August 2015

Capital Connection is published monthly for members of the Capital Chapter of the Association of Legal Administrators to provide information for the education and benefit of legal administrators, law office managers, managing partners of law firms, and other law related associations. Capital Connection is not engaged in rendering legal, financial, or tax counseling or advice through this publication.  The contents of all articles, letters, and advertisements published in Capital Connection should not be considered endorsements by the Capital Chapter of ALA nor the opinion expressed therein of any products advertised.   Contributing authors are requested and expected to disclose financial an/or professional interests and affiliations that may influence their writing position. Articles and materials accepted for publication are subject to editing by the editorial team and become property of the Capital Chapter of the Association of Legal Administrators. 

Editor: Jacqueline Moline 
Associate Editors: Paula Serratore; Cindy Conover
Contributing Editors: Beth L. Fowler, CLM; Scott Chatham; Jenna Carter; Joi Jackson; Vanessa G. Partin, MBA, SPHR; Katie Kahn; Courtney Leonard; Brad Vanlandingham; Debbie Foster; Bill Apple; Jessica Mastropietro; Beth Keno, CPC
Newsletter Designed By: Scoti Dodson


In this issue:

President's Message

Picture
Is it just me, or does it seem like the Change of Gavel was not that long ago?  So how can it already be time to start planning for the next chapter year?  This year is flying by, and we have had so many great Lunch and Learn's, QNL's, and section meetings and events, thanks to our education chair, President-Elect Alana Harder Washington and her committee, the section chairs and co-chairs, and of course Paula and Scoti at chapter headquarters -- and there is much more to come!  Obviously, all of these great events don't plan themselves, and the current leadership can't serve forever, so it is time to start the process for recruiting new leaders for the chapter.  Hopefully, you read the email from Alana, who will chair the nominating committee, asking for volunteers to serve on this year's committee.  And if you're like a lot of people, you said to yourself  " I don't have time" or "I'm not qualified" or "somebody else will do it."  Well guess what, none of these things is true! 

First, it doesn't take that much time.  The committee holds a few in-person or conference call meetings during September and October, at which they consider all nominations for the Elect positions on the Executive Committee.  Each committee member is responsible for making several phone calls to interview the candidates and speak with their references.  Once the vetting calls are complete, the committee reconvenes to compile the proposed list of candidates to be presented to the Executive Committee and then to the membership of the chapter.   A few meetings, a few phone calls, and you’re done!

Second, you probably ARE qualified!  If you regularly attend section meetings and/or other chapter events, or if you have previously served in a leadership role for the chapter, you DO qualify, and are just what the chapter needs. We want to be sure the nominating committee reflects the diversity and makeup of our membership, so please consider serving on this important committee.

Third, if everybody says "somebody else will do it," then nobody will. If you haven't raised your hand for anything else, this is a great opportunity to serve on a short-term, but important project, to see first-hand how the process works, and to have a voice in shaping the leadership of the chapter.

Speaking of the leadership of the chapter, the Nomination Process Task Force has been working hard over the last several months to better define and explain the process to our members. We will be scheduling a Town Hall webinar early in September at which the makeup and responsibilities of the Executive Committee will be explained, along with the benefits that come with serving in a leadership role, and all of your questions will be answered. I urge you to learn as much as you can from the emails and webinar over the next several weeks, and to seriously consider nominating yourself or a colleague for a position on the Executive Committee.  Ask anyone who is serving or has served in a leadership role in the chapter and they will tell you that the benefits far outweigh the time commitment.  In order for the chapter to continue to meet the needs of all of our members, we need leaders with fresh ideas and new perspectives -- it could be you!  

New ALA Capital Chapter Members

Pamela C. Wilson
Human Resources Manager
Wilkinson Barker Knauer LLP
2300 N Street NW
Washington, DC 20037
Pwilson@wbklaw.com

Julie Smith, MBA
Director Financial Planning & Analysis
Dickstein Shapiro
880 N. Pollard Street #623
Arlington, VA 22203
smithjulie@dicksteinshapiro.com
Kay Nash
Chief Legal Talent Officer
Wiley Rein LLP
1776 K Street NW
Washington, DC 20006
knash@wileyrein.com

Amber R Lion
HR/Office Administrator
Boies, Schiller & Flexner LLP
5301 Wisconsin Ave NW
8th Floor
Washington, DC 20015
alion@bsfllp.com

rand* construction Spotlight: Implementing Conscious Change in Business

Picture
Successful organizations across the board… have something in common: their ability to promote and manage change.  Companies that survive hardship – both internal and external – and thrive over time require intelligent, insightful strategies to take risks, make progress, and embrace change. There are many moving parts that come into play when leaders make a conscious decision to change. Timing, resources, risk, capacity, manpower, the market, competition… though our workplaces and our companies are always evolving, these are some of the major aspects to consider when mindfully implementing changes in business.

rand* construction has been a general contractor in the DC metro community for over a quarter century. Having established a reputation during that time as a prominent contractor for high-end interior tenant spaces, we have formed strong relationships with law firms, financial institutions, associations, and corporations as our client base. We have built a network of partnerships with architects, engineers, property management and brokerage firms, construction managers, and consultants. We have established processes and systems that enable us to best manage construction and renovation projects, and we have developed operating principles and practices that guide us in achieving goals and exceeding expectations at every opportunity. These partnerships, relationships, processes and principles are at the very core of rand*’s identity and have become pillars of strength for our company.

