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In this digital age, technology has become essential to the delivery of legal services. Law firms use tech tools for a variety of reasons, including matter management, calendaring, client communications, and billing. While this reliance on technology has helped law firms improve client relations and the provision of services, it has also made the legal industry a common target for cybercriminals looking to steal valuable client data.
This increased risk has become all too apparent over the past few years, as several well-known law firms have been forced to deal with the disruptions of a cyberattack. The methods used by these criminals are becoming increasingly complex, which means that the frequency of law firm hacks will likely increase.
For this reason, law firm leaders and administrators must implement cybersecurity measures to fight this persistent threat. It is an ongoing battle that requires a consistent response.
Ransomware is often the weapon of choice for cybercriminals targeting law firms. With this type of hack, a third party takes control of a firm’s files by encrypting them and denying any access to firm members, unless a requested amount of ransom is paid.
A ransomware attack can leave an entire firm without the ability to work, which immediately decreases revenue. Additionally, the firm may face consequential damages, including:
Another common type of cyberattack against law firms involves an email phishing scam, where hackers pose as firm clients or third parties to trick employees into disclosing sensitive data or transferring funds to fraudulent organizations. Attorneys are particularly susceptible to email fraud attempts due to the personal relationships that may have with their clients. A spot-on impersonation may lower a target’s defenses, leading to significant losses.
In one infamous New York case, a law firm was successfully sued for malpractice by a client after hackers impersonated one of the firm’s attorneys to secure a fraudulent $2 million wire transfer. The attackers were able to gain access to the attorney’s AOL email account and analyze previous interactions with the client to successfully carry out the impersonation.
As you likely gleaned from the above, the financial and professional consequences of both ransomware attacks and phishing scams can be detrimental to a law firm, so it is critical to take the necessary steps at your own firm to prevent such an occurrence.
Preparation is the only adequate protection against a cyberattack. This starts with understanding the threat and the role that technology plays in reducing it. Attorneys have a duty to not only comprehend the practice law, but also the technology necessary to protect attorney-client privilege and sensitive client data. Most states specifically include this in their rules of ethics because the reluctance of attorneys to introduce technology tools into their law firms increases the chance for a breach.
By refusing to implement tech security measures, attorneys may be found in breach of their professional duty. In addition to ethical consequences, firms also face regulatory enforcement actions from the Federal Trade Commission when client data is not sufficiently protected.
However, there are steps that you can take to strengthen your firm’s protection against security hacks:
Cybercriminals capitalize on limited knowledge and bad habits. Law firms that ignore best practices and utilize weak security systems are essentially opening the door for attackers to access valuable data.
One of the most effective steps a law firm can take is consistently educating and training employees. Human error accounts for a significant number of cyberattacks on businesses. Training sessions should occur on a regular basis to educate employees about their role in preventing breaches. Regular reminders should also be a part of the training plan to ensure that these important duties remain top of mind.
When armed with the right tools, educated employees provide law firms with a strong first line of defense. By acting in a responsible manner, they help close gaps of vulnerability and provide your firm with greater protection.
A detailed audit identifies weaknesses before a breach can occur. The first step of an audit should include an inventory assessment to help your firm understand where you stand with respect to technology products utilized.
Technology consists of both hardware and software, as well as data. Hardware includes the maintenance of all computers, servers, laptops, and printers within the firm. Smart devices should also be included with hardware because they are often the vehicle through which attorney-client privilege is breached.
Taking inventory of software products involves a review of all licenses, keys, and passwords. Firms also need to make sure that all software is updated on a regular basis with the most recent versions. Outdated software is more likely to lack sufficient protection against continuously evolving cyberattack techniques.
Data inventory requires the consistent monitoring of what data is stored and how it is maintained. Law firms should consider designating a data administrator who regularly audits the firm’s data for ethical and regulatory compliance.
The second layer of the audit involves answering numerous questions about the firm’s security, such as:
Answering these questions will give law firm leaders and administrators a clear view of where the firm stands with its technology and where it still needs to go.
The services of a security expert can be useful during an audit to ensure that firm networks adequately store firm data. If employing an expert is not an option, a security consultant can also be contracted to assist with the audit.
The bottom line: law firms need to craft a security plan and implement it. Basic tools, such as spam filters, anti-spyware, antivirus programs, and network security protocols should be implemented. But your responsibility does not end there.
Many law firms often neglect their first point of contact with the outside world, which is the firm website. When cyber attackers see an outdated website, they may target the law firm under the assumption that their inadequate security measures extend to the entire firm.
