Attorney Journal, San Diego, Volume 142 by Attorney Journals

SAN DIEGO

Volume 142, 2015 • $6.95

7 Steps to Getting Referrals

Tom Hopkins

Not-To-Do #6 Limit Yourself by Geography

Mike O’Horo

Key Performance Indicators: Knowing the Numbers That Drive Your Law Firm’s Growth

Stephen Fairley

Phone Numbers Can Make Surprising Impressions

Trey Ryder

Attorney of the Month

Gregory Rizio Caring Beyond the Courtroom

Pay Proportional to Performance™

James D. Cotterman How Successful Firms Implement Strategies

Bob Denney

2015 EDITION—NO.142

TABLE OF CONTENTS 6 Pay Proportional to Performance™ by James D. Cotterman

9 Phone Numbers Can Make Surprising Impressions by Trey Ryder

12 COMMUNITYnews

EXECUTIVE PUBLISHER Brian Topor EDITOR Wendy Price

22 7 Steps to Getting Referrals

CIRCULATION Angela Watson

by Tom Hopkins

PHOTOGRAPHY Bauman Photographers

24 How Successful Firms Implement Strategies

STAFF WRITERS Jennifer Hadley Bridget Brookman Karen Gorden

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16 Gregory Rizio Caring Beyond the Courtroom by Jennifer Hadley

CREATIVE SERVICES Skidmutro Creative Partners

CONTRIBUTING EDITORIALISTS James D. Cotterman Stephen Fairley Tom Hopkins Mike O’Horo Trey Ryder Monty A. McIntyre Bob Denney

ATTORNEY OF THE MONTH

by Bob Denney

26 Key Performance Indicators Knowing the Numbers That Drive Your Law Firm’s Growth

by Stephen Fairley

29 Not-To-Do #6 Limit Yourself by Geography by Mike O’Horo

Editorial material appears in Attorney Journal as an informational service for readers. Article contents are the opinions of the authors and not necessarily those of Attorney Journal. Attorney Journal makes every effort to publish credible, responsible advertisements. Inclusion of product advertisements or announcements does not imply endorsement. Attorney Journal is a trademark of Sticky Media, LLC. Not affiliated with any other trade publication or association. Copyright 2015 by Sticky Media, LLC. All rights reserved. Contents may not be reproduced without written permission from Sticky Media, LLC. Printed in the USA

etting pay decisions done well is rarely an easy task. There are competing interests between those lawyers who primarily acquire clients and those who focus on practicing law—setting up the age-old debate regarding the relative value of each. Moreover, those competing interests appear across a broad profitability spectrum. Unfortunately, the challenges increase when a law firm has either very little or a great deal of money to distribute. At the low end of profitability, there are competing needs of collegiality and a sense of partnership that suggest a flattening of the pay range, set against the risk of competitor poaching of high-performers that may necessitate a broader range of pay. At the upper end of profitability, the human emotion—greed—tends to display its unpleasantness. There are also lively and ongoing debates about the appropriateness of nearly every facet of a compensation program: A. The decision perspective: Should performance be evaluated

prospectively, retrospectively or using a combination of both?

Pay Proportional to Performance™ by James D. Cotterman

B. The type of compensation system: Formulaic, subjective, lockstep

or some combination? C. The process: What is the right amount and type of input and

feedback? D. Transparency: Should the compensation system be open, closed or

a hybrid? D. Who makes the decisions: A managing partner, various committees,

or a committee of the whole? James D. Cotterman is a principal of Altman Weil, Inc., a legal management consultancy headquartered in suburban Philadelphia. He advises law firm clients on compensation, capital structure and other economic issues. Contact Mr. Cotterman at 407-381-2426 or email jdcotterman@altmanweil.com. “Copyright Altman Weil, Inc., www.altmanweil.com. Reprinted with permission. All rights for further publication or reproduction reserved.”

F. The Compensation Committee: How should it be constituted and

chartered? Yet none of this really matters except in how each facet supports consistently well-made compensation decisions. We can probably all think of a number of law firms (or any other organization for that matter) that achieve great success and some measure of harmony with each of the variables mentioned above and any of the possible permutations. Likewise, we can also point to where each has gone very wrong and failed. If there were truly “one right way” to do this, a profession as learned and well-read as law would have discovered it. There is no one right approach, which is why advising firms in this area is an interesting and challenging career.

A FUNDAMENTAL PRINCIPLE There is a reliable foundation from which one can build a wellfunctioning compensation program. It is a particular philosophy of compensation decision-making—a compensation principle—that I call Pay Proportional to Performance™. Two research studies support this notion, the first study by David Maister and the second by Jim Collins. David Maister, in his book Practice What You Preach, states that, “Those who contribute the most to the overall success of the office are the most highly rewarded. Notice that this does not suggest what the pay scheme should be. The determining factor is just whether the people think it rewards the right people” (p. 50). Jim Collins, in his book Good to Great, similarly reports, “The evidence

Attorney Journal San Diego | Volume 142, 2015

simply does not support the idea that the specific structure of executive compensation acts as a key lever in taking a company from good to great” (p. 49). He goes on to say, “The purpose of a compensation system should not be to get the right behaviors from the wrong people, but to get the right people on the bus in the first place, and to keep them there” (p. 50). As these two studies showed, the method of compensation is largely irrelevant as a causal factor for high and sustained performance. What matters are good decisions from respected leaders who earn trust by adhering to the organization’s values and principles.

KEY STRUCTURAL ELEMENTS On top of this Pay Proportional to Performance™ foundation are various key structural elements that frame the compensation decisions. These include market competition, internal rationality, strategic initiatives and culture. Let us take each in turn. Market Competition: We have a free market where

lawyers may move from firm to firm, go in-house, or even change professions. Pay decisions are rarely the primary determinative factor in such moves, but they often “tip the scale” when combined with other factors. Moreover, pay can become a primary factor if the market differential is large enough for a long enough period. A firm with below market profits faces a very definite risk of losing talented lawyers. Compensation decision-makers must consider this.

should recognize how well individuals support their stated environment. Again, there is the “walk the talk” opportunity to gain or erode trust and credibility.

PERFORMANCE ASSESSMENT Over the years, the legal marketplace has changed, law firms have evolved, as have the methods to manage them and pay their partners. In a 1993 Altman Weil survey on law firm compensation methodology, law firms were almost evenly divided on prospective, retrospective, or combined approaches to when the compensation decision is made. Fifteen years later, in 2008, a retrospective philosophy prevailed in 41% of the systems, while 35% adopted a mixed (prospective and retrospective) philosophy. The clear loser over time has been the purely prospective approach. This reflects a market-driven need to recognize individual performance more quickly in order to attract and retain people. Yet, over that 15-year period, the two most important partner compensation criteria in law firms remained the same: 1) the ability to acquire, maintain and grow client representation (all elements of origination); and 2) to be personally productive as measured by fees collected as a working lawyer. This is

