The Bottom Line
March 1999 Vol. 20, No. 3
Statements or expressions of opinion or comments appearing herein are those of
the editors or contributors, and not necessarily those of the association or section.
Contents
* Managing a small firm general practice
* Saving time and adding value: Assorted computer tidbits
* Year 2000: Should lawyers be concerned?
* Legal management consultant Ezra Tom Clark identifies six challenges facing lawyers
Opinions about the products discussed in this issue are strictly those of the authors. Their opinions do not constitute endorsement or recommendation by the Illinois State Bar Association.
Managing a small firm general practice
By Michael S. Froman, Skokie
When your editor told me that he thought an article about small general practice law firm management would be useful to the readers of this newsletter, he turned to me and asked if I could write such an article. In contemplating the subject and attempting to frame the management of a small general practice law firm within the scope of such an article, I spent a good amount of time thinking about the most important ingredients involved in practice management.
Two essential elements of managing a small, solo, or indeed any practice would be effective use of time and the effective connection with and retention of clients.
Managing time has been an evolutionary process in the nearly 20 years that I have been a solo and small firm practitioner in Skokie, Illinois. I think that some of the things I have learned along the way may be applicable to suburban, big city, and smaller town practitioners. There must be, and there are, some general concepts and principles that should guide the management of any practice regardless of size or location. I'm not sure what should be given first consideration as there are so many factors to consider in the balancing of the demands of practice, the necessity of maintaining skills and current information, and the management of the office together with the ongoing need to maintain a client base and develop new clients. Perhaps it is appropriate that lawyers in smaller practices should recognize themselves as jugglers of the many demands placed upon them in terms of time management and the management of clients. All of this overlaps to some degree.
Those who are fortunate to practice in a larger law firm environment have the margin and level of comfort knowing that certain elements of practice management and office management are accomplished through paid staff members whose function it is to provide for the essentials as well as the general operation of the office. Persons in larger firms can almost take for granted the reliable presence of common, mundane items from legal pads, pens and folders to exhibit stickers. Small firm and solo practitioners do not have that luxury; there is more to remember, more lists to make, more reminders to oneself and one's staff, and all of this of course adds to the overall level of stress of practice. At the same time, there is some comfort in knowing that office politics and the demands of partners, associates, and the problems that arise from having a significant number of persons about the office are greatly diminished in small and solo firm practice.
Most essentially, management of a small or solo firm practice is a balancing act. Often, the small firm or solo practitioner is walking a tightrope without a safety net to catch a fall.
On a practical daily basis, balancing the demands of practice and maintenance of clients depends on effective time management. I may be among the least authoritative sources in that regard. Somehow, however, just about everything that needs to be done can be accomplished if the practitioner is willing to extend the work day, extend the work week, and take work home in the evenings. This is a basic and unavoidable fact of life in a small or solo firm.
A wise judge once told me that an important part of practice management is learning to say "No." He believed, as I do, that one must limit the areas of law in which you practice very simply because it is impossible to keep up to date in virtually every area of the law. Any attorney who tells a client that he or she can do anything and everything is either untruthful or foolish or both. As a "generalist" it's important to act like the good medical internist who listens to the complaints, problems and symptoms of his or her patient and makes a diagnosis and then recommendations to other health care providers.
Knowing other lawyers to whom matters can be referred is one important element of successful time and practice management. Directing clients in their requests for legal assistance to the right attorney will keep clients happier and solidify their loyalty to you. It is unwise to overcommit or promise a client delivery of services in an area of which you know little or next to nothing. Thus, establishing and maintaining contacts with other attorneys is essential. In turn, they will undoubtedly reciprocate in your areas of strength.
By maintaining an informal network and regular contact with certain other attorneys, management of a busy court docket becomes somewhat less burdensome. I feel generally free to call upon friends and co-counsel to fill in for me when my schedule is conflicted and I cannot be in three places at the same time.
The use of a clerking service, perhaps not always available in smaller jurisdictions, has also been an effective time management tool. While some courts do not allow clerks to step forward to seek orders, the judicious use of clerks, where permitted, can save enormous amounts of time and thereby helps extend the attorney's opportunities to attend to client needs rather than answering routine court calls or obtaining continuances in court locations distant from the office and not necessarily convenient on a given day.
