Passion, People and Principles

Suspension of Blog

david@davidmaister.com (David (Maister)) — Fri, 13 Jun 2008 06:00:00 -0500

I’m going to stop blogging for a while – at least taking the summer off.

If you’d like to be notified if and when I return to regular blogging, just add your name to my email list (www.davidmaister.com/subscriptions ) and I’ll send you an email.

I’m going to continue adding podcasts to the series based on my latest book. These will continue, every two weeks, (as in the past) until I have covered all the chapters in the book. If you want to catch up with past podcasts in this or my previous podcast series, go to www.davidmaister.com/podcasts .

Until the blog re-activates, there will not be the opportunity to add comments to previous blog topics. (This will save me the bother and cost of having to monitor the blog for spam.) However, past blog discussions will remain available for reading.

Thanks for your reading loyalty!

Being a Happy and Successful Lawyer

david@davidmaister.com (David (Maister)) — Wed, 11 Jun 2008 10:40:00 -0500

Stephen C. Ellis is the managing partner at the law firm of Tucker, Ellis & West.

What follows is the commencement address he gave at Case Western reserve School of Law in Cleveland, Ohio on May 19, 2008.

The title of his remarks is "On Being a Happy(and Successful) Lawyer"

***

Thank you Dean Simson. Even after that gracious introduction, I can guess what most of you are thinking. Who is this guy?

The most informative parts of my background are not in my public bio, so let me tell you a little more to help set the stage for what I’ll be talking about. First, I am a lifetime Cleveland resident. I am married to my high school sweetheart of 40 years ago, and in 1972, I graduated from this great law school.

Other than talking my wife into marrying me and our terrific sons and grandchildren, attending this school is hands down the most important event of my life. My three years here changed everything for me. The sort of squared away corporate type you see standing here this afternoon bears no resemblance to the bell bottomed, lamb chop side-burned college kid of 40 years ago. I look at photos of me and my friend back then and it looks like we were transported here from a strange place very far away.

Before showing up here in the fall of 1969, I was the fun guy your parents wanted you to stay away from. In fact I essentially majored in fun at Denison University, and with graduation looming I was looking for something to do besides start working. A bright enough student bored by academics, I took the LSAT’s on a flyer, slightly hung over (to my earlier point), and did great, good enough to get me on the waiting list at Case. Back then, when Case was just starting to become a highly respected school, the waiting list was pretty short and didn’t take long to clear, so I got in.

By the third week I was totally hooked. I loved law school and the idea that I would know the rules of how society worked — like someone gave me the back of the Scrabble box. I did very well at our school and for the first time, started to think of myself as someone who could actually accomplish things.

In the summer of ’71 I took a job as a summer clerk at what was Arter & Hadden, a 70 lawyer Cleveland firm. Starting as a trial lawyer. I went on to be a transactional M&A/finance type and was able to build a successful, really fun practice. At the too early age of 43 I became managing partner, and ran the place for ten years as it grew to a nearly 500 lawyer firm. In 2000 a friend and colleague took over as managing partner and three years later in 2003, that nearly 160-year-old firm, and my only job for 30 years, collapsed.

Now if it’s true that we only learn from our mistakes, with all the degrees that surround me, I am without a doubt the best educated person in the room. But this story has an unbelievably happy ending, because the Cleveland office of Arter & Hadden didn’t scatter and collapse into finger pointing lawsuits like virtually every other failed firm. Our lawyers turned down all sorts of great offers to jump ship. We put our money up, signed personally for the bank loan to get started, and chose to stay together as a team. All but perhaps 5 or 6 of our partners, associates and staff, maybe 200 people, threw their lots in together, and we formed Tucker Ellis & West, which is a truly great place to practice.

So, it’s been 36 years since I was sitting where you are, waiting for someone like me to finish, and I still love being a lawyer. Every day brings new issues to wrestle, I spend my time with bright, completely engaged people, and all of my clients are people I’m proud to call my friends. I find myself very close to my lifelong goal of not spending one second doing things I don’t want to do or being with people I don’t want to be with.

I tell you all of this not to brag - well at least that’s not the only reason - but because our new firm rose out of some hard simple truths about what’s good and not so good about being a lawyer today.

The fact is our profession has become increasingly unhappy over the past couple of decades. I am convinced the vast majority of that unhappiness derives from a singleseemingly innocuous event in the late 1980’s: The American Lawyer magazine began publishing the AM LAW 100, and listed the profits per partner of the 100 largest firms. Virtually all of the firms in this country immediately bought in to that statistic as the only credible measure of success. The game was on - we lawyers would now take our measure almost entirely from money, at least in terms of what was publicly discussed. Without question, integrity, service and professionalism were important, but how we measured ourselves was money

This was a terrible mistake and now, more and more of us see its dark implications: the bragging rights on how many billable hours we charge (and the matching lost weekends and evenings); rates that are topping $1000 an hour; and clients who believe their files are being worked to death by armies of inexperienced associates. All of this so the largest firms can bump their statistical rankings and everybody else can compare themselves to the published stars.