Those foundational elements at rand*’s core define the organization. Our strengths and opportunities help to determine the risks we take, the changes we implement and the strategies we utilize to protect our company during times of transition and growth. Over the past few years, rand* has made an ambitious and conscientious effort to grow our business into different market niches. Here in the DC Metro region, our most recent successful endeavor has been the development of our portfolio in retail and restaurant construction. 

While much of rand*’s construction knowledge and experience translated to this new type of work, we also recognized the need to modify our approach to these projects in order to maintain our commitment to the highest quality performance and outcome.  In turning this risk into an opportunity, rand* repositioned itself to be a viable GC in a new market of construction.

We hired new employees and recruited current employees to share their expertise in high-end restaurant and retail construction. Through their combined experience and relationships within the market, we were able to competitively and successfully bid work for restaurant and retail clients. Those seasoned in this type of work were able to train and mentor their coworkers in preconstruction, field and office management, and eventually a team was formed specifically for this type of work. Those team members are able to train new/younger employees in this type of work as well.

We also work directly with the client and design team to establish project goals and determine the top priorities of the project. Restaurant and retail spaces are different from interior office spaces in that they are meant to service an alternate audience – the customers of the client. It is imperative for rand* as a GC to deliver a project that holds the expectations of our client’s customers to the highest standard and to exceed those expectations as the builder of the space.

Since the establishment of this “restaurant & retail team”, rand* has completed several notable projects in the DC metro area that exemplify our trademarked commitment to high quality performance, product, and client service. For more information on our newly built restaurant and retail spaces, please visit our website at randcc.com.

SunTrust Legal Specialty Group Spotlight: Is Your Financial Plan Due for a Check-Up?

Picture
Generally, a financial plan sets a course for managing and building wealth over a lifetime. It allows you to define your financial goals, assess your current financial situation and gives you the opportunity to plan what you need to do to achieve those goals. As such, your financial plan is tailored to YOU, what you want in life, and how your finances are going to help you achieve that.

Once your financial plan is in place, it's important to review it at least once a year to make sure it remains current with your changing life circumstances. Given the rapid pace of life, and the ever-changing state of the financial markets, putting off a financial "check-up" can hinder your ability to achieve your financial goals.

Seven Keys to Financial Planning

 Define your financial goals. It's crucial to understand where you want to be in your life, and define your goals accordingly, as the first step in creating your financial plan. Do you want to pay for your kids' education? A vacation property? Buy a business? Leave a legacy? All of these financial goals require careful planning to achieve them.

Eliminate debt from your life. Part of your financial plan will include a thorough examination of your current debt and will highlight ways to reduce or eliminate it, perhaps by refinancing or consolidating.

Manage taxes. With the assistance of your financial planner or tax professional, you can take full advantage of the current tax laws and potentially reduce your estate and/or gift tax burden. 

Determine your cash flow, savings and investing strategies. By looking at all your income and expenses you will be able to decide how much to save and to invest, where that money is going to go, how often, and how you are going to keep it growing.

Stay on top of your asset allocation. Sometimes investors let their portfolios get out of balance, leaving them overweighted in a particular asset class or faced with a cash-heavy portfolio. While cash and cash equivalents (bank accounts, money market funds, CDs, and Treasury Bills) are relatively safe and liquid, and can play an important role in an investment strategy, too much cash may limit your investment income potential. With proper planning, you can seek returns with the potential to outpace inflation while maintaining a diversified portfolio that is aligned with your long-term goals.

Protect yourself and your family. By assessing the risks that you and your loved ones may face, you will be able to make better decisions regarding insurance for life, health, disability, etc. A financial plan will also consider wills, trusts, power of attorneys, and other ways to protect your family against vulnerabilities.

Make your gifts more strategic. While philanthropy is noble in its own right, it can also be advantageous to your overall financial situation when strategically incorporated into your financial plan.


Contact:
Scott D. Chatham
Vice President, Client Advisor
SunTrust Private Wealth Management
Legal Specialty Group
Tel: 202-879-6239
suntrust.com/legal

Scott Chatham, Registered Representative, SunTrust Investment Services, Inc.
© 2015 SunTrust Banks, Inc. SunTrust is a federally registered service mark of SunTrust Banks, Inc.

Investment and Insurance Products:
•Are not FDIC or any other Government Agency Insured •Are not Bank Guaranteed •May Lose Value
SunTrust Bank and its affiliates and the directors, officers, employees and agents of SunTrust Bank and its affiliates (collectively, "SunTrust") are not permitted to give legal or tax advice. Clients of SunTrust should consult with their legal and tax advisors prior to entering into any financial transaction.

SunTrust Private Wealth Management Legal Specialty Group is a marketing name used by SunTrust Banks, Inc. and the following affiliates: Banking and trust products and services, including investment advisory products and services, are provided by SunTrust Bank. Securities, insurance (including annuities) and other investment products and services are offered by SunTrust Investment Services, Inc., an SEC registered investment adviser and broker-dealer, member FINRA, SIPC, and a licensed insurance agency.

These materials are educational in nature. The implications and risks of a transaction may be different from individual to individual based on past estate, gift and income tax strategies employed and each individual's unique financial and familial circumstances and risk tolerances.

Banking and trust products and services are provided by SunTrust Bank. SunTrust Bank may use or offer the services of affiliate companies as well as third party entities to achieve your banking and investment objectives. Where applicable, any affiliations and all pertinent provider information will be disclosed in accompanying agreements and prospectuses.

Vanessa Partin Selected for ALA Committee

Vanessa Partin has been selected to serve on ALA’s 2016 Human Resources Conference Planning Committee.  Please join us in congratulating Vanessa!

