Most lawyers earn a living by setting their hourly rate and then charging for the number of hours (or fractions thereof) that they work. The biggest challenge for lawyers, particularly solo practitioners, is how to leverage their time. No matter how much a lawyer increases his or her hourly rate, the lawyer can never earn more than the amount of time he or she puts in. For example, if a solo practitioner doesn’t show up for work tomorrow, that lawyer won’t make any money. And even if the lawyer does show up for work tomorrow, he or she will only earn the amount of money based on multiplying the number of hours worked by their fixed billing rate.
So, how can lawyers leverage their time?
Not by increasing their hourly rate. Even if you charge $1000 per hour, you can only get paid for the number of hours that you work. And if the competition in your geographical area is only charging $200 per hour, raising your rate will only earn you more free time, not more money. So what opportunities does a lawyer have to leverage their time and make more money without having to work harder? I would suggest that there are four things lawyers can leverage: (1) other people’s time, (2) knowledge (information), (3) technology, and (4) packaged services.
In building the law firm of the future, I have started thinking about how to leverage these four things. I will describe my thoughts in more detail later. In what ways do you leverage your time? Care to share any examples?
Showing posts with label law firm of the future. Show all posts
Showing posts with label law firm of the future. Show all posts
Wednesday, October 31, 2007
Wednesday, March 28, 2007
Would you marry your business partner?
No, I don’t mean literally. Most people spend years looking for the right person to marry. But, when it comes to business, they spend very little time by comparison looking for the right person. Especially lawyers.
In order to build Law Firm 2.0 (the law firm of the future), I need to add lawyers to the firm. They could be partners or associates. I am open to either one. But, I know whomever it is will have a profound impact on the direction and culture of the firm. How do I find the right lawyers to work with?
You cannot build the law firm of the future unless all of the lawyers have (or adopt) a similar mindset. It just won’t happen. When I think about adding partners or associates (or anyone to the firm), I think about finding other people who are open to change and want to continually challenge themselves to make improvements.
Over the past five years, I have been approached several times by other lawyers asking whether I would be interested in joining them, or suggesting that maybe we could build a firm together. Each time, I approach those discussions with openness and a willingness to share my vision for the future. I explain that I want to build a new type of law practice for small business that leverages technology, increases efficiencies, provides high quality service, and reduces costs. I further explain that if the practice can be profitable with small businesses, it will be even more profitable with larger businesses.
Even before I finish explaining my vision, the other lawyers often lose their attention and start talking about what they want in a firm. Too many lawyers are looking for “bodies” or functional specialties. They think if they just have some number of lawyers (typically 5-20) with complementary areas of practice, then they can build a successful law firm. They are most concerned about physical size, physical location, and overhead. They talk about buildings, technology, and clients, but they are surprisingly silent about people, values and goals.
Don’t confuse new technology with new law firms. All of the computers and communication tools in the world will not change a law firm if the lawyers themselves are not open to change. It’s all about the people. What kind of law firm do they want to build, how will they build it, and who will be involved. Building the Law Firm 2.0 is not about technology, it’s about people implementing technology in new ways that will facilitate and improve the practice of law.
So, what does the ideal partner look like? What type of lawyer is needed to build Law Firm 2.0? Bruce MacEwen said it best when he declared that these lawyers would need to be “exceptional individuals of uncompromised vision” and suggested that they would have the following characteristics:
-deeply inquisitive
-risk-taking, open-minded, and eager to experiment
-trusting (by default – until crossed)
-instinctively dissastisfied with the a static status quo, and
-unwilling to settle for unimaginative, brute-force business models.
(David Maister's article entitled "Are Law Firms Manageable" and Bruce MacEwen's commentary are must reads for anyone trying to build a law firm today.)
In the past, I have had good partners and bad partners. Having a good partner expands my ability to generate business and be successful; the relationship breeds synergy. Having a bad partner contracts my ability to generate business and be successful; the relationship breeds mistrust and anxiety. The one thing I have learned is that it's all about the people.
What do you look for in a partner? How will that partner help you to build Law Firm 2.0?
In order to build Law Firm 2.0 (the law firm of the future), I need to add lawyers to the firm. They could be partners or associates. I am open to either one. But, I know whomever it is will have a profound impact on the direction and culture of the firm. How do I find the right lawyers to work with?
You cannot build the law firm of the future unless all of the lawyers have (or adopt) a similar mindset. It just won’t happen. When I think about adding partners or associates (or anyone to the firm), I think about finding other people who are open to change and want to continually challenge themselves to make improvements.
Over the past five years, I have been approached several times by other lawyers asking whether I would be interested in joining them, or suggesting that maybe we could build a firm together. Each time, I approach those discussions with openness and a willingness to share my vision for the future. I explain that I want to build a new type of law practice for small business that leverages technology, increases efficiencies, provides high quality service, and reduces costs. I further explain that if the practice can be profitable with small businesses, it will be even more profitable with larger businesses.
Even before I finish explaining my vision, the other lawyers often lose their attention and start talking about what they want in a firm. Too many lawyers are looking for “bodies” or functional specialties. They think if they just have some number of lawyers (typically 5-20) with complementary areas of practice, then they can build a successful law firm. They are most concerned about physical size, physical location, and overhead. They talk about buildings, technology, and clients, but they are surprisingly silent about people, values and goals.