But the worst of all this is: that we’ve chosen simply money, as our measure of success. It’s too simple to say, “Money is the root of all evil” because it’s not. And I know that the absence of money is a pretty good predicator of unhappiness. But money, just money all by itself, does not provide a sense of worth or accomplishment, or even peace of mind. The fact is, it’s in our DNA to always want a little more, and getting more only feeds the need to get a little more.

Here’s the formula on personal budgets that if you don’t already know, you soon will. I know all of your parents know this. And you should write this formula down because it’s as immutable as a law of physics. Your monthly expenses always equal your monthly income plus $300. No matter what, we’re all looking for “just a little more”.

Now we’re going to do a ten second experiment. Take a moment and reflect on the occasions when you felt truly happy - and please don’t name ‘listening to this talk”. [8 seconds of silence]

I submit that not one of you is thinking about money or material things. Our best times are always with people we care about, doing things that bring us closer together. But knowing that, we let ourselves climb on this treadmill, running harder and harder, like that donkey trying to catch the carrot on a stick.

I believe this is beginning to change, at least in the arena where lawyers have to keep increasing the hours they devote to work. Hours are being recognized as an irrational measure of value. Nobody calls a lawyer asking them to please spend twenty hours on a project. Clients want to pay us for what we do, not how long it takes us to do it.

In fact, a growing minority of lawyers and clients are starting to move away from hours as the basis for fees. The feature of Tucker Ellis & West about which I am most proud is that we have no billable hour requirement. We value our people for what they accomplish. And that decision has been hugely liberating for us.

I submit there’s much more to being a satisfied lawyer than making a lot of money. Back when I was running Arter & Hadden I would speak to our incoming class of associates and suggest that if their career goal as lawyers was to get rich, they should seriously consider a career change. My point was that most law practices by their nature are designed to produce a comfortable living, not make us rich. We don’t take big financial risks, we don’t make critical business decisions, we are fundamentally well educated consultants.

If you’ve decided to become a lawyer solely to make money if to you it’s simply a job I fear you’ll hate it. As a career and a calling it’s great, and unbelievably interesting, but as simply a job, it’s way too hard and stressful. It’s the people, the pace and the endless puzzles of the law that make being a lawyer fulfilling. If you want tons of money for working twenty hours a day and nausea-inducing stress, Wall Street investment banking may be just the thing . In that business the grand old men are burnt out at 45.

Over the past few years I’ve come to some conclusions on finding guideposts that will give us lawyers the best chance of being successful, in the sense of truly enjoying our lives and careers as lawyers. They are simple, some might say “trite”. But 36 years of listening to happy and desperately unhappy lawyers and watching colleagues succeed as lawyers and people, and some fail, I know that these may be cliché’s, but I also know they are true.

I’m going to talk about a handful of these “truisms”, only a couple of which I’ve made up, on being a successful lawyer in the sense of being fulfilled. Just so you know how close I am to wrapping up, there are nine of these, and they’re pretty short.

First, be someone others count on. Most folks talk a good game; very few come through. Clients come to you because they have a situation they cannot solve on their own. Most are not looking for an analysis of the law. Most want you to solve a problem. So solve it, don’t add to their problem by being hard to find, by missing deadlines, or by simply describing their problem back to them. It’s like going to the dentist when you have a toothache. You want it fixed and you want it fixed now. That’s what a client wants every time they talk to you. Walk in with a problem, walk out with a solution.

What they want is someone they can count on to make their lives simpler, to accomplish what they want accomplished. If you can simply do that, you’ll be sought out as an extraordinarily effective lawyer. And there is a real difference in your sense of self between being simply a resource; somebody who knows the law, and the person that people count on to solve their problems.

Second - be an interesting person, for your own good and so that clients think of you as more than a lawyer. A decent definition of hell is a dinner party companion who is a first year lawyer on the day after his or her first trial. Law stuff is interesting mostly to lawyers. In fact, it’s real interesting to lawyers, so that’s what we talk about all the time, just like you talk about law school all the time.

Force yourself to do be able to talk about more than law - read books, go to movies, be part of politics, go to lectures. You’ll meet people, you’ll be able to talk about things that other people find interesting, and you won’t burn out on your job.

The horror stories you hear about associates working 2500 hours a year? You will be surprised when you see how much of that is self imposed. These young lawyers get caught up in the chase and find that what they’re doing more interesting than anything else- so they become that boring self absorbed dining companion. The world’s full of great people with jobs and hobbies that are just as demanding and just as fascinating as yours, (assuming you make yourself get a hobby). Learn about them. You’ll be happier and much more fun to be with.

Here is another obvious but ignored truth. Look out for yourself. Nobody cares about you like you do except maybe your parents, and you won’t be working for them. My late and very wise father used to tell me to not worry about what people were thinking about me, because they weren’t. They were thinking about themselves.

