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Making Your Business Plan Sing

Approved for 1.5 General Credits for Washington Attorneys

Presented on Oct. 28, 2014 • Seattle, WA

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LL151028WEB • Making Your Old Business Plan Sing • i

Chair and FacultyA Special Thank You to Our Program Chair and Faculty!Those who have planned and will present at this WSBA CLE seminar are volunteers. Their gener-ous contributions of time, talent, and energy have made this program possible. We appreciate their work and their service to the legal profession.

Program FacultyCharity Anastasio – Practice Management Advisor, WSBA, SeattleEleanor H. Doermann – Pathway Law, PC, TukwilaOlga K. Owens – Medical Advocacy Attorney, Montlake TerraceBret Sachter – The Sachter Law Offi ce, PLLC, Seattle

Copyright © 2013 • Washington State Bar Association • All Rights ReservedThe materials and forms in this manual are published by the Washington State Bar Association for the use of its program registrants. Neither the Washington State Bar Association nor the contributors make either express or implied warranties in regard to the use of the materials and/or forms. Each at-torney must depend upon his or her own knowledge of the law and expertise in the use or modifi cation of these materials. The views and conclusions expressed herein are those of the authors and editors and are not necessarily those of the Washington State Bar Association or any division or committee thereof. Any websites represented by screenshots, logos or ads reproduced in the materials and forms are the copyrighted material of the website owners and are included for illustrative and educational purposes only.

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Summary of ContentsProgram Schedule ................................................................................................................................................................... iiiFaculty Biographies .................................................................................................................................................................iv

Making Your Old Business Plan Sing ..................................................................... Page 1 Charity Anastasio

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Program Schedule

Making Your Old Business Plan Sing

Tuesday, October 28, 2014

11:30 a.m. Online registration * Sign-in

12:00 p.m. Making Your Old Business Plan Sing 1. Making Your Old Business Plan Sing a. Start with the Audience b. Potential audiences 2. The Value Proposition a. Value Proposition Parts b. Value Proposition Decoded 3. Exercise 1: The Client a. Tell both sides 4. Exercise 2: The Problem a. Talk money – Expenses b. Talk money – Fees c. Talk money – Billing 5. Exercise 3: The Money a. Discuss building the business b. Potential referral sources 6. Building the Business – Self development 7. Exercise 4: The Work a. Market research 8. Exercise 5: The Sources a. Major projects plan 9. Exercise 6: The TechCharity Anastasio – Practice Management Advisor, WSBA, SeattleEleanor H. Doermann – Pathway Law, PC, TukwilaOlga K. Owens – Medical Advocacy Attorney, Montlake TerraceBret Sachter – The Sachter Law Offi ce, PLLC, Seattle

1:30 p.m. Complete Evaluation Forms * Adjourn

LL151028WEB • Making Your Old Business Plan Sing • iv

Faculty Biographies

Charity AnastasioCharity Anastasio graduated from Th e University of Washington with a BA Degree in English in 2001 and Seattle University School of Law in 2007. She opened her practice in 2008 where she focused on Estate Planning, Probate, and Family Law issues in her Kirkland offi ce. In 2013 she joined the WSBA’s LOMAP team as a Practice Management Advisor. Now she has the honor of meeting lawyers where they are at in their newly budding, transitioning, or winding up of their solo or small fi rm, assisting lawyers in making their practice fl ourish and their dreams come true. You can reach Charity at [email protected] or 206-733-5949.

Eleanor H. DoermannEleanor founded her law practice, Pathway Law, PC in 2013 aft er graduating from Seattle University School of Law in 2012. She came to the practice of law aft er 25 years as a physical therapist at Swedish Medical Center. She earned an undergraduate degree in History of Science from Harvard in 1981 and a Physical Th erapy degree from the University of Washington in 1988. Her current law practice combines a focus on elder law including estate planning, probate, and benefi ts advocacy with a passion for addressing post-DOMA legal needs of the LGBT community.During law school Eleanor was a student volunteer with the newly formed Moderate Means Program. She externed with now Justice Mary Yu at the King County Superior Court, and she participated in the Civil Rights Amicus and Advocacy Clinic through the Korematsu Center. Aft er graduating Eleanor completed the advocacy report started in that clinic, working with the Forks Human Rights Group to document experiences of the Latino community with the U.S. Border Patrol on Washington’s Olympic Peninsula. Th e report was published in December, 2013.Eleanor was selected to participate in the fi rst cycle of the SU Law School’s Incubator Program for 2014, established to support recent SU graduates in establishing solo practices serving clients of moderate means.

Olga K. OwensOlga K. Owens is a recent graduate of Seattle University’s School of Law. In 2014 she launched the Patient Law Advocate, PLLC, an advocacy fi rm focusing on helping patients and families navigate the medical and insurance systems. She has contributed to the patient safety and advocacy fi eld for over fi ve years, as a patient and family advisor with Seattle Children’s Hospital and the Foundation for Healthcare Quality. Since 2012, she has worked with the University of Washington’s School of Medicine on the HealthPact Initiative (www.HealthPact.org), creating a new paradigm for resolving disputes aft er an unexpected healthcare outcome.

Bret SachterBret Sachter received his law degree from the Seattle University School of Law. In addition to his law degree, Bret holds a bachelor’s degree in evolutionary psychology and master’s degree in psychology. Recently, Bret was honored to have his law offi ce admitted into the Seattle University School of Law “Incubator Program” for its inaugural year. Empowered by this amazing new program’s support, Bret

Biographies continued on next page

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is proud to be able to off er sliding scale pricing mechanisms aimed at broadening his accessibility.In pursuit of enriching his academic experiences, Bret has spent extended time studying and working abroad. During his undergraduate education, Bret studied in Costa Rica, Burkina Faso, Mali, and Th ailand. During law school, Bret participated in a joint program with Universidad Rafael Landivar, located in Guatemala City, Guatemala, where he completed courses on Latin American legal history and the Central American Free Trade Agreement, taught entirely in Spanish.Aft er law school, Bret held an associate position at a small Seattle immigration fi rm where he benefi tted from working with a diverse client base and gaining experience in the courtroom. In 2013, Bret struck out on his own so he could focus on the direction he wanted his legal career to take. As he had successfully started and run a business prior to attending law school, he was excited to start his own fi rm in this thriving city. Bret also sits on the board of a local non-profi t public charity.Outside of work, Bret enjoys spending time with his wife and twin daughters, cycling, scuba diving, snowboarding, raft ing, and just generally getting into the wild outdoors whenever he has the chance.

