Attorney and Law Firm Guide to the Business of Law: Planning and Operating for Survival and Growth, Third Edition

by Edward Poll

Overview

Your guide to planning and operating for survival and growth.

Celebrating its 20th anniversary this updated third edition of an ABA best-seller outlines the fundamentals of running a successful law practice. Whether you are starting a law practice from the ground up or you are looking to enhance the practice you have, this book contains the information you need to achieve success.

Ed Poll, respected columnist and management consultant with over four decades of experience in business and in law, has simplified the mystical process of operating a law practice so that anyone can be more effective with his/her clients and become more profitable.

This book explores the following topics in depth:

• Creating a business plan
• Marketing-social media, branding, your website, etc.
• Client relations
• Financial management-pricing legal services, the billing process, collections, risk management, etc.
• Employee Issues—hiring, performance appraisals, etc.
• Technology—E-Books, mobile apps, financial and ethical implications, etc.
• Operations-moving your firm, home based practices, overcoming stress, etc.
• And more!

Mr. Poll adheres that marketing and finance are two of the most critical elements of success in today’s tough economic climate, and readers will benefit greatly from his exploration of and recommendations on these topics. New and updated in this edition are the sections on internet marketing, social media, legal technology, and overcoming stress in your legal career.

Included, when you purchase this title, is a CD-ROM of useful forms and templates you can customize for use in your practice. Lauded by successful practitioners and used as required reading in Law Office Management courses, this book will set you on the path to success.

Product Details

ISBN-13:	9781627223515
Publisher:	American Bar Association
Publication date:	06/07/2015
Edition description:	3rd Edition
Pages:	448
Product dimensions:	7.00(w) x 9.90(h) x 1.00(d)

About the Author

Edward Poll, Edward Poll & Associates, Inc., Venice, California Edward Poll has a law degree from UCLA and an M.B.A. from USC. He practiced law for 25 years as an in-house counsel, government prosecutor, sole practitioner and partner in a small law firm. He was also chief operating officer for a mid-size law firm in Los Angeles. Since 1990, he has been principal of LawBiz Management, where he collaborates with lawyers to increase their gross revenue and net profits and reduce their stress. He worked to create the ABA Model Rule of Professional Conduct, Rule 1.17 and was the catalyst for its most recent expansion. Mr. Poll has authored an entire catalogue of books and practical guides concerning The Business of Law. His most recent books include "Life After Law: What Will You Do With the Next 6,000 Days?," "The Profitable Law Office Handbook" (16th anniversary ed.) and "Secrets of the Business of Law" (2nd ed.), Other books include "Collecting Your Fee: Getting Paid from Intake to Invoice" (ABA 2003) and "Business Competency for Lawyers" (2006). 0314

