Reading with interest 3 Geeks and a Law Blog’s Sorry Westlaw and Lexis – The Days of Passing Charges to Clients Are Numbered.

Historically, law firms have passed along all charges to clients, whether it was for a photocopy, a fax (sent or received), mileage, phone calls, and the grand-daddy of them all: online legal research.

LexisNexis and Westlaw contracts are amongst the largest expenses to a law firm, with most firms passing long the costs to the client in an attempt to recoup some of the costs.

While firms grapple with outrageous billable hour rates, the changes to the business model of the American law firm, and the never-ending debate on the “death of the billable hour,” the relationship between the law firms, the clients and the legal vendors must evolve as well.

Greg Lambert is correct in his assessment that in the in the age of “alternative fee arrangements” and “cost sharing” the practice of passing along charges is being challenged by clients.

Alternative fee agreements and the general move away from the generic hourly-billing rate will mean that firms will need to have a different negotiating strategy with the online legal research vendor. No longer will online research be seen as a pass-through cost to the client. Because the client will not be paying the attorney by the hour, they will not buy the idea that online charges are saving them money because it saves the attorney time. Clients will say that firms will need to bear the burden of the online research because, if it truly saves them time, then that means they should be able to spend less time on the client’s matter, thus the savings is really a benefit to the firm.

For the vendors, the fact that firms are seriously considering changing the methods of how they generate revenue means that vendors have to reevaluate how they negotiate the next contract. As clients bear less and less of the cost of online research, vendors cannot come to the negotiating table with the underlying idea that their service saves either the firm or the firm’s clients money. Those 30% profit margins are not sustainable as alternative fees become a larger percentage of how law firms generate revenue. Firms will finally come to the negotiating table willing to cut services, and demand that the built in annual increases end. The days of online legal research contracts based on the idea that the costs will be passed along to a third party are numbered. It is going to be interesting to see how it all unfolds.

Well, I hate to say I told you so, but from a May 19, 2009, post Looking for Inspiration in the Recession I wrote about the Class of ’09 being a “lost generation” (which I now believe will trickle down to 2010 and possible 2011 as well):

Get ready, Class of ’09, more announcements like this to come: You may think you are just deferred, but you are really fired.

This morning came the announcement via The Blog of the Legal Times:

Arent Fox Rescinds Offers for Some Deferred Associates Arent Fox Chairman Marc Fleischaker has confirmed reports that the firm has rescinded offers made to some of its deferred associates. The associates who had their offers withdrawn were told this morning. In all, Fleischaker said, about 12 incoming associates were affected. Washington, which has the firm’s largest office, had “about eight,” New York had “between two and three,” and Los Angeles had one, Fleischaker said. The news was first reported on Above the Law.

I feel for Mr. Fleischaker and every other law firm chairman trying to handle similar situations: Associates deferred from jobs they were expecting to start a few weeks ago, only to find out that there is no work for them in the near future. Please, everyone — especially law students, future law students and currently deferred associates — read the legal news, follow the blogs, understand that the legal model has changed and will not be going back to what it was. I have been speaking with my peers, colleagues and consultants for law firms on this issue, and while there are many ways to scenario plan the next five years, there appears to be one consensus of thought: While we don’t know WHAT the legal business model will look like once the recession is over, and recovery is firmly in place, we can anticipate that it WILL be different from what it has been. If nothing else, technology has streamlined much of what lawyers, especially young lawyers, used to do; clients have different expectations of outside legal counsel; and it turns out that it doesn’t take as many associates to screw in a light bulb as it used to. In my opinion, law schools continue to do a disservice to these young men and women by churning out more JDs than we will ever need to be lawyers, all the while saddling them with an astronomical debt. Yes, a law degree can be used for different careers, but the law schools and their career centers are not promoting and training for this. As I said in Always a JD, Never a Lawyer:

Law schools MUST address these issues, from the law school graduates who never passes the bar to the lack of jobs upon graduation. It is unconscionable that law schools continue to admit more students than our current marketplace can absorb. These young men and women need this information so that they can choose to make an informed decision before rolling the dice.