With convenience in mind, I am a strong believer in the use of suburban civil court facilities. The location of the five Cook County suburban courthouses is a boon to suburban practitioners. These gems have, over the years, expanded their jurisdiction. It is now possible to utilize the suburban civil courts for municipal cases up to $50,000 and for Law Division bodily injury claims in excess of $100,000. The Divorce Division has also gradually phased in a limited suburban docket saving litigants and lawyers the time and expense of visits to downtown Chicago.
To paraphrase the theme of "Field of Dreams": If they build it, you should use it. The suburban court facilities are generally efficient and the small firm or solo practitioner may combine several cases on a single court date there. This has been a tremendous time saver and management tool for me. My Martindale-Hubbell listing for Skokie, Illinois, has helped draw new business from out-of-state individuals, law firms, and corporations litigating in the suburban courts.
Other ways to ease docket management include setting motions and court appearances on a single date in a single courthouse and carefully controlling the calendar. If I am going to downtown Chicago in one case, I will attempt to prepare motions and other filings to make the trip more worthwhile and efficient. Getting the most done at one time and in one place requires forethought and planning which, after a while, should become almost second nature.
Establishing and maintaining good relations with other counsel will help manage the docket. Very often, opposing counsel will agree to a continuance or provide assistance so that I do not have to travel downtown for a single matter. Cooperation, collegiality, and direct honesty are essential in those relationships and help persuade opponents to extend a courtesy or a break to you.
Implicit in managing one's docket and time is the empowerment of your staff. The best managed staff doesn't need to be managed to any great extent. Thus, your secretary or assistant must be much more than a typist and much more than a word processor. I have been fortunate that my secretarial assistant, Michelle Rappaport, has provided 19 years of loyal and dedicated service to my clients and me. She knows how to set up depositions so that they do not interfere with court dates. She understands docket control needs. For example, a 2 p.m. deposition in downtown Chicago on a day that I must be in Waukegan or elsewhere is not a favored use of time. Therefore, if a deposition is to be taken downtown, my secretary knows to set it on a date and at a time when I may already be downtown on other matters. Her efficient use of time and managing the docket saves considerable wear, tear and aggravation.
No amount of planning and docketing maneuvers, such as those that I have described, will always work or be available to you. There are too many days where I will be compelled to appear for a brief status call in the morning in a downtown court and then return for a 2 p.m. deposition. The interim time can be used to meet clients and prospective clients.
There is no magic or guaranty in any of these time management techniques. I am sharing them with you only to suggest how to get more out of a limited amount of your business day.
The use of word processing and computing has helped to bring some balance onto the playing field between small firm and solo practitioners and large firms. Previously the province of larger firms, the use of word processing and electronic docket management was a tremendous advantage. That large firm advantage has narrowed considerably with the advent of word processing, docket control, document creation, and litigation management tools, all of which when placed in the hands of a capable secretarial assistant, enable a small or solo firm to look, act, and project itself with the force of a much larger operation.
Managing clients is perhaps the most daunting task but the most vital need of any solo or small firm. Clients are obviously the life blood of any business; no less so for attorneys. While we are a learned profession, we are in fact and in every way a business. Good client relations therefore becomes indispensable to the survival of any small or solo practice. To function effectively in this area and to make the most of one's time, I am connected to my clients by a car telephone, a cell phone carried in my briefcase, and voice mail on my office telephone. The presence of a live and courteous, interested voice on the office telephone is of great importance. People often complain about automated telephone answering systems that never connect them to a live operator. My secretarial assistant answers the telephone and is instructed to offer as much appropriate assistance to my clients as possible. It is my goal to return phone calls within the day, although that is not always achieved.
Every client believes, and perhaps they are entitled to that belief, that he or she is your only client. Sometimes this will get on your nerves as it does mine. Clients will sometimes ask where I am, why I'm not in the office, and when I will return. They want and perhaps expect a guaranty that they will be given due attention and that their call will be promptly returned. I don't want to lose any client for failure to return a call. As anyone knows in reading the annual ARDC report, the actual or perceived neglect of a client's business by an attorney is the overwhelming source of disciplinary complaints. The importance of maintaining communications with your clients cannot be overstated. Thus, I return client calls in my car and from the courthouse between individual court calls to the extent possible. Perfection may be the goal but it is almost never accomplished. The goal, however, is worth pursuing.
