Social Media Update

One of the most popular and heavily visited blog posts I've published is the summary of what social media I read, visit and engage on a daily basis. Those who know me are quite aware that I incorporate social networking in my professional and personal life, and the most common question I'm asked is, "How do you possibly find the time?" Well, simply put, I make the time. I've always felt that weaving together disparate points of information, connecting dots that others don't see, has given me a strategic advantage in my professional life because occasionally I see trends and opportunities before others. I also find value in connecting people when such a connection benefits both parties. And so I read a lot, from many sources. I'm not as consistent as I once was, but I try to spend a little time every day, usually in small doses throughout the day, staying on top of news and developments in my field, updating and sharing some of these tidbits with my networks, and skimming what others in my network have shared. When viewed in the aggregate, it can be a daunting and exhausting effort to stay on top of it -- it's not uncommon, for example, to open my Google Reader on a weekend after a busy week and find over 1,000 unread items.

But I learned a lesson long ago that has helped me immensely. I have always been reluctant to start a book or magazine unless I'm prepared to finish all of it, which means I need both the time and the inclination to dive in fully committed. But I eventually learned that this is a dumb rule. So now I happily pick up a magazine and read the one or two or ten articles that interest me rather than read it cover to cover. If I'm three chapters into a book and I simply can't muster the energy or interest to continue, it goes on the shelf. I no longer feel any guilt putting something down and moving on. This has freed me to skim a large volume of sources, selecting those which interest me for further investigation, and literally scrolling past the rest.

But an unexpected downside of incorporating a high volume of reading materials into my daily life is that I'm more desensitized to what others may find unusual or interesting because when I've seen twenty references to some tidbit in fifteen different sources over the course of two weeks, it may appear commonplace to me when in fact it's still on the fringe and weeks (or months or years!) away from common knowledge. For example, I vividly recall conducting a Legal Project Management workshop for a group of law firm partners a couple years ago, and not only were they unaware of this growing trend, they didn't even know what the terms meant. I had forgotten that many lawyers look to precedent to learn, rather than look outside their own experience.

Nevertheless, I'd rather read too much than too little. But choices must be made. And so I divide my time across a variety of social networks, reading multiple news sources and blogs, never knowing which might be valuable to me today. Following is a list of the social networks and reading sources I visit daily, or as close as I can get.

LinkedIn - I maintain a robust profile here, having achieved 100% on the completeness meter, for whatever that's worth. I tend to research my business connections, such as clients, prospective clients or people who send me resumes. The fact of the matter is everyone will research you and me sooner or later, so I feel we might as well put our credentials out there for review. As for contacts, I now have over 700 connections, of which I have instant recall of probably no more than 70%. I tend to invite attendees at my workshops and speeches to connect with me, which means my network is full of people I don't really know. But LinkedIn provides a handy notes tool which allows me to capture a few thoughts about each contact. Lastly, I will readily offer my network to those interested in finding a job or making a connection, as in "Review my connections and if there's someone you'd like to meet let me know." Few do, suggesting that networking is still a scary proposition whether online or virtual.

Facebook - I spend a few moments on here each day, typically posting some inane comment about what I'm doing, skimming what my friends and family are doing, and occasionally offering comments. I never ever play Facebook games. I can't imagine why anyone would care that last Saturday I played two hours of basketball at the gym, folded four loads of laundry and watched a soccer game on TV. But it amuses me endlessly that others find this interesting and so I continue to share. Facebook has turned into a proxy for class and family reunions and annual birthday phone calls, because now I know what my friends and family are up to, even the distant connections I haven't seen in twenty years, so we don't need to catch up. Being more aware isn't the same as being closer, however.

Twitter - I have over 800 followers on Twitter, and I'm listed as a "must read" on several lists of legal industry pundits, but I don't actively attend to this network like I used to. I don't believe in the "If you follow me I'll follow you" trend, so I follow only 350 or so, and of these I really only keep track of a few dozen. I like Twitter, and it's a very handy search tool as well as an invaluable tool when attending (or not attending) a conference, but it takes time to navigate through the noise and at the moment it's not capturing my attention as in the past.

Legal OnRamp - I'm a big fan of this network and I've spent time with its founder, Paul Lippe. I had the good fortune of being part of the Counsel Connect team, which was a social network for lawyers in the early '90s, well before its time, so I'm a fan of the format and LOR improves upon the model in many ways. This network is fantastic with robust content, good debates and a number of compelling private offerings for member firms. I don't participate so much lately as lurk, but I do enjoy the spirited discussions.

Martindale Connected - I like this network too, though it was late to the party and therefore it hasn't really ever entered my daily regimen. I've participated in a few discussions, and I was invited to offer feedback on the last redesign, but -- and I could be totally wrong here -- it seems to skew more toward the small firm audience, whereas I spend most of my time with big firms. Martindale-Hubbell has always offered excellent networking tools, and its shift from directory to social network has been somewhat lengthy and painful, but I have every reason to believe this network will become ever more robust and engaging over time.

LMA Connect - This is the official online community of the Legal Marketing Association. Several years ago this particular configuration replaced an easy-to-use email listserve with a somewhat clunkier online interface, which seemed to inhibit usage. I believe at the time the organization also chose not to automatically enroll all members in the online community, preferring to allow members to self-select which forums to join. The net effect is that traffic is much lower than it once was, but it really is a must-read forum for all topics related to legal marketing and business development.

Lawmarketing Listserve - This is one facet of the robust online community created by legal marketer turned entrepreneur Larry Bodine. I've been a member of this listserve since 1996 and with few exceptions I've skimmed every posted comment by every legal marketer on every topic for the last fourteen years. I can think of few better ways to stay on top of the pulse of legal marketing than to listen to legal marketers.

Google Reader - I use this as my RSS reader, and it works equally well on my PC, my Blackberry and my Android PDA. I love the simplicity, which allows me to quickly skim hundreds of news articles or blog posts in a very short period of time, marking some for future reading, sharing or saving.

