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  Capital Connection

February 2017

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. Links to Capital Connection may not be shared without permission from the Chapter. ​

Editor: Jacqueline Moline 
Associate Editors: Paula Serratore; Cindy Conover
Contributing Editors: Barbara Mannix; Jake Krocheski; Andrew Hallam; Jason Levin; Craig Church; Adams & Martin Group;
 ​Arnold Sanow, MBA, CSP
Newsletter Designed By: Jessica Davis


In this issue:
  • President's Message
  • New and Returning ALA Capital Chapter Members
  • Members on the Move
  • Congratulations, Melody Watson!
  • Diversity & Inclusion: February 2017 Diversity Observances
  • The Most Frequently Asked Questions about Accounts Receivable Management
  • Spotlight: HITT Contracting, Diamond Business Partner
  • New GPS Coordinates – Transitioning Associates Beyond Law Firms
  • Welcome 2017 Business Partners!
  • Green Tip of the Month
  • Spotlight: Adams & Martin Group, Gold Business Partner
  • Breathing New Life into Ageing Receivables
  • 8 Ways to Handle Bullies at Work
  • Antitrust Guidelines
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President's Message

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I would have to say that the past month, (and February is shaping up to be the same), has been particularly challenging it seems on all fronts.  I am sure each of you have had months like this where you wonder if you are making a difference at all.  We wonder why we have the positions we do. It would be nice to have a job that at 5:30 p.m. we left it at the door.  Well, we do not have those jobs.  We have the job that interrupts dinner, kids' basketball games and anything else we might want to do (like sleep).  We have a job where you make a decision and if you are lucky, 50% of the people are happy and 50% are upset.
 
I do this job because I like the challenges it brings.  I like working with people.  I like the joy it brings when I get it right.  I like thinking through a problem. I like facing the tough issues and being strong enough to face my decisions head on.  I have not always made the right decision. There are some decisions I look back on and wish I had one more piece of the puzzle to make a better choice.  If you are having a month or two like me, don’t let it beat you up.  This is why we are the right people for the job.  If it was easy, anyone could be a law firm administrator - and we all know not everyone can do this job.  This message is my own therapy session to remind myself that even when it is tough I still love what I do.  I hope you do as well.

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Barbara Mannix
 

New and Returning ALA Capital Chapter Members

Tabatha Stephanie Harris
Assistant Office Administrator/ IT Liaison
Duncan, Weinberg, Genzer & Pembroke
1615 M St., N.W.
Suite 800
Washington, DC 20036
tsh@dwgp.com
 
Kim S. Coates
Office Administrator
Munger, Tolles & Olson LLP
1155 F St., N.W.
7th Floor
Washington, DC 20004
kim.coates@mto.com
Patricia H. Mysliwski
Executive Director
Rini O'Neil, PC
1200 New Hampshire, N.W.
Suite 600
Washington, DC 20036
pmysliwski@rinioneil.com
 
Melissa M. Braford
Executive Director
Delaney McKinney LLP
5425 Wisconsin Ave.
#401
Chevy Chase, MD 20815
mbraford@delaneymckinney.com
​​
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Members on the Move

Please join us in wishing the following members well in their new positions!
Greg Fudge
Office Operations Administrator
Baker, Donelson, Bearman, Caldwell & Berkowitz, PC
1401 H St., N.W.
Suite 500
Washington, D.C. 20005
 gfudge@bakerdonelson.com
 
Heather Kurey
Office Administrator
Banner & Witcoff, Ltd
1100 13th St N.W.
Suite 1200
Washington, DC 20005
hkurey@bannerwitcoff.com
 
Adrienne M. Corrothers
Facilities Office Service Manager
King & Spalding, LLP
1700 Pennsylvania Avenue, N.W.
Washington, DC 20006-4704
acorrothers@kslaw.com
 
Ashley Squires McCabe
HR Manager
King & Spalding LLP
1700 Pennsylvania Ave N.W.
Washington, DC 20006
amccabe@kslaw.com
​
Andrew George
Director of Pricing & Practice Analysis
Arnold & Porter Kaye Scholer LLP
601 Massachusetts Ave., N.W.
Washington, DC 20001
andrew.george@apks.com
 
Catherine Kalimon
Office Manager
KaiserDillon PLLC
1401 K St., N.W.
Suite 600
Washington, DC 20005
ckalimon@kaiserdillon.com
 
Lula L. Ivey
Human Resources Director
Nossaman LLP
1666 K Street, N.W.
Washington, DC 90017
livey@nossaman.com
​
 

Congratulations, Melody Watson!

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The Chapter would like to congratulate Melody R. Watson, the 2017 winner of the Ed Ross Annual Conference Scholarship! Melody is the Director of Administration for Gray Plant Mooty’s Washington, D.C. office.  She has over 25 years of experience in legal administration and a MBA in business administration.   Melody has been an active member of the ALA Capital Chapter since moving to Washington, DC from Minneapolis, MN in 2005.  She has served as Small Firm Chair/Co-Chair in 2014/2015, a member of the 2016 Nominating Committee and member of the Diversity and Inclusion Committee.  She also mentors new ALACC members through the Ambassador program.  Away from work, Melody enjoys spending time with her family, going to jazz concerts and shopping.  

