Resources

Red Cave Law Firm Consulting's Technology Blog Series (from CEO Jared D. Correia, Esq.)

2023 Quarter 2

 

June 26, 2023: Eye of the Storm: How Will Alternative Business Structures Affect Traditional Law Firms

Arizona has recently stricken the rule barring non-lawyer ownership in law firms from its professional ethics code.  Utah is creating a sandbox environment to explore the same option.  Mixed ownership law firms are called ‘alternative business structures’, and they already exist in other parts of the world, most notably the United Kingdom.  It’s only a matter of time before the traditional lawyer monopoly is broken.

So, if you think it’s hard to compete with the law firm across town, try working against Walmart.

Lawyers have been exceptionally late adopters of both technology and new ideas.  But, the chance to continue in that mode of operation has passed. 

This is the eye of the storm.  It’s your last chance to build a modern practice, before the Walton family comes for you.

Attorneys are smart and resilient, and will be able to carve out a niche in this brave new world.  But, that’s not gonna happen if they refuse to adapt.

June 22, 2023: Wayfinder: What’s the Next Phase of Your Law Firm’s Growth?

Despite the way that attorneys often act, the law firm timeline is not a direct one, from open to close.  There are bumps along the way, and also phases.  In modern video games, wayfinder beacons guide players to a final destination.  Each segment makes up a whole journey.  Law firms operate in the same way.  (As does the movie ‘Moana’.)

And, by the way, your law firm is always moving forward; it has to be, it’s like a shark – because, the opposite of growth, is stagnation.  Or, as Red from ‘The Shawshank Redemption’ so eloquently puts it: ‘Get busy living, or get busy dying’.

So, don’t think of managing your law firm as a long, slow death march.  Instead, be mindful; focus on managing the effectiveness of each phase.

Of course, to do that, you’d have to know what phase you’re in.  Maybe you’re hiring for the first time, and need to maximize that relationship?  Maybe you’re just starting to build out KPIs to ratchet up your efficiency?  Maybe you are winding down, and looking for an acquisition partner?  No matter what phase of growth your law firms is at, the more you can focus on maximizing current objectives, the more money you’ll make, the happier you’ll be.

Live in the moment.

June 12, 2023: The Nice and Naughty List: How to Pick New Software

Selecting new law firm software can be a daunting prospect.  There are so many options, that attorneys are often waylaid by a paralysis of analysis, and then don’t end up making any positive changes at all.  This is why a lot of law firms end up relying on old and obsolete technologies, rather than updating to modern tools.  Once again, inertia becomes the single worst enemy of law firms.

But, when lawyers do end up selecting specific softwares, they often do so in a hasty manner, just to ensure the painful process ends quickly.  In that case, the selected software is often not a good fit for the law firm, so that attorneys and staff end up wasting time building inefficient workarounds, that dress up the problem, and make the software just a little more palatable for the law firm’s use case.

Neither option is particularly compelling.

And, the truth of the matter is that the process of selecting the right software for a law firm is not an easy one, and it takes more effort than most attorneys have traditionally been willing to put in.

But, there’s a simple tactic you can use, to make better software choices, and to make sure that your software’s not using you.  The strategy is as follows: Make two lists.  One list is the ‘nice list’ = software features that you really want in a particular category, e.g. – law practice management software.  The other list is the ‘naughty list’ = things you hate about your current software application.  So, when you’re looking for a new tool, see if it offers the required features (from the nice list), and find out whether it fixes the things you hate about your old software (from the naughty list).  That way (and, even if you do nothing else), you’ll stand a much better chance of picking software that will actually fit your law firm, versus software that’s gonna act like a square peg, that you’ll need to ram into a round hole.

June 9, 2023: Ain’t No Valley Low Enough: You Almost Can’t Niche Down Enough

Niche businesses, including niche law practices, are so effective, in large part because those business types reduce competition.  That logic is probably obvious: any time you sell to a smaller interest group, you sell to fewer people – but, it’s really powerful in application.

To new business owners, or general practitioners, that can sound dangerous = it places too significant a limitation on accessing potential clients.  You see, there’s this notion that most entrepreneurs latch onto, at first, which says that a wider pool means access to more potential clients.  But, a bigger group of potential clients can also mean more expenses, more competitors and less focused messaging.  In the end, you can’t reach and convert all the clients; so, why not reduce your focus, and sharpen your branding, thereby giving yourself a better chance at converting from a targeted group?  And, as you develop a reputation in a given space, it will become easier over time to generate business; that’s especially true if you own the first law firm to start up in a particular practice niche, and gain a ‘first mover’ advantage.