Internal Rationality: The pay decisions should reflect

merit, looking at a broad array of efforts—economic and non-economic—that an individual contributes to a firm’s success. However, do not forget the irrefutable underlying economic principle in professional services that there must be a baseline expectation of good results and fully utilized timekeepers at appropriate price points to ensure a healthy and profitable firm. Strategic Initiatives: Most firms undertake long-term

initiatives designed to improve the firm in one way or another. Implementation of such initiatives requires individuals to invest time, often beyond a single decision cycle. In these instances, leadership has the opportunity to demonstrate that what they say is important, really is important. Pay decisions are the proverbial “walk the talk” opportunities. Do this right and firm leadership earns credibility and trust. Get it wrong and you not only risk losing that trust, but the partners’ actions may wander between what you say is important and what you demonstrate is important. Culture: The shared attitudes and values that define the

environment of a firm vary in both importance and style. If they are important, then the compensation program

Attorney Journal San Diego | Volume 142, 2015

consistent with the inescapable truth that successful law firms have consistently high and profitable utilization across all timekeepers. Further, it is imperative that partners possess a keen and well-developed ability to attract profitable business opportunities consistent with the firm’s strategic vision. Rank order of these broad attributes can be broken down as follows. First are those lawyers who do it all exceedingly well. Next are those lawyers who are great at client acquisition— creating initial relationship and opportunity to get work. Following closely after are those lawyers who are great at minding the existing relationships (retention and growth). It is exceedingly rare for lawyers to be in these groups without also being productive individual practitioners. Finally are those lawyers who are not relationship oriented, but are gifted practitioners. Listing them in this order roughly reflects the scarcity of each. At the top are the fewest in number, with each additional group increasing in size as we work our way through the list. This is not to say that those at the end of the list are not valuable. It is a matter of proportional value and there can be overlap in value among the groups. Client acquisition is first on the list for a reason. Law firms that do not meaningfully recognize client acquisition, retention and growth often transfer that recognition out of necessity or cultural orientation to the working lawyers (using the personal productivity metric). Those firms are more likely to struggle with profitability and growth, although this is not always the case. Recognizing client acquisition, retention and growth is important in compensation decisions, yet many firms do not formally track work as it comes in the door. This often leaves compensation committees to sort out a realistic snapshot of how and why clients come, stay and give more business to the firm. Moreover, this task only gets more difficult as firms grow and the nature of the client relationships expands across time zones/offices, client business divisions and firm practice groups. The best approaches to recognizing origination usually incorporate some or all of the following attributes. Shared Credits: Working together to pitch your firm’s

skills is a good thing. When those efforts result in success, recognize the entire team with origination credit. Go back to the Pay Proportional to Performance™ concept. Allocate the credits using the proportionality of effort and contribution to the sales effort, erring on the side of generosity. When the efforts do not land additional work, recognition for the efforts can come in the intangibles of marketing and firm promotion. Broad Definition of Origination: Some firms evaluate

client acquisition, retention and growth with a single very narrowly defined metric; others blend two or more metrics

Attorney Journal San Diego | Volume 142, 2015

together, creating a broader definition of origination. The debate continues about how and why a new client gives the firm its business. Frequently, the discussion now focuses on who should receive credit for long-term clients as the boomer generation lawyers prepare to retire and how to handle transition from one generation to the next. Understanding that this unique ability to acquire, retain and grow clients presents itself in a variety of ways may lead a firm to a better set of decisions. Credit Duration: At the client level, credits should last

for a period of maybe three to five years, then be phased down or reallocated based on the current contributions to the clients’ retention and growth. Often these efforts focus on relationships and strategic guidance as opposed to specific case management. At the matter level, credits naturally last the duration of the matter. The decision to open new matters or not should not be driven by reluctance to honestly assess who should get credit in the current situation. Matter-level credits generally do not require reallocation. Beyond primary economic contributions, there is a significant amount of talk about the importance of collaborative behaviors in law firms. Yet a 2009 ALM study indicated that individual performance drives 64% of compensation decisionmaking in law firms. The second greatest driver is overall firm performance at 27% (probably due to its effect on the size of the distribution pool at year-end). That leaves less than 10% weighting to subjective/qualitative areas such as teamwork in practices, departments and offices. Clearly, the “walk” of compensation decisions is not proportionate to the “talk.” To obtain proper proportionality in compensation decisions, subjectivity is likely going to take on greater weight in the final decision. However, subjectivity in this area generates the kind of polarizing passions more typically reserved for political and religious discussions. Some firms embrace a qualitative approach, while others flatly reject such notions. Nearly onethird of the respondents in a recent study indicated that no portion of owner compensation is subjective. In addition, just over one-third of respondents in the same study indicated that 76% to 100% of owner compensation is subjective. There will likely be significant change in this area as law firms and the markets they serve evolve over the next decade. Alternative fee arrangements and legal project management will evolve and clients are likely to continue to pursue different means to obtain its legal services. Pay Proportional to Performance™ is an important principle underlying good compensation decisions. Individual firms will select different compensable criteria and weigh them according to their specific views. Good judgment will bring the principle alive. n

Phone Numbers can make Surprising Impressions by Trey Ryder Trey Ryder specializes in Education-Based Marketing for Lawyers. He designs dignified marketing programs for lawyers and law firms in the United States, Canada and other English-speaking countries. Trey works from his offices in Payson, Arizona, and Juneau, Alaska. To read more of Trey’s articles, visit the Lawyer Marketing Advisor at www.treyryder.com.

’ve never been a fan of vanity numbers. 1-800-WHATEVER always raises my blood pressure when I have to figure out which number on the phone is a W, which is an H, and so on. I prefer something like this: Call 1-800-WHATEVER (1-800942-8383). Still, one thing you can’t deny is that people often remember the word better than the number. The man who got 1-800-FLOWERS is making a killing, both with this number and his Internet site. As are many others. A few years back, when 888 numbers came out, I jumped at 1-888-TREY RYDER (1-888-873-9793). Still, to be effective, my prospects will have to remember how to spell my name. Likely? Probably not. Even so, 1-888-TREY RYDER has a gee whiz value that I like. So even if it appeals to no one else, it appeals to me. Several months ago, I called my US West phone rep and asked whether any “easy numbers” were available in my calling area. Easy numbers are those deemed by the phone company as easy to remember, which allows them to charge you extra money. Where I live, US West charges a $75 one-time fee to get one of these numbers. (Other phone companies across the U.S. probably have different fee schedules.) I didn’t have many options, so I chose (520) 472-2700. I liked the 27 being the reverse of the 72, which I soon discovered apparently no one noticed but me. Even so, the number drew a fair amount of positive reaction because it ended in 00. I recently called a local car rental company where the number is (520) 472-6000. My first thought was, I wonder who they knew to get that number! Last November, I learned we had a new prefix in Payson, 468. I immediately e-mailed my phone rep and asked if he had

any easy numbers available. He presented me with 14 terrific numbers, including 468-1111, 2222, 4444, 5555, 1000, 2000, 5000 and 6000. This was like being in a candy store. Frankly, I wasn’t sure which to pick. So I asked my wife and she said the best number on the page was, obviously, 468-1000. So I grabbed 468-1000 and 468-2000 for my fax. Funny thing: Most of my prospects and clients will never use these numbers because they call on my toll-free lines instead. Still, they’re on my letterhead, and that’s what matters. At $75 each, they cost me a one-time charge of $150. But from the comments I hear, that’s a cheap and significant boost to my image. When choosing phone numbers I urge you to opt for an easy number. Even if it doesn’t mean much to you, the fact is people attach a fair amount of importance, prestige and substance to the person who has one. To a lesser extent, the same is true for vanity numbers where you have 1-888-Some Word. It’s like offices. Would you rather hire the lawyer whose firm is in Suite #1473? Or the lawyer whose firm is in Suite #1000? The more substantial firm is obviously in Suite #1000. In fact, their office probably occupies the entire floor. And the large firm probably has a phone number that parallels their suite number, like 555-1000. Now you can gain the appearance of substance without the cost of a large suite. If your phone company offers easy numbers, grab one — or a few. You’ll enhance your appearance of importance more than you might guess. And in marketing, we look for a competitive edge anywhere we can find one. n

