Legal Ease Blog

New Lawyers: Take Charge of Your Career Now

Just because you’re a young lawyer doesn’t mean that you shouldn’t take charge of your career from the moment that you graduate from law school. In fact, it’s your responsibility. After all, if you’re not going to nurture your career, who will? Whether you think you might someday open your own firm or you merely want to get the most out of your career, there are three major ways to get your career going on the right track from the very beginning:

• Build and cultivate relationships
• Never stop learning – and using what you’ve learned
• Hone your skills

Build and cultivate relationships

Relationships are at the core of what you do as a lawyer. It’s never too early to begin building relationships that will boost your career.

Make allies

Your secretary may be your best ally in your firm. The same goes for the clerks in the courthouse or the people working behind the desk in the records room or at the bank, etc. The people who are the ‘first line of defense’ can often be the best and easiest way to get things done. They usually know ‘the system’ better than anyone. It sounds simple, but being nice to people in those positions will go a long way. Remember that just because they're 'non-lawyers' doesn't mean that they are somehow less than you.

Secretaries, clerks, etc. have usually been around longer than you and know things like where to get information or supplies you need, who knows the most in the office about a particular area of the law, what the filing guidelines are, how to find things in the computer system, etc. They can also be valuable sources of information about personalities, i.e. when is the best time to approach a particular partner with a question or issue, etc.

Develop good habits

As a lawyer, your reputation is everything. That means the little, day to day things, not just the big things. Integrity means doing what you say you’re going to do, when you say you’re going to do it. That means you’ve got to develop a system for following up on all of your commitments. Whether your firm has specific software or systems in place, you’ve got to have your own personal system so that, when you tell a client (or a partner in your firm) that you’re going to get them an answer by a certain date, you do it. Integrity and credibility go a very long way in establishing relationships.

Cultivate the ability to deal with a crisis

Integrity doesn’t mean that you’ll never make a mistake. But how you deal with mistakes, unforeseen circumstances or crises says a lot about your character, and ultimately carries a lot of weight with clients, colleagues, partners and others. Rather than hiding your mistakes, learn how to ‘fess up and apologize and find out what it will take to make it right.

Begin business development activities

You may think that, as a young lawyer, you can’t do anything to bring business to your firm or to become a rainmaker. Don’t make that mistake. Having the opposite mindset puts you very far ahead of the game. Building business is, ultimately, all about relationships and trust. The earlier you begin to build relationships, the better off you will be.

Regardless of who you are or how long you’ve been an attorney, you’ve got connections and relationships, and you keep making more in your day to day life. Don’t think that business is just business and personal is just personal. Those lines aren’t so defined any more. When you meet people, begin thinking about what you can do to help them, rather than what they can do for you. You never know when you might be able to provide help – even if it’s help that doesn’t have anything to do with your practice. You may be surprised at how effective you can be at helping others – and how much that brings you in return – if you’re genuine and you have integrity.

Maintain your relationships with the clients you come into contact with. Often, existing clients are more important than new ones; you never know when a contact at an existing client will go to a new company and have the ability to send business to your firm, or when a formerly ‘low level’ contact gets promoted and has more control over where their legal business goes. And of course, maintaining the firm’s existing client base is important in itself.

Ask the more experienced lawyers in your firm if you can accompany them on client meetings to see how they handle clients and how business gets done in your office.

There’s no better way to build relationships than getting involved in something you’re passionate about. You never know where business will come from or where the next opportunity will arise.

Join committees at the bar association – these are learning opportunities and opportunities to make connections with other attorneys in the community who might serve as mentors, strategic partners or referral sources.

Build relationships within your office

Relationships are not only important with clients, but they’re important with other lawyers, particularly with lawyers inside of your office. Get to know the personalities, the legal skills, and the diverse personalities within your firm. A good relationship with a higher level attorney provides many opportunities.

If you have an opportunity to socialize with other attorneys in your office, take advantage of it. If your firm has tickets to a bar association event or other function and you are offered an opportunity to attend, do so. That ‘face time’ with other attorneys, particularly outside of the office, can be invaluable.

The relationships you build within your firm can last throughout your legal career, even if you move on to other endeavors. Keep those connections alive if and when you change jobs – don’t burn your bridges with those at your old firm. Even if you leave due to a problem or conflict or because you didn’t like something that was happening at your old firm, part ways with integrity.

Don’t neglect your family and personal interests

Your personal and family relationships are important to your career, too. Life isn’t all about work. You need the support of your family and friends. Make sure you continue to cultivate your relationships outside of work to stay healthy.

