The Lawyer's Guide To Increasing Revenues: Unlocking the Profit Potential in Your Firm

by Greene, Arthur G.

• ISBN13: 9781590314227
• ISBN10: 1590314220
• Edition: CD
• Format: Paperback
• Copyright: 2005-04-07
• Publisher: Natl Book Network

Summary

"Are you ready to look beyond cost-cutting and toward new revenue opportunities? Learn how you can achieve growth using the resources you already have at your firm. Discover the factors that affect your law firm's revenue production, how to evaluate them, and how to take specific action steps designed to increase your returns. You'll learn how to best improve performance and profitability in each of the key aspects of your law firm."--BOOK JACKET.

Table of Contents

Preface	xi
Acknowledgments	xiii
About the Author	xv
PART I Think Revenue	1	(26)
Develop a Revenue Mind-set	3	(6)
How to Make a Big Difference	3	(1)
Why Cost Approaches Fail	4	(1)
Places to Look for Revenue	5	(2)
Other Ways to Improve Revenue	7	(1)
Revenue, Revenue, Revenue	7	(2)
Examine the Financial Indicators	9	(10)
Profit/Expense Ratio	10	(1)
Revenue per Lawyer	11	(1)
Profit per Partner	11	(1)
Billing Realization Rate	11	(1)
Aged Work-in-Process	12	(1)
Billing Turnover Rate	12	(1)
Collection Realization Rate	13	(1)
Aged Accounts Receivable	14	(1)
Collection Turnover Rate	14	(1)
Billable Hours by Timekeeper	15	(1)
Billings	15	(1)
Cash	16	(1)
Volume or Price	16	(1)
Establishing the Baseline	17	(2)
Find Maximum Capacity	19	(4)
Lawyers and Paralegals	19	(4)
Create a Scorecard	23	(4)
Billing Realization	24	(1)
Collection Realization	25	(1)
Hours	25	(1)
Billing and Collection Turnover Rates	25	(1)
Setting the Goals	25	(2)
PART II Learn the Secrets of Achieving Better Revenue	27	(20)
It All Starts at the Beginning	29	(4)
Client Intake	30	(3)
Find the Magic: Payments by Return Mail	33	(4)
The Consumer Client	34	(1)
The Business Client	35	(1)
Client Communications as a Tool	35	(1)
An Art, Not a Science	36	(1)
Understanding Twenty-First Century Leverage	37	(6)
The Collapse of the Pyramid	37	(1)
Leveraging Expertise	38	(1)
Value-Based Fee Methods	38	(1)
Technology	39	(1)
Leveraging with Paralegals	40	(1)
Move into the Twenty-First Century	41	(2)
Let Your Clients Do the Marketing	43	(4)
Time, Money, and Energy	43	(1)
Rule 1: Protect Existing Client Relationships	44	(1)
Rule 2: Make It Easy for Existing Clients to Deliver More of Their Business	44	(1)
Rule 3: Distinguish Your Firm from the Others	45	(1)
Rule 4: Make Existing Clients Proud to Refer Clients to You	45	(2)
PART III A Step-by-Step Guide for Improving Revenue	47	(58)
Set in Place the Key Ingredients to Improved Revenue Flow: The Client Intake Process	49	(10)
Step 1: Know Which Clients the Firm Wants	49	(2)
Step 2: Get It Right at the Initial Client Meeting	51	(2)
Step 3: Obtain a Fee Agreement and Fee Deposit	53	(2)
Step 4: The Reality Check	55	(1)
Step 5: Confirm Client Expectations	56	(3)
Offer Value-Based Fee Agreements	59	(12)
Step 1: Know the Rules	60	(1)
Step 2: Learn Some History	60	(1)
Step 3: Understand the Components to a Fair Fee	61	(1)
Step 4: Consider the Three Basic Alternative Billing Methods	61	(3)
The Fixed Fee Method	61	(1)
Contingency Method	62	(1)
Retainer Fee	63	(1)
Step 5: Consider Variations of the Basic Methods	64	(2)
Blended Hourly Rates	64	(1)
Hourly Rate with Minimum and Maximum Charge	65	(1)
Budgeted Hourly Fees	65	(1)
Segmented Fixed Fee	65	(1)
The Defense Contingency	66	(1)
Step 6: Consider Combination Fee Methods	66	(2)
Combination Flat Fee and Contingency	66	(1)
Combination Discounted Hourly Rate and Contingency	66	(1)
Combination Hourly Fee and Flat Fee	67	(1)
Step 7: Find Opportunities to Move Away from Hourly Billing	68	(1)
Identify Repetitious Document Preparation	68	(1)
Understand the Cost of Providing the Service	68	(1)