Don’t confuse new technology with new law firms. All of the computers and communication tools in the world will not change a law firm if the lawyers themselves are not open to change. It’s all about the people. What kind of law firm do they want to build, how will they build it, and who will be involved. Building the Law Firm 2.0 is not about technology, it’s about people implementing technology in new ways that will facilitate and improve the practice of law.
So, what does the ideal partner look like? What type of lawyer is needed to build Law Firm 2.0? Bruce MacEwen said it best when he declared that these lawyers would need to be “exceptional individuals of uncompromised vision” and suggested that they would have the following characteristics:
-deeply inquisitive
-risk-taking, open-minded, and eager to experiment
-trusting (by default – until crossed)
-instinctively dissastisfied with the a static status quo, and
-unwilling to settle for unimaginative, brute-force business models.
(David Maister's article entitled "Are Law Firms Manageable" and Bruce MacEwen's commentary are must reads for anyone trying to build a law firm today.)
In the past, I have had good partners and bad partners. Having a good partner expands my ability to generate business and be successful; the relationship breeds synergy. Having a bad partner contracts my ability to generate business and be successful; the relationship breeds mistrust and anxiety. The one thing I have learned is that it's all about the people.
What do you look for in a partner? How will that partner help you to build Law Firm 2.0?
Tuesday, March 27, 2007
Power of the Internet
The Internet is the world’s first expanding resource. Think about it. Water, air, oil, land, food are all limited despite their being ubiquitous. The pioneers who first came to the US in the 1600’s probably thought those resources were unlimited. However, the more people there are on the planet, the scarcer and more expense those resources become. But the Internet is different. The more people who use it, the more plentiful and powerful it becomes. Is there any other resource like that?
Never has access to information been so easy or inexpensive. Never has there been so many tools and information available for free. Everyday there is a new website providing another free service that is designed to make life easier, more organized, or better informed. As a kid, I remember my family sharing one subscription to Life magazine to see pictures of what was going on in the world. To keep up with the news, we had a subscription to The Boston Globe and occasionally purchased a copy of the Sunday NY Times. TV came along later, but the information could not be stored, indexed, or searched. Once or twice a month, we would go to the town library. Growing up there were relatively few sources of information. Today, the Internet provides news, pictures, video, and research at the touch of a button. Information is everywhere.
Never has the power of the pen been so strong. The Internet enables anyone to speak to the world, to organize and repurpose information. In the old days, you would have to own a TV station or newspaper. Maybe you could write an article or a book. Or you could send out post cards, or make telephone calls. But you could only reach a handful of people and once the phone call was over or the newspaper was thrown out, the words were gone. Only the words of professional writers were immortalized. Today, anyone can publish a website or blog for free and make their thoughts and words available to everyone any time any where, forever.
Never has opportunity been greater. Whether you are building a Web 2.0 application or a Law Firm 2.0 application, the opportunity to make a change in the world is staring you right in the face. Anyone can make an impact on the world. A huge impact. All you have to do is to think about how you want to apply your skills to change and improve the world. And then go do it!
What do I want to do with the power of the Internet?
I want to build a national network of lawyers, one that shares information and resources and fosters a culture of collaboration. I want access to tools and information that facilitates the practice of law and empowers the solo practitioner to work shoulder-to-shoulder on par with lawyers in large firms. I want a system that encourages continual improvement of the quality of legal services. I want the quality of life for lawyers to go up and the cost of legal services to go down. By applying the power of the Internet, I think all this is possible.
From an IT (Information Technology) standpoint, we currently live in a golden age of opportunity. What do you want to do with the power of the Internet? How do think the Internet can help or improve the legal profession?
Never has access to information been so easy or inexpensive. Never has there been so many tools and information available for free. Everyday there is a new website providing another free service that is designed to make life easier, more organized, or better informed. As a kid, I remember my family sharing one subscription to Life magazine to see pictures of what was going on in the world. To keep up with the news, we had a subscription to The Boston Globe and occasionally purchased a copy of the Sunday NY Times. TV came along later, but the information could not be stored, indexed, or searched. Once or twice a month, we would go to the town library. Growing up there were relatively few sources of information. Today, the Internet provides news, pictures, video, and research at the touch of a button. Information is everywhere.
Never has the power of the pen been so strong. The Internet enables anyone to speak to the world, to organize and repurpose information. In the old days, you would have to own a TV station or newspaper. Maybe you could write an article or a book. Or you could send out post cards, or make telephone calls. But you could only reach a handful of people and once the phone call was over or the newspaper was thrown out, the words were gone. Only the words of professional writers were immortalized. Today, anyone can publish a website or blog for free and make their thoughts and words available to everyone any time any where, forever.
Never has opportunity been greater. Whether you are building a Web 2.0 application or a Law Firm 2.0 application, the opportunity to make a change in the world is staring you right in the face. Anyone can make an impact on the world. A huge impact. All you have to do is to think about how you want to apply your skills to change and improve the world. And then go do it!
What do I want to do with the power of the Internet?
I want to build a national network of lawyers, one that shares information and resources and fosters a culture of collaboration. I want access to tools and information that facilitates the practice of law and empowers the solo practitioner to work shoulder-to-shoulder on par with lawyers in large firms. I want a system that encourages continual improvement of the quality of legal services. I want the quality of life for lawyers to go up and the cost of legal services to go down. By applying the power of the Internet, I think all this is possible.
From an IT (Information Technology) standpoint, we currently live in a golden age of opportunity. What do you want to do with the power of the Internet? How do think the Internet can help or improve the legal profession?