Document management is another important component of an effective cybersecurity plan. Law firms maintain countless documents and files that must be handled and stored correctly. A secure document management system prioritizes the protection of files while they are in storage, as well as during transmission. A comprehensive practice management system and email encryption are two tools that law firms can use for successful document management.
A reliable backup system must also be a part of a law firm’s security plan. Cyberattacks can interrupt business in an irreversible way. A backup system helps you get back to work quicker, even in the wake of a disruptive ransomware attack.
Some law firms hire a security consultant that specializes in cybersecurity. Others contract an outside security expert to guide auditing, consulting, and implementation. Firms should include this necessary expense in their annual budgets. Firm leaders and administrators may also consider the cost of purchasing a cyber liability insurance policy for the firm.
Vendors should also be included in law firm security plans. Firms use third-party vendors for a variety of services and products, but they often take for granted that these providers are employing adequate security practices. Firms should review the security certificates of every vendor to ensure that their security protocols are up to par. Law firm vendors need an understanding of the unique importance of protecting law firm data. Their commitment to the protection of client data should match, or exceed, that of the law firm.
When law firm leaders fail to plan, implement, and enforce strict cybersecurity protocols, they are potentially exposing the firm to costly and damaging attacks. Though it will take some time and money to get adequate plans in place, when done correctly, it is one of the best investments a firm can make to deter fraudsters and keep client data secure.
DALLAS, TEXAS – November 5, 2021 – NetDocuments, the leading cloud content management platform where legal professionals do work, today announced the winners of their Inspire 2021 Partner Awards.
NetDocuments’ second annual Partner Awards recognize leading companies spanning the ISV network, implementation providers, international partner companies in Asia Pacific, EMEA, and Latin America, as well as partners across all NetDocuments business segments.
This year, the winner of the Inspire 2021 Partner of the Year Award was presented to Centerbase, a legal time & billing, accounting, and practice management platform. Centerbase is recognized for its relentless effort and understanding of the NetDocuments capabilities. Over the course of the partnership, Centerbase has been able to develop a superior integration with NetDocuments, supported by active and driven marketing of the integration, and has ultimately provided advertising of interactive updates and technical support to the thousands of NetDocuments customers. It is for these reasons that Centerbase was selected to be the recipient of this year’s award.
Rob Joyner, VP of Sales and Marketing at Centerbase, was virtually present to accept this prestigious award, “On behalf of the team at Centerbase, thank you to our friends at NetDocuments. Over the past five years, it has been an amazing partnership, we have been able to accomplish so much in the way of helping mid-size law firms. We are excited to continue the partnership and do great things in the future.”
Inspire 2021 is a virtual global conference designed for NetDocuments customers and partners. Tailored product and educational sessions; customer and partner case studies and innovation; and subject matter expertise are on display to showcase intentional innovation – innovation you can depend on and that’s inspired by legal teams around the world.
“The NetDocuments partner ecosystem has always been an integral part of our annual educational conference, and this holds true for Inspire 2021,” said Reza Parsia, VP, Strategic Partnerships, NetDocuments. “Our partners are constantly pushing the envelope to innovate and help our customers get the most out of their NetDocuments platform experience. Our second annual Partner Awards rewards this drive for “intentional innovation” and honors the ‘Partner of the Year’ across eight categories.”
The 2021 Inspired Award Winners, including all Partners of the Year, can be found online at www.netdocuments.com/inspire.
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About Centerbase
Centerbase is a cloud-based legal operations system that empowers midsize law firms to run their practice with confidence. It’s a highly scalable and configurable system that liberates legal teams from manual work by automating routine tasks and connecting them in a single collaborative workspace. Boasting a comprehensive feature set of billing, accounting, and practice management tools plus the ability to offer full-history data migrations, Centerbase has become the go-to solution for midsize law firms. For more visit centerbase.com.
About NetDocuments
Founded in 1999, with more than 3,400+ enterprise customers worldwide, NetDocuments is the legal industry’s most trusted cloud-based content services and productivity platform. Complete with state-of-the-art built-in security, compliance, and governance solutions, NetDocuments offers document management, email management, and collaboration technology complete with disaster recovery, enterprise search, and matter-centricity features. For more information about NetDocuments, please click here.
Most law firm leaders do not enter the legal industry with an accounting background, but a basic understanding is important to ensure the proper management of your law firm’s finances. Decisions about billing processes, the acceptance of payments, and trust accounting form the foundation for a firm’s financial success. Therefore, it is critical for law firms of all sizes to properly position their financial systems. It will not only save time and boost profitability but will also prevent several potentially serious compliance issues.
A lot goes into navigating the world of law firm accounting. Let’s explore some of those vital components:
Every firm is different, so identifying the best banking option depends on your specific needs and goals. The wrong bank could create financial complications for your firm and result in serious legal problems.