Be yourself

You can't build genuine relationships unless you're genuine. Trying to be someone you're not, or someone that someone else (like your mother, your law school professor, your girlfriend, or your best friend) wants you to be, rather than who you want and know yourself to be ultimately always backfires. It's hard work, and added to the regular pressures of being a young lawyer, it can be crippling. It's much easier to establish bonds with others when you're being yourself. When you're truly passionate about what you do and/or who you're doing it for, it will be easier, more enjoyable and ultimately, more successful. Make sure you're following your own path.

Never stop learning – and using what you’ve learned

Educate yourself

The only way we continue to grow is by continuing our education. Attend CLE programs in your area of practice to learn from others in the field, but try attending seminars on other practice areas, too. You may find something else you like, or you may be inspired to find ways to make connections with attorneys in other practice areas that complement yours.

Take courses, read books, listen to tapes on all subjects, not just those that you think will help you in your area of practice. Often, the best ideas come from other industries. Expanding your horizons will always make you more creative and innovative.

Law school doesn't (and sometimes can't) teach you everything you need to know as a lawyer. All of us leave law school with 'gaps' in our education, both in our chosen area of practice and in the business of being a lawyer. Seek to fill those gaps by attending lectures, reading, and seeking out information on topics including the business of law, finance, billing, practice management, marketing and business development, among others.

Learn about your clients, their businesses, and their problems

Being a lawyer is all about helping other people, whether it’s helping them solve a problem, prevent a problem or take advantage of an opportunity. The more you know about your clients, the better you’ll be at identifying their problems and opportunities. Clients like to work with people who show an interest in them as people or as businesses, not just as sources of revenue. Find out what’s important to your clients.

Learn about yourself

Pay attention to what kinds of clients you like working with, and what kinds of matters you like working on.

Trying out different types of cases, even within one practice area, will not only help broaden your horizons and provide you with new experiences, but will also help you determine what your strengths and weaknesses are – where your skills lie, what you like to do and what you excel at. It will also help you to ascertain what kind of people you like working with – both inside and outside of the office. What kinds of clients do you like working with? Which clients do you relate to the best?

Find out how things work within your firm

There’s a lot to learn about who’s who within your firm and how things work. Who gets promoted and how – what have those people done? Is partnership something you want for yourself? If not, are there other options or opportunities for advancement?

Are you interested in a particular aspect of firm life? Does the firm have committees that associates can join? If you have no committees, which partners or associates work on which projects within the firm? Can you approach them to work with them on a particular project, whether it involves substantive law or firm management?

Use what you’ve learned - everything can be used more than once

Use what you’ve learned. If you’ve handled a case with a novel issue, prepared a motion using recent research, or tackled an issue with a particular client that might come up with other clients, re-use what you’ve done. I like to call this ‘repurposing.’

Repurposing can be done substantively, by using the same research or basic forms, etc. for similar clients. But you can get even more ‘mileage’ from your work by thinking outside of your individual cases. Turn that motion into an article for a legal publication, create a case study for your firm’s website, write up the case study for trade publications, etc. Educate others in your firm - do a memo or ask if you can do a short presentation to the firm on a timely issue that you’ve tackled. Or use the information to educate clients in a seminar, newsletter or just a quick email to a client that may face a similar issue in the future.

Don’t forget to ask others in your office whether they’ve handled a particular issue or obstacle before; see if there are samples of forms, letters, motions or other documents in your office so that you don’t have to re-invent the wheel. Learn from other attorneys’ experience. But take some initiative when speaking with older attorneys; they like to see what your thought process is and whether you’ve given the issue some time.

Volunteer to write articles; ask if a partner or more senior attorney in the firm will let you work on an article with them for publication.

Using what you’ve learned will help you retain the knowledge. By following some of the suggestions above, you'll build your credibility and your reputation - and help build your business as well.

Hone your skills

Build your technical legal skills

Don’t just sit around waiting for work to land on your desk. Ask for assignments. If there are particular clients you’d like to work with or specific kinds of cases or transactions you’d like to take on, ask for them, or ask to ‘shadow’ another attorney.

Doctors have the advantage of a residency, in which they have an opportunity to experience different areas of medicine to see what practicing in a particular area is ‘really’ like. Lawyers don’t have that luxury. Often, that means that lawyers are at a disadvantage. The reality of practicing in a particular practice area is often much different than you anticipate. If your firm practices in more than one practice area, ask for assignments in different areas to broaden your experience. Not only will this give you a better idea of what you’d like to do with your legal career, but you’ll have some inside knowledge about what others in your firm are facing.

Be an observer

Watching others is one of the best ways to hone your legal skills. You’ll learn more about being a lawyer by watching other lawyers in action than you’ll ever learn reading a book or sitting behind a desk. It may mean you lose some ‘billable hours,’ (or it may mean that you’ve got to work longer to make up some of those hours), but it will be well worth it. Want to be a litigator? Go to the courthouse, find out where the trials are taking place, and watch a few. Take some work with you to do during the inevitable down time.

