TnBar Management Services Practice Tips

Practice tips are provided to assist solo and small firm practitioners in the management of their law practices. They are not meant as legal advice, nor binding on the Tennessee Bar Association. Please check the Tennessee Code of Professional Responsibility before implementing any of these tips in your practice.

If you’re scratching your head over taxes, here’s some information that might help. This is a recent notice for small businesses from the IRS.

The Small Business Community on IRS.gov (www.irs.gov/smallbiz) has made significant content changes to help with filing taxes this season.

* WHERE TO FILE ADDRESSES - Where-to-File addresses for businesses are now available from every page on the site by clicking on the "Where to File" link on the left navigation bar http://www.irs.gov/file/index.html

* ALLOWABLE EXPENSES - National Standards for Allowable Expenses for using the correct standards in claiming expenses. http://www.irs.gov/individuals/article/0,,id=96543,00.html

* SMALL BUSINESS TAX CALENDAR - Small Business Tax Calendar with dates and actions necessary to comply with business tax filing requirements http://www.irs.gov/businesses/small/article/0,,id=104911,00.html

* HEADLINERS PAGE - Tax Practitioners can use a new page for key messages known as Headliners. The Headliners page provides access to all of the headliners by either number or title. http://www.irs.gov/businesses/small/article/0,,id=102669,00.html

* TAX PRACTITIONER INSTITUTE TEXTBOOK - The Tax Practitioner Institute textbook for use in teaching tax topics http://www.irs.gov/businesses/small/article/0,,id=105650,00.html

* OFFERS IN COMPROMISE - Information explaining the Offers-in-Compromise program and how to make use of this important option http://www.irs.gov/businesses/small/article/0,,id=104593,00.html

* INTERNATIONAL TAXPAYER INFORMATION - Information for specific tax needs. This will help both Overseas Taxpayers and Foreign Taxpayers meet their unique tax obligations http://www.irs.gov/businesses/small/international/index.html

* VIRTUAL SMALL BUSINESS WORKSHOP - Video streaming now delivers the Small Business Workshop via our Online Classroom on the website http://www.irs.gov/businesses/small/article/0,,id=97726,00.html

Using Outlook to manage your e-mail
Outlook makes e-mail procrastination a thing of the past.

Delegate a task: When an e-mail requires an action on your part, add the action item to your task list by clicking on the e-mail in your Inbox and dragging and dropping it into your Task icon on your Outlook Bar. A new task will open on your screen and you can complete the appropriate information.

Calendar an event: When you receive an e-mail scheduling an appointment or due date, drag and drop that message to your Calendar on your Outlook Bar. The calendar screen will appear automatically. Fill in the appropriate info and you’ve calendared the event.

Create a new contact: When you want to add an e-mail sender’s contact information to your Contact file, drag and drop the e-mail to your Contact icon on your Outlook Bar. The name and e-mail address fields will already be filled in. You complete the rest.

Quick and easy. No more excuses for you. The e-mail’s in the bag!

E-mail management tips
A lot of us are still printing e-mails and filing them in the appropriate hard copy file folder as a way of keeping them with all of the other documents pertaining to a matter. While this may be advisable for purposes of documenting the file, printing every e-mail we receive may not be practical. Having them placed in the file in a timely manner may be even more impractical. How can you save valuable e-mails in a manner that makes them easy to retrieve without cluttering up your e-mail box or overloading your e-mail software subfolders?

Most e-mail software allows the user to save e-mails in subdirectories in a readable format. Rather than print an e-mail, save it in the subdirectory or folder to which it pertains. In order to easily retrieve it, establish a protocol for saving e-mails. Open the e-mail you want to save. Click Save As and select the subfolder or directory you want to save it to. Start each file name with the date (year/month/day) so that the e-mails are sorted chronologically when you click File, Open, Folder in your word processing software. E-mail can be saved in e-mail format (.eml), html format (.html) or text format (.txt).

The benefits are many: your e-mail box is less cluttered, retrieving e-mail is easier because it is saved in a subdirectory with other related documents and searchable. Your electronic client files are complete, limiting your need to pull the hard copy. Your secretary’s filing burden is reduced. And, assuming your data is backed-up daily, it is safe from disaster.

E-mail procrastination
E-mail that requires an action is a procrastinator’s worst nightmare. On top of the voice mails, overnight deliveries and faxes we must now contend with e-mail and worse even still — instant messaging. They keep coming and coming and piling up. If you don’t know the answer, they sit. If they require you to act, they sit. They sit and sit and pretty soon you’re so overwhelmed, you do nothing. Then you get a letter from the Board of Professional Responsibility. You’re in trouble.

A common time management technique that is often applied to paper documents also applies to e-mail. "Handle a piece of paper (or an e-mail) only once."

When an e-mail asks you a question you don’t know the answer to, use the "Forward" button and forward it to the person who knows the answer.

When the e-mail requires an action item, such as calendaring a date, adding an item to your "to-do list" or adding a name to your contact data base, do it when you read it and delete it.

When you need to keep an e-mail message, save it in a manner that is easy to retrieve; i.e., in a client folder, office matter folder, forms folder or research folder in your word processing software with the rest of your work. Keeping it separate in an e-mail subfolder may make it harder to find.

Once you’ve properly "handled" the e-mail, Trash it!

The Good Funds Rule
Don't let a client rush you into writing a check for their share of the settlement proceeds before the check clears the bank. A lawyer may be tempted to comply if he knows there is already money in the trust account to cover the check. However, if the client cashes the check before their settlement check clears, you have violated the "good funds rule" and could face disciplinary charges. Why? Because the money in the account belongs to another client, and the funds are not fungible.

Inform the client that you must wait until you receive notice from the bank that the check has cleared. Let the client know you will call the bank daily until you have notice the settlement check has cleared, then hand-deliver the client's check if necessary. And don't be tempted to give the client a post-dated check — they still may present it to the bank before the date on the check!

Are there potential malpractice concerns when you handle a cold call from a potential client? The answer is yes. Unintentionally establishing the attorney-client relationship, providing inaccurate legal advice (because of incomplete information) upon which the caller relies and creating a conflict of interest are just a few of the potential problems you can find yourself dealing with when handling cold calls.

If it is your policy to try to assist non-clients who call your office seeking assistance with a potential legal matter, keep the following in mind:

(1) Be sure to obtain the caller’s name, the names of other involved parties, addresses and phone numbers. Your procedures should include checking your conflicts system to be sure there is no conflict before proceeding with the call.

(2) Keep the conversation between you and the caller informational only. Do not give legal advice to a non-client over the phone. You may provide general information, but be careful not to address their particular situation. If the question from the caller is highly technical, inform them that in order for you to accurately respond to their question, you need more information and would be happy to set up an appointment with them.

(3) If you slip up and give legal advice to the caller; or, if confidential information is shared, send a letter to the caller thanking them for considering your firm. Confirm in writing what was discussed between you and the caller. State that the advice you provided on the phone is based upon the facts provided by the caller (and enumerate what those are) and that in order to obtain adequate legal advice for this particular matter, the caller should seek to engage an attorney of her choice. If a time bar is running, it may be necessary to provide the caller with that information as well.

(4) Include standard language that indicates that no attorney-client relationship exists between you and the caller until the caller makes an appointment with you and goes through the formal engagement procedures of your firm.

(5) Add the caller’s conflict information to your conflicts checking system.

The Cold Call: Golden Opportunity or Opportunity Lost? How can you tell the difference between a potential client and someone who just needs an answer to a quick question? Here are some client screening tips that can help you cull out the cold calls that will never turn into clients – and they don’t require any of your time.