Here are the feeds that I monitor daily, with explanations where the content is not self-evident:

News Wall Street Journal Financial Times ESPN CNN MSNBC New York Times Rochester Democrat & Chronicle - My hometown newspaper

I also read two local print newspapers each day, the Trenton Times and the Trentonian. (I also do both crossword puzzles, typically within 20 minutes, except for the syndicated and much harder weekend editions!)

Legal News Law.com - Legal Technology Law.com - Newswire Wall Street Journal Law Blog Above the Law - a fascinating and unashamedly narcissistic legal tabloid that essentially lampoons Biglaw from the perspective of lawyers-turned-journalists

Economics Freakonomics - From the authors of the popular books, here one finds anecdotes of economic theories in use in daily life The Becker-Posner blog - One a noted University of Chicago economist, the other a noted Federal Judge, these two debate topics of the day from an economics perspective. Pour a cup of coffee and don your thinking cap before reading these articles MacroBuddies - A blog authored by my favorite macroeconomics professor, Farrokh Langdana of Rutgers University, and his MBA students and alumni

Law Departments In House Rants - written by an anonymous corporate lawyer, he or she shares frustrations with outside lawyers and their reportedly poor service and business skills. I very nearly deleted this because the author is sporadic and at times not very constructive... but then the title should have been a clue! InHouse ACCess - authored by The Association of Corporate Counsel leaders and member contributors. An excellent, constructive, rich source of information about the challenges of in-house counsel with practical guidance to outside lawyers on how to better serve their clients InHouse Blog - Law.com's collection of news and information for the in-house counsel community Law Department Management Blog - the gold standard in providing information to the in-house community, Rees Morrison offers a tremendous volume of insight from book reviews, to critical analysis of surveys and products, to thoughtful discussion of metrics and other operational issues for General Counsel

Management Financial Times Management Columnists - a roundup of the FT's management experts. I'm particularly fond of Stefan Stern

I've added and deleted quite a few sources from this Management list. There should be plenty of rich sources that fall between the Harvard Business Review and some anonymous rant, but I have difficulty finding good ones that help me grow as a manager and a leader. All suggestions welcome.

Legal Blogs - This is the real heart of my online reading, and I've added and deleted quite a few over the years. Again, all suggestions for good sources are welcome. 3 Geeks and a Law Blog - an enjoyable tour of topics from three legal professionals, one a Knowledge Management professional, one a Law Librarian and the other a lawyer/marketer Above and Beyond KM - written by V. Mary Abraham, a Biglaw Knowledge Management professional and lawyer, a great source of practical information about legal technology and its potential for improving the practice of law Adam Smith, Esq. - hands down one of the top blogs for anyone interested in law firm management. If you aren't reading author Bruce MacEwen's excellent insights, then you can't possibly be serious about improving your management skills and insights Bill's Blog - This blog is authored by American Lawyer Media CEO Bill Pollak and though it was originally intended for his employees only, he's developed quite a following of industry insiders who are as interested in his management style and use of social media from the board room as they are in his company Brand Thinking - interesting insights on law firm marketing from well-known law firm branding and advertising guru Burkey Belser College of Law Practice Management blog - this blog published by this prestigious group of legal industry thought leaders should be more robust, but alas many of the vocal Fellows (of which I'm one) publish their own blogs, so I keep this handy more for its potential than for its practical use at the moment Cotterman on Compensation - I've long been a fan of Altman Weil consultant Jim Cotterman's insights into law firm economics and finance, and as the world of associate and partner compensation is changing his insights are invaluable Decent Shred - a helpful smorgasbord of topics on legal technology, knowledge management and marketing by consultant Shy Alter Enlightened Tradition - a collection of UK legal KM manager Mark Gould's posts about knowledge management Get Creative - Merrilyn Astin Tarlton's musings on creativity, innovation and leadership Global Growth Guru - Consultant Doug Johnson's thoughtful insights on legal marketing and legal business management Hildebrandt Blog - Consultants from Hildebrandt Baker Robbins offer insights into a variety of legal industry topics Hubbard Perspective - commentary, insights and links from legal marketing technology leader Hubbard One ILTA blog - the feed from the leading association of legal technologists In Search of Perfect Client Service - Biglaw refugee Patrick Lamb launched his own small law firm focused on offering value in innovative ways to clients. His commentary here lampoons the traditional mindset of Biglaw lawyers and offers helpful tips for adding value in your own firm Inside Legal - Legal PR experts at Envision Agency offer news and commentary primarily about legal service providers Larry Bodine LawMarketing Blog - the aforementioned legal marketing veteran offers commentary gleaned from his consulting practice Law Consulting Blog - Veteran lawyer turned management consultant Cordell Parvin offers insights and commentary on the changing legal profession Law Firm 4.0 Blog - my longtime friend (and now competitor!) Deborah McMurray offers her usual insightful commentary on legal marketing Law Firm Competitive Intelligence - veteran legal CI expert Ann Lee Gibson offers occasional insights into the world of CI, gleaned from her many years helping law firms win competitive bids Law Firm Web Strategy - noted web marketing agency Stem Legal offers insights into legal marketing trends Law21 - The second on my absolute must-read list for anyone serious about law firm management. Jordan Furlong is a veteran journalist turned management consultant and his insights are informed by constant observation of law firms, their leaders and their foibles and successes. If my list weren't alphabetical this blog would be listed at the top LawBizBlog - Ed Poll is a lawyer, management consultant and mentor/coach to a long list of successful lawyers. I enjoy his writing more than his quirky videocasts, but his soft-spoken, well-informed commentary is perfect for lawyers who need advice but are afraid to ask for fear of being ridiculed. Ed is even more engaging in person. (Ask him about his 1968 Airstream trailer!) Legal Blog Watch - Two columnists rotate informative and often amusing commentary on legal news of the day Legal Current - from Thomson Reuters, news and links about the legal industry Legal Marketing Blog - veteran legal marketer Tom Kane, who's had stints in several Biglaw firms, preaches what he practices on this blog, a guide to help legal marketers and lawyers improve their business generation efforts Legal Marketing Canada - this blog might be labeled Jasinski on Legal Marketing, but I go by the name of the RSS feed. Lawyer and legal marketer Doug Jasinski offers insights particularly suited to Canadian lawyers and marketers Legal Marketing Reader - journalist Amy Campbell created this site to aggregate legal marketing articles. A great idea with a nice archive of very informative articles, though it isn't updated nearly enough Legal Process Outsourcing - an executive at outsourcing giant CPA Global offers insights into the growing LPO field Legal Transformation Blog - Lawyer turned consultant Joshua Kubicki offers excellent insights into the changing world of law firm operations Lloyd Pearson Blog - veteran legal directory editor turned law firm marketer turned consultant assists law firms with their communications and legal directory strategies. Here he occasionally provides insights into the ever-present and growing world of legal directories Martindale Blog - Martindale-Hubbell's face to the market offer insights into its offerings, social networking and other legal marketing topics Progressive Marketing - veteran legal marketer Russell Lawson offers his unique take on the state of legal marketing Rainmaker VT - good friends Mike O'Horo and Craig Levinson recently launched an innovative online approach to teaching business development skills to lawyers. In his blog they discuss legal business development tips and techniques Real Lawyers Have Blogs - former lawyer turned serial entrepreneur Kevin O'Keefe has been leading the charge on legal blogs for years. His stream of consciousness blog posts are an informative and often amusing look into how he thinks Strategic Legal Technology - Another must-read favorite of mine. Ron Friedmann has been involved in law firm technology since the days when "tech savvy" meant having a secretary with access rights to the one PC owned by the firm. His accumulated wealth of knowledge coupled with his personal experiences inside law firms and as a vendor to law firms is an incredibly valuable resource The Client Revolution - Jay Shepherd breaks new ground in practicing law with the client's needs in mind rather than his own billable hours. His insights are very helpful because they're based on his own experiences operating a law firm in a new way The Common Scold - a colleague from my days at American Lawyer, Monica Bay is one of the most respected legal technology journalists, serving as longtime editor of Law Technology News. Her insights on the state of legal technology, to legal vendors (never sell "solutions!") to her love affair with the New York Yankees are must-read, as making her "people on the move" update is a badge of honor The Legal Watercooler - Law firm marketer Heather Morse Milligan is a career counselor to hundreds of legal marketers who enjoy learning from her experiences and seeing the world of law and legal marketing through her eyes The Non-Billable Hour - Matt Homann makes you think outside the box, and even if you think you know it all, he'll help you learn something new. A fascinating guy with a fresh outlook on life and learning, his blog is a good consolation when you can't spend time with Matt in person The PR Lawyer - Philadelphia lawyer turned PR counsel Gina Furia Rubel practices what she preaches, using social media and traditional PR to promote her practice of helping law firms and small businesses promote themselves Thoughtful Legal Management - I really enjoy Canadian lawyer Dave Bilinksy's writing, in part because he's a veteran journalist, in part because his consulting practice and experience gives him a ringside seat to the many changes in law firm management and technology Virtual Marketing Officer - longtime friend Jayne Navarre offers her insights into legal marketing, particularly social media, gleaned from years of experience working inside and consulting to law firms. In fact, my own blog exists as a result of her very kind assistance Zen & the Art of Legal Networking - The International Lawyers Network has a tremendous resource in Lindsay Griffiths, who employs her impressive social media chops both promoting this association and discussing the use of social media

