Legal Trends Report - osbplf.org Trend… · Live Events Manager at Clio. Former Office Manager for...
Transcript of Legal Trends Report - osbplf.org Trend… · Live Events Manager at Clio. Former Office Manager for...
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PresenterEmily van SiereveldLive Events Manager at Clio
Former Office Manager for Immigration Law Firm in the Pacific Northwest
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Agenda1. Get excited
2. Introduction + Methodology
3. 2017 LTR review● Let’s talk money● Client Time● What about vacation?
4. Questions?
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Part I:Get Excited
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So many questions!
Starting a firm
What type of practice?
Where should I practice?
How much should I charge?
How much will I make?
How do I get clients?
Trying to expand your firm
How do I get more inquiries?
How do I get contracts ?
Should I change my rates?
Where should I expand?
When should I take vacation?
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Pop Quiz:
What is the day with the most billable hours entered?
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Part II:Introduction & Methodology
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How is this different from the other surveys?
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• 60,000 Clio users
• Survey of 2,915 attorneys
• Survey of 2,002 Consumers
Where does the data come from?
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So… You look at our data?
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Why is this useful?
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Strategic Decision Making
Frame the question
Gather information
Evaluate
Decide
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Part III:2017 LTR Review: Key Data Points
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Let’s talk money
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Questions we can address in this section
How much should I charge?
How much can I expect
to make?
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Rates
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Billable Hour Index
Across the USA (as of May 2017)
• Average law firm rate: $240/hour;
• Average lawyer rate: $260/hour;
• Average non-lawyer rate: $149/hour.
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Billable Rates by Practice Area
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Billable Rates by Practice Area
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Billable Hour IndexUrban versus Rural
• Delivered using US Census Bureau classifications.
• Average urban lawyer rate: $267/hour
• Average rural lawyer rate: $213/hour;
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Top 10 MSAs
Billable Hour Index
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Real Hourly RatesBy State
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Largest differencesReal Hourly Rates
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Fee Structures
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Key Performance Indicators
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Utilization Rate
Realization Rate
Collection Rate
Key KPIs - The Lawyer’s Funnel
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Hours worked
8 Hours
2.3 hours
Hours billed
5.7 Hours
????
KPIs
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Utilization Rate by State
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Realization Rates by State
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Collection Rates by State
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Collection Rates by Practice Area
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Utilization Rate: 29%
Realization Rate: 82%
Collection Rate: 86%
Key KPIs - The Lawyer’s Funnel
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Tip # 1Know your Utilization Rate
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Collection Rates
• Client lacks the funds to pay (44%);
• Client has adequate funds but payment is still late (31%);
• 25% of firms mail bills / 29% rely on checks;
• Firms accepting credit card payments are paid 40% faster.
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Impact of Trust AccountsOn Realization and Collection Rates
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Tip # 2Consider using Trust
Accounts
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16% 16% 15% 11% 6% 33%
48% Administrative Tasks
33% Business Development
Licensing and CLE
Office Admin Billing Configuring
Technology Collections
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Monetary Value of a Matter
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Revenue CollectedPer matter, by practice area
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Questions we can address in this section
How much should I charge?
How much can I expect
to make?
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How much should I charge?
$200 is the average for attorneys in the state
Review the 2017 Legal Trend Report for Practice Area specific Rates
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How much can I expect to make?
89% = $409.40
90% = $368.46
30% = $460
$95,799.60 a year
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Client Time
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Questions we can address in this section
How do I get (more) clients?
Why won’t clients sign
up?
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Cost of Acquiring Clients 41%
91%
2 Hours a day on finding clients
Say they would spend more time on finding clients
Of firms cannot calculate a return on their marketing
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How do consumers find a lawyer?
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What are potential clients looking for?
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Questions we can address in this section
How do I get (more)
inquiries?
How do I convert calls to contracts?
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How do I get (more) inquiries?
Focus on getting clients to review/refer you
To friends and family
OnlineYelpGoogleAvvo
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Tip # 3Monitor Your Online
Reviews
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How do I convert calls to contracts?
Respond to the initial call/email immediately
Offer free initial consults
Offer fixed fees
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Future client expectations
Text and email communications
Document Sharing
Online payments Credit Cards
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Tip # 4Use Technology to Provide Superior Customer Service
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What about vacation?
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Questions we can address in this section
When should I take vacation?
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Seasonality by Practice Area
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How can I use this information in my firm?
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Frame the question
Gather information
Evaluate
DecideStrategic Decision Making
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The estimated average value of a family law matter is $3165
How much can I afford to spend to acquire this case and still be profitable?
Are the matters I am working below, at or above this benchmark?
If I decided to offer an alternative fee arrangement, how would I price it?
How many new matters do I need in order to reach my revenue targets?
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Tip # 5Determine the Value of
your Matters
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Tip # 6Use Technology to reduce time spent on administrative tasks
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Questions?