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The 3 Things in Law Firms that are Broken

6/11/2013

1 Comment

 
Despite several years of blogging and talking about the need for change and reform within the majority of law firms, you would be amazed…actually let me re-phrase that…you probably wouldn’t be amazed... at the resistance, condescension and sometimes downright vitriol that I get for simply pointing it out.  It’s nearly all delivered verbally. (Never in email or blog comments…lawyers are not that daft!)

So here is a distillation of the 3 major things that are wrong with the majority law firms today (and I have to thank Mark Bradley from Marque solicitors for verbalising this so well in his recent talk)

1.        They still charge for their services by time, not value.

2.       They think they are special and behave and act accordingly.

3.       They structure their business in a way that is directly opposite to the best interests of their customers (Clients if you’re an older lawyer reading this!) and that is therefore, in direct contract to their own interest.


Firms that still do that are the reason why the old legal market business model is in terminal decline.

So allow me to elaborate further.

Time: The business of law today is in conflict with market forces.  There is much more supply than demand.  There are thousands of lawyers and hundreds of law firms and therefore, you have thousands of competitors. So using basic Marketing 101, the simple way to stand out from your competitors is to be different.  Differentiate and you will start to capture more business. 

A recent survey of in-house counsels showed that over 90% don’t like time costing. Anecdotally, I can tell you that a similar amount of business and private client customers don’t like that method of charging either, but a lot of them think that there is no alternative and that is because the law firms don’t offer an alternative.  If you want an alternative, check out this blog article of  July 2010.

But, the law firm crowd nearly all behave in the same way.

Special:  A lawyers attitude in what is a service industry, seems destined to alienate their customers.  This attitude is demonstrated in the culture of their firms and can especially be seen in the relationship they have with their non-legal staff (most of whom are unhappy, but hey, they need a job, so will put up with what can only be described as Dickensian work practices. “No pay rise again this year Mr Cratchit!)

What is wrong with being happy at work and not just when you leave? It’s what makes you human and customers will sense that.

Structure: Buried deep inside every law firm is its purpose and it lies in the way it does business.

Law firms have a vertical structure.  Each person’s value is measured only by numbers, usually the chargeable hour (Billable hours for the US cousins reading this).

So success or failure comes down to 6 minute increments and everyone’s job is to deliver these hours.

This leads to intense internal competition which, over the past few years has become a real struggle and in any competition, as Darwin so eloquently put, it’s a survival of the fittest. The “winners” are the ones that bill the most hours. That means in an “up” market when there’s good times, the corporate or commercial  and residential property lawyers bill the most and in bad times, it’s the litigation department that become top dogs.

There are two fatal flaws with this;

1. This system has nothing to do with the interests of the customer (client). In fact the focus is on anything but their interests

and

2. Working in an environment where your work colleagues are also your main competitors is not a recipe for human happiness; in fact quite the opposite. It’s very stressful.  It will eat away at your soul - in 6 minute increments. And this is borne out by some facts; mental illness amongst lawyers is 4x the general population.

Performance should not be measured by these numbers.  The only incentive should be the happiness of staff and customers.

I’ve heard a lot of lawyers who berate me and tell me that the law can and never should be commoditised.  I have news for you, it already is.  It is a business factory where the workers churn out a product called time.

Lawyers on this treadmill have a working life that in the most part is devoid of meaning and this creates an emotional void.  They are climbing a pole to the top of a big pile of nothing. They may have money but what’s the use in that if you are sacrificing daily happiness to get it. Why not get it and be happy at the same time.  It can be done, it is being done and the more law firms that can do it in the right way, the better is it for everyone.

A business that can tell you what it does and why it does it is a very nice place to be.

I strongly suggest more of you strive for it, for your employees sake, your customers sake and your own health…before it’s too late.





1 Comment

What if...?

1/5/2013

0 Comments

 
Picture
Working with Law Firms is great fun.  

Once they finally decide to implement a development 
programme a strange thing occurs.

The strangeness comes not from the Firm itself but from individuals and the sheer number of lawyers who finally open up and admit that they never really wanted to be lawyers in the first place.


There’s a crucial point in the timing of these “confessions.”  It’s usually after the initial consultation has completed and the first step of the programme begins when it finally sinks in with some that the business of law needs to be delivered in a new way and that “change is on the horizon”.