There’s a legal marketing “guru” out there who loves to bash Twitter. First of all, Twitter isn’t for everyone, but it is an incredibly powerful tool for many others. To completely dismiss a marketing/business development tool because of your personal perceptions, or lack of knowledge, is shortsighted and shows, to me, poor “guruing.”

As a legal marketer I have at my disposal an incredible toolbox of items that I can pull out for the attorneys in my firm. My job is to realize and acknowledge the unique qualities of each attorney, their personal styles and comfort zones, and work to push them to the limits of where they can go.

These include, but are not limited to, writing, teaching, speaking at conferences, one-on-one client meetings, Webinars and teleconferences, client service interviews, sales, participating on corporate/non-profit boards and networking. In the past couple years I have added social media and social networking tools, including blogging, LinkedIn, Facebook and, yes, Twitter.

An important lesson I learned early on in my career as a legal marketer was to realize that what works well for Susan might not be appropriate for Steven, and vice versa. This holds true for any marketing or business development tool or technique. In addition, there is no one way to do anything. There are best practices that we can pick up along the way, but we need to incorporate and customize them to fit us as individuals, or as a firm.

A colleague of mine, Sonny Cohen, summed it up perfectly:

participating in … any social medium is not about following guidelines. Rather it is about defining your business objectives and participating in a meaningful way to meet those objectives.

As a lawyer, marketer, or any professional, you must first set out your goals and your objectives for your marketing and business development. Only then can you see how social media and social networking tools, like Twitter, can help you to reach those goals. Twitter should not be seen as a panacea or magic lamp for your marketing and business development, but simply another tool to help you realize your objectives.

So, what are your marketing and business development objectives? How can social networking and social media contribute to you achieving those goals?? Not sure? Well, Tweet me @heathermilligan and let’s see if we can figure it out.

As for the Twitter naysayers … the wonderful thing about the Internet, due diligence on any consultant is only one Google search away. Just dig to around page three of the Google search results.

People follow you on Twitter not to know what you’re doing at any given moment, but because they are interested in what you are thinking.


While there is no formula for the perfect way to Tweet, I have found that it should be a mix of personal and professional. Use your instinct.


In the morning I typically send out links to articles that I am reading. I like to retweet posts of interest and amusement throughout the day. I send out job leads when I hear of anything out there. I use the @reply and DM to engage conversations and raise my profile to someone I’d like to meet. I send links to my blog posts, both here on The Legal Watercooler and for my firm’s three blogs. I also drop in information about the concerts I attend, my Girl Scout Troop, being a mom, etc. so you can get to know me better.


I do NOT use Twitter to vent about work, politics, personal issues, etc. You NEVER know who might be “listening.”


How often should I Tweet?

Some “gurus” out there will give you a specific number, or a limit, of Tweets you should send out each day. Tweet too often and people will think that you’re not busy. Tweet too infrequently and you might not get known. I say Tweet what is necessary, as frequently, or infrequently, as the moment warrants.


If I am at a conference, attending a valuable panel, I’ll Tweet 20 times in an hour. If I have nothing of interest to say, or value to add, I might Tweet three times in a day. If I’m really busy, you might not hear from me for a few days, but I am still reading and reviewing my incoming Tweets.


Who should I follow?

Twitter isn’t about the quantity of your followers, it’s about the quality. We are trying to get our message in front of the right influences and purchasers. We are trying to identify people we want to know; people we want to add to our network of prospects, influences, connectors.


Personally, I follow people and entities:

  • I believe would want to hear my message from within the legal industry (lawyers, marketing, library, IT, finance, in-house counsel, consultants and vendors, etc.). It doesn’t matter to me what type of law or where they are practicing.
  • in my discipline: marketing, business development, communications, PR and media.
  • I can learn from, the thought leaders out there.
  • who make me laugh, make my day run smoother, or those whom I find to be of personal interest.

How can I find followers?

I find new followers several ways:

  1. I follow people who follow me provided that they meet the above criteria.
  2. I follow people others follow. If @jaynenavarre is interesting in what someone has to say, chances are I might as well, so I see who she’s following and review their profiles. If they fit the above criteria, I follow. Repeat often with key follows.
  3. I use the search tools. Search a specific term, such as “journal” and you’ll be amazed at all the reporters and publications that come back. I do this often.
  4. I follow people having interesting conversations with my followers. If @nancymyrland is having an interesting conversation with one of her followers, I’ll follow the other person.