Thank you to HITT Contracting, our Diamond Business Partner, for sponsoring the Ed Ross Scholarship!

 

February 2017 Diversity Observances

February is Black History Month in the United States and Canada. Since 1976, the month has been designated to remember the contributions of people of the African Diaspora.
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February 1: National Freedom Day, which celebrates the signing of the 13th Amendment, which abolished slavery in 1865.

February 11:  Lantern Festival is the first significant feast after Chinese New Year, so called because the most important activity during the night of the event is watching various wonderful Chinese lanterns.

February 11: TuB’shevat is a Jewish holiday recognizing “The New Year of the Trees.” It is celebrated on the fifteenth day of the Hebrew month of Shevat. In Israel, the flowering of the almond tree usually coincides with this holiday, which is observed by planting trees and eating dried fruits and nuts.

February 15: Nirvana Day, the commemoration of Buddha’s death at the age of 80, when he reached the zenith of Nirvana. February 8 is an alternative date of observance.

February 20: President’s Day is a federally recognized celebration of George Washington’s birthday, as well as every president proceeding after Washington.

February 25: Maha Shivaratri, a Hindu holiday that honors Shiva, one of the Hindu deities.

February 26-29: Intercalary Days for people of the Baha’i faith. At this time, days are added to the Baha’i calendar to maintain their solar calendar. Intercalary days are observed with gift giving, special acts of charity, and preparation for the fasting that precedes the New Year.

February 27: Losar is the Tibetan Buddhist New Year, in which is a time of renewal through sacred and secular practices.
​
February 28: Mardi Gras is the last day for Catholics to indulge—and often overindulge—before Ash Wednesday starts the sober weeks of fasting that come with Lent.
 

The Most Frequently Asked Questions about
Accounts Receivable Management

Jake Krocheski
President, Client Connection

​
Every law firm is different, but nearly all of them share common accounts receivable challenges.  To help firms address their collection problems, we have compiled a list of the questions we hear most frequently from law firms, and offer our answers;
 
Question:  How should we evaluate our firm’s accounts receivable management needs and strategy to ensure we are making progress?
 
Answer:  Ask yourselves – are we doing the right job, or do our processes, policies and procedures exist only on paper or in theory?  All firms should take the time and effort to evaluate if they have A/R management best practices in place.  The key questions to ask are:

  • Do you have the appropriate governance and leadership structure?
  • Do you have meaningful reports and information?
  • How are the attorneys managing their A/R and are they spending enough time on their collection efforts?
  • Do you have the right administrative staff in place, and are they doing the right work the right way?
  • Are you measuring their performance by results they are achieving?
  • Is the firm regularly collecting its older, difficult A/R?
 
Question:  What role should firm leadership play in A/R management and collection efforts?
 
Answer:  Effective receivables management needs to start from the top.  Leadership needs to tell the attorneys to address their collections, but also understand the need sometimes to use other resources to help them achieve results.  Start with a self-evaluation to figure out what the firm is doing right and what you could be doing better.  Take stock of what you are doing – and why – and evaluate what is and is not working.  Look at everything, including how your firm historically has managed its receivables, to determine where changes need to be made based on today’s legal profession and how clients pay.  Assess whether you have the right people, with the right skills, in place to do the job.  This includes both attorneys and A/R staff. 
 
Question:  We have policies and procedures for our attorneys to follow.  Why are they not working?
 
Answer:  While the financial management sector of a law firm wants to have strong black-and-white procedures that are common in most businesses, there are so many complicated transactions and relationships that do not lend themselves to black-and-white procedures.  Have written procedures in place concerning accounts receivable management, and communicate expectations on collections to the attorneys.  However, the procedures need to be workable, and there need to be exceptions, which should be monitored closely and not be seen as a way to avoid firm collection policies and rules.  Giving too much individual autonomy to the attorneys is often the root of a firm’s A/R problems.
 
Firm leadership must help attorneys understand specific actions to take to ensure payment, give them a time frame for getting accounts collected, and provide the right professional support to help them.
 
Question:  How can we best overcome the backlog of our older, difficult A/R?
 
Answer:  These receivables must be actively pursued until they are paid or determined to be uncollectable.  But do not expect payment without substantial effort on the part of the firm.  There must be dedicated efforts, with status reports going to leadership to ensure progress is being made.  Typically, firms focus their efforts on those clients that pay timely and avoid working with older accounts because they take time and are often not pleasant to deal with.  Consistent follow-up efforts are the key to making progress with these types of accounts. 

Question: What kind of A/R management information should we be looking at?

Answer:  A/R reports have to give firm leadership real, actionable information; they need to show that collection activity is moving forward and progress is being made on each account.  Detailed reports should provide information on whether accounts are actively being pursued, what the payment status is, who is pursuing collections and what success they are having, why clients are not paying, and what steps are being taken to get them to pay.

