Asked and AnsweredBy John W. Olmstead, MBA, Ph.D, CMCQ. Our firm has been struggling for the past couple years. We have lost three key institutional clients, had partner defections to other law firm, and have suffered financially. We were a 40 attorney firm- six years later we are ten. We simply must improve profitability. What areas of our overhead should we attack first?A. Many law firms waste considerable time trying to find ways to cut a pie that is too small up differently by implementation of new compensation systems or increasing the size of the pie by decreasing costs. While unnecessary expenses should be reduced - once they are reduced a repeated effort to slash costs proves fruitless as a strategy to increase the firm pie. The vast majority of law firm expenses are fixed or production-related. The percentage of costs that are discretionary is low, typically in the 20-30 percent range, and the number of dollars available for savings is small. The available dollars available for reduction disappear after a year or two of cost-cutting, leaving the firm with dealing with the effects of further cuts on production capacity. For example:
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February 1, 2012 |
Practice News
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January 31, 2012 |
Practice News
Chief Justice Thomas L. Kilbride announced on Tuesday that the Illinois Supreme Court has approved the application from the 14th Judicial Circuit in northwestern Illinois to allow news media cameras in trial courtrooms in the state for the first time.Chief Judge Jeffrey W. O’Connor of the 14th Circuit applied to the Supreme Court for approval last week, one day after Chief Justice Kilbride announced that an experimental program was unanimously approved by the seven justices on the Court.The 14th Circuit is comprised of Henry, Mercer, Rock Island and Whiteside counties."Today's Order is a historic one," said Chief Justice Kilbride. "For the first time in state history, citizens not physically present will be able to see and hear proceedings in our trial courts. My colleagues and I an-nounced this change in policy hoping to promote greater openness and accountability. But we must carefully balance the goal of openness with the rights of defendants and parties to have fair trials."This pilot project will allow us to test the policy we have put in place and see if it is workable in Illinois, or if any changes need to be made before moving toward a full statewide policy. My colleagues and I are thankful for the 14th Circuit and Chief Judge O'Connor's willingness to serve in this pilot project. We look forward to their results."In his formal request to the Court for approval, Chief Judge O’Connor noted that the news media in the area are already familiar with broadcasting trial proceedings because Iowa, just across the Mississippi River, has allowed cameras in courtrooms since 1979, and media have aired court coverage in the Quad Cities area, which includes Illinois communities.
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January 30, 2012
The attorney general's office and a circuit court judge describe steps they're taking to help prevent debtors from being unfairly jailed for failure to pay. Find out more in the February Illinois Bar Journal.
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January 30, 2012
In January 2012, the ISBA and the Association of Corporate Counsel filed an amicus curiae brief in the Illinois Supreme Court objecting to a broad application of the subject matter waiver of the attorney-client privilege in the context of business transaction negotiations. The case is Center Partners v. Growth Head GP, Supreme Court No. 113107. Read the ISBA’s brief. Read the Court’s opinion.
- January 27, 2012 | ISBA News
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January 26, 2012 |
Practice News
ISBA Director of Legislative Affairs Jim Covington reviews bills in Springfield of interest to ISBA members. This week he covers: House bill 4077 (New crime), House Bill 4129 (Administrative support orders), House Bill 3943 (Eavesdropping) and House Bill 4098 (Judicial campaigns and disqualification). More information on each bill is available below the video.1 comment (Most recent January 27, 2012)
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January 26, 2012 |
ISBA News
Illinois Bar Association President John G. Locallo (left) presents a mock copy of the 100th anniversary of the Illinois Bar Journal to Chicago History Museum President Gary T. Johnson on Wednesday.An actual copy of the magazine was donated to the museum for its archives.
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January 26, 2012 |
Practice News
Asked and AnsweredBy John W. Olmstead, MBA, Ph.D, CMCOver the last two weeks I responded to a question concerning starting a new law practice and I outlined the first to phases of start-up. Eventually, you must address and face Phase III.Phase III – Partnership – Internal/Other FirmEventually the question of partnership arises – whether sooner based upon the need or desire to transition an associate into a partnership or to add a practice area by acquiring a lateral partner with his/her book of business. Maybe you are thinking about merging with another firm. Or maybe you have been solo or a sole owner for your entire career and are now contemplating retirement and are looking for a succession/exit strategy and now must either bring in a partner, merge with another firm, or sell your practice. Partnership with another attorney creates another set of interpersonal dynamics and another set of skills that will need to be developed at this stage of your practice.
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January 26, 2012
More clients -- and lawyers for that matter -- are looking for value-based alternatives to the billable hour. The good news? They can be a win-win for attorney and client. Read all about it in the February Illinois Bar Journal.1 comment (Most recent January 26, 2012)
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January 24, 2012 |
Practice News
Chief Justice Thomas L. Kilbride announced on Tuesday that the Supreme Court has approved a policy for a pilot project to allow news cameras and electronic news recording in Illinois trial courtrooms for the first time. Read the order for extended media coverage.The policy is effective immediately and invites the Circuit Courts in the state to apply for approval from the Supreme Court to take part in the experimental program. Once a Circuit is approved by the Supreme Court, media may request to electronically cover eligible cases in that Circuit."This is another step to bring more transparency and more accountability to the Illinois court system," said Chief Justice Kilbride. "The provisions of this new policy keep discretion in the chief circuit judge and the trial judge to assure that a fair and impartial trial is not compromised, yet affords a closer look at the workings of our court system to the public through the eyes of the electronic news media and news photographers."I am thankful to all of my fellow justices on the Court for giving a willing ear, thoughtful consideration and unanimous approval to this experiment. It is new to Illinois, but has been standard practice in many other states. I am confident that through the diligence of our chief circuit judges and our trial judges, along with the professionalism of the news media, that it may become a standard practice in our state too."1 comment (Most recent January 27, 2012)