How do I manage my incoming messages?

Once you hit 100 follows you will need a tool to sort and manage the messages you are receiving.I personally use Tweetdeck on both by desktop and iPhone, but there are other applications out there as well.


Tweetdeck can be used to set columns of follows. I have “My Peeps” for people I follow closely, but not obsessively. I have “Leaders” for those whose messages I don’t want to miss. Other columns include: “Press and Media,” “Competitors” and “Fun Follows.”


I also manage search terms to see what people are saying about me, my industry, my professional association, my firm, etc. I will also set temporary columns to follow Twitter streams for conferences (#solo09), major news stories (#fires), and sporting events (#dodgers).


I have also learned to not be obsessive about catching every post and message. I catch up on Twitter a few times per day, and participate as much as I possibly can … always remembering to add value, participate in conversations, and reveal bits about myself so that you can get to know me better.


Pet Peeves

Protected Tweets – Why?? If you’re joining Twitter to play, then play.


Auto Replys – Don’t do it. Really. They don’t come off as sincere and many people will now automatically unfollow you for this social networking faux pas.


All business, no play – If your goal is to get to be “known, liked and trusted” how can this happen if all you do is send out upcoming event notifications for seminars I have to pay to attend? Some of my best Twitter relationships began (or have been enhanced) around a passion for Girl Scouts, a family emergency, 80s Hair weekend, or concert schedules.


There is no 100% right way to use Twitter. I tend to follow closely others I believe are successful at utilizing Twitter for a business development and marketing tool. I’ll then try some of their practices and strategies. I continue to use the ones that work well for me, and discard the ones that don’t.


All in all, I have found Twitter to be quite successful for me. I have built a national reputation as a legal marketer who is engaged and knowledgeable in social media and social networking tools. I have spoken before several prominent legal associations, including the Legal Talk Network’s Lawyer2Lawyer, The American Bar Association, the Virginia Bar Association and the Los Angeles County Bar Association.


I have used Twitter to identify new peers, who have now transitioned into personal relationships, within the legal market, including @kevinokeefe, @glambert, and @nancymyrland, while enhancing relationships with people I already knew professionally, but not on a personal level, including @jaynenavarre and @natslavin.


For me, Twitter has proven to be an incredibly valuable tool.


Tomorrow: What about the Twitter naysayers??

Twitter is a great tool some will argue. Twitter is a waste of time others will retort. Both comments are correct.

Over the next three days I’m going to post on how I use Twitter. This is different than how @kevinokeefe, @chrisbrogan, or @ABAJournal uses Twitter. We all find Twitter to be of value, and we all use it in a unique way … a way that works for us.

If used well, Twitter can help you to build your personal brand, expand your reach to potential clients, and allow you to help shape conversations as a thought leader. I have found that Twitter can help you to realize the trifecta of “know, like and trust.” If not used well, Twitter will be a waste of time.

So here are a few of my Twitter tips for those just starting out:

  1. Brand yourself with your user name. It’s difficult to build a relationship with “@LegalWatercoolr,” but @heathermilligan is knowable. If I am at a conference, my name tag will read “HEATHER Milligan,” my firm name, corporate name, blog name might or might not there, but my FIRST and last name will.
  2. Pick an avatar and stick with it. This is your profile picture. Make it something that will easily identify you in a crowded column. I use a portrait of me drawn by my then 5-year old daughter. Change your photo too often and you might “disappear” with your followers until they catch on.
  3. Make certain to include a URL to your Web site or blog, LinkedIn profile, Facebook Fan Page, etc. This will provide people with more information on you, enhancing the “know” factor, and giving them another avenue to communicate with you.
  4. Profile yourself in your profile. Include as much unique information about you in this 1-Line, 160-character bio. The profile is a searchable area and you should take advantage of the space. Include your business (marketing), your industry (legal), your location (Los Angeles) and personal information/interests (mom, Girl Scout leader, social media, Dodgers’ fan – Go Blue!!).
  5. Location – Include your city. Don’t leave it out.
  6. Protect my Tweets. NO, NO, NO. Social media is about OPENING up your network, not closing it down. If I see someone protects their Tweets or their profile, or must pre-approve any new followers, I move on.

