It All Comes Down to This
As you know if you have been reading these articles, every business needs five things to survive and thrive. “Clients” or “customers,” “administrative procedures,” procedures for “getting the work done,” a “method to bill,” and a way to “collect the bill.” For the past three and one-half years, we have been discussing these five categories in order to establish and maintain a successful business.
During all these discussions about the five things it takes to make up every business in the world, you should have been keeping track of your score. If you have not kept track of your score, the following quizzes will help you find out where you rank in each category. For each quiz check each item and give yourself five points if that item is routinely accomplished in your office.
Customers/Clients Quiz
5 ( ) A. Congratulations/Help Letters
5 ( ) B. One Community Activity or Church Activity - Ongoing: Get Involved to Market Your Problem Solving Skills
5 ( ) C. One Professional Activity - Ongoing: Take The Time to Get Involved And Be Recognized
5 ( ) D. One Article Written or Seminar Taught Per Year: Gain Recognition Through Writing, Speaking or Teaching
5 ( ) E. One Public Speaking Engagement a Quarter: Speak Out to Grow Your Firm
5 ( ) F. One Press Release or Note in an Alumni Magazine Per Year: Gain Visibility Through Annual Promotional Opportunities
5 ( ) G. Thank You For Referral Letters - When Case Is Opened: Remember to Say ‘Thank You’ to Clients, Colleagues
5 ( ) H. Thank You Letters to Clients Upon Closure of Case: Wrapping up a Legal Matter With a Note of Thanks
5 ( ) I. One Breakfast a Month, One Dinner a Month, One Lunch a Week With a Potential Client: 31 Ways to Become a Rainmaker Every Week
5 ( ) J. One Shadow Day a Quarter With an Individual Interested in Law: Use Shadow Days to Share Your Profession With Others
5 ( ) K. One Lunch a Week With a Lawyer Who Can Refer You Business: Don’t Skip Lunch - it Could Lead to Business
5 ( ) L. One Internet Referral Service Membership: Establish an Online Presence And Advertise For Clients
5 ( ) M. One Lawyer Referral Service Membership: the Benefits of Joining a Referral Service
5 ( ) N. An E-mail Address and a Website: Using Technology to Find Clients in Cyberspace
5 ( ) O. A Firm Resume: Time to Update the Ol’ Resume - for Your Firm
5 ( ) P. A Firm Logo, Color Scheme And/or Motto or Slogan: Making an Impression with Your Firm’s Logo
5 ( ) Q. A Firm Newsletter: Use a Newsletter to Communicate with Clients
5 ( ) R. Firm Announcements of Important Changes or Additions: Keep Clients in the Loop with Announcements
5 ( ) S. Firm Christmas Cards or Gifts: It’s Never Too Early to Think about Clients and the Holidays
5 ( ) T. Client Birthday, Anniversary or Other Special Occasion Cards or Gifts: Keep Track of Milestones in Your Clients’ Lives
5 ( ) U. Special Creative Mementos or Gifts Connected to Special Results or Occasions: Honoring Your Clients to Keep Their Business
_ ( ) V. ADD YOUR OWN: FIVE POINTS PER ADDITION
Write In:
X 5 = + WRITE IN SUBTOTAL = YOUR TOTAL
Administration Quiz
5 ( ) A. Prospective New Matter Reports (Keeping Track of Potential New Matters)
5 ( ) B. New Matter Reports (Parties, Fees, Conflicts, Statute of Limitations, Deadlines)
5 ( ) C. Contracts
5 ( ) D. Engagement Letters
5 ( ) E. Non-Engagement Letters (Keep and Kick)
5 ( ) F. Tickler Card System for Statute of Limitations and Other Important Dates
5 ( ) G. Client Information Cards or Database
5 ( ) H. Conflict Cards Both Plaintiff and Defendant, or Database
5 ( ) I. Out of Sight, Out of Mind Cards (Monthly General Reminders)
5 ( ) J. Client Files: Backboards, LIFO Filing (LIFO: Last In First Out)