Utilize your staff in initial client screening. Your staff can often ask just a few questions of the caller and obtain enough information to determine if the caller should be directed to a lawyer immediately or if the caller is simply looking for information - or free legal advice. If the services the caller is seeking are outside the expertise of the firm, the caller can be easily referred by the staff person to a lawyer referral service or a lawyer or law firm who the firm routinely refers that type of work to. If the caller needs services that the firm provides, the secretary can ask the caller to provide some basic information for the attorney to review before the call is returned. In addition, the caller can be sent a brochure describing your firm’s services, the legal process for the type of matter they have and the associated costs.

Use a standard telephone interview questionnaire form. Your staff can inform the caller that it is the policy of the firm to obtain some basic information about the matter for which the client seeks help before the attorney talks with a prospective client. If the client consents to providing some personal information and the basic facts of their matter, it is more likely they will turn out to be a real client. However, if they balk at this because they just want a quick answer to a question, you’ve just saved yourself some time.

Develop a brochure or other written information targeted to cold callers who are calling about services. By providing the "potential client" information about the legal process and associated cost they are about to "sign up for" in seeking legal counsel for their matter, you give the caller the information they need to determine if they can go forward under your terms. You can also include the telephone numbers of city, state and federal agencies who may be able to answer some of their questions.

Charge a consultation fee. A consultation fee may be charged for a face-to-face interview which can be applied to their matter if they decide to go forward. If not, the fee is non-refundable and you’ve been paid for your time up front.

Don’t lose the opportunity to represent the clients you want to represent because you’re so busy representing the clients you don’t want to represent. And, value your time. That and your expertise is all you have to sell. One can be sold over and over. The other can only be sold once.

Closing client files
Do you have an established (preferably in writing) procedure for handling client files once the matters contemplated in the retention have been completed? Have you ever pulled a closed file, only to find something that should have been done before it was closed?

Here are some points to keep in mind before you relegate a file to inactive status.

1. It is wise both from the client relations and file management perspectives to document to the client when the matters outlined in the original retention agreement have been completed. This is important so the client does not assume you are handling any other post-resolution duties or that you automatically will be available for future matters. It is also useful to define the close of a matter because rates charged by the attorney may change from time to time. If the client is clearly informed that each matter is separate, he or she is unlikely to expect that the fees charged in previous matters will necessarily apply in new matters. This is also a great opportunity to encourage your client to come to you with new matters and to refer friends or relatives to you for services.

2. A client file should be reviewed when a matter is concluded before it is relegated to inactive status to determine if all necessary follow-up has been completed. Appropriate calendar or tickler entries should be made for any pending follow-up, and the file should not be closed until it is completed. As long as a file is open, there should be at least one tickler or reminder regarding that file, even if it is an "arbitrary" event such as review of the file at a set time to determine if all pending items are finished and the file is ready for closing.

3. Keep careful records of the location of all inactive files - preferably computerized records that can be searched to immediately find the name and/or file number if you need to retrieve the file.

Billing is more than dollars and cents
Not many lawyers would list billing as their favorite part of operating a practice. It may help to look at billing as a multi-purpose activity. Bills are not just a means to collect money; they are also an excellent vehicle for regularly communicating with your clients. Even if clients are not being charged by the hour, or when particular services are being provided on a no-charge basis, sending an informational bill gives the client a "snapshot" of the services you've provided on his or her behalf. After all, your clients spend very little time with you in the course of the representation. Most of the work you do for them is done outside their presence, so they will only know about it if you tell them. Be sure to provide enough detail that they can get some sense of what you did. You also want to be sure you get "credit" for any no-charge services.

Tell your clients at the first meeting that the bills will be an important part of how you keep them updated on what you're doing for them. Encourage them to ask questions - not just about the amount owed, but about the services provided.

If you don't provide informational bills, you need to be sure alternate procedures are in place to keep your clients advised of activity in their cases.

Exit Interviews
If you don't provide informational bills, you need to be sure alternate procedures are in place to keep your clients advised of activity in their cases.

Most solo and small firm practitioners probably do not spend the time to have exit interviews (at most) or exit surveys (at least) when an employee leaves. However, this could be a good opportunity to get somewhat honest feedback from departing employees. Unless the employee left under extremely unpleasant circumstances, someone in the office should take a few minutes to do an exit interview. Some questions could be:

• Would you share with me your comments about the firm?
• Would you share with me your comments about your supervisor?
• Was the training the firm provided adequate? If not, please explain what was lacking.
• Did the firm provide adequate resources to allow you to do your job? If not, please explain what was lacking.
• Would you recommend the firm as a place of employment to others? If not, please explain why not.
• In your opinion, were the benefits provided by the firm: Below Average; Average; Excellent?
• Were policies of the firm uniformly applied throughout the office?
• Would you work for the firm again?

Use the information to evaluate your firm's ability to attract and retain excellent employees!

Sincere Compliments
In our fast-paced professional world it seems we no longer take the time to compliment people on a job well done. A compliment is more than saying "thank you" — it is expressing that you noticed something extra about the person's efforts or attitude. Whether it is an employee, court reporter, court clerk, partner, bailiff, title researcher, or a secretary in an opposing counsel's office, if they are particularly helpful or kind to you, compliment them in a sincere manner. You'll make their day and — who knows — some time soon they may just make YOUR day! Positive attitudes are contagious — pass it on!

If you have never read Michael Gerber's classic book, The E-Myth Revisited, make sure you add it to the top of your fall reading list. Whatever stage you are at as a law practice entrepreneur, this book provides insight and education on how to successfully run your business. It is not so much a "how-to" book, as an "a-ha" book that will help you clearly see your practice in a whole new way!

This may be more useful for some of you at home rather than at work. Many of you probably only use one e-mail address even though your Internet Service Provider may allow you to have five or six at no additional cost per month. Here are some ways to make use of this extra capacity.

1) Give all family (or staff) members their own personal e-mail address. (Most have already done this at the office.) But there's really no point in doing this if you don't also sent up inboxes for each of the individuals (e.g., Tommy's Inbox, Sue's Inbox.) Then it is a very simple matter to set up a "rule" so that every e-mail that goes to that addressee is transferred to their inbox. Presto, everyone has their own private mailbox, which saves everyone time.

2) Concerned about disclosing your e-mail address online? Many web pages have registration features, information request features and other applications that request an e-mail address. Many physical stores and other forms now also request an e-mail address. How do you register in all of these places without getting inundated by junk e-mail as a result? Simple. Set up an e-mail address just for junk mail and create a "junk mail inbox" where everything sent to that address is automatically transferred. Once or twice a month you can check that inbox, just to make sure you haven't been notified that you are a sweepstakes winner or received a promotional e-mail that you might be interested in, but you don't have to deal with the spam on a daily basis.

Many niche law firms maintain web sites that contain interesting resources, ideas and links for other lawyers. But how can you efficiently find those sites?

Try using www.netcraft.com This search engine uses site names for searching. Try "*law" (law and an asterisk as a wildcard character). It should return about 800 websites (in alphabetical order) that end with the word, "law". Also try "law*" followed by an asterisk for web sites that start with the word law. Then prospect and mine the sites for valuable links and ideas.

Beware: If you use "law" only (without the asterisk), the search will return many more websites with the letters "l-a-w" anywhere in the name.

With the turmoil in the legal malpractice insurance market, some lawyers are choosing new insurance carriers to avoid significantly higher premiums, while others are learning their carrier is exiting the market and will no longer cover them. If you are changing insurance carriers, inquire whether the new policy includes "prior acts" coverage. Some malpractice insurance policies only provide coverage for acts or omissions committed on or after the effective date of the new policy. The policy may not provide coverage for acts or omissions prior to the effective date even though the claim was made during the time the new policy is in force. Some insurance carriers will provide this coverage for free or a nominal charge, others will charge a hefty premium. Take a minute to ask your new carrier about this coverage, and you might just save a whole lot of money and aggravation!