Other - a handful of sources that aren't easily categorized elsewhere @ErikJHeels - my old friend Erik is a lawyer, musician, technologist, who served as a legal technology journalist for a dozen years or more. He writes on all sorts of topics, from baseball to patent law to music to how he synchronizes his Gmail and Outlook Contacts (with diagrams) to housing rates in Eastern Massachusetts. An engaging writer, you never know what to expect The Dilbert Blog - If all you know of Dilbert creator Scott Adams is that he's a lousy artist, then you're missing out on a fascinating mind who writes from his perspective as an accomplished economist, cartoonist, technologist, atheist and hypnotist. While often funny, his writing more often makes you think Dr. B's Blog - I've retained Dr. Linda Burrs for multiple projects having to do with organizational dynamics, team work and selling skills. She has a corporate trainer background, and now helps businesses and people operate more effectively. I have hired her to conduct a practical Myers-Briggs workshop for every new team I've managed for over a decade... and I will do so again Musings on (Marching) Music - my kid sister Colleen Corcoran writes about her love of music and teaching music, particularly marching band (she's a drum corps national champion). I tell her she should write about how hard it is to find a job as a high school band director and marching band instructor when it seems like every school district has even more incompetent personnel policies and procedures than the last!. But she laughs it off and prefers to write of what she loves rather than what she must endure to pursue her passion. I envy her restraint! Seth's Blog - marketing guru Seth Godin offers frequent pearls of wisdom and occasional self-important drivel. He has a knack for forcing one to ask, "Why do we do things that way when there are far more effective approaches?" Set in Style - I very much enjoy writing coach Mister Thorne's often acerbic but always informative approach to urging lawyers and legal marketers to hire professionals to do their non-legal writing. You can't help but laugh when he points out the inefficiency of complex legalease when simple editing will produce more concise, effective prose The Pursuit of Arete - from the "people surprise me" department, my longtime friend and my former public relations consultant Daryn Teague offers some fascinating insights into politics, history, culture and the American way. We've shared many a beer over the years and I have a great respect for his intellect, but not once did I suspect he had these interests tins : Rick Klau's blog - I've known Rick since his first job out of law school, and since then he's been a rising star in whatever game he's played. Currently a rising executive at Google, Rick has been blogging for a very long time on topics that interest him, and since he's usually a couple years ahead of the curve they will probably interest you too eventually Tom Glocer's Blog - I began reading the Thomson Reuters CEO's blog a while ago, long before joining the company, because I'm fascinated by CEOs who take the time to engage the public. I've met more CEOs afraid of their own employees and terrified of customers, so finding one who's willing to engage so openly is refreshing (see Bill Pollak above)

Humor - There are about a dozen feeds which provide an endless stream of laughs. However, humor is a subjective thing and some may not be appreciated by my readers. Suffice it to say that an RSS reader can provide plenty of amusement in addition to education.

