Should Your Law Firm Jump on the BI Bandwagon?
November 14, 2005
In the past, Business Intelligence occurred on an ad hoc and informal basis in the legal industry. Before the proliferation of a legal trade press, the Internet (and competitor's Web sites), and market intelligence services, information about clients, prospects, and competitors was likely gained on the golf course, at bar association functions, or through the occasional press release issued by a law firm that was an early adopter of marketing. <br>Now a cottage industry has sprung up to support the burgeoning efforts of law firms to understand how to remain competitive, profitable and viable. As evidence of this, within the past year there have been numerous conferences and seminars aimed at teaching law firm management how to appropriately develop and use Business Intelligence, and a number of products and services are being offered to aid firms in their quest for actionable intelligence.
Technology Challenges In Law Firm Mergers
November 02, 2005
When law firms merge with one another, one of the more significant front-line issues is "Which firm's technology will survive?" When there is a merger (buy-out) by a large firm of a much smaller law firm, the answer seems obvious. But, when there is a merger of equals, or of larger firms (even if not equal in size), the answer is not so clear. And where there is a merger of small firms, things get murkier still. <br>What may be worse is that frequently, the question is not even considered before it is too late to make a smooth transition.
Discount Stock Options As Deferred Compensation
October 31, 2005
Recent legislation has heralded a dramatic shift in the United States federal income tax treatment of nonqualified deferred compensation arrangements. One of the potentially more far-reaching aspects of the legislation is its effect on individuals who receive certain non-statutory stock options for their services. This article focuses on the circumstances under which the Act treats compensatory stock op-tions as nonqualified deferred compensation for federal income tax purposes, the consequences of such treatment, and the resulting practical considerations in dealing with the treatment of certain stock options as nonqualified deferred compensation.
The Best Little Warehouse in Missouri
October 31, 2005
At least two large law firms have now decided to implement Enterprise Resource Planning (ERP) packages (in both cases, software from SAP AG), and are now in some stage of implementation. Anyone who reads the business press is aware that ERP implementations can lead to catastrophic results, as happened not long ago when a well known chocolate company found itself unable to fulfill orders following an ERP implementation. There are also many accounts of companies, especially manufacturing companies, successfully implementing ERPs, with attendant benefits. Clearly, ERPs present a risk/benefit choice for the businesses implementing them. The question I address here is whether the benefits of ERP outweigh the costs and risks for law firms.
DOL's New FLSA Regulations and Recent Opinion Letters
October 31, 2005
The Department of Labor's new Fair Labor Standards Act (FLSA) (Wage and Hour Regulations) regulations, which went into effect Aug. 23, 2004, are an attempt to modernize pay scales, increase employee coverage, and clarify rules for employers. Nevertheless, if one were to judge merely by the sheer number of opinion letters the U.S. Department of Labor has issued since the regulations went into effect, it would seem that the new regulations have generated as much confusion as the previous ones. The DOL has issued 31 opinion letters since the effective date of the new regulations, nearly as many opinion letters as for the entire years 2001, 2002, and 2003. This article will summarize the major changes brought about by the FLSA regulations and examine this recent spate of DOL opinion letters.
Corporate Crisis Management
October 05, 2005
Fielding a Winning Team for Shareholders Wichita, KS, was an unlikely spot for finding metaphors. Sitting in a rental car on the steaming asphalt outside…
Health Savings Accounts: Recent Improvements
October 03, 2005
In his preliminary analysis of this emerging subject in the August 2004 edition our sibling newsletter, <i>Accounting & Financial Planning for Law Firms</i>, Rick Stieglitz noted several key advantages of HSAs for employees: the account accumulates tax-free growth; funds are immediately available for qualified medical expenses; any unused remainder at year's end carries over, rather than being lost; and an employee's account is portable to another employer. HSAs offer tax advantages to employers as well ' if implemented properly. This updated report suggests that HSAs have gotten even more attractive.
For Whom The Bell Tolls: Corporate Data Security Breaches Affect All
October 03, 2005
Names, addresses, Social Security Numbers, and various types of financial information are among the most common casualties in a growing number of data security breaches at leading organizations across the country. It seems that every week, a new corporate data security breach involving the loss or disclosure of personal information is reported in the media. This is a phenomenon that does not discriminate: It touches all businesses, whether retailers, information brokers, financial institutions, universities, or healthcare companies. And thanks to a relatively recent California privacy law requiring that affected individuals be notified of the breach, the press eventually tolls the bell for all to hear. <br>With each revelation, calls have increased for government investigations and new state and federal legislation.
Enlarging the Scope of Disaster Plans
October 03, 2005
Considering how much damage can result from something as innocuous as a faulty sprinkler system, it may be understandable that many law firm disaster planners previously gave their first attention to common threats, and then never got around to considering large-scale disasters.<br>Some firms were convinced as a result of 9/11 that such a patchwork of miscellaneous point solutions was inadequate. For other firms, Hurricane Katrina should drive that point home. While we can't expect disaster plans to protect our firms from all possible risks, we should expand our planning perspective to include more catastrophic scenarios.
<b>Basics Revisited:</b> Investing Your Lump Sum Without Taking Your Lumps
October 03, 2005
Many of our specialist readers are so involved in financial intricacies that it may be difficult for them to answer questions on investment basics from non-initiates. Jim Berliner's clear explanations should be useful not only in advising professionals who earn a large fee but also for any firm member or client who is faced with a major investment decision.