When choosing a bank, consider the following:
After conducting this research, you can make informed decisions about your best banking options and make plans to open the necessary accounts.
Law firms typically need a business checking account for the management of general business revenue, a savings account to set aside money for taxes or emergencies, and an IOLTA account for holding client funds in trust.
Some law firms also choose to open a money market account to take advantage of a higher interest-earning rate, as well as a business credit card for strategic practice growth.
For law firms that hold client funds in trust, the IOLTA account comes with its own set of detailed accounting rules and tasks. Noncompliance can result in severe penalties, so it is important to understand the complexities of trust accounting.
With so many different rules in place, it can be challenging to stay on top of all of them. Even still, some mistakes show up more often than others, with the most common stemming from these IOLTA rules:
As businesses, law firms must stay on top of their federal, state, and local tax obligations. The specifics of the obligations vary based on the type of practice, but most firms have a responsibility to pay the following types of taxes:
This is not an exhaustive list and firms may have a variety of additional tax obligations. As such, firms need a tax professional in their corner to help them navigate these vital responsibilities.
For firms that do not have an accountant on staff, a contracted Certified Public Accountant (CPA) can offer valuable guidance for meeting tax obligations and limiting tax liability. Accounting professionals can also help firms with financial forecasting, reporting, payroll needs, and trust accounting.
It is not an easy task to calculate legal time, so law firm payroll poses challenges that do not exist within other industries. Firm members may have varied pay structures, which requires a payroll process that offers flexibility.
Payroll accounting includes such components as:
The rise in outsourced legal work adds another layer to payroll duties. Law firms should carefully categorize employees and independent contractors for payroll and taxation purposes. Incorrect classifications could lead to fines and legal consequences.
Invoicing is arguably the most important part of law firm accounting, as it is the mechanism by which firms bill for the legal services they provide. Improper invoicing can have many negative consequences, including unbilled tasks, sporadic billing, and unpaid invoices.
Law firms can choose an independent legal billing system to handle invoicing tasks, but the most streamlined option incorporates legal billing into a legal practice management system. With these platforms, firms benefit from advantages such as simplified approval processes, tracked invoice changes, and the ability to process numerous types of fee arrangements.
Some legal practice management systems include extensive data reporting capabilities so firm leaders can quickly access financial reports with just a few clicks of the mouse.
Once the invoices have been sent out, law firms need processes in place to actually receive payments and manage collections. After all, there is nothing to manage if revenue is not going into the firm! While most firms still accept cash and checks as payment from clients, electronic payment methods have become more common within the legal environment. This requires having a system in place to accept these payments, and the choice of provider could mean the difference between accounting success and failure.
Law firms should utilize a payment processor that recognizes the specific rules that attorneys are obligated to follow. Standard payment processors typically maintain a percentage of each transaction as their fee. When these fees are deducted, it can potentially break state trust accounting rules.
Lawyer-friendly payment services provide law firms with the option of paying processing fees directly from the firm’s operating account instead of the trust account, which significantly lessens the possibility of non-compliance with IOLTA accounting rules.
Mastering law firm accounting is no easy feat. However, if you keep the above components in mind and put them into practice, in addition to following the tips below, you’ll be well on your way to navigating your firm’s finances successfully and without penalty.
The landscape of law firm recruitment is changing dramatically. Whether seeking to attract new attorneys out of law school, entice lateral hires, or retain current members, law firms are taking unprecedented steps away from tradition in hopes of engaging and keeping top legal talent.
Over the past year, many law firms have sought to entice new firm employees with signing bonuses, but these financial incentives proved to be only one piece of evaluation criteria for candidates.
When considering a move to a new firm or the merits of staying put, candidates are basing their decisions on much more than the firm paying the biggest bonus.
Conventional considerations like compensation, promotion potential, and bonuses remain part of the equation, along with some new metrics of comparison:
The social and financial challenges brought on by the pandemic created an environment where candidates are increasingly evaluating potential employers based on their reputations. They classify socially responsible firms as those that took steps to protect their employees during shutdowns. They may have cut partner compensation to maintain associate salaries or provided vast support for remote work.
Candidates view these actions as real-world examples of a law firm’s values and they factor them in when making employment decisions. They want more than a large paycheck. They want to work for law firms that align with their own values and beliefs.
Law firm candidates have also become more cognizant of the culture that a firm offers. With the added stress of the last couple of years, candidates want an environment that makes them feel valued for more than their billable hours. They seek opportunities with firms that promote a healthy work-life balance and prioritize the mental health of firm members.