If I were more organized, I'd publish a list of what I've stopped reading, and why, because the list does change over time. But alas, interested readers will have to conduct this comparison on their own. You can read my previous social media updates here (2009) and here (2008).

Don't Tell Me What You Think I Want to Hear, Tell Me What I Need to Know!

Have you ever been placed in a situation where someone protected you from a painful truth, but in so doing left you at a disadvantage because you couldn't make a fully-informed decision?  A common complaint I hear from in-house counsel is that outside counsel often don't share small problems, and some of these grow into big problems.  This applies whether it's a budget overrun or a curve ball in the legal matter they're addressing. I've written previously about the critical need for in-house counsel to budget accurately for legal matters -- matters that from the perspective of corporate chieftains are no less variable or uncertain than global supply chain costs or revenue projections.  At a recent discussion on the topic, a Chief Legal Officer explained the impact of a cost overrun in her legal department.  As a big box retailer with profit margins in the mid-single digits, there is very little excess spending in the organization from which they can divert funds to address cost overruns.  As a result, some cost overruns are distributed as a sort of "tax" on sales, or in other words, for every $50,000 overage in the legal department, the organization must sell an additional $1,000,000 of product above forecast.  And since there are incremental costs associated with additional sales, and in some cases revenue cannot be fully recognized immediately, the actual surcharge is something on the order of $2,000,000.

Think about that for a moment.  Imagine the GC addressing her peers in the boardroom in late Q3 of the fiscal year.  She claims that because legal matters are so uncertain there's no way to submit a proper forecast, and as it turns out she'll need an additional $50,000 in her budget, maybe more, and so Sales must step up and deliver an additional $2,000,000 in revenue.  Someone's going to be eating alone in the executive cafeteria.

Of course this applies to legal matters that start out small but grow into big hairy complicated messes.  If the outside counsel doesn't provide early warning that the matter is growing beyond the expected scope, the GC can't properly re-assess the situation.  Since legal matters are, at heart, business issues, it's critical to inform business management how new developments impact expectations.

Does the discovery of a smoking gun during document review warrant a fast reversal of course in the SEC investigation?  Will previously unknown IP infringement claims that surface in acquisition due diligence alter the calculus in a make vs. buy decision?  The earlier a GC knows of the potential issues, the better she can advise business management.  This is not to say outside counsel routinely and purposely withhold information, not at all.  But when project scope is ill-defined in advance it sometimes takes too long to understand when the scope has materially changed, and this lag time is unacceptable.  For help on defining scope, look into Legal Project Management.

As with many of my life lessons, I learned the hard way.  I vividly recall a product development project for which I was an executive sponsor.  Each month for nearly two years the development team provided progress updates, sought additional funding, looked for guidance on feature/function decisions and otherwise adhered to the development schedule.  However, two months before launch, long after we had incorporated significant new revenue streams into our current year forecast, the development team advised that they were six to eight months off schedule.  They had hoped to make up time and they didn't want to deliver bad news, so they hadn't raised the alarm earlier, but other projects interfered and now there was no way to meet the deadline.  As executive sponsor I wasn't necessarily expected to be sitting with the developers each day, looking over their code and analyzing their progress, but I was expected to know if the launch date would be delayed into the next fiscal year, putting all of our revenue projections at significant risk!  I ate lunch alone quite a bit that year.

Let's close with an unrelated anecdote.  Because of my heavy travel schedule, much of it at hours when others in my time zone are fast asleep, from time to time I hire a car service to take me to and from the airport.  I grew fond of one car service owner-operator and hired him exclusively for several years.  Needless to say, I was a lucrative client for his small business.  For one return trip I had a tight schedule:  land at the airport, dash to the car waiting at the curb, try to shave off some time on the hour-long ride to my home, and make it to my daughter's band concert a few minutes late.  There was no room for error, such as an unanticipated (but quite common) traffic jam, so I also consulted the train schedule.   I could take a train and almost certainly have no delays, but I would miss more than half the concert.  I gambled on the car service.

When I left the plane, I called the driver to alert him that I was walking to the airport exit.  He said he was slowly circling the airport, as is his custom so he doesn't have to park.  The flight was long so I needed to visit the restroom and it was maybe 20 degrees (F) outside, but instead I waited outside for 10 minutes knowing the airport police would shoo away the driver if he approached and I wasn't there.  After a few minutes I called back, and the driver revealed he was actually pulling into the airport now and would be there momentarily.  Another ten minute delay.  I called again and as the driver was telling me that he drove by but didn't see me, I heard a toll booth agent in the background.  The driver then sheepishly admitted that he was just exiting the nearby interstate highway, and now he really was about 10 minutes away.

You know how this ends, don't you?  By now I had missed my train.  There was no way I would see even a moment of my daughter's concert.  I had been standing in below-freezing weather for nearly half an hour expecting the driver to arrive at any second, and, not to put too fine a point on it, I was in dire need of a visit to the restroom.  So I told the driver I would no longer need his services, then I went inside, visited the restroom, bought a Starbucks and headed to the next train.  A week later the small business owner sent me a letter scolding me for throwing away our cozy relationship merely because he was a little late.  And, by the way, he claimed I owed him for the trip since I didn't cancel in time.

The real error was not giving me the information I needed.  I could have visited the rest room, secured a hot beverage and stood inside the door.  I could've taken the train -- and I still would've paid the driver for his time.  In other words, I could have explored my options.  Instead, his misguided effort to protect me from the truth eliminated all of my options, leaving me furious, cold and in search of a new business partner.

