Monday improvement ideas for a law firm

Today’s blog is the result of a meeting I had with a client last week.  We were reviewing the monthly operations and we discussed the rather large legal bills that had been incurred over the past few months.  Legal expenses are generally worth every dime spent: provided that both parties understand the purpose of looking for a lawyers advice.  In this instance I am not so sure.

The lawyers were asked to research an area of law that is highly important to the Company.  It was to assist in making sure the objectives and the operating plans were in sync and fit everyone’s definitions. The firm did the research and then spent, in the client’s opinion, an excessive amount of time to write a memo to the Company that essentially said “it depends.”.

Customers feel variation, not standards.  In the customer’s mind, a memo that doesn’t give a definitive answer and takes longer than an hour to write is a huge variation.  Notice by the way that the client was not the least bit bothered by the 20 hours of research that got to the answer “it depends.”  They were upset with the perceived lack of control on the memo.

What should a law firm do to improve its flow and reduce real and perceived variation in process?

First set a clear expectation in the mind of the client as to the amount of time needed for the process.

Second, review the steps that are taken to produce a memo.  What are the standards for research? Who does it, what are the tools, and how do they prepare notes?  

Third, who gets involved in the process?   Does the memo go back and forth between clerical and the lawyer as they work and rework the memo?  Is the lawyer dictating to a machine to be transcribed by a person or is the lawyer dictating to software?  Have you found the right software to reduce the non-value added time of correcting words and phrases?

Fourth, has your billing system been tuned to remove non-value added time?  Lets be honest, the fact that a client’s file is open on your desk does not mean that the billing clock should start.  Yes I know that some firms do that but ask yourself, do you want your firm to be a “me-too?”

Fifth, do you judge the lawyers in the firm based upon billed hours or upon effectively collected hours?  Are you sure your targets do not work against you?  The objectives may need to change to help the firm better reach its goal.

Sixth, how much time is set-up time?  Yes even lawyers have set-up time.  Do you have to walk to a law library?  If you do your research on-line, do you hunt for passwords?  Do you make notes to then dictate to the machine? 

There are many more things that could help improve your work flow.  I know that it seems pointless though since apparently your clients are willing to pay for every moment you even dream about them.  But trust me, there is a breaking point even for the best and wealthiest clients.  Is it your objective to push each client to that point every day?  Or do you like the idea of making a few thousand dollars a year off of each client for the next 8 to 10 years?  Perhaps we should review the measurements?

If you have questions or comments, feel free to write me at johnc@constprofit.biz

Monday Improvement Idea for a Trade Organization

I have worked with several trade associations over the past few years.  Each of them confuse their strategy for their goal.  It is understandable given the fact that most trade associations are run by successful people in the trade.  Most of those successful people are incredibly talented and have a wish to help.  But in many cases, the skills that brought them such great success in their business hinder their effectiveness in a non-profit organization (NPO).

Assuming that the NPO does not have a critical capacity constraint of Money or Time, then what is it?  You have to look critically at the organization and ask, what keeps it from being 100% effective at its goal?  There is something, trust me: if there were not, the NPO would be a household name, like the IRS or congress.  And even then, those organizations have constraints that stop them from being 100% effective.

In many NPO, the constraint is policy.  This can be a good thing, in that the scope of actions is severely limited by the NPO’s charter, or it can be a negative in that the NPO turns a blind eye or has built in redundancy on a given issue.  Recognizing that the NPO is not going to be suited for every possible member, what steps can be taken to triple membership?  What stops people from saying “yes” to a membership? 

Worse; recognizing that the NPO is not going to be suited for every possible member, why are the people responsible for membership chasing those who will be an obvious “NO”?  How much time is spent trying to get a new member? 

Here is my idea for Monday.  If you are a NPO, take a deep breath and this entire week, do not chase a single new member.  Step back and see how much time was spent prospecting and instead, spend 1/2 hour or an hour with a current member and find out what they like, dislike, would change, would keep.  Have your membership person set aside 20 hours and do nothing but meet with current members.  They will take the time.  If they won’t, it tells you how weak your relationship is with the member.

How is this an improvement?  You are currently spending about $125 to get a new member.  That is $200 of current member money.  Yes, I know you believe that your prospect is going to pay their way.  But the problem is that you see 10 prospects for every new member.  It costs you $100,000 to run your membership department.  Divide that by 2,000 hours and you get $50.  Assuming that it takes 15 minutes to meet with a prospect to get a “NO”, you are currently investing 2 hours and 15 minutes to get the 15 minutes of yes.  Think about it: 2.5 hours at $50 per hour.

Your current members, by the way, are thinking of leaving.  They don’t feel loved.  You don’t give them attention.  You never call or write.  You already invested the time to get them and then you ignore them. It doesn’t matter how much the membership is:  you are competing with the most dangerous competitor in the world!  Apathy!!  By the way, your current member also knows 2 or 4 or 50 other people who should belong to the trade association and you giving love and attention to the member will result in new members.  Trust me.

Now that is the easy solution.  New members will come, but your existing members are feeling like you don’t care.  Take it from an expert who brought in new ones only to see ideal clients walking out the back door because the business didn’t show them the love and attention they deserved.  Plus, you get the added benefit of a happy member telling 1 other and convincing them to join.  30 minutes, or $25, translating into a new member, instead of $125.  How is that for an improvement?

The more interesting and challenging solution?  Write me and lets discuss.  johnc@constprofit.biz