Now no one except a wet baby likes change.  And the thought of “change” and all that it may bring seems to initiate an internal conversation.

The internal conversation may go something like this: “oh no, we’re going to have to change the way we do things around here.  I can see that now and it looks as if I may have to work harder/smarter/more efficiently.   



I’m already billing as many hours as I can I can’t see how to squeeze more time out of this, already squeezed, life of mine.  Heck, I never really wanted to be a lawyer in the first place.  My dad/Mum/brother [add to the list and take your pick] made me do it.  


I always wanted to work outdoors/be a lifeguard/start my own business [again, add to the list and take your pick]. Well, if I’m going to have to change I may as well bite the bullet and start my own business/learn carpentry/ hairdressing/to be a chef [etc] now.  


This Firm are planning to merge/take over/be taken over and there will be upheaval anyway.  I may as well go through all that for my own benefit. That’s it, I’ve had enough, I’m leaving.  It’s  now or never.”


Of course there will be variations on that theme, but you probably get the gist.

I’ve thought about what to do to help these people in their transformation and short of encouragement to do what they love (as you’ll never work a day in your life if you do) I always wanted to be able to make a more concrete suggestion or point to some great insight that can help.

Recently when reading a new book (Just out 27 April 2013) calledThe Inside Out Revolution by Michael Neil, I came across the following;


“Imagine a man comes to you for coaching. He’s about to turn 30 and he’s decided that it’s time to “grow up” and take over the family carpentry business.  He wants you to share innovative marketing techniques, work with him on how to make better personnel decisions and coach him to incorporate technology to bring the business into at least the new millennium.”

"But even as you’re speaking together, something’s bothering you about the conversation. He’s saying all the right things and seems willing to do all the right things and yet something still feels out of alignment. 



Following your intuition, you go back and review the client intake form he filled out when he first came to you and to your surprise you see that his name is Jesus and he’s from a small town in the Galilean region of Israel called Nazareth."

Here’s the question:

Do you really want to work with him on becoming more successful in his carpentry business?

What if every man, woman and child you meet has the seeds within them to become who they truly are?

What if that includes you?



What if?......


0 Comments

How Alcoholics Anonymous Could Save Your Law Firm

14/2/2013

3 Comments

 
Richard is typical of the law firm partners I talk to. “I can see that change is vital and I really want the firm to move forward, but following a partners meeting where we discussed and even agreed on certain changes, everything just carries on as before!”

Law Firms like Richards are not uncommon. But unless they do something and make some changes, they will go the way of Cobbetts, Wolstenholmes, Halliwells or Fox Hayes


There is no such thing as a bad law firm…only badly managed law firms.

Here is something else badly managed firms have in common;

Staff are treated like cogs in a machine rather than people.

Employees have no real sense of control.

Mostly, they are not big happy families as they would like you to think, but they are made up of silos where partners compete for power and credit and set their associates off against each other in subtle ways designed to undermine their rivals and make their own positions appear superior.

Don’t think that’s true?

Let me ask you a question.  Do you have a company handbook?  You would have been given it on the day you started and it would include all the administrative details that you need about internal phone numbers, staff holidays, pension plans and so on.

But what would you tell someone new about how things really work in the firm? One thing’s for sure is that it wouldn’t be anything in the handbook.  In reality it would be about how to manipulate bureaucracy to get things done.  Who has clout. What secretaries you can go to and what ones to avoid. Probably with advice on all the informal power struggles and advice on relationships to harness and ones to avoid.  In short it will be how to make things happen by calculating a route through the emotions of the people who work there.

And that’s why things won’t change at the firm. Nothing will change until the individual emotions of the top people in the firm change.

This was first identified in a book published in 1982 called An Evolutionary Theory of Economic Change by Professors Richard Nelson and Sydney Winters.

You won’t have to read the book because their central conclusion was that “much of firm behaviour is best understood as a reflection of general habits or routines…coming from the firm’s past”

The crucial word there is “routines”.  These routines or “ways that things have always been done” create a truce between the silos or warring individuals and allow them to carry on a day-to-day working existence that doesn’t kill the firm but allows it to plod on but the price is that it totally stifles innovation and change.

Another way to put it would be to say that underperforming firms are riddled with bad habits.