Attorney Journal San Diego | Volume 142, 2015

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COMMUNITY news n Kimberly Ahrens was recently recognized by the San Diego County Bar Association as a recipient of the 2015 SDCBA Service Award. The annual awards recognize distinguished individuals and organizations for KIMBERLY AHRENS their commitment to serving the San Diego Community. Ahrens earned the Service to Diversity Award, which recognizes outstanding service by a member of the legal profession in promoting and encouraging diversity within the legal profession. n The Honorable Peter W. Bowie, former Chief Judge for the U.S. Bankruptcy Court, Southern District of California, has joined Ballard Spahr’s nationally renowned bankruptcy practice as of counsel in the firm’s San Diego PETER W. BOWIE office. Judge Bowie recently retired after a 27-year career on the bench. Before joining the court, he spent 14 years in the U.S. Attorney’s Office for the Southern District of California, the last six as Chief Assistant U.S. Attorney. Judge Bowie has presided over a range of cases and his experience brings even greater depth to Ballard Spahr’s bankruptcy practice. He is recognized for his skills as a mediator, and over the last year of his judgeship successfully resolved several vigorously contested, large fee application disputes. His practice will include conducting mediation settlement conferences and developing a mediation practice at the firm. Judge Bowie joins the firm’s Litigation Department and its Bankruptcy, Reorganization and Capital Recovery Group. Ballard Spahr’s bankruptcy and finance practice expanded into San Diego last year, with the arrival of partners Mr. Celentino and Mikel Bistrow. In addition to bankruptcy and insolvency, lawyers in the office handle real and personal property finance, white collar defense, regulatory enforcement, complex litigation, and intellectual property matters.

Attorney Journal San Diego | Volume 142, 2015

n Janice Brown, founder of Brown Law Group, has been appointed to the California Department of Insurance—Insurance Diversity Task Force for 2015/2016. Founded in 2012, the Insurance Diversity Task Force, headed by Insurance Commissioner Dave Jones, considers and makes recommendations about diversity in the insurance industry, including the diversity of corporate governing boards and JANICE BROWN procurement from diverse businesses. Ms. Brown’s commitment to excellence has earned her numerous accolades and awards throughout her career, including the following: the Department of Justice “Outstanding Trial Attorney” Award; California Association of Black Lawyers’ Lawyer of the Year; and Gonzaga University Alumni Association’s Distinguished Alumni Merit Award. In 2011, Ms. Brown and Brown Law Group were awarded Supplier of the Year by the San Diego Regional Minority Supplier Development Council. Ms. Brown is rated AV® PreeminentTM by Martindale. Most recently, Ms. Brown was selected by the California Minority Counsel Program as one of its inaugural Hall of Fame members. “I am truly honored to serve Commissioner Jones’ vision for economic equality. Diversity is the new normal,” Ms. Brown stated. n Higgs Fletcher & Mack, announced that Partner Richard A. Shaw was the recipient of the San Diego County Bar Association’s 2015 “Outstanding Attorney of the Year” Service Award. A nationally recognized lawyer in taxation, corporate and estate planning, Shaw was selected as an exemplary attorney for his contributions to the legal profession and service to the San Diego community. RICHARD A. SHAW An active member of the SDCBA for more than 47 years, Shaw served as President of the San Diego County Council Boy Scouts of America, President of the Eagle Scout Alumni Association, President of the San Diego Kiwanis Club, Chair of Washington-Lincoln Laurels for Leaders, Chair of the Corporate Finance Council, founding Incorporator of the San Diego Bar Foundation, Chair of the Kiwanis Foundation and Executive Committee Member for the San Diego Museum of Art, Business Circle. In addition, he is a recipient of the National Distinguished Eagle Scout Award, Silver Antelope Award and Silver Beaver Award given by the Boy Scouts of America. Lastly, Shaw is a nationally respected lecturer, writer and distinguished adjunct professor for the University of San Diego Masters in Tax Law Program where he has taught for 37 years and is known for providing pro bono tax law assistance to young San Diego lawyers.

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COMMUNITY news n The San Diego law firm of Martinez & Schill LLP is proud to announce that Partners Jennifer L. Martinez and Michelle D. Schill have been named to the San Diego Business Journal’s 2015 Best of the Bar list. This inaugural list acknowledges the top San Diego attorneys in private practice as nominated by their peers. San Diego personal injury attorney Jennifer L. Martinez earned her J.D. from the University of San Diego School of Law and earned her B.A. from the University of Washington in Seattle. Martinez focuses her legal practice on personal injury matters including: wrongful death, traumatic brain injury, premises liability, car accidents, motorcycle accidents and construction site injuries. Martinez is a top-rated San Diego car accident attorney on Avvo.com and she has earned the AV Preeminent rating from MartindaleHubbell based on her legal expertise and outstanding ethics. She is a member of the San Diego County Bar Association, Consumer Attorneys of San Diego and the San Diego Lawyers Club. San Diego personal injury lawyer Michelle D. Schill earned her J.D. from the California Western School of Law in San Diego and earned her B.A. from San Diego State University. Schill concentrates her practice on representing victims of personal injury accidents including child injuries, auto accidents, dog bites, brain injury, wrongful death, construction accidents and more.

JENNIFER L. MARTINEZ

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n Procopio Associate John Miles has been elected to the Board of Directors for Include Autism, which is a non-profit that supports the local autistic youth. This organization is dedicated to providing services that instill community-wide autism inclusion. Their focal program, Community Coaching, takes Applied Behavior Analysis and social skill training to a new level by providing a unique service that takes therapy “on-the-go” into the community. They also offer in-home support programs and therapy options, as well as recreational opportunities for these children, such as baseball leagues. John’s practice includes various issues related to domestic and JOHN MILES international business and tax planning. He assists clients in the development of business transactions including: general business matters; financing structures; mergers, acquisitions and restructurings; as well as individual estate planning for both domestic and international clients. John also advises on tax compliance issues for US persons holding assets with unreported income in foreign jurisdictions, including the Offshore Voluntary Disclosure Program and related IRS programs. n Jonathon F. Giebeler, a commercial real estate and business lawyer with Hecht Solberg Robinson Goldberg & Bagley LLP (HechtSolberg), has been awarded the Certified Commercial Investment Member (CCIM) designation by the CCIM Institute. Giebeler has also been elected to the 2015 Board of Directors for the San Diego chapter of the CCIM Institute. The CCIM designation is awarded to commercial real estate professionals after completing extensive analytical curriculum and a six-hour exam and presenting a portfolio of qualifying industry experience. The curriculum addresses financial analysis, JONATHON F. GIEBELER market analysis, user decision analysis and investment analysis —the cornerstones of commercial investment real estate. CCIMs are recognized experts in commercial real estate brokerage, leasing, asset management, valuation and investment analysis. Giebeler earned a Master of Real Estate Development degree and a Juris Doctor degree from the University of Southern California. He is also a member of the San Diego chapter of NAIOP. Attorney Journal San Diego | Volume 142, 2015

