October 2005

1. Is Marketing Dead?
2. Can Law Firm Administrators Guarantee Job Retention?
3. Could you REPAIR from a Disaster?
4. More Examples of the Power of the Internet
5. Massachusetts Lawyers Weekly

Articles

1. Is Marketing Dead?

   Are marketing departments and CMOs on the way out as key components of doing business? The thought was triggered in my mind by a USA Today story that Coca Cola, arguably the best marketing company in the world, was eliminating the position of Chief Marketing Officer. This is an interesting twist, and may portend ill for those who "specialize" in marketing - given that every person in an organization, including staff, has a broad impact on marketing that organization.

   My own definition of marketing is broad. I see it as the process by which we seek to persuade others of the merits of our beliefs. I believe most everything we do has a marketing element - the way we speak to people, the way we dress, even the way we eat. All of our activities impact others in one way or another. Some of our actions may "turn people off" while other of our actions persuade them to come closer to us and actually interact with us. This definition accepts the proposition that there is both a negative as well as a positive aspect to marketing , depending on the actions of the individual.

   Because marketing is so personal, everyone in a law firm - receptionists, secretaries, paralegals, as well as attorneys - has marketing responsibility. More and more the marketing function is being pushed down, organizationally, to the level of every professional responsible for interacting with the clients/prospects, with some organizational assistance. Customers and clients like to buy from someone with whom they enjoy doing business. The real key to marketing is the creation of one-on-one personal relationships in order to increase business.

   I recently read a study contending that doctors talk three minutes longer with their patients (clients) than other professionals (lawyers) and that doctors are sued less than lawyers. The conclusion was that this extra communication lowered the risk of malpractice because it was effective marketing - managing the expectations of the client. Probably far-fetched. But it is true that the focus of the conversation between a professional and a client/ patient/ customer must be to understand the intent and desires and wants of the client. Only then can you shape your assessment. If the two are in harmony, and you inform the client (so the client understands clearly) what to expect, there is little likelihood of a malpractice claim.

   This is not merely marketing - it is effective lawyering. And that's the point. Marketing is the sum total of what all of us do, in our firms, to serve the client. We are the marketing department. And maybe that's why we don't need CMOs.

2. Can Law Firm Administrators Guarantee Job Retention?

   The rules of professional conduct require that lawyers cannot take on a new client without a signed engagement letter of agreement stating each party's responsibilities in the relationship. Senior law firm administrators, such as Executive Directors and Chief Operating Officers with responsibility for accounting, human resources and similar functions, can benefit from this example when accepting their positions from their law firm employer.

   Administrators should require that a senior lawyer in the firm - such as the CEO or the Managing Partner - provide a written statement of the lawyer/employer's responsibilities to the administrator. These responsibilities should foster the communication and accountability necessary for the administrator to be successful, with such specifics as:

   • The lawyer will respond to an inquiry from the administrator within 24 hours;
   • The lawyer will meet with the administrator for two hours once a week;
   • The lawyer should provide clear and direct communication in requests and directives

   Such a written statement of responsibilities is definitely a two-way street, spelling out the specifics of what the lawyer/employer must do, and what the administrator must do in order to reach the necessary measurements for success in his or her position. Measurements for success - profits per partner, administrative costs, response times - must be clearly spelled out, with full agreement on which of them are within the administrator's control and what levels of success will qualify the administrator for bonuses or additional compensation.

   Most lawyers/law firms as employers act on the premise that all non-lawyer administrators, including such senior managers as the Executive Director or COO, are servants to the law. Traditionally, servants are terrorized in the master-servant relationship when the master changes course or doesn't honor the perceived agreement governing the relationship. The senior administrator can change this dynamic, using a written agreement that defines the administrator in the role of colleague and not servant.

   As colleagues, each party understands and focuses on its real areas of responsibility: the senior administrator for operating efficiency, senior lawyers (individually or as a Management Committee) for the strategy and future growth of the firm. These are two separate and equally important roles. Spelling them out clearly in a letter or memorandum of engagement is the best way to ensure that both sides in the law firm dynamic will fulfill them successfully.

3. Could you REPAIR from a Disaster?

   After Hurricane Katrina, I revisited and revised what I had written four years earlier, after the 9/11 terrorist attacks. At that time I worked with large firms to create a plan for future disasters (earthquake, fire, plumbing-water leak damage, and so on) and subsequently created a Disaster Recovery Roundtable to facilitate discussion of the whole topic. Just as I was finishing a power outage hit the entire City of Los Angeles, highlighting that disaster can be as huge as Katrina and as small as an hour's disruption and total shutdown because of the loss of power.

   "Disaster" for a law firm is not a question of "if," but rather of "when." The only unknowns are what the type of disaster, when it will occur and how bad it will be. Preparing for a disaster and repairing from one are two completely different things. The real issue is more than recovery, it's business survival - the U.S. Department of Labor says most companies that experience a major disaster are out of business within five years, because only 25% of companies have a disaster plan.

   A disaster plan is only a first step. Once you create one, review and revise it at least every six months to keep it from going stale and becoming useless. Periodically pretend there is a disaster, implement the plan, and change those aspects that didn't work as well as desired.

   The essence of a plan should be how your firm repairs itself after a disaster.

   These are the keys:

   • Communicate with associate lawyers, staff, clients, vendors, the courts, and others who make your business work. Assign one person to contact clients and vendors, to tell them what has happened, explain the status of their pending matters, and convey that the firm will do its best to take of needs and concerns.
   • Assume you will be starting the law practice all over again. In a disaster like Katrina it may have to be in a completely different geographic area, because the local vendors you need (phone companies, landlords for office space, local technology consultants) will themselves be going through the same process of reestablishing their businesses.
   • Investigate how to establish yourself with new financial institutions and insurance carriers, bar associations and courts, vendors and suppliers, utilities, and other service providers .
   • Resolve or move along all current cases or work-in-progress by getting a continuance or rescheduling a deposition. You may need to refer cases to another lawyer or firm.
   • Give top priority to collecting existing accounts receivable and securing an emergency bank loan so you have funds to disburse for rent, payroll, insurance settlements, new office arrangements, supplies and much more.

   Accepting that you will be starting from scratch, and knowing how to do it, is the essence of successful disaster recovery.

4. More Examples of the Power of the Internet

   Last issue I talked about how the editor of the monthly electronic newsletter at IOMA, the Institute of Management Assistance, chose the www.lawbizblog.com. I'd like to share with you.

   I received notice in early October from Mark Kuiack, the editor of the Canadian Bar Association's CBA PracticeLink Web site, that he had chosen our blog as 'Feed of the Week' in their Marketing Section. Mark's notice stated, "I often refer to your site ... I wanted to point CBA members in the direction of the great resources on the LawBiz^® blog... Thank you again for providing such a valuable service!"

   Both of these selections were without my prior knowledge or request. That's the power of the Internet.

   Advice for lawyers: Target your market, be specific in your blog postings, be frequent and your market will learn what your value to them can be and why they need you and your services. You can find yourself getting the same kind of response in your own efforts.

5. Massachusetts Lawyers Weekly

   At the end of September we introduced a new business advice column for attorneys in Massachusetts Lawyers Weekly. The new column, branded the "Coach's Corner," appears each week. Our goal is to address timely issues relevant to the day-to-day management of a law firm, and offer readers practical advice for operating a more profitable law practice. The column can be read on the Massachusetts Lawyers Weekly

   Reprints of the articles are available on this site on the Coach's Corner Page.