1. Correspondence
2. Documents
3. Financial
4. Notes, Facts, Memos
5. Pleadings
5 ( ) K. Separate Billing Files
5 ( ) L. Date and Document Chronologies
5 ( ) M. Trial Outline Forms and Binders
5 ( ) N. Thanks for Referral Letters as Condition Precedent for Opening Files
5 ( ) O. Tickler Cards as Condition Precedent for Opening Files
5 ( ) P. Lawyer Sign Off on Conflict and Fee Arrangements and Statute of Limitations or Other Deadline Dates as Condition Precedent for Opening Files
5 ( ) Q. “For Your Information” Copies of All Incoming and Outgoing Mail to the Clients
1. Stamp: “FYI: No Action Necessary”
2. Stamp: “FYI: Please Call Me”
5 ( ) R. “For Your Information” Copies of All Incoming and Outgoing Mail to the Responsible Lawyer, the Assigned Lawyer, and the Assigned Legal Assistant on all Incoming and Outgoing Mail (Non-Verbal Communication)
5 ( ) S. Triage System of Establishing Priorities (Triage: Sorting Tasks by Likely Benefit from Immediate Handling or Likely Detriment from Procrastination)
1. Fatal Deadline or Damage Deadline
2. Deadline or Damage Able to be Postponed
3. When You Can Get to It
5 ( ) T. Work Flow Process Systems (Desk Clearing and Organization Techniques)
1. Circulation, File, Process, Pull
2. Client, Administrative, Personal, Junk
5 ( ) U. Phone Message Carbon (Permanent Record of Incoming Calls)
5 ( ) V. Reading Files (Filing a Copy of Every Letter You Write)
5 ( ) W. IOLTA and Private Trust Accounts
5 ( ) X. Legal Research Database
5 ( ) Y. Office Memo Manual
5 ( ) Z. Office Benefits and Holiday List
5 ( ) AA. Office Overtime/Comp Time/Sick Days/Vacation Days - Tracking System
5 ( ) BB. Tickler Card Due Date Posting System
_ ( ) CC. ADD YOUR OWN: FIVE POINTS PER ADDITION
Write In:
X 5 = + WRITE IN SUBTOTAL = YOUR TOTAL
Getting the Work Done Quiz
5 ( ) A. Keep Everything Organized
5 ( ) B. Utilization of Work Assignment Form
5 ( ) C. Case Lists
5 ( ) D. Things to Do Lists and Caselist Meetings
5 ( ) E. System for Designating Tasks and Responsibility
5 ( ) F. Hard Cover Books, In House CD-ROMs and Database Internet Services
5 ( ) G. Litigation/Docket and Calendar Meetings
5 ( ) H. Trial Outlines for Litigation and Non-Litigation Matters
5 ( ) I. Using a Time Line
5 ( ) J. Critical Path Method
5 ( ) K. Utilization of Expert Consultants with Individuals Having Superior Expertise
5 ( ) L. Law Professors or Other Qualified Counselors, Cooperative Agreements and Work Assignments
5 ( ) M. Update your Office with the Proper Computer Hardware
5 ( ) N. Software Packages to help you Get the Work Done
5 ( ) O. Office Procedures for Establishing a Work Flow Process
5 ( ) P. Pre 4:44 pm/rule
5 ( ) Q. 24 Hour Rule when Returning Phone Calls
5 ( ) R. Nonverbal Communication Rule
5 ( ) S. Proofing Rule and the Spell Check Rule
5 ( ) T. Opinion Letter Rule
5 ( ) U. 5:00 pm Mail Rule, Overnight Mail Rule, When in Doubt, Document it in Writing Rule
5 ( ) V. Blue Card Rules
5 ( ) W. Royal-we Rule
5 ( ) X. Thank You Letters to Those who Refer you Business when Files are Opened and Closed
5 ( ) Y. Utilization of an Office Calendaring System
5 ( ) Z. Utilization of a Personal Calendaring System
( ) AA. ADD YOUR OWN: FIVE POINTS PER ADDITION
Write In:
X 5 = + WRITE IN SUBTOTAL = YOUR TOTAL
Billing Quiz
5 ( ) A. Timeslips, Dictating, Direct Computer in Put
5 ( ) B. Paper Time Input - Time Entry for Each Piece of Mail on a Client’s File Automatic
5 ( ) C. Word Processing - Charge
5 ( ) D. Copies - Charge
5 ( ) E. Telephone - Long Distance Charges
5 ( ) F. Fax - Charges: Incoming and Outgoing
5 ( ) G. Excess Postage - Charge
5 ( ) H. Extraordinary Office Supplies - Charge
5 ( ) I. Litigation and Case Expenses - Charge