As busy as you may be, you must become a good listener. I have always found it particularly irritating to begin a conversation only to be interrupted even by well-meaning individuals who believe they can anticipate your next thought. Being a good listener means giving a client sufficient time to tell his or her story while utilizing your own lawyering skills to elicit the information you need, separating it from the extraneous. This skill carries over into litigation practice, particularly in depositions and at trial. Listening to an answer or statement can lead you to uncover significant facts and to important areas of questioning, perhaps not previously considered. Listening carefully also leads to the determination as to whether a client should be referred to another attorney.
Finally, there must be some balance in your life. You should not be in the office 18 hours per day. You must not neglect other things of importance such as your family, religious or community life. As it happens, these aspects often converge in an interesting confluence of private time and new business development. If people know you are an attorney, they may become clients even if you are simply coaching your child's baseball or soccer team or serving a community organization or as a member of your church or synagogue board of directors. Leisure and business have a way of finding each other but the pursuit of your family and private obligations should not necessarily be seen first as a means toward a business end.
I don't believe there is a single best way to manage a small firm or solo general practice or to avoid all of the stressors that often find a way of combining to make life sometimes less pleasant and harder. Your inner balance will be found through your own sense of priorities and personal needs and obligations. Maintaining a good and reliable docketing system, communicating with clients, empowering your staff, and understanding yourself are useful tools in the management of your practice.
I hope that these thoughts will lend themselves to your own contributions in this space. The Law Office Management and Economics (Standing Committe on) solicits your further ideas and warmly welcomes your thoughts in this regard.
Both your editor and I believe that ongoing communications on the subjects of professionalism, practice management and better balancing of one's personal and working lives will serve to strengthen our practices and help to make us better lawyers, individuals, spouses and parents.
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The Law Offices of Michael S. Froman, located in Skokie, Illinois, concentrates its practice in personal, business and insurance litigation, alternative dispute resolution, and estate planning.
Saving time and adding value: Assorted computer tidbits
By Christopher J. Cummings
Open any law practice publication these days and you will find exhortations to lawyers to become computer literate. Assume that you've taken everyone's advice and you now have a keyboard and mouse on your desk. You're connected to the Internet. What do you do now?
The purpose of this article is to suggest some ways you can immediately use your computer to save time and deliver value to your clients. These examples are from my practice. Although we use Macintosh computers in our office, these ideas are not limited to a certain brand of computer. Any reasonably up-to-date computer with Internet access will do.
1. What is the current market rate?
The problem: Most residential real estate contracts contain a finance contingency allowing the prospective purchasers to cancel the deal if they cannot obtain financing with the specified rate and terms. Many real estate agents fill the interest rate with the letters "CMR" or current market rate. Whatever the interest rates are, the buyer will be stuck. In reviewing the contract, if you strike CMR, what interest rate do you suggest?
The solution: Instead of guessing, or trying to find last Sunday's real estate section, I check the Internet for mortgage rates. Many lenders advertise Web sites such as http://www.interest.com where you can get up to the minute rate information. I have even printed out this information and faxed it to my client in the real estate agent's office while they were writing the contract. Do the same and you will be a star in your client's eyes.
2. Real estate transfer taxes
The problem: How do you keep track of the transfer tax requirements imposed on real estate transactions?
The solution: Many title companies compile this information for you. I use the Chicago Title Insurance Web site: http://cmetro.ctic.com as a reference. Just like the printed list the company publishes, the Web information tells which municipalities impose transfer taxes, what are the rates, who pays, and what other requirements must be met. I have found it much easier to log onto the Web site rather than digging out my paper list and trying to decide whether the information I have is stale.
3. Have your computer read to you
The problem: The legal description of the condominium your client is selling takes up half a page. You need to proofread it, but no one else is available to read it to you.