As part of your trust account reconciliation process each month, pay attention to outstanding checks. If they haven't yet been cashed, it could be because they haven't been received. Sometimes clients or others assume if they didn't receive the check that you didn't send it. They may just keep waiting, getting more and more distressed, instead of calling your office to find out what happened. Another possible reason a check has not been cashed promptly could be that the recipient is not satisfied with the amount and is holding the check while he or she decides what to do about it. Either of these situations results in dissatisfied clients and could even lead to a bar complaint. Most of the time, however, problems can be resolved if you contact parties who haven't timely cashed their checks and find out why.

TnBar Management Services is receiving an increasing number of calls from attorneys who are leaving their law firm to set up a new practice. There are many issues to consider when a lawyer leaves a law firm. Among the most important is protecting the interests of the firm and departing lawyer’s clients. How do departing lawyers and the law firms they are leaving ensure that client interests are protected during this type of transition?

When a lawyer leaves: Steps to take to protect client’s interests and the law firm
• Identify client files for which the departing lawyer is the originating and/or responsible attorney and prepare a written list of these files containing addresses, phone numbers and other contact information related to the file.

• The law firm and lawyer should send a "joint" letter to the lawyer’s clients notifying them of the lawyer’s departure and providing them the option of remaining with the lawyer or the firm; or, if the client so desires, to seek out other legal counsel of the client’s choosing. The client’s choice should be in writing and retained in the firm’s client file.

• The law firm should instruct the firm’s receptionist and other staff to provide contact information for the departing lawyer to callers who request it.

• The law firm should inform related parties to each file of the lawyer’s departure and who has been retained as counsel for the client.

• The law firm should check its calendar to be sure critical dates and deadlines are not missed during the transition period. The departing lawyer or a law firm representative should appear at hearings or other proceedings during the transition period, as needed.

• Advances for expenses not incurred or unearned fees should be returned to the client.

• Along with client file contents, the law firm should retain copies of documents indicating the client’s choice as to counsel, the transferal of file contents, original documents and client property per the client’s instructions, signed receipts from the client for file contents and return of advances, unearned fees and trust funds to the client.

• The law firm should address the billing and payment of client fees and expenses for work performed by the departing attorney which has been billed (and not paid) or is still in work in process prior to the date of the lawyer’s departure.

• The partnership or organizational agreement should adequately address issues related to how partner withdrawal from the law firm will be handled.

Life, liberty, and the pursuit of happiness
You deserve to be happy practicing law. Unfortunately, unwelcome client behavior can reduce your "practice happiness" — but only if you let the client get away with it. Consider a proactive approach to client management.

1. Try to hone your practice area to cases where the clients are typically more amenable to civil discourse and responsiveness. (Yes, it's possible!!!)

2. Screen prospects carefully. Don't be reluctant to refuse a case. You are not a public servant, but rather a private practitioner.

3. Use an engagement letter to describe the "rules of engagement." Include your preferences about e-mail and telephone calls; file ownership, copying cost and retention; your right to withdraw citing the relevant Rule; payment terms and anything else that your experience tells you can cause a case to go sideways.

4. It is a business decision to fire a client, not a personal failure. The financial hit you may take is an investment in your good and loyal clients. Be sure to consult the relevant Rules and protect the fired client's interest.

All of these actions enable you to feel more in control, less overwhelmed...and happier!

Marketing Tip #10 – The World Wide Web
Why market your practice on the internet? According to Gregory H. Siskind, author of the ABA book, The Lawyer’s Guide to Marketing on the Internet, there are a number of reasons to consider internet marketing: 1) it can reach an untapped client base; 2) it is cost-effective; 3) it delivers information effectively; 4) it can be a complement to the firm’s other forms of marketing; 5) it can enhance the firm’s image; 6) it reduces geographic barriers; and 7) it can be used as a recruitment tool. The Complete Guide to Marketing Your Law Practice provides some general guidelines for internet marketing:

1. Keep visitors involved from the first moment they get to your site – design your site to keep visitors’ attention.
2. Be sure your site is client-oriented rather than firm-oriented – focus on your target audience’s needs and guide them to sections of your site or other site links to find the answers.
3. Deliver a high return on time invested – design the site to address the concerns of your target audience.
4. Think of your site as a magazine – plan movement through your site around visitor behavior.
5. Don’t keep clients waiting – avoid graphics that take too much time to download.
6. Provide information that will help the clients make the right decision – educate the visitor on the firm’s expertise and experience. Use it to educate visitors about needs they yet to know they have.
7. Update the site regularly.
8. Promote the site online and in print.
9. Have a plan to bring visitors to the site and to bring them back – you must continue to provide substantive content that will keep visitors coming back to your site.
10. Determine who does what in the development, management and monitoring of your web site.

The publications mentioned in this tip are available for lending from the TnBar Management Services library. Go to www.tba.org/tnbarms to make a request. They can also be purchased directly from the ABA’s Law Practice Management Section. Go to www.abanet.org/lpm/catalog or call 800-285-2221.

Marketing Tip #8 – Advertising via Yellow Pages
If your practice is one that is conducive to yellow page advertising (and statistics show that personal injury, bankruptcy, criminal, family law and workers’ compensation practices make up 90% of all lawyer display advertising), then you should read the ABA Law Practice Management Section’s most recent publication on the subject, Effective Yellow Pages Advertising for Lawyers, A Complete Guide to Creating Winning Ads. This book is a fairly complete, light-hearted (and frequently humorous) instruction manual on how to develop the best yellow page advertising for your practice. It takes the reader through the history of lawyer advertising and explains how yellow pages advertising works and how it differs from other forms of advertising. In Part II and III, the author discusses how to create the best ad for your practice by using case studies, exercises and questions to take the reader through the process of developing an ad. In Part IV, the book addresses buying strategies – how to make the best purchasing decisions for yellow page advertising. It has an easy style and is well organized. This book is available through the TnBar Management Services Lending Library. Go to www.tba.org/tnbarms to check out this publication. It can be purchased directly from the ABA Law Practice Management Section at www.abanet.org/lpm/catalog or by calling 800-285-2221, Product Code 511-0478.

Marketing Tip #7 – Newsletters
According to experts in the industry, clients do read newsletters. Newsletters can produce new business and referral sources. They can also help with firm branding and reinforcing your presence and expertise with existing clients. However, clients also are receiving an increasing number of newsletters from various sources, so it is important that your newsletter stand out among the crowd. Here are some tips:

1. Content: Your newsletter should contain "news" that is related to your clients’ businesses; i.e., development of important case law, changes in current law or trends in your clients’ industries that could impact their business. It can also communicate important developments in your firm which will enhance your client service; i.e., the addition of a new practice area, new capabilities resulting from additional technology, the opening of a new office or the addition of new attorneys.

2. Length: It is generally held that more is less when it comes to newsletters. Most readers of newsletters will scan it for subject matter that is relevant to them. Summarize your points in one or two paragraphs and direct your readers to a phone number or web site for more detailed information on the subject. A one page newsletter is ideal for a weekly or monthly publication. Quarterly or annual publications can be longer, but should be no more than four pages.

3. Frequency: Will you publish a newsletter weekly, monthly, quarterly or annually? The frequency with which you distribute a newsletter will depend upon a couple of factors: a) the purpose of the newsletter and b) the amount of resources and management support available to produce it.

4. Don’t start something you can’t finish. Before starting a newsletter, be sure you have the resources and firm support needed to continue to publish them. They take time. Time to research the subject matter, write the copy, design the layout, manage the distribution list; and, if you are relying upon others to write for the newsletter, time to harass them to meet their deadline. In addition, you will need a back-up person who can get it out should you be out and unavailable to complete the next issue.