Table of Contents

Foreword. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . xxiPreface. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. xxiiiAcknowledgments.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. xxvAbout the Author.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . .xxviiAbout the Contributors. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . xxixPart I: Creating the Business Plan 1Chapter 1Law Is a Business.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 3§ 1.01 Law Is a Business. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 5§ 1.02 The Three Competencies. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 6§ 1.02.1 Marketing Competence. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 6§ 1.02.2 Technical Competence. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 6§ 1.02.3 Financial Competence. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 7§ 1.03 Warning Signs. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 7§ 1.04 Why Plan?. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 8§ 1.05 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 10Chapter 2First Steps in Starting a New Practice: Initial Checklist. .. .. .. .. .. .. .. . 11§ 2.01 Skills for Success. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 12§ 2.01.1 Strengths of the Entrepreneur. .. .. .. .. .. .. .. .. .. .. .. .. . 12§ 2.01.2 Weaknesses of the Entrepreneur.. .. .. .. .. .. .. .. .. .. .. .. 14§ 2.02 Initial Checklist: Starting a New Practice. .. .. .. .. .. .. .. .. .. . 14§ 2.03 Initial Checklist: Making a Lateral Move. .. .. .. .. .. .. .. .. .. . 15§ 2.03.1 Make a Considered Decision.. .. .. .. .. .. .. .. .. .. .. .. .. . 15§ 2.03.2 Review the Existing Partnership Agreement. .. .. .. .. .. .. 16§ 2.03.3 Know Your Financial Obligations.. .. .. .. .. .. .. .. .. .. .. . 16v§ 2.03.4 Establish a Relationship with Your Bank and Banker.. .. .. 16§ 2.03.5 Select an Accountant.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 16§ 2.03.6 Establish a Relationship with an Insurance Broker. .. .. .. . 17§ 2.03.7 Create a Business Plan. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 17§ 2.03.8 Develop a Forms File. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 17§ 2.03.9 Review and Select Technology. .. .. .. .. .. .. .. .. .. .. .. .. 17§ 2.03.10 Develop Your Client and Related Files List. .. .. .. .. .. .. 18§ 2.03.11 Develop a Case File–Numbering Scheme. .. .. .. .. .. .. .. 18§ 2.03.12 Determine Which Clients/Matters Will Goand Which Will Stay. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 18§ 2.03.13 Draft a Client Contact Letter. .. .. .. .. .. .. .. .. .. .. .. .. . 18§ 2.03.14 Develop a Retainer Agreement.. .. .. .. .. .. .. .. .. .. .. .. 19§ 2.03.15 Prepare a Letter to Colleagues in the Firm. .. .. .. .. .. .. . 19§ 2.03.16 Know When Enough Is Enough.. .. .. .. .. .. .. .. .. .. .. . 19§ 2.04 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 19Chapter 3The Planning Process. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 21§ 3.01 What Planning Is and Is Not.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 22§ 3.02 The Basic Steps. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 23§ 3.02.1 Prepare to Plan. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 23§ 3.02.2 Identify Goals. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 24§ 3.02.3 Create the Marketing Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. . 24§ 3.02.4 Create the Financial Plan. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 24§ 3.02.5 Evaluate and Revise the Plan. .. .. .. .. .. .. .. .. .. .. .. .. . 25§ 3.03 Secondary Plans. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 26§ 3.03.1 Disaster-Recovery Plan. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 26§ 3.03.2 Succession Plan. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 26§ 3.04 Agreeing to Plan. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 26§ 3.05 Who Plans?. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 27§ 3.06 The Logistics of Planning. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 27§ 3.07 Gathering the Relevant Information. .. .. .. .. .. .. .. .. .. .. .. . 28§ 3.08 Looking Ahead. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 29§ 3.09 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 29Chapter 4Setting Goals.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 35§ 4.01 SMART Formula. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 36§ 4.02 Identifying Personal Goals. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 36§ 4.03 Identifying Law Firm Goals. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 37vi CONTENTS§ 4.04 Identifying Work-Life Balance Goals.. .. .. .. .. .. .. .. .. .. .. .. 39§ 4.05 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 39Part II: Marketing Paradigms 43Chapter 5Creating the Marketing Plan. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 45§ 5.01 Marketing Defined. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 46§ 5.02 Components of a Marketing Plan. .. .. .. .. .. .. .. .. .. .. .. .. . 46§ 5.02.1 What Is Your Current Situation?.. .. .. .. .. .. .. .. .. .. .. .. 47§ 5.02.2 What Are You Trying to Accomplish?. .. .. .. .. .. .. .. .. .. 48§ 5.02.3 Who Are Your Target Customers, or Clients?.. .. .. .. .. .. . 48§ 5.02.4 What Is Your Strategy for Reaching YourTarget Audience?. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 50§ 5.02.5 How Much Time, Staff, and Money Will Be Required?. .. . 53§ 5.02.6 How Will You Know If You Are Successful?. .. .. .. .. .. .. 54§ 5.03 What Clients Want. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 54§ 5.04 The Marketing Mix.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 56§ 5.05 Embrace Marketing. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 57§ 5.06 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 57Chapter 6A Solo and Small-Firm Practitioner’s Marketing Renaissance. .. .. .. .. . 63§ 6.01 Cultivate Clients. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 64§ 6.01.1 Step One: Make Yourself Visible. .. .. .. .. .. .. .. .. .. .. .. 65§ 6.01.2 Step Two: Find Opportunity and Push Itinto the Pipeline. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 66§ 6.01.3 Step Three: Bring That Opportunity to Closure.. .. .. .. .. . 66§ 6.01.4 Step Four: Follow Up, Follow Up, Follow Up. .. .. .. .. .. . 67§ 6.01.5 Step Five: Discipline Yourself. .. .. .. .. .. .. .. .. .. .. .. .. . 68§ 6.02 Serve the 99 Percent. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 68§ 6.02.1 Guarantee Satisfaction. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 68§ 6.02.2 Establish Alliances. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 69§ 6.02.3 Embrace Technology.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 69§ 6.03 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 70Chapter 7Using the Internet to Market Your Legal Services. .. .. .. .. .. .. .. .. .. .. 71§ 7.01 Benefits of Internet Marketing. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 72CONTENTS vii§ 7.02 The Law Firm Website. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 73§ 7.02.1 Brochureware Websites. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 73§ 7.02.2 Information-Hub Websites.. .. .. .. .. .. .. .. .. .. .. .. .. .. . 76§ 7.02.3 Websites for Conducting Private Communication. .. .. .. . 77§ 7.03 Designing and Maintaining the Firm’s Website. .. .. .. .. .. .. . 78§ 7.03.1 Step One: Determine the Marketing Purposeof the Website. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 78§ 7.03.2 Step Two: Design the Layout and Content. .. .. .. .. .. .. .. 78§ 7.03.3 Step Three: Make the Website Available to the Masses. .. . 79§ 7.03.4 Step Four: Maintain the Website.. .. .. .. .. .. .. .. .. .. .. .. 80§ 7.04 Electronic Mailing Lists. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 81§ 7.05 LISTSERVs and Other Discussion Groups. .. .. .. .. .. .. .. .. .. 82§ 7.06 Internet Communities. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 84§ 7.07 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 84Chapter 8Using Social Media to Market Yourself. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 85§ 8.01 Marketing Benefits. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 86§ 8.02 Maximizing Social Media Use. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 87§ 8.03 Measuring Returns. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 87§ 8.04 Need for Personal Contact. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 88§ 8.05 Bar Association Regulation. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 89§ 8.06 Formulating Policies. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 90§ 8.07 Special Concerns About Blogging. .. .. .. .. .. .. .. .. .. .. .. .. . 90§ 8.07.1 Marketing Tactics. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 90§ 8.07.2 Technology Concerns. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 91§ 8.08 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 91Chapter 9Using Business Cards, Stationery, and Print Mediato Support Rainmaking Goals. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 93§ 9.01 Establishing Your Firm Image. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 94§ 9.01.1 Selection of a Vendor. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 94§ 9.01.2 Graphics Issues. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 94§ 9.02 Business Cards. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 94§ 9.03 Firm Stationery. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 95§ 9.03.1 Maximize the Value of Your Letterhead. .. .. .. .. .. .. .. .. 95§ 9.03.2 Plain Paper. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 95§ 9.04 Other Basic Paper Items.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 96§ 9.05 Large Mailing Envelopes and Mailing Labels. .. .. .. .. .. .. .. . 96§ 9.06 Firm Announcements.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 97§ 9.06.1 Envelopes. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 98§ 9.06.2 Announcement Content. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 98viii CONTENTS§ 9.07 Firm Brochures and Seminar and Direct-Mail Printing. .. .. .. . 99§ 9.07.1 Law Firm Brochures: Two-Pocket Folders. .. .. .. .. .. .. . 100§ 9.07.2 Law Firm Brochures: Alternativesto Two-Pocket Folders.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 100§ 9.08 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 101Chapter 10Branding. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 103§ 10.01 Unique Selling Points. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 104§ 10.02 Internal Acceptance. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 105§ 10.03 Management and Marketing Issues.. .. .. .. .. .. .. .. .. .. .. . 105§ 10.03.1 Strategic Marketing Plan. .. .. .. .. .. .. .. .. .. .. .. .. .. . 106§ 10.03.2 Marketing Costs. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 107§ 10.03.3 Lawyer Time and Activities.. .. .. .. .. .. .. .. .. .. .. .. .. 108§ 10.03.4 Negative Fallout. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 108§ 10.03.5 Firm Leadership. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 110§ 10.04 Why Brand?. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 110§ 10.05 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 111Part III: Marketing Beyond Advertising 113Chapter 11Rules for Improving Client Relations. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 115§ 11.01 Believe That the Client Is Number One. .. .. .. .. .. .. .. .. .. 116§ 11.02 Return Phone Calls. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 117§ 11.03 Make Sure That Staff Members Knowthe Names of Clients.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 117§ 11.04 Communicate Regularly with Clients. .. .. .. .. .. .. .. .. .. .. 117§ 11.05 Build a Team Concept. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 118§ 11.06 Make the Client Feel Like Part of the Team. .. .. .. .. .. .. .. . 118§ 11.07 Visit Clients. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 119§ 11.08 Advise Clients About Changesin the Law That Impact Them. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 120§ 11.09 Be Realistic in Forecasting Work. .. .. .. .. .. .. .. .. .. .. .. .. 120§ 11.10 Ask Clients for Feedback. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 121§ 11.11 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 121Chapter 12Listening to Clients. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 123§ 12.01 The Client Satisfaction Survey. .. .. .. .. .. .. .. .. .. .. .. .. .. 124§ 12.01.1 Survey Types. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 124§ 12.01.2 Written Survey.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 125CONTENTS ix§ 12.01.3 Telephone Survey. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 125§ 12.01.4 In-Person Survey.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 126§ 12.02 Presentation Skills.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 127§ 12.03 Listening Techniques. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 127§ 12.03.1 Active Listening.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 127§ 12.03.2 Gender Listening.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 128§ 12.03.3 Paing Attention to Nonverbal Communication.. .. .. .. 128§ 12.04 It Pays to Ask Questions. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 129§ 12.05 Following Up. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 130§ 12.06 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 131Part IV: Financial Management 135Chapter 13Creating the Financial Plan. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 137§ 13.01 Key Financial Terms. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 138§ 13.02 Introduction to Cash Flow. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 140§ 13.03 Creating the Collected Revenue Cash Flow Form. .. .. .. .. . 141§ 13.03.1 Row 1: Cash Retainers Collected for General Account.. . 142§ 13.03.2 Row 2: Transfer of Funds fromTrust Account per Client Instructions.. .. .. .. .. .. .. .. .. .. .. . 142§ 13.03.3 Row 3: Contingency Fees Collected. .. .. .. .. .. .. .. .. .. 143§ 13.03.4 Row 4: Collected Accounts Receivable. .. .. .. .. .. .. .. . 143§ 13.03.5 Row 5: Funds Collected from Sale of Assets.. .. .. .. .. .. 144§ 13.03.6 Row 6: Miscellaneous Collected Funds. .. .. .. .. .. .. .. . 144§ 13.03.7 Row 7: Total Operating Funds Collected. .. .. .. .. .. .. . 144§ 13.03.8 Final Rows. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 144§ 13.04 Creating the Paid Expenses Cash Flow Form. .. .. .. .. .. .. . 144§ 13.04.1 Row 1: Employee Salaries. .. .. .. .. .. .. .. .. .. .. .. .. .. 146§ 13.04.2 Row 2: Employee Taxes. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 146§ 13.04.3 Row 3: Partner Draws/Shareholder Salaries. .. .. .. .. .. 147§ 13.04.4 Row 4: Rent. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 147§ 13.04.5 Rows 5, 6, and 7: Insurance. .. .. .. .. .. .. .. .. .. .. .. .. . 147§ 13.04.6 Row 8: Marketing and Public Relations. .. .. .. .. .. .. .. 148§ 13.04.7 Rows 9 and 10: Office Expenses. .. .. .. .. .. .. .. .. .. .. . 148§ 13.04.8 Row 11: Professional Dues.. .. .. .. .. .. .. .. .. .. .. .. .. . 148§ 13.04.9 Row 12: Continuing Legal Education. .. .. .. .. .. .. .. .. 149§ 13.04.10 Row 13: Library. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 149§ 13.04.11 Row 14: Professional Services. .. .. .. .. .. .. .. .. .. .. .. 149§ 13.04.12 Row 15: Travel and Entertainment.. .. .. .. .. .. .. .. .. . 149§ 13.04.13 Row 16: Loan Repayments. .. .. .. .. .. .. .. .. .. .. .. .. 149§ 13.04.14 Row 17: Total Operating Expenditures. .. .. .. .. .. .. .. 149x CONTENTS§ 13.05 Creating the Summary Cash Flow Form. .. .. .. .. .. .. .. .. . 149§ 13.05.1 Row 1: Beginning Cash Balance. .. .. .. .. .. .. .. .. .. .. . 150§ 13.05.2 Rows 2 and 3: Increases and Decreases in Cash. .. .. .. . 150§ 13.05.3 Row 4: Cash Balance.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 150§ 13.05.4 Row 5: Short-Term Loans.. .. .. .. .. .. .. .. .. .. .. .. .. .. 150§ 13.05.5 Row 6: Cash Available. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 151§ 13.05.6 Row 7: Capital Expenditures.. .. .. .. .. .. .. .. .. .. .. .. . 151§ 13.05.7 Row 8: Balance of Cash. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 151§ 13.05.8 Row 9: Long-Term Loans.. .. .. .. .. .. .. .. .. .. .. .. .. .. 151§ 13.05.9 Row 10: Free Cash Flow.. .. .. .. .. .. .. .. .. .. .. .. .. .. . 151§ 13.05.10 Row 11: Savings.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 151§ 13.05.11 Row 12: Net Free Cash Flow. .. .. .. .. .. .. .. .. .. .. .. . 152§ 13.05.12 Row 13: Extraordinary Use of Cash Flow. .. .. .. .. .. .. 152§ 13.05.13 Row 14: Monthly Cash Totals. .. .. .. .. .. .. .. .. .. .. .. 152§ 13.05.14 Addressing the Issue of Negative Numbers.. .. .. .. .. . 152§ 13.06 Final Thoughts on Cash Flow Plans. .. .. .. .. .. .. .. .. .. .. . 153§ 13.07 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 153Chapter 14Methods of Determining Revenue.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 157§ 14.01 Revenue Pattern Analysis. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 158§ 14.02 Turnover Ratio.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 158§ 14.03 Aging Analysis. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 159§ 14.04 Payment Pattern Analysis. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 160§ 14.05 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 161Chapter 15Pricing Legal Services. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 165§ 15.01 Basic Ways to Set Prices.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 166§ 15.01.1 Cost-Plus Pricing.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 166§ 15.01.2 Market Pricing. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 168§ 15.02 Specific Pricing Methods: Hourly Rate Pricing. .. .. .. .. .. . 169§ 15.03 Specific Pricing Methods: Alternativesto Hourly Rate Pricing.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 170§ 15.03.1 Blended Hourly Rate. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 170§ 15.03.2 Fixed or Flat Fee. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 171§ 15.03.3 Value Pricing. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 171§ 15.03.4 Contingent/Percentage Fee.. .. .. .. .. .. .. .. .. .. .. .. .. 172§ 15.03.5 Premium Pricing. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 173§ 15.03.6 Retainer.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 173§ 15.04 The Future of the Billable Hour. .. .. .. .. .. .. .. .. .. .. .. .. . 