Now to the firm and the people working there it might not seem like there are any bad habits.  In the same way that an alcoholic won’t admit to a drink habit being a problem. “I drink, I enjoy it…what’s the problem?”

The problems for alcoholics are well known by everyone except the alcoholic.

Once an alcoholic accepts that there is a problem, he is on the way to recovery.

How does AA help alcoholics?  By turning bad habits into good habits.  They don’t try to take away the urge to drink, they don’t try to change the person, that doesn’t work. They simply replace a bad habit with a good habit one day and one small step at a time. And they use a sponsor and support group system to do it.

All that badly performing firms need to do is replace their badly performing systems with systems that work more effectively. Preferably with a qualified sponsor a support system, one small step at a  time.

There are lots out there, such as Shirlaws, Solicitors Marketing Success, Remarkable Law to name but 3.


And a great book for you to read would be: "The Power of Habit" by Charles Duhigg
3 Comments

Time is more Precious than Billing by the Hour

12/3/2012

2 Comments

 
I’ve recently been reading Simon Sinek’s book “Start with Why” and the theme running through it is that nowadays, in 2012, in business it doesn’t matter what you do, it matters why you do it.

So let me ask you a question?

Why do you go to work?


When I ask this question…and I’ve been asking lots of people in the last month including a seminar of 56 small business owners four days ago….most people think the answer is simple. You go to work to earn money to pay bills and provide for your family.

Simple answer, but not true.

You go to work because that’s what’s expected of you.

Everyone you know expects you to go to work. Society expects it. Your family expect it.  Everyone knows that you get a job and go to work.  Which, in theory sounds great?  You work hard at school to get into University.  You work hard to get a degree, then a diploma place then a traineeship.  You land a good job, keep your head down, get promotion, climb the ladder to partnership and live happily ever after.

Well, that used to be the theory.

The reality in 2012 means working longer and longer hours just to make ends meet, there’s too much month left at the end of the money;  not only could you begin to get blighted financially, but your mind and spirit have started to go as well and you exist to work.

The unfortunate thing is that this is so ingrained in us as a way to exist, that if things start to go wrong – as it’s starting to for many people working in law firms – we start to blame ourselves.  We blame ourselves for our inadequacies and try to make amends by working longer, harder and faster.  And people would rather suffer a heart attack, sleepless nights and unnecessary stress than stop working, because work is what we do.

Others I know are running up massive debts so that they can maintain a standard of living that their salaries cannot sustain.

Is this the way it should be?  If this way of living is not delivering the goods financially and spiritually then it could be time to consider an alternative way of living. 

Rather than simply “earning a living” why not “create a life of quality”?

If society pushes you into “going to work” as the only game in town; why play a game with rules where you cannot win?


One of the things that I think modern lawyers should abandon with immediate effect is hourly billing.  Customers hate it, legal employees spend too much time working out who to charge for what and senior partners have their egos boosted by declaring how much per hour they charge.

But imagine for a moment that you could buy time rather than charge for it?  How much would you be willing to pay?

Let’s imagine you are on your death bed about to breathe your last and an angel gives you a chance to buy some extra time.

How much would you pay to turn the clock back to when your children were young so that you could spend a few extra hours playing with them?

How much would you pay to go back in time so that you could tell your mother, father, partner, brother, sister or friends just how much you loved them, at times in their lives when they needed to hear you say those words the most.

How much would you be willing to pay to be ten years old again playing in the late evening warmth of a summers day?

And what would you pay to have your time over again to pursue that dream that has eluded you your entire life?

No, time is not money because you can’t put a value on time and those who try to value their time only in terms of money will always undersell it.

My time, your time, everyone’s time is precious and priceless.  Once that hour or day has gone it’s gone forever and all the money in the world can’t change that.

2 Comments

Perceived Expertise

5/5/2011

2 Comments

 
If you've ever read Malcolm Gladwell's book "Blink" then this blog article might strike a chord with you.

Blink is essentially about thinking without thinking.  An expert can look at a statue and tell if it's a fake or not.  He doesn't know why, he just feels it; even if some other "expert" has tested the statue through carbon dating or using some other method and found it to be genuine, the "real expert  just knows"...it's an intuitive thing.

There's another book out right now called "Moonwalking with Einstein" by Joshua Foer  subtitled, "The Art and Science of Remembering Everything" which is a book about Memory and how to train your memory.