And, if a general niche (like family law) works to reduce competition, a more specific niche (like estate planning), even further reduces competition.  Take that to its logical extreme, and the deeper your niche, the less competition you have.  Estate planning not a deep enough niche for you?  Try drafting only special needs trusts for children.  Opt for student loan law, within education law.  Choose a loan workouts specialty within a real estate practice. 

It’s been said that niches lead to riches; and it’s true.  But, the deeper you drill, the more likely you’ll be to strike oil.

And, while it will take longer for a niche practice to develop, it’s worth the wait.

May 31, 2023: The Big Picture: Four Ways to Up Your Video Conference Game

As much as you might dread the next Zoom meeting.  And, the one after that.  And, the next one.  And, the one after that one . . . Video conferencing is here to stay.

But, being at home, it’s easy to get blasé about how you treat those video conferences.  It’s no sweat to keep the sweatpants on, to half-comb your hair, to sneak an Oreo.  Of course, you’d never do that at an in-person event.  And, if you’re a lawyer who’s feeling like your in-person presence far outstrips the effectiveness of your online presence, there are four simple things you can do to up your game.

-You can start by checking in on the quality of your webcam.  Some of the webcams that are built into laptops or desktops are less than stellar.  You can, however, ramp up to a crystal-clear image if you buy a better webcam that can be mounted on your device.  There are HD options available, with lighting built in, that can track your movements.  Start by checking for options on Amazon.

-Sound is essential to a good video conference experience, so consider buying a microphone, to increase your fidelity.  Shure and Blue make great mics, that are also cost effective.

-And, if you want to take the extra step to eliminate background noise, Krisp is an inexpensive app built for the purpose.

-Lastly, you might consider a video conference background.  (Not a cat filter.)  Even if you’re not trying to hide the mess in your office, a virtual background can be useful for branding.  There are default backgrounds in video conference tools, but you could opt to have one professionally designed featuring your logo, which can be an effective marketing tactic.

These are relatively simple, inexpensive steps any lawyer could take, to look better online.

May 24, 2023: Trust the Process: Systemization Is What Separate Modern Law Firms

A lot of law firms know they’re inefficient, but don’t know why.  (I know, it sounds like a country song.)

But, the reason is pretty simple: it’s because those law firms don’t employ systems.  By default, law firms that build and apply workflows can work faster and more accurately.

At that point, the discourse changes, from ‘why are we so inefficient’ to ‘how do we become more efficient’.  And, answering that question, over and over again, not only engenders a mindset change, but allows for law firm operations to continually be refined.  It opens up a whole new business culture.

Applying systems in a law firm also has additional, potentially unexpected benefits:

-Systems offer a more consistent customer experience, which will improve your reputation among clients.

-Systems reduce or eliminate simple errors, that can lead to malpractice claims.

-Systems make it easier to manage remote staff, via software where granular workflows are built and maintained.

If you’re looking to build a modern law firm, you need to stop flying by the seat of your pants, and invest in systems for the long haul.

May 15, 2023: Fee Shifting: Is It Time To Revise Your Rate Structure?

A lot of law firms have been sitting on hourly rates for a long, long time.

But, trends are emerging that are causing attorneys to reconsider that hard stance, among them the fact that legal consumers are seeking flat fees -- they want to know the total cost of the representation.  Couple that with the fact that law firm rates barely keep up with inflation, and the massive changes that the rise of the convenience economy has wrought, and there’s probably no better time to reconsider your rates than right now.

If you do decide to shift off of your standard billing practices, there are a number of options, including:

-Raising your hourly rates, even incrementally, on a schedule, can deliver significant revenue gains over time.

-Launching flat fees on a rolling basis works as starting point.  It’s not like you need to decide tomorrow whether you are going to move to flat fees, or not.  Try them out, for certain new cases, and see if you can find the right value proposition.

-If you’re taking credit card payments anyway, why not automate those?  You’ll need to reset your fee agreement (to get permission to do so from your clients) and tweak your payment management process; but, that’s a pathway to eliminating accounts receivable.

-If you can’t get to a flat fee (or don’t want to right away), instead adding a success fee = bonus, if your law firm comes in under a quoted number of hours, aligned with a reduction in hourly rates for any hours billed that are over a quoted number.