Biographies (continued)

CHAPTER ONE

MAKING YOUR BUSINESS PLAN SING

October 2014

Charity Anastasio, Practice Management Advisor Washington State Bar Association

Phone: 206-733-4959

Email: [email protected] CHARITY ANASTASIO graduated from The University of Washington with a BA Degree in English in 2001 and Seattle University School of Law in 2007. She opened her practice in 2008 where she focused on Estate Planning, Probate, and Family Law issues in her Kirkland office. In 2013 she joined the WSBA’s LOMAP team as a Practice Management Advisor. Now she has the honor of meeting lawyers where they are at in their newly budding, transitioning, or winding up of their solo or small firm, assisting lawyers in making their practice flourish and their dreams come true. You can reach Charity at [email protected] or 206-733-5949. Opinions expressed herein are the author’s and do not necessarily represent the official or unofficial position of the Washington State Bar Association (WSBA) or the WSBA Office of General Counsel. Members seeking guidance or information about Law Office Management may contact WSBA Law Office Management Assistance Program at 206-733-5914 or [email protected].

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mailto:[email protected]

CONTENTS INTRODUCTION .......................................................................................................................... 2

CLOSED FILE AUDIT .................................................................................................................. 4

CASE: .............................................................................................................................................. 4

WORK:............................................................................................................................................. 5

CLIENT: ........................................................................................................................................... 6

MONEY: ........................................................................................................................................... 7

MARKETING RESEARCH ........................................................................................................... 9

FORMER CLIENT INTERVIEW .......................................................................................................... 9

POTENTIAL CLIENT INTERVIEW ................................................................................................... 11

REFERRAL SOURCE INTERVIEW ................................................................................................... 12

POTENTIAL REFERRAL SOURCE INTERVIEW ................................................................................ 13

SELF AUDIT CHECKLIST ......................................................................................................... 14

THE PROBLEM ........................................................................................................................... 26

THERE IS A SOLUTION ............................................................................................................ 27

LAW FIRM BUSINESS PLAN TEMPLATE ............................................................................. 28

COMMON PROBLEMS AND THEIR SOLUTIONS ................................................................ 34

INTRODUCTION

No matter how good you are or how brilliant your idea for a firm is, there will be surprises after you start. You think one set of clients will flood in, but instead you get another set. You are impressed with one online marketing strategy at the beginning, only to be horrified six months later when the company is bought out and changes everything. Things change, assumptions are challenged by reality. Your business can be made better--more resilient--when you face these challenges.

But how do you face these challenges? You pull out the business plans and rework it. This is a living document that can help you get where you want to go. To grow and thrive, you should be

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forever addressing and solving the problems you encounter with a plan of action. Think of it as your homework to firm growth. This is when your Business Plan becomes more of a Major Projects Plan.

Here are five points to make your plan more effective and shiny. Following these are a series of audits in workbook style that will help you collect the data you need to do these, and get to the root of the issues you face in your firm more effectively.

Start with your audience. If the plan is just for your eyes only, then think of it as what you look to when you have a terrible day and start doubting your sanity in opening the practice. It should tell you why this will work. But it should not be a self-centered work. Even though your brain is the most substantial service you offer, it is what the client gets from hiring you that matters most. If the plan is just to convince you, then you are the audience and that is fine. But if it is anyone else (e.g. marketing expert, It specialist, potential clients, collaborators, contracting officials, potential key employees, referral sources) write to that relationship.

Persuade on value offered. The business world calls this the value proposition. Show what problem you solve for clients and why your resolution is better than your competitor’s resolution. Focus on your audience (again) and what makes them “act favorably.” This is, in other words, setting up client expectations and explaining your services and fees persuasively.

Give both sides of the argument. Explain what hurdles your firm faces and how you plan to overcome them. I think of this as the to-do list. State challenges authentically. State why you will be successful—how you will overcome them. The audits and the marketing research below will be crucial in figuring these items out.

Talk about the money. A business plan should include some numbers—expenses, what you expect to bring in, pay yourself, pay back to the business, fee schedule(s). The numbers don’t need to be perfect, but they should be realistic, so use data from previous months or years to see trends and make adjustments.

Address connections in community. It should also contain your networking and marketing plan. Your target client base and target referral sources should be outlined and researched. Consider a wider set of referral sources than just other lawyers. Brainstorm who interacts with your client base upstream from you and figure out how you can talk with them about what you do and how you can help the folks they see daily with the problems they have. (As an aside, I always think of the Rules of Professional Conduct at this point that state we are not to offer services without a relationship, but isn’t that darn good advice in the business world too?) Don’t sell. Be authentic and brilliant and bold

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about who you are and what you do. And do it with strategic people in your community. That is building relationships. Then, when they need legal help in your vein, they can come to you because they know you.

CLOSED FILE AUDIT Here is a file audit series of questions that will help you mine your old file for key data

your business needs to grow. Fill it out for three to five files at a time until you have done about two to three dozen.

(The perfect number is the one that gives you a sense of purpose and direction, that gives you the epiphany you have been searching for in those old files.)

This is a method for learning from your mistakes and reflecting on what works and what does not that can have huge results.

File Name Client Names Referred by Date opened Date closed Practice Area Total time logged Total billed Total discounted Total collected

The story of this case…

CASE: Should I have taken this case? Reasons?

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If I should not have taken this class, what were the red flags I should have spotted?

Were there elephants in the room that I should have discussed, but avoided? Like what?

What would I have done differently if I took this file today?

Did I stress about this case? Lose sleep or worry about it? Why?

Are there any documents I can repurpose in this file? Which ones?

What lessons did I learn from handling this case?

WORK: Did I like the work or not? Reasons?

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Was anything shiny about this case for me?

Was I good at resolving this case? Could I have been better and how?

Could I build a practice doing just this? How?

Should I become an expert in this work? Why?

If I didn’t like the work, how can I avoid it in the future?

CLIENT: Did I like this client? Reasons?

Did the client like me? Reasons?

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What do I think this client would say about me to his/her peers?

What lessons did I learn from handling this case?

Does this client have other legal needs I could fill? List them.

Does this client have friends, family, or colleagues that have legal needs I could fill? List them.

How could I have served this client better?

MONEY: Was this matter profitable?

Did I bill timely? Was the account stale? Uncollected?

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Did I give a fee estimate? If yes, was it close? If no, would it have been close if I had?

Did any unforeseen events increase the fee some/greatly? Could it have been anticipated?

Did I discount any of my work? Reasons?

Did the client feel my fee was fair? Reasons?

What fee structure did I use? Is this case eligible for another fee structure? Desirable change?

How could I have priced this differently?

What else did I learn in this case? Takeaways?

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MARKETING RESEARCH

Marketing research is crucial to the understanding of both your law firm’s reception in the community and where your firm fits in the community.

Here are model questions that can help you collect the data you need as far as marketing is concerned.

You can ask as many or as few of your former clients, potential clients, referral sources, and competition these questions as you wish, but realize that you get out of it what you put in. It does not take a huge number to see patterns.

You can also do questionnaires online with Survey Monkey or on paper, but a phone conversation seems to have a better response rate.