Want to learn how to do a deposition, handle a closing, or negotiate a contract? Ask another attorney if you can follow along and see what they do.

Ask for criticism

Law offices are extremely busy places, and sometimes young lawyers don’t get the feedback they want or need from others in the firm. Don’t wait until your yearly review to ask how you’re doing. Ask for feedback when you’re working with another attorney on a project or case. Ask if someone can review a motion or document that you’ve completed and give you some pointers.

Find a mentor

Find yourself a mentor, either within or outside of the office. A mentor is someone that can guide you and whose experience you can learn from. You can have more than one mentor – perhaps a mentor that will help you with your technical legal skills, one that will help you with your business development or client relationships, and/or that will help you navigate the office politics, etc. Mentors don’t have to be lawyers, either – you can have mentors from other businesses or mentors that are family members, former law professors, or friends. Having someone who can help guide you will help you keep things in perspective.

Seek outside help

Two of the best things I ever did for my career were hiring a coach and setting up 'mastermind groups' with other lawyers and business people. Both coaches and mastermind groups can help you identify goals and take steps toward reaching them. Both are safe places to discuss new ideas and test them out, to vent when things get tough, and to learn even more from your experiences.

[Update: Check out Build a Solo Practice, LLC, where Susan Cartier Liebel hosts Blawg Review #142, in the form of a Letter to a New Lawyer, incorporating lots of other blogs that give advice to lawyers.]

When Is It Time to Hire An Associate?

Susan Cartier Liebel has written a couple of posts in response to a solo lawyer struggling with the decision about whether to hire an associate. The first post, "You Ask - I Answer" - I'm a Solo Growing By Leaps and Bounds. Should I Hire An Associate? includes not only the solo's circumstances, but some expert advice from the perspective of other lawyers, including Lisa Solomon and Carolyn Elefant, as well as from Susan herself.

The post generated a number of comments, and rather than keeping them as comments, Susan created a second post, entitled, Follow Up to 'I'm a Solo Growing By Leaps and Bounds. Should I Hire An Associate?'

The two posts are a good read for those trying to decide whether hiring an associate makes sense - economically and otherwise. Here is an excerpt from my response, contained in Susan's second post:

Before jumping to the conclusion that you need to hire another attorney, ask yourself the following questions:

• How much legal work is actually being performed during the day, and how much time is spent on other endeavors, particularly administrative and non-billable tasks?
• Are my processes and systems such that I am not 'reinventing the wheel' every time I create a document, write a letter, or perform a specific task within the practice?
• Am I re-using or modifying the work I've already done (whether legal work, forms, or business development) for other clients/matters, rather than starting from scratch each time?
• Are there billable tasks within the office that can be performed (either fully or partially) by someone other than an attorney?
• Do I have set procedures for how I perform specific tasks or handle certain types of matters within my practice? Is my practice structured in such a way that repetitive tasks are performed 'automatically' (by the use of technology or otherwise)?
• Do I have the people and management skills to be a boss and a leader?
• Do I have a vision for the future of my firm for my clients and my employees?
• Do I know how an associate would fit in to that vision?
• Am I making the best use of the available technology (hardware and software) at my disposal?
• Am I working with the clients and matters I most want to work with?
• Are my clients loyal clients who refer business to me and pay their bills in full and on time?
• Can I alter my fee structure or the fees themselves to bring in more revenue without hiring another lawyer? (In other words, can I continue to work at the same level but make more money?)

Of course, there are other issues to consider as well, and many of them are covered in Susan's two posts.

Why Do You Have Difficult Clients?

Unfortunately, sooner or later, most of us get caught with difficult clients. But there's no reason to get caught with the same kinds of difficult clients over and over, is there?

During a discussion this week about dealing with difficult clients, one lawyer related that she had clients who called her incessantly, leaving multiple messages on her machine after hours, even while acknowledging that they knew the lawyer wasn't in the office. These same clients would arrive at the lawyer's office unannounced and demand to be seen, regardless of the lawyer's other appointments or obligations.

Not surprisingly, the lawyer also said that these clients were 'usually' clients who hadn't paid anything up front or who had gotten a discounted rate. The lawyer ended her commentary by saying, "I charge the lowest fees in town."

We've all heard the saying that the definition of insanity is doing the same thing over and over and expecting a different result. From the account above, it sounds as if this lawyer is repeating the same mistakes and ending up with the same difficult clients over and over. If she wants things to change, what she needs to learn is not how to deal with difficult clients, but how to identify and avoid them.