I'm presently conducting several client satisfaction interviews for law firm clients.  Often we hear about poor communication and poor budgeting skills.  Sometimes my Biglaw partner clients will dismiss these as one-time easily-explained situations that are blown out of proportion, certainly not the sort of issue to derail a longtime relationship.  I caution them to put themselves in their client's shoes.  Are these the comfortable loafers of a well-informed client?  Or are these shoes hopping from one foot to another, trying to stay warm in the absence of information?

Timothy B. Corcoran delivers keynote presentations and conducts workshops to help lawyers, in-house counsel and legal service providers profit in a time of great change.  To inquire about his services, click here or contact him at +1.609.557.7311 or at tim@corcoranconsultinggroup.com. – See more at: http://www.corcoranlawbizblog.com

Corcoran's Greatest Hits, Volume 1

A long time ago when I was a radio and club DJ, I owned a lot of Greatest Hits albums and CDs so I could fulfill listener requests for popular songs. Some of these collections were hastily compiled by an artist's record company in order to fulfill a contractual obligation. But sometimes the collections were compiled with care and enthusiasm and included never-before-released songs from the vault, liner notes from the artist and other material to appeal to the true fan. With that in mind, I present the top five posts from this blog over the past year along with additional insights of my own and public and private reader reactions. Legal Project Management Q&A - For quite some time I've been writing about the need for law firms to embrace business concepts to improve operations.  Last year I adapted some of the concepts and techniques I learned in my corporate life and developed a curriculum for educating lawyers about project management.  Turns out there's a whole discipline growing on this topic, now dubbed Legal Project Management, and there are some quality trainers offering insights.  But there are also a number of folks hopping on the bandwagon.  In my view, one can obtain certification in a discipline, one can even teach the concepts, but one doesn't really know the topic until one applies these techniques in a commercial enterprise to make money.  Ask your project management consultant for real commercial examples of these concepts in action.

In addition to imbuing my approach with real-life experience, I also focus on the big picture and keep away, at least initially, from the statistical and quantitative basis that others believe is necessary to commence a project management process.  One Six Sigma Black Belt criticized my approach, exclaiming in disbelief that no program that addresses project management and process improvement could possibly succeed without a heavy dose of analysis and math.  I disagree.  Well, at least I disagree insofar as I'm confident few law firm partners will sign up for a course that's heavy on math and analysis.  But many will sign up for a workshop such as mine (and hundreds have!) where we cover the basics, whet participants' appetites for how project management skills can be applied to a law practice and generate sufficient interest to go to the next level where -- surprise! -- we get deeper into the underlying math and analysis needed to truly benchmark and track performance.  On a few occasions my colleagues and I have replaced a consultancy that specializes in engineering firms, or that applies a standard Six Sigma methodology to any business process with little customization.  I've learned that the practice of law, while not as unique as some lawyers would have us believe, does require customization and care to ensure that the concepts are properly applied.

If you lead a law firm and you're convinced that with an improving economy everything will go back to the way it was, and this is a good thing because it's right that lawyers should demonstrate value primarily by billing time, and it's right that lawyers should treat each new engagement as if it's the first of its kind because this is the only way to ensure the client receives the most thorough work product, then you don't need project management.  But write down these beliefs and note how firmly you believe in them, and then let's talk again in a couple years.  I'm certain your views will have changed, because once everyone else has adapted you will too.

A Note on Reducing Law Firm Compensation - This post generated a number of emotional responses.  It's also one of the most commonly searched topics on the blog, suggesting that it's a hot topic elsewhere.  When I wrote this post, quite a few large law firms were conducting public and stealth layoffs of staff, associates and even non-equity partners, and just as many were reducing compensation of these same groups.  Popular legal gossip blog Above the Law teamed with Law Shucks to track these layoffs, and according to their research as of today's writing there have been nearly 15,000 job losses in the legal sector.  This is an unprecedented statistic in a business segment that is typically known to perform well in good times and bad.

It's challenging to write academically on such an emotional topic while the lives of real people are so significantly impacted, but the original intent of this post was to provide some context for why the same market dynamics of supply and demand that influence other industries are certainly factors in the legal profession.  In short, when demand for a product or service declines, there tends to be an oversupply of the product or service, and this drives prices down.  When product or service producers experience lower revenues from lower prices, they look to reduce costs in order to maintain profitability.  It should have come as no surprise that associates and staff, the lowest members on the Biglaw totem pole, would experience the greatest pain when demand dropped and law firms cut costs.  But as I said then, when demand returns, hiring and compensation will increase.  And it is, and they are.

That's the thing about markets -- they tend to operate efficiently when you look at the big picture.  Unfortunately, real people and their livelihoods were sorely impacted, often through no action or inaction of their own.  Which is why this blog is intended to help business leaders make smarter choices, to run more efficient and effective businesses, so we can enjoy profitability while also delighting customers and attracting quality employees.

Law Firm Leaders: Save Money Now By Cutting Marketing - The title is ironic.  I would not counsel any business leader, especially a law firm leader, to limit the organization's visibility to its target audience, particularly when there's a good possibility that buyers are actively seeking new providers.  But I figured the title would catch the eye of leaders looking to do just that, because after all, isn't marketing a nice-to-have, not a must-have?

There were a few different points in this post.  First, every marketer will claim that one should spend more on Marketing during a downturn, but like a politician who's developed a nice ten-word sound bite but doesn't know the next ten words, i.e., the substance behind the rhetoric, many marketers repeat this mantra without offering salient details such as when, where and how to increase marketing in a downturn.  As marketers, we can't just try to protect our jobs without regard for the consequences, like auto workers refusing to negotiate labor rates even if it means the plant must close.  We should be thoughtful and prudent in our spending during a downturn, because while surely there are opportunities to be had, there are also a lot of people willing to take our money in return for a lot of empty promises because they too are suffering.