The mere process of asking will increase referrals. It says you care about your clients, your performance, and you are looking to increase business.

You may delegate this to another if you are squeamish about hearing the results or you want folks to feel more comfortable answering honestly on negative responses. Or you may want to have a “please be honest” part in your script. It is better to hear what people are saying about you than have them say it and you not know.

Do consider secret-shopping your competition to see, at a minimum, what they say on the phone to potential clients.

FORMER CLIENT INTERVIEW Hello. As you know, I/my firm represented in in ______________ matter which concluded ___ _ weeks/months ago. I was hoping you might be able to answer a few quick questions to help me improve my services and business model. Do you have five/ten minutes to chat now or another time about this?

Were you satisfied with my representation of you in your matter? Why or why not?

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Did you feel I understood the law and intricacies of your case sufficiently? Why or why not?

Did I keep you informed in your case? Did you feel in control of the decisions?

How did you feel about my billing? Was it timely? Was it fair?

What was the worst part of my representation of you in this matter?

What was the best part of my representation of you in this matter?

Would you recommend me to your peers if they had a similar matter? Why or why not?

What do you think I should do to improve my business or to get the word out?

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Anything else you would like me to know?

POTENTIAL CLIENT INTERVIEW Example 1: Hello. I/my firm is conducting some market research into what the client needs are in your community. I identified you as someone who would likely need/want my services because __________. Would you have a few minutes to answer questions to help me improve my business model? Is now an okay time to talk?

Have you ever used a lawyer to do _____________? Why or why not?

Do you need ______________ legal services?

What do you think is a fair price for ______ services?

How do you decide to go with a certain lawyer? What would you like to see in your lawyer?

Example 2: Hello. We met awhile back because you were considering hiring me for your _____ matter. In the end you decided to not go with me and I respect that. It would be extremely helpful for me if you would be willing to talk with me for a few minutes about why you went with someone else, so that I can improve my services and business model. Do you have a few minutes now or another time?

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At the end of our appointment, was your matter clear to you? Were my services clear?

Did you understand approximately how much your case should and could cost?

What do you think I should do to improve my business or services?



REFERRAL SOURCE INTERVIEW Example 1: Hello. We have worked for a number of years together on/through _____________ (or known each other…) and you have referred clients to me in the past. Thank you for that, by the way. I would like to find out how I could improve my services and increase my referrals. Would you have a few minutes to answer questions to help me improve my business model? Is now an okay time to talk?

What types of cases are you comfortable referring to me? Are there any you are not?

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POTENTIAL REFERRAL SOURCE INTERVIEW Example 1: Hello. We have worked for a number of years together on/through _____________ (or known each other…). I am looking to increase my business and improve my services. Would you have a few minutes to answer a couple questions that will help me? Is now an okay time to talk?

Would you be comfortable referring _________ cases to me? Why or why not?


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Is there anything you need from me in order to feel more comfortable referring to me?


SELF AUDIT CHECKLIST Here is the Self-Audit Checklist created by the Law Office Management Assistance

Program of the Washington State Bar Association. The Self-Audit Checklist is going to ask you a series of questions. Answer honestly and

thoughtfully. Strip away any denial you have about your policies and procedures right now and go for

the complete (sometimes ugly) truth. It is absolutely fine to make this for your eyes only. If you can do this with courage and honesty, you start a journey of improvement to the

health and culture of your law firm that will be profound. Wonderful change can come of this if you go for it. But you first must admit you have a

problem….

This completed form will describe your office administrative practices and offer a fresh look at your firm’s current functions. Consider asking your staff and other lawyers to complete a copy of this Checklist. A number of the responses may vary from yours. That is not unusual. This exercise should foster a better mutual understanding of what goes on in your office and enhance your practice. Name of Firm ________________________________________________ Name of person completing this audit? _____________________________________

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Firm Elevator Pitch: ___________________________________________________________________________________________________________________________________________________________________________________________________ _________________________________________________________________ _________________________________________________________________ Firm Mission Statement: _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ _________________________________________________________________ _________________________________________________________________

Lawyer Names Practice Area(s)

Staff Names Job Title

Write Always (A), Sometimes (S), Never (N), Not Applicable (N/A), Yes (Y), or No (N) where applicable, in the boxes next to the questions.

1. Client Relations is the most important aspect of a law office. Everything that happens in a law firm has a direct or indirect effect on the client.

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CLIENT RELATIONS 1.1 Do you discuss communication with clients such as:

a) Conflicts of interest? b) Confidentiality? c) Use of email/telephone/text? d) How clients will be kept informed? e) Possible emergencies and how to handle them?

1.2. Do you inform staff of client communication preferences? 1.3. Do you introduce clients to staff? 1.4. Do you discuss fees and billing procedures in the first meeting with the client? 1.5. Do you provide clients with a written Agreement of Representation that includes:

a) Identification of client and lawyer? b) A detailed scope of representation? c) Clear terms for attorney fees and costs? d) A statement that no specific result is guaranteed? e) Expectations of lawyer to client and client to lawyer? f) Acknowledgement? (Signed by both parties)

1.6. Do you have written communication procedures? 1.7. Do you or your staff return clients phone calls and/or emails within 24 to 48 hours? 1.8. Do you maintain an Active Case File List? 1.9. Do you send follow-up letters documenting any conversation where important decisions were reached?

1.10. Do you complete the work in a timely fashion? 1.11. Do you copy clients with your work product and correspondence? 1.12. Do you follow up with clients when their case is inactive? 1.13. Do you send a closing letter at the end of each matter telling the client: a) The representation is complete? b) What additional actions the client must take? c) The firm’s file retention policy? d) Thank you and request for referrals and feedback?

Notes _________________________________________________________________________

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Write Always (A), Sometimes (S), Never (N), Not Applicable (N/A), Yes (Y), or No (N) where applicable, in the boxes next to the questions. 2. Clients depend on you to safeguard the information they provide. Trust is very difficult to reestablish once it has been broken so it is important that you take steps to ensure that every member of the firm does all they can to safeguard client information. CONFIDENTIALITY 2.1. Do you offer training and materials to staff to assist them in understanding, spotting, and helping the firm avoid confidentiality breaches?

2.2. Have you discussed confidentiality with landlords, other tenants, interns, volunteers, and employees, including family members who work for or assist you?

2.3. Have those you discussed confidentiality with a signed confidentiality acknowledgment?

2.3. Do you ensure client files and confidential materials are never left unsecured in common areas?

2.4. When conferring in person with clients do you avoid taking calls or otherwise talking with other clients so as to protect client identities?

2.5. Is the office locked every night? 2.6. Is email marked “Confidential Privileged Communication”? 2.7. Are fax machines, copiers and mail located where non-firm persons will not be able to see confidential materials?

