Developing Your Firm's Organization and Structure

This week I will introduces the second piece of the five things it takes to make up every business. Administration or organizing the administrative structure. Another way to look at the administration issue is to try and see it as a fluid activity that is best described by what a client of mine called “ The Work Flow Process.”

Later on, we will be talking about the other three things it takes to run every business: getting the work done, billing and collecting. Although administration is only the first part of getting the work done, I believe it rightfully deserves it’s own section of tips because it is almost impossible to get the work done if the Administration isn’t set in place ahead of time in order to handle the work both officially and accurately.

When talking about a “tip” involving administration, I would be remiss if I did not introduce you my all-time favorite and most often quoted quote. One of my favorite authors is James Michener who in his book Space, developed a character by the name of Rachel Mott who is the daughter of a German rocket scientist who came to the United States after World War II and became part of the United States Space Program. Rachel goes off to college where she is by all accounts, one of the most creative people at her school. She is a writer, a poet, a dancer, an artist and a performer. Unlike the stereotype of people with such creativity, Rachel is a “Uneat-nik.” Her roommate asks her how these two seemingly diametric character traits can exist at the same time in one person, and Rachel’s answer is “When the space is ordered you are free to live creatively.” As a trial lawyer you can only imagine how much that quote hit home with me.

Clearly, when it comes to administration of any business, when the space is ordered you are free to live not only creatively but also efficiently.

The administration “tip” that we are going to be dealing with in the next series of articles will help your office run very efficiently and at the same time will give you the time, and maybe even the luxury, of being creative.

Remember to keep score as we go along.

The tips that we are going to talk about with regard to administration issues will help your firm run smoother and will put systems in place that will force lawyers and staff “to cover the basics.” The “tips” will also give you concepts to help create ordered space. It will allow you to get the work of your law firm more efficiently and on a timely basis.

Also remember I suggested that you use these tips as a self-audit, a wish list and/or as a firm retreat agenda for making your law firm a better place for you, your staff and your clients.

So now that we have introduced this topic of administration, let’s dive right into the first administrative tip:

1. Prospective New Matter Reports or keeping track of potential new matters.

As with seemingly everything in life today, there is an acronym for prospective new matter reports. We call them PNM’s. This is simply a form that contains the following information:

1. Name

2. Address

3. Phone

4. Date taken

5. Time taken

6. Prospective Defendant or opposing party

7. Type of problem or matter

8. Advice given/action taken at time of phone call

9. No action taken/referral to

10. Fees discussed

11. Statute of limitations advised (generally only yes, no or n/a)

12. Referred by/engagement received from

13. Responsible lawyer

14. Assigned lawyers

15. Taken by or engagement received by; and

16. Comments

The back of this form has a table where we keep itemized time while the prospective matter is being explored so that the time will be properly charged if and when we choose to open a file on the matter.

This PNM report serves as the cover sheet for all of the information that is gathered prior to the time where a file is opened in a lawyer’s office. As you can see from the above list of information that is gathered, the PNM report is a handy reference to every pertinent piece of information the lawyer might need.

As lawyers, we know that we often get comments from people about prospective new matters on about every type of medium you can imagine. Phone slips, backs of business cards, cocktail napkins, scraps of paper and about any other mechanism that would remind us that we have talked to a prospective client about a prospective new matter. I have found that having a cover sheet such as a PNM to attach all of this information to has been a very effective organizational tool in my office.

Next week we are going to talk about New Matter Reports. These reports are distinguished from Prospective New Matter reports, in that with the amount of matter that has actually come into the office, and in order to get this matter opened up in the office; certain information needs to be placed on the New Matter Report. I think that you will see that some of the information from the Prospective New Matter Report is repeated, and also may have some additional checks and balances that allow the matter to come into the law firm in such a way that it will be administered in such a way that the client’s matter can be handled both accurately and efficiently.

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.