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Caring Beyond The Courtroom ATTORNEY

OF THE MONTH

2015 2014

Gregory Rizio Believes in Putting Clientsâ&#x20AC;&#x2122; Needs Ahead of His Own, Championing His Colleagues, and Cultivating a Positive Reputation for Personal Injury Attorneys by jennifer hadley

Attorney Journal San Diego | Volume 142 2015

The Rizio & Nelson Team: (L to R) Greg Rizio, Darren Pirozzi, Aaron Hicks & Michele Markus

“My desire to become an attorney began when I was a child. My grandmother told me that I always seemed to have an answer to her complaints, so she told me I should become a lawyer,” laughs Gregory Rizio, Founder of Rizio & Nelson. “Later on, while attending Point Loma Nazarene College I thought about becoming either an attorney or a youth pastor. I guess you could say that I had an angel on one shoulder and a little imp on the other. Apparently the imp was a little louder, but I feel great that I get to live my life by serving my clients and honoring the Golden Rule,” he says sincerely. Rizio isn’t just blowing smoke, either. It is precisely his willingness to help others that makes it immediately clear that Rizio is the furthest thing from a “cut-throat, smooth talking” Personal Injury attorney. On the contrary, Rizio is candid, selfdeprecating, and frankly, a really fun guy to interview. He’s also very open about the fact that it bothers him that there are those who share his profession who do live up to the stereotype of

“ambulance chaser.” By way of example he says, “I got a call just a few days ago from a young man who was incredibly frustrated. He’d spent the day calling attorneys, and no one would take his case. But no one would tell him why. That’s not right. I specialize in helping people, and that means that I help them however I can. I didn’t take his case either, but I spent the time necessary to explain why no one was going to take his case. By the end of the call he was so relieved to finally have answers. He just needed someone to spend a little time with him and help him.” Fortunately, Rizio says, those who are in the field of Personal Injury for reasons other than helping people are the minority, not the majority. This is especially true of many of Rizio’s closest friends in the field. “When you get to a certain level [of success], you’re rooting on your competition. I want to see my fellow attorneys do good work. I’m rooting on people like John Gomez, John Rice, Fred Schenk and Bill Shapiro. Sure, there Attorney Journal San Diego | Volume 142, 2015

is a little friendly competition amongst attorneys, but what I really want to see are good results. We have tough jobs, and I like seeing my colleagues help those who need help. Plus, I love seeing laws being created or changed to keep people safe.”

Clients’ Needs Come First

“My firm, like most well-respected firms that are in this, do it for the greater good. Every attorney at Rizio & Nelson truly desires to develop a family type bond of trust with our clients. We understand that the clients and their family have been put into a position that they did not ask for, anticipate or expect. In most cases, the clients are hurting, angry, confused and scared about an unknown future. It is our job to provide them with an emotional stability to help carry them through this unbelievably tough and frightening time. We are here to help them come to grips with their new reality and help them regain their focus, strength and hope.” Once again, Rizio isn’t just talking the talk, he’s speaking from experience. He can still recall exactly where he was when catastrophe struck his own family. “My wife and I were leaving dinner, when we got the call that her grandfather had been killed in a head-on collision. I remember that feeling, and I know what it is like to get that kind of a shock. Saying it’s a tough place to be in, is obviously a gross understatement.” His personal experience with tragedy has only served to reinforce his desire to help, even when others think he’s taking on a case he can’t win. Such was the case when Rizio decided to take on Herman vs. Cardiel. Little did he know that a case that most attorneys had turned down would result in the #1 verdict in the State of California, or that it would be the #1 Plaintiff’s Injury verdict in the nation, or that it would wind KeithPersonal A. Davidson up being the 10th largest verdict in the nation in 2014. Rizio, 18

Attorney Journal San Diego | Volume 142, 2015

frankly took it because he believed in the case. “I took the case for two reasons. The first was that the statute of limitations was almost up. The second reason was that I thought there was a chance that the insurance company had really screwed this up. The plaintiff was a 25-year-old man who would need a lifetime of care after a 2011 accident on Interstate 15 left him unable to speak or move his limbs. But I believed and continue to believe he was fully aware of what was going on. I needed to help him and help his family. No one wanted the case, there was a $15,000 policy limit, and most people thought we were going to lose,” he says. The final result was an incredible $57.9 million verdict in Riverside Superior Court, which now stands as the record for the largest Personal Injury jury trial verdict in the history of Riverside County. Not surprisingly, Rizio received award after award, including the Litigator’s Award in the categories of catastrophic brain injuries, catastrophic injuries, wrongful death and personal injuries, which is bestowed upon the top 1% of attorneys nationwide. The Western San Bernardino County Bar Association awarded him Trial Lawyer of the Year in 2014, and he was again named Trial Lawyer of the Year in 2015 by the Consumer Attorneys of the Inland Empire. He was named a 2014 Top 5 Trial Lawyer of the Year Finalist by the Consumer Attorneys of Los Angeles, and was simultaneously nominated by Consumer Attorneys of Orange County as Trial Lawyer of the Year. Yet when asked which of the many awards he received felt like the biggest honor, Rizio says simply, “I find it a massive honor when people hire me.” Rizio’s resume is filled with other incredible accomplishments, many of which benefit us all, as evidenced by Palumbo vs. San Dimas. While Rizio secured a $9,000,000 settlement for his

client, he’s far prouder of the fact that what he did in that case was to protect other drivers on that road. “I look at cases like that, with a 16-year-old client, as if they could have been my child. Part of the settlement was a complete re-design of the roadway, including adding a rest-on-red light signal, a narrowing of the roadway to reduce speeds and the removal of dangerous wooden fence that was changed out to PVC fence.” Rizio is also the rare Personal Injury attorney who will take on child abuse cases, after ascertaining that the lawsuit will in no way further stress or affect the plaintiff’s wellbeing. “Most personal injury attorneys don’t take these cases. It is hard to get insurance to pay for it, and believe me, and I’m not the guy who does a lot of these cases, but if I think it will help get justice for a child, I will take it on,” he says. “I really do try to live by the Golden Rule, and I put my clients’ interests ahead of mine.”

