Solo Practice University® » Client Relations

‘Closing The Deal’ – The Lawyer’s Version

Rachel Rodgers — Thu, 02 Feb 2012 12:30:47 +0000

A-B-C.

A-Always,

B-Be,

C-Closing.

Always be closing,

always be closing.

- Alec Baldwin as Blake in the movie Glengarry Glen Ross (see a clip of this great scene here)

Focus on Closing

My first couple of months as a solo, I spent a lot of time talking to prospective clients. At that time I was offering free consultations. During these consultations I would give away the milk, which meant that very few potential clients were buying the cow. Even worse, I didn’t clearly express to my prospective clients what the cow was and why it was worth my fees to get it. I had no idea what the hell I was doing and was quite perturbed that many of these prospects weren’t becoming paying clients.

Unfortunately, how to sell is among the myriad of things that we lawyers need to know yet didn’t learn in law school. When I was just starting out, I didn’t understand how important the mantra, “always be closing” really was. After months of being disappointed at how few clients I had, I realized that closing clients needed to be my numero uno priority.

Now I have a method that keeps closing at the top of my mind at all times. You should try it:

Get a whiteboard and write down how much revenue you want to make this quarter. (Go ahead. I’ll wait). Under your goal number, write down how much you’ve made so far this quarter and subtract it from your goal number. The new total is how much you have left to make. Be sure to include the date every time you update the board – it adds a sense of urgency. Now every time you get paid, deduct the amount of revenue to date from your goal number. Here’s an example:

Goal for Q1: $20,000

Revenue to Date (2/2/12): $ 6,500

Need to Make: $ 13,500

By doing this you will have the exact number you need to make staring you in the face everyday. Its amazing how that number can keep you focused on acquiring clients so you can meet the bottom line. Remember, that

what gets measured, gets managed. – Peter Drucker

Selling Isn’t Icky

In addition to not knowing how to sell, we lawyers often feel uncomfortable selling. I’ve heard lots of lawyers and other service professionals say that selling makes them feel icky. They say, “I don’t want to force anyone to buy from me.” This position requires a re-frame. Thinking that you are forcing someone to buy from you is giving yourself too much credit. No one can force me to part with my money if I don’t I want to (except the IRS and an armed robber); likewise for your potential clients.

Instead, realize that you offer a valuable service and people need to know that your service is available and understand how it can help them. I can’t tell you how many emails and phone calls I have received from giddy prospects who are thrilled to discover my practice. If I wasn’t spending time sharing information about what I do, people I can help would never know I exist and therefore, never be able to benefit from my services. My point here is that people WANT to buy from you.

When you have a new prospect in front of you, do these three things with an eye towards either closing the sale or discovering that you and this prospect don’t belong together. (Either one is good. You don’t want to work for someone who isn’t a good fit for your practice anyway – it will only lead to headaches.)

1. Listen. Spend lots of time listening very carefully and asking open-ended questions. The more you listen to your potential client, the closer you’ll get to understanding what they truly want. When you know what they really want, you can express the reasons why your services are valuable to them. Additionally, knowing a lot about your potential client will help you to frame the conversation when it comes to discussing fees.

2. Educate. By being a good listener, you will make the potential client feel comfortable that you understand what they need. Then you can spend time educating the client about the particular legal issue their facing and how you can resolve it. Sharing a small portion of your knowledge will help the prospective client trust and believe in your expertise. It will help them understand their options and the true value that you can bring.

3. Close. Once you have spent some time listening to your clients wants and educating your client about the legal issue and the value that you bring, its time to close. Closing is pretty simple, just ask them if they would like to hire you. If they say no, you can move on. If they say yes, you can take the next steps to making them a client (collecting an intake form, sending an engagement agreement, accepting payment, etc.). If they say maybe, let them know you’ll follow up in a specific amount of time (2 days, one week, etc.). Then when you follow up, if they still don’t have a definitive answer give them a deadline by which to decide. When the deadline arrives, if they haven’t said yes, remove them from your sales process. Perpetual maybes can be an enormous time suck. Cut them off and move on.

Ideally, you should want exactly what your prospects want: the satisfaction of their desire or the resolution to their problem. – Josh Kaufman, The Personal MBA

Selling is only icky if you’re selling something you don’t believe in to someone who doesn’t need it. Your true goal is to deliver your services to clients who need them. So don’t make it hard for your potential clients to buy from you. Focus on closing for your benefit and theirs.

Written by Rachel Rodgers

The Importance of an Extraordinary Client Experience

Susan Cartier Liebel — Tue, 20 Sep 2011 13:22:07 +0000

Those who know me know my son is seven and has now entered the wonderful world of orthodontia. We knew this was coming up, stockpiled our pennies (you know how expensive it can be!) and through a series of referrals decided on an orthodontist. We landed there because he has a wonderful reputation among his peers.

When we went to his office for the initial consult I could not get over how kid (and adult) friendly the office was. The staff was almost Prozac-happy. There were gameboys, a flat screen TV with the latest kid movies, toys, educational games, magazines for the adults, private areas for cell-phone use and the coolest check-in process for the kids. They put their finger in a machine (not traditional fingerprinting) and it checks them in. Their photo pops up. (I actually think the receptionists know who the kids are and use their computer to call up the file and voila!)

Orthodontia is very stressful for the child and parent and it’s expensive. Many times it’s not even aesthetic but required for the child’s well-being. There are no shortcuts in the process, either. The experience is long and drawn out with no guaranteed results. The relationship established at the beginning and throughout the experience is critical to maximize the professional’s ability to give the child the desired result. The child and parent play a critical role in the professional’s success in achieving the desired outcome for the patient. Sound familiar?

So, back to the Prozac-induced happy office. They were so efficient and pleasant, prepared for all my questions, were ready for the hot button issues like price with easy payments plans, the numerous and onerous appointments and working with my schedule. Everything, I mean EVERYTHING, was anticipated and answered. They had ample time to address all my concerns and I did not feel rushed. No concern was too small. In many ways it was surreal.

