The Business of Law

The Business of Law

LawNet 2002
LawNet 2002
Michael Kraft, Esq. Michael Kraft, Esq.
Kraft Kennedy & Lesser Kraft Kennedy & Lesser
kraft@kkl.com kraft@kkl.com
212 212- -986 986- -4700 4700
A Concise History of The Law
A Concise History of The Law
Abraham cuts a deal Abraham cuts a deal
Roman or local law? Roman or local law?
Feudal invention of money damages Feudal invention of money damages
English courts of law, equity, etc. English courts of law, equity, etc.
U.S.A.: 1 market and 51+ jurisdictions U.S.A.: 1 market and 51+ jurisdictions
Procedural rights and due process Procedural rights and due process
Global business and legal complexity Global business and legal complexity
Origins of lawyer roles
Origins of lawyer roles
Scribes Scribes recorders recorders
Scholars Scholars interpreters interpreters
Prosecutors Prosecutors -- -- enforcers enforcers
Legislators Legislators -- -- lawmakers lawmakers
Barristers Barristers trial advocates trial advocates
Solicitors Solicitors transaction advisers transaction advisers
Notaries Notaries official record keepers official record keepers
Magistrates & judges Magistrates & judges arbiters arbiters
Faculty
Faculty
Students who major or minor in Criminal justice are taught by ex Students who major or minor in Criminal justice are taught by experienced, professional faculty who perienced, professional faculty who
have extensive experience in criminal justice as well as academi have extensive experience in criminal justice as well as academic credentials. The faculty is active in c credentials. The faculty is active in
preparing and teaching in preparing and teaching in--service training programs and designing and/or attending program service training programs and designing and/or attending programs for in s for in--
service and pre service and pre--service persons which enhances professionalism service persons which enhances professionalism
What lawyers sell
What lawyers sell
(the product) (the product)
Advice Advice
Representation Representation
Documentation Documentation
Other Other
What clients buy
What clients buy
Predictions Predictions
Practical result(s) Practical result(s)
Reliability Reliability
Confidence Confidence
Influence Influence
Honesty Honesty
Value Value
Who are the clients?
Who are the clients?
Corporations and Corporations and
other business types other business types
Government entities Government entities
Associations and Associations and
groups groups
Individuals Individuals
Foreign? Foreign?
Domestic? Domestic?
Obligations to clients
Obligations to clients
Deliver what has been promised Deliver what has been promised
Confidentiality (only the client can Confidentiality (only the client can
say) say)
Loyalty (no conflicts of interest!) Loyalty (no conflicts of interest!)
Safeguard clients interests Safeguard clients interests
Professional responsibility Professional responsibility
nn statutory requirements statutory requirements
nn professional conduct professional conduct
nn ethical conduct ethical conduct
nn integrity integrity
Thinking process: Legal
Thinking process: Legal
Get Get relevant relevant facts facts
Identify Identify issues issues
Determine Determine applicable applicable law and procedure law and procedure
Interpret law in Interpret law in specific circumstances specific circumstances
The law is what is boldly asserted and plausibly The law is what is boldly asserted and plausibly
maintained. maintained.
Law firm revenue
Law firm revenue
Clients pay for Clients pay for
nn attorneys attorneys
nn paralegals paralegals
nn librarians librarians
nn secretaries secretaries
nn other other
Attorneys in other capacities Attorneys in other capacities
nn Trustee Trustee
nn Executrix Executrix
Billing methods
Billing methods
Hourly fees Hourly fees
Retainers Retainers
Fixed fees Fixed fees
Contingency fees Contingency fees
Lodestar Lodestar
Statutory fees Statutory fees
Court awards Court awards
Equity participation Equity participation
Costs
Costs
Personnel Personnel
Real estate Real estate
Equipment Equipment
Technology Technology
Supplies Supplies
Other Other
Organization of services
Organization of services
By area of law By area of law
By area of procedure By area of procedure
By industry By industry
By office location By office location
General practice General practice
Revenue generation
Revenue generation
Attracting new clients Attracting new clients
Maintaining existing relationships Maintaining existing relationships
Public speaking Public speaking
Associations Associations
Publications Publications
Networking Networking
Trend towards professional marketing Trend towards professional marketing
Project planning
Project planning
Lawyers tend to work independently Lawyers tend to work independently
Lawyers tend to put out the fire Lawyers tend to put out the fire
Lawyers rarely focus on process Lawyers rarely focus on process
Associate assignments are often ad hoc Associate assignments are often ad hoc
Planning meetings are not the norm Planning meetings are not the norm
Process has to be flexible enough to accommodate the Process has to be flexible enough to accommodate the
constant change we face in practicing law. constant change we face in practicing law. Anon. Anon.
Client satisfaction
Client satisfaction
Many firms talk about this Many firms talk about this
Few firms are proactive Few firms are proactive
Many firms impute what clients want Many firms impute what clients want
Many lawyers dont communicate Many lawyers dont communicate
Few firms conduct client surveys Few firms conduct client surveys
Risks lawyers face
Risks lawyers face
Client dissatisfaction Client dissatisfaction
Damage to reputation Damage to reputation
Clients disappear Clients disappear
Malpractice claims Malpractice claims
Professional discipline Professional discipline
Disbarment Disbarment
Internal measures of success
Internal measures of success
Objective: Objective:
nn Billable hours Billable hours
nn Collected billings (realization) Collected billings (realization)
nn Caseload Caseload
Subjective: Subjective:
nn Leadership Leadership
nn Knowledge and quality of work Knowledge and quality of work
nn Mentoring Mentoring
nn Respect Respect
External measures of success
External measures of success
Client loyalty Client loyalty
Professional recognition Professional recognition
Innovative practice Innovative practice
High profile clients or matters High profile clients or matters
Positive results Positive results
Publications and scholarship Publications and scholarship
How success is measured
How success is measured
Client feedback Client feedback
nn Responsiveness Responsiveness
nn Timeliness Timeliness
nn Cost Cost
Firm Firm
nn Revenue Revenue
nn Costs Costs
nn New or continuing business New or continuing business
What all this mean?
What all this mean?
Client is king Client is king
Who is your client? Who is your client?
What are their needs? What are their needs?
How can you anticipate their concerns? How can you anticipate their concerns?
What dont you know about an express What dont you know about an express
problem? problem?
How can you find out? How can you find out?
What can you then do? What can you then do?
Staff Challenges
Staff Challenges
You are integral to the firms success, You are integral to the firms success,
often without appreciation often without appreciation
You face major obstacles daily You face major obstacles daily
You need to plan strategically and You need to plan strategically and
tactically tactically
You need to create teamwork among You need to create teamwork among
departments departments
You need to publicize successes You need to publicize successes
Flowchart For Problem Resolution
Flowchart For Problem Resolution
Dont Mess With It!
YES
NO
YES
YOU IDIOT!
NO
Will it Blow Up
In Your Hands?
NO
Look The Other Way
Anyone Else
Knows?
Youre SCREWED!
YES YES
NO
Hide It
Can You Blame
Someone Else?
NO
NO PROBLEM!
Yes
Is It Working?
Did You Mess
With It?
Thank you.
Thank you.
Michael S. Kraft Michael S. Kraft
Kraft Kennedy & Lesser, Inc. Kraft Kennedy & Lesser, Inc.
kraft@kkl.com kraft@kkl.com
212 212- -986 986- -4700 4700