Is your time is valuable?

The obvious answer is Yes. Just one problem. There’s something standing in your way. A barrier that, if ignored, makes it impossible to claim the value that’s rightfully yours.

Tracking your time.

Your time tracking habits determine whether your law firm wins in the long term. A survey conducted by Adam Smith Esq. and Smart Web Parts found, billable leakage costs firms $20,000 to $40,000 annually, per individual.

Are your billables leaking?

Billable leakage costs firms $20,000 to $40,000 annually. This means a firm with 100 attorneys loses $2 to 4 million every year.

It gets worse.

According to the survey, attorneys are wasting an average of 3.1 hours per individual, per month, on filling out timesheets. The average billing rate in the survey was $438 per hour.

You see where I’m going with this right?

This means law firms waste a conservative $16,294 per person, per year by simply filling out timesheets. In a 100 person firm that’s $1,629,400, that’s billable time lost, on filling out timesheets.

Upsetting no?

Billables shouldn’t be leaking but they are. Why? leakage comes from (at least) three sources.

1. Time leaks. A failure to produce or accurately record your billable time. This typically results in under-billing. An associate performs a particular task but they don’t fill out their time sheet until the end of the week. They complete 12 hours of work but only report 8.
2. Manually filling out timesheets. Attorneys waste time manually filling out timesheets. Instead of relying on a hassle-free system to track their time, they’re relying on excel spreadsheets. Or scribbling them down on post-it notes. Or entering them into their CRM system where they don’t belong.
3. Write offs. A good example would be the total amount of completed work that’s recorded but never billed. A notorious example? A partner decides that writing off a junior associate’s time is the best way to boost their fees, salary or bonus. Write offs can include fee reductions to satisfy an unhappy client, bad debt or disbursements.

These are poor time tracking habits.

It’s also the source of our problem.  But there are even deeper issues at play.

1. Attorneys hate time tracking. Attorneys in our previously mentioned survey described time tracking as “the bane of my existence” and “the worst part of law firm life.” Time tracking is indispensable, but many attorneys see it as a morale-killing, soul-sucking endeavor. Why? It’s busy work that takes up too much of their precious time.
2. Competing work. The non-billable work that sucks up your time and energy. This work seems to be a necessary evil, a distraction that makes it harder to hit billable benchmarks. It’s a miserable ordeal because typically, these competing to-dos aren’t optional.
3. Delayed time tracking. If the time tracking process is difficult or tedious, attorneys are more likely to put it off. This delayed tracking inevitably leads to reconstructive time entries. The kind where attorneys engage in creative “guesstimation.”  These time entries are often inaccurate leading to the time leaks and under-billing I mentioned earlier.

These challenges create bad habits.

Are poor time tracking habits really law firm killers?

Law firm closures. Time tracking.

The two seem somewhat disconnected, don’t they? The unfortunate reality is that these two factors are more connected than we realize.

Why?

Ownership. For the most part, law firms are owned by their partners, not by investors. Partners, as you know, don’t receive a fixed salary. They’re paid via profit shares.

Why is this an issue?

Partners are sensitive to two factors (a.) the profitability of the firm and (b.) the inherent liability that comes with ownership.

• Partners are often personally liable when a firm dissolves
• Any compensation a partner receives is subject to a clawback during bankruptcy proceedings
• Partners may have to give up any billings generated after the firm is dissolved
• A decline in profitability may trigger partner withdrawals

These liabilities are unpleasant.

The easiest way to avoid these liabilities as a partner? Be one of the first to withdraw from the partnership.

You know it. I know it.  

Here’s the time tracking connection. Partners are taking on a considerable amount of risk. Naturally, they expect to be well compensated for their troubles.

It’s all about the partner draws.

Partners are happy as long as the cash continues to flow and their partner draws continue to grow. It’s a treadmill that comes with a significant amount of pressure.

Hold and carry.

Partners want to maintain the standard they’re used to. The partner’s draw must increase over time. The pressure is so intense law firms are motivated to borrow money from banks, anything to maintain the expected standard.

