Andrew McDermott

The 4 Best Communication Tools for Lawyers and Their Clients

May 2, 2018 By Andrew McDermott 1 Comment

What’s the #1 bar complaint clients are most likely to file against you?

Poor client communication.

Do lawyers have a reputation for poor communication? All across the country clients file complaints against their attorneys citing neglect and poor communication. There’s some truth to that though right?

Research shows it’s very common for lawyers struggle with communication.

Here’s the problem with all of that.

Clients can be demanding and entitled

They expect you to keep them in the loop, to communicate with them regularly. Yet, these same clients are easily frustrated when they’re asked to pay for more of your time.

That’s just the start of your headaches.

Your clients subconsciously expect you to treat their case with the utmost priority, as if their case was your only case. When they call, expecting an update on their case, project or problem – they expect you to take their calls.

But sometimes you can’t.

Sometimes the person on the phone – parents, aunts, employers, ex-wives – isn’t your client. You can’t tell these people anything because you don’t work for them.
Your clients waste the precious time you need to solve their problem.
Nothing new has happened. Many clients believe there’s always something going on with their case. It’s often difficult for them to wrap their heads around the fact that you’re waiting for communication from a 3rd party.
You’re unavailable. It’s the weekend, night time or you’re just busy. There’s a good chance this client’s business isn’t enough to sustain you or your firm on its own.

This isn’t the real problem though. There’s a deeper problem at play here. It’s a fear that’s fuzzy and unclear, lurking in the shadows of your client’s mind.

Uncertainty.

As an attorney, you’re often the unpleasant expense your client wants to avoid. But you’re also their savior, the only one that can make their fear, pain and frustrations go away. Uncertainty makes their problems worse.

Not in reality of course.

Still, research shows people in general and clients in particular, find uncertainty to be incredibly unpleasant.

This is it.

The hidden problem you’re fighting in your practice. It’s not unreasonable or demanding clients so much as it’s uncertainty. Your client’s expectation is twofold.

“Solve my problem. Win my case, protect me from danger, defend my interests.”
“Help me manage uncertainty. Relieve my stress and anxiety. Tell me what’s happening.”

Problem solving – pretty straightforward, right?

What about uncertainty?

Managing uncertainty isn’t as complex as it sounds. Believe it or not, it’s actually fairly simple.

Ask clients about their communication style – the who, what, where, when and how. Then, determine what you’re willing to give. Set clear limits upfront. Finally, communicate with clients.

Communication is too difficult, too complex

Your clients are conditioned.

Google, Netflix and Amazon have conditioned clients to expect instant gratification. Clients these days are used to getting the information they want when they want it.

Your clients are no different.

They’re looking for information, they want to know what’s happening with their case or project. Which is reasonable.

Most lawyers do it the hard way

They arrange in-person meetings that are difficult to arrange and incredibly time consuming. They’re bombarded by client emails that are loaded with a combination of useful and useless data. Data they’re now forced to sift through.

Can communication tools solve this problem?

Absolutely.

In-person communication isn’t easy.

With the right communication tools, you gain flexibility. With the right tools, clients have the access they need to deal with uncertainty.

Communication, with the right tools, is easy

With modern communication tools your firm should be able to (a.) send bite-sized messages on specific topics to clients (b.) focus communication on the specifics that, at any given time, matter most (c.) reduce the technological burden on clients and staff and most importantly (d.) give clients the ability to speak their mind freely while limiting the requirements or burden on you.

Are there any tools that meet these requirements?

Absolutely, let’s take a look.

#1: Client portals

It’s easy for clients to see what their doctor does for them. Examinations, x-rays, prescribing medicine – it’s all visual. It’s different for lawyers – clients aren’t entirely sure what you’re doing on their behalf. Client portals come with an unexpected opportunity.

The chance to flood your clients with helpful data.

This isn’t a pointless data dump or useless information that’s shared for the sake of sharing. It’s relevant, actionable and informative. It provides your clients with 24/7 access to important data. Documents, forms, filings, reports – anything that moves your client closer towards their goal.

Why it works:

Providing your clients with a steady stream of data relieves their uncertainty. When you upload content to your client portal, clients receive a visual reminder that (a.) you’re working on their case or project (b.) you’ve shared evidence with them directly and (c.) there’s material for you to discuss at your next meeting.

It gives your meetings structure and focus.

Document management and client portals reduce rambling and confusion in your meetings.

#2: UberConference

Every day, 75 percent of the Fortune 500 rely on conference calls.

Conference calls aren’t always convenient.

They’re not always as straightforward as they should be either. UberConference is a free/paid option that allows you to contact clients automatically and at your convenience. Schedule a call, add participant’s phone numbers to the list and UberConference will automatically call everyone when it’s time.

Clients aren’t required to remember pins, it’s available via mobile and desktop apps and can handle web conferences. The calls are free, recording is included and it’s always available.

Why it works:

It’s a simple, quick and easy way to bring clients, attorneys and support teams together. It’s inexpensive and thanks to UberConference, it’s free.

This gives your clients structure.

Scheduling meetings / calls means you have the tools you need to train your clients. There’s no reason you have to deal with random or unexpected client phone calls. Use your client portal to share access to important data, then just schedule a client meeting ahead of time.

It’s simple and clear.

#3: Legaler

Apple’s Facetime, Microsoft Skype and Google Hangouts have been touted as helpful tools for lawyers to use in their practice. Here’s the problem: Facetime and Hangouts stores your content on their servers indefinitely. Skype stores content from calls with more than two participants.

Your conversations aren’t necessarily private.

They’re easily accessible via legal (subpoenas) and illegal (hacks, phishing) methods which means this is a huge liability waiting to happen. There’s also a few significant downsides. These options don’t record meetings, chats and files. They also don’t integrate with the tools and resources your firm is already using.

Enter Legaler.

Legaler is free video conferencing software that offers:

In-browser, video face-to-face meetings with multiple participants (and no software, plug-ins or downloads to install)
Screen sharing and one-click collaboration
Cloud based video storage with end-to-end encryption
Integration with 3rd party legal software from a variety of SaaS providers
Private, shareable content (e.g. agendas, meeting notes, documents, etc.)

