Law Firm SurveysPart One: The Major Surveys Compared
September 25, 2003
This three-part article will summarize that discussion. Part One is a general overview and comparison of the major surveys currently available for U.S. law firms. Part Two will advise further on how to select a survey, and Part Three will explain how to get the most out of survey participation.
Partner Capital: Why Firms Need More in 2003
September 25, 2003
Most law firm partners react skeptically to the suggestion that their capital contributions should go up in 2003. After all, with the cost of borrowing at its lowest level in over 40 years, why should partners invest more capital in the firm, thereby delaying or reducing personal cash flow? Nevertheless, even well managed firms are now likely to need more partner-contributed capital than they did just a few years ago.
Tax Cuts for Law Firms
September 25, 2003
With the compromise-laden Federal tax cut now law, what if any are the implications for law firms? Members of this newsletter's Editorial Board and several other recent contributors were asked to address that question.
Who Will Run Your Franchised Hotel?
September 17, 2003
Management agreements provide the vehicle through which investors in hotels, restaurants, and other commercial properties engage professional managers to operate their properties. The practice began in the lodging industry after the end of World War II when hotel construction boomed in response to demand from middle-class American families for clean, moderately priced travel accommodations ' the same demand that spawned the Holiday Inn chain and other lodging industry franchises. Investors with no experience in hotel management fueled the boom in hotel construction with their capital, but professional managers generated the returns on investment the investors craved.
The Impact of HIPAA Privacy Regulations on Discovery of Plaintiffs' Medical Records
September 02, 2003
When products liability defense counsel first heard of the new privacy regulations issued by the U.S. Department of Health and Human Services under the Health Insurance Portability and Accountability Act of 1996 (HIPAA Privacy Regulations), most counsel probably thought that only their regulatory healthcare colleagues would be affected by these detailed and complicated laws. How great an impact the HIPAA Privacy Regulations will have on product liability litigation in general is yet to be seen, but it is clear that these regulations will have an immediate effect on discovery of medical records. Under the statutory or common law of most states, when a plaintiff files a suit that puts his/her medical or health condition at issue, the plaintiff waives his/her right to privacy, to at least some extent, in his/her medical records. When the HIPAA Privacy Regulations became enforceable on April 14, 2003, this was no longer the case. Because the HIPAA Privacy Regulations provide strict privacy protection for a patient's medical information, even if the patient filed a lawsuit with his/her health at issue, discovery of the patient's medical records could become more difficult for product liability defense counsel. However, defense counsel still will have several options to obtain discovery of a plaintiff's medical records under the HIPAA Privacy Regulations.
The Untapped Potential of IP Finance
September 02, 2003
Over the past few years, business, legal, and accounting authorities have quite rightly pointed out that corporate IP has far greater potential than its owners usually exploit. The consultancy McKinsey & Company has offered that, as a rule of thumb, a company that owns at least 450 patents and spends $50 million or more a year on R&D should possess enough intellectual property to bring some of it to market. Typically, 10% of the patent portfolio could be put to work in this way. McKinsey also suggests that IP assets could generate 5% to 10% of a company's operating income with little initial capital investment. Thus, effective IP-asset management can be equivalent to the improvement that might be expected from a 20% cut in expenses or from a successful acquisition. See Elton JJ, Shah BR, and Voyzey JN, 'Intellectual Property. Partnering for Profit,' The McKinsey Quarterly, 2002, Number 4 Technology.
IT Security: It's Now or Never
September 01, 2003
Information technology security is a critical issue for all law firms. Yet, security initiatives are often dismissed as high cost/low return and put on the back burner. This low priority status persists despite the significant operational and financial impact a security breach would have on a firm. It is only when a major event such as the recent confluence of the Northeast blackout and the Blaster and SoBig worm attacks, or the nefarious actions of a disgruntled employee hit the public consciousness that attention rapidly re-focuses on security matters.
Sarbanes-Oxley: A Wake-up Call for Labor
September 01, 2003
Legislative winds are now stirring to strengthen financial accountability in labor organizations by amending their financial disclosure requirements and by arming the Department of Labor with greater enforcement tools. Labor leaders should learn from the failures of their business counterparts, and not wait for labor scandals to cause a legislative backlash like the Sarbanes-Oxley Act.
Getting the Most from Survey Participation
September 01, 2003
In an insightful Dilbert" cartoon, the boss is reviewing the results from a recent survey with two employees. The survey results being less than desirable, the boss states, "Managers' bonuses are linked to these results. You can be sure we'll make big changes ... to the survey. " Surveys can be a strategic asset and viable financial tool when assessing certain aspects of your firm. Surveys can also be useful in evaluating merger opportunities. Perhaps the best use for survey information is to identify needed improvements and illustrate the benefits of change. Improperly utilized, however, survey data can cause more harm than good. Survey results taken out of context can create unrealistic expectations among partners, foster unhealthy and divisive comparisons between practices or offices, promote unachievable strategic objectives, and generate broad-based anxiety and apprehension.