Saturday, March 24, 2007
Building Law Firm 2.0
The current revolution of new applications and uses of the Internet has frequently been termed Web 2.0. In thinking about how this revolution will affect the practice of law, the term “Law Firm 2.0” came to mind. Based on a quick google search, I see that I am not the first to use this term.
What is Law Firm 2.0?
Law Firm 2.0 is a way to describe the impact that technology and the web will have on the next generation of law firms.
In October 2005, I heard Carly Fiorina, former President and CEO of Hewlett-Packard Co., speak at MIT’s convocation. Having just revitalized one of the worlds leading technology companies, she had a very clear understanding of how technology was reshaping the world. She believes that we are at the beginning of a new era dominated by the power of the individual, driven by technology that is digital, mobile, virtual, and personal. (And I would add a fifth characteristic for law firms: secure).
Last month, I wrote that Knowledge Management will drive the law firm of the future. The core platform for managing knowledge will be web-based applications. The Law Firm 2.0 concept requires rethinking the web as the lawyer’s primary control center. Are lawyers using the web as their primary control center now? No. Not by a long shot!
Today, I use the web mainly to visit specific web sites, read news, and do occasional google searches. My central focus is on email. If anything, MS Outlook is my control center. First thing in the morning I check email, then calendar events, and then todo lists. I use PC-based word processing to draft and revise documents. My day tends to be interrupt-driven with telephone calls, email messages, and calendar alerts continually resetting my priorities.
In the future, I expect to use my web browser as my control center. I envision working virtually, relying more on online systems than PCs. I want to be able to work anytime anywhere without carrying my office with me. I want to have access to people, information, and tools that enhance and facilitate the practice of law, automate mundane tasks and allow me to leverage my time. The web-based tools are more suited to the style of practice I envision.
Note: I did not mention building computer networks or network storage systems. I worked in the computer networking industry and I was President of a networking software company. Although networking and storage are critical technologies, they have no place inside the law firm of the future, any more than an electrical generator or telephone switching station does. Networking and storage technologies should be provided by utilities like electricity, heat, and water. Law firms need to have these resources, but they do not need to build or manage them.
I don’t mean to offend anyone, but building a large IT department is a mistake! Instead, build a large KM department. Law Firm 2.0 is about leveraging technology and systems to facilitate the practice of law. It is not about building technology and systems.
Getting to Law Firm 2.0 takes a lot of work and a willingness to change. You have to constantly adapt and upgrade tools without disrupting work flow and client priorities. (As you can see by my sporadic postings of late, I am still fine tuning that balance).
So, what are some of the changes I envision?
Digital – paperless office; all documents scanned and stored electronically (except where original signatures are required),
Mobile – working anytime, anywhere; information should be accessible over the web and compatible with pdas, cell phones, and the latest messaging applications.
Virtual – access to people, information and tools, working in the office is an option; systems must be designed with the assumption that people may be working next door or on the other side of the globe; systems must facilitate communications and sharing of knowledge without assuming the traditional in-person contact.
Personal – the power of the individual; lawyers are extremely intelligent and each have their own style of practice; tools must allow sharing of knowledge without constraining individual preferences or inhibiting individual contributions.
Secure – trust is a foundation of legal practice; lawyers must preserve client confidentiality and maintain the integrity of the profession; systems must have access control, encryption, off-site back-up, and automated processes.
What do you envision for the law firm of the future? What technologies are critical for Law Firm 2.0?
What is Law Firm 2.0?
Law Firm 2.0 is a way to describe the impact that technology and the web will have on the next generation of law firms.
In October 2005, I heard Carly Fiorina, former President and CEO of Hewlett-Packard Co., speak at MIT’s convocation. Having just revitalized one of the worlds leading technology companies, she had a very clear understanding of how technology was reshaping the world. She believes that we are at the beginning of a new era dominated by the power of the individual, driven by technology that is digital, mobile, virtual, and personal. (And I would add a fifth characteristic for law firms: secure).
Last month, I wrote that Knowledge Management will drive the law firm of the future. The core platform for managing knowledge will be web-based applications. The Law Firm 2.0 concept requires rethinking the web as the lawyer’s primary control center. Are lawyers using the web as their primary control center now? No. Not by a long shot!
Today, I use the web mainly to visit specific web sites, read news, and do occasional google searches. My central focus is on email. If anything, MS Outlook is my control center. First thing in the morning I check email, then calendar events, and then todo lists. I use PC-based word processing to draft and revise documents. My day tends to be interrupt-driven with telephone calls, email messages, and calendar alerts continually resetting my priorities.
In the future, I expect to use my web browser as my control center. I envision working virtually, relying more on online systems than PCs. I want to be able to work anytime anywhere without carrying my office with me. I want to have access to people, information, and tools that enhance and facilitate the practice of law, automate mundane tasks and allow me to leverage my time. The web-based tools are more suited to the style of practice I envision.
Note: I did not mention building computer networks or network storage systems. I worked in the computer networking industry and I was President of a networking software company. Although networking and storage are critical technologies, they have no place inside the law firm of the future, any more than an electrical generator or telephone switching station does. Networking and storage technologies should be provided by utilities like electricity, heat, and water. Law firms need to have these resources, but they do not need to build or manage them.
I don’t mean to offend anyone, but building a large IT department is a mistake! Instead, build a large KM department. Law Firm 2.0 is about leveraging technology and systems to facilitate the practice of law. It is not about building technology and systems.