2.8. Do you use passwords to protect client confidences on all applicable devices and services?

Notes _________________________________________________________________________

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Write Always (A), Sometimes (S), Never (N), Not Applicable (N/A), Yes (Y), or No (N) where applicable, in the boxes next to the questions. 3. Establish and maintain a comprehensive conflict of interest system. All staff should be trained to use the system. Conflict checks should be done prior to the discussion of any new matter with a client or potential client. CONFLICTS OF INTEREST 3.1. Do you maintain a continuously updated client list or database of current and former clients?

3.2. Do you offer training and materials to staff that assist them in understanding, spotting, and helping the firm avoid conflicts of interest situations?

3.3. Do you include names and addresses of corporate client officers and directors? 3.4. Do you have screening procedures in place that screen a conflicting lawyer from the inception of a case?

3.5. Do you properly identify and maintain information regarding all adverse parties? 3.6. Do you request and record information regarding former or other names of clients and adverse parties (e.g. maiden, marital, alias, d/b/a, f/k/a, a/k/a, etc.)?

3.7. Do you check your conflicts of interest list or database before accepting a new client or matter?

3.8. Do you have written a policy and procedure for when a conflict arises? a) Does it address declining representation? b) Does it address potential conflicts of interest? c) Does it address conflicts that arise after representation starts and what will happen

next?

3.9. Do you explain your conflicts of interest procedure to clients in writing? Notes _________________________________________________________________________

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Write Always (A), Sometimes (S), Never (N), Not Applicable (N/A), Yes (Y), or No (N) where applicable, in the boxes next to the questions. 4. Missing a filing deadline or court appearance is damaging to a client as well as causing embarrassment and a potential malpractice claim. Each firm member should maintain an individual calendar in addition to a master calendar for the entire firm. DOCKET/CALENDARING 4.1. Do you keep individual calendars for each employee? 4.2. Do lawyers in the firm have a dual calendar system? 4.3. Does your calendar include (as applicable):

a) statutes of limitations? b) discovery and filing deadlines? c) administrative hearings? d) court appearances? e) appointments? f) practice area specific deadlines and dates? g) self-imposed or discretionary deadlines?

4.4. Do you maintain a master (firm wide) calendar? 4.5. Do you calendar blocks of time to work on projects? 4.6. Do you calendar blocks of time to work on your business? 4.7. Do you have a tickler system for deadlines that works for you? 4.8. Are you able to access your calendar remotely? 4.9. Are key staff able to access your calendar when needed? Notes _________________________________________________________________________

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Write Always (A), Sometimes (S), Never (N), Not Applicable (N/A), Yes (Y), or No (N) where applicable, in the boxes next to the questions. 5. Whether it is electronic or paper, organized case files are the bedrock of a successful law office. RECORDS MANAGEMENT 5.1. Do you have standardized naming conventions for your electronic files (e.g. last name_subject or file#_subject or subject_name_drafter)?

5.2. Are your files organized and easily searchable? 5.3. Are your paper files easy to navigate? 5.4. Do documents get filed in case files in a timely manner? 5.5. Do you store files in a safe location free from unauthorized access and potential damage (e.g. water or rodents)?

5.6. Do you have a backup system that includes three points of backup on a daily basis? 5.7. Does each file contain a checklist detailing steps and obligations for that file? 5.8. Do you have a written documents retention policy that addresses:

a) How to cull and close a file? b) Returning originals to clients? c) Practice area specific destruction dates?

Notes _________________________________________________________________________

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Write Always (A), Sometimes (S), Never (N), Not Applicable (N/A), Yes (Y), or No (N) where applicable, in the boxes next to the questions. 6. It is critical to your success that your staff is well trained and motivated to provide excellent service to clients. Express to staff that the client’s interests are always affected by the work done by the entire office. STAFF MANAGEMENT 6.1. Do you have a written:

a) Policies and procedures manual? b) Job descriptions for each support staff position? c) Termination procedures? d) Provisions for overtime, sick leave, and medical insurance?

6.2. Do you inform employees of the ethical requirements of working in a law office environment and clearly communicate their limits and boundaries as support staff personnel?

6.3. Do you require employees to read the Rules of Professional Conduct that are applicable to their positions?

6.4. Do you offer your staff continuing education opportunities? 6.5. Do you clearly communicate expectations of performance to all employees? 6.6. Do you encourage and invite feedback from your employees? 6.7. Do you properly supervise and review their work? 6.8. Do you lead by example? 6.9. Do you express appreciation to employees for work well done? 6.10. Do you make sure any error correction is shared privately in a timely and constructive manner?

6.11. Do you have regular meetings with employees? 6.12. Do you conduct regular performance appraisals (at a minimum, annually)? 6.13. Do you train and assist staff in de-escalation of upset parties? 6.14. Do you maintain a personnel file for each staff person? 6.15. Do you conduct appropriate background checks before hiring key staff? 6.16. Do you have written provisions for overtime, vacation, sick leave, and medical insurance?

Notes _________________________________________________________________________

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Write Always (A), Sometimes (S), Never (N), Not Applicable (N/A), Yes (Y), or No (N) where applicable, in the boxes next to the questions. 7. Timekeeping, billing, budgeting, and financial recordkeeping/reporting should be coordinated to produce an efficient accounting and recordkeeping system. FINANCIAL MANAGEMENT 7.1. Do you use time and billing software? If so, what do you use? 7.2. Is time recorded contemporaneously? 7.3. Do you have a schedule of what tasks are billable and non-billable? 7.4. Are costs posted to client files in a timely manner? 7.5. Are discounts (write-downs) shown on the bill? 7.6. Are bills sent out on a regular schedule? 7.7. Are payments and credits posted to client files timely? 7.8. Are the accounts receivable evaluated and client follow-up done? 7.9. Do you have checks and balances in place for cash handling and other accounting functions?

7.10 Do you have a written fee schedule? 7.10.1 Do you do:

a) Flat fee work? b) Contingent? c) Hourly?

7.11. Are credit cards accepted for payment? 7.12. Are client funds kept in IOLTA (i.e. lawyer trust account)?

a) Who are the signatories on your trust account? b) Do you reconcile it monthly?

7.13. Do you have an annual gross fees budget? (i.e. a plan for annual firm income) Notes _________________________________________________________________________

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Write Always (A), Sometimes (S), Never (N), Not Applicable (N/A), Yes (Y), or No (N) where applicable, in the boxes next to the questions. 8. Finding a balance between your home life and work life and taking care of yourself is essential to having a sustainable, satisfying practice. PROFESSIONALISM & SELF CARE 8.1. Do you conduct conflict checks prior to giving legal advice to potential clients? 8.2. Do you have confidentiality agreements for cleaning services, contract workers, IT services, and interns?