When my son finally had his appointment to put in the appliances I had to plan for ninety minutes. They took him right on time, had coffee and snacks available knowing I would be waiting. In the alternative, they suggested if I wanted to go shopping and return he’d be in good hands. (I opted to get on the phone and tackle the insurance company who messed up…but the insurance company was also really helpful and pleasant! What’s going on?)

Towards the end of the appointment I was provided detailed information verbally and in a written packet. They demonstrated how to handle his appliances and encouraged me to try while I was there so I was comfortable. A stressful situation was made so easy I was, quite frankly, stunned. They again anticipated all potential issues which could arise between this appointment and our return the following week so I was comfortable. And the appointment was exactly ninety minutes.

Then two days later my son receives a lovely handwritten card from the technician complimenting him on what a great job he did, discussing how glad she was he shared stories about his vacation and dog and included a sticker of a dog in the card. She concluded by saying she was looking forward to seeing him at his next appointment.

This is an extraordinary client experience and highly personalized. The price: comparable to all orthodontists recommended.

More than facts, process management and functional product or service attributes, value creation is a designed based discipline of creating an episode, an encounter, an adventure, a perception, and a sense that there is greater use value in the experience than in the goods themselves.

It has been shown that an extraordinary client experience is crucial to success today.

Don’t you think that I will talk about my son’s orthodontist to all parents I know who need braces? Don’t you think I will very easily be able to detail the experience, address all their questions and do so with confidence and enthusiasm? That’s right. The orthodontist gave me all the tools I needed to do so. He gave me all the tools to leverage his work. He gave me all the tools to market his practice for him all while giving me an extraordinary client experience.

How are you creating an extraordinary client experience? How are you converting your clients into evangelists for your law practice?

Written by Susan Cartier Liebel

Service Lessons for the Exceptional Client Experience

Jeff Rutledge — Fri, 26 Aug 2011 12:29:24 +0000

One of the things that separate a solo from large, mid, or even small firms is the ability to control every aspect of the client experience – from the first contact to the final bill payment. This is the key to creating relationships that thrive, producing business that keeps flowing, and winning client loyalty that makes them want to – feel an obligation to – tell everyone they know what a great lawyer and friend you are to them.

I will admit up front that these lessons are second nature to me – I am the kind of person (you know from previous columns) who speaks to people I meet in elevators. Therefore, as a result, I do not have to think about these things…I merely do “what is right” and things seem to work out. For those who struggle – not because of intent but because of lack of experience – with client service, the following advice is a very short list of the things you must do to thrive in a client-service-driven world. If you follow this list, you cannot go wrong.

WELCOME CLIENTS TO YOUR OFFICE OR MEETING WITH A WARM, FRIENDLY AND GENUINE GREETING. You have to put yourself in the place of your client when it comes to good manners. If you cannot welcome them to your office (brick-n-mortar, virtual, or Starbucks) with a genuine greeting – showing them you are happy to see them and to have their company – then you have sent the OPPOSITE message. Then, when it comes time to decide whether to sign a fee agreement, keep you for future matters, or refer friends/family to you, do not be surprised when your referrals dry up and die. Of course, this is not the only reason to be genuine – it is merely a bonus. After all, if you are genuinely glad to see your client, you need not fake anything. Keep in mind, though, even when you have a bad day, you need to set your other concerns aside so your client understands they are the high point of your day. Think back on your best experiences with professionals (doctor, dentist, accountant, etc.) and try to remember what made those experiences excellent. My accountant has always rooted for me – always took the time to ask how things were going – always took the time to come from behind his desk and speak with me like a friend. Of course, he works for me and sends me bills…but that relationship survives and thrives because he is glad to see me and makes sure I know it.
USE THE CLIENT’S NAME WHENEVER POSSIBLE. I will admit here and now that I am not good with names. I know I should be – and I remember there are plenty of things I am great at so I do not worry too much about it. Nevertheless, I do need to know names so whenever I get somebody’s card I make a note on the back that will help me remember whom they were and make the connection. For example, one of my recent introductions was to a businessman from Belgium so I noted that on the back of his card – he also spells his first name (Marc) a bit differently from the norm so I noted on the back of his card “Belgium – Marc with a C.” I also make notes on post-its and put them on my desk so I get several reminders in case I need them. My Dad used to say if you use somebody’s name once a minute while you are speaking with him or her, it helps them understand that you care about them. Learn the names and use them – it will help you establish a long and friendly relationship.
GIVE CLIENTS YOUR UNDIVIDED ATTENTION. My wife and I recently went to see Chicago (the musical) at the Bass Hall in Fort Worth, Texas. The show was marvelous but I had a young man sitting next to me that had to check his cell phone every minute or so…and the screen light would shine right in my face…during the show. Therefore, at the intermission I asked him politely to turn off the phone during the show or excuse himself so he did not bother the other members of the audience. He gave me a look as if I had scratched his car door. I was surprised because I thought a polite request should be enough but it was not…eventually a very nice usher reminded him of common courtesy and solved the problem. I tell this story not show what an impolite jerk this fellow was BUT to remind us all that manners start first with how the OTHER person perceives you are treating them. If you interrupt a conversation with a client to look at a text, or take a phone call while they are sitting in front of you, you are telling them they are not important. I handle this situation this way – when I sit down with a client, I pick up my phone and silence the ringer and set it aside (or in my brief case) and say “This is your time and you are my single focus – what can we do for you?” This may not be necessary but do not ever underestimate the value of making sure your client knows that when you are serving them you are NOT multitasking.Eventually, you may have to tell that client that you have to get back to them because you have another appointment scheduled…it is easier to say that if, when they are with you, they are your sole focus. Make every moment with a client THEIR moment. You will not regret it.
MAINTAIN A POSITIVE ATTITUDE WITH EVERY CLIENT. As I mentioned above, nobody wants his or her Doctor to say “I hate dealing with a patient that has XXX (‘your’) condition…” If your client ever hears you say that about their matter, they will feel marginalized and rightly so. It is perfectly appropriate to make sure a client understands that certain matters are more difficult than others, that results are never guaranteed, and that things may not go our way in court (or wherever). Nevertheless, your client needs you to be strong and positive and a tireless cheerleader for their cause. Do not put your head in your hand and say anything like “Oh no, not another custody battle…” If you practice family law, that is your line of work and you have to expect that. To your client, it is their ONLY custody battle – remember that.Complain to yourself, complain to your better half, or to your therapist (within the bounds of the rules of professional conduct). However, always always try to keep your client on top of the world. They will be better to work with, they will pay the bills, and they will follow your sound legal advice. Best of all, they are more likely to be happy when you are happy. Life is better that way.
WALK CLIENTS OUT AT THE END OF A MEETING; THANK THEM AND GIVE A WARM, FRIENDLY GOODBYE. Just as you must welcome a client with a sincere greeting, you must also bid farewell in a sincere and complete manner. Never ever just wave your hand at a client and say “See ya’ next time…” They will leave with a bad taste in their mouth and that taste lasts a LONG time. If your client has family members waiting for them, try to say hello and introduce yourself – this is a good way to let your client know that they matter beyond the matter at hand. You will recall from a previous column (see it here: http://solopracticeuniversity.com/2011/04/29/budgeting-what-you-really-need/) that I have a habit of handwriting informal notes to everyone I meet to thank them for their time, etc. The value of a handwritten note cannot be underestimated – it is a time-tested way of being sincere after the fact and passing on another business card. This is not patronizing if you really mean what you say – take the time to be polite and exhibit good manners, it is good for your client and, by extension, it is good for business.

