May 24, 2013

Finding Efficiency in a Solo or Small Firm

One of the hardest parts of being a solo attorney is all the non-lawyering tasks that have to be accomplished on a day-to-day basis. What’s worse is we can’t bill clients for that time. It’s not just me that sees this as a problem for solo lawyers: LexisNexis recently released a survey indicating solo and two-attorney firms work more hours per hour billed to a client than attorneys in any other sector. Disregarding the numerous methodology issues raised by this survey (and there are enough for an entire additional post), this survey raises some interesting questions about how solos can become more efficient.

There are dozens of interesting thoughts from this article, but I’m going to hone in on two in particular: the use of legal staff and the use of technology.

Using Staff

One plausible explanation given for smaller firms being somewhat less efficient is that the larger a firm is, the more they will be able to delegate non-legal tasks to non-attorney staff:

“Bigger law firms often have armies of support staff and sophisticated billing systems that boost efficiency and let ‘attorneys be attorneys,’” said Loretta Ruppert, senior director of community management for LexisNexis Legal  and Professional.  “But at the smaller end of law, they typically wear multiple hats.”

On one hand, this is a good point. Many solo attorneys answer their own telephones, most probably write or manage any ad campaigns they might do, and, for many, a specialized staff person to do the accounting and taxes is a pipe dream, so the attorney does it.

On the other hand, management takes time. Somebody has to tell the support staff what to do and be accountable for their work. And until the Rules of Professional Conduct change, those tasks can’t be delegated to a non-attorney management wiz kid. Given how poor attorneys generally are at grasping management theory and technique, I wonder how it’s possible that any segment of firms bills 92 percent (like the 11-20 attorney “medium sized” segment of the survey) of their attorney time to clients while actually keeping the office operating.

Even assuming a solo lawyer can perfectly manage staff, there’s an additional issue unique to solos. Many solos have practices with fluctuating books of business that bounce back and forth between the break-even point for making staff worthwhile. Considering the effort and expense that goes in to hiring and training an employee; it’s probably wise to err on the side of caution rather than efficiency in the calculus of whether to add staff. That’s before even considering the human cost of hiring an employee and then having to cut him or her loose after six months because business drops off.

While technology, such as remote receptionists or cloud-based billing software, can reduce the amount of time an attorney spends on overhead, that comes with its own difficulties.

Using technology to be more efficient

I am a very pro-tech guy, but this comment about how lawyers use technology shows considerable cluelessness:

“It’s more an indication of the way they use technology,” Ruppert said. “What we have found is that law firms are bucketed into three different areas: traditional, progressive, and low-tech firms.”

While “technology” can certainly make a law firm more efficient, it also takes considerable effort. Presumably, the folks going to the ABA TECHSHOW are writing that off on their taxes and they hopefully aren’t billing that to clients, so it’s unbilled work. In addition to that, a tech-savvy lawyer needs to read technology blogs and magazines, and probably tries out a number of products that don’t work well throughout the year.

While this may be fun for some, it is still work that a lawyer can’t bill! The comment from Ruppert is basically a caricature of LexisNexis: technology (no specifics) will help you soak your clients for more money since you can work the same amount and bill more.

In the real world, what technology can do for law offices is help them provide their clients with better service. Technology can provide more accurate and detailed billing statements through Clio, better availability through phones that send email, and make lawyers more efficient by saving money on paper and paper-related machines (paperless office), and phone service (Skype and Google Voice).

Keeping up with the latest legal technology will make an attorney more efficient, but it probably won’t make that attorney bill a greater percentage of his or her day. It might just make a client a little bit happier though. Isn’t that the greatest payoff, both personally and financially?

Chris Mommsen is a criminal defense attorney in Denver. He contributes to the CBA’s SOLO in COLO blogwhere this post originally appeared on June 22, 2012.

Understanding Your Avvo Rating: How It’s Calculated and Why You Should Care

Avvo is a free online directory of lawyers that the public can use to search by state and practice area. You may be asking yourself, isn’t that basically the business White Pages, or the bar association’s Find-A-Lawyer directory, or Martindale-Hubbell revisited? Pretty much. A lawyer’s Avvo profile is essentially an online résumé or portfolio that lists achievements, publications, biographical information, and, if the lawyer is so inclined, photographs and videos of his or her choosing.

Unlike those more, ahem, venerable (or stodgy, depending on your perspective), ways to find a lawyer, lawyers seem to absolutely hate Avvo. It raises the ire of lawyers, in part, because Avvo represents a visible credibility check. A lawyer’s Avvo profile frequently will show up in the top 10 Google results, and Avvo crawls state ethical records and posts any run-ins with the Office of Attorney Regulation. This has resulted in several lawsuits from lawyers with a rap sheet.

That’s not the greatest criticism though—most of our fellow professionals keep their noses clean. The greater complaint is that, along with your fluffy profile, Avvo posts a rating out of 10.

According to the site: The rating is calculated using a mathematical model that considers the information shown in a lawyer’s profile, including a lawyer’s years in practice, disciplinary history, professional achievements, and industry recognition.

The term “mathematical model” is something I tend to associate with being what I would be unable to calculate. Avvo also claims their model is proprietary, which leads me to believe that it is a formula for some amazingly strong, light, and beautiful polymer—or something. With those considerations in mind, I set about cracking their formula by adding and subtracting credentials from my profile.

Essentially, every lawyer starts at 5.6. The “formula” is this: for every credential added in a different category, an attorney gets three tenths of a point. Peer reviews are worth the same. Publications in the same periodical are discounted a bit. That’s basically it. Add three publications and a presentation, and, by their formula, you are now a 6.9-rated lawyer.

There is a caveat to the site: The Avvo rating is not intended to be the only thing you use in choosing a lawyer.

Yeah. Right. Just like how Ebert’s thumb or Pitchfork’s numerical rating is only a small consideration in figuring out what movies to watch or music to buy. It’s absurd to think that legal services can and should be rated this way, but the Avvo profile is there, whether or not you claim it.

The best solution is just to spend a few minutes filling out the profile. We already have LinkedIn, Facebook, Justia—what’s one more? It really is nothing more than a summary résumé. In the event that a lawyer doesn’t choose to claim and fill out the profile, his or her information still appears on the website, along with any ethical concerns. However, an ethically clean but otherwise unknown (at least, to Avvo) attorney is not assigned a rating and is tagged as “no concern.”

Although building your Avvo profile is the practical solution—and it is a bit silly to get worked up about some website—something still rankles about the idea that the quality of a lawyer’s services can be determined by adding and subtracting résumé lines. To the extent that consumers are buying what Avvo is selling, complaining about it isn’t going to help. It’s up to us to manage the public perception of our profession relationships and public service.

Chris Mommsen is a criminal defense attorney in Denver.

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2013-05-24 05:11:49