Finally, if you don’t feel you have the time to put together a newsletter yourself, there are services which will provide content, using your firm name and address. One such service, is through Lawyers Weekly. Go to www.lawyersweekly.com/newsletters for more information.

Marketing Tip #6 – Brochures
The hot marketing tool of the recent past has been firm brochures. Many law firms have hired marketing firms to develop expensive, slick brochures that describe the firm’s philosophy, history, current services and expertise, depth of legal experience and office locations. Much time is spent on the "look", "tone", "feel" and "message" of the brochure.

According to Burkey Belser, author of Chapter 4 - "Developing Your Visual Image" in the ABA LPM publication, The Complete Guide to Marketing Your Law Practice, most firm brochures widely distributed to potential clients find their way rather quickly into the nearest waste basket. Mr. Belser makes the point that brochures do have value in the marketing plan of the law firm when they are used correctly.

Brochures can be effective when talking with a potential client – reiterating the points made during the "sales call". Brochures can, according to Mr. Belser, speak for you after you leave a meeting, when a hiring decision is made. Brochures can help with cross-selling of services and educating your clients on specific areas of law. In some practice areas, where clients are not necessarily sophisticated consumers of legal services, a brochure explaining the legal process can help you educate your client and manage their expectations; i.e., a personal injury practice, a divorce practice or an estate practice where issues relating to the development of a will and estate plan can be overwhelming to a client.

Brochures can be developed by a marketing professional or by you, using your word processing software and the resident brochure template. If you are going to develop a brochure, before you start, determine the purpose of it, your audience and the most effective way to develop and distribute it. The ABA’s LPM section has excellent resources for marketing your practice. Go to www.abanet.org/lpm/catalog

Marketing Tip #5 – File Closing Letters and Client Surveys
The use of file closing letters at the end of a case is not only a good discipline for ethics and risk management reasons, but also a way to pleasantly end the relationship. A file closing letter should state that the matter on which you represented the client has concluded. It should contain the final bill, if appropriate. It should inform the client that you are closing their file and will store it for whatever retention period is appropriate; and, that at the end of that retention period, the file will be destroyed. The file closing letter can also be used to thank the client for the opportunity to represent them in the matter and contain an offer to assist them in the future with any other needs they might have. You should state your firm’s other areas of practice. A client survey can be included with the file closing letter which provides the client an opportunity to provide you with feedback as to their satisfaction with the legal services rendered and as to how they were treated by not only you, but your staff.

Marketing Tip #4 - Develop a marketing plan
Most lawyers cringe at the concept of developing a marketing plan. How many of you roll your eyes when one of your partners calls a meeting of the attorneys to talk about marketing? Many think they need a professional "marketer" to develop a plan. Developing and ensuring implementation of a marketing plan for a medium-size to large firm probably requires a person with marketing expertise. But the solo or small firm practitioner can’t afford and doesn’t need a marketing person to help them develop a plan. The small firm practitioner needs to commit some time to identifying potential client and referral sources and to developing a plan for getting in front of those sources on a regular basis. Set weekly, monthly and quarterly goals for 1) surveying existing clients as to their degree of satisfaction with your services, 2) getting in front of potential clients, 3) making contact with referral sources, 4) meeting new people, 5) participating in a civic, religious or community meeting, 6) attending a local bar meeting, 7) participating in a CLE program, 8) hosting a dinner party or 9) writing an article for the local or state bar publication or your local newspaper. Record all of your marketing activities as to date, activity, who you met or talked with and any business that may result from it. Review your efforts monthly and quarterly and follow up as appropriate. Marketing your practice requires some planning and discipline. The reward is building a practice made up of clients that you enjoy working with in an area of the law that you’ve chosen to develop.

Marketing Tip #3 – How did they do it way back when?
How have lawyers historically built their law practice? The way any business man or woman builds a business . . . through relationships. What relationships or associations interest you most? Is your church affiliation a priority? Are you a coach or official for recreational sports? Are you a member of your local chamber of commerce? Are you on the board of a non-profit charitable organization for a cause you admire and want to support? Are you on your local school board or counsel? Do you participate in family reunions? Are you a member and active in your local and state bar association? Do you play golf or tennis? Are you a member of a country club? Are you a regular at your YMCA? When was the last time you took a potential client or a referral source to lunch? Building relationships is key to building a law practice. In most cases clients still hire the lawyer rather than the law firm. A bit of advice: Building relationships takes time. Don’t get involved in any of these activities for the sole purpose of getting business. Your participation in outside activities should express your passion about those activities or causes. You should do something you enjoy. The relationships will then easily develop out of common interests and passions.

Marketing Tip #2
First impressions are lasting impressions. Is the first impression a potential client has of your office, building and reception area first-class or second-rate? Is your office waiting area well-appointed? Is your furniture comfortable? Do you have current reading materials on the coffee and side tables? Are there brochures relative to your practice area available for clients to review while they wait? Does your receptionist answer the phone in a timely manner? Are callers provided a chance to speak with your assistant or to leave a message on voice mail if you are not available? Is the receptionist pleasant to clients who call and come to your office? Do you offer your clients beverages while they wait? Are clients made to wait too long for you to appear? Do you have a well-appointed conference room to meet with your clients? Is your office organized and neat, if that is where your client meetings take place? Are papers strewn throughout your office and common areas, on file cabinets and desks, or are they neatly filed? Does your office say, "organized", "competent" or "chaos"? Clients who come to you need help with a situation or event that, for them, is the most important thing in their life. Does your office reflect the type of place your clients can trust with the most important event in their life?

Lawyers have always marketed their practice
According to Jim Calloway in a recent article in GPSolo, lawyers generally do not have a clear grasp on how to market their practice. He states that lawyers generally equate marketing with advertising; when, in fact, advertising is only one of many ways in which a law firm can market its services. In fact, Mr. Calloway reminds us that while advertising was only permitted in the legal profession a quarter-century ago, marketing has been around since the beginning of the practice of law. In his article, "Marketing Magic for Lawyers", which appeared in the April/May issue of GPSolo magazine, Mr. Calloway reminds us that the best way to market a law practice has nothing to do with advertising. It has everything to do with building relationships and providing quality work and service. What are the best ways to market your practice? How can you attract the best clients? The next few weeks of tips will try to answer that question. Here’s the first installment:

Marketing Tip #1
Provide quality work and service to your clients. The best referral opportunities you can develop are those from satisfied and happy clients. Be sure you are accepting cases that you have the expertise to handle. Be timely in meeting deadlines and responding to critical dates for each matter. Communicate frequently with your clients, returning phone calls promptly and keeping them abreast of the status of their case. Be pro-active in your client communication rather than reactive, copying them with correspondence related to their case and providing monthly detailed billing. Thank them for their business and provide them a chance via a client survey to tell you how well you did. Be sure to take seriously any comments that would help you improve your client service and implement them.

To obtain a copy of Mr. Calloway’s article entitled, "Marketing Magic for Lawyers", which appeared in the April/May 2002 issue of GPSolo, call 312-988-5648.

Accounting Tips
1. Establish a firm operating account, payroll account and a trust account.
2. Post deposits and withdrawals daily.
3. Make a copy of checks received and deposit slips. File them in a "Receipts – 200_" file. Additional copies of trust account checks can be filed in a client file.
4. Make deposits daily.
5. Avoid holding cash (or checks) in your office.
6. Reconcile bank statements monthly.
7. Establish separate trust ledgers for each client.
8. Reconcile client ledger balances with the monthly bank statement.
9. Provide a receipt to clients for cash payments.
10. Have cash payments witnessed by someone else in the firm.
11. Pay firm invoices when due.
12. When invoices are paid, record the date paid, the check number and the amount paid on the invoice and file by vendor name.
13. A firm owner or partner should sign all checks written and review the invoices or other documents that are the source of each check.
14. A firm owner or partner should open and review bank statements before the bookkeeper receives them.
15. A firm owner or partner should review bank account reconciliation statements monthly.
16. Automate your firm accounting function.
17. Post client expense advances as an "accounts receivable" rather than as an expense. Client expense advances are expected to be reimbursed and should be categorized as a "loan" to the client.
18. Routinely write off accounts receivable that are deemed uncollectible.
19. Do not commingle client funds and general operating funds.
20. Know the number of days your bank requires pass before funds are available and never distribute trust funds against a check that has not yet "cleared" the bank.

