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What does the Cape Hatteras Lighthouse on the Outer Banks
of North Carolina have in common with the legal profession?
They both have been fighting for survival. Due to the
shifting of ocean currents and the erosion of the once-wide
beach that had protected it since its construction in
1870, the tallest lighthouse in North American was in
danger of crumbling into the sea. It was eventually moved
one-quarter mile inland to a new—and hopefully secure—location.
Similarly, events and circumstances—some
beyond anyone's control, but others firmly within the
grasp of attorneys themselves—are threatening
to erode the foundations of sole and small-firm practice.
For example, lawyers antagonize clients to the point
where they file more complaints with state bar associations
than there are lawyers in the state. In California in
1996, there were 130,000 attorneys and more than 140,000
telephonic complaints to the Bar. Nevada, Florida, and
other states have similar statistics.
And some state bars have lost the confidence of their
members. California is the first state to have the mandatory
Bar status examined under the political microscope.
Former Governor Wilson vetoed a bill to approve the
Bar's dues and sent a stinging message saying that the
Bar had failed its mission. This left the State Bar
of California without money to operate, and the disciplinary
system was closed. Fortunately, a dues bill was enacted,
and the California State Bar is recovering -- slowly.
But attorneys in Texas and other states have also begun
to question the mission of the Bar.
In addition to the loss of confidence from clients,
the rising complaints by consumers and now the loss
of trust in lawyers' own professional organizations,
Congress took a little bit more from the plate of attorneys'
performance of legal services when it passed a Taxpayer's
Bill of Rights. One of the provisions in this bill extends
to accountants a limited privilege (attorney-client
privilege) when representing clients before the Internal
Revenue Service. This privilege was previously the hallowed
territory of attorneys in representing clients. However,
many clients perceive that accountants can perform services
for them just as well, if not better, at a lower cost.
While one can technically argue that a responsible client
would have a disincentive to engage an accountant since
this new privilege does not extend to criminal and other
matters beyond the appearance before the Internal Revenue
Service, attorneys are nevertheless faced with more
intrusion into traditional legal practice.
In some kinds of practices, professional services are
offered under an umbrella organization that provides
accounting, legal, financial and other services. It's
a "one-stop shop." Real estate matters are
now being handled by brokers with pre-printed forms
for offers and acceptances. Employee benefits consulting
firms prepare pension and profit-sharing plans without
the need of attorneys. Environmental consultants frequently
never involve attorneys. The list goes on and on. Since
the Enron and Arthur Andersen debacles, this phenomenon
may not be in the public eye as much, but it is far
from being over.
Can we survive as sole and small firm practitioners?
Can attorneys endure this onslaught on the profession?
I believe the answer is a resounding "yes!"
Whereas the lighthouse had only two choices: stay where
it was and be washed out to sea or allow itself to be
moved to a safer inland location, the legal profession
has many alternatives.
First, lawyers need to address the client's concerns
in a more effective and meaningful way than they've
done in the past. Attorneys must become more client-focused.
It's not important what you can do, what you want to
do, or what you think the client wants. The only thing
that matters is what the client actually wants. That
means that you must start by talking with your
clients, not just to your clients. Really listen
to your clients—don't just hear them.
Clients want communication with their attorneys and
dedication to their concerns more than they want cheap
fees. In fact, client focus groups indicate that clients
understand that they must pay for their legal representation
and they are willing to do so—provided the attorney
is giving them the type of service they desire. So ask
your clients about the type of service they're looking
for. Implement their requests, and tell them you are
doing so.
Each client wants to be treated differently. That means
you must be flexible; your staff must "buy-in"
to this process and become part of an effective team
of "service providers." After all, without
the client, there really is no need for the lawyer—or
the staff.
In addition to talking with clients about how they
would like to be served, there are specific steps you
can take that will endear clients to you. Here are some
examples.
- Prepare a budget for the client's approval.
- Send short, easily understood status reports regularly
to the client.
- Visit the client's site.
- Be realistic in your evaluations of the process
and merits of the client's matter.
- And, of course, return telephone calls promptly.
Clients appreciate good service and even refer more
clients to those who treat them well. But, most importantly,
the client will look to an attorney as their lead counsel;
counsel in the original sense of being the first person
to go to with a problem or challenge. And then you,
the lawyer, will resume your traditional role of servicing
the needs that you are competent to handle and bringing
in your network of experts and advisers to perform the
other tasks requested.
This is the way that attorneys can survive—and
even flourish—as individuals and as a profession.
We can progress and prosper by recognizing the importance
of the client and the desire of the client to be treated
with respect and care.
Edward Poll, J.D., M.B.A., CMC,
is a coach to lawyers and certified management consultant
who shows attorneys and law firms how to be more profitable.
Ed's latest book is Collecting
Your Fee: Getting Paid From Intake to Invoice
(ABA 2003); he is the author of Attorney &
Law Firm Guide to The Business of Law, 2d ed.
(ABA 2002); Secrets of the Business of Law: Successful
Practices for Increasing Your Profits. To make
suggestions or comments about this article, call (800)
837-5880 or send an e-mail to edpoll@lawbiz.com.
You can also order a free e-zine or visit Ed on the
web at www.lawbiz.com.
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