Why it works:

Browser based software makes it easy for clients to use. There’s nothing to install, no apps to track, no complicated instructions to cover.

This is a bonus.

Clients already know how to use their browser. Associates and paralegals aren’t required to install anything new. There’s little to no transitional pain involved and customers are focused on what matters most. Legaler provides flexibility.

Attorneys are able to meet with clients for a quick two to three minute call – unheard of with in-person meetings. If they need to schedule an in-depth call, Legaler does that too.

#4: Signal Messenger

When it comes to secure or private messages Slack is an option that’s presented regularly. It’s easy-to-use, has widespread adoption and a large user base. It’s the client communication tool of choice for many law firms…

And a disaster waiting to happen.

Why?

Encryption is on and controlled by Slack. Slack owns and reads your conversations. What does this mean? Your conversations on Slack can be subpoenaed. Not so great for attorney-client privilege.

Signal Messenger works with, not against you.

Open Whisper Systems, the organization behind Signal Messenger, created a tool that enables you to send high quality text, voice, video, document and picture messages anywhere in the world, without SMS or MMS fees.

It’s end-to-end encrypted, free and peer reviewed.

Why it works:

With Signal, you’re able to send clients encrypted, bite-sized communication morsels. Data that’s easy-to- share, easy to generate and requires very little time.

It’s available on Android, iPhone and desktop. Platforms your clients are already using. A simple install link is all it takes for clients to get started.

Communication is easy because…

Every client is your number one priority

At least from their point of view.

Your clients subconsciously expect you to treat their case with the utmost priority, as if their case was your only one. They call, looking for an update on their case or project – they expect you to take their calls, but sometimes you can’t.

Communication can be easy.

You’re the only one that can save your client from the specific fear, stress and pain they’re going through. As it turns out, you have two jobs – solving their legal problem and relieving their uncertainty.

Communication, at its core, is about relieving uncertainty.

Most lawyers have a reputation for poor communication. All across the country clients file complaints against their attorneys citing neglect and poor communication.

This doesn’t have to be your story.

You can relieve the pain and anxiety your clients feel today. With the right approach and the best communication tools available, you’ll find you can communicate with clients on your terms, no bar complaints needed.

Best Practices For Implementing a New Software Solution For Your Firm

April 25, 2018 By Andrew McDermott 1 Comment

You’ve done it.

You’ve purchased a brand new piece of software. The software solution to your recurring accounting problem. You’ve watched the webinars and product demos. You know what this piece of legal software can do for your firm.

So, why aren’t you using it?

It wasn’t cheap. You spent a considerable amount of money on this product or service but it’s not really being used.

Sound familiar?

You may not want to learn how to use the product you paid for

That’s right.

You may not be interested in using the product you’ve just spent a significant amount of money on. Yes, the very same product you know will solve your accounting problem.

That sounds insane.

What’s worse, your employees may have even less of an interest in learning how to use the expensive new software solution you’ve just purchased.

It’s not as crazy as it sounds.

What’s more surprising about this situation is this. It’s not your fault.

Maybe you feel guilty or ashamed? Maybe you’re down on yourself a bit that you (or your staff) aren’t taking full advantage of the tools and resources you have available to you.

Does this sound like you?

If it does, there’s actually a better option. You start by changing the mental model you’re using.

Best practices fail when you’re missing the right behavior model

Okay, first things first. What do I mean by “behavior model?”

It’s behavior prediction and forecasting.

A behavioral model is a collection of data you use to make predictions about future behavior. I’m oversimplifying things here intentionally. I don’t want us to get bogged down or lose focus.

BJ Fogg, researcher at the Stanford Persuasive Technology Lab, created the Fogg Behavioral Model (FBM). The FBM was designed to answer a simple question.

“What causes behavior change?”

The FBM shows there are three elements to behavior change.

Motivation. A compelling reason for people to change their behavior.
Ability. The capability to change behavior in a desired fashion.
Triggers. A prompt or call-to-action that tells people to “do it now!”

Top10 mistakesbehaviorchange bj-fogg8updatezc from BJ Fogg

What does this behavioral model have to do with implementing a new tool at your firm?

It’s all about conditioning.

Want your staff to use the software solution you’ve purchased? Looking to successfully implement a new software or digital tool at your firm?

You need these three elements.

This is ridiculous.

And also a little ironic. It seems like overkill, doesn’t it? All this hard work just to entice your staff (or yourself) to use a software solution you’ve already paid for.

Here’s the thing.

Research shows 40 to 60 percent of users who sign up for a free trial or purchase software use it once, then never again. Like I said, if you’ve purchased software at some point for your firm, you need these elements.

These elements work whether we want them to or not

These details are dependent on specific sub-categories. It’s all about creating the right environment for your staff. The wonderful thing about this model is that it’s designed around human behavior.

Create the right formula and success is far more likely.

Let’s take a look at these sub-categories and break them down in detail.

Element #1: Motivation

When it comes to human behavior, there are three basic motivators. These core motivators apply to everyone but they’re expressed in a variety of different ways.

Sensation governs pain and pleasure. These can be both subjective and objective.
Anticipation regulates hope and fear. This includes subsets like expectation and frustration.
Belonging regulates social rejection and social acceptance.

FBM shows that when motivation is high, it’s temporarily easier to get people to do difficult and complex things. Conversely, when motivation is low, people are temporarily unable to do hard things.

This is tricky.

It means intangible factors like trust, respect, creativity, psychological safety – factors impacting morale, they all matter more than we realize.

Here’s the problem.

You can’t run a business based on the whims of staff motivation. What’s worse, it’s difficult (and impractical) to gauge the motivation levels of your firm throughout the day. That’s no way to run a business.

So you assume motivation is always low.

You rely on sensation, anticipation and belonging as psychological tools (not tricks!) to earn cooperation. How do you increase motivation organically?

Gamify the onboarding process with a specific, simple, high value task (e.g. associates with the highest # of billable hours wins X)
Offer incentives to teams or departments. Reward those with both the greatest amount of input and the most accurate result
Create a performance leader board ranking top and under performers. Use actionable metrics to measure performance objectively (e.g. these are the top five and bottom five associates, by Y metric)

See the difference?

