Resources

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

2024 Quarter 3

August 30, 2024: Wrong Distance: Creating an Employer-Employee Relationship

Managing people kind of sucks; it’s one of the hardest things to do as a business owner.  And, it’s hard to generate a formal employer/employee relationship, especially the first time you ever hire somebody.

You see it all the time; but, if you get too buddy-buddy with your employee, and you try to act like somebody’s friend – the next thing you know, your work ‘friend’ is taking three-hour lunches, or bagging at 3 pm, without any kind of notice.  This kind of thing is particularly fraught in a remote work environment.

Now, this can be remedied; but, it’s tough to fix (but, not impossible), once the horse is already out of the barn.  But, you also don’t need an internal HR person or COO, to make to create a professional distance between you and your staff(person).

There are several things you can do, even as solo business owner, to build in some control over your employee(s).  For one, it helps to have job descriptions.  How else is someone supposed to know what their work should entail?  If you think your staff is going off-book, but there’s no book – they may just be trying to do their best to support the business, in an environment in which little guidance exists.  Now that you’ve got a job description, have your employee sign off on it – as well as the rules of professional conduct respecting the confidentiality of client data in your jurisdiction, while you’re at it.  Next, be clear about the things you don’t want to happen; if you think an employee is doing something they shouldn’t be doing, or not performing in a way that they should be – tell them.  And, identify what you do want.  If the behavior continues, issue a verbal warning; then, written warnings.  In terms of tracking an employee’s work – you don’t have to be Big Brother, and logging keystrokes; but, instituting workflows make it more obvious what people should be doing and when.  It’s also to determine when they’re not doing those things.  Finally, this should be a working relationship – so, you should be transparent with your employees, and solicit their input.  But, you have to remain ‘the boss’; and, it must be known that your decision is final.

August 23, 2024: A Quiet Place, Too: Are Tech-Related Notifications Blowing Up Your Concentration?

There’s a funny scene in the Pixar movie ‘Luca’, where one of the main characters has labeled the negative voice in his head ‘Bruno’ – and, whenever he has thoughts about how he can’t do something, he yells ‘Silenzio, Bruno!’ (they’re Italian), and so tamps down the fictional naysayer.

I mean, it’s a great strategy, honestly.

But, for many lawyers (and businesspeople generally), there’s another, external voice, that can be highly bothersome.  Those are the notifications that constantly ping on your devices, and in software.

Look, the fact of the matter is that software and hardware for work is designed to be ‘in your face’ at all times.  Developers and CEOs know that you’re always getting crushed with information, and being sent notifications; and, they have to muscle in somehow, too.  That’s why, when you buy something, they try to opt you in to updates.  And, that’s always why every software prompts you to enable notifications.

So, every time you get an email message, your phone dings.  And, every time you get a text, it buzzes.  And, every time a new lead comes into your business, you get pinged in 17 different places.

But, you don’t need to leave those notifications on; you can (and maybe, should) turn them all off.  And, in cases where you feel like a response is needed, you can potentially automate that response – for example, by using chat or CRM tools for new leads.

The fact of the matter is that you don’t really need all these notifications; and, you probably do your best work when you can concentrate, without distractions.

So, if you can’t get that noisome voice out of your head, maybe take some time to visit your software and hardware settings.

August 14, 2024: Asset Management: How Your Law Firm Pays Off in the End

Most solo and small firm attorneys think of their law firms as a salary replacement for a full-time law firm job, with some upside: both on income, and freedom.  But, that’s it.  Lots of lawyers are looking to run out the clock on their practice, and then ride off into the sunset – or, work until they die.  I know I’d prefer the former; and, if you do, too – why not ride off into the sunset with some loot, like the hero (or villain), in a Western movie?

Now, for sure, your law firm is a valuable asset to you throughout your career.  But, a law firm can be a valuable asset for sale, as well – even if many attorneys never consider that option.  A whole host of attorneys are out there optimizing their law practices for current revenue – but, far fewer of those lawyers are looking to create a saleable asset.  Yet, that can become a significant chunk of revenue, for when you retire, or if you decide to move on + try something new, one day.  Your law firm could fund your next venture.

So, law firms will sell for 1x gross annual revenue – usually an average of the last e years.  I mean, that’s still pretty good – but, you can potentially increase that conversion metric, by implementing systems, focusing on marketing and considering revised pricing models.

Also, while currently your only potential buyers for your law firm are other lawyers, the specter of alternative business structures means that that market could expand.

August 09, 2024: Butter My Buns: Keep Your Referral Sources Informed

Most lawyers treat referral sources as a set-it-and-forget it sort of thing.  They’ll work really hard to build up that referral arrangement; and, once the referrals start coming in – things get set to auto pilot.  And, the referrals may continue coming in; but, the question is whether those referrals remain consistently good.  Because, as it turns out, referral quality can degrade over time; and, there’s a specific culprit.

Having an elevator pitch is one thing; but, your client work is more nuanced than that.  There are a number of different factors related to the types of client work you want.  So, when you talk to your referral sources, you’ll need to keep reminding them of the type of work you want, and whether and how that ask changes over time.

Referral maintenance is a real thing; and, if you don’t do it, it’s like skipping the barber shop or the salon: things can get hairy.  And, you’ll end up turning away clients from the folks who are supposed to get you the best ones.

August 04, 2024: Get That Bag: How to Build a Collection Process for Your Law Firm

Law firm accounts receivable can be gnarly, sometimes extending into the six figures.

Now, there are a couple of responses to that.  The preferred option is to eliminate accounts receivable altogether, which can be done using epayment options, and potentially evergreen retainers combined with stop work orders.

Of course, you may not ever get to 100% collection rates – that’s a tall order – and, you may have some accounts receivable to deal with already.  And so, you’ll need to establish a collection process – and, that should flow from your engagement agreement.

The components relating to money that you need in your engagement agreement, aside from your rate(s) and/or basis of your rates, would be: An escalating series of penalties for non-payment.  An arbitration clause, potentially including access to a state bar’s fee arbitration board.  That stop work order.  This will allow you to put pressure on non-paying clients, via an internal process.  And, if those systems don’t yield eventual payment, you’ll also want to have an ‘out’ clause, that will allow you to terminate the attorney-client relationship, as a last resort.

You can make all the money you earn; but, as with most business-related items, you just need a system to get there.