Your employer may have a mentoring program, but nobody is mentored into a success. Mentors are important, but they are only a resource. Accept that you are in charge of your success.

So if you think you need experience in an area, make it your business to go get it. Ask somebody; don’t wait for it to come along. Don’t wait for somebody to notice that you’re missing an important skill. Ask for a promotion - people aren’t watching what you do as carefully as you think or hope.

Also, determination matters. It matters more than intellect. The streets are littered with directionless geniuses with unexecuted good ideas. . Woody Allen had it pretty dead on when be said that 90% of success is simply showing up. You won’t suddenly have a great career. Nobody ever does. The secret is simple- great careers are the result of day after day deciding to do good work and being someone who others count on.

Be enthusiastic. Because we deal in rules, it’s real easy to fall into cataloging all the reasons something won’t work or why somebody shouldn’t do something. In fact, we lawyers take pride in being the first one to find fault with an idea. Makes us look smart. In my days as managing partner I would roll out a strategic initiative, and I could see my partner’s eyes starting to spin. Who would get the prize for being the first one to spot the flaw?

Clients want to do things - they don’t call you so they can not do things. They want to stay in the borders of the law, but they want to be told how to do what they want to do. And they want to know that you’re happy to be part of what they’re doing. There is no better way to end a client meeting than saying “This is going to be great” and to mean it. It’s fun to be charged up - to add energy to every conversation.

Trust yourself. You are a very bright person or you wouldn’t be here today. I think among the most important conclusions I came to as a young lawyer was that if I didn’t understand something, it was because the thing in fact didn’t make sense, not because I was stupid. Most of the times I’ve found myself in hot water it’s because I let a conversation continue past the point where I understood what was being said. And virtually every time I would say “stop, I’m not following this,” someone would come up to me after the meeting and say “Boy I’m glad you said that. I had no idea what we were talking about.”

Get involved. Organize the reunion or the bicycle race. Chair the church committee. Help people who have not enjoyed your good fortune. You have spent three years learning how to organize your thoughts, analyze a situation, and articulate action plans. Use those skills everywhere in your life. Stuff will get done, people will appreciate your initiative, and you will derive great satisfaction from making things better.

Here are my final two unappreciated but clearly true truths: The toughest lawyer is not the one who is the most obnoxious. Clients will say they want a tough son of a gun to make somebody life’s miserable, a real bulldog, etc.

Don’t be that person. It’s been my 100% uniform experience that the bulldog only adds time, expense, stress and confusion to an otherwise inevitable result. Even clients can’t stand them after a couple of months. You want to be tough? Have the best preparation on the facts, the law and the strategy. Judges care only about those things, not a whit for bluster. Bullies are jerks, they wreck the profession for everyone, and you can beat them every time.

And finally and hands down most importantly, and please pass this on to your friends and your children, because it’s really important — Be nice and have fun. Just doing that makes life better for everybody, mostly you.

And now really finally, and this is not a truth, but what I think you should do - thank the people who have helped you get to where you are today, and fully enjoy this moment - you have earned it.

I am honored to have this opportunity today and I wish all of you good fortune, and fun, in this great profession. To each of you, “This is going to be great.”

Strategy and The Fat Smoker - New podcast episode available now

david@davidmaister.com (StressLimitAdmin) — Wed, 04 Jun 2008 07:00:00 -0500

NOTES FOR THE EPISODE:
00:36 - Introduction
01:31 - A brief professional history
02:45 – Essential hiring practices
06:40 - The importance of clarity in employee training
09:00 - Structuring monthly meetings with the team
11:25 – Dealing with underperformers
13:45 – What are the lessons?

You can download A Natural Manager or sign up to receive new Business Masterclass seminars automatically with iTunes or other podcast players. (Click here for step-by-step instructions on how to subscribe.) My seminars are always available for download at no cost.

Escape from Corporate America

david@davidmaister.com (David (Maister)) — Thu, 22 May 2008 06:00:00 -0500

Pamela Skillings has written a fun AND serious book called “ESCAPE from CORPORATE AMERICA: a practical guide to Creating the Career of Your Dreams.”

Here are some of the lists from the book:

The Benefits Of Corporate Jobs

Steady paycheck.
Benefits.
Paid vacation days.
Prestige.
Free office supplies. .
Résumé building.
Mom’s approval.
Structured career path.
Friendships forged in shared misery.

The Drawbacks Of Corporate Jobs

Excessive workloads.
Tedious work
Grueling commutes.
Endless meetings.
Cubicles.
Fluorescent lighting.
Open bar at the holiday party
Sense of worthlessness.
Bad coffee.
Neckties and panty hose.
Mean and/or idiotic bosses.

The Phases of Corporate Disillusionment

Phase 1: Typical Honeymoon Phase Behavior

Phase 2. Denial: “My Job Is Great, I Tell You, Just Great.”

