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Systematize to Optimize Your Legal Practice – Part 2: How?

2019-04-01T20:56:55+00:00By Debra L. Bruce, JD, PCC.|

In this issue of “Raising the Bar”, Debra L. Bruce continues her three-part series with a starting point to employ systems. The series addresses the creation of law office systems for increased efficiency, improved quality control and cost reductions. As a bonus, systems help lawyers to focus on and enjoy their law practice more.

How to Employ Systems

Now that you have been persuaded that it would be worthwhile to develop and document some systems, how do you get systems in place and how do you use them? You’re probably already struggling to get all your own work done or trying to cut down your nonbillable time. How will you ever get around to creating systems?

Have each staff member create a desk manual.

Ask them to spend a few minutes each day documenting the tasks they do repeatedly and the steps involved. In a couple of months, you will have a manual, without extraordinary effort on anyone’s part. […]

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Systematize to Optimize Your Legal Practice – Part 1: Why?

2019-04-01T20:57:54+00:00By Debra L. Bruce, JD, PCC.|

In this issue of “Raising the Bar“, Debra L. Bruce presents the first of a three-part series addressing the creation of law office systems for increased efficiency, improved quality control and cost reductions. As a bonus, systems help lawyers to focus on and enjoy their law practice more.

Image credit: thingamajiggs / 123RF Stock Photo

Why Law Office Systems Matter
Increased competition, downward pressures on fees, and elevated client expectations require lawyers today to respond faster while maintaining high quality. Law firms and individual attorneys need structural aids to improve productivity and assist in quality control. Systems let lawyers spend more of their time on the high level, challenging work they enjoy most. […]

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Negotiating with Belligerent Opposing Counsel

2019-04-01T21:00:19+00:00By Debra L. Bruce, JD, PCC.|

Initially, I tried letting him vent. When he wound down and I responded, however, he launched into another ear-splitting tirade. In a very calm voice, I said, “I’m going to hang up the phone now. Call me back when you have calmed down, and we can discuss it further.” I pushed the disconnect button.

The phone rang immediately, and the screaming began again. I responded calmly, even gently, “I’m going to hang up again. Call me back when you calm down.”

The third call began with him yelling, “Stop treating me like a child!”
“I will,” I reassured him, “when you stop acting like one.” I quietly hung up again. […]

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Have You Noticed What Siri Can Do for a Solo Attorney?

2019-06-25T16:28:02+00:00By Debra L. Bruce, JD, PCC.|

The iPhone 4S added a much advertised voice-activated feature called “Siri,” which performs tasks that legal blogger Ernie the Attorney called “purely magical” because Siri allows you to avoid typing on that tiny keyboard. Lawyers can speak to Siri to transcribe dictation into an email, a text message or a document. Siri can do web searches or answer any question that the WolframAlpha.com website can calculate. Siri can provide weather forecasts and locate nearby office supply stores or other retail establishments for the lawyer on the go. You can ask Siri what time your dinner engagement is tonight, and then Siri can call your spouse so you can say you’re running late…again.

A busy lawyer can use Siri a bit like a personal assistant that keeps track of your appointments and answers questions you don’t have time to look up. That assumes, of course, that Siri understands you and you get an adequate signal wherever you are. […]

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Sample Partnership Agreement Provisions Respecting Compensation – Appendix A (Part 7 of 7)

2019-03-20T21:00:29+00:00By Debra L. Bruce, JD, PCC.|

This is the Appendix A mentioned in the previous seven articles discussing structures that law firms tend to adopt for partner compensation. In Part 1 we discussed the Monarch structure, in Part 2 the Parity structure, in Part 3 the Executive Committee Monarchy, in Part 4 the regular Lock Step, in Part 5 the Modified Lock Step, and in part Part 6 the Eat What You Kill structure. Appendix A provides an example of some partnership agreement language in a Modified Lock Step compensation system.

APPENDIX A
to Partnership Compensation Plans

Selected Provisions Of
Agreement Of Limited Liability Partnership
Of
A & B, L.L.P.
[Not Intended As A Complete Partnership Agreement]

This AGREEMENT OF LIMITED LIABILITY PARTNERSHIP of A & B, L.L.P. is entered into to be effective as of the __ day of ___, 200_,

by and among A (“A”) and B (“B”) (collectively, the “Partners”) pursuant to the provisions of the [State] [Partnership Law], and according to the terms and conditions set forth herein.

NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: […]

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Partner Compensation Plans – The Eat What You Kill, EWYK (Part 6 of 7)

2019-03-11T22:21:00+00:00By Debra L. Bruce, JD, PCC.|

This is the 6th article in a series of 7 discussing structures that law firms tend to adopt for partner compensation. In Part 1 we discussed the Monarch structure, in Part 2 the Parity structure, in Part 3 the Executive Committee Monarchy, in Part 4 the regular Lock Step, and in Part 5 the Modified Lock Step.

