I Know You Hate Keeping Time Sheets, but Even in the New Era You Must Still Do So and Here’s Why

Posted on December 20, 2011 by kowalskiandassociates

Time sheets – the bane of lawyers everywhere – you can’t live with them and you can’t live without them.

The endless debate continues as to whether in this era of AFA’s, fixed fees and the like, lawyers and law firm managers continue to debate the question of whether we still need to be bound to the ball and chain of time sheets. The answer is a resounding “Yes!”

There are numerous reasons: First, in any fee application in which a court approves fee awards, courts require detailed and contemporaneous time sheets.

Second, The Model Code of Professional Responsibility does not explicitly recite AFA’s as a permissible method by which to charge a fee. The hourly rate remains the Model Code’s gold standard.

Next, some courts have actually held that fixed fees are unethical and unenforceable and the only method to recover on a quantum meruit basis is through time based billing.

With project management becoming such a key fixture in the profession, contemporaneous recording of time is key to the success of project managers.

And recording time spent on all firm-related matters is key to management; assuring that time-keepers are on task and then, at year end, assessments of the contributions made by all members of the law firm can only be objectively made by having a full and complete record of every lawyer’s contribution at every level.

Filed under: Alternative fee Arrangements, Hiring and training lawyers, Law firm associate efficiency, Law firm associates, Law firm financial reporting, Law firm management, Law firm management strategies, law firm project management, Law Firm Risk Management, lawyer training, Legal Education, Legal Project management, Legaltech, Navigating the Perfect Storm: Recruiting, Project management for law firms, Retaining and Training Lawyers in the Coming Decade, Strategic law firm planning, The Law Firm of the Twenty-first Century | Tagged: , , , , , , | 14 Comments »

The Key for Law Firm Growth and Survival for the Coming Years is Contingent on Mastering Collaboration

Posted on December 8, 2011 by kowalskiandassociates

As we face a challenging 2012, it is obvious that among the critical tools each law firm must master is the art of collaboration. For law firms to survive what will be a bumpy road, collaboration and full engagement at every level is critical. Just like “plastics” was the magic word in 1967 and .com in the early 90’s, collaboration is the magic word for the months to come.

Clients continue to place pressure on outside counsel on pricing and efficiency. More work is done in house and by alternate vendors. More work is outsourced and sent offshore. More work is downsourced.

The key to being relevant and prosperous is to develop a culture of collaboration and engagement.

This collaboration must be vertical, lateral and horizontal. Full collaboration and engagement with the client is essential. Full collaboration with alternate vendors and other law firms representing the same client is equally critical.

At the same time, the law firm partnership itself must be fully engaged in a fully collaborative mode.

Thus, we present the essential primer of collaboration on the new playing field in which the legal profession finds itself.

Learn the art of collaboration and thrive. Ignore it at your peril.

Filed under: Alternative fee Arrangements, Downsourcing legal services, Electronic Document Discovery, Hiring and training lawyers, Lateral law firm partner, Lateral law firm partner movement, Lateral Partner, Law firm associate efficiency, Law firm management, Law firm management strategies, law firm project management, Law Firm Risk Management, lawyer training, Legal Project management, Legal Project Outsourcing, Navigating the Perfect Storm: Recruiting, Outsourcing legal services, Project management for law firms, Retaining and Training Lawyers in the Coming Decade, The Law Firm of the Twenty-first Century | Tagged: , , , , | 14 Comments »

The End of Alternative Fee Arrangements?

Posted on November 30, 2011 by kowalskiandassociates

Are alternative fee arrangements a relic of the past? After being on the scene for barely two years are they bound for the trash heap?

The answer is resoundingly no. Rather, the market is requiring smarter and more collaborative fee arrangements. The market is also saying that meeting the need for continued reductions in the legal spend is not the sole province of AFA’s.

With the continued reduction in the legal spend, lawyers need to figure out how to deliver more service, higher quality at lower fee structures. Lawyers need to create new efficiencies; they need to learn to work differently. They need to learn to work more collaboratively.

Increasing amounts of work are being sent offshore and law firms as well as general counsel need to develop collaborative working arrangements with these LPO’s.