July Quarterly Networking Lunch and Our Community, Our Kids

By: Jenna Carter, Vice President of Community Services

On a beautiful, sunny day in July - the 14th, to be exact - the ALA Capital Chapter had its 3rd Quarterly Networking Luncheon of 2015.  On this occasion, the Chapter highlighted its focus on education and recognized the two 2015 recipients of the Toni K. Allen Scholarship. Each recipient was awarded $5,000.

The Chapter has a Foundation set up for charitable giving. Together the Chapter and the Foundation decided to focus all of their support on the Toni K Allen Scholarship Program. This Program grants college scholarships to graduating DC seniors.  Toni K. Allen was one of the original members of the Foundation, a Past President of the Chapter, and a longtime contributor to ALA efforts at the local, regional, and national level.  Toni was a strong advocate for higher education and, thus, the scholarship program is a fitting tribute to her memory.  Over the years, many local charities and college-bound seniors from DC public schools have benefited from our annual fundraiser.  As we celebrate 42 years as a chapter, the tradition continues.

At the QNL we welcomed members and business partners to network and reconnect before the awards presentation.  During the luncheon, the Foundation's Immediate Past President, Alana Washington, and the Capital Chapter’s Vice President of Community Services, Jenna Carter, presented scholarships awarded by our ALA Capital Chapter Foundation to two very deserving young people: Alle Hayes and Jeffrey Enamorado.  Alle Hayes is a graduate of Benjamin Banneker High School and will be attending Emory University in the fall.  Jeffrey Enamorado is a graduate of Columbia Heights Education Campus and plans to attend The Ohio State University in the fall.  

This year we received applications from seven qualified students from four different DC Public schools: Benjamin Banneker High School, Columbia Heights Education Campus, H.D. Woodson High School and Friendship Collegiate Academy.

To help with the task of selecting just two winnters, we had an awesome team of interviewers: Kenia Garner of Pillsbury Winthrop Shaw Pittman LLP, Colleen Brown of Hyman, Phelps & McNamara P.C., Jill Furick of Cohen Milstein Sellers & Toll PLLC, and Jeanette Derby’s team at Legal E.

We also had a great group of volunteers sit on the Scholarship Selection Committee: Jenna Carter of Husch Blackwell LLP, LaVerne Anenia of Millen, White, Zelano & Branigan, P.C., Dot Mooney of Powers Pyles Sutter & Verville PC, Elizabeth Germain of Alston & Bird, Joe Berger, Qeyana Hart of Bracewell & Giuliani LLP, and Katie Parrish of Robert Half Legal.

To further support our scholarship recipients, they were assigned mentors to help them navigate the challenges ahead, to help empower them to succeed in college and to achieve their ambitions. Alle's mentor is Dot Mooney of Powers Pyles Sutter & Verville PC and Jeffrey’s mentor is Frank Schipani of Gilbert LLP.   

As you may know, the scholarship is funded by YOU, the members and business partners of ALACC, and our fundraising efforts are never done.  To get the ball rolling to fund the 2016 scholarships, members from the Capital Chapter’s Executive Board, Foundation Board, and Past Presidents got together prior to the QNL and collectively pledged $2,300.  The group matched the pledges received at the QNL, dollar for dollar. We are happy to announce that we raised a total of $4,200 towards our $10,000 goal!   Great job everyone and thank you for your generosity.  If you want to help us get closer to that $10,000 goal, you can donate now online at http://www.alacapchap.org/main/donate-now/.

If attendees weren’t full on the spirit of charity after seeing the donations pour in, they were after they tasted the assortment of food stations centered on the theme “Best of DC.”  The Adams Morgan Falafel station- YUM! The Capitol Hill roast beef carving station with a make-your-own wedge salad was divine. The Waterfront crab cake was the line that never ended because everyone kept going back for more.  The Columbia Heights pho (pronounced “Fuh”) station was a new and exciting experience for the foodie in me. And you would not miss out on the tempting college themed desserts: mini pecan and peach pies to celebrate Emory, located in Georgia, and an area of chocolate and peanut butter buckeyes and mini-Ohio lemon pies in celebration of Ohio State.  

August 5th: ALACC Ambassador Launch

Picture
The Chapter hosted an informational lunch meeting on August 5th to launch the newly created ALACC Ambassador Program. This program will match incoming members with knowledgeable members who can help answer questions, make introductions, and help facilitate their integration into the Chapter. Want to learn more or sign up to become an Ambassador? Click here.

August 6th: Diversity & Inclusion Seminar

Picture
Joi Jackson, Olsson Frank Weeda Terman Matz PC

On Tuesday, July 21st, members of the ALA Capital Chapter Diversity & Inclusion Committee met in the offices of Shook, Hardy & Bacon for a crash course on sensitivity and unconscious bias in the workplace.  This eye-opening and thought provoking session was led by Veronica F. Adams, a prominent diversity and equity trainer.

One of the first things Ms. Adams taught us was that you can’t do diversity training in 90 minutes – a really good training requires at least a full day, possibly two or more.  However, in the short time allotted, Ms. Adams took us through some exercises that helped to frame the concept that, despite being different, we are also much more alike than we think. 

If we can begin to think of the differences we, as a society, tend to put the most emphasis on -  like race, gender and sexual orientation - in the same way as we think about having a different hair color from the person who sits next to us, perhaps we can begin to make an individual difference in our every day lives. After all, while we may note a person’s hair color, or glasses, or height, we don’t tend to attribute negative connotations about that person based on these differences.   

