lawyers - managing your risk by building great client relationships

Managing Your Risk by Building Great Client Relationships

Presented 07/20/12 by Peggy E. GruenkeLawBizCOO

Eastside Lawyers - July 20, 2012 2

Goals for Today

Give you ideas and tools to help you be proactive about avoiding a malpractice claim and to help you grow your practice by creating habits

focused on building great client relationships.


Get it in Writing

Clearly identify terms of engagem

ent

Ask how you are doing

Ask for feedback as matter progresses

Don’t annoy your

clients

Return phone

calls and emails

Send them copies of important

documents

Document, Document, Document

Record advice or

instructions that involve

significant issues or outcomes

Memorialized

communications help confirm

what was said or done

Communication


Manage Expectations

Not just at start but throughout

matter:Discuss

outcomes, how long, fees, expenses

Meet or Beat Deadlines

Set realistic deadlines;

Under promise, over

deliver; Don’t

procrastinate

Get the $ Up Front

Get a retainer and replenish it.

Stop Work if No Payments

Management


Inadequate Investigation

Dig a little Deeper;

Identify all issues and Concerns;Make sure client has

disclosed all information

Conflicts of Interest

More costly to defend and indemnify;

Conflict between

current or past clients;

Conflict when attorney has

personal interest.

Failure to Know or

Apply the Law

Don’t dabble in

areas of law

Use your referral network

Other Areas


Added Benefits

Gain access to better malpractice insurance◦ Insurance companies can identify a firm with

good policies and procedures in placeHappy clients give more referralsHappy clients are less time consumingHappy clients pay their bills= You’ll be more profitable____________________________________Side note:Client surveys – do them and follow-up with both

the good and the bad (ask for Google Reviews)


The Ball is in Your CourtIt’s a process you will continue to

develop and perfect.You’ll get more for your risk

management efforts by focusing on improving client communication and getting things done on time.


Communi-cate

ManageGrow


Create a Process that’s Habit Forming

1. Client Intake and Selection2. Conflict Checks3. Fee Agreement Contracts

◦ Get them & get them signed before you start

4. Non-Engagement, DisEngagement and Thank You Letters

5. Managing Client Documents ◦ Your Responsibilities


Client Intake & Selection1. Develop a Potential Client Info

Sheet◦Use staff to screen initial calls◦Form contains:

Name, address, phone number, email Nature of call or legal need being sought Who referred the caller Have you already worked with an attorney Disclose initial consultation fee

how much and how will they pay In Outlook Contacts, set-up a Folder called

“Prospective Clients” and enter all info here


Client Intake & Selection (con’t)

If prospect will not give you this info

Client Screening Goals◦Will they be a good client Background check for any

prior/pending lawsuits Ask for a initial consult fee to test

the waters◦First step in risk management


Client Intake & Selection (con’t)◦Did not pass the Gut Check

Follow-up with a phone call or letter

2. Set-Up Initial Client Meeting Passed Screening Process

◦Goals: Set expectations Clarifies financial obligations Time spent here will save you and your staff

time in the future Second step in managing your risk



2. Set-Up Initial Client Meeting ◦First step to establishing a great client

relationship◦Set a comfortable atmosphere for this

exchange of info How did you hear about us Did you have trouble finding the office Focus on casual questions to get a feel for

personality



Start with a Client Packet (review packet sample)

◦Client Intake Form◦Firm information sheet for client◦Sample Invoice◦Sample or real fee agreement

contract◦Firm Brochure


Client Intake & Selection (con’t)Discuss the type of case

Course of action Possible Outcomes How long things take Type of documents needed Show a visual flowchart of case steps

MindMeister

Walk thru fee agreement contract◦Have the financial discussion

What fees will be charged



◦Types of charges which may appear without client involvement: Indirect Expenses Direct Expenses

◦How the retainer works◦How they will be billed◦Who to call for questions on bill◦What happens when account goes

past due



Benefits of this initial meeting:◦Sets context of the working relationship

and reduces client stress◦Saves attorney and staff hours answering

calls and questions ◦Reduces client frustration and will

encourage clients to speak to others in the office

◦Clarifies financial obligations and consequences

◦Provides written standards which can be referred to when needed


Fee Agreement ContractsFirst piece of written

communication between you and the client◦Types:

Pro Bono, Flat Fee, Hourly, Contingent

Use as a Tool for:◦Client service◦Financial Management◦Risk Management


Fee Agreement ContractsClient Service

◦Gives you the opportunity at the outset to communicate effectively with your client

◦Instills client confidence◦An informed client is a more satisfied

client◦More likely to pay on time


Fee Agreement Contracts

Finance Management◦Clients who understand billing

process are more likely to pay on time

◦A well crafted fee agreement contract allows you to terminate relationship when client does not pay


Fee Agreement ContractsRisk Management

◦A signed fee agreement contract is a legal contract with your client

◦Reduces possibility of misunderstandings that can lead to malpractice claim

◦A client who does not sign and return promptly, with requested retainer, is a sign of a high risk client

Show Client Tracker Spreadsheet


Communication, Communication, Communication

Lack of communication is most common bar

grievance complaint

Every communication contains 3 elements:◦Information – Managing Your

Services◦Service – Client Development◦Growing Your Practice


Non-Engagement vs. Disengagement vs.

End of Representation Letters

Non-Engagement: ◦Lawyer never actually undertakes

representation of client

Disengagement: ◦Officially ends a representation which

has been undertaken

End of Representation or Thank You Letters: ◦A marketing tool



End of Representation LettersNon-Engagement Letters

◦ Avoids the problem of the “unintended client” and potential malpractice claims

◦ What to include in the letter Must clearly state that the lawyer has not

been engaged by and does not represent the client in the matter

Notify the would-be client that there may be time limitations that apply to their matter and they should seek legal advice from another attorney



End of Representation LettersNon-Engagement Letters (con’t):

◦When to use a non-engagement letter Anytime you have had contact with a

potential client and either the lawyer or the prospective client determines that the lawyer will not be moving forward with representation.

When a client has not responded to the lawyer’s request to return the signed fee agreement contract or pay initial retainer


Non-Engagement vs. Disengagement vs. End of Representation Letters

End of Representation or Thank You Letters◦Officially ends representation which has

been undertaken by the attorney◦Writing a thank you letter - a routine part

of your file closing procedure◦A thank you letter at the end of

representation is the ideal way to: Assign an end date to your representation Remind clients of any remaining actions they need

to take List the original documents you have enclosed



End of Representation LettersA thank you letter at the end of

representation is the ideal way to:

Remind clients of your file retention Invite clients to comment on their

experience with your firm - Survey Offer to be of service in the future Express your gratitude for the confidence

the client has placed in you


Non-Engagement vs. Disengagement vs. End of Representation Letters

Disengagement Letters◦Sent when relationship has

deteriorated◦Client does not pay bills◦Lawyer has withdrawn from case


Managing Client Documents

When clients drop off documents◦Do not keep◦Scan and return to client while they are in

the office◦Document what and when they dropped off

and that you returned originals to themFiling systems – electronic and physicalDocument management policies

Include retention policy in fee agreement and any end of representation letters


Where to get more information

www.abanet.org◦Law Practice Management Section◦Solo/Small Firm Division

Subscribe to blogs◦www.practicepro.ca◦"Avoid A Claim" Blog◦ www.myrisk411.com

Know your Ohio Professional Rules of Conduct

Eastside LawyersManaging Your Risk by Building Great Client Relationships

PRESENTED JULY 20, 2012BY: PEGGY E. GRUENKELAWBIZCOO

lawyers - managing your risk by building great client relationships

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