But, the real key to survival is ongoing collaboration and communication between counsel and client. Lawyers can’t just wait for the client to provide feedback. Most of the time you just won’t get any. A lawyer’s fatal mistake may just be assume that getting a new case from a client is positive and productive feedback. If you do that, the flow of new work may trickle to a halt and you won’t even realize that you have been given negative feedback, until it’s way too late.

Five significant firms failed in 2011. More will crumble next year. As Smokey the Bear says, “only you can prevent a forest fire.”

Filed under: Alternative fee Arrangements, Crisis management, Downsourcing legal services, Law firm associate efficiency, Law Firm Crisis Management, Law firm management, Law firm management strategies, Law firm marketing, law firm project management, Law Firm Risk Management, lawyer training, Legal Project Outsourcing, Navigating the Perfect Storm: Recruiting, Outsourcing legal services, Project management for law firms, Retaining and Training Lawyers in the Coming Decade, Strategic law firm planning, The Law Firm of the Twenty-first Century | Tagged: , , , , | 8 Comments »

It Shouldn’t Suck to be an Associate at a Law Firm

Posted on April 18, 2011 by kowalskiandassociates

Law firms inexplicably eat their young.

Attrition of law firm associates has always been a blight on the profession. This attrition is financially painful as associates leave BigLaw in droves during their third or fourth years, at precisely the point when these associates become significant profit centers at the law firm. Attrition at these levels often reach the 60 – 80% level. The financial pain to law firms is compounded by the fact that law firms have by that point spent upwards of $500,000 to recruit and train each associate. In the current market, with clients by and large refusing to pay for the training of young associates, the financial burden to law firms caused by this attrition is further exacerbated.

But this financial drain is all too often self inflicted by law firms. Incivility visited on young associates in the form of arbitrary deadlines, sleep deprivation prompted by minimum hourly billing requirements as well as bonuses predicated upon hours billed is, well, virtually a form of torture. The result is a strong likelihood of malpractice and ultimately, associates clambering for the escape hatches.

Retention of associates and avoidance of expensive attrition can be achieved with having law firms take a more humane approach in dealing with associates. Substantively productive mentoring programs, keeping associates informed about matters affecting the firm and associates’ careers as well as minding and fostering a reasonable work/life balance enhances associates’ productivity. Most significantly, improving the quality of associates’ working lives costs virtually nothing in hard dollars, yet adds immeasurably to a law firm’s bottom line.

The answer is assuredly not throwing money at associates, either in the form of large salaries or year end or spring bonuses. The real answer is to create an environment in which associates don’t go home daily thinking “take this job and shove it. “

Filed under: Alternative fee Arrangements, Hiring and training lawyers, Law firm associate efficiency, Law firm associates, Law firm management, Law firm management strategies, Law Firm Risk Management, lawyer training, Legal Education, Legal Project management, Navigating the Perfect Storm: Recruiting, Project management for law firms, Retaining and Training Lawyers in the Coming Decade, Strategic law firm planning, The Law Firm of the Twenty-first Century, Value Billing | Tagged: , , , , | 3 Comments »

At Last! A Metric to Measure the Value in Value Billing

Posted on April 6, 2011 by kowalskiandassociates

The attack on the citadel of hourly billing continues unabated. Alternative fee arrangements and value billing are rapidly taking the place of selling hours by the bush-full. But, how do you measure the value in value billing? We certainly know that value is ultimately in the eye of the beholder; after all it is the consumer of legal services which ultimately decides the value of the services rendered and pricing discussions always center on the client’s perceived value. But, what we still lack is a yardstick by which lawyers’ efficiency can be assessed and compared to that of their peers. Well, I think I may have a solution to that problem.

Filed under: Alternative fee Arrangements, Hiring and training lawyers, Law firm associate efficiency, Law firm associates, Law firm financial reporting, Law firm management, Law firm management strategies, law firm project management, lawyer training, Legal Project management, Project management for law firms, The Law Firm of the Twenty-first Century, Value Billing | Tagged: , , , | 3 Comments »

Alternative Fee Arrangements — A Primer (via Kowalski & Associates Blog)

Posted on March 24, 2011 by kowalskiandassociates

Alternative fee arrangements and value billing came of age in 2010 and may soon largely supplant hourly billing models. Recent polls indicate that 55% of corporate clients require their outside counsel to provide alternative fee arrangements or similar value billing arrangements and that over 90% of American law firms offer some forms of AFA’s. Journalist [...]