Question:   How should we evaluate administrative staff dedicated to managing and collecting our A/R?

Answer:  The staff should not be evaluated on how well they keep the attorneys happy by getting copies of bills and reports; anybody can do such administrative work. Rather, determine what age group of receivables they are working: is their success with good-paying clients that just need reminding, or are they making collecting older, difficult accounts the focus of their efforts?  Also, determine how many direct contacts they make daily with clients and how many accounts they are handling.  Most importantly, determine how many actual dollars they are collecting, especially the older, difficult accounts that continue to age. 

Question:  How can we put an A/R management process in place while respecting our attorneys’ concerns about hurting their client relationships?

Answer:  Law firms lose clients by doing poor work or by failing to deliver client service, not by asking clients to pay their bills.  Managing receivables will not hurt the relationship as long as it is handled professionally.  In today’s economy – and in the face of changing law firm economics – it is a best practice to contact clients about unpaid bills.  And do not be reluctant to hire professional staff with experience in accounts receivable management for the legal profession.

Question:  How can we help clients understand payment expectations and train them to pay timely?

Answer:  Because law firms are doing business in a different world and making adjustments accordingly, it also requires that they routinely communicate with their clients about unpaid bills to ensure timely payment or resolve problem issues.  Firms must institute steady, professional follow-up of unpaid bills to secure dates of when payment can be expected.  By showing clients that the firm is regularly contacting them and monitoring their payment status, they will learn that you are well-aware of their bills and that you expect payment. 

Question:  What are the main problems law firms are experiencing with the slowdown in payments?

Answer:  Cash flow problems and hoarding cash are the main reasons why clients do not pay or pay slowly.  They understand that they can ease cash flow problems by delaying payment or not paying at all.  They may claim that they are not satisfied with the services provided or are unhappy with the results.  They may also experience “sticker shock” when they expect to receive a bill of a certain size and a much larger one arrives.  Additionally, the growth of e-billing and the greater length of time needed to resolve e-bill issues with clients has caused many firms to reevaluate their collection issues by separating e-bill and non e-bill collections.

Question:  How do we prioritize our collection efforts throughout the year instead of waiting until the last couple of months?

Answer:  Throughout the year, stop tolerating “good clients” who just don’t pay their bills.  Although waiting until year-end may work for some institutional clients that typically pay then, many clients require much more effort throughout the year.  Measure monthly revenue projections, but more importantly, be realistic about whether the firm is underachieving in its collections goals and if the firm has developed bad collection habits.  Help your lawyers understand that when they see problems with older and difficult A/R later in the year, many of these problems actually started early in the year -- but there was nothing done about them.
​
Jake Krocheski is President of Client Connections.  He has more than 25 years of experience as a management consultant, working with law firms.  Client Connection assists law firms of all sizes throughout the United States by furnishing accounts receivable management services and developing practical receivable programs. He can be reached at jakek@clientci.com.
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HITT Contracting Spotlight: Let There Be Light!

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Andrew Hallam, LEED AP
Assistant Project Manager, Law Firms Division, HITT Contracting Inc. 


​When is the last time you said ‘last one out, turn off the lights’? If someone told you to hit the lights on the way out, you may have to look really hard to find a single light that isn’t automated.  Lighting Controls have come a long way in the last few years.  Automated lighting keeps energy bills down and lengthens the lifetime of the bulbs.  In addition, it lowers an office’s carbon footprint. That is the basic goal of light automation.  A few important benefits that additional lighting control measures can provide are extension of the lighting ballast lifetime, a more inviting work place for the end-user, minimization of glare and reduction and more consistency and predictability of lighting.  Our team at HITT Contracting’s Law Firms Division has extensive knowledge of the multifaceted world of lighting controls and can make sure your office is as energy efficient as possible in a budget conscience way.

Daylight
Offices have evolved from formal and closed (dark wood and no natural light) to bright and open (glass fronts and fewer drywall partitions). One tool to consider would be including daylight sensors in your project to get the most out of the space.  Daylight sensors work by informing a zone of light fixtures how much sunlight is already in a room and adjusting the light levels accordingly.  Let’s say you are moving into a building that is under construction and the building will be a large glass box.  All of that light coming in can and should be put to good use. Are the spaces nicely lit or overexposed? How much control should the occupants have over their lighting?  Does that control override the daylight sensor and negate the design?  All valid questions to consider and explore.  Generally, people are more productive and will feel more connected if daylight is a constant presence in their office or workspace.

Conference Room Lighting
What can really make a conference room a fun and collaborative workplace?  The answer could be a simple dimmer switch.  The function of a conference room can differ depending on the size and shape.  They can be used for depositions, meetings, collaboration, presentations, video conferences, entertainment or lunches.   That is why many systems are designed with that flexibility in mind.  Smaller rooms may not need a higher end Grafik Eye or “crazy” Lutron Quantum systems.  The Grafik Eye system may contain multiple scenes and cost more budget dollars.  On the Lutron Quantum system, in some cases we find end users don’t love the interface and they are too complicated for the staff. There are many options that can be utilized with a single switch but still provide multiple lighting levels.  Communicate with your designer and contractor early in the design process on how you intend to use your conference rooms.  They will ensure that the functionality of the space is utilized with the best lighting controls. 