(Eg. Filing Fees, Experts, Deposition Costs, Outside Vendor Costs)
5 ( ) J. Outside or Contract Counsel Expense
5 ( ) K. Work with Audit (Lawyers and Legal Assistants Working Together on Each Matter , Both Appearing on Bill)
5 ( ) L. Pre-bill Review and Sign off by All Billers
5 ( ) M. Cover Letters for Bills Needing Comment or Explanation
5 ( ) N. Finance Charges
5 ( ) O. Credit Card Payments
5 ( ) P. Monthly Productivity Reports Dollars per Individual Biller
5 ( ) Q. Monthly Hour Reports
5 ( ) R. Monthly Profit and Loss and Balance Sheet
5 ( ) S. Yearly Running Recaps Dollars Billed and Collected, Gross and Individually
5 ( ) T. Yearly Running Recaps on Hours per Biller
5 ( ) U. A Budget
5 ( ) V. Accounts Receivable Lists
5 ( ) W. Accounts Payable Lists
5 ( ) X. Work in Process Recap - Especially in Contingent Cases
5 ( ) Y. Daily Cash Sheet
5 ( ) Z. Bi-monthly Cash Needs Sheet, 1st and 15th Payroll, Etc.
5 ( ) Aa. Quick View Vital Statistic Sheet - Received on Account, Billed, A/r, A/p, Overhead Calculation, Trends
( )Bb. Add Yours: One Point per Addition
WRITE IN:
X 5 = + WRITE IN SUBTOTAL = YOUR TOTAL
Collecting Quiz
10 ( ) A. Monthly Bills, Even If No New Work, Where There Is An Account Receivable
10 ( ) B. Monthly Reminder Letters On Accounts Receivable
10 ( ) C. Referral For Suit Letters
10 ( ) D. Assignment For Suit Documents
10 ( ) E. Account Receivable Calls
10 ( ) F. Discount For Timely Payment Agreements
10 ( ) G. Payment Schedules - Post Dated Checks
10 ( ) H. Introduction To Banker By Lawyer For Loan
10 ( ) I. Acceptance Of Personal Property And Real Property
10 ( ) J.
( ) K. Add Yours: Two Points Per Addition
WRITE IN:
X 10 = + WRITE IN SUBTOTAL = YOUR TOTAL
Now that you have your score for each area listed above of the five areas that make up every business in the world, complete the following quiz below. This quiz will show you where you rank overall.
WHAT’S YOUR SCORE?
1. CLIENTS
2. ADMINISTRATION
3. GETTING THE WORK DONE
4. BILLING
5. COLLECTING
6. TOTAL:
WHERE DO YOU MATCH UP?
450-500: ON THE CUTTING EDGE
400-450: GETTING THERE
350-400: COASTING
300-350: IN NEED OF HELP
250-300: INERT
UNDER 250: IN THE STONE AGES
The last three and a half years have been interesting with regard to talking about the business of operating a law practice. At times I must admit that it has been more autobiographical than I thought it ever would be, but nonetheless it is impossible to pass on the experience I have had over nearly thirty-six years of practice without commenting on the things that I have learned and the feelings that I have developed. I can honestly say that most of the items I have tried to communicate were learned by my strong desire to stay organized and on top of what I was doing, as opposed to the hard way, through the “school of hard knocks.” It’s not that I have not had some “hard knocks,” but fortunately they seemed to have been relatively few and far between in retrospect. Maybe these “hard knocks” have seared some ideas into my psyche, but by and large, the journey since 1970 has been most enjoyable, and I have actually figured out a way to actually make a living in this business and to put my six children through school, to pay the bills, and to have my wife still be married to me. All in all, this is not a bad achievement!
I am going to begin a new column entitled “Wirken Quotes.” The concept is to come up with a quote I use in my practice on a day-to-day basis, and then explain to you the meaning of the quote and how I use it in a “teaching moment” in dealing with clients and conferences, and with audiences that I teach to.
Talk to you next week!
Jim Wirken is a civil trial attorney and the Chairman of the Board of The Wirken Law Group in Kansas City.