Ms. Adams went on to discuss the small ways in which each of us can make a difference in order to effect real change.  As she stated, we must start by recognizing our own privilege.  Once we can acknowledge and accept that, we begin to see the inequities faced by those without access to that same privilege.  Change begins when we recognize there is a problem. If we don’t actively seek to improve things, in whichever small ways we can, we are part of the problem.  Ms. Adams helped us see the numerous ways in which those of us with privilege can make a difference. The exercise emphasized critical information that, if I can speak for the group, most of us had not considered.

Armed with the improved knowledge about diversity, privilege, and working towards positive change,  we were able to return to our firms with plenty to think about.  As Office Administrators and HR professionals, we can begin to create a more diverse and inclusive culture in our offices and within our ALA chapter when we take the time to reflect on and acknowledge our unconscious biases, and putting the effort, every day, towards eradicating those biases by embracing our differences.  

Diversity & Inclusion: It's Everyone's Responsibility!

 By: Vanessa G. Partin, MBA, SPHR
Diversity & Inclusion Committee Co-Chair

We want to thank Ruth Frye for sharing her insight with the Chapter on her experience in organizing and implementing various diversity initiatives.  Ruth’s presentation ““Diversity & Inclusion: 60 Tips in 75 Minutes” provided the attendees with a wealth of resources to begin the discussion of establishing a diversity program in the workplace or for determining ways to enhance existing diversity initiatives.  The session was exceptional and provided an opportunity to understand the role we each can play in breaking down the barriers that are created as a result of unconscious bias.  We must take responsibility to teach and correct when the time presents itself to us, either in our work environments or when we are in the grocery store line.  It is also critical to understand, that while some businesses are congratulated for their diversity efforts, many have left out the important inclusion piece. Without inclusion, diversity is merely a numbers game for the sake of looking good in surveys or to clients. 

Why is diversity and inclusion important?  Studies have proven that businesses who fully embrace both elements are far more profitable, find their decision-making efforts more inclusive and their recruiting and retention efforts rewarding.  However, diversity must begin at the top layers of the organization and must not only involve attorneys, but staff as well.  After all the key is inclusion.

For more information on the vast diversity resources provided by the ALA, visit the ALA’s webpage on diversity.  http://www.alanet.org/diversity/. 

To review the slides from the August 6, 2015 presentation, please click here to access and download all

For a more eye-opening view, we suggest that you also visit the Harvard Implicit Association test at https://implicit.harvard.edu/implicit/takeatest.html  and actually take the test.  It takes about 30 minutes and it is very eye opening.

Keno Kozie Spotlight: How Help Desk Happens

Picture
A Day in the Life on the Keno Kozie Support Desk
At Keno Kozie, our help desk concentrates on assisting law firms stay productive 24/7/365.  How do we do this?  Take a look at what one day can look like for an Operational Manager and a Support Analyst to catch a glimpse of some of the tasks and duties that make up the ingredients to consistent, high quality client support.

Q: What is a typical morning like for you at Keno Kozie?

Operational Manager: I arrive around 7 AM during the week, but my job is a 24/7/365 effort; I’m on call around the clock and always available by email and phone. The first thing I do in the morning is review e-mails that came in overnight. I manage 4 team leaders, 24 employees, and 22 client relationships that support thousands of end-users. I check in with each of my team members, and try to make sure that each of my employees is doing well and prepared to handle the expected workload.

Support Analyst: My “morning” starts at 11 am as I’m a swing shift analyst, but my process is the same as my early morning peers.  I get into the office 15 minutes early to open all of my client’s environments. Upon settling in, I always check-in with my peers and team lead to see how the morning has been and make sure I’m aware of any crucial information I need to know before I start taking calls for my customers. Then I sign into the queue and begin to take calls and respond to e-mails for my clients.  
Picture
Q: How do things change throughout the day?

Operational Manager: After I have caught up on everything, my focus shifts to my clients.  Throughout the day, I watch my teams carefully and make sure that any outstanding customer requests and management items are taken care of. I make myself available throughout the day through a variety of mechanisms which include email, instant messaging, a direct dial telephone, cellphone, and built in alerting features to ensure that my employees are setup for success and my clients are satisfied.

System outages, new software rollouts, and office-closures - you name it; events regularly cause our volume to fluctuate tremendously.  My queues require constant observation, management, and adjustment of resources to stay healthy, meet service level agreements, and make sure that all customer requests are being handled swiftly and effectively.  My job is to make sure my team is able to handle the volume of calls and e-mails received on a daily basis and to maintain the communication with our clients necessary to ensure continuity of service and customer success. 

Support Analyst: I spend the majority of my day answering calls and e-mails. I collaborate regularly with other analysts if I am unsure of how to best solve an issue or execute a documented process. After my lunch break, I am often tasked with writing or updating articles for our customer knowledgebases. Everyone at Keno Kozie relies on this system to make sure we have best and most current solutions to resolve common issues in an efficient and reproducible way. 
Picture
Q: How do you wrap up your day at work? 

Operational Manager: Before leaving the office, I always connect with my leads and shift supervisors to ensure they are aware of the status at each of my clients and are in control of the team and the support queues. After I make my rounds, I check to make sure there are no outstanding client requests in my inbox or voicemails before I say goodbye to my team and change my status so that they reach out to me according to after-hours protocols for any urgent needs that come up while I am out of the office.  Throughout the night, I regularly watch for calls or emails from my team members.  My role is a 24 hour effort, and while the team is trained to handle many things on their own, I need to make sure that they can always reach me or another member of our management team to deal with any unusual circumstances, client emergencies or unexpected outages.