Pumping up motivation artificially isn’t effective. Working around the motivation your team already has is simple and effective.

Element #2: Ability

Ability, as a whole, relies on simplicity. If it’s simple and easy-to-do, it’s more likely to be done, even when motivation is low. Simplicity factors rely on a simple concept. Removing barriers.

Simplicity factors

Time. “It takes too long” or “That was faster than I expected.”
Money. This has a negative financial impact on me/us vs. a positive financial impact on me/us.
Physical effort. “This is exhausting and hard” vs. “easy and enjoyable.”
Cognitive ease. Easy to think about, difficult to think about.
Social acceptance. This is socially unacceptable (stressful) vs. this is socially acceptable.
Regularity. “This isn’t something we normally do” (irregular) vs. “At 2PM I usually…” (regular).

Think of these simplicity factors as knobs on a radio. You’ll want to turn each of these up or down depending on the goals you have in mind. The easier it is for your team to manage each of these areas within your software solution, the more likely they are to use it consistently.

Which is key.

You want to implement a new software solution in your firm. How would you go about doing this?

Choose a simple goal. The more simple your goal, the greater your odds of success. The goal could be as simple as getting associates and paralegals to click an install link. Or opening the app at the start of a client meeting.
Ask support reps for help. Mention your goal to your support rep. Ask them for the simplest but most valuable step (one step) you can take to move your team towards your goal. Turn that habit into a company-wide Tiny Habit.
Using simple, easy-to-understand language that’s free from unnecessary jargon. If it’s easy-to-understand it’s easier to do. Compare the phrase “three blind mice, see how they run” to a “trio of sightless rodents, see how they perambulate.” See what I mean?
Minimize requests. If you want your team to install the mobile app, don’t muddy the waters by asking them to add three time entries, or upload 10 documents. Focus on one, simple request. Make it as simple and easy as possible.
Repeat steps 1 – 5.

Create Tiny Habits, take teeny tiny baby steps if you’d like create a long term habit. Large habits and big leaps? They almost always fail. Ask support reps to guide you in creating structured behaviors (e.g. At 11 and 3 PM I’ll open my time tracking app)

Simple and easy.

This doesn’t seem like it’ll work, does it? There’s another key factor at play here.

Trust.

Trust that your Tiny Habits and baby steps will grow naturally. Expect that your team’s feelings of success will grow with each tiny accomplishment. Believe it or not, the emotional response tends to be disproportionately high. Tiny accomplishments create a cascading flow of success. Success leads to more success.

On the other hand…

Asking your staff for too much too fast creates discouragement. Repeated failure creates more discouragement and despair, eventually leading to learned helplessness. This also has a cascading effect. Implementing a new piece of software successfully depends on simplicity.

Element #3: Triggers

Triggers = X. If X then Y.

Triggers set behavior in motion. They tell your staff to “do Y now.” A trigger can be externally driven (client phone call), initiated by structured behaviors (meeting at 4 o’clock) or part of our routine. Triggers can be location specific and intentional.

They’re indispensable.

Without a trigger, the behavior you want (e.g. enter billable hours) won’t happen. Even if motivation and ability are both sky high.

Triggers have different names.

Requests
Offers
Cues
Call-to-action
Prompt

When it comes to changing behaviors (e.g. successfully implementing a billing solution for your firm) there are three types of triggers.

Spark: A trigger that’s paired with a motivator (like the ones we’ve discussed above) works best when motivation is low.
Facilitator: A trigger designed for people with high motivation but low ability. This trigger is a helpful way to learn how to use a new software feature. Acting on this trigger means a recurring task will be more difficult at first, then easier to accomplish again in the future.
Signal: This trigger is appropriate for staff members who have both high motivation and the ability. These triggers simply serve as reminders to take action. They’re simple, straightforward and clear.

Triggers make us more impulsive (in a good way).

How can triggers help you to implement a tool? That’s fairly straightforward as well. Simply start with Sparks.

Assume low engagement and disinterest.

Give your team (and yourself) the motivators (e.g. sensation, anticipation and belonging) needed to take positive action. Then tie that motivator to a trigger or cue.

Here are a few examples.

Associates who enter billables after client meetings receive X
After each client interaction I need to do X to avoid Y
After client/court documents are received paralegals will do X

See the difference?

Triggers provide the momentum for action. Implementing the right solution for your firm is impossible if you’re missing the right triggers.

We don’t want to use what we’ve paid for

When we purchase a brand new piece of legal software we’re focused. We watch the webinars and demos. We do the work needed to properly research and vet our solution.

Then we abandon the products we purchase.

We don’t want to learn how to use the product we’ve just spent a significant amount of money on. Our employees are even less interested in learning how to use the software solution we’ve selected.

Now we know why.

We’re hardworking and disciplined. We bite off more than we can chew. We try to create large habits and big leaps. But we almost always fail. The answer is simple.

Start small to accomplish more.

Best practices fail when you’re missing the right behavioral model. Using what you’ve paid for, it isn’t about more, it’s about less. With the right behavioral model and a focus on keeping things simple, you’ll implement your software tools successfully.

How To Research and Vet Legal Software Solutions For Your Law Firm

April 18, 2018 By Andrew McDermott Leave a Comment

No one wants to do it.

It’s not like most firms enjoy evaluating and vetting legal software solutions for their firm. So it’s common for firms to simply ignore the problem.

Anything to minimize the amount of upfront work they do.

Maybe they do half the amount of research and vetting required to evaluate their legal software. Or none of it. It’s just software after all.

What could go wrong?

Legal software often comes with unexpected downsides

Purchasing the wrong software increases transitional pain and user onboarding. It also magnifies the potential downsides you experience at your firm. Here’s an example of legal software gone wrong.

This review speaks volumes doesn’t it?

It’s a devastating account from an active customer. This concise review tells us a lot about the downsides that come with poorly vetted software.

This software is incredibly difficult to use. Translation? Associates spend more of their time on non-billable work than they should.
This customer gave their software zero stars. He states: “this product has no redeeming features” stating the product is: unusable, the worst and doesn’t work.
Associates are forced to use unsecure web browsers, risking client confidentiality and increasing their firm’s risk of legal liability.
This reviewer’s word choice suggests that morale has declined at this firm
It’s an eBilling product that struggles to handle… billing.