173§ 15.05 Cost Disbursements as an Element of Pricing. .. .. .. .. .. .. . 174CONTENTS xi§ 15.06 The Use of Nonlawyers. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 175§ 15.07 Price Sensitivity and Raising Rates. .. .. .. .. .. .. .. .. .. .. .. 177§ 15.08 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 177Chapter 16The Billing Process. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 179§ 16.01 Importance of Billing Process. .. .. .. .. .. .. .. .. .. .. .. .. .. . 179§ 16.02 Clients and the Billing Process. .. .. .. .. .. .. .. .. .. .. .. .. .. 180§ 16.03 Who Should Do the Billing?. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 180§ 16.04 What Should Bills Look Like and Contain?. .. .. .. .. .. .. .. . 181§ 16.04.1 Appearance. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 181§ 16.04.2 Content. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 181§ 16.05 When Should Bills Be Prepared?. .. .. .. .. .. .. .. .. .. .. .. .. 182§ 16.06 When Should Bills Be Sent?. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 182§ 16.07 Responses from Clients. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 183§ 16.08 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 183Chapter 17Credit and Collections. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 189§ 17.01 Giving Credit Where Credit Is Due.. .. .. .. .. .. .. .. .. .. .. . 190§ 17.01.1 Approve Clients.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 190§ 17.01.2 Determine Credit Limits. .. .. .. .. .. .. .. .. .. .. .. .. .. . 190§ 17.01.3 Set Interest Rates. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 191§ 17.02 Collecting Your Money. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 191§ 17.03 Steps to Decreasing the Need to Worry About Collections. . 192§ 17.03.1 Fees and Budgets.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 192§ 17.03.2 Other Communication Considerations. .. .. .. .. .. .. .. . 192§ 17.03.3 Retainers. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 193§ 17.03.4 The Billing Cycle. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 193§ 17.03.5 Time Your Statements.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 194§ 17.03.6 Make It Easy to Pay. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 194§ 17.03.7 Discounts for Timely Payment. .. .. .. .. .. .. .. .. .. .. .. 194§ 17.04 Steps to Increasing Your CollectionsWhen Clients Don’t Pay. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 194§ 17.04.1 Communication.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 195§ 17.04.2 “Dial-and-Smile”.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 195§ 17.04.3 Plan for Payment.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 197§ 17.04.4 Last Resorts. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 197§ 17.05 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 197Chapter 18Banks and Loans. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 199§ 18.01 Financial Needs.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 200xii CONTENTS§ 18.02 Types of Loans.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 202§ 18.03 Selecting a Bank. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 202§ 18.04 How a Bank Selects Borrowers. .. .. .. .. .. .. .. .. .. .. .. .. . 203§ 18.04.1 Areas of Concern.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 204§ 18.04.2 The Four C’s.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 204§ 18.04.3 Documents That the Bank Wants to See. .. .. .. .. .. .. .. 206§ 18.04.4 Additional Information to Discuss with the Bank.. .. .. . 206§ 18.05 Developing a Good Relationship with the Banker. .. .. .. .. . 207§ 18.06 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 207Chapter 19Equipment Lease Financing. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 209§ 19.01 Advantages of Leasing. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 210§ 19.01.1 Leasing Is Flexible and Practical.. .. .. .. .. .. .. .. .. .. .. 210§ 19.01.2 Leasing Is Cost-Effective. .. .. .. .. .. .. .. .. .. .. .. .. .. . 210§ 19.01.3 Leasing Has Tax Advantages. .. .. .. .. .. .. .. .. .. .. .. . 211§ 19.01.4 Leasing Helps Conserve Operating Capital. .. .. .. .. .. . 211§ 19.02 Other Leasing Considerations. .. .. .. .. .. .. .. .. .. .. .. .. .. 211§ 19.02.1 Types of Leases. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 211§ 19.02.2 Approval Decisions.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 212§ 19.02.3 Property Taxes. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 213§ 19.02.4 Use Taxes. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 213§ 19.02.5 Insurance. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 213§ 19.02.6 Personal Guarantee.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 214§ 19.02.7 Rentals.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 214§ 19.02.8 Lease Rates. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 214§ 19.02.9 Warranties.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 214§ 19.02.10 Soft Costs. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 214§ 19.02.11 Maintenance Contracts.. .. .. .. .. .. .. .. .. .. .. .. .. .. . 215§ 19.02.12 Leasing and Rapid Changes in Technology. .. .. .. .. .. 215§ 19.02.13 Early Buyouts and the “Rule of 78s”. .. .. .. .. .. .. .. .. 216§ 19.03 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 217Chapter 20Risk Management for Lawyers. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 219§ 20.01 Insurance Needs. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 219§ 20.01.1 Property and General Liability Insurance. .. .. .. .. .. .. 220§ 20.01.2 Cyberinsurance. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 221§ 20.01.3 Life Insurance. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 221§ 20.01.4 Disability Insurance. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 221§ 20.01.5 Health Insurance. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 221§ 20.01.6 Errors and Omissions Insurance. .. .. .. .. .. .. .. .. .. .. 222§ 20.01.7 Employment Practices Liability Insurance. .. .. .. .. .. . 222CONTENTS xiii§ 20.01.8 Personal Auto Insurance. .. .. .. .. .. .. .. .. .. .. .. .. .. . 223§ 20.01.9 Employee Benefits.