Today’s candidates do their homework, researching “Best Places to Work” lists and searching social media for insight into a firm’s culture. Working within a positive environment has become top-of-mind among law firm prospects. They have a new appreciation for the things they find most important and they are willing to hold out until they find them.
It took a global pandemic, but the legal industry has finally accepted the value of remote working arrangements, and even with the return of some sense of normalcy, many candidates are simply unwilling to return to a traditional office setting with traditional office hours.
According to an American Bar Association (ABA) survey, the vast majority of attorneys report feeling this way, with no desire for pre-pandemic office arrangements.
Of those lawyers surveyed, 36% stated their preference for the ability to set their in-office schedule from week to week. With this greater demand for remote work, candidates prefer law firms equipped with the technology to offer these options.
Law firm leaders and administrators are taking note of these candidate expectations and are making adjustments to their recruitment and retention efforts. A look at trends in the general legal landscape reveals increased usage of the following strategies:
Even the most traditional of law firms have recognized how critical flexibility has become in attracting quality candidates. That does not mean that 100% remote options need to be made available for every candidate. Instead, firms can craft various hybrid options to meet this need, which might look like two days of remote work and three days in the office each week. It may also mean that some attorneys work mornings in the office and remotely every afternoon.
The traditional 9-to-5 has quickly become an unpopular option. Legal professionals have gotten accustomed to spending more time with their families and having more control over their work-life balance. By offering at least some level of flexibility, law firms better leverage initiatives to recruit and retain talent.
Flexibility offers an additional value. Remote working arrangements can substantially widen the candidate net for new hires. Geographic limitations are lessened so that firms can seek talent from broader markets with lower salary averages.
Corporations are not the only entities ramping up diversity efforts. Law firm leaders are also recognizing the value of these initiatives. Internally, it creates a more enjoyable workplace where attorneys from various races, genders, abilities, and sexual orientations feel valued. Externally, a significant percentage of candidates consider the diversity of a firm when making employment decisions.
The customary practice of solely recruiting from top law schools ignores a vast market for incredible and diverse talent. Along those same lines, it may not benefit firms to only seek lateral hires from the biggest law firms. Substantial talent can be found at legal practices of all sizes and law firms are beginning to recognize that fact.
Law firms use Ideal Candidate Profiles (ICPs) to identify qualities, characteristics, and achievements they desire in a potential hire. These tools have been used for years, but recent changes within the legal recruitment realm have brought about a need for adjustments.
Law firm recruiters are taking a serious look at their current ICPs and making changes to meet this new normal. Consider criteria such as technical skills or a proven track record of success working virtually.
Stress, overwork, and burnout have long been associated with the legal community. While some industry conversations have taken place over the years about the dangers of these working habits, discussions about employee mental health really began to take center stage during the early days of the pandemic.
In response, many law firms have implemented programs aimed at preventing burnout and promoting mental wellness. Tools like regular check-ins, free access to mental health resources, and greater flexibility are being used to demonstrate a commitment to the emotional, wellness, and development needs of firm personnel. Recruiters should highlight these initiatives to attract potential candidates, and firms can leverage them to keep their top talent happy within the firm.
In order to remain competitive in today’s legal recruiting environment, firms need to step outside of the traditional sign-on bonus and instead look at other benefits of interest.
By offering flexible work arrangements, improving diversity initiatives, reevaluating ICPs, and prioritizing mental health, you put your organization in the best possible position to attract and retain top talent.
Centerbase, a legal practice management software company that provides mid-sized law firms with a cloud-based platform to streamline operations, is pleased to welcome Bob Freeburg as Chief Technology Officer.
The hire follows Centerbase’s recent growth equity investment from Mainsail Partners and underpins the company’s commitment to aggressive growth and strategic expansion. Following a banner year in 2020 and ongoing momentum year-to-date, Centerbase has continued to invest heavily in its core product and its people while exploring feature and practice area specific integrations.
Those investments and enhancements are what attracted Freeburg to Centerbase. “It’s an exciting time to be joining the legal technology industry,” says Bob. “I look forward to learning more about the customers that trust Centerbase to run their firms, learn from them how we can do better, and continue moving the current Centerbase product features to the next level to serve our clients more efficiently.”
A performance-driven leader with over 25 years of innovative technology experience, Freeburg comes to Centerbase from Curantis Solutions, where he started as Chief Technology Officer in March 2017 before being promoted to Chief Operating Officer/EVP of Technology earlier this year.
At Curantis, a cloud-based hospice and palliative care management platform, Freeburg was responsible for technology, product delivery, operations, and account management functions. Bob was involved with filing four patent applications for newly developed technology. In the role, he implemented key processes gaining significant experience working with sensitive information in a cloud environment.