What if they fail?

What if the firm can’t live up to these lofty expectations?

Partners run.

They look for better opportunities somewhere, anywhere else.

Enter time tracking.

Poor time tracking habits lead to disaster

If you’re a small or solo firm good time tracking is a must.

A small/solo firm simply can’t afford to lose a significant amount of revenue each month and stay in business. As the saying goes, cash is king.

Running a medium to large firm?

You probably have partners. You’ll need to keep these partners happy. Partners are primarily interested in one thing.

Partner draws.

The more money they receive the happier they’ll be. Over-bill and you run the risk of losing clients. Under-bill and you lose a tremendous amount of revenue and your partners.

Okay then.

How do you improve your poor time tracking habits?

Simple.

Make it easy for attorneys to track their time

The saying “time is money” is literally true.

Want to improve your poor time tracking habits? Make it easy for attorneys to track their time. So easy they can track their time with the push of a button. Reduce the number of restrictions, details and red tape attorneys are required to go through.

Next, avoid competition.

Attorneys are forced to manage a plethora of unpleasant busywork.

• Reduce paperwork. Can you find the files you need, when you need them? Are your legal docs and paperwork centralized and available on-demand? The time your attorneys spend searching for a document? That’s non-billable work.
• Outsource marketing. Attorneys are typically expected to bring in business. When are they supposed to do that? Marketing is a necessary and important part of work, but it’s non-billable work. How can attorneys juggle these billable and non-billable work requirements? Outsource marketing whenever possible. Work with trusted advisors or work to create marketing leverage (e.g. write a book, give a speech, etc.).
• Reduce interruptions and delays. Gloria Mark, researcher at the University of California, Irvine found that it takes 25 minutes to recover from an interruption. Most workers in an office setting get 11 minutes to recover, which isn’t enough. Interruptions erode the amount of billable time attorneys have to work with.
• Systematize repetitive work. Are you writing the same emails, covering the same topics, or dealing with the same repetitive problems? Can you create a set of templates or scripts to reduce work times?

Use behavioral models to improve poor time tracking habits. Give your team the psychological motivators needed to produce outstanding results.

Wait a minute.

What if you don’t bill hourly? What if you rely on alternative fee arrangements (AFAs)? Time tracking isn’t really necessary, is it? Good time tracking habits are even more important.

Think about it.

If you’re working for a set fee, hours are still important. You’ll need to know (a.) how long it takes you to complete a given task or project and (b.) whether you’re still profitable at the price point or fee schedule you’ve set.

Are you working for free? Are you profitable?

With good time tracking habits, you’ll get a clear, straightforward answer.

Poor time tracking habits create leaks

Attorneys waste an average 3.1 hours per month filling out timesheets manually. Billable leakage costs law firms a conservative $20,000 to $40,000 annually, per individual. The true estimate is projected to be much higher but no one wants to admit failure.

Billable leakage is inevitable.

None of us are perfect after all. But leakage can and should be kept to a minimum. Your time tracking habits determine your firm’s success or failure over the long term. Leakage isn’t the source of your problem. You’ve identified the source, you have the cure.

Just simplify time tracking.

Minimize the barriers and you’ll find your time tracking habits are incredibly valuable.

Is finding a mentor easy?

Believe it or not, the answer is Yes. Some would have you believe that finding a good mentor is difficult. And it is – if you don’t have a cohesive strategy to follow.

What if you have the right strategy?

Finding an amazing mentor becomes inevitable. A simple and straightforward process you can follow. With the right approach, you can build a successful practice rapidly, navigating industry twists and turns, successfully.

Finding a good mentor isn’t the problem

It’s avoiding a bad one.

That seems counterintuitive, doesn’t it? But it’s true. There’s an abundance of seemingly qualified mentors, they’re everywhere. Under the right circumstances, there are quite a few people who are both qualified and able to mentor you.

Most aren’t right for you.