Phase 3. Bitching: “This Job Sucks.”

Phase 4. Bargaining: “I Can Make It Work Somehow.”

Phase 5. Depression: “What’s the Point? There’s No Way Out.”

Phase 6. Acceptance or Change: “I Guess Things Could Be Worse” or “It’s Time to Make a Change.”

The most common reasons behind dissatisfaction with cubicle life.

Corporate Burnout
Terminal Boredom
Square Peg Syndrome
Balance Disorder
Meaning Deficiency
Toxic Workplace Blues
Exploring Escape Routes

Seven alternatives to your current corporate rut.

Corporate Jobs That Don’t Suck
Take a Break
Swim in a Smaller Pond
Go Solo
Build A Business
Follow Your Creative Dreams
Make A Difference

This summary may make the book sound flip, but it’s not. It’s a thorough and helpful examination of a serious subject.

Strategy and The Fat Smoker - New podcast episode available now

david@davidmaister.com (StressLimitAdmin) — Wed, 21 May 2008 07:00:00 -0500

The eleventh episode of my new podcast series, Strategy and the Fat Smoker, is now live and available for download.

The series is dedicated to exploring the themes found in my new book by the same name. Each chapter will be accompanied by an executive summary ebook covering the same material. I encourage you to forward these to friends and associates who may be interested in the topics covered. If you are already a subscriber to my podcast feed, this pdf will be available in your itunes.

The eleventh episode, A Great Coach in Action, tells and examines a story of exemplary coaching skills. Often, managers are content to rely on performance appraisals, cold criticism, and appeals to another's sense of personal responsibility towards the organization in order to effect positive change in a persons performance. These approaches seldom work, as we've seen in previous episodes. In this episode we will describe an approach that does work: ensuring that those in managerial roles have the attitudes, skills, and behaviors of a skilled coach.

NOTES FOR THE EPISODE:
00:37 – Introduction
01:13 – An example of a great coach in action
05:29 – The lessons
22:26 – Last thoughts

You can download A Great Coach in Action or sign up to receive new Business Masterclass seminars automatically with iTunes or other podcast players. (Click here for step-by-step instructions on how to subscribe.) My seminars are always available for download at no cost.

Clients as friends as Clients

david@davidmaister.com (David (Maister)) — Wed, 14 May 2008 09:38:00 -0500

Daniel F. Hunter, Special Counsel at Schulte Roth & Zabel LLP in New York has posed the following questions:

1) Should friends become clients? I am often afraid to ask friends for legal work because it might "taint" our friendship and make me feel like a service provider any time I go over to their house and see their kids, etc.

2) Should clients become friends? When this happens I feel I am less able to give objective advice and I sense that the clients feel like they can ask me legal questions at any time of day or night. For example, if we play squash all they want is free legal advice on the squash courts. Very frustrating.

***

I would vote 'no" for both cases. For me, there's all the difference between knowing how to be friendly with clients and actually being friends who socialize regularly.

But others, I think, might vote differently.

What do the rest of you lawyers, consultants, accountants, financial planners and other advisors out there think?

Strategy and The Fat Smoker - New podcast episode available now

david@davidmaister.com (StressLimitAdmin) — Wed, 07 May 2008 07:00:00 -0500

The tenth episode of my new podcast series, Strategy and the Fat Smoker, is now live and available for download.

The series is dedicated to exploring the themes found in my new book by the same name. Each chapter will be accompanied by an executive summary ebook covering the same material. I encourage you to forward these to friends and associates who may be interested in the topics covered. If you are already a subscriber to my podcast feed, this pdf will be available in your itunes.

This tenth episode, Why Most Training is Useless, deals with the reliance many companies and firms place on training as a surrogate for the hard work of true skill development. Training is a wonderful last step in a change process, but a pathetically useless first step. I examine the numerous other essential steps in that process.

NOTES FOR THE EPISODE:
00:35 – Introduction
00:42 – Training is no quick-fix
02:08 – Choosing managers and implementing training
04:31 – The keynote speech
10:04 – The hard business of making change
14:46 – The correct approach to training
19:42 – Summary

You can download Why Most Training is Useless or sign up to receive new Business Masterclass seminars automatically with iTunes or other podcast players. (Click here for step-by-step instructions on how to subscribe.) My seminars are always available for download at no cost.

Blogging

david@davidmaister.com (David (Maister)) — Fri, 02 May 2008 06:00:00 -0500

Linas Simonis has just published an e-book called "The New Rules of Business Blogs." You can find it on www.positioningstrategy.com

The indecisive employee

david@davidmaister.com (David (Maister)) — Wed, 30 Apr 2008 06:00:00 -0500

A reader from Russia wrote in with this:

After reading Strategy and the Fat Smoker, I made a research in our company to find out the types of people who work with me. It was very positive because I found out that we have:

75% of employees with long term and team motivation
15% - wolf pack
5% - individualist
5% - spider

It was funny that after this research two managers-individualists left the service at once and other employees were very happy about it.