Although some practice areas are more emotional than others, and some clients are more needy than others, there is no need for lawyers to put up with this kind of behavior. Here are some ways to avoid or eliminate the problem:

1. Establish guidelines and expectations with clients up front
I'm a big believer in client service, but I also think that we're responsible for 'training' our clients and setting expectations at the beginning of an engagement. Clients who have unrealistic expectations or who balk at the guidelines are probably clients we don't need or want. This lawyer  needs to discuss the parameters by which she will communicate with clients. If the client doesn't accept them, the lawyer should let the client walk out the door - she'd be eliminating future headaches.

It is important that clients know that their lawyer is responsive to them, and knows when to expect return telephone calls, etc. But it is also important for clients to be aware that if they want their lawyer's undivided attention when the lawyer is working with them, the same service is being provided to other clients.

At the beginning of each engagement, the lawyer needs to advise the client that they will not be seen in the office without an appointment, and that if an emergency arises, they must call the office first. The lawyer should tell the client the length of time within which the client is likely to receive a return call, and suggest that the client make a list of things to discuss with the lawyer rather than calling every 2 minutes unless it's a real emergency.

These are just some general guidelines - there is a lot more to setting expectations with clients up front, but a lawyer that ignores the basics does so at their peril.

2. Change the fee structure
The correlation between low-paying clients and poorly behaved clients is often overlooked.

As a general rule, discounting your fees is a mistake, unless you have a very specific strategic reason for doing so. Don't let a potential client 'bully' you into providing a discount. Most clients that ask for a discount are likely to be trouble, as the lawyer above has seen first-hand.

A client that doesn't want to pay your fees doesn't see the value of the services that you provide. There are exceptions to this rule, and sometimes the fault is with the lawyer for failing to communicate value, but whether it's the 'fault' of the lawyer or not, clients that want a discount are usually not likely to be your best clients. Often, they continue to nickel and dime even after the fees have been discounted, they delay payment or don't pay at all, they fight you, second guess everything, resist your advice, are overly demanding, or are otherwise 'difficult.'

Other suggested changes to this lawyer's fee structure include raising her fees and taking money up front from all clients. Clients that aren't willing to put their money on the line probably don't think what you're doing for them is important. Clients that think what you're doing is important will find the money.

Whether we like it or not, often we equate price with quality. Most people are willing to pay more for something (whether product or service) if they perceive that the more expensive item is higher quality. Therefore, most consumers, whether they're buying a product or legal services, are likely to assume that the lowest priced item in the market is also the lowest quality. If you know you're the lowest price lawyer around, you're more likely to attract these kinds of clients.

3. Fire some clients
Although she doesn't say so specifically, it sounds as if the lawyer above has a number of clients that treat her this way. There are times when these relationships can be salvaged by sitting the client down and having the conversation that should have taken place at the beginning of the engagement, outlining the responsibilities of each party to the transaction and possibly suggesting other resources that the client can turn to for services that the lawyer doesn't provide.

Unfortunately, it is more common that these kinds of clients cannot be 'rehabilitated,' and the lawyer is better off withdrawing from the representation as soon as possible. Far better to weed out these toxic individuals before they become clients.

4. Look in the mirror
This may be difficult to acknowledge, but if you're stuck with a number of clients who don't value your services and whose main concern is the fee, you should examine whether you've attracted those kinds of clients. Perhaps you have a disproportionate number of those clients because your message is that you're the cheapest lawyer, and that's your only point of differentiation.

If this lawyer is having the same experience over and over, something needs to change, and there's no reason for her clients to change if she doesn't take some action.

Is there really such a thing as 'work-life balance' for lawyers?

Yesterday I talked about how we define return on investment, or ROI. Today, I'm interested in work-life balance. I recently read somewhere (unfortunately, I don't remember where) that there's no such thing as work-life balance for lawyers. Once again, I wonder whether the problem is in defining what 'balance' really means.

I think that when we talk about work-life balance, many people think about a balanced scale, like the scales of justice - determine how much weight needs to go on each side of the scale in order to make the scale balance. Once you've figured it out, the scale stays balanced, unless you add or remove weight to one side.

I think about balance more like a tightrope walker - even when the tightrope walker is standing still, 'balanced' on the tightrope, he or she is constantly making adjustments to keep from falling off of the tightrope. The tightrope walker is never really still; there's no one magical point at which the tightrope walker is completely balanced.

Achieving work-life balance as a lawyer means constantly making adjustments or corrections so you don't fall off of the tightrope. Your life won't constantly be in balance. In fact, it can be said that your life is constantly off balance - but it's your job to keep making those adjustments so that you don't burn out or joepardize your relationships or lose an important client.

Sometimes being in 'balance' means you've got to over-correct, like the tightrope walker who makes a big movement to counteract a slip. Perhaps that means spending some extra time at work on a particularly important client or trial or transaction one day (or week or month). Or it might mean spending extra time with your family one week because you've been swamped with work. Or perhaps it means taking a 'mental health' day for yourself.