Digital Control and Future Adjustments
Making everyone happy and comfortable in their everyday working environment is something we strive for at HITT. We may be asked to come up with value engineering options when an elaborate system is designed. Depending on local codes it may be as easy as installing a digital network based system that controls anywhere from a large group of lights to a single light fixture.  Depending on the overall building system, certain types of lighting control systems could be inefficient.  Timing of employee arrivals and departures can play a huge role in the design of the system.  Post move adjustments can be made if the proposed assumptions don’t line up with the flow of the new office layout.  Those can be made with the help of your contractor.
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With proper budgeting, planning, and execution, a new or revitalized space can create an environment that leads to higher productivity and increased employee satisfaction.   If one of the keys to designing your new office is improving its allure to both employee and clients, a lighting control design should not be seen as a secondary aspect of a successful rebranding or modernization.  HITT welcomes the opportunity to partner with your firm to make the perfect office a reality. If you have any questions or would like to discuss further, please do not hesitate to contact us.

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New GPS Coordinates – Transitioning Associates Beyond Law Firms

Jason Levin
Founder, Ready, Set, Launch, LLC

While working at vault.com from 2008 to 2011, I observed an incredible transformation in the legal industry.  Firms reevaluated their staffing needs out of economic necessity. Conversations in law firms ended by deciding “who stays?” and “whom do we need to transition?” Delivering these messages to impacted attorneys was even harder.

Today, while perhaps less frequent, letting go of a law firm associate remains an unpleasant decision.  It “took a village” to support that emerging associate’s entry into the law firm community, and that same “village” is needed upon his or her exit. A career services office leveraged significant resources to support that law student with on campus interview preparation and eventual summer associateship success. Law firm recruitment and development professionals invested significant resources in attracting, onboarding and professionally developing that student.

Once an exit message is delivered, the impacted associate needs this supportive community as he or she transitions.  The emotions that come with a layoff are significant.  In addition to the initial shock and anger, the subsequent self-doubt and looming uncertainty can become overwhelming.  Whether or not the firm has dedicated resources (internal career coaches, alumni relations staff, external transition support), there is still a vital role that the broader NALP community can continue to play.

Some exiting associates see their first step as getting on the phone with the next legal recruiter, but this may not be their best first option. When associates take the next available opening without self-reflection, they increase the likelihood their next role won’t work out, which can ultimately earn them the stigma of “firm hopping.”   It is not uncommon for an associate to say:
  • “I just don’t know where to begin”
  • “Working for a firm is the only option I considered.”
  • “Who is really going to hire me now?”

​Go Back to the Future

In being laid off, associates have a rare opportunity to take an honest look at their careers by focusing on professional self-awareness.  Their priority should be taking the time to walk through their own resumes and be honest with themselves about:
  • Why they did what they did at each turn;  
  • What motivated the associate at each moment in time;
  • How that has changed;
  • What was enjoyable about the associates’ firm experience and role; and
  • What skills were not being used in that role that the associate would hope to use in my next opportunity.
 
By taking a step back and focusing on natural strengths, interests, and values, transitioning attorneys provide themselves with criteria to target industries, employers and roles where they would likely be more successful.  It is the antithesis of saying “I’ll do anything.”
 
Firm professionals can encourage departing associates to explore career options in-house and government; this also benefits the firm’s alumni relations and ability to build future client relationships.  Additionally, the marketplace has expanded to include alternative careers beyond traditional legal settings (e.g., legal technology, legal publishing, politics, advocacy, human resources, and venture backed start-ups).  As law school CSOs continue to program around alternative / non-traditional careers, firms can proactively stay in the loop by partnering on these programs.  To help support these discussions, firm professionals can encourage their exiting associates to have discussions with their alumni advisors from both their law school and undergraduate institutions.
 
Coordinating resources to manage the transition
Transitioning attorneys who might have struggled initiating relationships within their firm might face similar problems initiating relationships in their transition. Firm professionals with broad relationships in their firms can facilitate introductions to current/former attorneys who would be open to supporting the exiting associate.  Additionally, firm professionals can also coordinate with CSOs to see what resources may be available to exiting attorneys to support their transitions.
 
Smooth transitions benefit the firm with positive alumni relations
Creating an uplifting exit for the transitioning associate is not just good for the associate; it’s good for the firm, too. Providing support and resources during this time of transition can strengthen the firm’s employer brand in the legal marketplace. It can also create positive alumni relations both for the firm and for the transitioning associate.

Published in NALP Bulletin – February 2017

Jason Levin, a career and outplacement coach, founded Ready, Set, Launch, LLC® after a career in brand management at Unilever, consulting at Accenture, and employer branding sales at Vault.com.
 

Welcome 2017 Business Partners!

The Capital Chapter would like to welcome our new and returning Business Partners! 