8.3. Do you have a designated back-up attorney for: a) Vacations? b) Emergencies? c) Disability? d) Death?

8.4. Do you regularly seek out continuing legal education relevant to your practice and professional development?

8.5. Do you use the WSBA Ethics Line (206-727-8284)? 8.6. Do you clearly communicate the recommended course of action with your clients? 8.7. Do you document your clients’ choice of action in writing, particularly when it is adverse to your advice?

8.8. Do you follow up on assignments given to others? 8.9. Do you keep your clients informed of the status of their cases? 8.10. Do you set aside time to:

a) Work on cases? b) Work on the business? c) Just think?

8.11 Is a work-life balance something you feel you achieve more often than not? 8.12 Do you have a mentor? 8.13 Do you have a mentee? Notes _________________________________________________________________________

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Write Always (A), Sometimes (S), Never (N), Not Applicable (N/A), Yes (Y), or No (N) where applicable, in the boxes next to the questions. 9. A lawyer’s professional competence includes the adequate use of technology such as using passwords, backing up data, and removing metadata from electronically transmitted files. TECHNOLOGY 9.1. Do you turn off or log off of all computers at the end of the day? 9.2. Do you use a networked calendar program? If so, what do you use? __________________________________

9.3. Do you use practice management software? If so, what do you use? __________________________________

9.4. Do you use consistent naming conventions for both electronic and paper files? 9.7. Have all staff been trained on your computer and software programs? 9.8. Do you use computer virus filters and a firewall? If so, what do you use? _________________________________________

9.9. Do you remove inappropriate metadata before emailing attachments? 9.10. Do you use a password to access Windows or OS X? 9.11. Do you have BYOD (bring your own device) policies in place? 9.12. Do you have policies in place regarding personal use of work computers by staff? 9.13 Do you have two-part password verification? 9.14 Do you use a password manager? 9.15 Do you convert your documents to .pdf before sharing them? 9.16 What devices do you ‘do work’ (e.g. communicate with clients, draft documents &c.) on?

9.17 Do you have three points of back-up? 9.18 Do you review the terms of service for your vendors of electronic services or products?

9.19 Do you use encryption on: a) Your emails? b) Your stagnant files? c) Your cloud files? d) Individual Word documents? e) Individual .pdf documents?

9.20 If you use encryption, how do you communicate the password? Notes _________________________________________________________________________

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Write Always (A), Sometimes (S), Never (N), Not Applicable (N/A), Yes (Y), or No (N) where applicable, in the boxes next to the questions. 10. A well-crafted marketing plan is essential to the growth and development of your practice. MARKETING AND BUSINESS PLANNING 10.1. Does your firm have a defined response to the question, “What kind of law does your firm practice?”

10.2. Do all employees have business cards with titles? 10.3. Do you have a firm website? 10.4. Is your brand consistent across all of your communications (i.e. letterhead, business cards, website, advertising, etc.)?

10.5. Does your firm utilize social media platforms? If so, which ones?

10.6 Do you regularly network with other attorneys? 10.7. Do you regularly network with professionals who relate to your practice area? 10.8. Do you stay in contact with former clients? 10.9. Do you ask new clients how they found you? 10.10 Have you identified a mission for your firm? 10.11 Do you have a vision for the future of your firm? Notes ________________________________________________________________________

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THE PROBLEM

You have braved the Self-Audit Checklist and you have a few things that could be improved in your firm.

Make a list of the things you want to improve below. State the risks and negative impacts in the next columns.

The Issue Risks (of continuing like this) Negative Impacts (of the issue)

Example: Not enough business, up and down business.

Go out of business. Not be able to pay bills. Not path to growth.

Hurts moral of firm. Leaves me financially vulnerable. Raises stress level

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THERE IS A SOLUTION

Next brainstorm the ways you can effectuate change on each issue. Think simple steps, tasks with measurable targets as an end result.

State the positive impacts the changes will have. Finally, prioritize the changes for you. This will help you make a plan.

Changes Brainstorm Positive Impacts Priority Market my firm online on nolo.com Build website Make presentations to local organizations Develop a flyer Ask clients where to find referrals, where to find clients. Ask referral sources the same. Join a section and go to meetings.

Give me more income Test my assumptions Improve my work life Grow the firm….

(1 thru however many issues you identify.)

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Here is a Law Firm Business Plan Template. Business Plan is an unfavorable word to many of us. It sounds like the worst kind of

work--the kind we do not know how to do yet and do not have time to figure out. The good news is that a business plan can be as simple or complex as you want it to be,

and that it will help you get where you want to go. Think of it as a Major Projects Plan instead, if that is more comfortable. Take your top priority change you want to make and write out the plan for changing that

one thing in your firm.

LAW FIRM BUSINESS PLAN TEMPLATE

1. Executive Summary [Although this is the first section of a business plan, it should be completed last. You will be using information gathered throughout the rest of your plan to complete the Executive Summary. This section is especially important if you try to obtain financing. In that situation, the Executive Summary is your chance to catch the attention of a lender with a positive first impression of you and your business plan. This is an impressive, persuasive, concise argument for the business.]

a. Law Firm Description [A one paragraph elevator pitch describing your firm.]

b. Vision & Mission [Macro-level view.]

c. Practice Area(s)

d. Target Clients

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e. Key Players

f. Unique Characteristics

g. Marketing Strategy

h. Financial Forecast

2. Key Players

a. Attorneys

Name Partner/Associate/Contract Compensation FTE

b. Support Staff

Name Title or Function Compensation FTE

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c. Outside Professionals/Consultants

Specialty Name Rate Frequency Bookkeeper CPA IT Specialist Website Designer Practice Mgmt

3. Key Market Considerations

a. Initial Practice Areas [Don’t make your focus too broad or too specific.]

b. Possible Future Practice Areas [What areas would be considered a natural progression from your initial focus?]

c. Client Demographics [Who is your ideal client? Where are they located?]

d. Market Size [Within your geographic reach, how many potential clients match your target demographics?]

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e. Competition [What other attorneys are already serving this client base?]

f. Uniqueness [What is it that makes your firm stand out from the crowd?]

g. Marketing Plan

4. Financial Forecast

a. Start-up Expenses Item Estimated Cost Buy or Lease Legal Fees to Establish Business Entity Business License Office Space/Furnishings Security Deposit Renovations Desks/Chairs Conference Table/Chairs Filing Cabinets Reception Area Seating Office Supplies/Equipment Laptop/Desktop Monitor Software Scanner Printer Postage Machine Office Supplies Cleaning Supplies

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Coffee service Initial Marketing Business Cards Website Creation Letterhead Signage Announcements Other Total Start Up Expenses

b. On-going Expenses Item Monthly Annually Staffing Expenses Wage & Salary Partners Associates Contract Attorneys Paralegals Bookkeeper Other Payroll Taxes Unemployment – State & Federal L&I Medicare Social Security Employee Medical Insurance Employee Retirement Plan Other Employee Benefits Operating Expenses Rent/Mortgage Utilities Electric Natural Gas/Propane Water/Sewer Garbage Telephone/Landline Telephone/Cellular Internet Janitorial Services

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Post Office Box Rental Advertising/Marketing Insurance Health Premises Professional Liability Office Supplies Legal Messenger Service Legal Research CLE & Training WSBA Licensing Fees Travel Taxes City Business & Occupation Total On-Going Expenses

c. Fee Structure Type Rate % of Practice Monthly $ Goal Contingent Hourly Flat Fee Low Bono Pro Bono Projected Gross Annual Receipts (earned fees before expenses are deducted):

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COMMON PROBLEMS AND THEIR SOLUTIONS Here is a list of Common Problems that creep up in law firms and solutions to them. It is to get your mind started towards the solution and is in no way an exhaustive list of

problems or solutions.