-An evergreen retainer = a threshold retainer level that a client would ‘top off’ on a recurring basis, e.g. – for a $1500 evergreen retainer that dips to $1200, it’s the client’s responsibility to pay in $300 during the next payment cycle.

The world of law firm fees is your oyster, even if most law firms stick to the scrod.

May 13, 2023: Side Hustle: Your Hobbies Can Help You Market Your Practice

I’m fond of telling lawyers that if they’re not making enough money out of their practices to generate a viable living, then they have a hobby, not a business.

But, I don’t mean to denigrate hobbies.  Hobbies are great.  And, many lawyers are far too focused on being lawyers to develop one – but, they should!  Lawyers are people, too, and need an outlet.

Sure, it’s good to be a well-rounded person; but, having a hobby can also help you to drive business.

Look, everybody’s got specific things they’re interested in – and, some of them are weird, frankly.  But, the crazy thing about it is that there is a community out there for everyone.  Like basketball?  You can find others who do.  Maybe scrimshaw’s your thing?  Somebody else likes it, too.  Collect state spoons?  Somebody’s grandma does, and you two can hang.

The point is that attorneys can lean into their hobbies, to meet like-minded individuals.  And, those like-minded individuals can become referrals sources.  Just making yourself visible within a group, without even selling anything directly, can lead to the generation of new clients and referrals.  Everybody asks you what you do, at some point.  There’s your in.  And, this is also a great way to meet non-lawyers, which attorneys generally don’t make enough of an effort to do.

Now, joining a group is one thing; and, there are plenty around.  But, what’s even better is if you can start your own group.  Organizing a rec basketball league for your lawyer friends, setting up a scrimshaw group in your neighborhood, or even hosting a weekly meeting to address current issues in state spoon collecting – that makes you look like a boss, and as the leader of the group, you’ll get the most referrals.  People who believe you’re competent in one area of your life (like running a group), will assume your competency in another area, like practicing a specific type of law.

May 5, 2023: Touchless: Law Firm Automation Can Be Applied More Broadly Than You Think

Car wash preferences are a thing.  Some people like to get their hands dirty (or clean), and wash their own cars; and, some people prefer the touchless automatic option, so that they can just roll on through.  (And, then: some people don’t like car washes at all.)  The point is that consumers have different preferences; and, they may be different from the preferences of business owners. 

Lawyers often presume that leads want what they want, or they think potential clients desire things they don’t.  For example, law firms generally value ‘high touch’ professional services; but, they often end up taking that to extremes.  Yes, clients want your expertise, and to talk about the legal process and state of the case.  But, they may not want you to schedule appointments with them, take a check from them or sit down for a signing meeting.  And, in reality, much of that is a waste of time for the attorney – who should be billing high value cases, or marketing for them.  The upshot is that, as a law firm, you should automate as many of the rote processes of practicing law as you can.  The high-touch aspect of professional services should be reserved for the most compelling parts of the representation, when the attorney is offering the most value.

Now, if you’re reading this, and you’re interested in making sure that you’re deploying your time more effectively, start thinking about all the processes you can manage more effectively, using technology, that you can ‘set and forget’.  That can be employed across the practice, in a number of scenarios, from intake to archive. 

Need to take payment from a new client?  Automate it, with an epayment service.

Need to schedule an appointment with an existing client?  Automate it, with a scheduling tool.

Need to share an update with an existing client? Automate it, with a workflow tool.

Need to generate a closing letter?  Automate it, with a document assembly program.

That’s the short list.

As it turns, you can create a digital version for any analog process you currently employ.

April 27, 2023: Reach: Consumer-Friendly Language Wins the Day in Law Firm Marketing

When it comes to marketing content, most lawyers are concerned about what to write.

But, in reality, the more important question is how to write.

The plain fact is that lawyers tend to write like lawyers, regardless of the audience.  That means they use 2-dollar words, legal terms of art and lots of Latin.  Now, that works when the audience is other attorneys, who eat that stuff up.  But, when trying to craft content for legal consumers, attorneys should take a different approach.

Your potential clients have no idea what a tort is, won’t appreciate a turn of phrase originating with Cicero and prefer fewer syllables.  All that being said, legal consumers are very interested in the legal process.  Take those two things together, and understand that if you can build consumer-friendly content, while focusing on answering the questions clients have about what you do, that that will be tremendously helpful in expanding your inquiries.  And, if you can think about what you do, in terms of how you help clients, that’s a bullseye.