Cash Flow Blues

Are you frequently singing the cash flow blues? If you are checking the deposits every day (and driving your bookkeeper crazy) to see what has come in because you are spending it faster than you’re receiving it, you need help managing your cash. Here are ten tips to help you relax about your cash.

1. To best manage your cash flow, you need a monthly cash flow plan showing projected revenues and expected expenses for each month of the year. A cash flow plan is a living and breathing tool that reflects both what has actually happened relative to revenues and expenses and what you expect will happen in the future. It shows where you are now and where you will be in the coming months. By updating and reviewing the cash flow plan monthly (or more frequently), you will know how much revenue you will need to generate to cover expected expenses and can take steps to ensure that you have adequate cash flow.

2. Consider putting aside a % of your monthly revenue each month until you have put aside an amount equal to one month’s expenses. This will be your "rainy day" fund whenever you have an unexpected expense or an unexpected dip in revenue.

3. Establish a monthly draw of income based on what you think the firm will generate in net profit each month. You can take a second draw quarterly of any excess profit that has not been paid. Distribution of income should be based on the firm’s net profit. Avoid distributing more income than the firm’s net profit can support.

4. Put aside funds monthly for large expenditures that are paid in a lump sum each year.

5. Avoid borrowing to pay partner draws.

6. Aggressively pay down any debt you have and pay off your line of credit each year.

7. Bill monthly.

8. Aggressively manage your accounts receivable.

9. Automate your firm accounting function. In order to effectively manage your firm finances,
you need information that is most easily obtained when the accounting function is automated.

10. Manage your personal finances with the same discipline as your firm. Avoid living beyond your means.

Poor firm cash flow planning coupled with poor personal financial management can lead you to make poor decisions. Avoid the cash flow blues by putting these principals into place in your firm.

Law Firm Staff Training
When was the last time your non-legal staff attended a CLE seminar that addressed issues of ethics? Have you ever spoken with them about the Rules of Professional Responsibility? Do they know they exist? If you have recently hired non-legal staff who do not have experience working in a law firm, chances are they don’t know anything about the Rules of Professional Responsibility under which you practice. What about how to handle difficult clients, client confidentiality, conflicts? Proper management of the firm’s trust account is another critical area on which staff must be educated.

Send them to an ethics or law office management seminar which is specifically targeted for non-legal staff. An annual seminar is produced each fall by ANLIR and the TBA, specifically for staff. Better yet, conduct a 1-hour "lunch and learn" each month on the ethics issues that most relate to the staff’s role in your practice. If you don’t have time to prepare for a monthly presentation yourself, call TnBar Management Services to schedule a "lunch and learn" for your staff.

The training of non-legal staff in the area of ethics and client relationships is a critical component of law office staff education. Take advantage of the educational services being provided in this area by your state bar.

Are You Assisting In The Unauthorized Practice Of Law?
Ethics Consideration 3-6 of the Tennessee Code of Professional Responsibility states that the delegation of tasks to non-legal staff is proper so long as the lawyer maintains a direct relationship with the client, supervises the delegated work and maintains responsibility for the work product.

Canon 3 of the National Association of Legal Assistants’ Code of Ethics and Professional Responsibility also provides guidelines as to what legal assistants are and are not permitted to do. Legal assistants, according to their organization’s rules, may not 1) establish an attorney-client relationship, 2) set fees, 3) give legal opinions or advice or 4) represent a client before a court or agency unless authorized by the court or agency. Legal assistants may 1) conduct client interviews, 2) locate and interview witnesses, 3) conduct investigations, 4) conduct legal research, 5) draft legal documents, 6) draft correspondence and pleadings for the attorney’s signature, 7) summarize depositions, interrogatories and testimony, 8) attend executions of wills, real estate closings, depositions or administrative hearings and trials with an attorney and 9) author and sign letters. However, the legal assistant must be properly identified as a legal assistant in all of these functions; all of these tasks must be done under the supervision of the lawyer and reviewed by the lawyer.

Legal assistants can be an important asset for the firm in terms of file management and client communication. They are many times a profit center for the firm. However, the effective use of non-legal staff on a client matter must be within the confines of the ethics rules pertaining to the unauthorized practice of law.

Most software (e.g., case management, time & billing, word processing), and lots of hardware (e.g., switches, hubs and NICs, and printers, etc.), come with full product manuals in PDF format. The manuals can be far more helpful than the "Help" button. However, these manuals are often hidden from easy access. For example, WordPerfect 9 comes with a 700+ page book, in PDF format, but its hidden in C:\Program Files\Corel\WordPerfect Office 2000\Shared\Refcntr (if you go to this folder you’ll also find other useful manuals).

Create a folder on your local drive called "Manuals." Find all your hidden manuals and copy them to the new folder. If you have a local area network, create the "Manuals" folder on the file server and put the copies there. Then, from Windows explorer, create a shortcut on each work station desktop to the "Manuals" folder. Now everyone in the office can find the Time Matters or PC Law or WordPerfect book in seconds! Of course, if you’re a laptop user, you’ll want to copy the "Manuals" folder to your laptop or put it on a CD.

PDFing without Acrobat Although Adobe’s Acrobat has better name recognition, there are free and low-cost alternative products available that may meet your needs:

"Free PDF" is freeware that creates PDF files from any windows-based application. Download it at http://www.adobe.com/products/acrobat/readstep2.html (You might find installation is a bit difficult but it is manageable if you closely follow the instructions. Hey, it’s free!)

Win2PDF is an affordable tool for creating electronic documents in the PDF file format. A trial version is free; a single-user license is $35. Win2PDF installs as a printer under Windows NT, Windows 2000, or Windows XP. Creating a PDF file is as simple as selecting the "print" command from any application. A file will be created which can be viewed with a PDF viewer on any type of computer. This is a Zdnet Editors’ Pick. To download visit www.daneprairie.com.

Another product is pdfFactory, from FinePrint Software (www.fineprint.com). The entry-level version is $50. Like Acrobat PDFWriter, it installs as a printer, but has two main advantages over PDFWriter: the ability to preview and edit the product before the PDF file is made, and the ability to create a single PDF file from a number of different print files in different Windows programs.

Fourteen Open-ended Questions to Ask in an Employment Interview
As discussed in our last tip, when hiring a new employee, take time to prepare. That preparation should include designing questions to ask each job applicant. Open-ended questions tend to elicit broader responses from job applicants. Questions that reveal behavior, personality and character are more productive than questions that just reveal technical skills. Try to ask each applicant the same core questions to provide the best comparisons.

These 14 questions should help:

1. What is important to you in a job?
2. When you are under a lot of stress, what is your typical reaction?
3. What motivates you the most?
4. Have you ever made an error in judgment that you had to address with your
employer? How did you handle it?
5. What do you expect to find at this law firm that you don't have in your
current or last job?
6. How do you measure your own success?
7. What are two examples of tasks that you do not particularly enjoy doing?
8. How were you motivated enough to complete those tasks?
9. Tell me about your software skills - the programs you know and what you can
do with them.
10. Tell me about the best boss you ever had. Now tell me about the worst boss.
11. What made it tough to work for him or her?
12. Have you ever been in a situation where a document was returned due to
errors? What effect did this have on you?
13. If you took out a full-page ad in the newspaper and had to describe yourself
in only three words, what would those words be?
14. Have you ever had to resolve a conflict with a co-worker? How did you
resolve it?