The solution: Although much has been written about computers' ability to understand spoken commands, many can also read a document back to you. Instead of using two people to read lengthy legal descriptions to each other, we let our computers do the work. After my secretary types the legal description, she highlights the text and has the computer read it back to her.
4. Find an inmate
The problem: Before entering private practice three years ago, I worked as legal counsel for the Illinois Department of Corrections (IDOC). Weekly, the Legal Services staff in Chicago received dozens of telephone calls asking where an inmate was located. Prosecutors, public defenders and private counsel all had to call IDOC if they wanted this information.
The solution: IDOC has placed inmate location information (and a lot more) on its Web site at: http://www.idoc. state.il.us. From this site, you can search for an inmate by name, Social Security number or inmate number. IDOC tells you where an inmate is located, what he or she is serving time for, and when they are expected to be released. The site also contains telephone numbers and directions to each institution, and some fascinating historical photographs.
5. Download government forms
The problem: Before the Internet, obtaining forms from federal or state government was taxing. Hiring someone? You'll need a W-4. Obtaining an employer identification number for a client? You'll need an SS-4, along with Form 8821. Keeping an adequate supply of up to date forms was daunting.
The solution: Today, many federal, state and local agencies make forms available over the Internet, free. For example, at http://www.irs.treas.gov, you can download just about any tax form you may need. In Illinois, the Secretary of State's Office (http://www.sos.state.il.us) makes many corporation and vehicle forms available. You can print out these forms on your printer. I frequently save copies of the documents on my computer for later use.
6. Be accessible by e-mail
The problem: Clients want to speak with you, but they are out of town or unavailable.
The solution: Being available via e-mail is a great accessibility tool. It provides my clients with another way to communicate with me. I have several clients who are located out-of-state who have said they appreciate the ability to communicate with me without having to play telephone tag. From a liability standpoint, e-mail provides me with a record of my "conversation" with my client, since I can print out my messages.
7. Stay up to date
The problem: As a small firm practitioner, how can I stay abreast of developments in the law, and in other areas?
The solution: An e-mail discussion group (often called a "listserv") is available in practically any area of interest. Once you subscribe, the listserv will send you copies of the messages sent by other list members. You can read, delete or respond to messages. The Illinois State Bar Association operates a discussion group for lawyers. You can subscribe to the list through the ISBA Web site: http://www.isba.org
8. Find an address
The problem: You've just agreed to a meeting, but you forgot to ask directions.
The solution: Many Web search engines have a "roadmap" function. An example is at http://www. lycos.com/roadmaphtml. Enter the address where you want to go and the computer will print you a map, tell you how to get there and even estimate how long it will take you.
One final thought
We all want to let our clients know that we are working harder and smarter for them. Why not use your computer in front of them? If I make changes to a document while my client is in my office, I frequently turn the monitor around so they can see what I am doing. This allows me to obtain immediate reactions to my work while showing my client that I am using the latest equipment to meet their needs.
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Christopher J. Cummings is a partner in the firm of Cummings & Duda, Ltd. in Homewood. He represents government and private clients in municipal law, estate planning and real estate matters, and is licensed in Illinois and Indiana.
Year 2000: Should lawyers be concerned?
By Roger L. Rutherford
The question that I am asked most often by other lawyers who know of my interest in the Year 2000 problem ("Y2K") is: "Do lawyers truly have to be concerned about Y2K problems?" My answer is an emphatic "Yes!," and the areas of risk fall under two broad umbrella topics: business interruption and malpractice.
Business interruption threat
The first thing with which lawyers exploring Y2K issues for their own firm should concern themselves is whether their day-to-day operations will be interrupted by the Year 2000 problem. In some cases the business interruption will be minor, and only a few hours or days of computer-stored work might be lost. In other cases, the lawyer's ability to serve his or her clients may be disrupted for several days or even weeks.
The most likely business interruption posed by Y2K is that on Monday, January 3, 2000, you arrive at your office to discover that your computer system has malfunctioned. So you either call your computer consultant or the manufacturer to find out how to fix it. The worst foreseeable problem in this scenario is the fact that hundreds or thousands of others might be experiencing the same problems, and availability of those resources will be extremely scarce.