Getting to Law Firm 2.0 takes a lot of work and a willingness to change. You have to constantly adapt and upgrade tools without disrupting work flow and client priorities. (As you can see by my sporadic postings of late, I am still fine tuning that balance).
So, what are some of the changes I envision?
Digital – paperless office; all documents scanned and stored electronically (except where original signatures are required),
Mobile – working anytime, anywhere; information should be accessible over the web and compatible with pdas, cell phones, and the latest messaging applications.
Virtual – access to people, information and tools, working in the office is an option; systems must be designed with the assumption that people may be working next door or on the other side of the globe; systems must facilitate communications and sharing of knowledge without assuming the traditional in-person contact.
Personal – the power of the individual; lawyers are extremely intelligent and each have their own style of practice; tools must allow sharing of knowledge without constraining individual preferences or inhibiting individual contributions.
Secure – trust is a foundation of legal practice; lawyers must preserve client confidentiality and maintain the integrity of the profession; systems must have access control, encryption, off-site back-up, and automated processes.
What do you envision for the law firm of the future? What technologies are critical for Law Firm 2.0?
Thursday, March 15, 2007
Testing my virtual strength
On Monday, I had my first real test of virtual strength. I didn’t plan it that way, it just happened.
Every year, my son and I go away for a weekend in March to go skiing. There are two kinds of skiing. Winter skiing and Spring skiing. Winter skiing is a test of man against nature. Spring skiing is about man appreciating nature. There’s nothing like floating down a mountain of snow on a warm sunny day.
I digress…my son and I were away for our annual father-and-son spring weekend. As always for solos, getting away, even for a weekend can be difficult. For some reason, several last minute client matters arise that you feel compelled (ethically or contractually) to address before you go away. Of course, this year was no different. I worked right up to the last minute. We were supposed to leave early on Friday, and instead left on Saturday morning.
Rather than rush home on Sunday night, this year I decided to take Monday off and test out my abilities as a virtual lawyer. The skiing on Saturday was excellent (good snow, warm weather, lots of sun). But it rained Saturday night and was icy on Sunday. I looked at the weather for Monday, and it looked perfect. Being so late in the season, you can’t expect too many more days of skiing. The combination of warming temperatures, day-to-day obligations, and previously scheduled events minimizes the chances of enjoying another spring skiing day. Go for it!
But Monday was not Sunday and there was no Partner or Associate holding down the office. Was I able to maintain a professional practice remotely, any time, any where? How strong were my virtual lawyering skills? Well, this was a good test. I hadn’t originally planned to take Monday off, it was more spur of the moment. All I brought was my laptop and a pad of paper with my todo list. I didn’t even bring a pen. I had to use the complimentary pen from the hotel room.
Sometimes, as a solo, you and get away for a day without the phone ringing, and even if it does most client matters can wait 24 hours. Sometimes, you can’t.
Sunday night, I knew there were several projects which had a sense of urgency from the clients’ perspective. From my perspective, they were the typical “hurry up and wait”. You know the financing transaction that has to close this week and then the client sits on it for two or three weeks because something comes up or they’re not really sure they want to go through with it.
First, I made a deal with my son. We can stay an extra day and go skiing (and he gets to miss school), but I had to get my work done Sunday night. We stopped at the local video store rented the Star Wars trilogy for $1.25 and then I was free to work for the evening. The theory was that I could generate enough work to keep my clients busy (and happy) while I was skiing on Monday.
The second thing I did was to call my wife and ask her to forward my office phone to my cell phone (you can only do that if you are a solo attorney). That way, I could take my cell phone with me and, if something came up, ski back to the lodge to get my computer.
Third, I connected to the free wireless Internet at the hotel. I would have been happy to pay for Internet service, which they used to charge for, but this year the hotel made the brilliant decision to make wireless Internet free (probably to avoid technical support). The connection was a little slow, but I could live with it. I could receive emails through Outlook, but I could not send emails without using the web-based interface. Sending emails with attachments was quite a bit slower.
Finally, I set down to work. I read a few weekend emails from clients (I hate those!) and started drafting documents. As I worked, I realized my outstanding projects were bigger than I thought and the critical deadlines were closer than I had expected. The good news was that I was glad to be starting work at 5pm on Sunday evening in my hotel rather than driving home in 3 plus hours of traffic, packing and unpacking the car, and then trying to work at 9pm.
As it got to be midnight, my son fell asleep in the middle of the third trilogy; I was still working. I was determined to get several projects off to clients to free up the next day, even if I had to stay up late. Then, several clients (also working on Sunday night) sent emails raising new issues that could perhaps wait for Monday morning, but not Tuesday. By the time I got to bed, it was 4:30am. No problem, I would get 4 hours of sleep and then go skiing. Skiing in the warm sun would energize me.
At 8:30am, I woke up right on schedule. However, those projects that I sent to clients in the middle of the night, were already generating responses. Rather than keep the clients busy, they confirmed that the critical deadlines really were critical. Now I was in trouble. I had to file a new corporation in Delaware, revise financing documents, confer with outside counsel as well as the client, and get the financing closed by the end of the day.
The first challenge was faxing a document to the Delaware Secretary of State (“DE-SOS”). Yes, I could have called CT Corporation and emailed the document to them. But I try to keep costs down for client and I have gotten used to faxing my filings directly to the DE-SOS. I had no scanner or fax machine. All I had was my laptop. I called the DE-SOS and they said they only accept faxes; they could not accept email. If you know government offices, they were not about to make any exceptions for me or my annual father-and-son ski weekend.
