A recent study by Altman Weil found that: “Firms that are proactive in their pursuit of non-hourly business were more than twice as likely to report higher profitability on non-hourly projects compared to firms that are reactive.”  Moreover, 95% of the law firms surveyed use AFAs and “75% of respondents believe there will be more non-hourly billing in the future.”
- From 2011 Law Firms in Transition. Download the full survey here.

Check out these books on AFAs and value pricing:
Winning Alternatives to the Billable Hour: Strategies That Work
Implementing Value Pricing: A Radical Business Model for Professional Firms

A couple of months ago, I started using a small dry erase board to capture thoughts.  It worked OK, but was kind of a pain to erase, and my notes would sometimes get smudged.

Then, earlier this week, I got a Brookstone Boogie Board.  I LOVE it!  It is a digital note pad that is a great way to capture thoughts, create “to do” lists, or just doodle.  Very cool.

Check it out for the yourself or the techie in your life.  If you want to do even more with your Boogie Board, check out the Boogie Board Rip.

Happy Holidays!

“A brand is a person’s gut feeling about a product, service or company.”
- Marty Neumeier, author of The Brand Gap and Zag: The #1 Strategy of High-Performance Brands

Marty’s definition gets to the heart of the matter.  Here’s the thing, your brand is not just your logo or your website.  It’s not just your stationary or your firm brochure.

Your brand is what your clients say it is.  Your brand is how you make people feel.

Your brand is EVERYTHING about your firm. Your logo, website, stationary, and firm brochure are part of your brand, but they are just a part.  Your brand is . . . How promptly you return phone calls . . . How tidy your office (yes, YOUR office) is . . . How your receptionist answers the phone . . . How prepared you are for meetings or hearings . . . How you speak to clients . . . Whether your shoes are shined . . . Whether you deliver projects on time.  You get the idea.

Although you can’t say what your brand is, you can influence your brand in everything you do.  You can start by thinking about branding your firm as a three-step process.

1. Know who you are, what you do, and what makes you “the only.”
Before you can influence your brand you have to know what you want to convey.   The first step in building your brand is to get very clear about who you are.  What is your law firm’s mission?  Who are your ideal clients?  How do you help them?  What makes you unique? Or in Marty Neumeier’s words: “What makes you the only?”  If you can’t answer these questions, you cannot build a brand.

2. Spread the word.
Now that you know who you are and what you do and what makes you unique, you’ve got to let others know.  This is where your logo, website, and other marketing materials come in.  All of your marketing materials must have a consistent look and feel.  But spreading the word goes far beyond your marketing materials.  Remember, your brand is EVERYTHING.  Your brand must be conveyed in everything about your firm.  You’ve got to “live” your brand every day.

3. Live it.
Your job in building your brand is to create a brand experience in every aspect of your practice.  Do you return your calls when you say you will?  Does your office create an experience that is consistent with your brand or is it a mess with files all over the place?   When you go to a bar luncheon are your shoes shined?  When a client calls your office, are they greeted warmly or do they feel like they’re just another problem to deal with? If you live your brand, you’ll create a total brand experience, and your clients will spread the word for you.

So, what’s your brand and what are you doing to influence it?  I’d love to know!

This time of year can also be very stressful and a time when many feel the effects of burnout and depression.  But there is something you can do to alleviate the stress: Give back.  I know what you’re thinking, “Is she crazy?  I’m already swamped at this time of year, and she’s asking me to do something else!?!?”  The answer is: Yes, I am.  Here’s why.

Giving back creates what psychologists call a “helper’s high.”  A “helper’s high” is a state of euphoria created by a release of endorphins in the brain.  That’s a good thing.

When we’re motivated by a true spirit of generosity, we benefit as much as those on the receiving end. Jesuit priest Anthony de Mello says it this way: “Charity is really self-interest masquerading under the form of altruism. … I give myself the pleasure of pleasing others.” In the same vein, the Dalai Lama playfully speaks of working to benefit others as “selfish altruism.”