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 223§ 20.02 Disaster-Recovery Plan. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 223§ 20.02.1 Create a Task Force. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 223§ 20.02.2 Create a Management Structure. .. .. .. .. .. .. .. .. .. .. . 224§ 20.02.3 Create a Communication System. .. .. .. .. .. .. .. .. .. .. 224§ 20.02.4 Test the Efficacy of the Plan.. .. .. .. .. .. .. .. .. .. .. .. .. 225§ 20.02.5 The Plan in Action.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 225§ 20.03 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 225Chapter 21Client Trust Accounting the Easy Way—with QuickBooks. .. .. .. .. .. . 227§ 21.01 IOLTA Basics. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 228§ 21.02 “Rule of Five”. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 229§ 21.03 Accounting Theory.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 230§ 21.04 QuickBooks for Windows. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 230§ 21.05 Summary of Tasks. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 232§ 21.05.1 Receiving Funds. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 232§ 21.05.2 Disbursing Funds. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 232§ 21.05.3 Reports. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 233§ 21.06 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 236Chapter 22Improving Your Bottom Line.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 237§ 22.01 Banking. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 237§ 22.02 Office Services. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 240§ 22.03 Rent. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 240§ 22.04 Diversity.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 241§ 22.05 Revenues Versus Expenses. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 241§ 22.06 Personal/Professional Expense Hierarchy. .. .. .. .. .. .. .. .. 242§ 22.07 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 243Chapter 23Playing the Slow Economy Game. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 245§ 23.01 Temporary Slowdown. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 246§ 23.02 Downsizing. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 246§ 23.03 Demerger. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 247§ 23.04 Liquidation. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 247§ 23.05 The Great Recession. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 247§ 23.06 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 248xiv CONTENTSPart V: Employee Issues 249Chapter 24Hire Is Not a “Four-Letter Word”. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 251§ 24.01 Determining Your Staffing Needs. .. .. .. .. .. .. .. .. .. .. .. . 252§ 24.02 Considering Preemployment Consultation. .. .. .. .. .. .. .. . 252§ 24.03 Writing the Job Description.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 253§ 24.03.1 Legal Assistant.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 253§ 24.03.2 Legal Secretary.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 254§ 24.03.3 Paralegal (Certificated).. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 254§ 24.03.4 Independent Contractor.. .. .. .. .. .. .. .. .. .. .. .. .. .. . 255§ 24.04 Choosing an Advertising Venue.. .. .. .. .. .. .. .. .. .. .. .. .. 256§ 24.05 Setting Up a Screening Funnel. .. .. .. .. .. .. .. .. .. .. .. .. .. 256§ 24.06 Preparing Before the Interview. .. .. .. .. .. .. .. .. .. .. .. .. . 257§ 24.07 Conducting the Face-to-Face Interview. .. .. .. .. .. .. .. .. .. 258§ 24.07.1 Do’s and Don’ts of Interviewing. .. .. .. .. .. .. .. .. .. .. 259§ 24.07.2 Sample Questions. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 260§ 24.08 Hiring Temporary Employees. .. .. .. .. .. .. .. .. .. .. .. .. .. 262§ 24.09 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 262Chapter 25The Law Office as Equal Opportunity Employer:Rights, Risks, and Responsibilities. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 265§ 25.01 The Foundation of Equal Employment Opportunities.. .. .. . 266§ 25.01.1 Areas of Concern.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 266§ 25.01.2 Defenses to Discrimination Charges. .. .. .. .. .. .. .. .. . 268§ 25.02 The Legal Framework. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 268§ 25.02.1 Title VII of the Civil Rights Act of 1964.. .. .. .. .. .. .. .. 269§ 25.02.2 Age Discrimination in Employment Act of 1967. .. .. .. . 271§ 25.02.3 Older Workers Benefit Protection Act of 1990. .. .. .. .. . 272§ 25.02.4 1990 Americans with Disabilities Act. .. .. .. .. .. .. .. .. 272§ 25.02.5 Family and Medical Leave Act of 1992. .. .. .. .. .. .. .. . 275§ 25.02.6 Comparison/Contrast of FMLA and ADA.. .. .. .. .. .. . 276§ 25.03 Preemployment Selection. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 276§ 25.03.1 Recruitment and Advertising. .. .. .. .. .. .. .. .. .. .. .. . 276§ 25.03.2 Criminal Background Screeningand/or Credit Checks. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 279§ 25.03.3 The Personal Interview. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 280§ 25.04 Discrimination in the Workplace. .. .. .. .. .. .. .. .. .. .. .. .. 280§ 25.04.1 Sex Discrimination. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 280§ 25.04.2 Age Discrimination. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 282CONTENTS xv§ 25.04.3 Religious Discrimination. .. .. .. .. .. .. .. .. .. .. .. .. .. . 283§ 25.04.4 Disability Discrimination.. .. .. .. .. .. .. .. .. .. .. .. .. .. 283§ 25.05 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 286Chapter 26Conducting Effective Performance Appraisalsin a Law Office Setting.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 287§ 26.01 Setting Objective Performance Standards.. .. .. .. .. .. .. .. .. 288§ 26.01.1 Purpose. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 288§ 26.01.2 Specifics of Creating a Standards-BasedAppraisal System. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 288§ 26.02 Specific Performance Appraisal Considerations. .. .. .. .. .. . 290§ 26.03 Conducting a Performance Appraisal Conference. .. .. .. .. . 