Support Analyst: After my afternoon shift break, things often become a bit slower as clients leave for the day, and don’t begin working again until later in the evening. At this point, I focus on maintenance and wrap up tasks between calls to make sure that all my work is effectively tied up or handed-off before I leave for the day.  Open tickets must be resolved, escalated or handed-off to a team member.  Training assignments and knowledgebase articles must be posted, updated or completed appropriately.  My day wraps up at 7:30 pm as I transfer responsibility and open issues to my teammates. 

Washington Express Spotlight: Office Freight!
Picture
When was the last time you needed to deliver some boxes within hours? Or to transport office furniture or IT equipment on the spot with no advance notice? Or AV equipment or trial site materials requiring specific timing and coordination, and it needed to be done right away? 

Washington Express has heard our clients and we have answered with our newest service line, Washington Express Office Freight. Our ‘white glove’ freight division combines the speed, convenience and security of a local courier with the resources and scale of a traditional transport company. This allows us to offer a new, nimble and cost effective means of transporting your office “freight” locally or long distance with little to no advanced notice.
 
The Washington Express Office Freight Advantage
Like our courier division, Washington Express Office Freight operates 24/7/365 and gives you an immediate proof of delivery email when completed.  We can provide quick pick-ups, pinpoint deliveries, packing and crating, cross dock and warehousing services with the same level of professionalism and responsiveness that you are accustomed to with Washington Express.

Materials Handled
So what can we deliver? Anything from office furniture, attorney files, personal belongings, IT and AV equipment, trial site materials, conference and convention supplies, palletized freight--basically, you name it and we will take it! Our “freight guys” can also pack and crate everything for safe delivery of fragile items. If you need labor just to move things within your office, we can provide that too, under your direction and supervision.  Or if you just want some “stuff” hauled away, you can call and we can do it and on the same day.

Check out our website for details or contact us  for a quote. Generally, no on site visit by us is needed. We hope to hear from you soon!

Billing & Collections

By: Brad Vanlandingham, Rippe & Kingson, LLC

To keep the flow of the firm’s business uninterrupted, it is of immeasurable importance to execute billing and collections as efficiently as possible.  Utilization of our industries technology advancements and taking a more proactive approach with billing and accounts receivable can be extremely advantageous to the Firm’s bottom line.

In order to successfully streamline your Firm’s billing procedures, you must evaluate every step of the process – from preparation to presentation to delivery to accessibility.

Luckily the days of converting “chits” or three carbon paper time entries into a bill on a typewriter is long behind us.  Could paper pre-bills and bills be as well?  Fifteen years ago, we would have thought printing and mailing was the only way.  Today, the speed of professional looking paperless billing is a possible reality via XML, PDF, and e-Billing functionality.

While it is still fairly common to print pre-bills for Attorneys to markup with pen, consider the time and other valuable resources that could be saved if all distribution and edits were handled electronically.

The same could be said for electronic invoicing.  The sending and receiving of invoices electronically is a much more convenient process for everyone involved, often resulting in quicker turnaround.  Happy Clients are paying Clients.    

If you are still preparing and delivering paper bills, are they easily accessible when Clients have questions?  Are they in an overfilled filing cabinet down the hall?  Answering a simple request could take several minutes in searching for the correct invoice alone.   

There is a better way.  Electronic bills are forever within a system that can be quickly accessed anytime, anywhere.

Implementing one or more of the following capabilities can easily improve the Firm’s billing process:
  •  XML Invoicing
  • Electronic/PDF delivery of pre-bills
  • Electronic/PDF editing of pre-bills
  • Online billing
  • Electronic/PDF delivery of invoices
Furthermore, effective billing practices can set a good example for Clients and support a foundation for a more effective collections process.  If you are efficient in your billing procedures, you may actually be teaching Clients to be the same with their payments.

Collection of outstanding AR does not have to be a nail biting experience; it can be a fairly simple process.  The best practice for AR Management starts when the Client is engaged….not when the bill is 120 days old. 

Implementing one or more of the following methods can easily improve the Firm’s collection process:
  • Credit Limits  – require them for new Clients forcing an Originating Attorney to think about Financial risk associated with taking on this new Client
  • Partner Access to Client Statistics via Time Entry – when a Client is on the phone asking for a favor, check their current AR balances and aging, as well as their last 12 months trend
  • An effective AR Management Module – initiate a collections database and event tracking methodology and utilize the functionality for easy retrieval of all invoice PDFs 
  • “2 Minute Drill” Collection Drives – providing an easy mechanism to budget a collection push (e.g., 4th Quarter) toward the Firm’s FYE objectives
  • AR Reminder Statements – Providing Clients with monthly Statements of Accounts
  • Automated Email Electronic follow up notices - Email messages per Aging Period along with PDF Invoice copies attached to each Email
Of course, all of the above is easier said than done.  Keep in mind, however, that each small step you take in improving billing and/or collections can quickly increase your Firm’s bottom line.  All of your billing and collections procedures should be done with the goal of utmost efficiency, and the flow of the firm’s business improves as a result!

Brad Vanlandingham
Marketing Representative
Rippe & Kingston, LLC
Mobile Phone:  859.803.6620
Office Phone:    513.977.4874

A Commitment to Start and Keep All Year Long

By: Debbie Foster, Affinity Consulting

Despite the fact that the year is more than half over, it is never too late to commit to doing something new – especially something that is guaranteed to reduce the amount of headaches in your billing department, ensure that you will capture more and all of the time you spend working with clients, and improve your cash flow. 