This looks pretty bad doesn’t it?

This firm continues to use a system that (a.) costs more money and makes everyone miserable (b.) doesn’t perform as expected (or at all) and (c.) leaves the firm exposed to potential lawsuits.

This isn’t the worst part.

This law firm is still using this product! They’re trapped in an unpleasant situation with an eBilling product that takes money from their business.

How do you avoid making their mistake?

Choosing the right software solution begins with self evaluation

You’ll need to take stock of your current situation as a firm.

You should have a clear idea of (a.) who you are as a firm (b.) where you’d like to go as a firm and (c.) whether the software providers you’re considering are workable, a fit, or simply wrong for you. Think about approaching this from the standpoint of “what does the firm need?“

Here’s a few broad categories you can start with.

List habits (good and bad). Do you use hourly rates, value pricing or contingency billing? Does the legal software you’re considering do this natively or is this simply something they tacked on to their feature set? Do you have a specific set of policies and procedures you follow or does your firm follow a process that’s more fluid?
Outline goals and outcomes. It’s a common mistake for firms to look at features first. Begin your research by focusing first on the specific goals you have. Planning on adding remote staff in the future? Your needs are very different from the large firm with lots of in-house staff. What about solo firms looking to grow quickly vs. firms that are looking to stay small? You’ll need to outline the goals and outcomes you’re looking for first. Features should be dictated by goals.
Determine future needs. If you’re running an estate planning firm with lots of paperwork, you’ll need document management/backups in place to protect against fires or floods. What if you defend lots of high-risk, celebrity or controversial clients? You’ll need software with an emphasis on data encryption and communication privacy. Think about the needs you’ll have both now and in the future.
Assess risk and safety. What are the group policy and security requirements for your firm (e.g. 256K-bit SSL encryption and SSAE 16 Type II certification)? Do you need software solutions to accommodate specific requirements (e.g. user permissions/roles)?

Next you’ll want to use the MoSCoW method (e.g. Must have, Should have, Could have, and Won’t have) to identify your deal breakers and non-negotiables.

Take this legal software provider for example.

It takes 45 days to get up and running. They provide onboarding / training but a support manager is only available for the first 90 days. After that you’re on your own.

Is this a deal breaker for your firm?

A self-evaluation means you know whether their offer will work for your firm or not.

Look for…

Product wants. What are the specific product wants and needs of your firm? Are you looking for a SaaS, on-premise or hybrid software? Small, medium or enterprise class software?
Feature sets. What features or lack of features are acceptable versus deal breakers? Are these requirements static and unchanging or will they evolve as your research gains clarity?
Warranties and agreements. Will you need any assurances? Does your firm require an SLA? If you need one it’s probably a good idea to determine whether your providers are willing to provide that.
Budget requirements. Product features aren’t created equal. For example, document management at the SME level isn’t the same as it is at the enterprise level.

This is the upfront research that matters most.

The data you accumulate at this stage acts as a compass. The data you accumulate from your self-evaluation gives you the criteria you need to qualify and disqualify potentials.

Identified a list of potentials?

Excellent, you’re ready for the next phase in your due diligence.

Step #1: Search for credibility

Credibility is a gift, an important part of the sales process.

It’s an especially important component of an effective value proposition. Researchers at Stanford University’s Persuasive Tech Lab, identified four types of credibility you can (and should) use to vet legal software providers.

Reputed credibility

Positive feedback and recommendations from an objective, 3rd party source. Unbiased reviewers, ideally attorneys and firms who have worked with the companies/software solutions you’re considering. This could be a testimonial on your site, reviews on Trust Radius, Capterra or G2, or recommendations via Google search.

and

Software solutions with reputed credibility…

Rely on 3rd party reviews and testimonials
Have case studies and professional product reviews
Trust seals and badges from providers like G2, Capterra, BBB, etc.
Positive or negative press/media coverage
Client lists, connections to influencers and (to a lesser degree) awards

Use reputed credibility to flush out pain points, mistakes, objections and experiences.

Presumed credibility

Presumed credibility is all about the mere-exposure effect. A psychological phenomenon where we develop a preference for things – simply because we’re familiar with them. I saw your ads on Above the Law, I read your LexisNexis guest post, I listened to your interview on Attorney Talk, etc.

Presumed credibility uses the mere-exposure effect to…

Creates comfort, likeability and familiarity
Improves processing fluency and increases receptivity
Increase trust by default (helpful if the providers you’re evaluating deserve that trust)

Earned credibility

As a prospective customer, you’ve had a positive experience with the legal software firms you’re evaluating. Their website is easy to navigate, sales calls were productive and helpful, their content was clear and concise, etc.

Legal software providers with earned credibility…

Have a consistent track record.
Don’t ask for the unnecessary upfront.
Answer your objections.
Are candid and helpful.

Surface credibility

Your subjective opinion of the legal software solutions you’re evaluating (e.g. This is easy to use, I like how this looks, looks trustworthy). Examples of surface credibility include:

Good product branding
Professional website design
No errors, bugs or technical problems
Demo availability
A site/product that’s easy-to-use
Staff photos, bios and company contact info
High quality imagery

Legal software with good surface credibility are…

Invested in their product and service.
Have the right credentials, values and ideals
Use legal software conventions and your pre-existing expectations to build trust

Step #2: Vet providers legal software solutions

Experienced firms know it can be tough to determine whether a legal software solution is a proper fit. What looks good on paper may be a disaster in reality. It’s a common practice for software providers to offer a demo or free trial of their product.

Take advantage of it.

Request demos. You’ll need time to verify that the software solutions you’re considering will work with the tools and resources you’re already using. Requesting a demo + sales call gives you the details you need to gauge your provider’s familiarity with their own product.
Verify product development. Look for continued investment/development into the product. Ask about their product road maps, implementation and future plans; you’ll want to verify that the product you’re buying isn’t simply a cash grab to prop up a struggling company.
Make sales calls. How are sales people trained? Are they knowledgeable and focused on serving your needs or are they pushy and aggressive closers who are only focused on the sale? Remember the saying: How they sell is how they’ll serve.
Ask for clear upfront pricing. Verify the total cost of ownership (e.g. initial, training and future costs). Get clear details on any incidentals or extras not listed.
Share your objections. Share your concerns and objections with each vendor. Ask for a solution to your core objections. Look for SLAs, guarantees and warranties. Take note of vendors who are unwilling to commit fully to their own product.
Look for support. Your team will most likely need onboarding, training and support. Is this comprehensive? One-on-one? Self serve? Ask software providers if they’re willing to extend the support you need to get buy-in from your team.