I have one question to you: how can we determine the type of person if he can’t clearly answer the questions about his motivation, for example:

1. He wants to be motivated 50% by team result and 50% by individual result

2. He wants to invest time to have long term result but don’t want to lose money in short term period

***

I'd suggest taking him out to dinner and pointing out that he cannot get what he wants in life if he doesn't make choices! If he continues to go back and forward, I'd point out that he won't be comfortable with with the rerst of the team, and they won't be comfortable with him. It might be time to move on.

What do the rest of you think? Would you be more "accomodating"? Does everyone have to be oriented the same way?

Pricing Consulting Services

david@davidmaister.com (David (Maister)) — Mon, 28 Apr 2008 06:00:00 -0500

Raintoday.com has just released a new study Fees and Pricing Benchmark Report: Consulting Industry 2008. 645 respondents in the consulting industry completed the survey. Among the findings:

Firms that are well-known in their target markets receive higher fees, see their revenue grow, and earn higher profits than their lesser-known counterparts. Brand leaders were more likely to price their services at a higher level than their competitors in the market (42% of brand leaders were premium-price vs. 28% of lesser-known firms). And, they were more likely to actually get higher fees by up to 35%.

While most consulting firms (and consultants to consulting firms) criticize the use of discounting, 65% of consulting firms report that they do indeed discount their fees. Even the most profitable firms discount - 49% of firms, with 25% or more firm profit, report that they discount. The average discount level: 11.7%.

When it comes to premium-price firms and what sets them apart, it is not their size, the amount of repeat business they are able to get, or the region of the country in which they are located. As a matter of fact, none of these had an effect on a firm’s ability to charge premium fees. The factors that matter most to premium price firms are how valuable their work will be to the client upon completion, and whether or not the firm can deliver superior results versus the other providers – 36% find this “extremely important”

Verbatim Comments From Respondents:

Pricing Strategies:

“We do not compete on price. Ever. If we can't compete on value, ability, talent, and, frankly, if we can't create a better value proposition for the client, we don't want their business anyway.”

“We are aware of the potential need to reduce cost to gain access but also believe that the selling process should effectively focus on value and reference capability to deliver.”

Introductory Service Pricing:

“We've found that the first project creates pricing expectations for future projects, and that the work is valued more when it is priced at full rate.”

“The introductory pricing strategy is not necessarily a lower price, but a smaller or pilot project which makes it easier for the client to accept without prior experience with our work.”

Why Do Use Value-Based Pricing? Respondents Say:

“Our work, approach and value delivered are unique enough that value-based pricing is the ONLY way in which we are compensated fairly. A time-based approach simply makes no sense for us - one intervention/coaching session often causes a change in direction that's worth millions of dollars to the client–how many hours of our billing would that be worth?”

“Part of our approach is to address the business's issues and value of any potential solution to the bottom line of the business or business unit. Our pricing is provided in relation to the benefit. We also use this approach to minimize work in low value areas of the business/org.”

“Provides income far beyond hourly billing availability.”

Standard and Realized Fees:

“Our pricing model almost always ensures that the standard hourly rates are realized, hence the zero difference in the numbers above. Sometimes we will cash in a little more on the senior levels, and provide juniors cheaper, but on average we end on the standard rates (which are not public).”

“Difference between published and realized rates is due to discounting to get the business and/or project taking more hours than estimated to complete. Often this is due to client being unable to supply content or time when needed.”

“I do not even keep track of time, nor is time a factor in establishing value to the client. I simply don't think this way. Managing capacity is about being extremely effective, not about focusing on time.”

Service Guarantees:

“It is a great source of competitive advantage. We offer to solve a specific business problem with a specific technical solution at a specific time and price (price includes expense and travel). No excuses, just deliver. Using this philosophy, we are slowly taking work away from competitors who don't know we exist. We are also charging 2 to 3x more for projects than competitors are bidding on an hourly basis.”

“We find that our consultants rise to the expectations, so the service guarantee has not cost us much but has led to a higher level of personal dedication to meeting client expectations.”

A Entrepreneur's Lessons

david@davidmaister.com (David (Maister)) — Fri, 25 Apr 2008 08:40:00 -0500

GL HOFFMAN, Chairman, JobDig, and Linkup has created a free eboook about the 100 "learnings" he has experienced after 25 years in starting companies.

Strategy and The Fat Smoker - New podcast episode available now

david@davidmaister.com (StressLimitAdmin) — Wed, 23 Apr 2008 07:00:00 -0500

The ninth episode of my new podcast series, Strategy and the Fat Smoker, is now live and available for download.

It is dedicated to exploring the themes found in my new book by the same name. Each chapter will be accompanied by an executive summary ebook covering the same material. I encourage you to forward these to friends and associates who may be interested in the topics covered. If you are already a subscriber to my podcast feed, this pdf will be available in your itunes.