Staying in balance means recognizing the outside forces that can throw you off - like a stiff wind for the tightrope walker, or someone else jumping on to the tightrope - and making those constant corrections so you don't come tumbling down.

Considering Trying Something New In Your Practice for 2007?

Welcome to 2007!

With the holidays and myriad end of year responsibilities, the past two weeks have disappeared without any posts. But other bloggers have been busy posting on some topics that will be important in 2007. Here are just a few posts that are definitely worth taking a look at as you contemplate the direction your practice will take in the upcoming year:

Ron Baker over at VeraSage has a great post about how you know when you really understand value pricing. (Thanks to Michelle Golden for the tip about Ron's post). Ron talks about the moment where one lawyer really 'got it' about value pricing. In some ways it's like riding a bike - there's a definite moment where you really just 'get it,' but it isn't necessarily something that's so easy to explain to someone else.

Michelle Golden of Golden Practices talks about trust in your firm and how it affects client loyalty and client service. She refers to a post by another client-oriented blogger, Dan Hull, whose post is entitlted, "'Associate Reviews: "Dude, if you can't steal our clients, you're fired.'"

Michelle's most recent post also talks about value pricing and the use of change orders.

Chris Marston of Exemplar Law Partners has a great post on his blog, Inside the Firm of the Future, discussing misconceptions about and why lawyers go wrong with value pricing. Be sure to read the comments for a discussion on value pricing in a litigation setting. Marston' continues the discussion about value pricing in his most recent post which talks about finding ways to make value pricing work.

Another Marston post talks about compensation, and the disconnect between what lawyers agree are important behaviours and traits and what is actually measured and compensated.

You may not agree with everything these professionals have to say, particularly if concepts like value pricing and alternative compensation systems are new to you. But the marketplace is changing, consumers of legal services are changing, and lawyers are changing. We all want more from our practices and our lives. Perhaps it's time to look at something new for your practice. Or look at something old in a new way.

Networking: What do I say?

Here are two more related questions I recently received about networking:

What do I do if I'm at an event, or even a meeting with clients, and the discussion revolves around sports* (or something else I know nothing about)? How do I participate in the conversation?

I'm new at attending networking events. After I introduce myself, what do I say?

I get these questions a lot from lawyers who are new to networking or from women who often find themselves at a loss for what to say or how to participate when the conversation is dominated by a group the lawyer does not belong to (for example, where the conversation is dominated by men and the lawyer is the only woman, where the conversation is dominated by golfers where the lawyer is not a golfer, etc.)To me, the best way to combat this situation is to be prepared.

Here are some tips for preparation:

Know your audience
If you'll be attending a client meeting or other event in which you are aware of the other participants or attendees, do some homework about those people and their business or industry. What topics are 'hot' within that business or industry? What concerns or problems is that client/business/industry facing at present? Knowing your audience well may also give you clues about what topics are likely to be discussed so that you can do a little research before the meeting, if necessary.

Ask questions
Following the old rule that people like to talk about themselves, asking questions is a good way to keep the conversation flowing. Allowing others to talk and actively listening creates the impression that you're a great conversationalist - and you don't have to say much at all. Remember to keep the focus on the other person - ask questions about them, their business, their problems and concerns. If you know these individiuals personally and the situation warrants, you can ask questions about more personal topics, like recent vacations or family happenings. Around the holidays, you can always fall back on asking about holiday plans or special celebrations they may be attending this season.

Use your status as an outsider to gain entrance to the conversation
If the conversation turns to a topic you're not well-versed in, use your lack of knowledge to participate in the conversation. If you're not a golfer, try asking someone in the group (or the group as a  whole) what it  is about golf that they enjoy so much. Ask them how they got started in the sport. Ask how often they play, or how they manage to fit golf into their schedules, or how they use golf as a business opportunity.

Check out the local news
Current news is a good source of conversation. Do a quick review of the news on line. If you're visiting another city, pick up a local paper and review it for the local news. What is happening in the community that might relate to the business of those you're meeting with? Talk about an interesting story in the news, whether it relates to business or not. As a general rule, particularly when speaking with people you don't know well, stay away from religion or politics.

Ask for help
If you're attending the event with others, particularly others from your firm, let them know that you don't appreciate it when the discussion revolves around sports* (or whatever other topic is a problem for you - unless it's work-related) and ask them to keep the sports talk to a minimum so that you can participate as well. If you're a new lawyer, ask someone from the firm to introduce you and suggest some topics you think would be appropriate for discussion with the prospect/client, etc.

Notice your surroundings
Sometimes your surroundings provide good fodder for conversation. If you're in an office setting, you can strike up a conversation about the location of the office, the office setup, or the decor in the office. Decor and personal touches in an office provide clues about the hobbies, interests and personality of the office's occupants that can be good conversation starters.