Make a real effort to use the legal software in a day-to-day setting. Notice any red flags, run into any problems? Ask about it. Have questions or concerns? Raise them. Behave as if you were already their best, most profitable customer.

Outline your deal breakers ahead of time. Then watch how legal software providers respond.

Pay attention to their content, style, tone and approach. Are their support reps irritable and difficult? Do they give you incomplete answers? Does the software fail to perform as expected (or simply fail)?

The cost of failure is high. Too high for you to ignore

No one wants to research and vet legal software.

Which is why it’s ignored so often. Partners and associates at law firms, they’re already exhausted and overworked. For many, it’s about finding “good enough” rather than identifying “great.”

Don’t let it happen to your firm.

This isn’t just a case of low priority work. It’s about the tools you need to grow and maintain your firm. Researching and vetting your legal software takes time, but the rewards are there. Legal software often comes with unexpected downsides.

This doesn’t have to be the case for your firm.

Choosing the right legal software begins with self-evaluation, asks the right questions, and ends with complete answers. Keep downsides to a minimum. With the right amount of research and vetting you’ll find the perfect legal software solution for your firm.

Because the stakes are high, too high for you to ignore.

How professional service firms can master social media

September 29, 2017 By Andrew McDermott Leave a Comment

An Ohio judge was forced to step down from a serial murder case.

A local newspaper reported that this judge had posted anonymous internet comments about the defendant and his attorney. Ohio Chief Justice Paul E. Pfeifer removed her from the case. The judge in question was adamant that she was innocent.

Was she innocent or guilty?

While we may never know, the impact on her credibility was clear. There was a significant loss of trust. The judge decided to sue the Cleveland Plain Dealer as a result.

Is social media worth it for professional services firms?

Absolutely, but it all depends on your goals.

Social media works well if your expectations are in line with the results the medium can deliver. Want to become a well-known thought leader? Social media is a great place to start. Are you looking to drive traffic, leads, and sales for your professional services firm? Again, social media works well.

What about the time investment?

If you’re an in-demand provider, you’re probably busy taking care of your clients. Attorneys, accountants, and consultants have a lot on their plate. Why bother with social media if it won’t lead to new clients?

Your clients expect you to make an effort.

HubSpot released The Customer Lifecycle: Consumer Insights to Improve your Business. Here’s what they found in their report.

[slideshare id=40885791&doc=sociallifecycle-141029142644-conversion-gate02]

Over 60 percent of consumers expect brands to be on Twitter, but only 30 percent follow their favorite brands there
95 percent of millennials expect brands to have a Facebook presence
87 percent of Gen X’ers and even 70 percent of those ages 45 to 60 think brands should, at the very least, have a Facebook page
Consumers reduced expectations by about 10 percent for a Twitter presence, they dropped expectations even further for Instagram, LinkedIn, Pinterest, YouTube
On average, consumers follow brands on only half as many platforms as they expect them to be active on

If this seems unfair, you’re absolutely right.

It is unfair.

There are simply too many brands to follow. Your clients realize their time is valuable, that they need to prioritize, to choose the best brands and providers to follow. They follow an unspoken mantra — be kind, be helpful, or be gone.

How professional service firms can master social media

The mantra — be kind, be helpful, or be gone isn’t all that specific. I realize there’s not a whole lot of actionable advice firms can glean from that. Let’s take a closer look at what that means.

Mantra #1: Be kind

You’ll need to exemplify the values and norms that your clients, peers, and the industry aspire to. You’re gracious, even when it’s undeserved. Polite, yet firm. Knowledgeable, yet truthful. Transparent yet private. Each industry already has its own set of ethics and values.

You already know how to be an excellent human being. Do that, even when it hurts, when you’re tired, when you don’t want to do it. Be excellent to anyone and everyone you meet on social media. Honor those around you even when they refuse to honor you.

Take the high road.

Show everyone you understand what it really means, and you have what it takes to be kind.

Mantra #2: Be helpful

What do your clients actually need from you?

Most people treat their social media posts like bad Christmas gifts. They share the content they want to see rather than the content prospective clients want to see. There are many different ways to approach this, but I like to use something I call TTT; TTT stands for Type, Tenor, and Tone.

Type: What type of content are clients looking for? Research reports or raw data? Stories and relatable content? Helpful tools they can use in their businesses? Visual content that simplifies complex problems?
Tenor: This refers to your main topic or the general gist of your message. If you’re an IP attorney and you teach clients how to “protect what’s yours,” the vast majority of your content should tie back to this message in some way.
Tone: How will you approach your topic? For example, GEICO approaches its topic with humor. BMW with prestige and power. Tesla with innovation, disruption, and rebellion. Your tone is important because it accomplishes three distinct goals: (a.) It teaches prospective clients about your values. (b.) Shows clients what to expect from you. (c.) Attracts like-minded clients who are eager to do business with you.

Here’s an example to help you formulate a strategy.

If you’re an attorney, you can construct a social media content strategy that provides you with the direction you need to create outstanding content.

Here’s a fictitious example for a Real estate attorney.

Content type:

Checklists
Guides
Tools
Courses
Workshops
Speeches

Content tenor:

Minimize real estate losses, maximize tax-free gains.

Content tone:

Practical, actionable, in-depth education that stops short of legal advice.

See what I did there?

Here’s the part that so significant about TTT. You’re able to craft a content strategy that just happens to give you mastery over your social media. Now you’re ready to share content prospective clients actually want from you, in formats that are ideal for your business, industry, and audience.

Here’s why this important.

You don’t have the time you need to complete this plan on your own.

If you’re a professional services provider, you don’t have enough time to attract clients, manage clients, and complete work for your clients. It’s even more difficult if you’re responsible for growing your business or managing employees.