Championing Colleagues, Commitment to Serving the Community

Rizio is incredibly proud of his team at Rizio & Nelson. “The wonderful attorneys and staff I get to work with make it a joy to come to work every day. All the members of my firm have strong ties to the San Diego community. After attending Point Loma Nazarene College I went on to California Western School of Law and then spent a short stint with the San Diego District Attorney’s office. I met my colleague Darren Pirozzi walking into the doors of California Western School of Law orientation and have maintained a close friendship ever since. Aaron Hicks came from Tennessee to San Diego to attend Thomas Jefferson School

Family: Cassie (17), Caleb (16), Olivia (11) and lovely wife Ericka

of Law where he met his lovely wife Laura and decided to stay. Both Darren and Aaron maintained successful solo practices until joining up with our firm. And then of course there is Michele Markus and Judie DeuPree, who have both worked with me for over 20 years. Without those two watching the firm and my back, we never would have achieved the success that we have.” Together the team at Rizio & Nelson work on cases wherever they are needed throughout the state and in Arizona. In San Diego, Rizio currently has several major cases, including a severe spinal injury suffered as the result of a falling tree, and a traumatic brain injury case, in which a homeless man was struck while crossing the street legally, in the crosswalk. Recently Rizio also settled a wrongful death case in San Diego against a power company after an employee was electrocuted, and no one else wanted the case. “Numerous attorneys turned down the case believing it only to be a workers’ comp case. But through investigation, we discovered that a large building had been improperly wired, so we were able to settle the case just days before trial for $3.8 Million,” Rizio says. “Of course, it doesn’t bring back the children’s father, or a wife’s husband, but we were able to help after others turned it down.” Still, Rizio is, more often than not, quick to brag about those who could ostensibly be seen as direct competitors. “I’m so proud to be in the company of so many talented attorneys throughout Southern California,” he says. Moreover, many of Rizio’s friendships with Southern California’s top trial attorneys were formed as the result of his deep commitment to giving back to the legal community by serving on various committees in support of the profession. Similarly, “I have dedicated my law career to memberships and councils where

Contact: Gregory Rizio Rizio & Nelson www.rizioandnelson.com | grizio@rizioandnelson.com 1801 Parkcourt, Building H, Santa Ana, CA 92701 Phone: 888-745-7595 20

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EXPERIENCE

I can make a difference in protecting people. I am extremely proud to be serving on the CAL-ABOTA Executive Board, the Inland Empires’ ABOTA Executive Board, and to be Consumer Attorney of California’s Executive Counsel.” He also spends as much time as possible participating in charity work through his church, often building homes in Mexico, feeding the hungry in Africa, as well as other humanitarian efforts. In fact, giving to those in need is a way of life in his family, and this summer his 17-year-old daughter will also head to a third-world country to serve orphans. “I’m excited and proud of her, but a tad petrified. I’m a personal injury attorney, I can’t help it,” he chuckles. But rest assured, if there is one thing Rizio is not, it’s a “square.” Despite being known for paying incredibly generous referral fees, giving his clients his personal cell phone number, taking on cases that others turn down, working safety improvements into settlements, and giving back to charity, believe it or not, Rizio is concurrently a nightclub owner, which he can’t help but laugh about, when questioned about it. “I do own the Continental Room, even though I’m too old to go to my own nightclub,” he laughs. Continuing, he says, “I’ve offered to set up colleagues and friends in the legal community with a VIP room, which makes me sound very generous, but no one ever takes me up on it! We’re all too old. Besides, I’m an attorney by day and basically a cab driver for my kids at night.” However, he’s happy to do the driving, and loves attending volleyball games, soccer games, and watching his daughter cheer. The family also loves mountain getaways, when time allows. “Our firm’s success would not have been possible without my wife Ericka and my three kids understanding that what I do is more than a job,” he says. Indeed, Rizio is clear that the families of highly successful attorneys deserve a great deal of credit for patience, understanding and support. In fact, he tries to share that message with young attorneys pursuing the same path. “The first thing I tell any new attorney is that being a successful lawyer is not a 9 to 5 job; it is a lifestyle choice. It is something that must truly be who you are. I also tell them not to do it for the money. If they honestly do it to serve their clients and the legal community by living out the Golden Rule, they will really love what they do and the money will take care of itself.” If it sounds like Rizio is an open book, that’s intentional. “I want to change the perception many people have of lawyers. I am genuinely sorry any time a client has to meet with me, because I know that means something horrible has happened in their life. But you know, I thought I might want to be a minister years ago, and in some way I feel like I’m now able to minister to my clients. And I feel like I’m living the life I’m supposed to live, and that what I do to help people reflects who I am.” n

» EDUCATION • California Western School of Law, San Diego, California, J.D.— 1991 • Point Loma Nazarene College, San Diego, California, B.A. cum laude—1988

» EXPERIENCE • ABOTA (Inland Empire Chapter); President Elect, 2014 • Past President (2011-2013); Consumer Attorneys of the Inland Empire

» MEMBER • Executive Board Member; Consumer Attorneys of California Plaintiff Legislative Branch • CAL ABOTA Board Member; Inland Empire President Elect • Orange County Bar Foundation Board Member • Multi-Million Dollar Advocate Forum, Personal Injury Category

» RECOGNITION & AWARDS • 2014 Litigator’s Award in the categories of catastrophic brain injuries, catastrophic injuries, wrongful death and personal injuries, which is bestowed upon the top 1% of attorneys nationwide • Western San Bernardino County Bar Association Trial Lawyer of the Year in 2014 • Nominated by CAOC as Trial Lawyer of the Year in 2014 • 2014 Jennifer Brooks Trial Lawyer of Year; Western San Bernardino County Bar Association • 2015 William Shapiro Trial Lawyer of the Year; Consumer Attorneys of the Inland Empire • 2014 Top 5 Trial Lawyer of the Year Finalist; Consumer Attorneys of Los Angeles • Top Monetary Personal Injury Verdict for California & Top 35 in National Plaintiff Verdicts (Overall) Herman vs. Cardiel 2014, Riverside County ($57.9 Million) • 2014 Top 100 Trial Lawyers; The National Trial Lawyers Association • Nations, Top Attorneys Recognition; National Association of Distinguished Counsel Organization • Super-Lawyer; Personal Injury Category, Southern California Region • Top Attorneys Recognition (various years recognition in the following magazines): Inland Empire Magazine, Orange County Metro Magazine, Orange Coast Magazine, Los Angeles Magazine, Valley Living Magazine, The Nine O Nine Magazine

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7/12/13 5:04 PM

he easiest lead to close is a referred lead. Unfortunately, not many attorneys have mastered the art form that the process en-tails. I’ve developed a simple, seven-step process to obtaining referrals

that will give you so much more success in developing your referral business that you will make it an automatic part of every selling situation. Begin by setting a goal for how many referrals you want from each contact. Start with a goal of just one referral every time, and work your way up to a place where you know the steps so well and they flow so naturally that you’ll get at least three referrals from every client. Then, memorize these seven steps to getting referrals. The better you know them, the better you’ll mine the rich lode of referrals that’s just waiting for you in your current client base. 1. Help your clients think of specific people they know.

2. Write the referrals’ names down. 3. Ask qualifying questions about the referrals. 4. Ask for the referrals’ contact information. 5. Get the referrals’ addresses from the phonebook (if the client doesn’t have them).

7 Steps to Getting Referrals by Tom Hopkins

Since 1976, Tom Hopkins International has been dedicated to providing the finest sales training strategies and techniques to individuals and companies alike. Tom Hopkins is world-renowned as The Builder of Sales Champions. His selling skills and sales strategies have helped millions of sales professionals and business owners in industries from A to Z to serve more clients, make more sales and earn millions in income.

6. Ask the client to call and introduce you to the referrals. 7. If the client shows nervousness or refuses to call, ask if you can use the client’s name when you contact the referral. Those are the basic steps. Now, let’s review them in detail so you’ll see how to work with each one most effectively.