We are extremely grateful to our Business Partners - vendors who offer products and services to the legal community and have committed to support the Chapter's mission - for the funding they contribute to help the Chapter accomplish its goals and provide quality programs and services to our members. 

We are also grateful to our Business Partners for the insight and expertise they provide. Capital Chapter sponsors are sophisticated business professionals who understand the importance of building long-term relationships and understand the industry that they serve. In addition to offering products and services, business partners are an excellent resource for learning more about legal trends, best practices and general information.


To learn more about our 2017 Business Partners (and start shopping around for vendors to help you dive into your New Year projects), visit our Business Partner Directory. 

2017 ALACC Business Partners

Diamond Level
HITT Contracting Inc.

Platinum Level
rand* Construction Corporation

Gold Level
Adams & Martin Group
Hilltop Consultants, Inc
Miller's Supplies at Work

Robert Half Legal
Royal Cup Coffee
Washington Express LLC

Silver Level
All Covered
Ames & Gough Company
Baker Tilly Virchow Krause, LLP
Canteen Refreshment Services
Connoisseur Travel Ltd
CORT
Dembo Jones, P.C.
DTI
FSO Onsite Outsourcing

Gensler
HiTouch Business Services/Rentacrate
Humanscale
HYL Architecture & Heath Design Strategy Lab
IST Management Services, Inc.
JK Moving Services
Jamison Risk Services
Kastle Systems
Keno Kozie Associates
Legal Placements, Inc.
MCS Group, The
milliCare by EBC Carpet Services Corp.
mindSHIFT Technologies, Inc.
MOI, Inc
National Office Systems
Nuance Communications, Inc.
Optimal Networks, Inc.
Ricoh Legal
Spacesaver Interiors
Tabush Group
The Ford Agency, Inc.
Total Document Solutions Inc.
U.S. Legal Support, Inc.
W.B. Mason Co.

Associate Level
ABA Retirement Funds
ADC Corp.
ALL-STATE LEGAL
Harper Engraving and Printing
Impact Office
Palmer Legal Staffing
Rippe & Kingston
Sensei Enterprises, Inc.
 

Green Tip of the Month

Craig Church
Vice President Sales, Miller's Supplies at Work

If you are using bio-degradable paper products in your break room as part of your firm’s green initiative, don’t forget the trash bag.  Most can liners used in the office are made of plastic and aren’t bio-degradable, so anything you put in the plastic liner won’t break down.  An essential part of composting is air, water and organisms found naturally in nature.  When you wrap bio-degradable items in plastic, you keep these key elements out, stopping the process.  The easy answer….use bio-degradable bags!
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Adams & Martin Group Spotlight: 
Owning your Engagement: 2 Simple Ways to Start an Engagement Revolution

We’ve entered a new era of Google-sized work perks. Employees have come to expect things like free lunch, happy hours, more paid vacation days, etc. Employers utilize these perks to increase engagement, and therefore, increasing retention, safety, customer satisfaction, productivity, attendance, and profit.
 
Yet, engagement levels in the legal industry remain low. Only 1 in 4 legal professionals are currently engaged at work.  And the estimated cost to attract, recruit, train, and retain new law firm hires ranges from $500,000 to $700,000 during the first three years.
 
In the legal industry, you are bound by your clients’ and organization’s needs, but there is still plenty of room to be engaged.
 
The overarching organization has an immense responsibility when it comes to engagement, but so does the individual. Most factors of engagement do not depend on ping pong tables and free lunches -- they revolve around how we treat one another in the workplace.
 
Ask yourself, what are you doing for the person next to you? What do you do to make them want to come to work each day? Now you may be thinking, that’s not my responsibility.  But if not you, then who?
 
This coincides with the concept of Servant Leadership, where leadership is defined by what you do for others. This is a relatively new form of leadership in the business world, but it’s catching on because it’s effective. When your organization is looking for its next generation of leadership, they don’t want to see how you’re serving yourself, they want to see what you’re going to provide for the individuals and the organization.
 
Even if you don’t have a managerial role, you are a leader. Your daily actions influence those around you. And the way you influence those around you will contribute to your own engagement, leading to a self-sustaining environment of engagement.
 
Here are two non-managerial, non-policy oriented methods that you can increase engagement starting tomorrow.
 
Recognition: Recognition has a direct correlation with engagement, and hostile employees are four times more likely than engaged employees to claim that they didn’t receive enough recognition. Recognition can be both casual and sincere. Begin with simple, verbal recognition and be sure to recognize people outside of your department, and share your team’s successes with others. Once you start, others will follow.
 
Foster team involvement: Coordinate team celebrations when someone on your team does something extra amazing, ensuring they receive the praise they deserve. Be that person who organizes team activities, set the new tradition. Arrange team volunteer efforts and networking opportunities, share and discuss articles about what is going on in the industry. Do anything that brings the team together beyond your current projects.
 