So, if you’re pushing the content angle for marketing (as you should be, because it’s super cost-effective), and creating content yourself (as you should be, because it comes off as more authentic that way), but you’re still not getting the traction you need: ask a non-lawyer friend whether they understand what you’re trying to get across.

April 18, 2023: Let Me Google That For You: 2 Free Tools to Improve Your Web Presence

Many law firms don’t have a better web presence in part because they don’t know enough about their existing web presence to improve upon it.  At a baseline level, most lawyers don’t often Google their own name, or the name of their law firm – so, they have no idea what potential legal clients see about them, when they are searching for legal services.

Conducting a ‘vanity search’ on Google, however, is only the first step in anteing up to table stakes for online marketing.  You can learn a lot about your website’s performance in search using two free Google tools: Search Console and Analytics.

Search Console gives you a direct view into how your website performs in search, including information about how Google views your site’s performance.  It also allows you to submit content to Google, and alerts you to issues Google has identified with your web presence.  The Google Search Console page offers more basic information and training videos.

Analytics is a more complicated system to use; but, it offers KPIs (key performance indicators) respecting your websites performance in search, including source attributions.  There are a number of reports law firms can access through Google Analytics that can positively affect web marketing strategy.  Data sets are presented in an engaging visual format that’s easy to leverage.

Most attorneys are perfectionists (the type of people who actually read instruction manuals), and tend to avoid doing things they haven’t mastered.  But, there is no harm in at least learning more about your website’s performance in search via two programs that cost you nothing.

And, if you can use the insights gained to improve your web presence, you’re well ahead of the majority of law firms.

You don’t have to become an expert to understand the basics of SEO.

April 13, 2023: Baby Steps: Efficiency Builds Slowly, But Impressively

In the book, ‘Cheaper by the Dozen’, the father of a family of 12 is . . . (wait for it): an efficiency expert.  Because, he’d have to be, right?  (Ba-dum-cha.) 

But, the book is actually non-fiction; it’s written by 2 of the 12 children in the family.  And, the mom was actually an efficiency expert, too.

Truth is stranger than fiction, amiright?

There’s this one early scene in the book, where the Dad is buttoning his shirt from the bottom up. 

Why?  Well, because it’s faster = more efficient, of course.  Probably because your hands are closer to the bottom of your shirt, than the top of your shirt.

How many people actually button from the bottom up, though?  Just about nobody.

Why?  Because it’s different.  It seems weird.  No one else does it.  It’ a departure from your normal procedure.

Sound familiar?

That’s right: these are same reasons you don’t adopt new efficiencies in your law practice.

The status quo is just easier.

Until it isn’t.

Maybe buttoning your shirt from the bottom up in your law practice means adding a second monitor.  Or building a workflow.  Or creating a followup automation.

Adding one efficiency breeds more.  And, each time you add a new efficiency to your law firm, you save more time.  It builds upon itself.

And, efficient law firms make more money.

You’d button your shirt from the bottom up, if you increased your bottom line, right?

April 3, 2023: Lost Time: How to Build a More Efficient Schedule

Lost time isn’t only a phenomenon affecting alien abductees.  It happens to business owners, too.  I mean, think about, how often do you feel like: where did that last hour go?  This is a common occurrence.

But, most businesspeople, including most lawyers, just shrug it off, and move along.

With a little bit of effort, though, that lost time can be found, and can become the fulcrum for driving personal efficiency.  And, there’s an easy way to find that lost time, too.  Utilizing an automated time tracker (like Chrometa or timeBro) will allow you to view time logs for each day you work, without having to manually generate those time logs.  Automated time trackers manage your time across devices, and prompt you to add time manually when you have been away from your devices for an extended period of time.

Now, when you lose an hour, you’ll know why.  And, you can make adjustments to your schedule accordingly.

What you do with those results are the key.

For example, if you find that you’re super-efficient from 7-9 am every day, that’s a good time to work on big projects.  Or, if it seems like you always zone out from 1-2 pm, why not schedule in lunch and a break, at that time.  Most attorneys, even those working from home, stick to a 9 to 5 schedule; but, in the modern world, that’s no longer a requirement – not that it’s ever been.  So, attorneys should be aligning their schedules with their work habits, even if most don’t.

Lawyers track time for clients; but, attorneys who track their own time, and apply what they learn to their schedules, are generally more efficient.