291§ 26.04 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 292Chapter 27Preventing Workplace Harassment and Retaliation in the Law Office. .. . 293§ 27.01 What Is Workplace Harassment?. .. .. .. .. .. .. .. .. .. .. .. .. 294§ 27.01.1 Harassment. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 294§ 27.01.2 Sexual Harassment. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 295§ 27.02 Myths and Facts About Workplace Harassment. .. .. .. .. .. . 297§ 27.03 High-Tech Workplace Harassmentand Abuses of Electronic Messaging.. .. .. .. .. .. .. .. .. .. .. .. .. 298§ 27.03.1 Unwelcome E-Mail Messages. .. .. .. .. .. .. .. .. .. .. .. . 300§ 27.03.2 Myths About Explosive E-Mail.. .. .. .. .. .. .. .. .. .. .. . 300§ 27.03.3 Reasons for Monitoring Employee E-Mail. .. .. .. .. .. .. 301§ 27.03.4 Development of an E-Mail Monitoring Policy. .. .. .. .. . 302§ 27.03.5 Enforcement of the E-Mail Monitoring Policy. .. .. .. .. . 303§ 27.03.6 Limits on Employees’ Privacy.. .. .. .. .. .. .. .. .. .. .. .. 304§ 27.04 Retaliation as a Separate Form of Discrimination. .. .. .. .. .. 305§ 27.05 Responsibilities of Supervisors.. .. .. .. .. .. .. .. .. .. .. .. .. . 306§ 27.06 Developing Enforceable—and Defensible—Policies.. .. .. .. . 307§ 27.06.1 Clear and Effective Reporting Procedures. .. .. .. .. .. .. 307§ 27.06.2 Effective Training to Avoid Other Liabilities. .. .. .. .. .. 308§ 27.06.3 Training Guidelines. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 309§ 27.07 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 311Chapter 28Should You Hire an Executive Director?.. .. .. .. .. .. .. .. .. .. .. .. .. .. . 313§ 28.01 The Executive Director’s Job.. .. .. .. .. .. .. .. .. .. .. .. .. .. . 314§ 28.02 A Profit Center for the Firm. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 314§ 28.03 Measuring Benefits. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 315§ 28.04 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 315xvi CONTENTSPart VI: Technology 317Chapter 29Technology and the Legal Information Age.. .. .. .. .. .. .. .. .. .. .. .. .. 319§ 29.01 The Open-Access Movement. .. .. .. .. .. .. .. .. .. .. .. .. .. . 320§ 29.01.1 Open-Access Legal Portals. .. .. .. .. .. .. .. .. .. .. .. .. . 320§ 29.01.2 Government Portals. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 323§ 29.01.3 Collaborative Websites. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 323§ 29.02 E-Books.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 324§ 29.02.1 Pros and Cons. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 325§ 29.02.2 E-Book Purchases. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 326§ 29.02.3 E-Book Cost and Licensing Considerations. .. .. .. .. .. . 327§ 29.02.4 A Possible Future Model for E-Books. .. .. .. .. .. .. .. .. 327§ 29.03 Going Mobile: Apps. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 328§ 29.03.1 Ready Reference Apps. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 329§ 29.03.2 Legal Research. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 329§ 29.03.3 Legal Publisher Apps. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 330§ 29.03.4 Productivity. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 331§ 29.03.5 Trial Practice.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 332§ 29.03.6 Keeping Current. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 333§ 29.04 Improvements in Legal Databases.. .. .. .. .. .. .. .. .. .. .. .. 333§ 29.05 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 335Chapter 30Financial and Ethical Implications of Technology. .. .. .. .. .. .. .. .. .. . 337§ 30.01 Financial Implications of Technology. .. .. .. .. .. .. .. .. .. .. 338§ 30.01.1 ROI and Cash Flow.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 338§ 30.01.2 ROI and the Replacement Cycle.. .. .. .. .. .. .. .. .. .. .. 338§ 30.01.3 ROI and Financing. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 339§ 30.01.4 ROI and Efficiency. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 340§ 30.02 Ethical Implications of Technology. .. .. .. .. .. .. .. .. .. .. .. 341§ 30.02.1 Meet the Standard of Care.. .. .. .. .. .. .. .. .. .. .. .. .. . 342§ 30.02.2 Safeguard Files.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 342§ 30.02.3 Maintain Confidentiality. .. .. .. .. .. .. .. .. .. .. .. .. .. . 343§ 30.03 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 344Part VII: Operating Your Law Practice 345Chapter 31A Checklist for Moving Your Law Firm. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 347§ 31.01 The Decision to Move. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 348§ 31.01.1 Establish an Initial Timeline. .. .. .. .. .. .. .. .. .. .. .. .. 348§ 31.01.2 Locate New Space. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 348CONTENTS xvii§ 31.01.3 Negotiate for New Space. .. .. .. .. .. .. .. .. .. .. .. .. .. . 349§ 31.01.4 Set a Moving Date.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 349§ 31.01.5 Develop a Moving Budget.. .. .. .. .. .. .. .. .. .. .. .. .. . 350§ 31.02 New-Space Planning. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 350§ 31.02.1 Plan New-Space Improvements. .. .. .. .. .. .. .. .. .. .. . 350§ 31.02.2 Establish What Goes Where. .. .. .. .. .. .. .. .. .. .. .. .. 350§ 31.02.3 Determine Location of Telephone,Electrical, and Computer Hookups.. .. .. .. .. .. .. .. .. .. .. .. . 351§ 31.03 Premove Planning.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 351§ 31.03.1 Create a Move Manual. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 351§ 31.03.2 Solicit Moving Bidsand Hire a Moving Company. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 351§ 31.03.3 Factor in Lead Time for OrderingFurniture, Equipment, and Supplies.. .. .. .. .. .. .. .. .. .. .. .. 352§ 31.03.4 Order Printed Firm Materials. .. .. .. .. .. .. .. .. .. .. .. . 352§ 31.03.5 Order Packing Supplies. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 352§ 31.03.6 Schedule Telephone and Computer Services. .. .. .. .. .. 353§ 31.03.7 Handle Other Notifications. .. .. .. .. .. .. .. .. .. .. .. .. . 353§ 31.03.8 Set Up Tagging/Labeling Plan. .. .. .. .. .. .. .. .. .. .. .. 354§ 31.03.9 Assign New Parking Cards and Building Passes.. .. .. .. 