When you do what is right for others, you’ll increase your own engagement. By owning your own engagement and elevating others, you can create a self-sustaining environment of engagement. 
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Breathing New Life into Ageing Receivables

Jake Krocheski
President, Client Connection


Behind most receivables more than 90 days past due is a story about why the account has not been paid – cash flow problems, complicated transactions, and many more.  Understand those stories, get to the bottom of them – and you will have a better understanding of how to get paid.

Firms find themselves facing a dilemma.  On one hand, they truly want to embrace institutional thinking and run as a business, putting structures and procedures in place and holding people accountable.  On the other, they are reluctant to hold the individual attorneys accountable and deprive them of their autonomy because of the different circumstances that impact payment from clients. 
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It is hard to have clear-cut procedures while poking holes in them with plenty of exceptions.  The truth, though, is that your firm must.  You need to make it clear to our attorneys and staff – as well as your clients – what your policies and your expectations are.  Yet, there needs to be a fair amount of latitude for decisions based on individual client relationships.

To ensure that your receivables are not enjoying a ripe old age, take these steps:
  1. Start on the older, harder-to-collect backlog of receivables.  It may be necessary to dig deep to understand just how old they are.  Many firms do not differentiate between receivables that are 90 days past due and those that are much older.  Look to see if there is any recent billing activity on the account, when the last payment was received and for how much.  It is surprising how firms continue to do work for clients without considering whether they are paying their bills.
  2. When managing the backlog of receivables, look first at your oldest receivables and work your way back to those that are newer
  3. Ask all attorneys to review their clients with outstanding balances and ask them to be truthful.  Have them take decisive action: make the collection themselves, get help from the firm’s accounts receivable management team or clear the books.  The attorneys are best able to assess whether a receivable should be kept on the active list or written off.  However, they are often reluctant to follow through with the write-off process.
 
Evaluate each account and determine the likelihood of payment if the firm invests more time and effort to collect.  But recognize that when a receivable exceeds 180 days past due, there is only a 50% chance that it will be collected, and the likelihood drops off dramatically after that point.  There may be a logical reason why it has not been paid.  Perhaps the client does not have the ability to pay.  Maybe the attorney has worked out an arrangement with the client whereby he can pay after the matter has been completed.  Make sure the responsible attorney communicates what arrangements have been made with each client.
  1. Urge firm leadership to be decisive and step in to take action.  Management must work through receivable issues and not just take the attorney’s word for it.  Get your arms around the problem by creating – and empowering – a committee.
  2. Evaluate the firm’s overall collection efforts.  Ask yourselves: Did we do the job right, or did our processes and procedures allow receivables to age far longer than they should have? Review the firm’s policies and procedures concerning receivables that go beyond 90 days.  Determine if policies exist only on paper.  Implementation is the key.  Do you have the right people in place to move the ball forward, and are they empowered to do so?  Many firms receive their older receivables with the goal of determining why accounts have not paid and if they have collection problems.  Often they learn they have long had problems, but did not detect them earlier in the ageing process.
  3. Make the most of staff whose job is to focus exclusively on receivables.  Ensure they have the skills and talents that can help attorneys reduce the backlog of receivables.  Also, measure the staff’s performance to ensure progress is being made and sufficient time is being devoted to working directly with accounts receivable, as opposed to other administrative duties. 
  4. Write off the account after all efforts have been exhausted.  If efforts have been made to collect that do not bear fruit, accept the fact that there is little chance of getting paid and write it off.  If the attorney continues to hold up the write-off process, firm leadership needs to step in and get the account written off.
 
Jake Krocheski is President of Client Connections.  He has more than 25 years of experience as a management consultant, working with law firms.  Client Connection assists law firms of all sizes throughout the United States by furnishing accounts receivable management services and developing practical receivable programs. He can be reached at jakek@clientci.com.
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8 Ways to Handle Bullies at Work

Arnold Sanow, MBA, CSP
Sanow Professional Development


​Bullies play out their cruel games everywhere. No matter their size, shape, age, or where you find them, bullies are masters of manipulation. To gain control, they deliberately intimidate others and knowingly abuse their rights. They’re not interested in getting along, cooperating, or creating win-win situations; they just want to control, win and rule. Bullies reject reason and rational efforts. As a result, they diminish, demean, and dictate, all as part of their plan to dominate.
 
Bullies act superior, as reflected by their characteristic condescending attitude of arrogance. When something isn’t up to their approval, they see others as inept and incompetent, and go on a rampage, snarling about how awful and stupid everyone is. They feel quite justified in their outrage, treating people with disdain and disrespect.
 
Adopt strategies that support your ability to stand up to them and stand your ground. Here are 8 ways to deal with bullies from the book, “Get Along with Anyone, Anytime, Anywhere … 8 keys to creating enduring connections with customers, co-workers … even kids” by Arnold Sanow and Sandra Strauss.
 