But don’t just take their words for it: Research in neuroscience and psychology has offered scientific evidence that helping others brings happiness to yourself. Consider:

According to the measures the “Social Capital Community Benchmark Survey,” overseen by researchers from Harvard University, those who gave contributions of time or money were “42 percent more likely to be happy” than those who didn’t give.

From The Helper’s High, click here to read the entire article.

So, how can you get your own “helper’s high”?   Think of ways that you and your team can give back in a way that’s fun and fulfilling.  Here are just a few ideas.  Brainstorm others with your team.

• Adopt a family (or families) for the holidays.
• Collect toys to bring to kids in the hospital.
• Visit a nursing home.
• Mentor a child.
• Adopt a school in your neighborhood.
• Donate clothing.
• Give to Toys for Tots or another organization.
• Sponsor a food drive for a local food bank.

Choose something that you can do as a firm, and get everyone involved.  Nothing will make you feel better this Holiday Season than giving thanks and giving back.  Your “helper’s high” might feel so great that you continue your project throughout the year!

Think of adapting your behavior like learning a new language. If you’re visiting another country, you’ll have a much better time if you learn the language of the country. Learning a new language is one way of adapting. And if you want to be a better leader for your law firm, you need to understand the language of the people who work with you. Yes, you and everyone on your team speaks a different language – a different behavioral language. You’re all swimming in different fish bowls. So, how do you get out of your fish bowl? The DISC behavioral assessment is one way.

Click here to read more about how law firms are using DISC to enhance effectiveness and build better teams.

Here are 10 things you can do between now and the end of the year.  Each one will make a big impact, but you don’t have to do all 10.  Pick three. Do three. Have fun. And get ready for a Happy New Year.

1. PARTY! Yes, party!  You’re going to be getting invitations for bar association events, firm receptions, and parties with friends. GO TO THEM!  Enjoy yourself.  Meet new people. Expand your networks.  Have fun!
2. Brush up your laser talk. Since you’ll have the opportunity to go to a lot of parties in the next few months, now is the perfect time to brush up on your laser talk or elevator speech.  Can you explain in three sentences how you help people, why your clients hire you, and what makes you unique?
3. Host an open house. Hey, you don’t just have to go to other people’s parties.  Throw one of your own!  Show off your office and your team.  In fact, let you team plan the party and host it. I bet they’ll come up with some ideas you would never have thought of.
4. Do something special for your best referral sources. How well do you know your best referral sources?  I hope you know them well enough to know what would be a great, personalized gift for them.  If you don’t, well then, I guess you should be taking them to lunch or dinner or coffee or the theater to find out!
5. Give back. Are you passionate about a particular charity or cause?  Is there a particular cause that might resonate with your clients?  For example, if you’re a family law attorney, would it make sense to support a shelter for women or a children’s charity?  If you’re passionate about a cause, the holidays are a great time to give back.  It might even turn into something your firm could support throughout the year.
6. Have a holiday photo contest. OK, this one lends itself more to certain practice areas – family law, adoption, estate planning.  Criminal law attorneys might want to skip this one.  You could have a photo contest and use the winners to decorate your office.  It could even become an annual event for your firm.
7. Send cards that give back. If you want to support a particular cause or charity, why not send cards that donate part the cost of the card to the charity?  Check out Good Cause Greetings or Cards That Give.
8. Reach out to former clients in a personal way. When was the last time you called a past client just to check in and see how they are doing?  What better time than the holidays to reach out?  Identify your favorite (best) former clients and give them a call.  You’ll feel great, they’ll feel great, and you might just be rewarded with referral.
9. Celebrate something different. I have one client who sends Thanksgiving cards and another who celebrates the New Year.  By focusing on these holidays you can set yourself apart from the crowd.
10. Commit to continuous improvement. OK, this isn’t so much a holiday thing.  It’s something you should be doing all year long.  Make it a habit to spend at least one hour a month learning something new about marketing AND DOING IT!

