Opening A New File For Each Client's Matter
I know we have taken a diversion in "tips" that create "fail-safe" administration systems in your law office. This topic of "fail-safe" systems deserved more attention than just talking about the system itself.
If we fail to talk about the "fail-safe" aspect of each of these systems, we will fail to have you understand how all these systems are integrated and how they create an environment in your law firm where everything is done that needs to be done from an administration point of view, in the proper way at the proper time!
Reviewing the systems
You will remember that several articles ago, I pointed out eighteen "fail-safe" systems you need to have in your law firm in order to make everything run smoothly. So far, we have talked about five of these "fail-safe" systems, they are as follows:
1. Phone message system;
2.Prospective New Matter Reports;
3.Non-engagement letters;
4.New Matter Reports; and
5.Two people signing off on each New Matter Report.
I hope you can see the natural progression of how each of these systems are implemented on a chronological basis as a new legal matter comes into your office.
Having a new file for each client’s matter. This week's "fail-safe tip" is the necessity of having a new file open for each client's matter in your office.
I am going to use an example that occurred in the last three weeks in my office.
I was contacted by a new client to render some advice about an employment matter. We opened a file on this matter utilizing all of the "fail-safe" tips. At the end of the initial conference, the client inquired as to whether or not we would be able to handle a dissolution of marriage. I said we would, and told her when she was ready to talk about that, she should contact us so we could give her some advice on what we might be able to do to help her.
Within a matter of days, she contacted us indicating that she had a major spat with her husband, and she was separating from him and needed a Protective Order. We immediately prepared and filed a Dissolution of Marriage Petition and when we did so, we opened up a new matter separate from the client's employment matter.
Again, within a matter of weeks, another new matter arose with regard to this client and we opened up a third file for this client.
You might be asking the question, why go to all the administrative time and trouble to open up three separate matters for this client when arguably they were all somewhat related? The answer to the questions is, if you want to have an efficient filing system, and you want to be able to bill time to individual files so the client can see exactly what each matter is costing the client, then the only r efficient way to do this is to open a new file for each new matter in the office.
Opening a new file for each matter allows you to file only the things concerning that matter in a particular file without mixing things on multiple matters on the same backboard.
Having only the information regarding a single matter for a single file allows you to immediately determine the status of the matter if you have set it down for some time and now need to remind yourself where you are in handling the matter.
Billing Having separate files for billing is absolutely indispensable. I do not know of any client that does not know exactly what each matter the lawyer is handling for them costs, especially in terms of any matter having a capped fee, a flat fee, or a real cost benefit analysis concept that you have discussed with the client.
When you have separate billing folders for each matter, the client can keep track of exactly how much money they have spent on each matter that they are entrusting to the lawyer.
Potentially, having separate tickler cards for reminder dates is also advantageous with regard to having separate files as well as having separate "out of sight out of mind" cards as we have previously discussed when we talked about the new matter set of cards that we utilize in our office.
In fact, when I stop to think about the problems of not opening up a new matter for each client's matter in the office, I am reminded of circumstances where we have not done that either at the request of the client or because of being buried at the time, and I really cannot think of a single time that we have not ultimately lived to regret not opening up a separate file.
In fact, sometimes I have even had to go back and re-bill matters by separating out the time in order for the client to get a true picture of what a particular matter has cost them in our office.
When you have an administrative philosophy of opening a new file for each matter that a client has in the office, everyone becomes oriented to trying to get a New Matter Report for each matter and revisiting the issue of setting of fees, checking of conflicts of interest, who is responsible for bringing the business in the office, and any statute of limitations or time limitations dates that are applicable to the file.
Opening a new file for each client's matter in your office forces you to have to revisit all of those important issues you need to look at when opening a new matter on behalf of your client in your firm.
If you simply dump all of the information on this new matter into the existing client file, you will not force yourself to go through the steps of making a separate determination regarding the fee, conflicts, responsible person for bringing the business into the office, and the requisite time limitations on the file.
Applying the “fail safe” systems I hope you are continuing to see the "method in my madness" in the various systems that I have set up in my law office.
I recently spoke about these articles with an attorney I have known for some time, and he asked me how much administrative help I had in order to implement all these systems.
I think he was astounded when I told him the total staff for supporting the timekeepers in our office was three. One individual works as a legal secretary/administrate assistant, another person is administrative backup and the third person is the bookkeeper.
I believe the total resources we have allocated towards maintaining these systems in our office amounts to approximately one person.
Ask yourself the question, would it be worth it to have the kind of piece of mind that these systems give you and to pay a person approximately $24,000 to $30,000 per year to give you that piece of mind? I believe that the answer is a resounding yes!
Not only do these systems give you piece of mind, but they make you much more efficient and create more opportunities for you to be able to communicate with the clients. Remember satisfied clients are our best advertisements.
The key is to get started on the systems and to be sure everyone in the office is keyed into them. When you get the timekeepers on board and the administrative staff supports them, it becomes a symbiotic relationship that allows for all of the systems to be implemented at the appropriate time.
When everything is set up and all the systems are "clicking" it really provides for a very efficient operation of your law firm on a daily basis.
Next week’s topic
Next week we are going to talk about another "fail-safe tip" for handling client matters in your office. I have talked a little bit about having a separate billing file in this current article, but I have some additional comments to make about that topic that I think need to be expanded upon in next week's article.
I am continuing to try to espouse to you a philosophy that integrates the concepts of marketing, management, and economics in your law firm.
When I talk about these "fail-safe tips," I hope you can see the thread of marketing, management and economics that is woven through each of these systems.
As an aside, I think the "proof is in the pudding" as this last year was the best year that our firm has had in the last ten years, and we exceeded last year by 20 percent. Something must be working correctly!
The integration of all of these systems in our day-to-day activities continues to produce good results and satisfied clients. Good results and satisfaction encourage people to pay their bills on a timely basis.
All of that ensures to the bottom line of the law firm and each individual who is in the firm who is being compensated for timely execution of the "fail-safe" systems on a daily basis as well as for their hard work.
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.