Identify Small Projects That Can Be Handled for a Fixed Fee	69	(1)
Practice Mapping Out a Case Plan at the Outset	69	(1)
Step 8: Offer Clients a Choice of Billing Methods	69	(2)
So, What About Hours and Rates?	71	(8)
Billable Hours	71	(2)
Step 1: Determine Appropriate Billable Hour Expectations	73	(1)
Step 2: Make Lawyers and Paralegals Accountable	73	(1)
Step 3: Adopt Clear Time Recording Policies	74	(1)
Step 4: Evaluate the Secretarial Support Available to the Lawyers and Paralegals	75	(1)
Step 5: Take a Look at Administrative Support	75	(1)
Rates	76	(3)
The Cobb Value Curve	76	(2)
Become the Go-To Lawyer	78	(1)
Consider Variable Rates	78	(1)
Keeping Clients Thankful	79	(10)
Step 1: Adopt a Client-Centered Approach to the Practice of Law	79	(1)
Step 2: Set Standards for Client Communications	80	(2)
Step 3: Use the Billing Process to Communicate Value	82	(2)
Step 4: Manage the Client's Expectation of Cost	84	(2)
Step 5: Recovery Issues	86	(3)
Technology: Finding the Profits	89	(6)
Step 1: Make Sure the Firm's Technology Is on Sound Footing	90	(1)
Step 2: Take a Look at the Firm's Document Production Practices	91	(1)
Step 3: Find Places to Deliver Standard Service Packages	92	(1)
Step 4: Look for Other Places to Develop and Offer Value-Based Fee Methods	92	(3)
Paralegals: Expanding the Role	95	(6)
Step 1: Hiring Real Paralegals	95	(2)
Step 2: Evaluate the Current Paralegals	97	(1)
Step 3: Evaluate the Work	97	(1)
Step 4: Price the Paralegal Services	98	(1)
Step 5: Set Production Goals for the Paralegals	99	(1)
Step 6: Provide Paralegals with Adequate Support	99	(2)
If All Else Fails: Using the Band-Aid®	101	(4)
Step 1: Adopt a Law Firm Collection Policy	101	(2)
Step 2: Make the Collection Policy and Procedure a Priority	103	(1)
Step 3: Other Approaches	104	(1)
PART IV Making It Work	105	(46)
Taking the First Step . . . and Another Step . . . and then Another . . .	107	(2)
Final Thoughts	109	(42)
APPENDICES
Appendix A-1 Profit and Loss Statement	111	(1)
Appendix A-2 Billable Hours	112	(1)
Appendix A-3 Billing and Billing Realization	113	(1)
Appendix A-4 Cash and Collection Realization	114	(1)
Appendix A-5 Origination Credit	115	(1)
Appendix A-6 Aged Work-in-Process	116	(1)
Appendix A-7 Aged Receivables	117	(1)
Appendix A-8 Firm Pipeline Report	118	(1)
Appendix A-9 Balance Sheet	119	(1)
Appendix B Financial Indicators Worksheet	120	(2)
Appendix C Revenue Capacity Worksheet	122	(1)
Appendix D The Scorecard	123	(1)
Appendix E Client Intake Policies and Procedures	124	(2)
Part I: The Firm's Areas of Practice	124	(1)
Part II: Initial Client Meeting	124	(1)
Part III: Fee Agreements and Fee Deposits	125	(1)
Part IV: The Reality Check	125	(1)
Part V: Confirming the Plans	125	(1)
Appendix F Rule 1.5 of the ABA Model Rules of Professional Conduct	126	(4)
Appendix G-1 Law Firm Plan for Implementing Value-Based Billing: Document Preparation	130	(2)
Appendix G-2 Law Firm Plan for Implementing Value-Based Billing: The Fixed Fee for Small Case	132	(3)
Appendix G-3 Law Firm Plan for Implementing Value-Based Billing: Transactional Matter	135	(2)
Appendix H Sample Billable Hour Policy	137	(1)
Appendix I Sample Time Recording Policy	138	(1)
Appendix J Variable Hourly Rate Worksheet	139	(1)
Appendix K Sample Client-Centered Service Policy	140	(3)
Part I: General Principles	140	(1)
Part II: Telephone Communications	140	(1)
Part III: Correspondence	141	(1)
Part IV: Communications Through the Billing Process	141	(1)
Part V: Managing Client Expectations	141	(1)
Part VI: Recovery	142	(1)
Appendix L Sample Paralegal Hiring Policy	143	(1)
Appendix M Paralegal Profitability Worksheet	144	(2)
Appendix N Paralegal Billing Guidelines	146	(2)
Appendix O Sample Law Firm Collection Policy	148	(1)
Appendix P Planning Worksheet	149	(2)
Resources	151	(2)
Index	153	(4)
About the CD	157