For some reason, billing and collections are still one of the most dreaded tasks I hear about in law firms all over the country.  From time tracking, to reviewing prebills, to getting final bills out, to insisting clients pay their bills, these critical tasks just do not get the time and attention they deserve.  It does not have to be hard…it just has to be done.  Here are 12 Commandments of Billing/Collections:

1.       Thou shall enter time contemporaneously throughout the day.  There is simply no question that your time will be more accurate and that you will capture more billable time throughout the month using this simple, basic time keeping strategy.  They say it takes time to form a habit, and this is one habit you will not regret forming!

2.       Thou shall take 5 minutes at the end of the day, before running out the door to review time and ensure it is all entered.  Many of us have a difficult time remembering what we had for lunch yesterday.  Remembering every call you made, every email you composed or responded to, or every conversation you had tomorrow, next week, or next month is just not a practical way to capture and document your time and work.

3.       Thou shall use capital letters, punctuation and follow all grammar rules when entering time. Why?  Because if you don’t, someone else is going to have to go in and clean up your time entries.  It is just as easy to type it right than it is to type it wrong.  Make sure you are taking advantage of any features your timekeeping program has for automating common phrases, or even entire time entries.

4.       Thou shall set a time (second business day of the new month) to run prebills for review, and stick to that date.  So often I hear about the waiting game – we cannot run our prebills because 3 of our timekeepers have not entered their time yet. 

5.       Thou shall attempt to electronically review prebills instead of wasting paper.  With just a little bit of training, you can annotate a pdf with notes and comments and return prebills reviewed electronically.  Even better, see if your billing system allows you to review and correct time in the program, eliminating the need for someone else to decipher your edits.

6.       If commandment 5 cannot be kept, thou shall print prebills on the ugliest color paper you can find (makes them easy to find and people want them out of their office as quickly as possible).  White paper blends with the other white paper and it easily ignored.  That is not the case for neon pink paper.

7.       Thou shall make prebill reviews a priority by setting a deadline and sticking to it (within 24 hours of receiving them). One of the chief complaints we get from billing administrators is related to waiting on the return of prebills. Do your best not to have people waiting on you.

8.      Thou shall produce easy to understand, easy to read bills for your client.  Take pride in the finished product – if you have always wanted to change up your bills, do it now!  At the same time, strive to make your billing process as simple as possible.  For example, if you are still composing, printing and signing cover letters for your bills, consider if that really adds value to the client and if you believe it does not, stop doing it.

9.     Thou shall create and mail/email final bills by a chosen deadline every single month (by the 5th business day of the month at the latest).  Clients like to know when they will get their bills.  In addition, billing is one of the way you communicate to your client what is going on with their case.  If bills are not sent on a regular cycle, that communication is skewed.

10.   Thou shall establish a due date for invoices and communicate that very clearly to clients.  It is best to do this in your engagement letter, and then verbally when working with a new client. 

11.   Thou shall have a protocol in place for dealing with collections.  Suggestion:  if your bills are due on receipt, send a past due notice 15-20 days after bills go out, call on day 25, send a letter on day 30, etc.  Whatever you do, have a documented process, and stick to it.  The longer a client goes without paying a bill, the less likely it it that they will pay it.

12.   THOU SHALL NOT WORK FOR FREE – I know you would much rather…spend time with your family…golf…read a book…go to the movies…lay on the couch…go for a walk…anything, really.  But, working for free should just not be an option.

You will not regret making a renewed commitment to the process of billing and collections.  It is better for you, for your firm, for your clients and it sure to impact the bottom line in a positive way.

Debbie Foster, Partner
Affinity Consulting Group
727-544-5400
727-264-5052 (direct dial)
dfoster@affinityconsulting.com

State Taxes: Impact of State Taxes on You and Your Firm

By: Bill Apple, Partner, and Jessica Mastropietro, Senior Manager, of Baker Tilly Virchow Krause, LLP

As law firms continue to expand their reach both geographically with new offices and electronically with work for clients at a distance, the consideration of the impact of state and local taxes on the firm and the partners/shareholders is too often overlooked. The choice of entity for tax purposes is also important as corporations are taxed differently than partnerships and LLPs. It is important to note that each state/jurisdiction has its own set of laws and regulations as it relates to nexus, sourcing, apportionment, individual and entity-level taxes, personal property tax, and other state and local taxes.

The determination of whether a firm or an individual has a filing requirement or owes taxes to a jurisdiction involves three steps. First, a firm should determine if they have nexus within a particular state/jurisdiction. Nexus or doing business is defined as the quality or quantity of business connections that must exist between a political jurisdiction and a taxpayer before the jurisdiction can impose a filing requirement for either sales or income tax. In simpler terms, nexus equals presence. The rules and regulations for nexus are separate from the regulations around the sourcing of revenues and apportioning of income, and vary amongst the states. Some states have a physical presence requirement while other states have enacted the concept of economic presence/nexus. The concept of economic nexus is a new and growing trend among states. So what is economic nexus? Economic nexus is generating revenues from clients located within the state and is defined differently by the various states/jurisdictions. Some states have a bright-line test (for example: factor presence test with the revenue factor of $500,000 or $350,000) while others still have a subjective standard for determining economic nexus. Congress attempted to pass legislation establishing a national nexus standard several times over the last decade, but to date, has not been successful.