STEP #1: HELP YOUR CLIENTS THINK OF SPECIFIC PEOPLE THEY KNOW When you ask for referrals, you have to give your client a group of faces to focus on. Centering on one or two faces is impossible when their thoughts are bouncing off the wall with their new home—which means your job is to get them focused again. SALESPERSON: Bill and Jane, you’re excited with your new home, aren’t you? CLIENT: Oh, it’s wonderful. We can’t wait to get settled! SALESPERSON: So tell me, who will be the first people you tell about your new home? CLIENT: Well, our relatives, of course. Then, our friends who live in the same area. It’ll be nice to be close to them. SALESPERSON: That’s great. Are there any of your relatives or friends who might also be in the market for a new home? By mentioning family and friends, the client focused in on those people he is closest to and with whom he’ll be in contact that very week . . . while his excitement over his home is still fresh. And the salesperson has helped him do that.

STEP #2: WRITE THE REFERRALS’ NAMES ON CARDS When your clients come up with a few people who are in the market for a home, take out 3x5 index cards or a small notepad and write down the

Attorney Journal San Diego | Volume 142, 2015

names of those referrals. (Be sure to ask how to spell the names.) Keep the cards out so you can jot down the information they give you. Plus, you’ll need those notes to qualify the referrals.

STEP #3: ASK QUALIFYING QUESTIONS While Bill and Jane are busy answering questions about the referrals, you should jot down notes to help you remember specific things about them. Here’s some information you may want to know when you contact the referrals: • Where do they live now? • Would they be moving up to a larger home or are they just interested in something new? • What did they say when you told them you were looking for a new home? When you get in touch with the referrals, you’ll be able to begin conversations with them based on Bill and Jane’s answers to your questions. When you’ve taken a few notes, move on to the next step.

STEP #4: ASK FOR CONTACT INFORMATION Asking for the addresses and phone numbers of the referrals is more difficult because your client may not know this information offhand. But don’t let that deter you. You can’t just settle for the name, because there may be several people with the same name in the phonebook when you try to look it up later. And knowing how to contact the referral is critical.

STEP #5: USE THE PHONEBOOK TO GET THE INFORMATION YOU NEED If your client is willing to give you a referral’s address but doesn’t know it offhand, reach for the phonebook and politely ask the client if he would be kind enough to help you out and look up the address in the phonebook. Your request could be as natural as the one in the following conversation: SALESPERSON: I don’t know about you, but this has been thirsty work. What would you like to drink, a soda? Or would you prefer coffee? BILL: Water would be fine with me. JANE: The same for me. Thanks. SALESPERSON: Tell you what. While I run to get us some water, would you mind looking up the addresses of the names you gave me in the phonebook so we can get this done? Ask this last question while you hand the customer the phonebook, and then leave the room to get the water. At this point, you’ve all but “closed” on how to contact the referral.

STEP #6: ASK YOUR CUSTOMER TO CALL THE REFERRAL AND SET UP THE APPOINTMENT This step is where most novice salespeople balk. They won’t even try it. But those clients who will make the call will help

you comply with the Do Not Call Registry. If the referral’s name is on that list, you can’t call them without their permission. Your existing client can, at the very least, get that permission for you. Also, keep in mind that this question is simply setting the stage for the final step. Those clients who are uncomfortable calling for you will be so relieved that you offer them Step #7 that they’ll jump on it. If you had gone directly from Step #5 to Step #7, you may not have gotten the same response. There is a method to my madness here. Here’s how it works. SALESPERSON: Thanks so much for the referrals, Bill and Jane. You know, since I won’t get to see your excitement when you show off your new home, would you mind calling Don and Mary and sharing your good news with them? Then we can work on arranging a time for me to talk with them. If your clients are fine with that, then good: Start dialing. But if they hesitate and act uncomfortable, take the pressure off immediately by moving on to the next step.

STEP #7: ASK TO USE THE CLIENT’S NAME WHEN YOU MAKE CONTACT WITH THE REFERRAL Your clients may not know the referral all that well, or they may feel uncomfortable making the call. If this is the case, let them know you understand their hesitation, but ask if you could bother them for one more favor. Ask for permission to use their names when you contact the people they referred you to. They’ll probably be relieved to be let off the hot-seat and be more than happy to give you permission to use their names. Always give three or five of your business cards to each client and ask them to give them to others who come to mind who might need your services. Then, invest in a little followup after they’ve gotten settled in their new home. Ask them how it’s going and who they’ve showed the home to. Once again, help them focus on small groups of people they know and ask qualifying questions as to the needs those people might have. Ask if they have given your card to anyone. If they have, get that person’s contact information as well. If they haven’t, thank them for their business anyway and repeat your request. The “S” in the word “sales” stands for “service.” The better service you provide, the bigger your sales volume will be. It may take you a few tries to get this pattern down to where it flows naturally. However, it’ll become a natural part of every contact once you see the phenomenal results it generates. Many of my students have gone from getting one or two referrals from five or more clients to getting five referrals from every client. Don’t you think it’s worth a try? n

Attorney Journal San Diego | Volume 142, 2015

How Successful Firms Implement Strategy by Bob Denney Bob Denney is President of Robert Denney Associates, Inc. He and the firm provide management, marketing and strategic planning counsel to law firms and privately held companies throughout the United States and parts of Canada. He has authored or co-authored seven books and has written many articles on these subjects. For information about Bob, the firm and their services, visit their website www.robertdenney.com.

ost experts on the legal profession currently agree that there is still a shortage of legal work and an over-supply of lawyers. But they also report that overall revenue grew in 2014. There are several reasons for these conflicting reports. One of them is that many of the firms that are doing well have not only developed well thought-out strategies but have also implemented them. The firms that have successfully implemented their strategies, even when they’ve had an adverse affect on some of their partners, generally have followed one of two approaches. The first is a full-speed ahead, damn-the-torpedoes approach in which firm management just drives implementation forward. The firms that succeed with this approach realize that most of their partners don’t particularly care what management does as long as it does not affect their own practice or work life. Most management theorists decry this approach as imperialistic.

Attorney Journal San Diego | Volume 142, 2015

However, it generally works well when there is a new managing partner or a strong management group. The other approach is more political and generally takes longer. While the strategies are extremely specific and detailed with regard to action steps, responsible parties and target dates, the greatest difference in this approach is that the goals are incremental and limited. As they are successfully implemented, new goals are developed. Regardless of which approach a firm takes to implementation, the leaders are granted “nagging rights” by either firm culture or personal approval to remind, encourage and even badger the rest of the firm to move forward. Lawyers don’t like change, but implementing strategies involves change and here is the important point: Change doesn’t always result in improvement, but improvement rarely comes without change.

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Key Performance Indicators Knowing the Numbers That Drive Your Law Firm’s Growth by Stephen Fairley

s we enter the final stretch of this year, it’s important to review your numbers from the first part of this year. Are the numbers of leads you are getting up, down or flat? Are your revenues up, down or flat? How are your receivables? Are you hitting the financial goals you had for your firm this year? These are all known as “Key Performance Indicators” and earlier this year I wrote Part 1 of a series of articles about Key Performance Indicators: Knowing the Numbers That Drive Your Law Firm’s Growth. Since it’s been a few months since Part 1 came out, I think it’s important to quickly review a few critical points:

(a) Count how many leads are generated in a given time frame (a month, a quarter, etc.).