Your profile is your passport into the world of Twitter. Followers will use this information to determine if you are someone worth following, someone whose message should be heard. Take a few moments and fill it out well.

Tomorrow: Twitter After Dark: What should or shouldn’t I Tweet on??

On the Legal Marketing Association’s* listserv, LMA Connect, today a comment was posted on what we in the legal marketing industry could learn from Kanye West’s apology on The Jay Leno Show last night for ruining Taylor Swift’s moment at the MTV Video Music Awards.


As LMA Connect is a closed listserv I do not feel it appropriate for me to quote the original post, but here’s my take on Kanye’s apology and what we can all take away from it.

_________________________________________________

I am not a PR pro, guru or practitioner. I don’t even play one around the water cooler. However, I found that Kanye’s apology was weak and filled with too many excuses, including his grief for his mother’s passing. He did not follow the formula:

A proper apology should always include the following:

– a detailed account of the situation

– acknowledgement of the hurt or damage done

– taking responsibility for the situation

– recognition of your role in the event

– a statement of regret

– asking for forgiveness

– a promise that it won’t happen again

– a form of restitution whenever possible

If his apology on The Jay Leno Show was his first attempt at saying sorry, I would have said “bravo” … but it was a bit too little too late for me.

We live in the age of the Internet, blogs, cached posts, screen shots, comments sections, etc.

On the night of the VMAs, Kanye wrote a rambling drunken tirade of an apology that will forever be captured (thanks to the Internet) where he basically blamed the victim (was he not implying that she was undeserving of the award and should have given it up like he did with Outkast??).

He took this apology down once the blogosphere attacked him for it, but it was too late. We ALL saw it. Just read the comments sections.

He then wrote another “apology” yesterday, once again, not taking responsibility. He’s just like Ben Stiller in “Meet the Fockers”??? He’s just a victim of circumstance. And, once again, he was rightly attacked by the public.

I will say that I believe that his apology on Leno was sincere and heartfelt. But the “humbling of Kanye,” in my opinion, had more to do with his industry, his peers, his fans and even the President of the United States, turning on him. I hope he makes good on figuring out how he’s going to deal with his life moving forward. I hope he has true awareness of the greater meaning of his actions.

So what can we learn from these poor choices by otherwise extremely talented man?

When in the midst of a crisis communication, where reputation management is key, you must first DO NOTHING. Think things through. Have a plan. You CANNOT take back a bad apology. You cannot RISK alienating your network further than you already have. The WORST part of all of this … you’ll never know the true damage to YOUR REPUTATION. Did you not get the work because you weren’t experienced enough, or do they know?? Did you not get the job offer, because they know?? What about being passed over for that speaking opportunity?? Was it because THEY KNOW???

Kanye will continue on, but the extent of the damage will never be truly known. How many songs will not be downloaded? Albums not bought? Seats at concerts not sold? Not to mention partnerships passed over? Sponsorships lost, etc.

Even if he figures his life out, changes his way, turns from bully to compassionate soul … this incident will be with Kanye always. Just Google it.

That he cannot repair.

* The LMA Listserv is open to LMA Members only. If you are a member of the legal marketing industry, I highly suggest you join your local chapter of LMA. Full disclosure: I am a past Member-at-Large for the International Board of Directors, and a past-president to the Los Angeles Chapter.

The ABA Journal has an article reflecting on what happened to the 150,000 law school grads that never passed the bar.

Turns out that their lives suck for the first five years, but that they eventually bounce back, but never to the degree as their peer:

Jane Yakowitz, director of a project at UCLA law school that studies affirmative action preferences in higher education, summarizes her findings in a new research paper (PDF). She found that five years out of law school, law grads who fail the bar lag behind lawyers in terms of earnings, employment stability, and even marriage and divorce rates. They also do worse than college graduates who never went to law school.

“But after an initial adjustment period, they spring back and out-perform the average college graduate for the later half of their careers,” Yakowitz writes. “Though they never catch up to their lawyer peers, the earnings of the median bar-failer does catch up to the 25th percentile lawyer.”

Ms. Yahowitz’s rightly concludes that it is important to study what happens to those who never pass the bar as they make up a significant portion of students graduating law school.