  • Take an assertive approach early to prevent escalation. Bullies will likely continue to target you unless you establish and enforce your boundaries.
  • Demonstrate that unacceptable behavior is unacceptable to you. Let them know they can’t get away with it. Silence gives them the green light, so establish and maintain clear boundaries to ensure your needs and desires are respected. Speak your piece to keep your peace.
  • Be forceful. When people don’t respond to peaceful, reasonable approaches, it’s appropriate to become more aggressive in dealing with them to equalize the balance of power. However, never resort to physical aggression. Bullies are out to win only what they want and try to dominate you in the process, which is an infringement of your rights. By showing them that you mean business in how you communicate, you’re preserving your rights and they will likely back off. Keep your senses and act wisely.
  • Hold bullies accountable for their actions. Remember, they don’t want to cooperate with you, just control you.
  • Speak with authority and with a commanding presence. Any perceived weakness makes you susceptible to being bullied.
  • State your demands using “you” statements. People acting aggressively often run roughshod over statements made from personal perspectives and are more likely to fling them back at you. Tell them what you want in a firm way; it will get their attention: “You need to speak to me with courtesy and in a civil tone.”
  • Don’t get hooked by their taunts. If you are tempted to retort – don’t, instead address them by name and tell them to stop.
  • Avoid giving them long explanations about your actions. The more reasons you give, the more they can manipulate and twist them around and fire them back at you. Be clear that certain things are non-negotiable and not open to debate.

Arnold Sanow, MBA, CSP (certified speaking professional) is a speaker, trainer, presentations coach and facilitator with over 2,500 presentations. He is the author of 6 books to include, “Present with Power, Punch and Pizzazz” and “Get Along with Anyone, Anytime, Anywhere” www.arnoldsanow.com – speaker@arnoldsanow.com  

Sign up for Arnold's 2 minute tips newsletter at speaker@arnoldsanow.com
Want to start your own speaking and training business?  Contact Arnold at 703-255-3133 
 

​Antitrust Guidelines

Professional associations such as the Association of Legal Administrators (ALA), although well recognized as valuable tools of American business, are subject to severe scrutiny by both federal and state governments. As such, it is important to review the antitrust guidelines each year.

The single most significant law affecting professional associations is the Sherman Antitrust Act, which makes unlawful "every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce…" 

A professional association by the very nature of the fact that it is made up of competitors is a combination, thus satisfying one of the elements in proving an antitrust violation. Section 5 of the Federal Trade Commission Act is also applicable to professional associations; it makes unlawful the same types of conduct that are prohibited by the Sherman Act. Furthermore, almost all states have enacted antitrust laws similar to the Sherman Act.

There is no organization too small or too localized to escape the possibility of a civil or criminal antitrust suit. The federal government has brought civil or criminal actions against such small organizations as Maine Lobstermen, a Virginia audiovisual association, Bakersfield Plumbing Contractors, the Utah Pharmaceuticals Association, and local barbers associations.

The government has brought approximately five civil and ten criminal cases a year against professional associations. It is thus imperative that every professional association member, regardless of the size of the association or the size of those comprising the membership, refrain from indulging in any activity which may be the basis of a federal or state antitrust action.

There are four main areas of antitrust concern for professional associations: price fixing, membership, standardization and certification, and industry self-regulation. The area of greatest concern, for it is the area where individual members are most likely to violate the law and the area where the government appears most concerned, is price fixing. The government may infer a violation of the Sherman Act by the mere fact that all or most of the members of the professional association are doing the same thing with respect to prices. It is not required that there be an actual agreement, written or unwritten, to increase prices. Rather, price fixing is a very broad term which includes any concerted effort or action which has an effect on prices or on competition.

Accordingly, professional association members should refrain from any discussion, which may provide the basis for an inference that the members agreed to take action relating to prices, production, allocation of markets, or any other matter having a market effect. The following topics, while not the only ones, are some of the main ones which should not be discussed at regular meetings or member gatherings:
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  1. Do not discuss current or future billing rates, fees, disbursement charges or other items that could be construed as "price." Further, be very careful of discussions of past billing rates, fees or prices.
  2. Do not discuss what is a fair profit, billing rate or wage level.
  3. Do not discuss an increase or decrease in price, fees or wages, or disbursement charges. In this regard, remember that interest charges are considered an item of price.
  4. Do not discuss standardizing or stabilizing prices, fees or wages, or disbursement charges.
  5. Do not discuss current billing or fee procedures.
  6. Do not discuss the imposition of constitute unfair trade practices. In this context, another law firm (or even a corporate legal department) may be considered a competitor.
  7. Do not complain to a competitor that his billing rates, fees or wages constitute unfair trade practices. In this context, another law firm (or even a corporate legal department) may be considered a competitor
  8. Do not discuss refusing to deal with anyone because of his pricing or fees.
  9. Do not conduct surveys (under the auspices of ALA or informally) relating to fees, wages or other economic matters without prior review by antitrust legal counsel. Any survey should have the following characteristics: a) participation is voluntary and open to non-members, b) data should be of past transactions, c) data should be collected by an independent third party, such as an accounting firm, d) confidentiality of each participant's data should be preserved, and e) data should be presented only in a composite form to conceal data of any single participant. If these criteria are met, an association can collect and disseminate data on a wide range of matters, including such things as past salaries, vacation policies, types of office equipment used, etc.
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​However, care must be taken to ensure that the purpose of any survey is to permit each firm to assess its own performance. If a survey is used for the purpose of or has the effect of raising or stabilizing fees, wages, disbursements, credit policies and the like, it will create serious antitrust problems.

