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.
Business Development: The Ethical Boundaries
October 03, 2005
In recent years, business development has meant different things in different segments of the American legal community. To some attorneys, extensive media campaigns and billboards are the preferred method. To others, in the mass tort context for example, the aggressive pursuit of victims and their families has been all too commonplace. Elsewhere, Web sites and computer chat rooms have supplemented or supplanted the traditional firm brochures and client seminars. <br>In reaction to these trends, a number of jurisdictions have revamped their business development ethics rules in recent years. Unfortunately, the necessarily "one size fits all" approach to explicit rules has led to some curious and counterintuitive results. In states that forbid direct in person contacts with non-clients who aren't lawyers, for example, it may make sense to prevent attorneys from badgering widows and orphans. But these same rules likewise prevent lawyers in such states from telephoning a sophisticated, educated company president.
Staying Competitive in the Lateral Partner Market
October 03, 2005
Part One, last month, discussed how firms can stay competitive through lateral partner recruiting. This month, the article continues with more advice, and stresses the importance of telling a candidate why he or she should join your firm.
<b>Op Ed</b> Extreme Makeover: Law Firm Edition
October 03, 2005
While doing my research for the MLF 50, there was a moment in time when it suddenly became clear to me that, for the most part, law firm management still doesn't understand marketing and what it can ' and more importantly cannot ' do for a firm. When it comes to marketing, lawyers are still in the "everyone else is doing it so we better do it too" mode. Without regard to actually making a concerted effort to understand marketing, the unfinished agenda of law firm marketing programs spills out on to the streets and are left at the curb of every city and town in the United States. <br>Let's face facts. There may be 50 firms that are doing some great things that will impact their respective firms; but in reality, most marketing programs are doomed to fail because of the lack of commitment and vision on the part of the partnership and the management of law firms.
Substance Over Style As a Winning Combination
October 03, 2005
It is unfortunate that firms do not fully understand or appreciate the importance of marketing and communications, but nevertheless continue to throw money at their programs without analyzing their needs. The firms that made the list were chosen on the basis of their accomplishments and not as much about their staffing or budgets. While these aspects were taken into consideration, the number of staffers and the budgets did not affect the final listing. Some firms actually do quite a bit more with less staff and less money. As a veteran of law firm marketing and communications, I felt extremely confident in including these firms because I know what they are about and I know their people. The valuation of all the firms is reflective of programs that are differentiators in the world of law firms and in many ways mirror Corporate America's marketing programs. <br>Some of the more important aspects of several marketing and communications programs that struck a chord as having well thought-out and meaningful programs that provide a glimpse into the substance over style world of law firm marketing and communications programs.
The KPMG Tax Shelter Prosecutions
October 03, 2005
On Aug. 29, 2005, the Department of Justice, the IRS and KPMG LLP (KPMG) announced that an agreement had been reached with the U.S. Attorney's Office for the Southern District of New York resolving the Grand Jury investigation into tax shelters designed, developed and sold by KPMG from 1996 to 2002 and related conduct. The settlement also resolved the IRS's examination of these activities. KPMG and the government entered into a deferred prosecution agreement (DPA), pursuant to which KPMG acknowledged responsibility for engaging in a massive tax fraud conspiracy that generated at least $11 billion in fraudulent tax losses, which cost the government at least $2.5 billion in evaded taxes.
Standing Near the Cliff Edge
September 06, 2005
There is a tsunami wave coming to law firms caused by an earthquake out there called value billing. Every law firm, small to large, will be affected. The wave will wipe out and suck out to sea the old guild culture, organizational structure, the products and services, and the compensation systems. Although the idea has been around since the publication of books in 1989 and 1992, titled Beyond the Billable Hour and Win-Win Billing Strategies, respectively, there has been little progress throughout the legal profession. Lawyers still expect to bill by the hour based upon the false assumption that effort equals value. Clients are changing their views of value added. We are entering a new era where law firms must change the way they must serve clients and value partner contributions.
Where Are the Gaps In Professional Development?
September 06, 2005
The legal profession is experiencing a renewed interest in professional development at many levels, as we predicted would occur when the situation changed from a buyers' to a sellers' market in the pursuit of talent. Not only are firms and their clients seeing an increase in work with a better economy, but also the change in the demographic picture as the large cohort of baby boomer senior lawyers start to transition out is significantly influencing the demand and requirements for professional development. More is happening on the training front; however, important gaps between what is being offered and what lawyers need in terms of skill and fulfilling of client needs are still evident.
