WSSFC Practice Management Track Session 11 Hanging Your Shingle Part 2

Transcription

1 WSSFC Practice Management Track Session 11 Hanging Your Shingle Part 2 Sarah L. Ruffi Ruffi Law Offices S.C., Wausau

2 Hanging Your Shingle - Part II Presenter: Attorney Sarah L. Ruffi Ruffi Law Offices, S.C. According to Compensation for Law Firms, an ABA publication, "75% of every fee dollar goes toward compensation in a law firm, be it partner compensation, associate or support staff salary and benefits." 1. Some signs that indicate you are ready to grow a. You can produce enough billable work to justify hiring that person b. You can take work off your desk so you can do more billable work c. You have more work than you can comfortably handle d. Raising your rates doesn't reduce your work load e. The volume of work you're doing and the hours per day you are spending is such that you can physically not do more for the firm to help it grow f. Breakeven: additional revenue generated or reduced strain on you = increased cost of hiring someone 2. Do you need another attorney, paralegal or support staff? a. Who is currently producing the work? b. What am I doing that could be delegated? c. Where can I make changes? d. How can I make better use of my time? 3. Discover ways your practice will change by adding a new employee a. Perfect the art of delegation i. Determining "Who" receives the work 1. Define what you need. Ask yourself what you do that could be delegated to someone else and who that person is. 1 - Ruffi - Hanging Your Shingle Part II

3 2. List the characteristics of the ideal candidate. Knowing your needs and what it takes to satisfy them is key to finding the ideal employee. 3. Determine who is qualified to do the work. a. One project may be divided between multiple employees based upon the skill required or done by one employee. b. Train your staff the skills which will all them to provide better service and enhanced skills to your clients. ii. Follow the S-M-A-R-T approach 1. Specific - be very specific about all the actions to be taken, unless the person receiving the work is proficient at the work 2. Measurable - establish exactly what you intend for the outcome 3. Accountable - select someone that will take ownership of the work 4. Realistic - allow time for mistakes and make sure deadlines are reasonable 5. Timeline - state a specific completion date, any checkpoint dates, and the impact of not meeting the deadline b. Spend more time managing people and projects i. Create systems for as much of your practice as possible 1. Every process has common elements 2. Every procedure has been done previously 3. Processes and procedures are documented, flow charted or check listed ii. Customize documents to fit your practice, including letters iii. Have written procedures for every aspect of your business to make transitioning employees easier 2 - Ruffi - Hanging Your Shingle Part II

4 iv. Use written job descriptions for each position v. Create a time plan for your practice with blocks of time for various activities (i.e. client develop, meetings, working on files, phone calls). c. Remove administrative tasks/ lower level legal projects from your plate i. Free up your time for higher level legal work ii. Create standard procedures that you no longer have to do, such as: d. Leverage yourself 1. Opening files 2. Closing files 3. Retainer letters/agreements 4. Running pre-bills 5. Screening clients 6. Collections 7. Call handling script i. Must be able to control your files - Case Manager system ii. Decide what to delegate 1. Does this require my level of expertise? 2. Is there someone else more appropriate for this task? 3. How many times will this task need to be done? iii. Delegate effectively iv. Follow up and manage the work being done by others v. Quality control of delegated work vi. Present a "team" approach to clients e. Step up client development efforts i. Work on building and maintaining long-term referral relationships 3 - Ruffi - Hanging Your Shingle Part II

5 1. Build "friend" relationships instead of marketing 2. Stay in contact regularly 3. Treat staff with respect and kindness 4. Know who refer clients to you and keep them in a database 5. Record important information about each contact 6. Review your notes before each meeting ii. Who you know is always better than what you know 1. Identify your referral sources 2. Work to expand your referral list iii. Words mean business 1. How you speak about yourself and how others speak about you begins or expands the relationship development process 2. Make sure your words create a positive distinction between you and the listener's image of a lawyer 3. Have an elevator speech refined to describe what you do 4. Tips for successful client and prospective client meetings a. Create an environment that builds trust b. Listen fully c. Communicate fully d. End the meeting courteously e. Follow up promptly with any promised information f. Schedule additional time to make notes, dictate or take action g. Never put anything in the file you wouldn't want the client, another attorney or opposing counsel to see h. Bill promptly and with explanation iv. Be selective in who you represent 1. "F" clients demand more time than "A" clients, cause more stress and frustration, and pay far less, if they pay at all 4 - Ruffi - Hanging Your Shingle Part II

6 2. Don't trade quantity of clients for quality clients 3. 80/20 Rule: 20% of your clients will pay 80% of your income 4. How to turn down referrals: v. Marketing can be fun a. Talk to referral sources so they understand your desired clients b. Implement systems to screen prospective clients c. Develop a list of people you can refer to d. Say "NO" diplomatically e. Quickly send to referral source to let them know f. Send thank you note to referral source 1. The best referral relationships are based on friendships 2. Shared interests strengthen referral relationships 3. To be most effective, marketing activities need to be compatible with your personal interests, hobbies and personality type. vi. Marketing efforts must be consistent 1. Maintain relationships by regular periodic contact 2. Commit to a minimum level of marketing each week a. 3 contacts per week to maintain your practice b. 5 contacts per week to grow your practice vii. Be persistent 1. Follow continued consistent action 2. Expect breakdowns 3. Support and accountability are key 5 - Ruffi - Hanging Your Shingle Part II

7 4. How to prepare for additional staff a. Create checklist for each type of employee (associate, paralegal, assistant) b. Make sure you have an office/work space for the person c. Have computer set-up, including password, and d. Make any changes to office equipment (i.e. copier, fax, etc.) e. Update voic greeting, if necessary f. Update website and any social media websites g. Change letterhead, including letterhead on form letters h. Order business cards i. Update Martindale-Hubbell listing or any other listing service j. Notify any organizations (i.e. Chamber of Commerce or State Bar of Wisconsin) k. Make sure you have a license for any software (i.e. accounting, legal research) l. Check status of notary m. Prepare Employee Handbook n. Put together a welcome package o. If new hire is an attorney, additional things to do: i. Notify malpractice carrier ii. Notify State Bar of Wisconsin iii. Check status of admissions to Western & Eastern Districts iv. Prepare announcement 6 - Ruffi - Hanging Your Shingle Part II