In short, treat your clients the way you want to be treated – the way your grandmother would have told you to treat them. Remember a genuine welcome and good bye – using the client’s name – ensure they know you are glad to see them and sorry to see them go. Pay attention to what they say and give good positive feedback.

If you follow these simple rules, the client experience will always be positive and they will have good reason to consider you not only a good lawyer but also a friend who treats them well from beginning to end and to whom they feel comfortable referring other friends. A positive client experience is not only good for business…it IS good business.

Do you know how your clients view you? How do you make you enhance your client’s experience? Share in the comments.

Written by Jeff Rutledge

How Saying ‘I’m Sorry’ Can Help With Client Relations

Susan Cartier Liebel — Mon, 16 May 2011 11:01:27 +0000

(Resurrecting an oldie but goodie…we so often forget the power of an apology.)

I recently flew down to Florida for the holidays. The day was unrushed and rather enjoyable. However, we flew Jet Blue and after we boarded our plane I heard one of the flight attendants say, “I don’t know when the pilot is going to arrive. We have no pilot.” I calmly used my cell phone to call those who were going to pick us up and told them we’ll probably be delayed.

Shortly thereafter, the flight attendant made an announcement saying, “We expect to have at least a 45 minute delay due to our flight crew still being en route. If we are longer than 45 minutes we will permit you to deplane.” Naturally, many passengers started to gripe, speculating as to why there was no flight crew, none of which was positive and reflected poorly on Jet Blue. It was all speculation but tempers were flaring and the passengers were loaded for bear planning ways to complain, get a free flight, etc.

Within the 45 minutes the crew arrived and immediately the Captain got on the loud speaker and said, “I’m sorry for the delay. I could lie to you and make up all kinds of reasons for my delay but the truth is I screwed up on my schedule. This is not Jet Blue’s fault but mine alone. I’m sorry. I’ll will do everything possible to get us there faster.” After that he cracked a few jokes about not knowing where we were headed, the passengers laughed and the mood lightened considerably. He told the truth and apologized and sought to make amends. His open and honest and immediate admission of responsibility for the passengers’ inconvenience and a true apology worked wonders in mitigating backlash against the flight crew and the airline. However, the story about the Captain’s apology made a powerful impression and was retold in a very positive way. The delay was secondary and proved inconsequential. The airline also comped everything normally charged during the flight including premium drinks and earphones. A few days after the delayed flight I received an e-mail from Jet Blue apologizing for the inconvenience I suffered which included a $25.00 credit voucher towards my next flight. There were at least 150 people on board. You do the math.

This was a powerful lesson. How often do we feel compelled to protect ourselves from possible rebuke from our clients by not offering up an apology for a mistake we made for fear that owning a mistake or apologizing for that mistake will diminish us in the eyes of our client or worse, set us up for a grievance or malpractice claim? After all, being a solo you have no one covering your backside professionally or financially.

“I’m sorry.” Why are those two little words so difficult to say? Perhaps because they hold such power. An honest apology can mend relationships, dissolve anger, soothe shattered pride or heal a broken heart. And a study conducted by the University of Michigan showed that apologizing can even have health benefits, such as lowering stress levels. Meanwhile, avoiding an apology makes relationships more strained — and it can reveal something negative about you. Being incapable of apologizing can be a real character flaw.”

There are three keys to a successful apology: regretting your actions, taking responsibility for them and being willing to remedy the situation.

Studies have shown, especially in the medical profession, that an apology and showing regard for the individual who is impacted by mistakes reduces the risk of malpractice claims.

While most studies discuss litigation within the medical profession there are lessons we as practitioners can take away from this. States are starting to adopt “Apology” Laws. So read more from the Sorry Works! Coalition site. Would it be too much of a stretch to see this very ‘human’ concept applicable to the legal profession to help with grievances and malpractice claims?

But why wait for the profession to put it in place. Have you considered creating an “Apology Law” practice within your own firm for client upsets both large and small, real and imagined? Should the future find you embroiled in a situation, your office policies and an accounting of genuine remedial steps for a mistake may favorably impact the outcome of any grievance or malpractice claim as well as your reputation going forward. (Of course, if you are grieved or sued this should not take the place of seeking out legal advice from an attorney who handles such matters.)

Just typing out loud

Written by Susan Cartier Liebel

Consultations: Free or Fee?