The book suggests that we all have the capacity to memorise and remember incredibly complex things such as strings of random numbers and mixed decks of playing cards.

All we need to know is the technique.

Memorising is something that all lawyers have had to do.  In fact anyone who has taken an exam has to memorise all the appropriate information.  Some teachers even say, "You can forget about it all afterwards, just as long as you pass the exam!"

In fact this was said to me by one of my law tutors.  He also said that the more cases you can put into an exam question the better.

About the time of my second year law exams ( I scraped through first year!) I was determined to do better and I bough a book about memory techniques.

In a nutshell, the system was "Imagination, destination"  The idea being that you use your imagination to mentally enhance images and you set each image at a geographical spot you know well. 

So for example if you want to memorise a list of 10 or 20 or 30 shopping items, mentally, you start off in your house, lets say the kitchen with item 1 - Cornflakes. 
Instead of a static image you imagine it raining cornflakes all over you in the kitchen, they crunch under your feet.  Item 2 - toilet roll in the hallway.  There's a giant toilet roll blocking your way and flapping in the wind and so on through the other rooms in your house and out the front door and down the street.

I used this technique to remember legal cases.  For example (without looking up my notes) I remember lots of cases from Consumer  Law such as Beale v Taylor 1967 and the case of a cut and shut Triumph Herald car.  I used a local shopping centre (Consumer Law after all) and in the car park there is a Triumph Herald car broken in two with Ian Beale from Eastenders being measured for a suit by a short man with a measuring tape in his hand and round his neck - a taylor.

Stupid, but it worked.

In each exam after I learned the technique I wrote down about 35 cases for each question.

Needless to say I passed with distinction and was wheeled out by the tutor to explain to the rest who I did it.

Anyway enough of memory techniques, what's this got to do with the title of the blog?

Well, after only a few hours training, I was perceived as an expert.  Some fellow students said it was genius to be able to remember all these cases.

Wrong in both cases.

It was all to do with technique. A quickly learned skill.

However, using the same technique or skill over time would propel anyone into expert status...and in fact in law and in practising law, most customers (or clients as some prefer)  perceive lawyers as experts...not just in the law, but in saving their business or marriage or in some cases their very liberty.

Becoming an expert comes from experience. But it depends what the experience is in.

Doing lots of years of law, widely recognised as 10 years or more, matches the definition of an expert as  "...a person with extensive knowledge or ability in a given subject."

Someone with perceived expertise can then look at a situation, and like the character in the book "Blink" , can almost instantly see the answer in a way that is difficult to put into words.

As Frome says in his book, "Experts, home in on the information that matters most, and have an almost automatic sense of what to do with it."

A lot of older lawyers and partners that I have met have this in abundance when it comes to legal matters, but fall tragically short when it comes to looking after their staff or running their legal business!

So my question to the lawyers amongst you is; bearing all this in mind "Why then do you refuse help from entrepreneurs or business consultants when it comes to running and improving your legal business?"

Entrepreneurs or business consultants with suitable years of expertise in running and operating businesses have the expertise to home in on the problems, they also have the techniques to improve the bottom line.  In many cases they have the marketing skills necessary to propel the business forward, yet many partners don't recognise these "skills" and somehow feel they can do it themselves.

If an entrepreneur wanted to prepare his own lease or shareholders agreement there would be an obvious "raising of eyebrows" or shaking of heads from the lawyers.

Yet on a daily basis, lawyers and partners are doing their own marketing, setting themselves up as HR experts and forming their own strategies with nothing but their own "skills" to see them through.

And they wonder why turnover is down and they've not made a profit....again.

2 Comments

Perceived Expertise

5/5/2011

0 Comments

 
If you've ever read Malcolm Gladwell's book "Blink" then this blog article might strike a chord with you.

Blink is essentially about thinking without thinking.  An expert can look at a statue and tell if it's a fake or not.  He doesn't know why, he just feels it; even if some other "expert" has tested the statue through carbon dating or using some other method and found it to be genuine, the "real expert  just knows"...it's an intuitive thing.

There's another book out right now called "Moonwalking with Einstein" by Joshua Foer  subtitled, "The Art and Science of Remembering Everything" which is a book about Memory and how to train your memory.

The book suggests that we all have the capacity to memorise and remember incredibly complex things such as strings of random numbers and mixed decks of playing cards.