You’re going to need help.

What professional services firms need to master social media

You have the strategy; now, you’ll need software and support to master social media. This is important because your value to your firm grows as you delegate.

But why?

Professional service providers struggle to balance billable and non-billable work. They spend a significant amount of time on tasks that don’t produce revenue or returns for their organization. By outsourcing the work to software and support teams, you can master social media in a way that delivers sustainable results for your firm.

Remember the plan we made earlier?

We’re going to use the ‘content type’ to reach a never-ending supply of social media content.

Content type:

Checklists
Guides
Tools
Courses
Workshops
Speeches

Here’s how you turn your content into more content.

Step #1: Choose the right social media tools

There are lots of providers you can choose in the social media space; however, it’s important that you identify the providers that have the specific set of features you need. These features make social media management a manageable affair in the short and long term.

Here’s a short list of the features you need:

Social media automation
Bulk uploads for status updates
Scheduling so you’re able to post on specific dates/times
Continuous reposting
Posts are saved permanently after they’re published

These features are the important broad strokes. You’ll want to create a list of additional features if you’re looking for something more robust. Here are a few tools to get you started.

Once you’ve selected the social media tools that are right for you, you’re ready to…

Step #2: Build a support team

You can choose to hire direct, work with existing in-house talent, or work with a virtual assistant. You’re looking for the right person or team to handle your social media content. Here are a series of articles I’ve written on building the right virtual team.

You’ll want to pursue the best talent you can buy. It’s a good idea to start employees on a freelance or trial basis so you can identify the right candidates in a live environment. You’ll want to provide your team with adequate training, so they’re able to perform to the standard you expect.

Step #3: Create an editorial or content calendar

We’re going to use the content types we’ve discussed as a guide here.

Content type:

Checklists
Guides
Tools
Courses
Workshops
Speeches

Let’s say you’ve just delivered an incredible talk, you were able to get a recording of the speech, and you’re ready to post it on social media. Most attorneys take that talk and drop it on YouTube. A few may embed the video on their site.

Then it dies a slow death.

That isn’t going to happen to you. You’re going to convert your amazing speech into evergreen content that delivers a never-ending supply of traffic, leads, clients, and revenue for your firm. Here’s how you’ll do it.

Break your speech into multiple parts (specific to each platform), ensuring that each part delivers incredible value to readers or viewers.
Transcribe and edit your speech, workshop, or talk.
Have your assistant pull 20 to 50 quotes or excerpts from your content, in this case, a speech.
Create images for half of the quotes.
Create unique bit.ly links for each of the social media posts you create.
Create two to six landing pages with the next part of your content.
Add tracking pixels so you can retarget viewers/readers later.
Advertise an irresistible offer to the prospects who have taken the time to consume your content.
Advertise an introductory product, consultation, or service to those who have taken you up on your irresistible offer.

This strategy is helpful because it enables prospective clients to sort themselves. If you’ve done the upfront work and you’ve created content your clients actually want, you’ll begin to attract prospects automatically.

This is how you master social media.

What about the danger to professional services?

As a service provider, there are important policies and procedures you can implement to minimize the risk to your business. Social media doesn’t have to be a liability to your business. With a structured approach, it can be an incredible tool that generates consistent interest and attracts clients to your professional services firm.

Here are some tips you can use to avoid a social media faux pas.

Don’t share or discuss private matters publicly.
Avoid discussing private matters with unrelated parties.
Share truthfully, disclose carefully.
Don’t create an inappropriate client relationship with non-clients.
Avoid frivolous or controversial claims.
Educate and inform those in need.

There are obviously more rules to follow. Depending on the laws and requirements of your industry, you may be held to a much higher standard, which is very good news.

Work to exceed those standards.

Social media is an essential tool for professional service firms

It’s also one your clients expect you to use.

That’s the problem, though, isn’t it? If you’re a professional services provider, you don’t have the time to attract, manage, and serve your clients. It’s even more difficult if you’re responsible for growing your business or managing employees.

You don’t need the time.

You just need the right framework. With the right strategy, you’ll have the software, support, and structure you need to generate amazing results from social media, mastery guaranteed.

Five Principles to Getting Paid for Lawyers

September 2, 2015 By Andrew McDermott Leave a Comment

“How can you get out of paying your attorney fees?”

An anonymous user on Quora submitted this question; at first glance, they seem to be interested in accepting their attorney’s hard work on their behalf. They just don’t want to pay for it. Maybe this is an overreaction; perhaps this client has simply run out of money?

Here’s another question.

“What’s the best way to fire an attorney and recoup fees?” The intent of this question is abundantly clear. The client is dissatisfied, more than that, they don’t want their attorney to be paid for their work.

This is unethical.

Delinquent clients are part of attorney billing

Or are they?

Is there a way to change this for the better? Can you increase the likelihood that your clients will pay your invoice completely and on time? Here are five principles you can use to ensure you’re paid well for your hard work.

Principle #1: Choose the right clients

This isn’t something you’re taught in law school. Rainmaking is an important part of a successful legal practice, yet it’s something many attorneys struggle to do well. Many attorneys focus their attention on clients who need their services and agree to pay for said services.

This line of thinking is backward.

Instead, it’s more profitable to focus on the clients that meet two important criteria. They must be willing and able to spend the resources needed to retain your services.

Isn’t this the same thing?

Not at all.

Clients who are willing to spend: These clients understand the value behind your services; they also see value in your firm specifically. They’re eager to retain you, and they have a respectful tone, and in some cases, a kind of reverence in their tone when they speak to or about your firm.
Clients who are able to spend: These clients can invest the resources needed to retain your services over the long term. They have the time to work with you on their matter, the money needed to solve their problems, and the necessary information to ensure you provide them with a reasonable to ideal outcome.

Your clients should meet both criteria.

Clients who are unwilling to invest tend to become vampires. They believe they’re the special ones in the relationship, so they require you to bend over backward to keep their business. As their demands increase, the amount of revenue you receive decreases.
Clients who are unable to invest string you along with promises; they use tactics like guilt and shame to tug at your heartstrings. They plead for understanding, for second chances, for more support. These clients drain your time and your bank account.