With Tyrants, Energizers and Cynics, we begin to look into problems in management and managerial cultures. Three leadership styles are examined, and the reasons why each is used are explored.

NOTES FOR THE EPISODE:
00:33 – Introduction
00:44 – The evolution of short sightedness
01:40 – Tyrants
05:22 – Energizers
08:39 – Cynics
13:45 – Short-term thinkers: The enabling factor

You can download Tyrants, Energizers and Cynics or sign up to receive new Business Masterclass seminars automatically with iTunes or other podcast players. (Click here for step-by-step instructions on how to subscribe.) My seminars are always available for download at no cost.

Katter's Philosophy of Doing Business

david@davidmaister.com (David (Maister)) — Mon, 21 Apr 2008 15:33:00 -0500

In correspondence with me, Wilson "Bill" Katter offered the following views, and gives permission to us all to circulate (as long as we acknowledge his authorship and copyright.)

BUSINESS DEAL BASICS

To avoid many of the problems which arise in business relationships, here is a set of prerequisite criteria with which all parties should enter the discussions/negotiations.

Much time, money and effort can often be spared with the conscientious practice of these criteria.

Without them, the negative impact of misunderstandings, aggravation and emotional wear and tear can also sometimes cause an almost incalculable loss.

The goal of a win/win result, defined as such by all parties
The skill of understanding the position of all the parties
A keen appreciation for the relative value which each party brings to the equation
The use of reliable, authoritative resources
An “I may not know it all” attitude
The willingness to have “facts” challenged
Finely tuned listening skills
Consideration of all points of view
Impeccable integrity
Transparency and honesty
Keen analytical faculties and good judgment
A mature sense of fairness
Compliance with high legal, ethical and moral standards
Clarity of both oral and written communication
Timely replies/responses in the exchange of information
The ability to “disagree agreeably”
Humble acceptance of the required modification of one’s position
Patience to do it right the first time so it doesn’t have to be done over
Equitable compromise without the sacrifice of principles
A long-term perspective which looks beyond the near-term benefits
Respect, respect, respect

REMEMBER, IMPROPER MOTIVES WILL MOST LIKELY KILL THE DEAL

ALTHOUGH CHALLENGING AND SOMETIMES TOUGH, DOING BUSINESS THIS WAY CAN HAVE THE GREATEST REWARDS

Web 2.0 and law firms

david@davidmaister.com (David (Maister)) — Fri, 18 Apr 2008 06:00:00 -0500

A question from a reader:

Though plenty of examples of “Enterprise 2.0” show tangible ways that social media can improve business, I have not been able to find many examples of law firms taking advantage of Web 2.0 technologies. In the UK at least, it seems that although some niche blawgs are very popular and have done quite well in establishing the author(s) as authorities in their respective fields, law firms as organizations have yet to take advantage of new platforms in substantive ways (as have eg investment banks with internal use of wikis/social networking).

Am I right in thinking that this is pioneer territory for law firms? If not, could you please point me to some good examples of firms that use social media – internally or externally – to improve productivity/efficiency/client services (ie beyond business development/HR/recruitment functions)?

Client Responsiveness and Compromised Quality

david@davidmaister.com (David (Maister)) — Wed, 16 Apr 2008 06:00:00 -0500

A question from Joseph A. Heyison of the Legal Department at Daiwa Securities America Inc.

“David, a thought sparked by April 11's WSJ front page, describing Moody's alleged move to client-friendliness and possible debasing of its ratings process.

“This is a repetitive theme in professional services: the most rigorous firm builds its reputation but is considered client-unfriendly. Then a new management enters, vowing to be more responsive to customers, and the partners learn that yes, their incomes rise and they get better client relationships by bending a little. Then a lot. Examples: Arthur Andersen, KPMG (tax shelters), various law firms, lobbyists (Cassidy & Co.), etc.

“Question One: How do we differentiate client responsiveness from compromising the quality of our work, and what other than moral suasion works? (Tyrannical regulators? In theory, an internal incentive process would be best, but I've never seen it done workably. Despite your advice, I think that firm culture in most cases is simply too weak to rely on.)

“Question Two: How does this affect the economic "gatekeeper" theory? (Firms maintain standards to establish a brand which effectively vouches for the client and thus have sufficient economic incentives to police fee-earners against dropping standards for short-term gain). Is that realistic in an environment where fee-earners are mobile and short-term oriented? Or is the only way to maintain gatekeeper standards the threat of regulatory and criminal action, or ruinous civil lawsuits?”

***

What think you all?

Satisfaction Guaranteed

david@davidmaister.com (David (Maister)) — Tue, 15 Apr 2008 11:12:00 -0500

For more than a decade, I have preached (and practiced) the policy of giving all clients an unconditional satisfaction guarantee. Most of my clients have thought the idea impractical and idealistic.