I also wanted to take on the lazy business leader who applies cuts across the board without regard to growth potential or profit contribution.  In tough times we all need to tighten our belts.  But if Mom loses her job, do we sell the car to save money, and now Dad can't get to work and he loses his job too?  A corny analogy, but in effect many business leaders our of some misguided sense of fairness try to spread the pain evenly.  Hogwash.  The current and potential growth engines might need relatively greater investment in tough times, and the slow growth or cash cows might deserve nothing, so long as we're willing to acknowledge that this will effectively kill them.

The other point was to distinguish between marketing as defined by many lawyers and marketing as defined by experts.  Just the other day I was reminded that this is a long-term battle.  A Biglaw partner asked me if I could help the firm get its RFP response approach "right."  I suggested we might have very different views for what is "right."  An elegantly bound booklet full of deal lists, league tables and lawyer bios, accompanied by boilerplate responses to an RFP's standard questions is very often a waste of everyone's time.  An RFP that addresses the client's business challenges and offers potential solutions along with a project plan and a budget is very often a winner, even if it's a tenth of the size and weight of the alternative!  But lawyers want the former (and so do many marketers).  If a law firm leader wants to cut marketing costs, my suggestion is that in addition to reviewing the marketing budgets and org chart, he should look in the mirror and identify the silly things lawyers do under the guise of Marketing.  And the marketers can help.  After all, we're in this together.

Addressing the Martindale-Hubbell Question - I receive calls nearly every week from law firms big and small asking if I'll help them negotiate their Martindale-Hubbell contract.  Many, but perhaps not all, readers of this blog may know that for a period of time I led the large law, international and corporate business for Martindale-Hubbell.  Obviously I know where the bodies are buried and how to negotiate against my old team (actually, now that LexisNexis manages the business, nearly everyone I knew is gone).  But I have no interest in doing so.  Despite the unethical, short-sighted, juvenile and profoundly incompentent manner in which I was treated when I left the organization, I spent too many years building its brand to take any joy in knocking it down.  Besides, the leaders of the parent company need no help from me or other alumni to harm the franchise.

Of more interest is that when it comes to directories, everyone continually asks the wrong questions!  There is no list of "good" directories and "bad" directories.  Even comparing Martindale to Ted's List of Blond-Haired Left-Handed Lawyers of Southern North Dakota is a misnomer, because one is a multimedia network connecting buyers and sellers, and the other is a vanity listing which lawyers buy to feel good.  But I'll leave it to the Martindale marketers to tell their story.  Despite the title, the post is about how one measures the impact of any legal directory to influence your prospect's buying decision.  After all, isn't that what it's about? 

The calculus is fairly simple: define your target market, identify the ways to reach this market, identify the manner in which they make buying decisions, and then be in those places and do those things.  If the cost to do this effectively is too high, seek out proxies.  If a legal directory has access to the target market and influences a buying decision --and it can prove it -- then perhaps an investment of a dollar there gets you ten dollars of return.  If not, move on to the next tactic.

Marketers are just as bad as lawyers when it comes to judging legal directories, just on the opposing side of the argument.  Typical legal marketer discussion of directories:  "Does anyone use the Tall Lawyers of Montana directory?  One of my delusional lawyers thinks it's an important investment.  I've tried to tell him that all directories are a waste, and he should spend time developing a Facebook fan page instead because I think it's a better investment."  In Biglaw land, few buyers will identify, evaluate or select a law firm based solely on its representation in a legal directory (or network), but sometimes it can be a differentiator when all other factors look the same.  It's important to know when this is the case and when you're throwing your money away.

Web 2.0 / Social Media Update - I've long been active in social media, before we even used those terms.  I had the good fortune of joining Steve Brill's team in the early '90s when Counsel Connect was launched as a sort of AOL for lawyers, which was several years after I joined AOL and participated in its chat groups, which was a year or two after I joined Compuserve.  For many of you, these names mean nothing.  That's okay.  Suffice it to say, I've long been a fan of learning from experts wherever they hang out, and occasionally I'll have something to say that I think others might find useful.  The venues change, but the concept still applies.  In this post I shared the many legal and non-legal blogs I read daily, and the legal and non-legal social networks where I spend time, as part of my effort to stay connected and stay informed about the changes in my chosen field.

This was an enormously popular post a year ago, and while untold millions of users have joined the social networking bandwagon since then, I suspect many are still looking for a roadmap of what's good and what's a waste of time, from the point of view of someone who's been there.  Rather than point people to the year-old summary, I'm updating the post and I'll publish that shortly (Update here).  My daily reading list has expanded yet the frequency of my commenting (on this blog and elsewhere) has declined somewhat as I try to strike the right balance between studying my field and working in my field.  I know that I'm not alone in seeking this balance.

So there you have it.  The top 5 posts from this blog in the past year.  I hope you enjoyed them the first time, perhaps enjoyed reading them a second time, and I hope these liner notes were helpful additions.  Feedback is always welcome.

Legal Project Management

I've been spending a lot of time in recent months conducting workshops in Legal Project Management.  What is Legal Project Management, you may ask?  Simply put, it's the process of adapting business process improvement, resource allocation and predictable budgeting techniques to the delivery of legal services.

Some lawyers believe that the practice of law is not like other professions or business disciplines, and that therefore project management principles which work in other areas do not apply.  These lawyers are wrong.  That's not to say one can manage a complex legal matter as if it were an automotive assembly line.  But every legal matter doesn't have to be treated as a completely unique confluence of steps that has not occurred before and will not occur again.  Each of these steps can be broken down and analyzed, and when the opportunity arises for this step to be included in an engagement, there can be a greater understanding of the cost drivers. 

Understanding the assumptions that influence the cost of delivering legal services is critical to setting fees, and clients understand this.  After all, they go through a similar process when establishing their own cost and revenue budgets. My former colleague Pam Woldow and I have (literally) traveled the world delivering Legal Project Management workshops to law firms big and small, to law departments big and small, to corporate lawyers and litigators, to partners and associates, to finance and marketing staff... and our workload is increasing. 

