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Before getting into the specifics of these suggestions, I want to stress one overarching point: remember your lawyer is a part of your TEAM, who along with your employees and your investors, is pulling for your company's success. My experience has been that when companies view their lawyers this way, it enhances the effectiveness and efficiency of their legal services. This type of relationship is what good business lawyers truly strive for. Indeed, we chose this line of work because we are good at overcoming the challenges faced by businesses and enjoy watching the success that flows after an obstacle is removed. If you feel your current legal team is incapable of establishing such a relationship, it is time to seek new counsel.
Keep your legal team informed.
Most business lawyers bill by the hour and, as a result, clients often think they are doing the smart thing by minimizing their contact and consulting with their lawyer only when pressing legal issues arise. In the long run, however, you are far better off if your legal team is kept current as to your company’s activities and this does not have to be a costly undertaking. In fact, a good business lawyer should not charge for well structured time apprising him or her of your needs and will be glad to have the opportunity to get to know you and your business "off the clock."
Be proactive rather than reactive.
Be proactive with your legal team to help you catch problems before they become too serious. This step is related to the previous -- the only way your legal team can help you be proactive is if they are kept informed. Too often, lawyers find out about the legal issues their client are facing after it’s too late for them to be easily resolved. Every situation I can think of where a client of mine, or a colleague, tried to save money by taking shortcuts, resulted in at least as much cost and certainly more heartache for that client.
Allow your legal team to prevent fires from starting rather than just putting out the flames once they are raging. Doing this can help prevent you from getting sued, having to sue, unknowingly giving away rights, jeopardizing employee and customer relationships, and compromising other important aspects of your business including your reputation.
Be organized.
Manage your legal services by being organized. Sign papers your lawyer sends you right away and follow their instructions on what to do with the originals and copies. Make sure to send a copy of all executed contracts, minutes and other important business documents to your lawyer for his or her files.
Most lawyers bill by the hour regardless of the task, so remember that an hour of time spent by a lawyer trying to track down your document costs the same as an hour of the lawyer’s time in providing substantive legal advice.
Plan ahead and prepare for meetings and significant phone calls with your legal team. Even if it is in the format of a quick e-mail, it always helps to send out a list of the topics you want to cover in advance. This will enable your legal team to do any necessary background research or analysis before the meeting rather than after, which gets you answers sooner and more efficiently. It will also help the meeting become more proficient by keeping you both organized and focused on the topics.
Set reasonable deadlines for your projects. If you don’t actually need something by tomorrow, don’t make your legal team jump through hoops to have it done by then. Good business lawyers understand there will always be issues that require immediate attention and are prepared to appropriately handle those matters. However, allowing the members of your legal team to plan their lives in advance will result in legal services being rendered more economically and effectively.
Use your lawyer's network.
If you think of us as part of your team, it will be natural for you to seek out different ways we can contribute to your company beyond merely providing legal advice. Good business lawyers will have a network of contacts in accounting, banking, finance and insurance that you can easily tap into to meet your business needs. In addition, a good business lawyer will likely have a vast network that goes well beyond the traditional areas that might immediately come to mind. In this economy, your lawyer will certainly have run into out-of-work COOs, CFOs, marketing VPs, and other executives to help fill your management team or work as consultants. In addition to accountants, bankers, insurance folks and finance professionals, your lawyer may know business plan consultants, executive coaches, export control specialists, commercial real estate brokers, office furniture providers, PR people, and a whole host of other service providers. In this type of referral situation, you are likely to get good service as the service provider recommended by your lawyer will want to ensure that you are a satisfied customer so that your lawyer will keep the referrals flowing.
Discuss financial parameters in advance.
Make sure you understand how your legal services will be billed. Although most legal services are billed by the hour, some lawyers bill by the project, some utilize contingency fees and others find more creative ways. Inform your legal team of your cost expectations. If you are unsure what to expect, ask them for an estimate of the cost and get assurances that you will be consulted well in advance if the project looks like it will exceed that estimate. In addition, ask who in the firm will be working on particular projects -- for a simple incorporation, you should not need to pay the most senior lawyer’s rates.
Give feedback.
It is always hard giving someone negative feedback, but honest feedback is essential to maintaining a productive lawyer-client relationship. I wake everyday knowing I am not perfect and I appreciate those who are willing to give constructive criticism. I enjoy my relationships with my clients and would be truly disheartened if one of them chose a different source for their legal services over something I could have easily remedied.
If there is a lawyer, paralegal or staff member at the firm whose work or conduct you are not happy with, let your lawyer know. If your phone calls are not getting returned as quickly as you would like, make the offender aware that you are not satisfied. If you find the law firm’s invoices confusing, let your legal team know that you'd like a different format.
A good business lawyer, like a good business person, solicits feedback from his or her clients on a regular basis. If this is not the case, offer it up on your own or find a new legal team. You are the consumer, it is a competitive market and there are a lot of qualified lawyers available to serve. Most legal teams view keeping existing clients satisfied as being the best form of marketing. Take advantage of this fact and let your concerns be heard.
I hope the above provides you with confirmation of, along with some additional insight into, how effective a good relationship with your legal team can be. I encourage you to me to discuss any of the issues raised in this memo or to talk about your specific legal needs.
Take care,
Kris Krentz |