The challenge was how to get an unsigned document out of my computer, signed, and faxed to the DE-SOS. First, I applied my electronic signature to the Certificate of Incorporation. Then, I saved it as a pdf to preserve the formatting. I attached the pdf to an email. All I had to do was to email to an online fax service and I was done.
Well, I had been meaning to sign-up for a PC to fax service, but had not gotten around to it. As a virtual lawyer, my plan was to forward the fax line in my office to an email fax. So, it was a problem I needed to solve anyway. Years ago, I used the free version of eFax, but I disliked having to download special software to read faxes written in a proprietary format. I assumed the fax services were better today, but I didn’t have time to research it.
So, there I was in my hotel room. The client said, “let’s go forward with the incorporation today.” It was 10am and the fax needed to be received by DE-SOS before 2pm. I can do this…I just need to signup for an online fax search. I did a quick Google search to find the most highly rated fax services. Several reviews came up quickly. One service offered a free trial. Great! Rather than take the time to compare services, I’ll just use the free trial to send out my document now.
In the meantime, there were a number of phone calls and last minute revisions to the financing documents. I still planned to buy a half-day ticket and go skiing in the afternoon. By noon, the sun would soften up the slopes and the skiing would be better.
Don’t forget to read the fine print. I sent out the fax document using the free trial, but nothing happened. No quick “confirmed” status. The website screen just said “processing.” That’s funny, in the real world, I hit the send button on the fax and it either goes through or fails within a minute or two. Instead, it just sat there “processing”. By 12pm, I got nervous and started reading the FAQs for help with the online fax service. In the fine print, I discovered that the free-trial was only good for 10 pages; my pdf document with the filing cover memo was 12 pages. Even when it gets done processing, this document was not going through.
Plan B was to go back to the reviews and, instead of the free trial, sign up for the top rated for-pay fax service. I could always cancel or change services later. I quickly concluded that MyFax and eFax were the most popular. The reviews suggested that they were equally as good, but MyFax was cheaper. I’m always in favor of supporting the underdog and saving a little money. ;-)
I signed up for MyFax, paid by credit card, uploaded my document and within minutes I received confirmation that the transmission was successful. At 1pm, I called the DE-SOS and confirmed the fax arrived. Crisis averted. In the meantime, my son was thrilled to be playing video games rather than skiing. And after two hard days of skiing, he needed the break.
Okay, so grab a quick bite to eat for lunch and then hit the slopes. Right? Nope…more client issues that had to be solved today. Each one passed the test: will a 24 hour delay adversely affect the client? If so, get it done now. By 2:30pm my hopes of catching the last few rays of the new daylight savings time were fading fast.
I finished the critical projects by 4pm. We packed up the car and drove home. No, we didn’t get to enjoy that glorious day out on the slopes. No, technology did not save me time that day. But yes, the virtual lawyer experiment had worked. I could access information, knowledge and tools from a remote location and provide the quality of service that clients deserve.
Maybe I still need to improve my life-work balance, but that will come. Already, I feel more comfortable knowing that I can leave the office spontaneously and I have acquired one more tool (PC to fax) that will facilitate working remotely.
Have you tested your virtual strength lately? What technologies have helped you to work remotely?
Every year, my son and I go away for a weekend in March to go skiing. There are two kinds of skiing. Winter skiing and Spring skiing. Winter skiing is a test of man against nature. Spring skiing is about man appreciating nature. There’s nothing like floating down a mountain of snow on a warm sunny day.
I digress…my son and I were away for our annual father-and-son spring weekend. As always for solos, getting away, even for a weekend can be difficult. For some reason, several last minute client matters arise that you feel compelled (ethically or contractually) to address before you go away. Of course, this year was no different. I worked right up to the last minute. We were supposed to leave early on Friday, and instead left on Saturday morning.
Rather than rush home on Sunday night, this year I decided to take Monday off and test out my abilities as a virtual lawyer. The skiing on Saturday was excellent (good snow, warm weather, lots of sun). But it rained Saturday night and was icy on Sunday. I looked at the weather for Monday, and it looked perfect. Being so late in the season, you can’t expect too many more days of skiing. The combination of warming temperatures, day-to-day obligations, and previously scheduled events minimizes the chances of enjoying another spring skiing day. Go for it!
But Monday was not Sunday and there was no Partner or Associate holding down the office. Was I able to maintain a professional practice remotely, any time, any where? How strong were my virtual lawyering skills? Well, this was a good test. I hadn’t originally planned to take Monday off, it was more spur of the moment. All I brought was my laptop and a pad of paper with my todo list. I didn’t even bring a pen. I had to use the complimentary pen from the hotel room.
Sometimes, as a solo, you and get away for a day without the phone ringing, and even if it does most client matters can wait 24 hours. Sometimes, you can’t.
Sunday night, I knew there were several projects which had a sense of urgency from the clients’ perspective. From my perspective, they were the typical “hurry up and wait”. You know the financing transaction that has to close this week and then the client sits on it for two or three weeks because something comes up or they’re not really sure they want to go through with it.
First, I made a deal with my son. We can stay an extra day and go skiing (and he gets to miss school), but I had to get my work done Sunday night. We stopped at the local video store rented the Star Wars trilogy for $1.25 and then I was free to work for the evening. The theory was that I could generate enough work to keep my clients busy (and happy) while I was skiing on Monday.
The second thing I did was to call my wife and ask her to forward my office phone to my cell phone (you can only do that if you are a solo attorney). That way, I could take my cell phone with me and, if something came up, ski back to the lodge to get my computer.