Focusing on clients who meet both criteria addresses:

Clients who refuse to pay on time or at all
Fee disputes from unhappy clients who refuse to pay a cent more than they have to
Clients who spend less time and money with the firm
The perception that invoices + follow up is sleazy, rude or offensive
Losing billables to shrink
Clients threatening to file a bar complaint

Research from Hee?Woong Kim et al. shows that there are two kinds of relationships clients have with their service providers.

Constrained relationships.I have to stay with my law firm to get what I want.
Dedicated relationships.I want to stay with my law firm.

Choosing clients who have both the willingness and the ability to pay creates both dedicated and constrained relationships. If your clients want to stay, they’re far more likely to do what it takes to remain a client (i.e., pay your invoice).

Principle #2: Set and enforce firm-wide policies

With firm-wide policies, your firm operates as a single unit. Attorneys are expected to turn in their timesheets at the same time, LEDEs is standard operating procedure, and everyone uses the same minimum billing increments when adding their time to their timesheets.

If this sounds obvious, it’s not.

But it’s an important step as this helps firms track their hourly billings, improve utilization and realization rates, and create more accurate revenue projections.

Just one problem.

Setting policies is one thing; enforcing them is another. According to an Altman Weil survey, law firm partners were the number one impediment to change in the vast majority of law firms.

“In 69 percent of firms, partners’ resistance to change is an embedded drag on progress, and recent economic successes may obscure any clouds on the horizon – at least for the short-sighted.”

Law firm leadership is most likely unwilling to change. If you’d like their cooperation, there needs to be a sufficient amount of pain involved.

69 percentof law firm partners resisted most change efforts (up from 44 percent in 2015)
66 percentof law firms experienced insufficient economic pain to motivate change
60 percentof partners were unaware of what they might do differently

If these firm-wide policy changes will be successful, change needs to be driven from the top-down, firm leaders need to lead by example.

How does this help attorneys get paid?

It’s easier to follow client billing guidelines. It’s easier to make changes or campaign for client support if everyone is on the same page. Timekeeping is easier and more streamlined, billing, and invoicing more fluid. It’s easier to send clients the information they need to make good on their promise to pay.

Principle #3: Follow billing guidelines

Successful client billing begins with communication.

Communication ensures that you’re paid completely and on time. If you’d like to avoid a billing dispute, you’ll need to identify the billing guidelines that govern the relationship. You’ll want to flush out:

What’s required or permissible
Billing details or steps that require approval by the client
Actions that are forbidden or unacceptable
Stop words or hidden rules that immediately flag your invoices for review

The vast majority of billing issues can be narrowed down to communication. Address these issues at the beginning of your relationship with clients. Then, respect any boundaries you and your clients have set to avoid any potential deal-breakers or issues with nonpayment.

Principle #4: Make it easy for clients to pay you

According to LawPay, law firms that accept online payments get paid 39 percent faster. If you offered your clients Net 30 terms, this means you’d be paid 11.7 days faster. This would have a drastic effect on your cash flow if you received payment for every invoice faster.

The easier it is for clients to pay you for services rendered, the more likely they are to do it.

Accepting online payments can and will increase your revenue. Research by Richard Feinberg demonstrated that consumers with credit cards were willing to spend 50 — 200 percent more, above and beyond cash or check expenditures.

Principle #5: Use alternative fee arrangements

A Legal Trends report found 44 percent of law firms list client’s inability to pay all at once as the most common reason for nonpayment. Firms also state that 31 percent of clients pay late even when they have the funds. This is, of course, the problem; neither party actually wants to communicate.

The majority of your client relationship concerns revolve around money and communication. This is good news because it gives savvy firms a chance to use this knowledge for their benefit.

How do you fix this?

You have a discussion about alternative fee arrangements with clients at the beginning of your relationship. You bring this up as part of your client intake process, presenting the options that work best for you and your client. Research shows 22 of the 650 law firms serving the Fortune 1,000 rely on AFAs. AFA usage is at an all-time high, but it hasn’t gone fully mainstream yet.

But flat fee work isn’t as profitable!

That’s the real reason why so many firms refuse to integrate alternative fee arrangements in their practice. Is this actually true? Here’s what an Altman Weil survey found:

“When asked to compare the profitability of non-hourly work and hourly work, 84% of proactive firms find their non-hourly projects to be at least as profitable as their hourly projects. This is the case in only 51% of reactive firms. Narrowing the focus, 40% of proactive firms report their non-hourly projects are more profitable than their hourly projects, compared to only 10% of reactive firms. The lesson is that firms that make a rigorous effort to understand and manage a new or evolving market tactic like alternative fees generally succeed in doing so, and enjoy increasing benefits over time.”

Alternative fee arrangements are worth testing, especially if it produces more revenue for your firm. It’s an excellent way to combat the downward pressure on fees, sluggish realization rates, and poor financial performance.

Attorney billing is successful when you get paid

Use these five principles, and you’ll increase the likelihood that your clients will pay your invoice completely and on time. Choose the right clients, create the right environments, follow billing guidelines, and you’ll find your realization rates continue to improve.

With consistent effort, you’ll find you’ve created dedicated relationships with clients who are eager, willing, and able to spend, no defaults necessary.

3 Tips to Getting Paid Faster

July 29, 2015 By Andrew McDermott 2 Comments

Can you identify a successful firm vs. a shrinking firm?

According to a recent Legal Trends report, successful law firms maintain a 90 percent (or better) collection rate from clients, with no exceptions. What about shrinking firms?

Their collection rates decline to 81 percent over time.

The research shows firms that struggle, fail to perform in two key areas: (1.) They don’t have the processes they need to collect payments reliably from their clients and (2.) They aren’t able to find high-quality clients who are both willing and able to pay.

Why getting paid faster matters to law firms

Investopedia explains why getting paid faster is so important to a law firm’s cash flow.

“If your payables (your debts) are due before your receivables (money from a sale you haven’t collected yet) come in, you’ll face cash flow problems. This, in turn, means you won’t be able to pay your bills on time, which can lead to bigger problems, like making payroll in a timely fashion and facing questions of creditworthiness.”

If you aren’t able to regulate cash flow, your firm will eventually experience a cash flow crunch, leading to the headaches listed above and layoffs or a loss of talent. CB Insights performed a postmortem on 101 and one failed businesses, identifying the most common reasons for failure.