Do just three of the things on this list and your New Year will be very, very, Happy!

This week I’ve received emails from several attorneys whose email addresses ended in @somethingotherthanthefirmname.com.

That’s bad for business because it sends a message that, well, you’re stuck in the 1980s.  That is not a message you want to send!

There is no reason for any attorney to have an email address that is not linked to their own domain name.  Domain names are inexpensive and easy to obtain.  Check out www.namecheap.com. And you can use your domain name for your email, even if you don’t have a website.

So, put away that leisure suit, disco ball and your old email address.  You’ll be glad you did.

“The firm is doing fine. We just have a bit of a cash flow problem right now.” Have you ever said those words or thought them to yourself?  Most business owners have.  Unfortunately, as noted by Charles Coonradt in The Game of Work, “Saying everything is fine except for cash flow is like saying the patient is fine except for a 105-degree temperature.”

Cash flow problems are symptoms of deeper problems.  The problems can range from excessive overhead to over-staffing to ineffective systems.  But all too often cash flow problems stem from too many clients owing too much money.  The dreaded accounts receivable.  Collections. But there is one way to end your collections problems forever.  Value pricing.

In his book, Implementing Value Pricing: A Radical Business Model for Professional Firms, Ron Baker outlines Eight Steps to Implementing Value Pricing.  The book is a must-read for any attorney considering value pricing.  All steps are integral to the process, but Step Five focuses on the creation of a Fixed Price Agreement.  Why is this relevant to cash flow?  Because you control the payment terms of the fixed price agreement.  And the price is paid up front before you begin the work.  In fact, the very definition of value pricing according to Baker is, “the maximum amount a given customer is willing to pay for a particular service, before the work begins.”

If you want to eliminate “cash flow problems,” consider value pricing.  Here are a couple of firms that are doing it right.

Shepherd Law Group – They use the term “Up-Front Pricing”
Valorem Law Group – Valorem proclaims the billable hour is dead on its home page.  They also have a nifty iPhone app.

Let’s look at just one nugget of gold from Enchantment – How to Achieve Likability.  Buy the book for this chapter alone.  The most important thing you can do to market your practice is to build “know, like and trust” with your influencers and referral sources.  Enchantment will help you do this . . . and it will enchant you along the way.  Read Enchantment and your approach to marketing will never be the same.  You’ll understand why it’s important to:  smile like George Clooney; shake hands . . . and connect; create real win-win solutions; and NOT speak like a lawyer.

And while we’re on the subject of likeability check out: 16 Enlightening Communication Principles at Dan Rockwell’s blog, Leadership Freak.  The words we speak – or choose not to speak – have a tremendous impact on our likeability. I read Dan’s blog post yesterday, and it reminded me how much words matter.  Here are the 16 Principles.

1. Flatterers puff you up so you’ll lift them up.
2. Backstabbers secretly invite you to condemn yourself by inviting you to condemn others.
3. Always answer a question with a question.
4. Casually spoken words cut. Stop blabbing.
5. The rule for words is restraint: fewer words are better than many words. Churchill said, “We are masters of the unsaid words, but slaves of those we let slip out.”
6. Words limit and create bondage like a snare. Avoid unnecessary promises and commitments.
7. Life giving words are intentional; seldom accidental.
8. Intentionally energize rather than accidentally demotivate with your words.
9. Harsh words invite harshness.
10. Gentle words drain drama and anger.
11. Quiet words enable better than loud words.
12. Loud words excite or overwhelm; more frequently they overwhelm.
13. Avoid whisperers they manipulate.
14. Behaviorally speaking lying is hatred.
15. Never publicly improve the boss’s words.
16. Embrace the two to one rule.  Ask two questions – at a minimum – before making statements.

If you can enchant and enlighten in all your communications, you can change the world one person - or conversation - at a time.

Are there any other principles you would add to Dan’s list?