Third, I connected to the free wireless Internet at the hotel. I would have been happy to pay for Internet service, which they used to charge for, but this year the hotel made the brilliant decision to make wireless Internet free (probably to avoid technical support). The connection was a little slow, but I could live with it. I could receive emails through Outlook, but I could not send emails without using the web-based interface. Sending emails with attachments was quite a bit slower.
Finally, I set down to work. I read a few weekend emails from clients (I hate those!) and started drafting documents. As I worked, I realized my outstanding projects were bigger than I thought and the critical deadlines were closer than I had expected. The good news was that I was glad to be starting work at 5pm on Sunday evening in my hotel rather than driving home in 3 plus hours of traffic, packing and unpacking the car, and then trying to work at 9pm.
As it got to be midnight, my son fell asleep in the middle of the third trilogy; I was still working. I was determined to get several projects off to clients to free up the next day, even if I had to stay up late. Then, several clients (also working on Sunday night) sent emails raising new issues that could perhaps wait for Monday morning, but not Tuesday. By the time I got to bed, it was 4:30am. No problem, I would get 4 hours of sleep and then go skiing. Skiing in the warm sun would energize me.
At 8:30am, I woke up right on schedule. However, those projects that I sent to clients in the middle of the night, were already generating responses. Rather than keep the clients busy, they confirmed that the critical deadlines really were critical. Now I was in trouble. I had to file a new corporation in Delaware, revise financing documents, confer with outside counsel as well as the client, and get the financing closed by the end of the day.
The first challenge was faxing a document to the Delaware Secretary of State (“DE-SOS”). Yes, I could have called CT Corporation and emailed the document to them. But I try to keep costs down for client and I have gotten used to faxing my filings directly to the DE-SOS. I had no scanner or fax machine. All I had was my laptop. I called the DE-SOS and they said they only accept faxes; they could not accept email. If you know government offices, they were not about to make any exceptions for me or my annual father-and-son ski weekend.
The challenge was how to get an unsigned document out of my computer, signed, and faxed to the DE-SOS. First, I applied my electronic signature to the Certificate of Incorporation. Then, I saved it as a pdf to preserve the formatting. I attached the pdf to an email. All I had to do was to email to an online fax service and I was done.
Well, I had been meaning to sign-up for a PC to fax service, but had not gotten around to it. As a virtual lawyer, my plan was to forward the fax line in my office to an email fax. So, it was a problem I needed to solve anyway. Years ago, I used the free version of eFax, but I disliked having to download special software to read faxes written in a proprietary format. I assumed the fax services were better today, but I didn’t have time to research it.
So, there I was in my hotel room. The client said, “let’s go forward with the incorporation today.” It was 10am and the fax needed to be received by DE-SOS before 2pm. I can do this…I just need to signup for an online fax search. I did a quick Google search to find the most highly rated fax services. Several reviews came up quickly. One service offered a free trial. Great! Rather than take the time to compare services, I’ll just use the free trial to send out my document now.
In the meantime, there were a number of phone calls and last minute revisions to the financing documents. I still planned to buy a half-day ticket and go skiing in the afternoon. By noon, the sun would soften up the slopes and the skiing would be better.
Don’t forget to read the fine print. I sent out the fax document using the free trial, but nothing happened. No quick “confirmed” status. The website screen just said “processing.” That’s funny, in the real world, I hit the send button on the fax and it either goes through or fails within a minute or two. Instead, it just sat there “processing”. By 12pm, I got nervous and started reading the FAQs for help with the online fax service. In the fine print, I discovered that the free-trial was only good for 10 pages; my pdf document with the filing cover memo was 12 pages. Even when it gets done processing, this document was not going through.
Plan B was to go back to the reviews and, instead of the free trial, sign up for the top rated for-pay fax service. I could always cancel or change services later. I quickly concluded that MyFax and eFax were the most popular. The reviews suggested that they were equally as good, but MyFax was cheaper. I’m always in favor of supporting the underdog and saving a little money. ;-)
I signed up for MyFax, paid by credit card, uploaded my document and within minutes I received confirmation that the transmission was successful. At 1pm, I called the DE-SOS and confirmed the fax arrived. Crisis averted. In the meantime, my son was thrilled to be playing video games rather than skiing. And after two hard days of skiing, he needed the break.
Okay, so grab a quick bite to eat for lunch and then hit the slopes. Right? Nope…more client issues that had to be solved today. Each one passed the test: will a 24 hour delay adversely affect the client? If so, get it done now. By 2:30pm my hopes of catching the last few rays of the new daylight savings time were fading fast.
I finished the critical projects by 4pm. We packed up the car and drove home. No, we didn’t get to enjoy that glorious day out on the slopes. No, technology did not save me time that day. But yes, the virtual lawyer experiment had worked. I could access information, knowledge and tools from a remote location and provide the quality of service that clients deserve.
Maybe I still need to improve my life-work balance, but that will come. Already, I feel more comfortable knowing that I can leave the office spontaneously and I have acquired one more tool (PC to fax) that will facilitate working remotely.
Have you tested your virtual strength lately? What technologies have helped you to work remotely?
Saturday, March 3, 2007
Virtual Lawyer vs. Virtual Law Practice
Yesterday, I helped a lawyer in a mid-sized firm by sharing some information about how to perfect a security interest in a patent. She expressed her appreciation and asked how she could help me. I said, "read my blog called The Virtual Lawyer". Her response was "Oh, I have a friend who turned down a partnership at a big firm to start a virtual law practice with a few others and they have no office. I'll tell her about your blog."