This void is somewhat understandable. Bar-failers are hard to study. They’re the invisible JDs. They’re less likely to respond to law school alumni surveys, and state bars have little incentive to follow their careers. But bar-failers are difficult to track for the same reasons we ought to make the effort. They make up a significant portion of graduating law school classes, and we don’t know what they do, how many of them there are, and whether their experiences with the bar caused long-lasting detriment to their lives. This is the first serious attempt to understand the impact of failing the bar exam.

I suggest grabbing a cup of coffee and reading the study, The Marooned Law School Graduate: An Empirical Investigation of Law School Graduate that Fail the Bar Exam, in its entirety for there are numerous nuances and items of note. It should give pause to anyone who is considering incurring the substantial debt associated with a J.D.

On page 15 of the study, for instance, Ms. Yahowitz points out that while there continues to be an increase in J.D. degrees, there is not a correlating increase in lawyers:

The decrease in lawyering rates could be a sign that the JD degree has broadened its applicability to other fields, giving law graduates more choice in their career paths. A less optimistic (and, regrettably, more plausible) explanation, borne out by the layoffs and hiring patterns in the legal market today, is that the legal profession was shrinking during a period that legal education continued to expand. (emphasis added)

Law schools MUST address these issues, from the law school graduates who never passes the bar to the lack of jobs upon graduation. It is unconscionable that law schools continue to admit more students than our current marketplace can absorb. These young men and women need this information so that they can choose to make an informed decision before rolling the dice.

Today is 9/11, and while I am at work working, I cannot help but think back eight years. I cannot help but think back to those who lost their lives, those who live daily with a hole in their hearts, and those whose lives will never, ever be the same.

Yet already today on my Facebook home page it appears to be politics as usual. There are polls in favor of one politician, or rallying the troops against another. In between reflections of 9/11 and memories of the fallen are articles defending one team’s position on health care, or attacks on the other party for what they perceive to be lies.

As I refrain from responding, sharing my opinions, and outing my personal political opinions, I cannot help but think about today and what it signifies to me. I cannot help but think about where I was on 9/11. As I look out on my fair city from the 47th Floor of the tallest building west of the Mississippi, I cannot help but think about my personal memories of visiting New York City for the first time when I was 17, and joining my parents for drinks at Windows of the World.

I wonder what 9/11 would have been like if we were all on Twitter? Would lives have been saved?? Would loved ones have had a chance to say goodbye??

What I do know is that today is a day to set aside Facebook politics and quizzes.

Today is a day to set aside our partisan politics around the water cooler, to turn off the partisan political radio and TV programs.

Today is a day to let go of our differences and bond around our passionate love for our country.

Today is a day for us to reflect as a nation, as a people, as friends and neighbors.

Today is a day to remember … and to never forget.

The summer’s coming to an end on the east coast, and the summer offers aren’t rolling in as they have in the past (law.com subscription required). In California, our summer nights are in full swing for at least another month, but the news, I’m certain, isn’t heart warming for the summer associates.

[youtube=http://www.youtube.com/watch?v=_whyjdt5Qso&hl=en&fs=1&]

Having worked in the legal industry for 13 years (11 in legal marketing), I cannot allow this new “trend” to take hold without shining the bright light of WARNING – CAUTION – BEWARE – CHANGE COURSE – HAVE AN ALTERNATIVE PLAN – BE FLEXIBLE.

When coupled with the summer associate classes being considerable smaller this year, the job offer rate looks downright frightening. Here in California, we’re talking 60-80%, down from the prior 90% averages.

In another blow to the job prospects of top law students, summer associate offer rates are down significantly at many big California firms.

While some firms are still compiling numbers, most offer rates are in the range of 60 to 85 percent, but one firm, Morgan, Lewis & Bockius, offered jobs to only 30 percent of summer associates.

That’s down from an average of more than 90 percent in recent years at most firms. The National Association for Law Placement reported in February that in 2008, the summer offer rate dipped to its lowest rate since 2003 — to 90 percent.

Firms that were still in the 90s this year include Latham & Watkins and Morrison & Foerster, while Orrick, Herrington & Sutcliffe; Paul, Hastings, Janofsky & Walker; and Nixon Peabody dipped below 80 percent.