Rachel Rodgers — Thu, 07 Apr 2011 11:30:50 +0000

Recently, I read an entertaining article by fellow solo attorney, Pauline Villanueva, about what a free consultation is not. It was basically a list that was curated among attorneys on Twitter. Some things they determined a free consultation was not include:

“Free consultation” doesn’t mean spending three hours with you while you tell me your life story.
“Free consultation” does not mean I’m going to prep you for a hearing taking place tomorrow.
“Free consultation” does not mean I’m adopting you or taking you to Walgreen’s at midnight to buy a pregnancy test.

Obviously, attorneys have had some bad experiences with the free consultation. Yet, some of the most respected solo practice authorities, such as Jay Foonberg, highly recommend that solos offer free consultations. Others say solos should never offer free consultations. Still others say it depends. To further murk up the waters, I’ll share my experiences with (and without) the free consultation offer.

My Free Consultation Experience

I started out offering free 30 minute consultations in my Gen Y entrepreneur practice (against the advice of my entrepreneur husband). I figured it would be a good way for clients to get to know me and how I could be of service to them and their businesses. Let me say that I did a lot of free consultations. A lot! Some of them even turned into one hour consultations (I know, I know . . . rookie mistake!).

The biggest problem with this time consuming service is that while I had some great conversations with some very interesting entrepreneurs, very few of these potential clients actually became clients. In fact, a pattern developed where I specifically felt that these entrepreneurs had no intention of working with me in any capacity, they simply wanted free legal advice. Who could blame them? However, I am not in the business of giving free legal advice. I do pro bono work with 100 Urban Entrepreneurs and one or two other organizations, but the free consultation was not meant to be pro bono work. It was meant to be a gateway to obtaining paying clients.

One obvious warning sign is when the prospective client keeps mentioning their financial troubles or downright says that they can’t afford an attorney. Additionally, lots of questions about pricing at the very beginning of the consult is probably a good sign of a tire kicker and not someone who is likely to become a (good) client. One particularly bad consult that left me feeling used was a potential client who didn’t want to have a conversation but wanted me to answer as many of her rapid fire questions as she could get answered in the time allotted. At that point I decided to stop offering free consults. It was clear that the free consultation was not serving its purpose.

My Paid Consultation Experience

So I took the bold step of removing all traces of the free consultation offer from my website and other marketing materials, replaced it with the “Legal Strategy Session” and said a prayer. My Legal Strategy Session is a one hour consultation where I answer questions, provide some initial legal advice and potential clients have the opportunity to get to know me. I charge $250 for this service. If the client signs up for one of my monthly packages or ongoing retainer services (not simply hire me to draft a contract), I will credit the $250 against the cost of the package.

The response to this change was immediate and overwhelmingly positive. Needless to say, I have now done a lot of paid consultations. I realized that, for me, this was an unbundling error. I did not offer a service where clients could obtain unbundled legal advice. Once I did, my clients showed me that this is something they really wanted. Additionally, my clientele is filled with both committed and uncommitted entrepreneurs. One way to tell who’s who is to ask questions about what type of investments they’ve already made in their business such as what their startup costs have been and whether they have hired other professionals such as an accountant. The paid consultation deters those entrepreneurs that have not made a commitment to their business (and therefore are not willing to invest their money in their business) from contacting me and that’s okay. In fact, its perfect. Every entrepreneur can’t be my ideal client and likewise, I am not the ideal lawyer for every entrepreneur.

Thoughts on the Transition

I will note that during the transition from free to paid consultation, I did have a couple of potential clients contact me via email to request a free consultation because they had previously seen it advertised on my website. I responded to their inquiries by informing them that I now offer a paid consultation and explained how it worked and what type of value they could expect. None of them responded.

Additionally, there is still that dilemma of how do you handle potential clients who would never hire a professional without having some interaction with them first? An important part of the hiring decision for potential clients is whether they like you. And how can those potential clients know if they like you without having the opportunity to talk with you? I address this problem by having an online presence. I blog, I write articles for various websites, I speak at webinars and seminars and I chat with folks on Twitter and Facebook. All of these activities allow potential clients to get to know me and my personality. Additionally, I answer my phone and respond to emails. If a potential client calls, I will be spend 10 minutes or less on the phone with them, giving them the opportunity to get a feel for whether or not they like me. To date, every potential client that I’ve had a brief conversation with over the phone has become a client.

So Which Is It? Free or Fee?

I agree with the “it depends” crowd. There are practice areas where it makes a lot of sense to offer free consultations, such as contingency fee personal injury cases. However, whether you offer a free or paid consultation should be based on a business model that works for you AND your bottom line. How do you know what works for you and your bottom line? You test. And guess what works as a great way to test your service offerings, your presentation, different sales pitches, etc.? You guessed it – the free consultation.

My experience offering free consultations was very valuable. It enabled me to identify the characteristics of my ideal clients (and my not-so-ideal clients) as well as a service they wanted that I wasn’t previously offering. While I spent a lot of time on this “test,” I am currently reaping the benefits.

So, now I ask you – Free or Fee?

Written by Rachel Rodgers

Follow-Up: Case Study #2 – Do You Fire a Client To Save Your Practice (and Sanity)?

Susan Cartier Liebel — Mon, 01 Nov 2010 11:30:57 +0000

Last Monday I posted this question and received a lot of comments on this blog and privately. It struck a nerve because we’ve all been there. Some of us have a finely honed sense of the ‘right’ client and can decline business easily. Yet others are still feeling their way through this process. And yet more and more, client selection is being driven by fear of not having income to enable us to be around to practice another day.

This particular attorney has several issues which were forced to a head when she took on a well-connected, potentially difficult and controlling client with a voluminous amount of paying business in a practice area she was trying to reduce – debt collection. Now she has to decide how she wants to grow her business as well as how to generate the necessary cash flow to keep her doors open. The stress of keeping the cash flowing combined with growing larger in an area she no longer wants to practice (at least not such a large percentage) plus the fear of her practice being dominated by only one client because of the growing number of files is making her lose sleep and giving her headaches. All this is impacting her quality of life at work and home. That’s a lot on her plate and why she called me. Sometimes an objective voice and sounding board is what’s needed.