Change the subject
If all else fails, especially if you're in a group of people whom you've met before, if you're feeling frozen out of the conversation, try changing the subject. But make sure you're ready with a new topic to get the ball rolling. Alternatively, if you're at a large event, you may want to polietly excuse yourself and find another group or individual to talk to.

*Please don't take this as an assumption that all women know nothing about sports - it's just an example, and one I'm frequently asked about.

Networking for Shy People

Last week's networking presentation to the Women in Law Committee prompted several questions which I often hear from women, although the principles apply equally to men. Here's one example:

What networking tips do you have for someone who is shy?
For someone who isn't naturally outgoing, networking and other events can be especially daunting - and even painful. This is particularly true when you're new to a group or you're attending an event for the first time and everyone else seems to know each other. They're greeting one another like old friends, and perhaps sharing jokes or stories that an outsider can't relate to. How do you break the ice? Here are some ideas:

Arrive early. When you arrive early, you're not as likely to be intimidated by a room full of people who are already talking, laughing and sharing inside stories. If you're one of the first to arrive, chances are that you'll have an easier time striking up a conversation with the other earlybirds. Don't be afraid to tell them you're new to the group and that you're looking forward to meeting other people.

Seek out the host or group leader. Introduce yourself to the host or group  leader. Tell them that this is your first time attending, and that you don't know anyone. Ask them if they can introduce you to a few people in the group.

Bring a friend. If you're uncomfortable talking about yourself or introducing yourself to others, bringing a friend can help ease the pain. Let your friend introduce you and you introduce her. It's often easier to talk about someone else and what they do than it is to talk about yourself. But be careful - avoid the trap of talking only to your friend and ignoring the rest of the group. That defeats the purpose of attending the event.

Look for other outsiders. Scan the room for other people standing alone or looking as lost as you are. It's usually more comfortable to approach someone standing alone than it is to try to 'break in' to a group that's already engaged in conversation. Chances are that you aren't the only one who is shy or uncomfortable, and teaming up with someone else can make things easier (see 'bring a friend,' above). Work the room together and introduce one another.

Head for the bar or the food. This suggestion isn't meant as a tactic to hide out - it's meant as a conversation starter. Again, for shy people, approaching one person is usually easier than approaching a group. Standing on line at the bar or the food table is a perfect opportunity to strike up a conversation with the person in front of or behind you in line.

For more suggestions on how to avoid being a wallflower at networking events, see my post, "If You're Going to Attend, Don't be a Wallflower"

How can I set ‘flat’ or ‘value based’ fees with a litigation practice?

Litigators are the attorneys who seem to be most set against billing on any arrangement other than hourly billing or contingent fees. But alternative, ‘flat’ or ‘value’ billing can be done for litigation, too. In those cases, the fees could be established in phases, or conditioned on specific events.

You've got to give clients an idea of what it will cost if there are unforeseen circumstances - and define what those ‘unforeseen circumstances’ might include.

For example, although I’ve never practiced matrimonial law, I’ve been told by a number of matrimonial lawyers that clients will often come in requesting an ‘uncontested’ divorce. But as the lawyer begins to get involved in the case, it appears that the only thing that is truly uncontested is that the parties no longer wish to remain married – everything else, from custody to finances, to marital assets, pensions, property, and even who gets what CDs is hotly contested.

Under those circumstances, the smart matrimonial lawyer would have an in-depth conversation with every potential client specifying what actually constitutes an uncontested divorce, and quoting a fee. The lawyer should then also discuss some of the other issues that are likely to arise and clearly advise the client that any such issues that arise will increase the fee. The fee agreement should specify exactly what is included in the fee and should state clearly that any additional actions to be taken by the lawyer outside of what is specified in the agreement will require an additional fee.

Many matrimonial lawyers tell me that the cost of a divorce is often determined by what the parties do, rather than what their lawyers do, and tell them that even if they are ‘reasonable, if their spouse wishes to contest things, the cost will be higher. Lay out for them what circumstances would require a higher fee - i.e. protracted litigation, many court appearances, motions, etc.

There are ways to do litigation on a flat fee basis, or modified flat fee basis, if you set expectations properly with the client up front. The flat fee includes x,y and z, but anything additional or not anticipated by the original agreement is extra, and subject to a change order and an additional fee. Essentially, what you're doing is defining the scope of the engagement changes, the fee must also change.

For example, you could offer a flat fee for litigation that includes a certain number of court conferences, a certain number of depositions, and ‘basic’ discovery demands and responses, but specify in your agreement that anything above and beyond that is additional. Setting fees like this is a skill and it needs to be developed over time, and you will probably need to test and go through some trial and error before you get there, but I think it’s worth pursuing.