We will be offering a webinar on Tuesday, March 23rd, 2010 at 1 PM ET to share our insights into Legal Project Management, and to address questions from those who are experienced Legal Project Managers as well as those who are just starting to explore this new frontier.  For more information, click here.

Legal Project Management is critical to managing legal work more profitably, but it's also an excellent way to achieve client satisfaction and to develop associates' skills.  We'll touch on all of this in the webinar.  If you plan to attend and wish to submit a question in advance for us to address, please post it in the Comments below.

Legal Budgets and Corporate Budgets - Why Predictability Matters

I recently met with a group of law partners to discuss the feasibility of increasing the firm’s billing rates for the coming year.  Normally this doesn’t require a discussion; the firm traditionally raises its rates 5-6% every year.  And normally this takes place in January once the prior year's books are settled.  This year, however, and to the partners’ credit, they questioned the optics of raising rates at a time when most of their clients are still suffering from the impact of the global economic meltdown, or the Great Reset, as Bruce MacEwen calls it. As we debated the pros and cons, it was apparent that the partners had very little understanding of the impact an increase to their billing rates might have on a client.   In fact, none of the partners had worked in a corporate setting previously so they had no real insights into the typical corporate budgeting process.  Perhaps a peek behind the curtain may help inform this discussion, as it’s a process full of surprises to law firms that often have rudimentary budgeting processes in place, if at all.

The first surprise is when budget discussions commence.  Assuming the fiscal year corresponds with the calendar year, most businesses start preparing budgets in August.  Yes, in August prior to the budget year.  It takes time to develop a budget from the ground up.  In days past budgeting may have been approached as an exercise in what’s different or, in other words, starting with last year’s budget and merely adding new items and deleting old items.  No more.  Now there’s an expectation that every budget must start at zero, and from this starting point we add in each and every cost until we identify the total budget needed.  And then we start paring it back.

Many lawyers operate under the delusion that the practice of law is inherently and infinitely variable, meaning that unlike other business functions one cannot predict legal costs with any certainty.  This opinion is often held by outside counsel and in-house counsel alike.  Imagine the plight of the General Counsel:  she doesn’t know how many deals the business executives may initiate in advance when even they don’t know.  She has no insight into what product liability suits the company may face, or what type of employment actions will be raised.  For litigation already underway, she can’t possibly predict the next move the adversary may make, so by definition she can’t budget for how she’ll react.  And even acquisition due diligence may reveal complications that are impossible to predict.  These are reasonable concerns, but they fly in the face of the number one rule in business: no surprises.

One can make mistakes when climbing the corporate ladder.  One can make some mistakes again and again.  One can even make colossal mistakes that cost the business money.  But the one mistake anyone aspiring to reach the board room can’t make again and again is surprise.  Corporations, both public and private, thrive on certainty.  Forward-looking statements to shareholders and analysts must be based on a reasonable estimate of future performance, or else the stock price will suffer in the market.  Even private companies that don’t publish earnings must have predictability to properly allocate capital.  For business leaders to establish priorities they must have the facts, and the worst crime is to provide inaccurate information because this leads to making poor business decisions.

Another surprise may be that erring on the side of caution can be as egregious a mistake as overestimating performance.  Imagine the Senior Vice President of Marketing who submits a revenue forecast estimating $275 million in sales, knowing full well that the business is on track to deliver $280 million in sales.  On paper this looks clever, because bonuses increase with overachievement, and everyone looks good when we beat the targets, right?  However, it’s not uncommon for the CEO and CFO to punish the business leader who builds in too much revenue cushion, because we might have made different decisions about our allocation of capital if we knew that we had more to work with.  A critical project with great long-term potential may have been delayed or tabled because we didn’t have sufficient investment available.  (The worst offenders allocate a reserve that benefits only themselves.)  Obviously there’s also punishment for missing the targets, particularly when it results from poor planning rather than external market events.

But how do they do it?  How do corporate executives weigh numerous variables to establish an accurate forecast?  After all, don’t most business functions carry some level of uncertainty?  Think of the head of manufacturing who must predict costs despite the possibility of critical supplies being hijacked by Somalian pirates, or labor unrest in the fields of South America, or political unrest in the Middle East impacting oil prices which in turn have a material impact on the costs of transportation in our supply chain.  And what about the corporate treasurer who has to predict the impact of currency fluctuations or interest rates on the company’s cash flows, in order to hedge against this.  Our head of Marketing has to examine multiple products across the spectrum of the business cycle, use a little game theory to predict what the competition might do in response to our new product launches, potentially even identify which customers are at risk before the customer even begins to explore substitutes, and build a revenue forecast amidst ever-changing market demand.

There’s no magic formula.  These business leaders build their forecasts block by block, inch by inch, starting first with the known – in the case of sales, perhaps we first identify guaranteed revenue from committed customer contracts, or in the case of manufacturing maybe we look at commodity materials where we have multiple suppliers to ensure sufficient flow and predictable prices.  We then move on to the harder calculations, one by one looking at product revenue in each jurisdiction, perhaps customer by customer; or examining links in our supply chain where we have limited redundancy and therefore greater risk.  Piece by piece we establish a forecast that builds from certain to less certain, but even with the less certain we identify the likely ranges and provide confidence levels based on identified risks.

So you can imagine the amused chuckles in the board room when the Chief Legal Officer throws up his hands and tells his colleagues that the legal function contains too many variables to possibly establish a budget, so instead he’ll take last year’s budget and add 20% -- to accommodate law firm rate increases and other variables – and he’ll only come back and ask for more if something changes.  Gone are the days when this was amusing.  Now a General Counsel may be shown the door if he can’t apply some rigor to the legal budgeting process.  This also explains the increased involvement of procurement officers in the selection, and management, of outside counsel.  This is a clear sign that CEOs and CFOs don’t fully trust their lawyers to extract more value at a lower cost from the in-house legal staff and suppliers, so they’re putting someone at the table whose sole objective is to reduce costs.  Or they wish to, as the saying goes, trust but verify.