Client Communication

SOLUTIONS

Clients complain that you are not calling them to inform them of their case enough.

Clients say you do not return calls fast enough.

Clients say you do not ask their opinion or wishes in their case.

Client says you do not explain things sufficiently to them.

You are concerned you are not keeping clients sufficiently appraised of their case, but cannot figure out when or how you will do more.

Set aside time every day to make phone calls and contact clients about their case.

Set up client expectations for how and when you will contact them and how you prefer to communicate from the first interaction.

Explain to the client that she sets the goals of the case and makes decisions like plea bargains and settlement, but that you determine the strategy and legal aspects of how to reach that goal.

Reiterate those expectations in your fee agreement/engagement letter.

Create a spiel you tell clients when they communicate too little or too much.

Be receptive to the criticism that you are not keeping them informed and say “I understand. How would you like me to communicate with you better?”

Hire staff and instruct them to call clients to give case status updates.

Hire a virtual receptionist that takes calls so clients do not just get voicemail.

Hire contract attorneys or paralegals to work on demanding projects or cases.

Hire administrative staff, IT support, or bookkeepers to complete the work that you need not complete yourself.

Get practice management software that has a client portal where clients can log on to get status updates at any time.

Take fewer (better) cases. Create methods for filtering desirable potential

clients from undesirable potential clients swiftly. Only take choice clients. Review the Rules of Professional Conduct

regularly and consider whether you are communicating with clients enough.

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Fee Agreements

SOLUTIONS

Not using fee agreements regularly. Not using fee agreements ever. Not having a clearly defined scope of

representation. Using the wrong form letter for fee

agreements (e.g. a flat fee agreement when hourly was intended).

Not having a well defined, detailed scope of representation.

On flat fee agreements with a broad scope of representation, not setting out phases of the scope and setting “prices” for each phase.

Not setting out expectations the client may have of you or that you may have of the client regarding communication, availability, confidentiality, and case assistance.

Not having a fee agreement your client can understand, considering disabilities, language proficiency, and/or education.

Write your policies and procedures for fees first. Then write your agreement to comply with them.

A well written fee agreement does not only set out the parameters of the relationship. It also shows off your services. Strike a balance between contract language and friendly language.

Break your scope or representation into its components.

Yes, get sample form letters from colleagues. No, do not assume your colleague’s fee agreement

is perfect for you. Do not use sample form letters from colleagues without careful reading, comparison, and thoughtful editing to make them your own, branded to your firm and ethically in line with your practice area and practice model.

Tailor the agreement to the client. It is good advertising to have an excellent contract.

Keep your form pure by starting from a clean document every time so that you do not inadvertently miss changing something key.

Use accessible language in your agreement. Aim for an eighth grade reading level or less (can check in Word).

Have your fee agreement interpreted and written into your clients’ primary language if you represent a certain demographic regularly.

Explain your fee agreement verbally to clients. Be careful and thoughtful about your fee

agreement. Revise it regularly.

Closing Letters

SOLUTIONS Not using a closing letter. Sporadically using a closing letter. Not stating that the attorney client

relationship is now over. Not reiterating what you did for the client. Not explaining to the client any actions she

should take on her own to complete the matter (e.g. change beneficiary designation forms, file a certain form, follow up with

Send a closing letter for every client. Have it state 1) the actions you took (hopefully

the full scope of representation but not if you are parting ways before it is complete), 2) the attorney client relationship is now ended, 3) any actions she needs to take and statutes of limitations pending, and 4) the document retention policy.

Ask for the referral and feedback. You often will not get it, but if you do, assume more than this one

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other counsel on another aspect of the case, etc.)

Not informing her of any statute of limitation.

Not informing her of the firm’s document retention policy.

client is thinking what she is thinking. Make it friendly and formal, similar to the fee

agreement (see above).

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Breach of Confidentiality

SOLUTIONS

Not discussing confidentiality with landlords, tenants and office mates, and cleaning staff.

Not training employees, contractors, vendors, and interns on confidentiality.

Not discussing confidentiality with potential clients.

Discussing a case with a mentor or colleague in too much detail.

Disclosing on a listserv too much identifiable information, esp. when opposing counsel may be on the listserv.

Leaving client files in common areas where clients and the public can see them.

Not locking client files up when not in use. Not password protecting laptops,

smartphones and other devices with client information.

Not guarding confidences in emails. Unintentional disclosure through doing

work in public or while traveling.

Have the discussion with all those who are peripheral, but in contact with clients and clients’ confidential information. Have them sign an acknowledgement of the conversation and obligations they must adhere to.

Create training that explains confidentiality to staff and contractors. Do not rely on previous experience and knowledge when you hire, unless you can verify the procedures they worked with adhere to your own.

Discuss cases with mentors in hypothetical terms and conceal data that is not relevant to your questions.

If you need greater assistance than a hypothetical can offer, consider a formal association with that lawyer where she can do a formal conflicts check and be brought in on the case.

Be circumspect about what you ask on a listserv. Choose your words carefully. Do not email it unless you would be comfortable seeing it on the front page of the New York Times tomorrow.

Get locking filing cabinets. Put them in non-public areas of the firm.

Lock files up whenever they are not in use. Do not turn on the WiFi on if you have work email

or calendar on your smartphone. Use 4G instead. Download antivirus and malware on all your

devises and do regular scans. Lock down your cloud computing with encryption

that only you have the key to unlock. Use attachments to emails for confidential

communications and password protect the attached document.

Put PRIVILEGED ATTORNEY CLIENT COMMUNICATION in the subject line of privileged communication emails.

Review your cloud provider’s service agreement and security measures closely and often.

Educate your clients about what confidentiality means and why they should protect it.

If you travel often, use a privacy screen protector to guard against data being shared with an onlooker.

If you are on the bus, do not edit confidential

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information with someone sitting close. Be vigilant about protecting client confidences. Read the Rules of Professional Conduct annually,

or more often. Call the WSBA Ethics Line at 206-727-8284 when

you have a question.