Similar to the legal industry Bob will be serving at Centerbase, he worked with clients at Curantis to deliver a modern cloud platform solution. “Although this can be challenging, (it) presents an opportunity to help clients achieve operational efficiency when this transformation is done right,” says Bob.
Prior to Curantis, Freeburg spent the majority of his career at Parago, a rewards-based incentives company. He served as a key member of Parago’s (Blackhawk Engagement Solutions) executive leadership team and was instrumental in growing the business from a startup to acquisition by Blackhawk Network in October 2014.
As Chief Operating Officer and Group Vice President for Technology at Blackhawk Engagement Solutions, Bob managed a technology and operational scope encompassing four incentive companies acquired by Blackhawk Network.
Parago was included on the Dallas Business Journal’s “Best Places to Work” list in 2009, in addition to the “Fastest Growing Businesses” list in 2010.
In 2010, Bob was also named a CIO 100 award winner for his achievements in delivering innovative technology solutions while improving client satisfaction.
Freeburg graduated from Baylor University with a B.A. in Computer Science, working in consulting and technology delivery roles at Arthur Andersen LLP, Excel Communications Inc., and Teleglobe Communications prior to joining Parago’s executive leadership team in 2000.
It has been a challenging couple of years for the legal industry, requiring law firms to make unprecedented administrative shifts.
For many firms, business interruptions resulted in financial challenges that left leaders hesitant to invest in additional technologies. Far too many uncertainties remain and leaders recognize a need to be cautious with spending decisions.
Even with this reluctance, you can leverage legal technologies to your advantage by taking a critical look at your current usage and assessing what will be needed in the foreseeable future.
Every firm, regardless of size, can maximize its current technologies, but it takes strategy and analysis to make that happen. With evaluation, training, identification, and planning, you can get the most out of your current systems.
The first step for maximizing your current law firm technology is an evaluation of existing systems and how they are benefitting your firm.
Many firms implement technologies with a “set-it-and-forget-it” mentality without an ongoing evaluation of utilization, but important questions need to be asked on a regular basis, such as:
Technologies like legal practice management and legal billing software offer users a variety of features related to various aspects of law firm management. They also routinely introduce new features as innovations develop. One legal practice management software may include more than 20 features relating to everything from timekeeping to document management. With so many options, it's quite possible that many law firms only use a portion of what these platforms have to offer.
You should review each of your current technologies and their individual features. That information should then be compared with your firm’s needs to ensure that each technology is being utilized to its fullest potential. Upon doing so, administrators may ultimately find no use for additional technologies.
Another boundary to maximizing current legal technologies is a lack of usage among law firm personnel. There can be any number of reasons behind these discrepancies, including a lack of proper training, discomfort with new technologies, or an unwillingness to change traditional processes. Whatever the cause, firms can maximize current technologies by identifying usage obstacles and addressing them.
A technology analysis may reveal that some platforms are no longer vital to a law firm’s success. For instance, a recently implemented software may offer a feature that law firms once relied upon another platform to provide, making the older software no longer necessary.
Analysis may also reveal that a firm is still paying for technology acquired years ago even though it is no longer being utilized by firm members. This may occur because payments are automated or the firm administrator may routinely approve payment with no knowledge that staff members have stopped using the system.
Under both of these circumstances, firms may be able to find substantial financial savings by leveraging the most useful software and ending subscriptions for unnecessary platforms.
Inadequate training creates another impediment to maximizing legal technologies. Employees cannot effectively use technologies if they do not understand how to navigate them. Law firms need systems to evaluate the employee skill base for each of its technologies. When deficiencies are identified, a training strategy should be implemented that addresses the need in a way that empowers employees to leverage technologies.
One of the first determinations that a firm administrator should make is from what source the training will commence. That includes who will conduct the training, the time commitment, and how much money will be allocated. The most cost-effective and timely resources for employee training are often found with the technology provider, where employee training programs may be included within the subscription packages. This is a useful resource for training staff members on a specific technology platform.
Training takes time and, especially in a law firm setting, time is a precious commodity. Administrators need to determine how much time will be set aside for necessary training, as well as how it will be managed among employees. Firms must be cognizant of their members’ already-full plates and develop a training schedule that does not overwhelm employees. Details such as training techniques and rollout methods should also be considered under the training umbrella.
The final consideration for the training piece is the cost of the training. Firms must recognize this expenditure as a necessary expense for maximizing current technologies. It is an investment in the firm’s growth that pays off with greater efficiency and increased productivity.
