YOUR PRACTICE MANAGEMENT CHECKLIST

As a first step to successful law practice management, you and all of the attorneys in your firm should review The Lawyer’s Code of Professional Responsibility in order to understand your obligations and review the Code on a regular basis to keep up to date with any amendments. A complete copy of the Code is available at www.nysba.org.

Below is a checklist that will help you to identify the strengths and weaknesses of your firm’s management practices. After you have done the initial review of this checklist, go through checklist again on a regular basis to make sure that your firm is implementing the practices it has created and to address those practices that it may be lacking.

CLIENT RELATIONS

Without clients, attorneys would not be in business. Therefore, it is important to establish practices that address the clients’ views as to how the law firm is handling their matters. If the law firm has staff, every staff member should be involved in providing good client service.

(1) Do we use retainer agreements or engagement letters as required by Part 1215 of the Joint Rules of the Appellate Division?
(2) During the initial client conference, do we ask the client how he/she/it wants to be kept informed and who the client’s contact person will be for the matter?
(3) Do we communicate these client preferences to all of our staff members and put a notation in/on the client’s file (i.e., this client requires written weekly updates, immediate telephone notification of all changes, and written confirmation of appointments)?
(4) Do we introduce all staff members who will be involved in the matter to the client from attorney to paralegal?
(5) Do we return client’s phone calls within 24 hours?
(6) Do we perform all the work we told the client we would?
(7) Do we complete our work on the matter in a timely fashion?
(8) Do we send follow-up written communications after a meeting or a telephone conference in which new decisions regarding the matter have been reached?
(9) Do we ask the client for feedback as the matter progresses?
(10) Do we discuss fee and disbursement estimates as well as billing procedures with the client in order to avoid surprises?
(11) Do we have a discussion with the client at the end of each matter to assess satisfaction?
(12) Do we acknowledge our staff members for exceptional client relations?
(13) Is the Client’s Bill of Rights conspicuously posted in our office?
(14) Does our firm provide our clients with notification of the availability of the fee arbitration program in the event of a fee dispute, as required in Part 137 of the Rules of the Chief Administrator?

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CONFLICTS CHECKING

The Lawyer’s Code of Professional Responsibility, Canon 5, addresses the different types of conflicts that may come up in a law practice. Most professional liability insurance carrier applications ask about a law firm’s conflicts of interest procedure. Checking for conflicts is an important aspect of successful law firm management.

(1) Do we maintain and continuously update a master client list?
(2) Do we record the names and addresses of corporate client officers and directors?
(3) Do we properly identify and record information regarding the adverse party?
(4) Before accepting a new client or matter - do we check our master list for conflicts of interest?
(5) Do we follow up on potential conflict situations?
(6) Do we properly inform the client (in writing) of any potential conflict?
(7) Do we get a signed waiver from the client if representation is requested after a potential conflict has been discussed and it is determined that we can, under the ethics rules, provide the representation?
(8) Do we have procedures in place to decline representation?

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DOCKET/CALENDAR

Malpractice prevention is an important aspect of law firm management. When a law firm has a docket/calendar system of which all staff members are aware and follow, it is less likely that appearances and deadlines will be missed.

(1) Does each staff member keep individual calendars, i.e., attorney and secretary/paralegal?
(2) Do we maintain a master firm calendar?
(3) Do we have a system for updating and maintaining each calendar in case of scheduling changes?
(4) Do our attorneys or department heads coordinate regularly to assure efficient workflow and matter assignments?
(5) Is there a designated person to coordinate entries and attorney assignments into all of the firm’s calendars?
(6) Do we use reminder slips (tickler slips) to draw the attorney’s attention to an upcoming deadline?

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FIRM RECORDS AND DOCUMENTS

Efficient records management eliminates (a) wasting time hunting for files; (b) lost documents; and (c) clutter caused by retaining files and documents long past the mandated time for maintaining them.