Once a firm determines they have sufficient nexus in a state/jurisdiction, then the firm can move to step two in the process, sourcing of revenues. There are two different methods for sourcing of revenues: 1) cost-of-performance, the traditional approach, and 2) market-based sourcing, the approach more states are trending toward. Cost-of-performance is the traditional approach which means sourcing revenues where the work was performed and generally is done based on an all or nothing approach or pro rata approach based on the state/jurisdiction’s regulations. A market-based approach is based off the concept of where the benefit of the service is received by the client. This is a more complicated method and each state/jurisdiction has its own definition of what this means.  The current lack of regulations makes it difficult to accurately track revenues on a market basis.

Finally, the last step is determining the method of apportioning income, apportionment, to the state/jurisdiction. Three-factor apportionment equally weighted is the traditional method (property, payroll, and sales), however, the trend is moving to a single sales factor rather than the traditional method. Many states/jurisdictions again define each of the factors differently and each uses a different method for apportionment (weighting of the factors, inclusion of nonbusiness income, partner distributions, etc.).

In addition to the state income taxes a firm may be subject, there may be other state/local tax issues that could affect a firm. For example, entity-level tax or franchise tax, sales and use tax, property tax, municipality tax, gross receipts tax, and unclaimed property rules are all imposed by various states, cities, counties, or other jurisdictions.

In conclusion, state/jurisdiction taxes are complicated, changing regularly, and should be tracked at the firm level, state by state. It is important to gain an understanding of where your attorneys and employees are traveling, where work is being performed, and even where clients are located to be able to evaluate and address the varying state regulations and requirements. 

We would love to elaborate further. Please join us for a more detailed information session related to the various state laws and regulations as well as recent changes by states/jurisdictions as it relates to nexus, sourcing of revenues, and other state/jurisdiction law and regulation updates at a fall seminar on Tuesday, October 27th. If you have any questions, please reach out to Bill Apple at bill.apple@bakertilly.com or Jessica Mastropietro at jessica.mastropietro@bakertilly.com.

The Top 6 "Don'ts" in Law Firm Collections

Law firm culture is steeped in tradition and, over time, some of that tradition just creates bad habits. Bad habits are never good for business.  What separates successful law firms from struggling law firms is their ability to recognize and their willingness to change those habits that are no longer serving the firm.  Below are 6 bad habits that successful firms don’t have. 

Don’t start working without a signed engagement letter and some money up front.  Require retainers on all files.  Attorneys often just want to get started on the case. They often don’t make the engagement letter and the retainer the first priority.    Working without an engagement letter leaves the attorney and the firm exposed.  Starting work on a file without a retainer is bad business.  Very few products or services can be purchased today without a substantial deposit or full payment.  Why are law firms the exception? Remember, if a prospective client is reluctant to pay you a retainer at the onset of the engagement, you can easily guess what collecting will be like once you start billing them. 

Don’t give them another thirty days to pay you.  Change the terms on your invoices to “Due Upon Receipt”.   Most firms don’t get their bills out until the second or third week of the month.  Considering the time and expenses are from the previous month, firms have already given their clients thirty days to pay.  Using “Due Upon Receipt” encourages the payer to pay your invoice in the next check run.  Remember, the firm’s goal is to be paid as quickly as possible for the services they have already provided.   Your firm is not in the lending business.

Don’t make it hard to pay you.   Be sure that the invoice total, any past due amount, and the total due is on the front of your invoice.   Keep the details in the back.   For many clients, if the amount seems right, they will pay it without going through all the entries.   If you put the details in the front, the client is encouraged to review each one.   Now that your client knows how much they owe, make it as convenient as possible to pay you.  Accept credit cards and ACH payments.  Even if your firm doesn’t advertise it on the current invoice, it is a great option for collecting on past due accounts.  Remember, the firm’s goal is to be paid as quickly as possible for the services they have already provided.  

Don’t wait to start collecting.  Unlike fine wine, invoices do not get better with age.  Accounts receivable depreciation is the silent destroyer of profit margin and revenue.   Remember, it is far easier and less expensive to collect accounts that are fifteen days past due rather than 120.   

Don’t hold a year-end sale.  For many firms, collection efforts start in earnest about sixty days before their fiscal year end.  The year-end collection push often ends with “let’s make a deal.”   It rewards the wrong behaviors and eventually becomes part of the firm’s culture.   Clients and staff ultimately figure this out.   It trains the staff (including the attorneys) that collections can wait until the end of the year.  It trains the client that if they hold off paying, there will be a reward at the end (i.e. a discount).  Remember, you train your clients over time as to how you want to be paid. 

Don’t worry.  Clients don’t leave because you have asked them to pay.  Clients leave because of poor work or poor service.  Attorneys often worry that if they ask for payment, they won’t get the additional promised work.  Of course the firm will get the work if the client isn’t being asked to pay.  Free is a good deal.   Remember, non-paying clients will stay with you forever. 

Eliminating bad habits is never easy.  It always takes time.  Fortunately, for the firms that are willing to follow through and persevere, the results can be rewarding. 

Beth Keno, CPC, has been working with law firms for over fifteen years.  She is a results-oriented consultant, certified coach and trainer who consults and coaches firms and individual attorneys on the management, strategy and business development aspects of their business.  Beth can be reached at 312.857.3570 or Beth@KenoConsulting.com. www.KenoConsulting.com.  

Administrative Committees

Communications and Media Relations
As members of the Newsletter and Media Relations Committee, Chapter members participate in producing the award-winning Capital Connection. Members gather to brainstorm new ideas for editorial themes for upcoming editions. The newsletter reports Chapter business activities such as Section and Committee news and provides information about upcoming educational and other events. It also includes articles of interest to members and other legal management personnel, collected, authored and/or edited by members of the committee. This committee also works with other legal associations and the media to ensure that ALA and the Capital Chapter are represented in the legal industry. The Newsletter Committee welcomes new members.