355§ 31.03.10 Review Vacations and Personal Days. .. .. .. .. .. .. .. . 355§ 31.03.11 Schedule Premove Meetings. .. .. .. .. .. .. .. .. .. .. .. . 355§ 31.03.12 Schedule Premove Inspections of New Space. .. .. .. .. 355§ 31.03.13 Schedule an All-Hands Space Visit. .. .. .. .. .. .. .. .. . 356§ 31.03.14 Obtain Acknowledgments. .. .. .. .. .. .. .. .. .. .. .. .. . 356§ 31.04 The Move. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 356§ 31.04.1 Publish the Moving Schedule. .. .. .. .. .. .. .. .. .. .. .. . 356§ 31.04.2 Appoint Move Coordinators. .. .. .. .. .. .. .. .. .. .. .. .. 356§ 31.04.3 Post Color-Coded Floor Plans.. .. .. .. .. .. .. .. .. .. .. .. 356§ 31.04.4 Determine Optimum Order. .. .. .. .. .. .. .. .. .. .. .. .. 356§ 31.04.5 Schedule Technicians/Maintenance Staff. .. .. .. .. .. .. . 357§ 31.04.6 Address Security Issues. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 357§ 31.05 After the Move. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 357§ 31.05.1 Clean Up Old Space. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 357§ 31.05.2 Inspect Old Space with Landlord.. .. .. .. .. .. .. .. .. .. . 357§ 31.05.3 Obtain Certification and Release of Old Space. .. .. .. .. 357§ 31.06 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 357Chapter 32Your Own Island: Opening a Home-Based Practice.. .. .. .. .. .. .. .. .. . 363§ 32.01 Packing for Your Trip to the Island. .. .. .. .. .. .. .. .. .. .. .. 364§ 32.01.1 Computer. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 364§ 32.01.2 Internet Connectivity. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 365xviii CONTENTS§ 32.01.3 Printer/Scanner/Copier/Fax Machine. .. .. .. .. .. .. .. . 365§ 32.01.4 Smartphone. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 365§ 32.01.5 Software Program. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 366§ 32.01.6 Online Services. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 366§ 32.01.7 Office Furniture. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 366§ 32.02 Crew on the Island. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 366§ 32.03 Ethics of the Island. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 367§ 32.03.1 Service. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 367§ 32.03.2 Quality. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 368§ 32.03.3 Confidentiality.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 368§ 32.04 Happily Stranded on the Island. .. .. .. .. .. .. .. .. .. .. .. .. . 368§ 32.05 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 368Chapter 33Case Study: Starting a Family Law Practice. .. .. .. .. .. .. .. .. .. .. .. .. . 369§ 33.01 The Advice.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 370§ 33.01.1 Do You Really Want Your Own Firm?. .. .. .. .. .. .. .. .. 370§ 33.01.2 Profiling the Desired Practice. .. .. .. .. .. .. .. .. .. .. .. . 371§ 33.01.3 Selecting the Location of the Practice. .. .. .. .. .. .. .. .. 372§ 33.01.4 Staff Considerations. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 374§ 33.01.5 Equipment Considerations. .. .. .. .. .. .. .. .. .. .. .. .. . 374§ 33.01.6 Promoting the New Practice. .. .. .. .. .. .. .. .. .. .. .. .. 374§ 33.01.7 Expansion from Solo Practice to Partnership. .. .. .. .. .. 376§ 33.02 Implementation.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 377§ 33.02.1 Profiling My Firm. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 377§ 33.02.2 Selecting My Office. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 377§ 33.02.3 Staffing and Equipping My Office. .. .. .. .. .. .. .. .. .. . 378§ 33.02.4 Outlining a Business Plan. .. .. .. .. .. .. .. .. .. .. .. .. .. 378§ 33.02.5 Embracing the Opportunity to Grow. .. .. .. .. .. .. .. .. 379§ 33.02.6 Where I Am Today. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 380§ 33.03 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 381Chapter 34Overcoming Stress in Your Legal Career. .. .. .. .. .. .. .. .. .. .. .. .. .. . 383§ 34.01 Prioritize.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 384§ 34.02 Ten Steps to Organization. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 385§ 34.02.1 Step One: Unclutter Your Office. .. .. .. .. .. .. .. .. .. .. . 385§ 34.02.2 Step Two: Set Up a “43” System. .. .. .. .. .. .. .. .. .. .. . 386§ 34.02.3 Step Three: Employ a U-Shaped Office Layout. .. .. .. .. 387§ 34.02.4 Step Four: Spend Time on Daily Planning. .. .. .. .. .. .. 387§ 34.02.5 Step Five: Incorporate PWT.. .. .. .. .. .. .. .. .. .. .. .. .. 388§ 34.02.6 Step Six: Prepare a Weekly To-Do List.. .. .. .. .. .. .. .. . 388CONTENTS xix§ 34.02.7 Step Seven: Manage Interruptions. .. .. .. .. .. .. .. .. .. 388§ 34.02.8 Step Eight: Assign NumericalTime Frames for Requests. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 389§ 34.02.9 Step Nine: Conduct Efficient Group Meetings.. .. .. .. .. 389§ 34.02.10 Step Ten: Conduct One-to-One Briefings. .. .. .. .. .. .. 390§ 34.03 What Not to Do.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 390§ 34.04 Good Stress. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 391§ 34.05 Action Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 391Appendix A: Cash Flow Projection Forms. .. .. .. .. .. .. .. .. .. .. .. .. .. 393Appendix B: Monthly Accounts Receivable Aging Analysis.. .. .. .. .. . 397Appendix C: Profit and Loss Statement. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 401Appendix D: Budget Recap Revenue and Expense Forms. .. .. .. .. .. .. 405Appendix E: General Ledger Information. .. .. .. .. .. .. .. .. .. .. .. .. .. 409Appendix F: Payment Pattern Analysis.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 415Appendix G: Comparison of Essential Provisions of the ADAand the FMLA. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 417Appendix H : Examples of Overlap and Conflict Between the ADAand the FMLA. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 421Appendix I: Employer Actions. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 425Appendix J: Effect on Workers' Compensation. .. .. .. .. .. .. .. .. .. .. .. 431Appendix K: Preemployment Inquiries. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 435Index. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 439