Problem 1: Logically, many of you noted it would be simple to take on help to do the more routine and time-consuming functions of the debt collection process giving her the benefit of the cash flow while allowing her to develop the practice area she enjoys yet still overseeing her responsibilities on each file. This includes hiring someone to take the files to litigation as necessary and splitting the fees.

Solution 1: Prior to our conversation and prior to her receiving all the files, she had actually lined up another experienced solo to be ‘of counsel’ precisely for the litigation aspects of the debt collection. Her paralegal has no problem to date handling the process functions and if necessary the attorney is prepared to bring on another paralegal or administrative assistant to address the volume. The logistics of bringing on additional help makes perfect sense. The reality, this really wasn’t the problem. Let’s continue.

The real problems for this particular attorney are more about the quality of her practice in terms of practice area and clientele. She wants to reduce the percentage of time she spends on debt collection; not increase it. More importantly, she does not want it to be dominated by a client who wants her to be in his hip pocket.

Once the lawyer had the signed the retainer from the client all kinds of alarms were set off – disregard for signed retainer agreements, e-mailing on Fridays with work for Saturdays, not taking the attorney’s advice on settling cases (which ultimately reduces the attorney’s profit per file while increasing time spent per file). All these red flags showed lack of regard for the attorney. The client just wanted a lap dog. The attorney investigated this client further and found other (larger) firms had declined his work because of how he dealt with lawyers and the conditions he placed upon settlement of files.

However, when you are concerned for cash flow you may very well derail your practice to chase dollars and rationalize the red flags.

I’m not going to pretend this isn’t a tough call. It is especially difficult in today’s economy to acknowledge red flags when you want to see the green cash. But even in today’s economy you have to think long term about your business and have the ability to make these short term decisions which may be uncomfortable. You have to focus on the long term vision and reward.

When the client ultimately identified her real issue wasn’t the logistics of handling the work or her fear of taking on additional counsel or support staff it was easy to see the problem was the domination of this client in her practice which precludes her from growing her other, more enjoyable practice area, personal injury. Cash flow originally drove her decision to take him on as a client as well as his ‘presence’ in the community. She thought she would be able to manage everything until her body told her otherwise – the headaches, insomnia, dread going into the office. This was not why she developed a practice – to feel dread or live on Advil.

Literally after we hung up the phone, the client called me back because she had received an e-mail telling her there were 100 more files on the way. Originally, she was going to take the weekend to mull over her options. Instead, she decided to the call the client then. We had discussed possible scenarios with the current files and all those options were on the table when we concluded this phone call. Approximately one hour after she called me back I got this e-mail:

Hi Susan,

Thank you so much for your help!

Call went really well. I fired the client. He was very cool and tried
to talk me out of it.

Feel great/relieved about my decision.

Have a great weekend.

Thanks again!

In addition, the client made the following decisions. Concluding she no longer wanted to do volume debt-collection yet understanding she had to ramp up her cash flow (her debt collection practice funds her costs to take on major personal injury cases) she now knows she has to put sizable time and energy into marketing the personal injury aspect of her practice. Cash flow will be tight but after having made an important decision about the direction of her practice and rediscovering her enthusiasm, she is willing to put in the energy to do what she needs to do to develop the practice she wants. Cash flow is a powerful motivation. This attorney, however, still wants to be the dog wagging her tail, not the other way around.

So, more often than not, the answer is ‘yes’. You do fire a client to save your practice (and your sanity.)’

If you have a particular situation you would like discussed/featured on ‘Case Studies’, please e-mail me and we can discuss.

Written by Susan Cartier Liebel

Got Clients? How Did THAT Happen?

Susan Cartier Liebel — Thu, 19 Aug 2010 09:30:16 +0000

In the spirit of Solo Practice University, many expert voices teaching you how to build and grow your solo practice, I am very pleased to announce that Solo Practice University has a new monthly columnist, Debra Bruce. She will be providing you excellent practice-building advice in her column ‘Lessons From the Lawyer-Coach’ appearing the third Thursday of every month. You may want to check out her inaugural guest piece many months ago, 12 Social Media Ethics Issues for Lawyers. Please make her feel welcome with your comments and suggestions for future columns.

Lessons From The Lawyer-Coach

Debra L. Bruce is president of Lawyer-Coach LLC , a law practice management coaching and training firm, and author of the Raising the Bar blog. She practiced law for 18 years before becoming the first Texas lawyer credentialed by the International Coach Federation (ICF). She has served as Vice-Chair of the Law Practice Management Committee of the State Bar of Texas and as leader of the Houston chapter of ICF. You can follow her at www.Twitter.com/LawyerCoach or at www.Facebook.com/LawyerCoach.

Got Clients? How Did That Happen?

“I’ve spoken many times at CLE programs, and I never got any business from it.” Rick Albers’ jaw dropped when he heard that. Why was Rick so surprised? A lot of lawyers (and legal marketing experts) say that speaking at CLE programs is a waste of time. It just educates your competition.

Rick was stunned because he himself had referred four different matters to the lawyer who said that. Rick, a Texas real estate lawyer, chose that attorney because he heard him speak at bar association programs, and concluded that he was very knowledgeable. In fact, it was because they both got involved in bar association work that Rick came to know him in the first place. Perhaps the lawyer thought Rick referred the matters to him just because of their acquaintance. If so…he was wrong.

Marketing legal services involves planting a lot of seeds. Some never germinate, and the ones that do can take a long time to harvest. That time lag can distort our perception of what works.

Decades ago when I was a solo, someone asked how I got my clients. For the first time, I realized that I didn’t actually know. That question spurred me to analyze my list of current and former clients. I discovered that 75% of my business came from referrals from other lawyers. A surprising percentage of the best business referrals came from my competitors.