You may be surprised at how quickly clients embrace a value pricing model. As discussed in some of my other posts, clients that have any experience with lawyers are generally put off by the idea of hourly billing and the inherent conflicts it creates. Offering them a different billing arrangement in which they find out the fee before the work is done, rather than after, can have a surprising effect on the attorney client relationship.

Should I discount my fees?

Should I discount my fees in order to bring new clients in the door?
First, I'll start by saying that if your fees are based upon value to the client, and determined on a case by case basis in consultation with each client separately, the issue of 'discounting' may never become an issue at all.

That being said, even attorneys that use billing methods other than hourly billing sometimes find themselves grappling with the issue of discounting. I have had personal experience with this, even when establishing fees with certain clients based on value to them - whatever the fee is, they want a discount. (This may be a red flag that this isn't the client to deal with).

Lawyers that have more of a 'commodity' practice may also consider discounting their fees, particularly when starting out, attempting to break into a new practice area or a new market, etc.

I don’t recommend discounting your fees. Once you ‘discount’ your fees, clients and possibly potential clients will know that you ‘can’ do the work for the lower fee, and in their mind, the discounted fee will become your actual fee. Discounting a fee for a client often brings nothing but headaches and trouble.

Whether we like it or not, most times we equate higher price with higher value. We think if something is more expensive, it must be ‘better.’ Since that’s the way most people think, discounting your fees- or charging too little - de-values the service you provide in the eyes of your clients and potential clients. Often, if the fee is too low, people will wonder what’s missing from your services or whether you’re experienced or knowledgeable enough to handle their case.

Rather than giving a discount, consider giving something extra, like a 'bonus' – throw in a free ‘something’ – free risk assessment, free additional consultation, free review of something, etc. Make it something that has value for the client but isn’t really cutting into your fees. What you offer need not even be directly related to the service that you are providing for the fee. And always be sure to articulate the value of the services that you’re providing for your client within the fee.

For example, if you want to do work for small businesses and become their ‘go to’ lawyer, you could provide a risk assessment as a ‘freebie’ as part of your incorporation/startup package (although you must still make sure that the fees you’re charging are making you a comfortable margin for your services). This kind of bonus has the added benefit of educating the client and possibly showing them the value of preventative legal representation.

Whenever you give something away for free, make sure you indicate the value of the service you’re ‘giving away.’ In other words, if you’d do a risk assessment on its own for $1000, your materials should clearly state that the package includes a “risk assessment worth $1000” or similar language.

Although I don’t generally condone discounting, there are certain times when you can discount your fees for certain clients, at specific times, or for defined purposes. But those discounts should be part of your overall marketing and pricing strategy. They should only be provided on an individual basis or for a particular purpose, and only after special consideration.

For example, you might want to take on a particular case for a reduced fee if it will be a significant case that will help build your reputation or credibility, or provide experience you would be unable to obtain under other circumstances. You might consider discounting your fee for a particular charity, cause or individual in need.

Many lawyers give discounts to clients on a regular basis without even realizing it, and without keeping control over those discounts. Are your clients paying your bills in full and on time? If not, you’re not getting the rate you think you’re getting – you’re actually discounting your fees. The client that always pays late and requires constant reminders before they’ll pay is costing you money – both in the real sense of having to wait for your fees, and in the time, effort and aggravation involved in chasing down payments.

If you determine that a particular case is worth taking for a reduced fee, or even no fee, that’s your prerogative. But make sure that you can articulate a sound business reason for giving the discount, and make sure that you’re making the decision – don’t let your clients make it for you by simply not paying.

How do you use flat fees?

How do you use flat fees, other than basing them on estimated hours?

I find it interesting that lawyers seem to have such a hard time wrapping their minds around the concept of setting flat fees for their services, but seem to have no difficulty with the idea of an hourly billing rate. After all, how is the lawyer determining what the hourly rate should be? Some lawyers charge $150 an hour, and some charge $400 an hour. What are those rates based on?

Lawyers think that under an hourly system we’re charging only based upon something that's easy to quantify - the number of hours required to complete a task, but that’s an illusion, because the hourly rate must be set first - and that rate must be based on something else.

Presumably, the lawyer’s experience, results and training all factor into the equation when setting an hourly rate. Lawyers that are in higher demand can command higher rates. Lawyers that establish a reputation for themselves and their firms can command higher rates. Lawyers that practice in specific geographic areas may be able to command higher rates. But the only reason that any of these factors affects the ability to charge a particular fee is because the client believes that they add value to the engagement. Therefore, MOST importantly, lawyers that can articulate the benefit to their client can command higher rates.