So, I was delighted to be made aware of the Valorem Law Group

who make this statement on their website:

“If you’re interested in seeing whether we are right for you and your team, try us on a matter. What separates us from our competitors is that you have our value promise on every invoice. If you don’t think we’re worth the amount you agreed to pay, you make whatever adjustment you think is necessary. If your other firms don’t walk that walk, it’s time to try Valorem.”

(Thanks to Gerry Riskin for drawing my attention to this firm)

Collaboration Tools and Technologies

david@davidmaister.com (David (Maister)) — Mon, 14 Apr 2008 06:00:00 -0500

The Law Practice Management Section of the American Bar Association has just published a book entitled “The Lawyers guide to Collaboration Tools and Technologies: Smart Ways to Work Together” It was written by Dennis Kennedy and Tom Mighell

Here’s a list of the Chapter headings:

Getting Started
Collaboration at the Crossroads
Collaboration Inside the Office
Collaboration Outside the Office
First Steps
Benefits of Improving Document Collaboration
Basic Collaboration on Documents
Creating a Document Online
Working Simultaneously on a Document
Hidden Dangers, Security and Metadata
Benefits of Collaboration in Lawsuits and Transactions
Instant Collaboration – from Conference Calls to Instant Messaging
How to Hold a Meeting on the Internet
Simple Project Management: Basecamp
Setting up a Simple Extranet or Deal Room
Email as a Platform
Sharepoint
Extranets and Intranets
Adobe Acrobat
Wikis: Web Collaboration
Other Web 2.0 Tools
Specialized, High-End and Alternative Collaboration Platforms
Must-Have Features for Your Collaboration Tools
Collaboration Tools: Free vs. Pay
Involving Clients in Your Decisions and Choices
Determining Which Factors will drive your Strategic planning
Getting the Word Out to Your Collaborators
Ethics, Metadata and Other Practical Issues
Ownership, Control and Other Legal Issues
Potential Pitfalls: Where to be Wary
Implementing Collaboration Tools
Recommended Choices from Solos to Large Firms
Creating a Culture of Collaboration
The Future of Collaboration in the Practice of Law

All this in 250 pages plus some appendices!

Kathy wins Webby Award

david@davidmaister.com (David (Maister)) — Wed, 09 Apr 2008 13:00:00 -0500

I just had to share this with you all.

The announcements for the 2008 Webby Awards, hailed as "the Oscars of the internet" by the NY Times, happened yesterday, and my wife’s venture (www.startcooking.com ) was named a 2008 Official Honoree placing it among the highest honored content on the internet.

The Webby Awards

is the leading international award honoring excellence on the Internet, including Websites, Interactive Advertising, Online Film & Video, and Mobile Websites. The awards are judged by the International Academy of Digital Arts & Sciences, a global organization that includes David Bowie, Harvey Weinstein, Arianna Huffington, AKQA Global Creative Director Rei Inamoto, Matt Groening, Jamie Oliver, Internet inventor Vinton Cerf, and RealNetworks CEO Rob Glaser.

"The Webby Awards honors the outstanding work that is setting the standards for the Internet," said David-Michel Davies, executive director of The Webby Awards. "StartCooking.com’s Official Honoree selection is a testament to the skill, ingenuity, and vision of its creators."

The 12th Annual Webby Awards received nearly 10,000 entries from over 60 countries and all 50 states. Out more than 10,000 entries submitted, fewer than 15% received this honor and were deemed Official Honorees.

StartCooking.com is the realization of the dream of my wife (Kathy Maister) to find a new way of getting people who are eating packaged and fast food back into their kitchens. As a former home economics teacher, Kathy realized that Internet tools could help her reach out in a fresh new way to people who wanted learn how to cook. So, she rolled up her sleeves and tackled the world of blogs and online video as a 50-something woman web entrepreneur, and startcooking.com was born.

Strategy and The Fat Smoker - New podcast episode available now

david@davidmaister.com (StressLimitAdmin) — Wed, 09 Apr 2008 07:00:00 -0500

The eight episode of my new podcast series, Strategy and the Fat Smoker, is now live and available for download.

It is dedicated to exploring the themes found in my new book by the same name. Each chapter will be accompanied by an executive summary ebook covering the same material. I encourage you to forward these to friends and associates who may be interested in the topics covered. If you are already a subscriber to my podcast feed, this pdf will be available in your itunes.

"Doing it for the Money", the eighth episode in the series, talks about the basis for any successful marketing effort: The ability of the provider to convince the buyer that they are truly interested in them and that they are genuinely trying to help. This is no simple task and there are certainly no quick fixes for it. How is it then, that this is so rarely a topic in any firms marketing discussions? This episode looks into how firms can build firm-wide enthusiasm for involvement in business development.