Part of assessing current technologies is identifying trouble spots that may be getting in the way of full maximization. The problem may lie in employee training, but the following impediments may also be at play:
Firm administrators should acknowledge these concerns and find ways to address them. Messaging is key when dealing with this type of pushback. Leaders need to understand the benefits of legal technology and how it can better position the firm for financial success.
After completing a detailed assessment of current technologies, you will have a more accurate view of your firm’s needs moving forward. You may determine that weaknesses identified during the analysis are best handled through new technologies, or law firm forecasting may demonstrate a future need that will require a different tech specialty.
Armed with the information gathered from evaluation, training, and identification, you can thoughtfully plan and make decisions about moving forward while also maximizing the firm’s current technical resources.
As some semblance of normalcy returns to a legal industry forever changed, many law firm leaders are making long-term plans for their physical office spaces. In addition to traditional considerations about cost and location, safety considerations and potential business disruptions have been added to their long list of concerns.
At the height of pandemic shutdowns, virtual work became a widespread necessity, leaving thousands of expensive law offices empty. Many firm leaders began to question the value and role of the physical office space, choosing to either move to a 100% virtual business model, downsize considerably, or reconfigure the utilization of their spaces.
Law firms nationwide are redefining the traditional law office and here are some trends evolving out of these changes:
In a virtual law firm setting, attorneys and staff perform all client and administrative services within a cloud-computing virtual environment. Tech tools, such as legal practice management software and conferencing platforms, allow firms to operate from any location without the need for a physical office.
While the virtual office has been a reality for many solo attorneys for more than a decade, more small and medium-sized firms are now moving in this direction for a variety of reasons:
Even with so many benefits, virtual office arrangements raise serious concerns about ethical compliance, client confidentiality, and the supervision of law firm staff members. In making this change, law firms must maximize their use of technology to effectively meet these demands.
The explosive growth of virtual work arrangements has sparked conversations about the necessity of physical office spaces. Within an industry where large office buildings and prestigious addresses equate to status, law firm leaders began questioning whether a reduction in their real estate footprint could offset financial challenges brought on by the pandemic.
Even some of the nation’s largest law firms have considerably downsized their office space, doing away with expansive libraries, large corner offices, and expensive downtown views. These previous law firm norms are being replaced with standard-sized offices for all firm members regardless of seniority and the reduction of common spaces. Trendy collaboration areas and floating workspaces that entered the law firm environment in recent decades are becoming a thing of the past.
Hoteling is another office space management option garnering attention among law firms. Under these arrangements, instead of having assigned offices and workspaces, firm members schedule their use of shared workspaces such as desks, cubicles, and offices ahead of time. This technique essentially takes the finer points of residential hotels and applies them to an office setting for the benefits of a flexible workplace.
Some of the advantages associated with hoteling include:
While these tactics may result in some level of financial savings, serious questions have been raised about the long-term effects of downsizing efforts on the culture and cohesion of a legal practice. Particularly within a large firm, collaboration plays a major role in meeting client expectations, so firm administrators must weigh the potential loss of camaraderie that may result from these office decisions.
Flexibility has evolved from being an added bonus to an absolute necessity. As law firms redefine the physical law office, they do so with an eye towards the future and the potential for another business interruption in the months or years ahead. The pandemic has made it painfully clear that law firms need systems that allow for quick pivoting to meet unexpected circumstances.
Firms are accomplishing this goal in a number of ways, each requiring its own level of elasticity. A one-size-fits-all model does not exist because every firm has its own dynamics. Employee satisfaction, specific practice area needs, client expectations, technology, and policies all play a role in how firm leaders and administrators incorporate flexibility into their office planning.
Risk assessment is a standard aspect of practicing law, but that term has taken on a whole new meaning as a vital component of office decision-making. Leaders must assess potential hazards within the office and implement strategies to address them. That includes adding safety measures, such as more frequent cleanings and space dividers, to the office environment.
This also means evaluating the needs of individual firm members, especially those who are more vulnerable to illness due to age or underlying conditions. Within a flexible work environment, firms may allow these members to continue virtual work or implement other social distancing policies within the physical office.
Flexibility at your law firm should also include the ability to quickly pivot in the event of another shutdown or some other interrupting occurrence. This includes ensuring that the right technology is in place to support virtual law firm operations and that your employees are adequately trained in what steps to take should another interruption occur.
Law office flexibility will require some experimentation as leaders struggle to adapt to evolving needs. Data analysis regarding space usage and employee feedback should be an ongoing part of the process.
Now, more than ever, it is important to be adaptable in all aspects of your business, including financially and operationally. The right legal technology tools can support virtual and hybrid work while ensuring both productivity and client confidentiality.
A successful attorney-client relationship begins with the client intake process. Not only does it formally introduce the client to the firm’s procedures and requirements, but it also helps firms identify potential issues that could cause delays during representation.