Conflicts Checking

SOLUTIONS

No conflicts check procedure in place, or a procedure that relies solely upon memory of the lawyer.

Employing the conflicts check sporadically. Not employing the conflicts check early

enough in the interaction with a potential client.

Not asking enough in the conflicts check. Having a dysfunctional conflicts check

system (e.g. several databases to check) where the conflict is not properly detected.

Not identifying a conflict when it arises. Not seeking waiver of a conflict from all

parties involved. Not executing a waiver of conflict properly. Not screening a conflicting attorney in the

firm from a case properly, or early enough. Not discussing conflicts with potential

clients. Not identifying conflicts in joint

representation or when they arise later. Not having a procedure for dealing with a

conflict when it arises.

Have a written conflicts check system in place that everyone employs religiously.

Have a written procedure for dealing with conflicts when they arise.

Ask for current names, past names, alternate names (aka), doing business as, business entities, the same information on opposing parties, opposing counsel, and any specific information unique to your practice area in your conflicts check.

Ask for information and conduct a conflicts check before you get into anything more detailed than “It appears you are in ___ area of law and __ statute applies.”

Do not talk with a person you have a conflict with. Keep in mind that there is a conflict of interest

between you and certain potential clients when their interests are opposed to yours.

Review your conflicts check system and implement improvements and changes when appropriate.

When a conflict is identified with a past client, realize that you cannot represent the new potential client without getting written consent from both past and potential clients after informing them of all the risks inherent in conflicts of interest, specific to their cases.

Educate your clients about conflicts of interest, that you did a check, potential conflicts that can arise later, and the steps you take when they do arise.

When there is a clear potential for conflict, explain the risks to the potential client and put it in writing.

If it is determined early on that one lawyer in the firm is conflicted out, implement screening

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procedures before she has any knowledge of the case, do not discuss the case with or around her, and do not split any fees from that case with her.

If a lawyer in the firm is conflicted out and was not screened from the case early on, do not take the case. The conflict is imputed to all lawyers in the firm.

Be ever vigilant about spotting and avoiding conflicts of interest.

Read the RPCs annually and when you think a conflict has arisen.

Call the WSBA Ethics Line at 206-727-8284 when you have a question.

Missing Deadlines or Appointments

SOLUTIONS

Disorganization and poor time management. Not calendaring everything that should be

calendared. Not calendaring things timely or

consistently. Not checking the calendar regularly or

effectively. Not having the tools to do the work. Not hiring staff when there is too much

work. Taking on too many clients without

considering capacity. Suffering from the 800 pound file (i.e. the

case or client you cannot stand to look at). Not withdrawing when appropriate. Having personal problems bleed into work. Not engaging in sufficient self-care. Not enjoying your work. Not asking for help.

Do spend time every week organizing your files and office.

Consider different time management techniques and tickler systems until you find ones that work for you.

Schedule time for tasks. Analyze if it was sufficient time to complete the tasks and adjust if it was not.

Visit YouTube and Microsoft Office for short tutorials on Outlook Calendaring techniques. Or take a class.

Regularly improve your technological know how and apply new things that work.

Use categories and flags to emphasize important deadlines and appointments.

Calendar all discovery and other deadlines, hearings, appointments, statutes of limitations, and other key dates when you open the file or as soon as you get them pinned down.

Do audit the technology the office is using and ask for help from the Law Office Management Assistance Program, colleagues, and others in determining if there are improvements you could make to simplify tasks and improve workflow.

Do consider alternatives to hiring full time staff that would permit you to have more time to do the work and use your skill set most effectively.

Schedule time to do the work.

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Know your capacity and review a complicated case against your current case load carefully before you take it on. If it will stretch your capacity, make a plan for how you manage before you send the engagement letter.

Choose your clients judiciously. Do not take anything that walks in the door just because times are tough.

When you get the 800 pound case (the case or client you cannot stand) figure out how you can either contract the work out or do it in small, manageable increments. These are the cases you must stay on top of and attend to more than ever.

When you identify an 800 pound case, consider withdrawal at the earliest detection.

Withdraw before your client is in arrears too much and when the court will still permit you to withdraw.

Do not do flat fee when cases are utterly complicated and the work amount is unpredictable.

When personal problems bleed into work, determine how you will address them proactively and head on.

When you are burnt out, take time off. When you are not enjoying the majority of your

work, ask for help and search for a solution. Be mindful of your inner workings. Ask the Lawyer Assistance Program, Law Office

Management Assistance Program, colleagues and others for help when you need it.

High Turnover of Support Staff

SOLUTIONS Not paying staff enough. Not appreciating staff sufficiently. Hiring for experience instead of talent and

personality. Hiring the wrong person, the wrong way, or

at the wrong time. Not supervising employees well. Not training and continuing to train. Not giving staff autonomy over their part of

the work and ownership of their job. Not thinking of staff as part of your team. Undervaluing the talents of each staff

person.

Pay staff well. Make a written plan for how you will appreciate

staff. Consider awards and events, but also include regular, authentic statements of gratitude and acknowledgement.

Most tasks in a job can be taught. What is difficult to teach is a good attitude and loyalty. Hire folks who are eager, enthusiastic, want to learn, and you click with.

Supervise with open ended questions that give you the whole picture, an open door policy, and have clear expectations.

Lead by example. Be a hands-on boss who does

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Not looking to improve the weaknesses of each staff person.

Not supporting staff in their work, giving them the tools they need to accomplish goals.

Not making clear your expectations. Not having an annual review and regular

staff meetings. Being crabby and difficult to work with.

the trenches work too. If you make a mistake, admit you were wrong.

Learn from it and show that process to your staff. Train where needed, not where not needed. Ask

staff what training they need and follow through in finding it when necessary.

Have a team perspective. It helps you to share the load of obligations and it gives ownership of their tasks to the employee. Even when an employee needs to present you with their work product or report back to you, she can own her half of the task wholly.

When there is cause for discipline or correction, do it privately and do not shame her. But do address it promptly and at the first cause for action. Do not let unsatisfactory behavior continue until it is a major irritant.

Do meet with staff regularly and formally. Do not save all criticisms and rewards for an

annual review. Talk through things all the time, but do an annual reflection of where you two were and where the firm and you two are going next.

Lawyers are sometimes crabby bosses to have. Be conscious of your behavior and do not think you are entitled to take it out on staff when you are in a foul mood. It should go without saying--I wish it did.

Technology Working Against Instead of

For

SOLUTIONS

Files and things are difficult to find when one searches in the computer or cloud.

Files and documents have no consistently named (i.e. from file to file or from lawyer to lawyer in the firm).

Files and documents are named in an uninstinctual way.

No initial training on technology used regularly.

No continued training on technology used regularly.

No backup of data. Insufficient backup of data Metadata not scrubbed sufficiently from

Naming conventions for electronic files should be created by the firm. They should be consistent, helpful, and intuitive. They must be searchable.