(1) Do we have a firm-wide standardized filing system?
(2) Are all members of the firm informed of the reasons for, and methods of, our firm’s filing procedures?
(3) Are all records and documents filed timely and regularly? If a file is removed from its regular place, do we have a notification procedure in the event that someone else is looking for that file?
(4) Do we follow a file status schedule after a case is completed, i.e., when to close, when to review for destruction, what to return to client, what to keep - and for how long? Are those time periods in compliance with The Lawyer’s Code of Professional Responsibility and IRS guidelines?
(5) Do we store current records in a secure area?
(6) Do we store closed records in an environment safe from water or other damage?
(7) Do we store our clients’ Original Last Will and Testament in fire-proof cabinets?
(8) Do we shred the records that are appropriate for destruction in order to preserve confidentiality?
(9) Do we regularly back-up our computers and/or servers? Do we have a designated person responsible for overseeing consistent back-up scheduling?
(10) Do we keep back-up media of electronic records off-site?

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STAFF RELATIONS

Your staff is integral to the health of your law firm. They should understand the firm’s goals and how to implement them.

(1) Do we have a current office policy and procedures manual? Have copies of the manual been distributed to all employees?
(2) Do we sufficiently train our employees when first hired as well as when major procedural changes occur?
(3) Do we train the employees in the ethical requirements of working in a law firm and client confidentiality?
(4) Do we clearly communicate expectations of performance to all firm employees and properly supervise employees by reviewing their work?
(5) Do we provide feedback to employees regarding their performance on a regular basis?
(6) Do we document our employees’ performance reviews and keep them in individual personnel files?
(7) Do we encourage and motivate employees to take pride and ownership in their work?
(8) Do we provide a safe office environment?
(9) Do our employees (attorneys and staff) know the types of matters our firm handles so that they may act as “marketing representatives” for our firm?

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FIRM FINANCIAL HEALTH

A) Keeping Track of Our Time

(1) Do we have documented timekeeping procedures?
(2) Do we communicate individual and firm goals to all timekeepers?
(3) Do we train all timekeepers in proper timekeeping methods?
(4) Is every staff member’s time recorded to a client’s file on a daily basis?
(5) Do we provide feedback to timekeepers regarding their timekeeping skills?

B) Billing/Invoices

(1) Are all expense disbursements posted to our clients’ accounts and billed to our clients on a regular basis?
(2) Are all internally incurred expenses (postage, long distance, etc.) posted to our clients’ accounts regularly?
(3) Are all payments and credits posted to our clients’ accounts regularly?
(4) Are all timekeeping entries reviewed for accuracy?
(5) Are final drafts of our invoices reviewed and approved by timekeeper and/or management before being sent to our clients?
(6) Are our invoices sent out on a regularly scheduled basis?
(7) Are the accounts receivable evaluated and followed up on regularly?
(8) Do our retainer agreements provide us with remedies if the client fails to pay an invoice in a timely manner?
(9) Are all write-downs and write-offs approved by management?
(10) Are client trust funds kept in an IOLA or escrow account separate from funds in the firm’s operating account?
(11) Do our retainer agreements explain to the client when retainer payments are payable to the firm?

C) Budgeting

(1) Do we have an operating budget?
(2) Do we regularly compare actual results to our budget?
(3) Do we follow up on discrepancies?

D) Financial Recording and Reporting

(1) Do we have a system of checks and balances in place for reconciling petty cash disbursements, checks written on the firms’ accounts and general office accounting?
(2) Do we generate monthly or other regularly scheduled financial reports?
(3) Do we review and evaluate these reports for their reasonableness?
(4) Do we act promptly when corrective steps are needed?
(5) Do we follow up on the results of a change in firm direction?
(6) Do we deposit payroll withholding and file our tax returns in a timely manner?
(7) Is the firm’s financial health, as well as any action to be taken with respect to the current state of financial health, articulated to everyone in the firm?

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MARKETING

(1) Do all of our attorneys and staff have business cards to give to potential clients and referral sources?
(2) Do our attorneys and staff know the types of matters our firm handles so that they may act as “marketing representatives” for our firm?
(3) Are our attorneys speaking or writing articles about legal matters that our firm handles?
(4) Are our attorneys and staff recognized for bringing new clients or client matters to the firm?

Adapted with permission from The State Bar of Texas .

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