• You must know what the most important numbers are to measure. In my experience, one of the biggest factors holding law firms back is that they do not know what numbers to measure, other than the amount of billable hours they can charge clients or perhaps their net operating income after running a basic profit and loss statement.

KEY PERFORMANCE INDICATOR 2: NUMBER OF APPOINTMENTS SET & KEPT PER MONTH

• You need to appoint a specific person who is responsible for tracking and measuring the data. In most cases, this should not be the attorney or partner. It should be an Office Manager, Bookkeeper or a key person who is completely aligned with the Partner(s). • You must analyze the results of the data. It’s not enough to gather the data. It needs to be analyzed so that wise decisions can be made based on what the data tells you. • The first KPI is tracking the number of leads or contacts per month your firm receives and where those leads come from. In Part 1 of this series we focused on tracking the number of leads or contacts your firm is obtaining each month. It’s very difficult to build a financially successful law firm without knowing how many leads or contacts your firm receives each month. Once you know that number then you can begin to determine your Cost Per Lead (CPL). Here’s an easy way to measure your CPL: 26

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(b) Determine how much money the firm invested in marketing during the same time frame. This can include spending on your website, blog, social media, ads, and your marketing staff. (c) Divide the amount of money you invested by the number of leads generated. (d) Be sure to compare month to month, quarter to quarter.

The next Key Performance Indicator you want to track is the number of appointments set and kept per month. Based on the number of leads or contacts your firm receives you want to determine what percentage of those you and your team were able to connect with, set an appointment with, and to what percent of those appointments did the prospect actually show up. Let me explain how this works so you catch all the details. Let’s say that through a variety of marketing methods your firm is getting about 50 new contacts or leads per month. Remember, a “lead” meets the following three criteria: (a) someone who has never done business with you before (versus a repeat client); (b) anyone who expresses an interest in your legal services; and (c) everyone who contacts your firm, whether it’s by email, phone, social media, your website, a personal referral, the internet, a legal directory, your ad, by meeting you at a networking event, or attending a seminar you gave. Once you are tracking this number, the next one to go after is how many of those leads are turning into appointments? You are looking to track your conversion rate of leads into appointments. If your firm is generating an average of 50 new

leads per month, setting 20 appointments from those leads, and of those 20 appointments set 10 of them actually show up at your office;,then your conversion rate of leads to appointments is 40% and your conversion rate from appointments set to appointments who show up is 50%. Is that good or bad? Can it be improved? Fifty to seventy percent is a good rule of thumb when it comes to conversion rates. Most firms should be able to consistently achieve a 50-70% conversion rate if they are following best practices. Using that range, your numbers would look like this: an average of 50 new leads should result in 25 to 35 appointments set and 13 to 18 appointments kept. Now some practice areas, like business law, estate planning and litigation, do not have issues with “no shows,” while other practices constantly struggle with them (like bankruptcy and family law). Also, contingency practice areas, like personal injury, are likely to have a much lower lead to appointment set conversion rate because there are many inquiries that don’t result in a legitimate claim. Lead generation is expensive! In fact, it is often the second most expensive thing you do in your law firm, the number one being paying your staff. If you are going to invest in lead generating activities, then you also need to invest in following best practices in lead conversion strategies. Here are a few of the “best practices” we have learned and taught to our clients at The Rainmaker Institute. When trying to improve your “Lead to Appointment” conversion rate: • Don’t rely on attorneys to return phone calls. Yes, I know every attorney says (and believes) they are great at returning phone calls and communication, but the simple truth is 95% of them are terrible at it! If all of them are so “responsive” than why is “lack of client communication” the number one reason why attorneys get reported to the state bar every year? Furthermore, if attorneys won’t even return the calls of their clients, how much less can we rely on them to return calls from interested prospects? • Hire an Appointment Setter. We have seen revenues increase by 20-50% at law firms who do this simple step. Find and train an Appointment Setter whose primary responsibility is to take incoming calls from prospects, call prospects back, set appointments for the Partner, and ensure those appointments show up. This is usually a $10-$12 per hour job and while you may have them doing other things, like filing, their primary focus is to set appointments for the attorneys with interested prospects. If you are consistently getting more than 50 leads per month you really should have a dedicated Appointment Setter. A great one is worth their weight in gold! • Call prospects at least 4-5 times before giving up. Seriously? Yes, that is not a typo. Here’s the reality: everyone is busy. If they called your office it wasn’t because they were bored and had no one better to talk to! It’s because they have a legal issue and they think you may be able to help them. Just because they don’t immediately call you back after you leave a message for them does not mean they are not interested. You have no

idea what’s going on in their life. They might have become sick, gone on vacation, lost your number, become distracted, left a message for a competitor (who won’t call them back), or whatever. A major mistake attorneys and their staff believe is that one return call is sufficient. It rarely is. The best practice is to call back the prospect a minimum of 4-5 times within the next 1-3 weeks before you give up. This is another reason why I never trust attorneys with following up—the most they will do is one call, if we can even get them to do that. • Contact prospects within 5 minutes after they initiate contact with your firm. In a nationwide survey of over 2 million business to business leads that were generated online, researchers found it only takes an average of 5 minutes for a “hot” internet lead to turn cold. You need to have a system that can reach out and connect with prospects literally within minutes after they fill out a contact form or request a consultation. When minutes count, lawyers are only hours away. If you are a consumer law firm it’s virtually guaranteed that yours is not the only firm that prospect is contacting about their legal issue. More than likely, you are one of several firms and the one who reaches that prospect first will likely secure an appointment with them. The next best thing to having someone on your staff personally and promptly call a lead is to have an automated follow-up system. We have helped a number of law firms set up highly sophisticated follow-up systems that use automated emails to assist in following up with interested prospects. We have found it can double their “lead to appointment” conversion rates within 60-90 days. • Don’t waste too much time “qualifying” leads over the phone. There are two different models when it comes to “qualifying” leads. The first one I call the “pulse and a paycheck” model—meaning if you call my personal injury office and you tell me you were injured in a car accident, I’m going to try and set an appointment with you. This approach uses very few questions to qualify a lead other than: Do they live in my area? Does it seem like they have a legal issue we can help them with? And will they come in to meet with an attorney? The other model came about because of attorneys who complain “I only want to meet with ‘qualified’ leads.” When you ask these attorneys how they define a “qualified lead,” they give you this laundry list so that it starts to sound a lot like someone who even a trained monkey could sign up (no offense to trained monkeys everywhere). While I completely understand no one wants to waste their time talking to someone who absolutely can’t afford their services, the highest chance you have of converting someone into a paying client is to meet with them face to face. If you’re trying to grow your practice I recommend qualifying as little as possible over the phone. Get them into your office as soon as possible. Over the years, we have consulted with firms who use the first model and other firms who use the second model. Both models can work, but in general, Attorney Journal San Diego | Volume 142, 2015

firms who qualify the least over the phone and push prospects to set appointments grow faster than firms who only set appointments with “highly qualified” prospects. • Never, ever give prices over the phone! I can only think of one situation when it benefits you to discuss your prices during an initial call with a potential client—when it’s free (or contingency). Here are a few reasons why you should never, ever discuss prices on an initial call. When asked about prices on your first call it’s almost always used to disqualify your firm (“that’s too much”). While I understand why consumers want to know your prices, it almost never works out well for you when you tell them your prices over the phone. Ask yourself, when is the last time you heard a prospect say, “Wow, I didn’t expect your prices to be so low!” after you discussed money with them over the phone? It encourages price shopping, which directly impacts your profit margin. It encourages you to try and “match” the lower price they tell you some other law firm offered them. You could be walking into a “trap” whereby a client only tells you part of the problem, which leads you to give a lower price, and then