Eat What You Kill (EWYK)

Description
Each lawyer’s compensation is based on the revenues she generates. Usually there is some kind of formula that attempts to account for overhead, and then distributes all remaining profits to the lawyers based on their collections. In some systems a flat dollar amount is determined for overhead per lawyer, by dividing up the sum of fixed and predictable expenses, such as rent and shared staff salaries. Everything the lawyer bills and collects in excess of the fixed overhead figure gets paid to that lawyer after subtracting certain firm expenses directly associated with that lawyer such as business development expenses, retirement plan contributions, and salaries of staff or associates who work mostly for that attorney. In that model the firm is more akin to an office sharing arrangement than a partnership.

A variation of the EWYK model does provide for sharing of risk. The firm’s profits are determined, and distributed in accordance with a formula that averages the collected revenues attributable to a partner over multiple years (usually two to four). The averaging slightly shaves off peaks in income, to provide support from partners on the upside of […]

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Partner Compensation Plans – The Modified Lock Step (Part 5 of 7)

2019-06-25T16:27:46+00:00By Debra L. Bruce, JD, PCC.|

This is the 5th article in a series of 7 discussing structures that law firms tend to adopt for partner compensation. In Part 1 we discussed the Monarch structure, in Part 2 the Parity structure, in Part 3 the Executive Committee Monarchy, and in Part 4 the regular Lock Step.

Modified Lock Step

Description
Many firms have modified the lock step model to allow a committee to subjectively reward or punish behavior. The modification helps the firm to encourage essential behaviors such as business development, high productivity, recruiting, training and mentoring associates, management, and client relationship maintenance. It also provides the flexibility to bring underperforming partners into line, without having to completely expel a partner.

Some of the modifications may include the ability to promote a partner to a higher level earlier than the other classmate partners, or demote a partner to a lower level. There may also be a “slush fund” for allocating bonuses to reward desired behavior. Appendix A to this article (which will appear in Part 7 of the seven-part series) contains an example of provisions that might be included in a modified lock step compensation plan. The author extends her gratitude to Bill McDonald, a partner at Thompson & Knight LLP, whose practice includes advice on law firm formation, for the provisions included in Appendix A.

In Appendix A, the agreement provides for seven lock step levels, but permits the management committee to assign each partner to the appropriate level […]

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Partner Compensation Plans – Lock Step (Part 4 of 7)

2019-03-11T22:32:20+00:00By Debra L. Bruce, JD, PCC.|

This is the 4th article in a series of 7 discussing structures that law firms tend to adopt for partner compensation. In Part 1 we discussed the Monarch structure, in Part 2 the Parity structure, and in Part 3 the Executive Committee Monarchy.

Lock Step

Description

This model is used mainly in large, stable, well-established firms that have a lot of institutional clients. It rewards seniority. Usually, all of the lawyers who become partners in the same year are a class, and make the same compensation. The class as a whole receives an increase in points, which are the basis of allocating profit distributions, when they are elevated to the next level. Typically, the spread between the salary of the highest paid partners and the lowest paid partners is not that large – 3 or 4 to 1 is not uncommon.

When It Works Well […]

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Partner Compensation Structures – Executive Committee Monarchy (Part 3 of 7)

2019-03-19T21:28:11+00:00By Debra L. Bruce, JD, PCC.|

This is the 3rd article in a series of 7 discussing the different kinds of partnership compensation structures that law firms tend to adopt. In Part 1 we discussed the Monarch structure, and in Part 2 the Parity structure.

Executive Committee Monarchy

Description
Both of the prior structures are usually only found in small firms of ten partners or fewer. In a larger firm, the Monarch structure may be expanded to a ruling executive committee. In this situation a rather stable and predictable executive committee functions like a single monarch. Usually they are the founding partners or otherwise the most experienced lawyers in the firm.

When It Works Well
This structure works when the […]

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Partner Compensation Structures – Parity (Part 2 of 7)

2019-03-19T21:26:59+00:00By Debra L. Bruce, JD, PCC.|

This is the 2nd article in a series of 7 discussing the different kinds of partnership compensation structures that law firms tend to adopt. In Part 1 we discussed the Monarch structure which involves one partner who rules over the others on compensation issues.

Parity

Description
All of the partners split the profits of the firm evenly. This format usually comes out of a situation where two or three lawyers of similar vintage are friends, and decide to form a partnership.

When It Works Well
When the lawyers have […]

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