with each of your clients?

Outline how you monitor the comings and goings of each case. Request/provide open communication with each of your clients. Ratify any important communication details including transparency, channels, timing and goals and objectives.

Efficiency tip #4: Outline billing and budgetary guidelines

What your client’s billing guidelines?

What specifically are your billing requirements and guidelines? Do you need time to negotiate favorable billing terms with each of your clients?

When it comes to billing you want to identify:

• Attorney rates and fee arrangements
• Work that’s required/permissible
• Tasks and to-dos that require approval from your client
• Forbidden/unacceptable projects, tasks and to-do’s
• Stop words and hidden rules that clients expect you to follow

This maximizes billing efficiency.

Once litigation begins, it’s a good idea to review invoices against the budget with your clients. Verify that task allocation, fee arrangements and billing methods are in line with client expectations. You’ll be able to give your client’s matter the attention it needs, instead of wondering whether you’ll be paid for your hard work.

Your general litigation law firm is invaluable to your clients

But litigation is often a source of intractable conflict.

You’re a specialist. A highly trained general litigator who’s focused on one simple detail for each of your clients.

Resolution.

Your clients expect you to defend and dissuade, to protect their interests. They ‘re often prepared to spend (waste) a significant amount of money on litigation simply to “prove a point” to their opponents. The expensive kind of conflict that drags on.

This is why efficiency matters.

Litigation efficiency depends entirely on the systems, structures and procedures surrounding your firm. The more efficient your firm, the better you are at litigating your cases. Follow these tips ahead of time and you’ll find you’re consistently able to generate the results your clients want and need.

Attorneys at general ligation firms juggle too many balls.

If you’re like most firms, practice management is a challenge. You’re responsible for an avalanche of data, tasks, projects and procedures. As far as practice areas are concerned, litigation is fast paced.

Your margin of error is slim.

Your timing must be precise. The wording in your communication, exact. A single slip up, a minor mistake, could be the crack opposing counsel needs to take the upper hand against your client.

Practice management is challenging for general litigation firms

It doesn’t have to be, but it is.

Why is practice management so challenging for so many litigators? What struggles are the these litigation firms dealing with on a daily basis?

It comes down to fundamentals.

The litigators with a strong foundation and rock solid business processes do well. The ones lacking this strong foundation… they struggle.

Here are some of the unique challenges they’re facing.

Challenge #1: Inefficient, manual workflows

Litigation cases all follow the same basic structure. It includes a mix of routine (e.g. demand letters, deposition summaries, case timelines, etc.) and challenging elements (e.g. client advocacy, trying a case in court, etc.).

But routine isn’t automatically efficient.

Many firms struggle as a result of poor workflows. Firms may not have enough of the right people on a particular case. They may have too many senior attorneys/partners on a case when a more conservative mix is appropriate.

Then, there’s project management.

Who is responsible for what specifically? When is it due? What are the project/task dependencies? If you were to ask most firms this question about a particular case, most wouldn’t have an answer.

Challenge #2: Information overload/scarcity

Gartner found that most law firms are missing almost 50 percent of their data. Eighty percent of the intellectual property a firm handles is communicated with or stored via email.

Litigators struggle with too much or too little.

They either have a mountain of data to sift through to find the documents and information they need or the documents they need have gone missing. Even worse, they’re completely unsure about the status of their individual documents.

• Is this document current?
• How many revisions or amendments were made to this document?
• Who made these changes? When?

As a result, litigators end up trying cases without the adequate data they need. If you’re working with a standard fee arrangement (i.e. retainer) you may be able to keep your head above water. If you’re paid on contingency, not so much.

Challenge #3: Lengthy timelines

Litigation takes time.

You’re well prepared for that fact but your clients aren’t. Most lack the mental and emotional fortitude needed to stay the course.

This is understandable.

It often takes one to three years for a case to reach trial. Once it does, litigation can continue for several more years. It makes sense then, that client interest begins to wane over time.

Here’s why this is a problem.

Desires and expectations. Your clients expect you to communicate with them regularly. Even when you have nothing to report. Clients expect that you’ll consistently provide them with a steady stream of information communicating that their case is proceeding as expected.

This rarely happens.

More often than not, clients hear from the attorneys on their case when there’s something pertinent or noteworthy to share. In the meantime, clients are left sitting on pins and needles as fear, insecurity and uncertainty wears them down.

This leads to unmanageable clients.

The kind of clients who are so focused on achieving a particular outcome (emotional or financial) that they become unwilling to listen to you.

Firms that provide clients with (a.) consistently clear communication (b.) clear options to follow and (c.) a secure communication system that gives them a modicum of control will find their clients are easier to manage. Which is something most firms don’t have.

Practice management is difficult for litigators

It doesn’t have to be, but it is.

Your timing must be precise. The wording in your communication, exact. A single slip up, a minor mistake, could be the crack opposing counsel needs to take the upper hand against your client. As a litigator, you’re forced to juggle a growing number of demands on your firm.

Your margin of error is slim.

As pressure from external sources begin to mount, more firms are finding they’re unable to keep up with the demand. You have an opportunity to change that for your firm.

With the right foundation, you’ll find practice management provides the stability, profitability and success your litigation law firm needs.