Employ optical character recognition (OCR) for PDF files, so that the entire document will be scanned for keywords, instead of just the title, when searching.

Train staff on technology. (This includes you.) Do 3 to 20 minute tutorials on YouTube or from

the makers of the product, to add to your knowledge without costing significant time and money.

Do ongoing trainings on programs you use, even when you think yourself proficient. Most software

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shared documents or files Unsecure computers or systems Bring Your Device to Work permitted

without a BYDW policy. Unsecure smartphone usage. Not capturing time sufficiently. Not billing for time captured. Not using time and billing software

religiously. Not using time and billing software at all. Not having an actual system for capturing

time. Not recording your time

contemporaneously. Not capturing time when you are out and

about. Not billing for everything you should bill

for. Discounting without telling the client. Discounting too much, even when telling

the client. Undervaluing your work because of

confidence or other roadblocks.

is wildly underutilized. If you do not use it, do not keep it. Always backup in three ways. (Two is not

sufficient any longer.) Create forms in Word or use a document assembly

program so that every document is fresh without past client metadata attached.

Change Word documents into PDFs to scrub most dangerous metadata.

Turn off track changes before you convert it to a PDF.

Password protect all computers, smartphones, and devices.

Download antivirus protection and malware detection to all devices. Do regular scans.

Do not put a thumbdrive in an unknown laptop or public port. Do not take thumbdrives from unknown sources or promotions. They can easily carry and transmit unsafe viruses and spyware onto not just your device, but an entire network of devices.

Use time and billing software religiously. Come up with an option that fits within your budget.

Create a system for capturing time. Name where and when you will do it and how you will fill gaps.

Be conscientious about spotting those gaps and fixing them, (e.g. I always take calls while I’m driving and don’t record that anywhere. I’m going to do xyz to ensure I capture that time better from now on.)

Record time as contemporaneous to the action as possible. It leads to better time capturing and more efficiency. One touch to get it recorded and one touch to get it billed is best.

Use an application on your smartphone or another device to ensure you capture time when you are out and about.

Evaluate what you give away and ask if you should be. For example, you can bill for first consultations, all phone calls, and travel time at half the rate.

Always itemize everything on the bill and put no charge if you are not charging them for it. Makes good business and helps them understand that you are fair and working hard for their cause. It also helps you evaluate if you are under-billing your

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time. Do not discount too much of your work. Some

lawyers get into a trap of undervaluing your work because of lack of confidence or other roadblocks. Review what you discount, when, and why. Ask if it is truly appropriate. If you need a perspective adjustment, ask for someone you trust to help you evaluate it.

Too Much Work

SOLUTIONS See Missing Deadlines and Appointments and

Technology Working Against Instead of For above.

Too Little Work

SOLUTIONS Create connections in the non-legal community.

Network like crazy. Build your reputation through presenting,

blogging, etc. Market with a website, social media, in person

classes or presentations, etc. (I have a handout to help with social media marketing in LOMAP. Email or call for a copy.)

Consider adding a practice area. Do a business plan where you drill down on ideal

referral sources and potential clients more. Analyze the market and consider changes to your

services that fit more clients. Find those clients and decide how you will get in

front of them more. Borrow marketing books from the LOMAP

lending library and adopt suggestions from them. Ask for help. Do not despair. Be brave and creative.

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Making Your Business Plan Sing

Charity Anastasio Practice Management Advisor

Law Office Management Assistance Program September 24, 2014

The WSBA Legal Lunchbox Series

Working Together to Champion Justice 1-44

Start With Audience Who will you take this to? And to what purpose? Opt for client-centric over self-centric Write to that relationship



Potential Audiences Investor or lender Marketing expert IT specialist or consultant Key potential employee Potential collaborators Contraction officials or entities Others?



The Value Proposition

• The business world says this is: Showing what problem you solve And why your solution is better than your competitor’s

solution They think of it as “what makes your customers act

favorably”



Value Proposition Parts

The market: What’s the need? Customer experience: Do they like you? Offering: What are your services? Benefits: How does the market like you? Alternatives & differentiation: Competition & your uniqueness? Proof: How do you know all this?



Value Proposition Decoded Who is your ideal client base? Where are they and how many? How do you set up client expectations, give sound advise, and

advocate zealously? Are clients satisfied? What are your practice areas and practice model? Are you making a difference and getting work consistently? Who is your competition and how are you different? Evidence: How do you know all this?



Exercise 1: The Client



Tell Both Sides

Address challenges and obstacles directly Create and discuss a plan for addressing, resolving This is the same thing we do when we work to determine

opposing counsel’s strategy, look at a case from both sides Be aware of an urge to avoid negative information or to

wallow in it. Make a plan for it’s short life instead. This is the fix your problems piece



Exercise 2: The Problem



Talk Money - Expenses Determine expenses to the firm

Analyze them for appropriateness and value Analyze if there is another way to get same result for less

Ask if there is enough overhead going back into the business Is this a path to growth? If not, what is needed



Talk Money - Fees Determine incoming fees

Determine if time capture is sufficient Determine fairness and appropriateness of fees

What is the breakdown of incoming fees by practice area? Is there one more profitable than another?



Talk Money - Billing Determine if billing procedures are working?

How much is owed you? (outstanding fees) How stale are those accounts? Should you have collection procedures in place? Should you hire a bookkeeper?

Should you take Credit Cards?



Exercise 3: The Money



Discuss Building Business Marketing and networking = Business Generation Starts with making connections in community, building

relationships Needs to be part of your business plan



Potential Referral Sources Other lawyers

Ones who do same things, turning away business Ones that do different things than you

Upstream professionals in the chain of your client base’s lifecycle People who like and admire you Others?



Building Business – Self

Plan the development of your abilities Attending continuing legal education Mentoring and Menteeing Staying abreast of the law Looking for your thing



Building Business – Self

Plan the growth of your reputation Map the upward trajectory Give presentations, educate public and lawyers Write often and well Be a joiner



Exercise 4: The Work



Market Research

Investigate Challenge your assumptions Secret shop your competition Ask past clients, current clients, (even those who passed)

QUESTIONS Ask referral sources questions too



Market Research – How To Survey monkey polling Calling to do brief interview Focus groups Marketing experts and consultants Researching the market in more depth



Exercise 5: The Sources



Major Projects Plan

• Use the Self-Audit Checklist, Closed File Audit, and your head to determine the problems you want to address

• Prioritize them in order of importance • Alternatively in order of achievability • Write a business plan to one project, the solving of one problem



Exercise 6: The Tech



Resources Charity Anastasio 206-733-5949 800-945-9722 ext. 5949 [email protected] Ethics line 206-727-8284 800-945-9722 ext. 8284



mailto:[email protected]

Thank you!



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