Within this same legal framework applicable to surveys, an association can make presentations or circulate articles regarding such educational matters as establishing sound office procedures, etc., provided it is clear that the matters are educational, and not a basis for law firm uniformity or agreement.

Inasmuch as association antitrust violations can subject all association members to criminal and civil liability, members should be aware of the legal risks in regard to membership policy and industry self-regulation. Fair and objective membership requirement policies should be established. Membership policies should avoid:

  1. Restrictions on dealing with nonmembers.
  2. Exclusions from membership, especially if there is a business advantage in being a member.
  3. Limitations on access to association information, unless the limitation is based upon protection of trade secrets.
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The Association of Legal Administrators has a code of ethics, which sets forth parameters of ethical conduct. However, to ensure that the Code of Ethics does not create any antitrust problems, ALA must continue to ensure that its Code does not have arbitrary enforcement procedures or penalties.

The penalties for violating federal or state antitrust laws are severe. The maximum criminal penalty for violating the Sherman Act is $350,000 for an individual and $10,000,000 for a corporation. Pursuant to the Sentencing Reform Act, alternative maximum fines could be increased to twice the pecuniary gain of an offender or twice the loss to another person.

Individuals and corporate officers who are found guilty of bid rigging, price fixing or market allocation will virtually always be sentenced to jail pursuant to the Sentencing Guidelines; community service cannot be used to avoid imprisonment. The minimum recommended sentence is four months; the maximum is three years.

Additionally, there are civil penalties such as injunctions or cease and desist orders, which could result in government supervision of association members, restricting the association's activities or disbanding the association.

Civil suits may be brought by consumers or competitors. Civil antitrust actions result in treble damage awards and attorneys' fees. Thus, if association members are held liable to a competitor for antitrust violations, which resulted in $500,000 worth of lost business, the verdict may exceed $1,500,000.

The government's attitude toward professional associations requires professional association members, as well as professional associations themselves, to at all times conduct their business openly and avoid any semblance activity which might lead to the belief that the association members had agreed, even informally, to something that could have an effect on prices, fees or competition. Thus, it is important that members contact the association headquarters or legal counsel for guidance if they have even the slightest qualms about the propriety of a proposed activity or discussion.
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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: Vanessa Partin (Co-Chair), vanessa.partin@kirkland.com; Cindy Schuler (Co-Chair), cschuler@skgf.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. 

Contact: Sheri Shifflett (Chair), cshifflett@saul.com; Emily Christianson (Co-Chair), echristianson@relmanlaw.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: Barbara Kernus (Co-Chair), bkernus@gsblaw.com; Cheryl Flynn (Co-Chair), cflynn@wileyrein.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: Jenna Carter (Chair),  jenna.carter@ropesgray.com; Danita Ellis (Co-Chair), danita.ellis@nelsonmullins.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. 

Contact: Sharon Smith (Chair), smith.sharon@arentfox.com; Kimberly J. Potter (Co-Chair), kpotter@sgrlaw.com
Listserv: ipadmin@lists.firmseek.com
Human Resources
The Human Resources Section operates as a venue for educational information on global human resources issues.  While the Section is mostly comprised of HR professionals, any member is invited to participate in the meetings which typically take place on the second or third Wednesday of each month.  The meetings feature industry speakers or roundtable discussions on topics such as recruiting, benefits, strategic planning, performance management, career pathing, retention and other matters of interest.

Contact: Carmen C. Barboza (Chair), cbarboza@hpm.com; Aryn Blanton (Co-Chair),  aryn.blanton@bracewelllaw.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: 
 Kenia Garner (Chair), kenia.garner@pillsburylaw.com; Qeyana Hart (Co-Chair), qhart@milesstockbridge.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 fourth Tuesday of the month at host law firms.

Contact: Julie Tomey (Chair), tomey@thewbkfirm.com; Wilmara Guido-Chizhik (Co-Chair), wguido-chizhik@bookoffmcandrews.com
Listserv: smallfirmadmin@lists.firmseek.com


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Finance
Based on member feedback the Capital Chapter has formed a new Finance Section. We are seeking active members to helps us get this group up and running in 2016! As we get started, we will be focusing on what issues members are facing within their firms that we may be able to help address together. Topics may range from reviewing new time and billing systems to tax filings and matter budgeting solutions and anything in between. Your input is needed! Please consider adding Finance section meetings to your monthly educational schedule.
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Contact: Andy George (Chair),  andrew.george@finnegan.com; Evan Kettig (Co-Chair),  kettige@gotofirm.com
Listserv: finance@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: Kenny Mitchell (Chair),  kmitchell@wbklaw.com; Frank Schipani (Co-Chair),  schipanif@gotofirm.com; 
Listserv: alacaptech@lists.firmseek.com
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