Contact: Jacqueline Moline, jam@carmaloney.com; Paula Serratore, pserratore@alacapchap.org

Diversity & Inclusion
The Capital Chapter of the Association of Legal Administrators is a professional organization comprised of administrative managers from private, corporate and government legal organizations in the Washington DC, Northern Virginia and suburban Maryland areas.  ALACC embraces and encourages diversity within the legal profession. We value diversity and those initiatives that promote it and look to partner with affiliated professional legal organizations to advance diversity. We not only strive to raise awareness, but to increase our sensitivity in the area of diversity and more closely reflect the diversity of our community at large. Having a more inclusive and diverse legal community will improve the quality of our organizations workforce and respond to our client’s requirements for diversity. As a committee we are very interested in your thoughts, comments, and suggestions about achieving greater diversity in our Chapter, our profession, and in our firms. 

Contact: Monique Terrell (Chair), mterrell@stradley.com; Vanessa Partin (Co-Chair), vanessa.partin@kirkland.com
Salary Survey
The Salary Survey Committee is responsible for maintaining, updating and running the local survey each year. They review the positions listed, the job descriptions, and the benefits questions to ensure that the survey remains relevant to the end users. The members of the committee also promote the survey within the Chapter to stimulate participation. In addition, the committee is tasked with selling the license to the survey software to other chapters within ALA for use in their locales. They also provide technical support and logistical guidance to those chapters who purchase and utilize our survey software.

Contact: Jeff Delcher (Chair), jdelcher@wbklaw.com; Sheri Shifflett (Co-Chair), cshifflett@saul.com
Listserv: finance@lists.firmseek.com


Member Experience
The Member Experience Committee will establish a welcoming environment for new members to be integrated into the Chapter through a formal Ambassador Program. Ambassadors will provide support and guidance to new members through their first 12 months of membership, ensuring new members realize benefits of membership and become ambassadors of the Chapter. 

Contact: Kenia Garner (Chair), kenia.garner@pillsburylaw.com; Barbara Kernus (Co-Chair), bkernus@gsblaw.com


Educational Sections

Branch Office Administrators
The Branch Office Adminsitrators Section focuses on a broad range of topics of interest to local adminisraotrs who must coordinate with other officees of their firms. The Section's monthly luncheon meetings, held on the second Tuesday of the month, provide a venue for members to discuss issues of common interest, share ideas, and network. Members are encouraged to raise topics and to recommend speakers.

Contact: Richard Gibson (Chair), rgibson@nixonpeabody.com; Wendy Iversen (Co-Chair), iversen@ballardspahr.com
Listserv: branchofcadmin@lists.firmseek.com
Intellectual Property (IP)
The Intellectual Property (IP) Section focuses on all aspects of legal management as it pertains to the IP Administrator. The group discusses the complexity of the ever-changing IP environment and how to effectively create and apply IP specific, non-legal procedures in both boutique and general practice firms. The Section's monthly meetings, held the third Tuesday, are primarily lunch meetings and every third month is a dinner meeting. 

Contact: Kristine Miller (Chair), kmiller@nixonpeabody.com; Sharon Smith (Co-Chair), smith.sharon@arentfox.com
Listserv: ipadmin@lists.firmseek.com
Human Resources
The Human Resources Section operates as a venue for educational information on global human resources topics and issues. While the Section comprises mostly HR professionals, any member is invited to participate. The Section meets the second Wednesday of every month and often has either industry speakers or roundtable discussions on topics such as recruiting, benefits, strategic planning, performance management, career pathing, retention and more!

Contact: Connie Summers (Chair), connie.summers@threecrownsllp.com; Carmen C. Weissbratten (Co-Chair), cweissbratten@hpm.com
Listserv: hr@lists.firmseek.com

Office Operations Management
The members of the Office Operations Management Section represent a cross section of legal expertise from functional administrators to branch office managers. The Office Operations Management Section (OOMS) meets on the fourth Wednesday of every month to discuss operations related hot topics. We welcome all members to join the section, especially if you are an administrator in a small law office and you have to wear multiple hats. We can provide you with many best practices to run your operation smoothly.

Contact:  Jeffery Cole (Chair), jeffery.l.cole@squirepb.com; Jamaine Yarborough (Co-Chair), jyarborough@mckoolsmith.com
Listserv: ooms@lists.firmseek.com

Small Firm Management
The purpose of the Small Firm Management Section is to provide Administrators of law firms with 35 or fewer attorneys educational opportunities through vendor presentations, idea sharing and open forums specifically designed for those who work in smaller firms. The Small Firm Management Section meets the 4th Tuesday of the month at host law firms.

Contact: Emily Christianson (Chair), echristianson@relmanlaw.com; Julie Tomey (Co-Chair), tomey@thewbkfirm.com
Listserv: smallfirmadmin@lists.firmseek.com

Technology
The Technology Section is looking for members to join the group for lively discussions about practical situations we all face daily in the information technology world. With ever-changing IT needs and issues, we will look at our firms' policies and procedures and help develop best practices and speak of the many concerns we all have. Even if you are not in the IT field,  your experiences and opinions will help us in bringing all departments of a law firm together and working on the same page.

Contact: Frank Schipani (Chair), schipanif@gotofirm.com; Kenny Mitchell (Co-Chair), kmitchell@wbklaw.com 
Listserv: alacaptech@lists.firmseek.com