The big problem with hourly billing is that the length of time it takes to complete a task isn’t related in any way to the value of the service that’s provided. Indeed, it can reliably be argued that most clients would prefer that their legal matters be completed in less time – and therefore that a lawyer who can complete the matter in less time should be paid more.

The same variables that go into determining an hourly rate will factor into a flat fee scheme - although they may be weighed differently for different clients. One of the biggest differences between using flat fees or value-based billing and hourly billing is that the fee isn’t dependent upon the length of time it takes to complete a certain matter or task. As others have said, under an hourly system, the perception is that you're selling time. Using alternative billing is one way to return the focus to where it should be - selling your expertise.

Pricing is a skill - learn to articulate value
Pricing, or setting fees, is a skill that takes time to develop. There is no one ‘right’ way to price your services, and there are many variables that will affect how you price your services. In order to price effectively, you must be able to articulate the unique value your firm brings to its clients – what does your firm provide that no one else does? What benefits is the client receiving, and how important are those benefits to the client?

Once you can articulate the value your firm provides and the benefit the client will receive as a result of your legal representation, you’re on your way. But you’ve still got a lot of work to do before you can quote a fee to a client.

Getting detailed information and setting expectations
Much of the reason lawyers still charge by the hour is because they don’t like change, and because billing in any other way requires a lot more thinking and a lot more work up front. It requires more of a conversation with clients about their expectations than most lawyers are used to.

Often lawyers take on a case without fully investigating or exploring not only the facts surrounding the matter, but the client's specific expectations and values. One advantage of changing the pricing structure is that these longer and more detailed conversations will likely help lawyers pre-qualify clients better, alert them to potential problems earlier, and help them weed out ‘nightmare’ clients before they become a headache.

If you’re experienced in handling a particular type of matter with a particular type of client, you should have a good idea which variables will make an engagement more complicated, more stressful for you and for the client, which ones require specific skills or expertise, etc. You should also have a good idea which variables are important to which types of clients. All of those variables will be reflected in the price you quote for those services. This is very likely to differ from client to client.

You have to do a good bit of digging and really fleshing out the issues with every new client at the outset. That way, you can get a good idea what you might be up against. But even then, you need to let the client know that there are other issues which may arise which would affect the fees - including the attitude and behavior of the other side, which is often very different than the client's initial perception. Provide your potential clients with examples of the kinds of variables or contingencies that are likely to increase (or decrease) the fee.

Some pricing changes are required due to the client’s failure to cooperate, failure to provide information, or a client not being honest with the attorney. Your fee agreement should clearly state that such changes are not considered within the scope of the estimate (and consider your ability to end the engagement on those bases as well).

Frequently, lawyers are afraid to quote clients a ‘high’ price for fear that the client will automatically reject them. But the reality is that lowballing a client and estimating low on purpose creates a poor attorney-client relationship and is bound to mean more time and money spent chasing clients for fees later. Clients that are truly shopping only on price are not the best clients to have anyway. If you can articulate the value that supports your fees, the better clients will be willing to pay for it. And setting the fee up front eliminates the need to chase clients later to get them to pay your bills. Lawyers that quote clients a low fee without explaining the scope of the work that is encompassed in the original fee, or variables that can increase the fee, are setting themselves up for trouble.

Clients are willing to pay a premuim if they perceive that they are receiving value in exchange for their money. If you can pinpoint what the client values, articulate your services in terms of those values, and deliver on the promises that you make, you will find that clients are willing to pay up front for your services.

Many lawyers assume that they can’t account for variables or unforeseen circumstances if they use a fee structure other than billing by the hour. But with a little planning, you can account for those variables.

Using value billing or ‘flat’ fees doesn’t have to mean that you quote one price for the entire engagement at the outset when you may not have complete information. But there are a number of ways to overcome this obstacle.

Some methods for pricing:

1. Provide an estimate or price range, giving a high and low based on your experience (but be careful to specify that this is just an estimate, and be sure you've given yourself some 'wiggle room' on the low end - and be mindful that some clients will assume that the low is what they are going to pay);

2. Price the project in stages, so that you can adjust your fees as the matter progresses and you have more information;

3. Be very specific in your initial fee agreement about what your price quote covers, and provide examples for clients of items that will require an additional fee. For example, if you are handling what appears to be a ‘routine’ litigation case, let’s say that you quote the client a fee of $5,000. The fee is based on the information provided by the client at the outset for a matter that appears to be routine – only two parties, no non-party witnesses, limited discovery, etc. However, as the matter progresses, if additional parties are added to the suit, additional or extensive discovery or investigation becomes necessary, your fee will be adjusted accordingly.

Remember also that value pricing means pricing your services based upon the value of those services to the client, first and foremost - so you'll have to articulate the changes in your fees in terms of the benefits to the client and what the client thinks is important.