These two stories illustrate a significant flaw in the business development efforts of many lawyers. Man of us don’t have a system to measure which activities produce the outcomes we desire. We just rely on our impressions.

Find What Already Works for You

By analyzing my client list, I stumbled upon an excellent marketing tool. I sometimes invited opposing counsel to join me for lunch or an adult beverage when the legal matter concluded. I didn’t do it for business development. I just wanted to smooth over any rough edges that might have developed from the tensions of adversarial representation.

My analysis revealed that those same lawyers later referred some of my best clients! I realized that my gesture of rapprochement resulted in positive relationships with lawyers who knew the quality of my work first hand. I became the first person they thought of when they needed to make a referral due to a conflict. I decided to make it a habit to extend an invitation to opposing counsel in every matter.

Out of the Blue

Do clients ever call you up “out of the blue”? It may seem that way, but something led them to you, and you need to find out what it was. Once when I asked a new client how they found me, she said, “We’ve been reading your articles for the last 3 years, and we think maybe you can help us.”

Three years! If I weren’t in the habit of inquiring, I might have concluded that writing articles doesn’t bring in business. That incident also highlights two important points. One, ask every new client and every referral source how they found you and why they chose you. Two, to get an accurate picture, you need to keep records over an extended period of time.

Track Your Efforts and Analyze Your Results

Track your activities and your new business in a way that lets you easily review, reconfigure and analyze it. Look for patterns and commonality. Record as much detail as you can get. If the client found you through the Internet, what search terms did they use? If another lawyer referred you, how did the client know that lawyer? If they saw your advertisement, where and when did they see it? If they heard you speak, what did they remember? If they are on your mailing list, did they find what you sent them valuable?

These steps are particularly valuable for new solos. If you are a new lawyer, you’ll be trying lots of different things. How else will you know what worked? If you have been practicing for awhile, but recently went out on your own, you may be surprised to find that some activities that worked before won’t work now. You’ll also get clients you wouldn’t have gotten before. You need data to help you identify what efforts to tweak.

If you have a prospective client you hope to get business from, record every time you “touch” them. A “touch” might be in person, by phone, letter, email, social media, speaking, writing, or advertising. Note the length of time between the first touch and the date they become a client. This data will help you persevere in your business development efforts. When you realize that it took three years and 12 touches to get that most recent new client, you won’t lose heart with the next prospect after only one phone call and a lunch!

Finally, look for evidence of which activities bring in top tier clients, and which tend to attract less desirable ones. That requires you to “grade” your clients so you can recognize the common traits of the more desirable ones. A few years ago, one of my lawyer clients discovered from his records that his Yellow Pages ad attracted more “tire kickers” and his website prospects came in ready to sign up. He also watched over time as the website business increased and the Yellow Pages business declined. He canceled his Yellow Pages ad.

When you get new business and you can uncover how THAT happened, you’ll know how to make it happen again!

Written by Susan Cartier Liebel

Are You Really Ready For the Changing Work World? Hold On.

Susan Cartier Liebel — Mon, 09 Aug 2010 18:27:38 +0000

The workplace is becoming more and more virtual, with meetings occurring across time zones and organizations and with participants who barely know each other, working on swarms attacking rapidly emerging problems. But the employee will still have a “place” where they work. Many will have neither a company-provided physical office nor a desk, and their work will increasingly happen 24 hours a day, seven days a week. In this work environment, the lines between personal, professional, social and family matters, along with organization subjects, will disappear. Individuals, of course, need to manage the complexity created by overlapping demands, whether from the new world of work or from external (non-work-related) phenomena. Those that cannot manage the underlying “expectation and interrupt overloads” will suffer performance deficits as these overloads force individuals to operate in an over-stimulated (information-overload) state.

This is just one of the many observations brought to us by the new Gartner Report.

The greatest fear lawyers have is the commoditization of their work product because they have yet to fully understand the value they bring to their clients is their advice, counsel and advocacy. Gartner supports this statement with the following:

The core value that people add is not in the processes that can be automated, but in non-routine processes, uniquely human, analytical or interactive contributions that result in words such as discovery, innovation, teaming, leading, selling and learning. Non-routine skills are those we cannot automate. For example, we cannot automate the process of selling a life insurance policy to a skeptical buyer, but we can use automation tools to augment the selling process.

Your knowledge, analysis, counsel and advocacy cannot be automated. Your time management, billing, backend operations and forms generation can. By recognizing the inherent necessity going forward of ‘value pricing’ your services rather than charging time for processes which can be automated, you will be pricing the value of your unique skills for consumption by the client. You will be satisfying the clients’ needs and freeing yourself from the stranglehold of the clock. The sooner you embrace this reality the sooner you can get fully entrenched in the 21st century practice of law and relinquish a very distressing and draining practice.

Learn how to create ‘swarms’ to get work done:

Swarming is a work style characterized by a flurry of collective activity by anyone and everyone conceivably available and able to add value. Gartner identifies two phenomena within the collective activity; Teaming (instead of solo performances) will be valued and rewarded more and occur more frequently and a new form of teaming, which Gartner calls swarming, to distinguish it from more historical teaming models, is emerging. Teams have historically consisted of people who have worked together before and who know each other reasonably well, often working in the same organization and for the same manager. Swarms form quickly, attacking a problem or opportunity and then quickly dissipating. Swarming is an agile response to an observed increase in ad hoc action requirements, as ad hoc activities continue to displace structured, bureaucratic situations.

Social Media is Swarm Central.

If you understand how critical social media is today and how even more important it will be tomorrow you will work even harder on establishing your social media presence in order take advantage of this phenomenon known as ‘swarming’. Swarming will be seen more in solo practice than ‘teaming’ because teaming is traditionally what one sees within an organization of static employees and usually under the direction of a ‘manager.’