The second biggest reason?

The business ran out of cash and was unable to remain solvent.

CB Insights - why startups fail — CB Insights – Why startups fail.

Source: CB Insights

Cash flow management is the foundation and the most important component of your business. Getting paid faster reduces the odds of your firm experiencing a cash flow crunch. Here are # tips you can use to get paid faster and remain cash flow positive.

Tip #1: Build a firm clients fight to retain

How do you accomplish this for your firm?

You create a compelling value proposition for your law firm. A value proposition answers the question, “why should I retain your firm?” with an actionable and persuasive response. If your value proposition is compelling and well known in the marketplace, it’ll be easier to attract, win, and retain top tier clients.

What makes a value proposition so special?

It creates an economic moat for your law firm. Warren Buffet popularized the idea of an economic moat. An economic moat helps your business retain clients; it minimizes churn, and it makes it extraordinarily difficult for competitors to attack your business.

Here are five moats that affect your law firm.

The brand moat.With the brand moat, clients are willing to pay more for your services because of your reputation and the benefits they receive in return (e.g., winning, prestige, conferred trust, etc.).
The secret moat.Intellectual property – copyrights, patents, trademarks, trade secrets — anything that fits into these categories makes direct copying (or stealing) illegal, making it harder for competitors to compete with you. Amazon’s one-click, Google’s search algorithm, and KFC’s secret recipe are all secrets.
The toll moat.This means you have exclusive control over a market or niche. You’re the only game in town, so if clients want the [best], they’ll have to come to you. This could be a collection of data, an experienced employee roster (i.e., all of our attorneys are former judges).
The switching moat.Businesses with a strong switching moat are an intrinsic part of their client’s life. These clients are so dependent on their firm that switching or separation is incredibly difficult.

With a strong value proposition, your firm can fight off larger or better-funded competitors who are looking for a way to infringe on your marketshare.

Why does this work?

It turns the attorney/client dynamic on its head. It shows clients that they need you more than you need them. If you have a waiting list of clients who are eager to work with you, clients aren’t as willing to relinquish their position.

As a result, clients are motivated to perform.

They’re far more likely to pay you fully and on time. They’ll avoid misbehaving; they’ll focus their attention on cooperating with you. A compelling value proposition enables you to attract clients who are eager, willing, and able to pay for your services.

Tip #2: Create payment systems and procedures

As we saw in the beginning, struggling firms often don’t have the systems and procedures needed to stabilize collections. If they remember to bill their clients, they’ll send out an invoice.

In time, this produces a cash flow crunch.

Adopting the right systems and procedures is an easy way to speed up the payment process. Here’s a sample process to show you what I mean.

Compile invoices accurately, adhering to client billing guidelines
Shepherd your client’s invoice through ebilling, looking for red flags or trouble spots
Send invoice to your client, making sure to clarify due dates and methods of payment
Send an email payment reminder to your client on the invoice due date
Call your client once the invoice is one week late
Call client again, send out an email, and snail-mail reminder once the invoice is two weeks late
Visit client in person once the invoice is one month late [special cases only]
Place client account with a collections agency, suspend or terminate representation

Can you see what’s happening?

You’re making a good faith effort to reach out to your clients, this way there’s no confusion about your outstanding invoice. You’re approaching them directly, asking for what you want, and concluding the relationship if they’re unwilling to cooperate.

Here’s why these systems and procedures are essential.

They keep your firm healthy. If you’re dealing with a delinquent client, there’s a definite end to the relationship if they’re unwilling to maintain their end of the deal. If they’re struggling with hard times or they’re willing to restore their account to good standing, there’s a path forward.

Tip #3: Use alternative fee arrangements

A Legal Trends report found 44 percent of law firms list client’s inability to pay all at once as the most common reason for nonpayment. Firms also state that 31 percent of clients pay late even when they have the funds. This is a cash flow crunch waiting to happen.

How do we know?

In Cash is King: Balance and Buffer Days, JP Morgan analyzed 600,000 small businesses, to see how they managed their cash flow. Here’s what they found.

The median small business has average daily cash outflows of $374 and average daily cash inflows of $381, with wide variation across and within industries.
The median small business holds 27 cash buffer days in reserve.
Small businesses in labor-intensive or low-wage industries hold fewer cash buffer days than those in capital-intensive or high-wage industries.

Clients are unwilling to pay all at once, while firms are expected to wait for payment that’s rightfully theirs. This unpleasant scenario can be avoided if you’re willing to use alternative fee arrangements (AFAs) in your firm. So far, only 22 of the 650 law firms serving the Fortune 1,000 rely on AFAs.

Maybe these AFAs are unprofitable?

Actually, it’s the opposite. As I mentioned in a previous article, 84 percent of proactive firms find their non-hourly projects to be at least as profitable as their hourly projects. Nontraditional AFAs can generate a significant amount of income.

Here are several ways you can use AFAs to get paid faster.

Require clients to prepay (they will if you’ve done tip #1)
Use fixed fees to systematically increase your rates and pay in large blocks (i.e., 25% upfront)
Increase contingency fees via barter (i.e., get cash advance now)
Require prepay via holdbacks
Use portfolio fixed fees to auto-bill clients for a portfolio of bundled services each month
Create subscriptions for routine work at a predetermined price that’s both prepaid and paid monthly

What does this mean for your law firm?

It means a cash flow crunch is optional. With the right strategy and tactics, you don’t have to experience a crunch on a regular basis. Even better, you can use these ideas to produce more consistent income for your law firm.

Successful firms get paid faster

They collect on 90+ percent of their invoices, and they maintain that average with no exceptions. Shrinking firms struggle to maintain a high collection percentage. They attract the wrong clients, and they neglect the payment systems and procedures that would boost their revenues.

A cash flow crunch is all but inevitable for these shrinking firms.

Cash flow is the lifeblood of your law firm. Attracting high quality clients is not enough; you need these high-quality clients to pay you for your hard work. They need to pay you quickly and completely, without extensive discounts, write-downs, or write-offs.

Follow these three tips, and you’ll find you’ve left the shrinking firms in your industry behind.