All we need to know is the technique.

Memorising is something that all lawyers have had to do.  In fact anyone who has taken an exam has to memorise all the appropriate information.  Some teachers even say, "You can forget about it all afterwards, just as long as you pass the exam!"

In fact this was said to me by one of my law tutors.  He also said that the more cases you can put into an exam question the better.

About the time of my second year law exams ( I scraped through first year!) I was determined to do better and I bough a book about memory techniques.

In a nutshell, the system was "Imagination, destination"  The idea being that you use your imagination to mentally enhance images and you set each image at a geographical spot you know well. 

So for example if you want to memorise a list of 10 or 20 or 30 shopping items, mentally, you start off in your house, lets say the kitchen with item 1 - Cornflakes. 
Instead of a static image you imagine it raining cornflakes all over you in the kitchen, they crunch under your feet.  Item 2 - toilet roll in the hallway.  There's a giant toilet roll blocking your way and flapping in the wind and so on through the other rooms in your house and out the front door and down the street.

I used this technique to remember legal cases.  For example (without looking up my notes) I remember lots of cases from Consumer  Law such as Beale v Taylor 1961 and the case of a cut and shut Triumph Herald car.  I used a local shopping centre (Consumer Law after all) and in the car park there is a Triumph Herald car broken in two with Ian Beale from Eastenders being measured for a suit by a short man with a measuring tape in his hand and round his neck - a taylor.

Stupid, but it worked.

In each exam after I learned the technique I wrote down about 35 cases for each question.

Needless to say I passed with distinction and was wheeled out by the tutor to explain to the rest who I did it.

Anyway enough of memory techniques, what's this got to do with the title of the blog?

Well, after only a few hours training, I was perceived as an expert.  Some fellow students said it was genius to be able to remember all these cases.

Wrong in both cases.

It was all to do with technique. A quickly learned skill.

However, using the same technique or skill over time would propel anyone into expert status...and in fact in law and in practising law, most customers (or clients as some prefer)  perceive lawyers as experts...not just in the law, but in saving their business or marriage or in some cases their very liberty.

Becoming an expert comes from experience. But it depends what the experience is in.

Doing lots of years of law, widely recognised as 10 years or more, matches the definition of an expert as  "...a person with extensive knowledge or ability in a given subject."

Someone with perceived expertise can then look at a situation, and like the character in the book "Blink" , can almost instantly see the answer in a way that is difficult to put into words.

As Frome says in his book, "Experts, home in on the information that matters most, and have an almost automatic sense of what to do with it."

A lot of older lawyers and partners that I have met have this in abundance when it comes to legal matters, but fall tragically short when it comes to looking after their staff or running their legal business!

So my question to the lawyers amongst you is; bearing all this in mind "Why then do you refuse help from entrepreneurs or business consultants when it comes to running and improving your legal business?"

Entrepreneurs or business consultants with suitable years of expertise in running and operating businesses have the expertise to home in on the problems, they also have the techniques to improve the bottom line.  In many cases they have the marketing skills necessary to propel the business forward, yet many partners don't recognise these "skills" and somehow feel they can do it themselves.

If an entrepreneur wanted to prepare his own lease or shareholders agreement there would be an obvious "raising of eyebrows" or shaking of heads from the lawyers.

Yet on a daily basis, lawyers and partners are doing their own marketing, setting themselves up as HR experts and forming their own strategies with nothing but their own "skills" to see them through.

And they wonder why turnover is down and they've not made a profit....again.

0 Comments

Change to Survive

3/3/2010

0 Comments

 
I've had another article published in The Firm magazine.

Basically, it states that no matter what happens in the legal sector, one thing that you can be sure of is change is on the way; if your Firm isn't ready, then as an individual, you should get ready.

How do you do that?

There are some suggestions in the article.

http://www.firmmagazine.com/features/690/Change_to_survive.html
0 Comments

    Author

    After many years paying lawyers,I became one in 2005 Just in time for the largest upheaval in the law since records began. Brilliant. Exiting times ahead.

    Disclaimer.  The thoughts, ideas and comments on this Blawg ("Blawg - a legal Blog) are my own and not to be confused (unless otherwise stated) with anyone else and certainly not of anyone in the Firm where I used to work and they are not the views of the firm where I used to work.

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