Hiring an employee can be one of the biggest investments a solo can make. The key to hiring the right person is in the preparation. Proper preparation helps you make the right decisions on whom to hire. Whether you are hiring a secretary, law clerk, paralegal or associate, here are eight proven steps to a successful hire:

1. Prepare or review the job description to make sure it accurately describes the duties and responsibilities of the position.

2. Write a persuasive advertisement, being careful not to oversell the job; advertise the position in publications that attract quality candidates.

3. Be flexible about scheduling interviews. A good candidate may have to be scheduled after his or her normal working hours.

4. Review the resume or application in advance to learn the basic information about the person.

5. Conduct the interview in a quiet area, free from interruptions.

6. Set the tone for the interview by making the applicant feel at ease. Use his or her name. Take a few minutes to break the ice by talking about an item of interest from the applicant's resume.

7. Don't oversell your practice or the job. If the job is not up to the expectations you create, your new-hire may leave sooner than you'd like.

8. Ask open-ended questions. Try to ask the same questions of all applicants. Listen carefully to the answers and take notes. (If you take notes about an applicant, it is best to take notes for all--you never know when you may need them.)

If you are starting a new practice, or you are not enjoying the type of cases you are presently getting, work on focusing, or re-focusing, your practice. This is particularly important for new lawyers, who run the risk of either being overwhelmed because they try to handle everything that comes in the door or doing nothing because potential clients don't identify them with any particular area of the law.

Once you select a focus area, or two areas which will complement each other, do market research to determine whether that practice niche is already filled in your community. If not, begin to identify the clients you want. Define them by geographical area, gender, age, education, occupation, financial and marital status. Then determine where you can expect to find such people and the best methods to make them aware of your services. Review your state or provinces rules of professional conduct before designing your marketing efforts. Develop a marketing plan with qualitative standards, pursue it steadily, and review your results frequently.

For assistance in developing and evaluating your marketing plan, contact your bar's law practice management section or practice management advisor. Or check out the marketing books available from the ABA at http://www.abanet.org/abastore/index.cfm.

The File Nobody Wants
Is there a file in the office that you just can't stand to look at? (It's often related to a client you really can't stand.) Has it been languishing on the corner of your desk or just out of sight on your credenza? Is a deadline approaching or recently passed? You know you’ve got to tackle it, but just can't seem to get started? These unwanted files are a major cause of grievance and malpractice complaints, and can cause the premature end of a lawyer's career. And almost every lawyer has one of these "dog" files. Sobering, yes, but how does one deal with the "dog" file? Here are several ways to get moving on it and extract yourself from a potentially dangerous problem:

1. If you are in a small firm, trade the file with a colleague. Approach your partner or another associate and offer to trade your "dog" file for hers. At least this way you don't already have problems with the client.

2. Call a valued colleague and ask him to lunch. Hypothetically, explain the case. Ask him what he would do, where he would start, how he might proceed. If the advice is good, buy lunch. : - ).

3. Open the file and start working on it immediately. (And that means RIGHT NOW!) Sometimes our own procrastination is the real problem. Just open the file and start reading it, as ideas and tasks come to mind, write them down. Work on the file for a minimum of thirty minutes. If you can, work longer. When you can't work anymore, schedule time on your calendar to work on it again tomorrow. As you re-familiarize yourself with the file, it will become easier to work on.

Have you noticed that as the years go by, you forget the rules of proper grammar and punctuation? (I personally have already forgotten everything I learned in elementary and high school.) Poor grammar in a letter or other document can cast the wrong impression. Well, help is on the way via the World Wide Web. Bookmark http://webster.commnet.edu/HP/pages/darling/grammar.htm, loaded with lots of resources, including "Ask Grammar," a way to ask a college professor your most intimate grammar questions–for free! Another web site with on-line assistance and a downloadable computer program that goes beyond the grammar functions in your word processor is http://englishplus.com/grammar. Now, how many grammatical mistakes are in this post?

A recent Law Technology News article written by Robert Ambrogi provides a list of ethics websites, some of which are listed here for those of you who may be "in search of ethics." Check these out:

• American Legal Ethics Library (wwwsecure.law.cornell.edu/ethics) from Cornell Legal Information Institute
• ABA Center for Professional Responsibility (http://www.abanet.org/cpr/home.html)
• ABA/BNA Lawyers’ Manual on Professional Conduct (http://www.bna.com/products/lit/mopc.htm). Requires a paid subscription, but BNA offers a two-week free trial.
• Legalethics.com (http://www.legalethics.com), addresses, among other things, ethical issues raised by the internet.
• A Good Lawyer is a free on-line book written by McLean, VA lawyer Stephen W. Comiskey) (http://www.agoodlawyer.com). A folksy view of legal ethics, according to Ambrogi.
• American Judicature Society (http://www.ajs.org) promotes judicial-legal ethics and fair and effective system of judicial discipline.
• The Law Office Hornbook (http://www.hornbook.com/index.htm)
• Association of Professional Responsibility Lawyers, (http://www.aprl.net)
• National Association of Bar Counsel (http://www.nobc.org). Provides a semi-annual compilation of ethics cases.

No matter how good of a lawyer you are, you may not have adequate systems in place to help you avoid a malpractice claim or ethics complaint. If your practice has experienced significant growth either in volume or practice area mix and/or you have experienced some turnover in staff, you may want to take a look at your practice systems and organization. A periodic review of your procedures and systems may be warranted to insure that you are taking the necessary steps to avoid malpractice claims and ethics complaints. What areas should reviewed? The ABA Standing Committee on Lawyer’s Professional Liability’s publication, The Lawyer’s Desk Guide to Preventing Legal Malpractice, identifies the following "administrative" areas that give rise to malpractice claims: 1) missing deadlines, 2) miscommunication between attorney and client, 3) taking "bad" clients, 4) insufficient file documentation, 5) lack of familiarity with ethics rules, 6) failure to act promptly in response to a potential malpractice claim, 7) conflict of interest issues and 8) suits for recovery of fees.

Do you have a policy for dealing with clients who have become unhappy with the level of service they are receiving or with their representation? If not, you should consider establishing a policy for the firm. In addition, put it in writing and make sure everyone in the firm has a copy of it and abides by it. You should consider the following suggestions in formulating your policy:

1) Be responsive. Instruct staff to be empathetic with an unhappy client caller, to take a detailed message, reassuring the client that someone will soon get back to them about their concerns.
2) Notify the responsible lawyer immediately. Calls from unhappy clients should be immediately returned by the responsible lawyer for the client file or the lawyer in the firm responsible for handling dissatisfied clients. If a lawyer delays in returning the unhappy client’s call, the next call the client may make may be to the Board of Professional Responsibility.
3) Face-to-face meeting with the client. If possible, a face-to-face meeting with the client should be scheduled to discuss the concerns and issues the client has as to their representation and service received. The client’s file should be documented as to the concerns expressed and any agreement as to how those concerns will be addressed by the firm.
4) Withdrawal. If the client’s concerns cannot be adequately addressed by the lawyer or the firm, the lawyer may need to suggest that the client consider obtaining other counsel and take the necessary steps to withdraw from the case in compliance with Tennessee’s Code of Professional Responsibility, Disciplinary Rule DR2-110. Again, the client file should be adequately documented.
5) Client surveys. To nip a potential problem in the bud before it becomes a real problem, give clients a chance to "vent" any frustrations they experience during representation via a client survey. Be sure to respond to the comments received on any surveys that clients take the time to complete and return.
6) Prompt reporting of a potential claim. Finally, be familiar with your obligation to promptly inform your malpractice carrier as to any potential claim. Check your malpractice policy as to your duties to report a claim or potential claim to your insurer.