I wanted to say, "Wait! The Virtual Lawyer is not just for lawyers without an office. It's for you too!" But I didn't say that because I didn't realize it before. The Virtual Lawyer is not just for solo practitioners and virtual law practices. It's for all lawyers that want to evolve their practice virtually.
On Tuesday, I made a first attempt at defining "virtual lawyer". Upon reflection, that initial definition seemed to confuse the notion of a virtual law practice with a virtual lawyer. It makes more sense to separate them, as follows:
A "virtual lawyer" is a professional authorized to practice law, who works with people all geographically dispersed, and whose law practice is carried on by means of a computer or computer network.
A "virtual law practice" consists of one or more professionals authorized to practice law, whose law practice is carried on by means of a computer or computer network, without a physical office space.
These definitions suggest that there is a difference between a "virtual lawyer" and a "virtual law practice." The virtual lawyer may or may not have a physical office. The virtual law practice has no physical office.
The concept here is that as the legal profession evolves, most lawyers will work virtually by means of a computer or computer network even if they are sitting in the office next to you. I don't mean to dehumanize the profession or offend anyone. Virtual lawyers will continue to work with people, but their primary means of communication and delivery of work product will be by email, telephone and computer networks. This is quite different from traditional lawyers whose primary means of communication was meeting in person and whose primary means of delivery of work product was on paper.
Most of us are working "virtually" already, but we still think about the law practice in physical terms. We try to make the virtual practice fit into the traditional law practice. The next generation of lawyers is going to think virtually first. They are going to think about how to take the traditional law practice and fit it into the virtual world. This is what will open people's mind to a new and improved profession.
The purpose of The Virtual Lawyer blog is to help lawyers think about how to change and develop their lawyering skills for an increasingly virtual world. This is for all lawyers, not just solos and office-less lawyers.
What are you doing to adapt your legal skills for a virtual world? How will it affect your practice?
I wanted to say, "Wait! The Virtual Lawyer is not just for lawyers without an office. It's for you too!" But I didn't say that because I didn't realize it before. The Virtual Lawyer is not just for solo practitioners and virtual law practices. It's for all lawyers that want to evolve their practice virtually.
On Tuesday, I made a first attempt at defining "virtual lawyer". Upon reflection, that initial definition seemed to confuse the notion of a virtual law practice with a virtual lawyer. It makes more sense to separate them, as follows:
A "virtual lawyer" is a professional authorized to practice law, who works with people all geographically dispersed, and whose law practice is carried on by means of a computer or computer network.
A "virtual law practice" consists of one or more professionals authorized to practice law, whose law practice is carried on by means of a computer or computer network, without a physical office space.
These definitions suggest that there is a difference between a "virtual lawyer" and a "virtual law practice." The virtual lawyer may or may not have a physical office. The virtual law practice has no physical office.
The concept here is that as the legal profession evolves, most lawyers will work virtually by means of a computer or computer network even if they are sitting in the office next to you. I don't mean to dehumanize the profession or offend anyone. Virtual lawyers will continue to work with people, but their primary means of communication and delivery of work product will be by email, telephone and computer networks. This is quite different from traditional lawyers whose primary means of communication was meeting in person and whose primary means of delivery of work product was on paper.
Most of us are working "virtually" already, but we still think about the law practice in physical terms. We try to make the virtual practice fit into the traditional law practice. The next generation of lawyers is going to think virtually first. They are going to think about how to take the traditional law practice and fit it into the virtual world. This is what will open people's mind to a new and improved profession.
The purpose of The Virtual Lawyer blog is to help lawyers think about how to change and develop their lawyering skills for an increasingly virtual world. This is for all lawyers, not just solos and office-less lawyers.
What are you doing to adapt your legal skills for a virtual world? How will it affect your practice?
Thursday, February 22, 2007
How many lawyers does a firm need?
The largest U.S. law firm, Baker & McKenzie, now has over 3500 lawyers according to The NLJ 250 posted on Law.com. As a solo practitioner, I think about adding one or two lawyers, maybe growing to five or ten in few years (or maybe staying solo). I can't imagine growing into a firm with hundreds of lawyers, let alone thousands of lawyers. And, on a day-to-day basis, I don't think much about what the big firms are doing. Most of the time it seems that the big firms are part of another world. How does it affect me?
I believe the legal industry is going through a major period of transition, one that we have not seen in the history of the profession. I think the transition is being forced by the advent of new technologies, improved methods of communication, and globalization. The question is where is the legal industry going? What does it mean for solos and small firms?
Big firms are getting bigger. For each of the last two years, the largest 250 law firms in the U.S. grew by 4 percent or more. The smallest firm on The NLJ 250 had only 172 lawyers. I don't know the statistics, but when I graduated law school in 1986, I would guess that a 172-lawyer firm would have been in the top 25, or top 50 at least. The legal profession in the United States has been around for about 200 years. So, why is it that in the last 20 years, firms are now growing so big? Does it mean we all need to part of a mega firm to practice law?
When most clients go looking for a law firm, do they think "we really need a firm that has at least 1500 lawyers to be able to handle our legal needs?" Do they think 1500 lawyers work more efficiently under one roof? Law firms are getting bigger because they can, and because other firms are getting bigger.