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tries to hold you to it (or you feel obligated to honor it) when they come into the office and tell you the whole story, which is significantly more complex than what they had initially told you. It attracts people who only care about getting the lowest price. Often these are the same people who constantly complain, never say thank you, and don’t pay their bills on time. Lastly, it does not give you the chance to prove your value or demonstrate your knowledge and expertise. If push comes to shove, then you can give them a wide range with lots of caveats, but never a firm quote. Better yet, just make it a rule to never discuss prices over the phone. Stephen Fairley is CEO of The Rainmaker Institute, LLC, the nation’s largest law firm marketing company specializing in small law firms. Over 8,000 attorneys have benefited from applying their proven Rainmaker Marketing System. Stephen is a best-selling author of 10 books and a nationally recognized law firm marketing expert. He has appeared in the American Bar Association’s journal, Harvard Management Update, Inc and Entrepreneur. To receive your FREE copy of his book “Top 10 Marketing Mistakes Attorneys Make” visit www.TheRainmakerInstitute.com, www. RainmakerRetreat.com or call 888-588-5891. n

oo many lawyers unnecessarily impose artificial geographic limits on their practices. Why not let potential clients decide how important your location is? Whenever I begin coaching a lawyer, one of the first things we do is define what their optimal client looks like. One simple, reliable way to do that is to ask about their best engagement in the past couple of years. You know what I mean: The work was challenging and interesting, and really showcased you at your best. The client paid the bill in full, on time, without a bunch of nickel-and-diming. They gave you the love, i.e., they recognized and expressed appreciation for your skill, creativity, dedication, and commitment, and treated you with the respect due a trusted partner. Yeah, that client. Who wouldn’t want more just like that? Lawyer: “One of the best engagements I ever had was creating a master set of supplier agreements for a huge online shoe retailer. I set things up in a way that should eliminate about 90% of the previous causes of litigation between their suppliers and them; it will save them a ton of money. Fees were about $100,000, and they were happy to pay it. We really enjoyed working together, and they’ve been one of my best references since.” Me: “OK, great. Why don’t you use that success to get more clients just like them?” Lawyer: “This isn’t New York or L.A. There are no other big online retailers based in this area.” Me: “Is location important to them?” Lawyer: “I guess I don’t really know; I never thought about it that way before.”

NOT-TO-DO: LIMIT YOURSELF BY GEOGRAPHY This is fairly representative of these conversations. Lawyers assume that location matters. Perhaps because it would matter to them. Or maybe it’s a vestige of when all business was more local, when it was important to form a personal relationship before having a business relationship. However, assuming that location is either an advantage (“We have an office in your town”) or a disadvantage (“We don’t...) is usually unfounded. For some companies, in some circumstances it’s one or the other. It’s not universally true either way. Often, it doesn’t matter at all. Business is increasingly borderless, whether it’s the literal globalization of big business, or the virtual globalization of all business conducted online. That means that business communication and interaction is primarily electronic now, which means that location is becoming meaningless. (Set aside for now the need for local counsel in litigation.) Think about your best client. Let’s say that, on average, you bill them 500 hours per year. How many of those 500 hours are spent face-to-face, even if the client is local? Look at your entire practice the same way. What percentage of your 1,800 billable hours are spent faceto-face with the client? I’m betting it’s a small percentage.

Not-To-Do #6

Limit Yourself by Geography by Mike O’Horo

For 20 years, Mike O’Horo has been known by lawyers everywhere as The Coach. He trained more than 7000 of them, generating $1.5 billion in new business. Mike can be reached at mikeohoro@rainmakervt.com

Attorney Journal San Diego | Volume 142, 2015

TO-DO: LET THE MARKET DECIDE IF LOCATION IS IMPORTANT I’ve read hundreds of key-client interviews and clientsatisfaction reports. I can’t recall anyone citing location as an important reason for choosing that firm or lawyer. (I’m not saying it’s not important to anyone, merely that if it came up at all, it wasn’t frequent enough to lodge in my memory, or wasn’t emphasized.) Let’s return to the online retailer example above. Let’s say this lawyer lives in Las Vegas and the client for whom she did a great job was Vegas-based Zappos. Is the game over because Zappos is the only online retailer based in Vegas? Not at all. Who would care less about location than a company doing business solely via the Internet? Is Zappos the only online retailer that has disputes with suppliers? Are those disputes unique to shoe suppliers? No and no. Here’s what that lawyer could do to exploit her success if she ignores geography: 1. Speak to Zappos to learn whether this problem is a one-off, i.e., unique to Zappos for some reason, or that other online retailers face similar challenges with supplier agreements.

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2. Ask Zappos to introduce you to contacts at other retailers—not to pitch them for business, but to get a better understanding of how this issue affects online sellers, per se. 3. Speak with those referrals to develop a tightly focused description of the problem, one that reliably opens doors to discussion with similarly situated companies. (While you’re at it, ask them to introduce you to others from whom you could get informed opinions.) 4. Position herself as the Supply Chain Lawyer, and never again let the words “corporate lawyer” or “contracts lawyer” pass her lips or emerge from her keyboard. 5. Using her knowledge of supply-chain challenges, write for online retail industry media, speak at online retail conferences, and comment to the media that covers that industry. 6. At industry conferences, network differently. Filter the crowd, qualifying people by testing their willingness to acknowledge that they face your demand-triggering supplier problem. 7. Make a home in that industry. Become one of them, a well-informed peer who contributes to the industry conversation. The key is to abandon the notion that you must have a personal relationship as predicate to doing business together. Instead, enable companies to form a relationship with your ideas. A percentage of those exposed to your views will strongly disagree with them. That’s OK. In fact, it’s desirable, because knowing that you disagree, you’ll not waste each other’s time. A majority won’t care one way or the other about your stance because they don’t care about the supplier problem. Either they don’t have that problem now, or they’ve already solved it, or they’re in denial about it. They’re not forming a relationship with anyone’s ideas. At the other end of the spectrum, though, is your tribe. These are the people who, reading or hearing you, nudge someone and say, “See? I told you so.” They think you’re a genius. Why? Because you sound like them. They’ve found their idea-mate. They’ll choose to pay attention to you. They’ll subscribe to your blog, choose your session at conferences, etc. As you reinforce your idea-relationship over time, it won’t be possible for them to talk about supplier relationships without your name coming to mind, so firmly will you be indexed to it. You’ll own it. What percentage of those people will care where you’re located? Nobody knows, but they’ll sort it out for you. The world really is your oyster. So, put geography aside and open yourself to the borderless exchange of ideas, and make it easy for your tribe to find you. n

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