A lot of firms operate with unsystematic onboarding procedures that vary from one client to the next, and these bad habits can thwart successful client relationships.
Improving the client onboarding process requires both efficiency and simplicity.
With the right tools and the following tips, law firms can create a client onboarding experience that is quicker and hassle-free.
With a pre-screening process, law firms evaluate potential matters to identify any issues before the onboarding process even begins, saving valuable time and resources.
This can be accomplished in a number of ways, including:
Organization is key to simplifying the onboarding process, so you need a standardized system that repeats the same general procedures for each client’s onboarding experience.
This may involve such tools as:
While some clients may prefer to meet in person, others do not have the time or ability to come into the office for an intake meeting. Remote onboarding capabilities provide clients with the convenience and accessibility that they appreciate, demonstrating a commitment to client service and respect for your clients’ time.
You benefit from remote onboarding capabilities by starting the client relationship on a positive and efficient note. For example, when coming into the office for an intake meeting, a client may forget to bring important information that is needed for their case. However, when meeting remotely, they can participate from a location where they have access to all relevant documents and records, effectively avoiding potential delays in the initiation of representation.
No attorney wants to start their representation of a client by missing the first court appearance, but that is exactly what can happen as a result of inadequacies in the client intake process.
That is why calendaring should be a regular part of your onboarding process. When clients come in with court dates or deadlines already in place, those should be immediately added to the firm calendar to ensure that they are not missed while all onboarding forms are reviewed.
Law firms need a practice management system that allows them to store all onboarding and client information in a centralized location that helps keep track of both new and existing clients.
These platforms help ensure that nothing falls through the cracks between onboarding and initiation of work. Consider the following:
Efficient client intake begins and ends with the systems and tools that law firms implement. The right legal practice management software can prove instrumental to handling this important start to legal representation, thereby enhancing clients’ experience at your firm.
Attracting new clients is critical to maintaining a successful law firm, but there must also be a coordinated effort to maximize the client service experience once representation begins. Yesterday’s level of customer service is no longer enough to meet the expectations of today’s legal clients. They expect innovation, convenience, and consistent communication.
With a client-centered strategy, you can work to deliver the level of value and quality that meets client needs. This starts from the initial consultation and continues even after representation ends.
Let’s discuss some strategies that law firms can implement to create a client-focused environment where all clients feel valued.
As the first substantive communication between firm and client, the intake process is a perfect opportunity to solidify a client-centered approach to legal services. This begins with gaining a clear understanding of the client’s needs and expectations, which can be done by asking the following questions:
The answers to these questions reveal a lot about a client’s journey, while also providing insight into enriching their experience. Once this information is gathered, firms are able to assist clients with managing their expectations.
Intake is the perfect time to establish clear guidelines for client communication, including acceptable methods and what frequency of communications clients should expect. Some law firms choose to provide this information as part of a welcome packet that includes communication guidelines, firm information, and data specific to their legal matter.
The intake process should also establish the firm’s commitment to the truth. Clients need and deserve honest assessments about their legal matters, even if it is not what they want to hear.
Transparency builds trust and strengthens the client relationship, which is essential in a client-centered practice. By establishing clear and reasonable expectations from the start of representation, law firms lay the foundation for a successful client relationship.
Another strategy for improving the client intake process is to eliminate tedious repetition and inefficiencies. Legal practice management software helps with streamlining procedures such as client intake and CRM automation. With a faster intake process, casework can start as soon as possible.
Law firms should also insert calendaring into the intake process by immediately adding all pending court dates or events to the schedule. This prevents missed deadlines or appearances, which is a major impediment to a client-centered approach.
Client service should also be evident in a firm’s rate and fee setting, which does not necessarily mean offering the lowest prices in the industry.
Yes, being competitive with other law practices is important, but you also need to be careful about undervaluing your services. Potential clients want top-notch skills and expertise when seeking legal counsel, and many are willing to pay more for those services. So, law firms need to set prices that are fair and in line with the level of service that their clients receive.
Payment options are also an important aspect of pricing. Alternative fee structures, like flat fees and unbundled legal services, have become increasingly popular within the legal industry over the past decade. Clients prefer these options because they allow for a more transparent fee agreement sans unexpected fees and costs.
Firms should also consider the client experience when determining what types of payment methods to accept. Today’s clients want the ability to pay their legal fees electronically with credit cards and/or ACH transfers. They appreciate the ease and convenience of these payment options, along with the extra layer of security that they offer.