The trend is a double blow to students, after a summer in which firms invited 30 to 50 percent fewer students to join their programs.

Let’s be honest. In years past, you had to be a total loser, a-hole or made a complete fool of yourself when drunk to not get an offer letter.

Robert Depew, managing director of Major, Lindsey & Africa’s San Francisco office, said in the past, the major hurdle for law students was obtaining a summer associate offer with a reputable firm, not getting an offer of full-time employment at the end of the summer. This year, firms have raised the bar, and even smart and polished associates won’t make the cut.

“In years past, every summer associate was essentially guaranteed an offer unless he or she completely dropped the ball on work projects or totally shocked decision makers with abhorrent social behavior,” Depew said. “In fact, most firms maintained a tradition of going to extraordinary lengths to ensure 100 percent offer rates wherever possible. And the failure to obtain an offer at the end of the summer was a professional ‘kiss of death’ for law students.”

Times they are a changing, and new trends, they are a brewing. A legal education no longer guarantees that one will become a lawyer, in the traditional sense. Many of these young men and women who are in law school today will never receive that golden offer letter, and their path, upon graduation, will not be clear.

Law school placement and career centers need to open up a conversation on alternative career options, and career paths, than the traditional law firm model. These can include going small/solo, contract attorneys, teaching, legislative analysts, paralegals, journalism … marketing, technology and librarians, too.

Hi everyone. I want to welcome Michelle Fabio from About.com: Law School as a guest blogger to The Legal Watercooler. As we just spent the last two posts questioning WHO and WHY anyone would go to law school these days, how about some productivity tips for those who have made the leap to 1L status.

How to Increase Productivity in 5 Easy Steps

The law school year is just starting up, and I’m guessing many of you 1Ls are already behind in your reading assignments. I hear you (I’ve been you!), which is why I’m offering you some ideas on how you can be more productive now and throughout your life.

Indeed, these tips are for everyone, not just 1Ls, because really, who among us hasn’t gone to bed wishing we had done more, gotten more accomplished that day, crossed just one more item off the old to-do list?

Here are five easy ways you can become more productive:

1. Sleep.
See, I told you these would be easy tips! OK, what I really mean is to sleep better, more regularly, and get the right amount of sleep for your body–and it *will* tell you how much you need if you listen closely.

Just by getting better, more regular sleep, you’ll see an increase in concentration levels, energy, and focus, and this will likely turn into being more productive as well.

2. Move.
“But that’s the opposite of sleep,” you may be thinking. Why yes it is, and just like all things in life, balance is key, which means as important as rest is, so is movement.

Particularly if you’re at a desk most of the day, it’s vital that you get up and move around, whether it’s a walk to the office bathroom or an hour at the gym. Your mind also needs that time to clear itself, refresh, and process new information, so don’t underestimate the importance of physical movement regarding your productivity levels.

3. Group distractions.
Take one or two days and write down everything that interrupts you as you try to work or study; returning phone calls, email checks, Facebook status updates, dog walks, whatever it is, write it down.

From now on, try to group some of these together on your breaks from work, which, by the way, I highly recommend planning through the Pomodoro Technique. It’s worked wonders for my productivity, but there are many other time management methods out there for you to try if it doesn’t suit you.

4. Group errands.

In the same vein as the #3 tip, unless you have to go to the post office today because your lights will be turned off otherwise, wait until the end of the week when you have a list of errands to run (*and* your desire to work or study has perhaps waned a bit), or even until the weekend.

By doing a bunch of things at once, you’ll not only create more time to be productive doing other things, you’ll also have a nice sense of accomplishment when you finish–which tends to inspire you to do even more.

5. Track your progress.
One of the best things you can do to be more productive is to *see* how productive you’re being. Why is that?

Because we love to know that we’re actually getting things accomplished.

Whether it’s through a journal, diary, spreadsheet, or some other application or tool, keeping track of what you’re getting done really does inspire you to do more.

What are your productivity secrets?

Guest post by Michelle Fabio, About.com Guide to Law School, who also writes about how to become a paralegal at BecomeaParalegal.net.

Follow Michelle on Twitter: @michellefabio or @lawschoolguide