These budget calculations and conversations start in August, are debated endlessly through September, and begin moving up the approval chain in October.  There are numerous revisions, typically, as you might expect, requiring all cost estimates to go lower and all revenue estimates to go higher.  But there’s a balance to be achieved between optimism and realism.  Newly anointed business leaders tend to believe that they can extract unnecessary costs that their predecessors overlooked, or that they can rally the troops to commit to higher revenue performance.  Entrenched civil servants throughout the corporation strenuously object to these stretch goals, and work diligently to maintain the status quo, with sufficient safety valves in place for when something goes wrong.  This can be invigorating, and it can be confounding, but in the end the corporation signs off on its revenue and expense budget for the coming year, typically by early November.

As my group of law firm partners discussed corporate budgeting, a few light bulbs appeared above their heads.  One corporate partner recalled receiving a letter in late October from a key pharmaceutical client indicating that they would not accept fee increases from any outside counsel in the coming year.  She recalls wondering why the letter was sent in October, months before most law firms issue rate increases, but it now occurred to her that the corporation’s budgets must have been locked by then.  Another partner realized that even when the economy is humming along nicely and law firms have the latitude to increase rates, the fee increase letters are potentially six months out of sync with the client’s budgeting process!  “No wonder clients claim we don’t understand their business,” he observed.  One of the partners added some levity by suggesting that the annual fee increase letters should go out earlier, say in July.  Another had us rolling in the aisles when she suggested that since law firms always raise rates, and clients know this, perhaps it’s the client’s obligation to build in these expected increases in their August and September forecasts.  When we realized she was serious, we ended up rolling our eyes.  In some segments in some industries, the suppliers can set the price and require the buyer to meet the price, or else not get the product.  (Have you ever tried to haggle significant savings on a Mercedes?)  There are a few law firms with such pricing power.  Let’s be clear: despite your desire to occup this space, the odds are your firm is not one of these.

But does this budget process really result in certainty?  After all, we’ve all seen – or we’ve owned stock in – companies that miss earnings forecasts.  In reality, one never eliminates surprise.  But we can get a lot closer by minimizing it.  There’s a formal process to deal with the inevitable changes that occur in most corporations.  It’s called a reforecast.  It may come as a surprise that most companies begin revisiting their revenue and expense budget numbers in early January.  After all, what can go wrong in the first few weeks of the year?  However, think back to when we began compiling our forecasts.  We weren’t even done with Q3, let alone Q4, so many of our assumptions for the coming year relied on assumptions for how we’d conclude the current year.  And guess what, things have changed since we incorporated those assumptions.

A reforecast is a formal process to revisit our assumptions, to look at costs that exceed expectations and revenues that fail to meet expectations.  And vice versa.  In many corporations this process repeats itself several times a year, often corresponding with the quarterly earnings report in public companies, and in recent years this process might happen 6 or 7 or even 12 times a year.  And it’s not simply indicating that revenues are falling short or that expenses are trending high and then receiving forgiveness on the goals.  That would be cool.  No, instead every functional leader has certain levers to pull to meet the agreed-upon expectations even when there are material changes in costs or revenues.  On the revenue side, perhaps we launch a sales contest, or lower prices to increase penetration.  On the cost side, perhaps we seek alternative suppliers, squeeze the suppliers we have, or reduce costs elsewhere by reducing staff.  Often the reforecast process surfaces significant trouble in one division that will be impossible to make up, so other divisions receive an involuntary revenue or cost surcharge to make up the difference.  This can be painful.  No business leader in the midst of stellar performance, overachieving on every goal, or even those barely meeting expectations, likes to terminate valued employees or table a valuable project because some other division failed to meet expectations.  But it happens.

To add more enjoyment to the budgeting process, most corporate executives have a portion of their annual compensation based on their ability to manage to their budget.  For example, the company may exceed its revenue and profit targets, the share price may exceed analyst expectations, the division may have enrolled a record number of new customers, but the divisional leader will lose 30% of his bonus because costs were over budget.  Those running the legal function are late arrivals to this party, but it’s becoming a material factor in their compensation now.

Recently I observed a panel of General Counsel discuss their likes and dislikes with outside counsel.  One GC remarked, much to the amusement of the roomful of outside counsel: “If my legal budget goes over plan, at least we’ll save money on my bonus.”  The GC didn’t laugh.  He was deadly serious.  The message he was trying to convey is that the late invoice, the one you generate only at the end of the billing period, the one that reflects billings 40% over the original estimate, the one that you’ll accompany with a brilliant, well-crafted memo explaining the 58 reasons why costs exceeded your original estimate, may literally cost him his family’s summer vacation rental, or a semester of his daughter’s college tuition, or the swimming pool he planned to install in the Spring.  Just as with the General Counsel who remarked, “If I don’t find a way to manage the legal function with a lower budget and without compromising quality and throughput, they’ll find someone who can,” your client needs you to be part of the team.

Perhaps these insights into the corporate budgeting process will shed some light on why your clients are so darned insistent on predicting legal costs.  In many cases, predictability trumps total spending, or, in other words, you can charge premium rates as long as you ensure that the fees are not surprises.  You may also question whether a fee increase is necessary this year, particularly since your client has fewer levers available to adjust for your increased cost.  Perhaps you can do a better job of estimating legal costs for your next project.  The project management techniques used in other business functions apply to predicting and managing legal costs, but that’s a topic for another day.

As another General Counsel said to me recently, “I know a lot of firms that are capable of handing my legal work.  I’m sure there are many more that I don’t yet know.  What wins me over isn’t always low rates or discounts, it’s finding a firm that really understands that challenges I face in my business – and this includes not just the legal issues I face in my marketplace, but how I have to manage my legal department as a business.  If I can find a firm that understands what life is like in my shoes, that firm will win my loyalty.”

What do you say, are you up for it?