Finding a mentor in the legal industry depends primarily on you – where you are, what you want and what you’d like to accomplish.

It’s about you.

That’s the problem. Most mentees make two fatal mistakes.

1.  They make everything about their mentor. These mentees give too much, too fast. They approach potential mentors with a dysfunctional attitude, placing themselves in a one-down relationship (e.g. I’m unworthy. I’ll do absolutely anything and everything you want).
2.  They make everything about themselves. They begin each relationship with a self-serving attitude (e.g. You’re beneath me. What are they going to give me? I deserve this opportunity). These mentees choose to take far more than they give.

Bad mentors make these dysfunctional behaviors worse.

It’s subtle.

They actually encourage these dysfunctional behaviors. Bad mentors feed off their mentees sense of unworthiness, using them to improve their own self-worth or simply to do their dirty work.

Or they latch onto arrogant mentees.

They use their confidence and self-assurance to attract new, more favorable opportunities. Then, they toss them aside once they have what they need.

Finding a great mentor starts with your needs

Are there specific goals you’d like to accomplish in your law firm? Balancing paid and pro bono case loads? Networking with courthouse and industry professionals? Keep up with the changes in your practice areas?

Figure out what you want.

Take the time to map out your desires, goals, expectations and problems. You’ll want clear and distinct answers to some seemingly general questions.

Be specific and precise.

Set clear expectations and measurable goals. Outline your problems in detail, stating why they’re problems for you. List the consequences of these problems if they’re ignored.

Don’t skip this!

When you document your desires, goals, expectations and problems, you’re creating a checklist of sorts. The kind of checklist you can use to qualify or disqualify any potential mentors you come across. It’s a simple way to weed bad mentors out.

But it also communicates value.

Most of the time, mentees aren’t sure about what they want for their career or practice. This typically means they don’t know what they’re looking for in a particular mentor.

Okay then…

What should you be looking for in a mentor?

The unexpected qualities you need in a great mentor

The answer to this question is usually a generic one.

“Find a mentor who’s willing to communicate. Make sure they listen, are prepared and have good character” – all pretty obvious stuff right? It’s generic because a mentor, if they’re any good, already has these qualities.

It’s common sense.

So what kind of quality should you be looking for in a mentor then? Are there specific details you should keep an eye out for?

Absolutely.

Here’s a short list of qualities to look for in a mentor.

• Your mentor views you as an equal. If you’re treated like a groupie or viewed as the help, you’re in a one-down relationship. Eventually, that may become abusive or predatory.  Great mentors approach mentees as equals.
• They’re open to a quid pro quo relationship. A great mentor expects a certain amount of give and take in the relationship. It doesn’t have to be focused on a particular outcome or scenario, but it should be balanced. A great mentor expects their investment in a mentee to pay off.
• Their ethos and values align with your own. If you disagree with your mentor on a fundamental level the relationship is probably not going to work. As people, we’re drawn to those who are most like us. It’s important that your mentor’s thinking is aligned with yours.
• The relationships they have are stable and healthy. Does your mentor have good relationships (personally and professionally) with those around them? What do their direct reports say about them? How does your mentor treat those at the bottom?
• They’ve accomplished similar goals, solved comparable problems and they have the experience you need. This isn’t simply about finding a mentor that’s successful in general. This is about finding a mentor that’s successful in the specific areas you’re looking for. Want to attract more environmental law cases? Find a mentor with that specialty.  

These details seem simple enough, don’t they?

But they aren’t.

It takes a fair amount of digging to figure out whether the mentor(s) you have in mind is actually a good fit for you and your organization. Which brings us to our next question.

Why should a mentor (any mentor) work with you?

Most mentees are the same. Are you?

Most mentees do the same thing. They pick a target, work themselves up into a lather, then they go for the ask.  “Will you be my mentor?”

It usually doesn’t work.

Because it’s common advice. We’re told to ask for what we want. So we do what most inexperienced mentees do. We ask and then we’re rejected.