If an opportunity presents itself which requires more hands on deck to complete the task, you will need and want to be able to ‘swarm.’ This does not necessitate you compromising professionalism or ethics or anything. It is actually a very interesting phenomenon which allows you to find and work with the best support system you can for that particular client on that particular matter at that particular time. It is highly customized.

Imagine you have the opportunity to work a larger personal injury case. As a solo it can be daunting as you are just one individual with more than one case but you know you are capable. You are running a business and realize you need a particular type of team to work the case. You’re comfortable taking the lead but need unique support which doesn’t require a previous ‘team’. It requires immediate action, specific skills, people you’ve possibly worked with before and many you have not. Chances are they are entrepreneurs and/or independent contractors like yourself. Of course, your first inclination is to refer out. But now you have a chance to rethink this option. Your social network will provide leads to those who can ‘swarm’ to help on this particular project, coming together for just this case and then moving on.

Weak Links Are Your Strength

And interestingly it will be the very people who can’t necessarily swarm with you for a particular matter who will lead you to those most capable. These critical ‘weak links’ are provided by your networks, personal and professional and through social media channels.

In swarms, if individuals know each other at all, it may be just barely, via weak links. Weak links are the cues people can pick up from people who know the people they have to work with. They are indirect indicators and rely, in part, on the confidence others have in their knowledge of people. Navigating one’s own personal, professional and social networks helps people develop and exploit both strong and weak links and that, in turn, will be crucial to surviving and exploiting swarms for business benefit.

Past Performance is NOT a predictor of Future Performance

The business world is becoming more volatile, affording people working off of linear models based on past performance far less visibility into the future than ever before.

This in many ways is self-explanatory. We live in volatile times where the only constant is disruption. Working off of business models past will guarantee only one thing – a solo practice which limps along or dies. I can’t emphasize this enough. We are now officially in unchartered waters. We all have the tools available to us to survive. Some have the ingenuity and hutspah to utilize these tools.

Are you one of these? Have you already created swarms to get work done? Have you used a swarm to resolve a non-legal matter? Please do share!

Written by Susan Cartier Liebel

Can We Trust Anyone Anymore? Can You Be Trusted?

Susan Cartier Liebel — Mon, 28 Jun 2010 09:30:45 +0000

I’ve been thinking about writing this post for some time. While it may appear a little off-topic from solo practice it really isn’t. Please bear with me.

The past decade has showcased through both our pocketbooks and heartbreaking imagery just how deeply and permanently wounded we are by the deception, corruption and greed which have gone unchecked in corporate America (and around the world) for so long. No one remains unaffected. No one can really hide from it. No one can responsibly deny it although they will try. The Gulf oil spill (this is a must read) epitomizes all that is so terribly wrong with corporate behavior, corporate agendas and those government agencies who are responsible for oversight. And yet people still confuse supporting capitalism with supporting killer corporations and corrupt agencies. But that’s not for this blog or this blog post.

With the as-yet-to-be-truly-felt impact of the mortgage debacle, the far-reaching economical and environmental effects of the Enrons and BPs of this world, Big Pharma destroying our bodies under the highly profitable guise of helping us, the USDA okaying the use of beef cattle with bovine leukeumia (even organic beef cattle) possibly linked to various cancers, cover ups from trusted advisors which can destroy you physically, and the rocking of our world from every quarter creating instability in every aspect of our lives, how can one not have an unhealthy distrust of everything and everyone. When you are backed into a corner fighting for your basic survival needs and feel helpless when you believe you are doing everything right what do you do? Who do you trust?

The legal industry (including law schools) has not been spared its share of failings and has accumulated countless detractors. This profession has long been under a black cloud for its opaque billing practices, Big Law sweat shops, corporate agendas similar to those of big corporations. And it has been knocked down quite a few pegs this past decade by being outed for their deceptive practices.

It is human nature to trust, to want to trust, to be hopeful, to be part of change. A society can’t survive without trust. And to violate another’s trust in you is the worst imaginable…at least for me.

There is actually a silver lining, however, in this ever-growing world of distrust. Due to social media, the viral nature of information today, those who would look to deceive, suppress, deny accountability through carefully crafted public relations nonsense can’t stem the leaks. Everything is being exposed. Everything is being digitally memorialized. And everything can be digitally altered out of context. Everyone truly does live and work in the proverbial glass house today.

You can only control yourself and your own actions.

How does this tie into building a solo practice? Solo by solo, client by client, we have a unique opportunity to change perceptions and cultivate trust.

Lessons learned and how to build trust:

1. If you can’t handle a situation get and accept help.

Your first and only consideration should be the client.

As a solo you may be very tempted to take on matters you may not be able to handle because you need the money or you actually believe you are capable of handling the work even though a case of this type has never crossed your desk before. Money and a false sense of capability can have catastrophic effects. Seek out the help of others more experienced then yourself. This doesn’t mean turning the case over, necessarily. It means creating a responsible professional relationship with someone who has more experience. It means first and foremost always putting the client first. Had BP and the US Government quickly acknowledged their inability to handle the oil spill, put the unique and challenging demands of the catastrophe ahead of their pride and put the clean up in the hands of those more experienced, the disaster could have been averted at best or at least greatly minimized. The government could have earned our trust and our support for future catastrophes which impact all of our lives so profoundly.

2. If you make a mistake which can adversely impact your client, own it quickly before you create irreparable harm. With the fear of malpractice suits, grievances and being broadcasted as incompetent on the internet from your hometown to Beijing, sometimes it is tempting to cover up mistakes rather than own them and look to make the client whole. As a solo practitioner, there is sometimes a disproportionate fear because you have no one to share the load, no Big Law firm to dilute the responsibility and finance the defense if a mistake is made. This is an undeniable part of going solo. However, there is something very powerful in these two words, ‘I’m sorry.’

In the DiLieto malpractice suit, had the doctors acknowledged their errors early on instead of engaging in a massive cover up, the end result would have been quite different. DiLieto might not have suffered such physical and emotional distress, the lawsuit might not have generated such a punitive monetary award, the reputation of all those involved even by association would not have been tarnished. Trust could have been reestablished by doing the absolute correct thing professionally and morally.