Filed under: Alternative fee Arrangements, Hiring and training lawyers, Law firm associate efficiency, Law firm associates, Law firm financial reporting, Law firm management, Law firm management strategies, Law firm marketing, Uncategorized | Tagged: , , , | 6 Comments »

Alternative Fee Arrangements, Value Billing and Metrics in a Dwindling Marketplace for Legal Services: Are We All Marching to the Beat of the Same Drummer?

Posted on December 7, 2010 by kowalskiandassociates

As demand for legal services continues to dwindle, law firms are struggling to maintain market share, even as clients seem to be demanding increased value billing and alternative fee arrangements. Law firms are responding with increased value billing proposals and creative alternative fee arrangements. Yet, confusion abounds: The metrics for measuring the value of AFA’s provide virtually no guidance. Other than understanding the obvious, namely, that clients are demanding lower legal bills, law firms remain uncertain as to how they can best provide value billing and meaningful alternative fee arrangements. Too much confusion abounds at law firms as firms develop sophisticated AFA programs and clients too often seem indifferent; instead, clients seem too often just want to know what discounts are being offered. A principal issue is that clients want real value, while law firms seek every avenue to offer value. But, sometimes, the value added does not immediately translate in to revenue.

For lawyers and law firms to succeed in this market, they must establish themselves as marketplaces for value. The legal work and fees will follow.

Filed under: Alternative fee Arrangements, Law firm blogging, Law firm financial reporting, Law firm management, Law firm management strategies, Law firm marketing, law firm project management, Legal Project management, Project management for law firms, Strategic law firm planning | Tagged: , , , , , , , | 3 Comments »

Enhancing Law Firm Profitability During this Period of Economic Upheavel; Law Firm Subsidiaries and More

Posted on October 1, 2010 by kowalskiandassociates

These turbulent times demand novel approaches in order to enhance law firm profitability. Some approaches include establsihing seperate law firm subsidiaries and taking advantage of new business models. At the same time lawyer secondments offer attractive opportunities.

Filed under: Alternative fee Arrangements, Hiring and training lawyers, Law firm associates, Law firm management, Law firm management strategies, Law firm marketing, lawyer training, Strategic law firm planning | Tagged: , , , , , | 9 Comments »

Are 100 Page Responses by Law Firms to Client RFP’s Really Efficient or Necessary? Some Radical and Revolutionary Changes are Upon Us

Posted on September 23, 2010 by kowalskiandassociates

With so many clients retaining law firms through the lens of purchasing agents, RFP’s have increasingly been required prior to a law firm being engaged. Many law firms, ground down by the cumbersome submission of RFP’s. Yet the combination of Alternative Fee Arrangements, commodotization of so many aspects of legal matters and stiff competition among law firms for business have nonetheless continued to grin and bear it, often frustrated with the ROI. There may well be radical changes ahead in cnnection with law firm RFP’s.

Filed under: Alternative fee Arrangements, Internet based marketing, Law firm blogging, Law Firm Internet Based Marketing, Law firm management strategies, Law firm marketing, Marketing the Law Firm on the Internet | Tagged: , , , , , , | 9 Comments »

Associate “Job Satisfaction:” Why Law Firms should care

Posted on September 13, 2010 by kowalskiandassociates

Recent surveys report that associate satisfaction is at its lowest rate since 2004. Are these significant statistics? The fact is that despite the headlines, associate job satisfaction is not at crisis levels. However, associate disaffection does adversely affect a law firm’s bottom line and dissatisfied associates should not simply be dismissed as “cranky” or whining. The issue of associate job satisfaction shoud be addressed by management and a law firm’s partnership, if only to improve profitability. The cure: largely candid open communications and a measure of management transparency.

Filed under: Alternative fee Arrangements, Hiring and training lawyers, Lateral law firm partner, Lateral law firm partner movement, Lateral Partner, Law firm associate efficiency, Law firm associates, Law firm management, Law firm management strategies, Law firm partner layoffs, law firm project management, lawyer training, Legal Education, Legal Project management, Navigating the Perfect Storm: Recruiting, Retaining and Training Lawyers in the Coming Decade, Strategic law firm planning, The Law Firm of the Twenty-first Century | Tagged: , , , , , , , , , , , , , | 9 Comments »

Next Page »
Follow

Get every new post delivered to your Inbox.

Join 721 other followers