Big firms are being structured more like traditional businesses with new management such as CEOs, COOs, CMOs and other C-level executives. More management means more overhead. Also, big firms are beginning to realize that knowledge management will drive law firms of the future and have started to invest more money in technology and training. These developments increase overhead, which means firms must continue to grow in order to maintain efficiency and profitability.
At the same time that big firms are growing, computers and the Internet are enabling solos and small firms to reduce costs and improve the quality of their practice and quality of their lifestyle. How can this be true that technology increases costs for big firms and decreases costs for solos and small firms? Because the latter don't invest in management, IT systems, training, and consulting. They rely on the consumer marketplace.
What this means is that the legal industry is undergoing a massive transition, which may take years to settle out. My prediction is that the number mid-sized firms will shrink. There will be big firms and small firms, but few in the middle.
What do you think will happen? How big should your firm be?
I believe the legal industry is going through a major period of transition, one that we have not seen in the history of the profession. I think the transition is being forced by the advent of new technologies, improved methods of communication, and globalization. The question is where is the legal industry going? What does it mean for solos and small firms?
Big firms are getting bigger. For each of the last two years, the largest 250 law firms in the U.S. grew by 4 percent or more. The smallest firm on The NLJ 250 had only 172 lawyers. I don't know the statistics, but when I graduated law school in 1986, I would guess that a 172-lawyer firm would have been in the top 25, or top 50 at least. The legal profession in the United States has been around for about 200 years. So, why is it that in the last 20 years, firms are now growing so big? Does it mean we all need to part of a mega firm to practice law?
When most clients go looking for a law firm, do they think "we really need a firm that has at least 1500 lawyers to be able to handle our legal needs?" Do they think 1500 lawyers work more efficiently under one roof? Law firms are getting bigger because they can, and because other firms are getting bigger.
Big firms are being structured more like traditional businesses with new management such as CEOs, COOs, CMOs and other C-level executives. More management means more overhead. Also, big firms are beginning to realize that knowledge management will drive law firms of the future and have started to invest more money in technology and training. These developments increase overhead, which means firms must continue to grow in order to maintain efficiency and profitability.
At the same time that big firms are growing, computers and the Internet are enabling solos and small firms to reduce costs and improve the quality of their practice and quality of their lifestyle. How can this be true that technology increases costs for big firms and decreases costs for solos and small firms? Because the latter don't invest in management, IT systems, training, and consulting. They rely on the consumer marketplace.
What this means is that the legal industry is undergoing a massive transition, which may take years to settle out. My prediction is that the number mid-sized firms will shrink. There will be big firms and small firms, but few in the middle.
What do you think will happen? How big should your firm be?
Sunday, February 18, 2007
Will Knowledge Management drive law firms in the future?
There is no doubt in my mind that Knowledge Management ("KM") will drive law firms in the future. In the past, law firms were driven by recruiting the best and the brightest lawyers and developing a reputation for good work. Hiring talented lawyers will be important in the future, but not as important as developing the best KM systems. Why do I believe that? Because the Internet makes people and information more accessible. It's scary to say, but the Internet makes people more of a commodity (not that I believe that personally). With regard to professional services, talent will no longer be the differentiator. The biggest challenge for law firms will be to harness that talent and their reservoirs of knowledge in ways that improve product quality and efficiency. In other words, "Knowledge Management".
Ok, but what is KM? Here are some definitions:
According to Wikipedia, "There is a broad range of thought on Knowledge Management with no unanimous definition current or likely." Wikipedia itself defines Knowledge Management as a "range of practices used by organizations to identify, create, represent, and distribute knowledge for reuse, awareness, and learning across the organisations." The fact that wikipedia spells the word "organization" differently than I do does not give me much comfort in their definition.
The definition of Knowledge Management that I prefer is "Capturing, organizing, and storing knowledge and experiences of individual workers and groups within an organization and making this information available to others in the organization." (Ironically, I found this definition on Google from a link that is no longer working.) It is the collaborative element of this definition that I find compelling. Lawyers sharing information will make all of us better lawyers and more efficient. KM will facilitate the process.
More practically, I think that KM encompases all of the systems, tools, and infrastructure needed to practice law effectively. In an upcoming blog, I will attempt to break down the concept of Knowledge Management into practical terms and identify how law firms can start to lay the ground work now for developing the systems, tools, and infrastructure that I (and most lawyers) will need to access in the future.
What do you think will drive law firms in the future? Will it be KM or something else?
Ok, but what is KM? Here are some definitions:
According to Wikipedia, "There is a broad range of thought on Knowledge Management with no unanimous definition current or likely." Wikipedia itself defines Knowledge Management as a "range of practices used by organizations to identify, create, represent, and distribute knowledge for reuse, awareness, and learning across the organisations." The fact that wikipedia spells the word "organization" differently than I do does not give me much comfort in their definition.
The definition of Knowledge Management that I prefer is "Capturing, organizing, and storing knowledge and experiences of individual workers and groups within an organization and making this information available to others in the organization." (Ironically, I found this definition on Google from a link that is no longer working.) It is the collaborative element of this definition that I find compelling. Lawyers sharing information will make all of us better lawyers and more efficient. KM will facilitate the process.
More practically, I think that KM encompases all of the systems, tools, and infrastructure needed to practice law effectively. In an upcoming blog, I will attempt to break down the concept of Knowledge Management into practical terms and identify how law firms can start to lay the ground work now for developing the systems, tools, and infrastructure that I (and most lawyers) will need to access in the future.
What do you think will drive law firms in the future? Will it be KM or something else?
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