But why?

We’re not looking at it from our mentor’s perspective. Let’s assume, for the sake of argument, that the mentor we have in mind is moderately successful.

They’re in demand.

If you’re busy, they’re drowning. They’re bombarded with demands from the time they wake up, to the time they lay down. They spend their days sifting through the demands and requests placed on them. In fact, 9 out of 10 times, someone wants something from them.

It’s exhausting.

Imagine you’re trying to carve out some precious family time and you see this request.

“Will you be my mentor?“

What’s the first thought that goes through your head? Yet another person who wants more of my valuable time (most likely for free).

Ugh.

Their answer will probably be No. Which makes sense right? Here’s how you dramatically increase your odds.

Step #1: Create transformative results

Results come in two flavors.

1. Conventional. You hit your billable hours, do amazing work, communicate well, etc. You’re doing an outstanding job, performing at a level that most your peers aren’t.
2. Transformative. These results create significant change. They can attract positive attention to your firm, make things better for the legal industry, or provide a significant amount of value that goes above and beyond.

If you’re an associate looking to attract a mentor you’ll need to achieve conventional results first. Conventional results creates trust (in partners, clients and mentors). It’s an entry-level foundation that tells mentors it’s safe to take a risk on you. If you own your own firm, conventional results are typically assumed.

Which leaves transformative results.

Transformative results are frightening. They shake up industries, go viral, attract national attention and bring in a significant amount of revenue.

These results can be positive or negative.

Step #2: Give your mentors the things they want

Solve their problems, help them reach their goals, propel them towards the things they desire. Let’s say your mentor wants to be featured in ABA Journal so you…

• Pitch a compelling story to ABA with your mentor as the hook
• Reach out to your mentor. Mention that you’d like to interview them for the ABA
• Do the interview, then promote the interview online
• Rinse and repeat

Can you see what’s happening?

With a little bit of ingenuity and persistence, you’ve accomplished what most mentees won’t. You used value to initiate a relationship with your mentor of choice.

Here’s the thing.

These strategies and tactics don’t require a massive investment. It certainly helps, but it isn’t a requirement at all. So what are the requirements? Your ideas, time and a willingness to try. What other ideas can you use to attract mentors?

• Run a webinar discussing the biggest problems in your industry or practice areas
• Sponsor your mentor’s charities or local events
• Ask mentors to weigh-in on a noteworthy debate, then share their feedback
• Infiltrate local groups (e.g. ABA, Chamber of Commerce, SuperLawyers, rotary clubs, etc.)
• Connect your mentors with influencers and power brokers they want but don’t have
• Locate hard to find information/resources then share it with your mentor

See the hidden strategy?

It’s giving.

Give your mentors the things they want (or need). Find a way to add transformative value to their personal or professional lives. Do it well and you have their immediate attention.

Step #3: Make your first ask, the right ask

If you’ve delivered a significant amount of value to your target mentor they should be asking questions. “Who are you, what’s your focus area, what do you want?“

It’s time for the ask.

Your first ask needs to strike the right balance. It needs to be easy enough for your mentor to say Yes to, but challenging enough that it’s not considered condescending.

It’s a tough spot.

But whatever you do, don’t ask them to be your mentor. Now’s not the time for that. In fact, it might never be the time for that.

Why not?

Because mentor / mentee relationships tend to be organic. They develop slowly, naturally, over an indeterminate period of time.  You don’t ask for a mentor, you’re adopted by a mentor.

See the difference?

The mentor / mentee relationship has to be predicated on value. Giving identifies you as unique, a diamond in the rough.

Finding a mentor is easy with the right strategy

Some would have you believe that finding a good mentor is difficult. But it doesn’t have to be. With the right strategies and tactics, finding a mentor is both easy and inevitable.

The legal industry is full of twists and turns. The kind of traps a good mentor knows how to avoid.

With a clear process and the right amount of persistence, you’ll have everything your organization needs to easily attract and convert the right mentors.