Did you know that you need to accurately reflect on your malpractice application the percentage of time you spend in each of the areas in which you or your firm practices? Why? Well, it may affect your premium. The malpractice provider ANLIR tracks claims by the Area of Practice which gives rise to those claims. According to an article in the most recent Today’s Lawyer, a quarterly publication by ANLIR, every carrier’s rating structure reflects the discrepancies between the percentage of claims which arise in various practice areas. Therefore, ANLIR advises you to be sure to accurately estimate your firm’s speciality areas on your malpractice application.

How do you do that? There are a couple of ways. If your time and billing system is automated, there is most likely a "field" in the new client entry screen where you can indicate the type of practice area for that client. Typically, time and billing software applications arrive with some default practice area categories and codes and you most likely can also edit the list to more accurately reflect your practice. At policy renewal, print a report of hours worked by practice area and determine the percentages from that report.

If your time and billing system is not automated, you could post your fee receipts by practice area on the income statement of your firm accounting system. In other words, instead of posting all receipts to a category such as "fee revenue," set up subcategories under "fee revenue" for "personal injury", "real estate", "domestic", etc. Post receipts to these categories so that at the end of the year you can see what percentage of firm revenue is attributable to each practice area. Basing the estimate of the percentage of time your firm spends in each area of practice on fee receipts versus hours worked may not provide you an accurate picture of your practice area mix; but, it is better than guessing.

When you print multi-page documents do they come out of your printer in the wrong order? Does someone have to re-shuffle the pages into the proper order? In Word, just go to "File", "Print", "Options" and check the "Reverse Print Order" option and they will come out in the right order for you.

This week: Two tips for the price of one (or none)

Increase the font size on your wills, trusts, cover letters and other form documents often read by elderly, or soon to be elderly clients. They will appreciate this small touch for many years to come.

Create a "Library" subdirectory (or sub-folder) in your word processing directory. Use this to store finished briefs, memos and other revisable documents. File these documents by subject, not original client name. When similar legal issues arise, you can easily retrieve the document to use as the basis for your new one.

On-line Holiday Shopping Tips For Busy Solos
Shopping online can be extremely helpful for some gifts but it can also be time consuming and outright exasperating if you are using a dial up modem and it is going slowly. On the other hand, if you know what you want and do not want to fight the malls, then it can be a great way to shop. I would much rather be annoyed by a slow modem than a slow and often rude sales clerk. Here are a few tips to make on-line shopping a good alternative to the crowded malls and long lines:

1. You should never shop at a site that does not give an address or phone
number.

2. If you don't know exactly where to start and do not know which site to visit directly, you should start with some sites that provide assistance with 1) categorizing shopping sites and /or 2) doing comparison of sites for prices.

Price comparison services, known collectively as "shopping bots," can dig through dozens of stores in just a few seconds returning not only price but in-stock information, total shipped price and a host of other information, total shipped price and a host of other consumer service-related information. A bot-short for robot- is a software tool for sorting through data. You give a bot directions and it brings back answers.

Some shopping bots are: Mysimon.com, bestwebbuys.com. In addition, this year I recommend an excellent article on shopping bots with descriptions and evaluations of the best shopping bots at http://www.botspot.com/dailybot/shopping_99.html. (Yes, Virginia, there is a website devoted to shopping bots!)

3. Use only secure sites and there are two ways to know that its is a secure site. When you start to purchase a product, a screen will pop up and say that that you are about to enter a secure site. In addition there will be a small icon on the left (Netscape) or right (Explorer) that will show a lock. This indicates this is a secure site and all information sent to is encrypted.

4. Start with a list the same as you would if you were going to the mall.

5. Since you can shop at any time, you should schedule your shopping trip at off-hours because like the mall, there are times that are more busy than others.

6. Check to see if there is a customer service number with a real person at the end of the line in case you have difficulties.

7. Check the company's return and exchange policy. Find out if purchases done on line can be exchanged at the bricks and mortar retail store. In many cases the answer is no.

8. Check to see what happens if the gift is not delivered in the time promised. Do you get a refund? Do you simply have to accept it late?

9. Always print your order information once you have made your purchase and keep it in a folder. Check them against your credit card bills when they arrive. This is similar to keeping your credit card receipts.

10. Do not give the e-tailers permission to keep your credit card number on file. If it is required, shop elsewhere.

11.In order to avoid having your mailbox deluged with future notices and ads, open a free e-mail account with Hotmail or Juno and give that address for any information that you do not want cluttering up your regular e-mail account.

Have fun!

You have most likely heard the saying, "perception is reality". In the case of office sharing, this can be particularly true.

When sharing an office with another attorney, certain ethical and practical issues must be addressed. First, avoid creating a false perception of the type of entity in which you are practicing. Your office signage and printed materials may give the impression that those with whom you share office space are your partners. Check your office signage and be sure it includes an explicit designation of you as a "sole practitioner" or "not a partnership".

In addition, your printed materials such as letterhead, business cards, invoices and brochures should be separate for each practitioner. Separate telephone lines with different telephone numbers is preferable. Include in your engagement letters language stating you are not affiliated with or responsible for other lawyers. Explain to your clients the difference between a partnership and an office sharing arrangement.

When making referrals to an office sharer, include a disclaimer that states the office sharer is not a partner or an associate. Include other attorneys on the referral list. Other issues such as client confidentiality and conflicts of interest should be considered.

Finally, be aware that you could be included in malpractice claims arising from the negligence of another office sharer by virtue of your office sharing arrangement. Be sure you have taken the necessary steps to inform your clients and the public that you are a separate entity.

During this week of Thanksgiving, take the time to thank your co-workers and employees for their effort and work on your behalf this year. Pay a visit to your clients between now and the end of the year to thank them for their business and trust. Thank your partners for their support of your practice. Thank your family for their love and support throughout the year. Call your parents, sisters, brothers and other extended family members to thank them for what they have meant and continue to mean in your life. Tell your friends what their friendship means to you. If it is your policy to only take Thanksgiving day as a holiday, take Friday, too. Spend Thanksgiving with those who mean the most to you - make the effort - you’ll be glad you did. Make the office "off-limits" this holiday. Though life can be trying and sometimes tragic, be thankful for its joys and triumphs even in the face of adversity. Have a happy Thanksgiving holiday and keep the memory of those who are not here to celebrate it with us close.

As an associate, you also play a significant role in the performance evaluation process. Associate attorneys must take responsibility for the development of their practice. In doing so, you must establish your own goals and objectives for practice development and evaluate whether or not the opportunity at your present firm is allowing you to reach your goals.

You should approach the formal evaluation meeting as an opportunity to ask questions or raise issues you feel are important to your career satisfaction with the firm. When presenting issues you feel the firm is failing to address, you should be prepared to state how you intend to help resolve the issue as well. There is an excellent book which addresses the role of the law firm and the lawyer in creating career satisfaction. It is entitled, Keeping Good Lawyers, Best Practices to Create Career Satisfaction by M. Diane Vogt and Lori-Ann Rickard. It is available for purchase through the ABA’s Law Practice Management Section. Go to http://www.abanet.org/lpm or call 1-800-285-2221.

Year-end is upon us and it may be time for associate evaluations in your firm. Are you ready?

The process of evaluating associate performance should not be a one-time event. Hopefully, you have been communicating with your associates as to their strengths and weaknesses, successes and failures throughout the year. But, if you have not, be sure to be prepared to do so during a formal evaluation meeting with the associate and make a new year’s resolution to provide informal feedback to your associates throughout the year beginning January 1.

Be sure that your year-end evaluation is based upon performance criteria that has been established and communicated to the associates. An evaluation form which enumerates these criteria and provides a scale for rating performance might be a helpful aid to focus the evaluation on the established criteria. Associates should be evaluated only by those partners who have had significant direct contact and experience with the associate. The evaluation meeting should include those same partners.

