Practice News

Some weeks back, Illinois Lawyer Now previewed the then-upcoming Illinois Supreme Court Rules Committee hearing on a proposal to allow jurors to question witnesses in civil trials (the hearing was held May 20 in Chicago). In the June Illinois Bar Journal, ISBA members Steve Kaufmann and Michael Murphy of Springfield argue persuasively that letting jurors ask questions under the strict control of the judge, as the feds and several states do, keeps the jury engaged and gives lawyers a chance to refine their cases in response to juror queries.

By John W. Olmstead, MBA, Ph.D, CMC Q. Our firm is a 25 attorney business litigation boutique firm in Southern California. I am a partner in the firm and chair of the firm's long range planning committee. Last year we spent a lot of time putting together a strategic plan for the firm. While we have a nice plan including specific action items - we are having problems with implementation. We are stuck and not getting anything done. What are your thoughts? A. This is a common problem. Even in Corporate America the implementation rate is low.

• 90% of corporate strategies fail to achieve their expected results.
• 80% of projects are late or over budget.

Many law firms experience similar results. They spend time and energy on mission, vision, goals, objectives and strategies but run out of gas when it comes to specific action planning outlining tasks, milestones and deadlines, individual specific accountabilities, and resource requirements. You just can't cut this step short. All strategic plans should include action plans that list under each strategy specific tasks with milestones, deadlines/due dates, name of person(s) responsible, and required resources. Consequences, compensation, etc.

Lawyers practicing in the Circuit Court of Cook County will soon be able to file papers in all civil cases except for probate matters and condemnation cases from the comfort of their own computer terminals. Find out more in the June Illinois Bar Journal.

Asked and Answered By John W. Olmstead, MBA, Ph.D, CMC Q. At a recent managing partner forum several of the attendees at the seminar discussed recent experiences with embezzlement by employees. What can we do to protect our firms? A. During the past 25 years that I have been working with law firms I have been amazed at the number of embezzlements caused by unscrupulous attorneys, bookkeepers, office managers and other staff members. And yes – even partners. One out of five law firms in my client sample has actually lost funds due to some form of embezzlement and caught the offenders.  While some of the firms have prosecuted and taken other actions against the offenders the process was very painful, time consuming, and typically the funds are never recovered in entirety. Of course, this is if you catch the offenders. Many small firms’ internal control procedures are so lax that funds could be lost through embezzlement and the firm would not even know it. Only through effective internal accounting and financial controls can law firms protect their offices from theft. The goal is not to catch offenders – but to have a system in place that discourages and prevents the theft from occurring in the first place. The process involves implementing internal accounting and financial controls. In essence – segregation of duties. Here is an overview of such a system: Internal Control is the plan of organization and all of the coordinate methods and measures adopted within a business organization to safeguard its assets, check the accuracy and reliability of its accounting data, promote operational efficiency, and encourage adherence to prescribed managerial policies. The four basic elements considered essential in a satisfactory system of internal control are: 1. A plan of organization that provides appropriate segregation of functional responsibility and duties. 2. A system of authorization and record procedures adequate to provide reasonable accounting control over assets, liabilities, revenues, and expenses. 3. Sound practices to be followed in performance of duties and functions of each of the organizational areas. 4. A degree of quality of personnel (competency) commensurate with responsibilities. SUGGESTIONS: RECEIPTS 1. Have someone other than the bookkeeper open the mail. (i.e. receptionist) 2. Have the person who opens the mail prepare a list of all checks/cash received in duplicate. 3. Have person responsible for mail route one copy of the check/cash list to the office manager or managing partner and the other copy along with checks/cash to person responsible for making the bank deposit. 4. Assign someone responsibility for preparing the deposit and taking it to the bank. This person should verify the check/cash list against checks and cash, prepare deposit slip and make the bank deposit. 5. Upon return from the bank the deposit clerk should provide the bookkeeper with the deposit slip, receipt from the bank, and the check/cash list. 6. Bookkeeper enters the deposit into the computer system. 7. Office manager runs and mails monthly statements - not invoice fee bills - to clients. DISBURSEMENTS 1. Don't give bookkeeper check signing authority.