Communication is key in a client-centered law practice. The busy nature of a law firm atmosphere can negatively impact client communications when calls and messages go unanswered, so law firms need a system for ensuring timely responses to client inquiries. Even without an immediate solution, a quick response can calm concerns and strengthen the client relationship.
In establishing a communication plan, law firms should consider the following:
Legal matters can be mentally and emotionally draining for clients. By committing to regular communications and outreach, a law firm can provide much-needed support while strengthening the client relationship.
Adequate communication also extends to written communications. To make sure that clients get the most out of all correspondence they receive, law firms should avoid unnecessary legal jargon and use plain, easy-to-understand language instead. You can also improve the readability of their writings by using shorter sentences and avoiding lengthy paragraphs. Consider using techniques such as headings, subheadings, and bulleted lists.
The client-centered approach does not end after representation. To be truly dedicated to a high-quality experience, law firms need to honestly assess their performance and make improvements where appropriate. Feedback is a great way to accomplish this task, and the following are some ways that you can secure it:
Once the feedback is collected, law firms should take steps to act on it. If clients were not happy with some aspect of their representation, firms should implement strategies to address change.
Information gathered from positive responses is useful to reinforce the procedures that make clients feel valued.
Client satisfaction should be an ongoing goal for law firms as they craft a client-centered experience. This starts with asking what clients need and ends with an honest evaluation of whether or not those needs are being met.
By implementing these strategies, law firms add a considerable amount of value to their client service, resulting in happy customers and repeat business. Happy clients also mean potential referral sources for a law firm, helping you grow your business and bring in more revenue.
Every month, firm administrators, attorneys, and billing professionals sit down to handle one of the most dreaded law firm responsibilities: legal billing. It’s not that they don’t appreciate the value of invoicing; they just hate how tedious it is!
From managing the entire process to tracking down time records from timekeepers, legal billing tasks can hamper a law firm’s potential for billable hours and profitability if not handled in an efficient manner.
The following are some tips for bringing a law firm closer to a more structured and simplified legal billing process:
To streamline their legal billing procedures, law firms should start with a simplified time tracking process. The entire billing process begins with documenting tasks completed for clients. When these records are inaccurate or inadequate, it makes invoicing more difficult to complete. Firm staff members must then spend time chasing time tracking records, throwing off the entire process.
A structured billing process starts the moment a timekeeper completes a billable task. A comprehensive legal time tracking system makes this happen in a variety of ways. This allows timekeepers to track time at any point using whatever method they prefer. For example, when working in the office, an attorney may want to record time as they save documents in Word or send emails in Outlook. With a complete time tracking platform, time can be entered within applications your firm is already using - like Word and Outlook.
Mobile application time tracking helps enter time with speed and accuracy. With this tool, timekeepers can conveniently log time on a mobile phone or other portable devices when completing tasks away from the office. This type of legal billing tool has become invaluable in an environment where attorneys are increasingly working remotely.
To simplify the billing process, firms should move their invoicing procedures to a paperless process. Electronic billing (e-billing) software is the most effective way of simplifying the billing process, making creating, presenting, and collecting client invoices more efficient. Not only do these options financially benefit your firm, but they also improve client relations by minimizing errors and inconsistencies.
For a legal practice, the time between the completion of a task and the collection of a client payment is crucial. Payment time directly affects a law firm’s cash flow, which is necessary for handling office overhead costs. Inadequate cash flow is a common problem for law firms, so it is important to track this metric and work to shorten the time frame.
Firms need simplified billing systems in place that help transform payment times from months into weeks. E-billing is an effective tool for getting this done. It helps address bottlenecks that slow down the process by offering the following features:
Clients are more inclined to make quicker payments when provided with more channels to do so. The majority of modern households utilize online payment methods to conduct business. Consumers want and expect convenience when choosing where to spend their dollars, and that extends to legal services. By offering a variety of convenient payment methods, law firms incentivize their clients to pay invoices in a more timely and complete manner.
Historically, attorneys have been hesitant about the acceptance of credit card payments. They view paper checks and cash as adequate payment methods for services rendered simply because those methods have always been utilized. But this “good enough” mentality can work against law firms by making the payment process more challenging to navigate for clients.
Implementing a credit card payment processing system is critical to simplify legal billing and here are a couple of reasons why:
To maximize the acceptance of credit card payments, law firms also need to offer an integrated option for clients to make payments right from their computer or smartphone. Clients appreciate convenience and ease, so firms need tools like client portals that facilitate these quick payments.
Law firms can simplify their legal billing process, and even expand their client base, by implementing the acceptance of credit card payments. But remember, credit card payments are just a portion of this simplification. E-billing and simple time tracking combined with multiple payment options are sure to make your billing easier for internal and external clients alike.