Acknowledge. Apologize. Accept the consequences of your mistakes.

3. Never do anything you can’t defend with the truth. We live in a very naked world. Even if you opt not to actively and enthusiastically engage on the web or through social media platforms, it doesn’t mean others won’t talk about you professionally or personally. You can never really control what people will do with what you say if they choose to take it out of context for their own purposes. That is why it is imperative you never do anything you can’t defend with the truth.

Free and protected speech, especially on the internet, forces all of us who live and die by our reputations to be completely transparent. Those who understand the value of this transparency understand it earns trust. And this brings us full circle. People inherently want to trust. Your clients want to trust you. They truly want to believe you have their best interests at heart and will follow your advice accordingly if you’ve earned their trust. And as solos who are totally responsible for our professional decisions, by doing the right thing even when we risk professional rebuke or financial penalty, we honor our clients, we live up to our professional responsibilities, create greater trust, and change the image of the legal profession one lawyer at a time.

What do you think?

Written by Susan Cartier Liebel

Live Off The Value You Create…or Die

Susan Cartier Liebel — Mon, 28 Sep 2009 00:20:38 +0000

If you cannot live off the value you create for your clients, your practice will not…and SHOULD NOT… survive.

While I was watching David Lat from Above the Law interview Steve Brill of The American Lawyer, I was struck by a statement made by Steve Brill. The discussion centered on whether or not publications who go on line should charge for content. Steve argued if you create value, they will pay. But his exact words were, “Live off the value you create.” To support his argument he noted certain publications are successfully charging for content rather than relying upon advertisers. Create value so customers will support your endeavors. The financial relationship should be between you, the service provider, and the end user.

Then separately, I read this post by Matt Homann and I was further struck by his statement:

What do you see as the biggest challenge facing the legal industry now and in the upcoming year?

Most lawyers are focused on returning their practices to profitability — which is a near term problem for many of us. However, I think a far greater challenge is looming in the distance, and that is irrelevance.

For far too long, lawyers have taken their clients and customers for granted. Quietly, real alternatives are emerging that are making lawyers less necessary to clients. In just the last five years, we’ve seen more and more consumers turn first to the web as they draft their will, start their LLC, etc. This is a trend that will only continue, and lawyers must begin thinking about a day when the least valuable thing they have to offer their clients is advice.

There’s a lot going on in these two statements made by two separate individuals in two separate industries and let’s see if I can coherently knit these thoughts together for you.

1. Create value for your client they are willing to pay for.

2. Live off the value you create.

And:

3. …looming in the distance…is irrelevance.

Conclusion:

If you don’t create value for your clients they are willing to pay for, you will cease to be relevant. And you cannot..and should not.. survive.

We are at the embryonic stage of the ‘new’ legal profession. (Some may effectively argue it is a forced return to the roots of our profession). As more and more people seek alternatives to traditional attorney/client relationships, those lawyers and institutions who cling to the old ways will cease to be relevant…and die.

It is the crux of the argument behind value pricing, alternative billing and those who will see the billable hour die. (Strangely, though, many who espouse alternative pricing structures are still focused incorrectly seeing it as simply a change in pricing strategy…not the 180 degree perspective shift it needs to be.) It also is the driving force behind some of the most creative and revolutionary lawyers (and non lawyers) out there who are going to the extreme and advocating letting clients name their price for services. We can no longer dictate ‘value’ based upon our personal needs and grounded in a false billing model, failing prestige and mind-numbing student loans.

This perfect economic storm (The Great Recession) is transforming the workforce and is forcing both Big Law, small firms and the solo back to the roots of our profession, our raison d’etre – The Client. And the profession will be better for it. The Client will determine if you live or die based upon your value proposition, your relevance to them.

The key to your success lies in how you professionally respond to this statement – ‘Live Off the Value You Create’. If you don’t create value… you die.

Many in our profession fear the commoditization of legal processes and the wealth of knowledge on the web to enable those who would once pay for our services to become Do-It-Yourself types. This fear, combined with the economic challenges we all face is the basis for the prediction (in my opinion, incorrect) that a lawyer’s advice will become irrelevant and something of such little value clients will no longer pay for it.

I disagree with Matt when he states:

..lawyers must begin thinking about a day when the least valuable thing they have to offer their clients is advice.

When we realize that our value proposition is ‘knowledge’ and not the forms, the relationship of an adviser and not the provider of templates, the analytical and creative thought process but not necessarily the execution of these same ideas, that’s when we will truly be able to compete with the web and these highly disclaimed ‘we’re not giving legal advice’ sites. I can give someone a fully equipped car, but if they don’t know how to drive, can’t maneuver around obstacles, can’t handle rain slick roads or another car swerving into them head on, they are going to crash, possibly die. At the very least they will certainly not get to their destination with any confidence they are in the right place.

Your value proposition is in providing whatever legal services clients both cannot nor want to do no matter what free information, inexpensive forms and non-legal ‘guidance’ is available to them. Your job, if you want to survive, is finding out exactly what that is worth to this client so he would rather pay you than struggle beyond his own comfort level. Discomfort has a value. Your job is to successfully convey what he needs to hear to make the decision to engage you the only realistic choice.

Your relationship may be a hybrid of services, review of client-completed documents and advice. It may be guidance in a process (as allowed by your jurisdiction) for a flat fee and in stages at a price the client has determined is right for him. You may end up creating an a la carte menu of fees based upon the combination of services you offer. You may create a virtual law office operating remotely offering unbundled legal services.

The bottom line is, it can no longer be solely about what you need or think you are entitled to. It has to be about what the client wants and is willing to pay. And in reinventing your practice or creating a new practice that refocuses on what the client wants combined with what the client is willing to pay based upon the value you provide, you will have successfully entered the 21st century of the legal profession. You will be capable of living off of the value you create because you have positioned yourself as very relevant to today’s consumer.

Written by Susan Cartier Liebel