Finally, it might be wise to separate the formal evaluation meeting from the meeting where salary raises and bonuses are communicated. You don’t want the associate to fail to hear your constructive criticisms because he or she is focused on the amount of raise and bonus they have received.

What are the ethics issues related to law firm web sites and e-mail? Good question.

Ethics rules are still attempting to catch up with these "emerging technologies." Generally speaking, however, a law firm web site may be considered an advertisement and, if so, must comply with DR2-101 - Communication Concerning a Lawyer’s Services - and all other applicable disciplinary rules.

You need to be sure your Web site avoids creating unjustified expectations and using false and misleading statements. It should also avoid creating a lawyer-client relationship between the visitor and your firm. The use of an extensive disclaimer is encouraged. (Go to Siskind, Susser, Haas & Devine’s Web site at http://www.visalaw.com and King and Spalding’s Web site at http://www.kslaw.com/our_firm/Disclaimer.html to view two examples of Web site disclaimers.)

Answering unsolicited legal questions over the internet is another area of concern and possible exposure. Providing pre-fabricated forms to be completed by visitors to your site that are intended to produce a "customized" a legal document for the "client" is ripe with risks. Practicing outside your jurisdiction and giving erroneous advice based on incomplete information are risks that should be avoided.

If there is ever a reason to automate your practice, protecting the business continuity of your firm in the event of a disaster is one.

After securing the safety of your personnel, one of the first issues that will arise in the event of a disaster is one of critical dates and deadlines. A paper tickler or calendar system that has not been duplicated and stored off site will be blown away by a tornado. Paper files with critical client information, documents and contact information may not survive a fire. Card indexes which contain client information and conflicts information may be destroyed by water. And, what about the financial survival of your firm? Keeping time on paper and storing the time records in (paper) client files exposes your firm to a significant loss of revenue in the event of a disaster. Accounts receivable records and work in progress may be lost in a disaster if you are still using a paper system for your client time and billing.

Disaster is never expected and no one is ever prepared for it. But, it happens.

What can you do to minimize, if possible, the impact of a disaster on your practice? First, you must prepare to protect the human element - the most important obligation you have. A written evacuation plan for your office personnel and frequent scheduled and unscheduled evacuation drills may save the lives of your employees in the event of a fire or tornado. Keep emergency exits clear. Maintain emergency equipment and supplies on site. Select a location outside your building for employees to regroup in the event your office has to be evacuated. Provide an opportunity for your staff to receive training in emergency first aid procedures and CPR. Provide all employees a list of emergency numbers.

Have you considered how your practice would survive your death or disability? Have you protected your clients’ interests if such an event occurred?

There are a number of steps that you should take in order to protect the interests of your clients as well as the viability of your practice in the event of your death or disability. Selection of an attorney to serve as your "back-up attorney" and giving him or her appropriate authority (in writing) to act in the event you cannot continue your practice is key for the solo practitioner. Good file organization and an up-to-date calendar system is also key to protecting the interests of your clients. Be sure your trust account procedures are adequate and that you have provided appropriate authorization to allow the back-up attorney to access trust funds, if necessary. This will ensure that clients’ funds can be made available to them in a timely fashion.

There are a number of other issues to be considered in preparing your practice for disaster. For more information, contact TnBar Management Services at (615) 377-1029. In addition, this topic will be discussed at the November 2001 risk management seminars for staff being held in Memphis, Nashville and Knoxville. Registration information is available on TBALink.

But It's an Emergency! Communicating with Clients
Many lawyers at some point contemplate whether or not they should give their home phone numbers to clients in case of an emergency. It's a simple question without an easy answer. It depends upon the nature of the practice, the location and your comfort level of allowing clients to intrude into your personal time. If you do decide to let clients know you are available at home in the case of an emergency, then it is critical that you and not the client determine what constitutes an emergency. You should put your guidelines in writing for distribution to all clients (especially all new clients) describing when it is and when it is NOT appropriate to call you at home for an emergency. Decide whether you want to charge extra for this service, especially for clients who use your home number as a convenience, rather than for true emergencies. Disclose this extra charge to clients in your fee agreement. In addition, you may also want to consider having a separate line at home for these client emergencies.

The Practice Tip of the Week is a service of the Practice Management Advisors Committee of the ABA Law Practice Management Section. The PMA Committee is comprised of bar-sponsored practice management advisors from state bar associations and law societies in the U.S. and Canada. The tips are not meant as legal advice, nor binding on any bar association or law society.

Let your clients know you are always available to answer their questions about your bills. You can make the statement in the initial consultation, and put it in writing in your written fee agreement. Encourage them to read your bills thoroughly when they arrive. Also, consider a clause that limits the time a client may question specific charges - say, within 30-60 days of receipt - to encourage the client to address the issues sooner than later. Your clients will appreciate your willingness to be open about your fees and services.

The Practice Tip of the Week is a service of the Practice Management Advisors Committee of the ABA Law Practice Management Section. The PMA Committee is comprised of bar-sponsored practice management advisors from state bar associations and law societies in the U.S. and Canada. The tips are not meant as legal advice, nor binding on any bar association or law society.

Ever thought about including return-addressed envelopes with your monthly bills? Lawyers who do report faster payments from clients. Use No. 10 business envelopes for your bills, and use No. 9 envelopes to pre-address and slip neatly inside the first envelope. Whether you add to the service and include return postage is your call!

The Solo Practice Tip of the Week is a service of the Practice Management Advisors Committee of the ABA Law Practice Management Section. The PMA Committee is comprised of bar-sponsored practice management advisors from state bar associations and law societies in the U.S. and Canada. The tips are not meant as legal advice, nor binding on any bar association or law society.

When you are engaged by a new client, provide him or her with a sturdy file folder bearing a label with your firm's name, address, phone and fax numbers, e-mail, etc. Place a signed copy of the fee agreement in the file as the first document.

Further explain to the client that you will be sending copies of everything related to the case, both documents you generate and those you receive, and that the client should place these documents in the file immediately when received. Many clients don't have an adequate at-home filing system; the things you send, therefore, may end up on the kitchen counter decorated with applesauce or as someone's telephone message slip. By the end of representation (or at any point in between), your client will have a complete copy of their file.

The Practice Tip of the Week is a service of the Practice Management Advisors Committee of the ABA Law Practice Management Section. The PMA Committee is comprised of bar-sponsored practice management advisors from state bar associations and law societies in the U.S. and Canada. The tips are not meant as legal advice, nor binding on any bar association or law society.

Remember that clients are often under considerable stress (from their legal problems) the first time they visit a lawyer. Your explanation of your fees and costs may be a model of clarity, but it may not sink in. Give your explanation in writing as well as verbally. If a lot of money is at stake (in the eyes of the client), allow the client time to think it over before committing to your fees. Clients who "buy in" to a fee agreement are more likely to abide by it. Then take the initiative to periodically discuss the amount of fees throughout your representation. If at any given point the fee does not comport with the client's expectations, resolve the situation as soon as possible--don't let it fester until the attorney/client relationship is irreparably damaged.

Communication with the client begins at case acceptance. After the screening process has been completed and a decision to represent the client has been made, the attorney should discuss the merits and problems of the client’s case with the client. It is important that the attorney convey verbally and in writing (via an engagement letter) the following to the client:

• The issues involved with the case.
• The problems regarding the case.
• The process involved in pursuing the case.
• The client’s obligations throughout the case and any specific requirements of the client.
• The estimated time frame for case resolution.
• The economics of taking the case to trial or settling the case.
• The attorneys and/or staff who will be involved with the case.
• How the firm will manage the case.
• How the firm will communicate case status with the client.
• Warning: Avoid any guarantees to the client regarding the outcome of the case.