NOTES FOR THE EPISODE:
00:39 – Introduction
01:40 - No quick fixes
06:34 – What’s wrong with “do it for the money”?
09:50 – Promoting enthusiastic involvement in business development
14:02 - Transactions vs. relationships in culture and rewards systems

You can download Doing It for the Money or sign up to receive new Business Masterclass seminars automatically with iTunes or other podcast players. (Click here for step-by-step instructions on how to subscribe.) My seminars are always available for download at no cost.

Ending the relationship

david@davidmaister.com (David (Maister)) — Tue, 08 Apr 2008 10:03:00 -0500

A reader asks:

“I think it's time to leave my job (where I have been for a number of years) and move on. I don't have anything lined up; I'm just burned out.

“Do you have an (unconventional) advice for how to leave on "good" terms? I want to make this as positive of a resignation as possible. The firm tends to take these things personally.”

***

I’m not sure whether my advice is unconventional or not, but I’d try to draw on what we know from relationships in the non-work environment. If you wanted to withdraw from a personal relationship (a marriage?) that you had been in for many years, how would you do THAT?

Here are a few of the rules I’d try to apply:

Don’t use your announcement as a basis for bargaining. Once you’ve told the others, don’t go back. (But be prepared for vigorous attempts to get you to stay) Make it a clean break. Set a specific date for your last day.
If you don’t want it to come across as personal, rehearse your exact words so that you remove any personal references from them (“It isn’t you, it’s me”)
There’s no point trying to re-interpret history. Refuse to get drawn into a discussion of the past, and who could have done what (and to whom) differently. It’s about your individual future not your mutual past.
Be prepared to apologize – a LOT. No matter how you look at it, you will be letting them down and causing substantive problems for them. There’s no avoiding that. Don’t try to minimize the real and emotional hurt you will cause.
Do everything you can to help them find your replacement.

***

What do the rest of you think? How do you end a relationship ?

eplace this text with your post.

Do You Kindle?

david@davidmaister.com (David (Maister)) — Mon, 07 Apr 2008 12:17:00 -0500

A couple of weeks ago I received my Kindle from Amazon - an electronic book.

I love it already.

I love the fact that if I want a book, I can have it within less than a minute or two, downloaded wirelessly. No longer do I have to wait for overnight delivery.

If I'm doing some research, I can download four or five books that seem to be relevant, quickly skim them (the machine is GREAT for skimming) and then only order (if at all) the hardback or paperback that I want to have on my shelf. (My shelves are already saying Thank You)

I can set the type size to what I find easiest, rather than what the book publisher chose.

I can get on a plane or be stuck in a hotel room with a wide variety of reading matter, ready (like my iPod) to switch to something else according to mood. No more last-minute scurrying to wonder what I'm going to pack for the trip, and no more buying trash at the airport bookstall because that's all they have.

I have subscribed to the Kindle version of the New York Times and the Wall Street Journal, so I have my own copy, even if the hotel I'm stuck in on the road either doesn't stock them or has run out.

I'm hooked!

My worst habits

david@davidmaister.com (David (Maister)) — Fri, 04 Apr 2008 06:00:00 -0500

In my previous blog post, you were invited to say what the worst habits of partners in porofessional firms are.

But you know what? It's always easier, as someone very important once said, to see the speck of dust in someone else's eye than the plank in your own.

So, it may be a more meaningful (and honest) question to ask "What are YOUR worst habits?"

I'll go first. I plead guilty to

a) Procrastination (leaving everything to the last minute)

b) Failing to show as much interest in other people as I should (it's not bad intentions, just bad habits - I forget to call and check in as to how things are going)

c) Blowing hot and cold on ideas, thereby confusing people who work with me

Anyone else want to join in on this one? What bad habits do YOU have?

Bad Habits

david@davidmaister.com (David (Maister)) — Wed, 02 Apr 2008 10:24:00 -0500

One of my correspondents asked this question:

"I am looking for the top 10 bad habits partners within professional services firms display - and hopefully some answers on how to correct them"

Anybody want to propose some suggestions?

Strategy and The Fat Smoker - New podcast episode available now

david@davidmaister.com (StressLimitAdmin) — Wed, 26 Mar 2008 07:00:00 -0500

The seventh episode of my new podcast series, Strategy and the Fat Smoker, is now live and available for download.

The series is dedicated to exploring the themes found in my new book by the same name. Each chapter will be accompanied by an executive summary ebook covering the same material. I encourage you to forward these to friends and associates who may be interested in the topics covered. If you are already a subscriber to my podcast feed, this pdf will be available in your itunes.

This seventh episode, "The Friendship Strategy", looks at the parallels between building trusting relationships in business and building friendships in personal life. All too often, it seems that when people come to work, they leave behind everything they know about interacting with other humans.

We will look into the reasons why people neglect to use these lessons and what it takes to improve your personal and professional relationship-building skills.

.
NOTES FOR THE EPISODE:
00:14 – Introduction
00:43 – Understanding business relationships through personal life
02:03 – Conversation and trust
06:54 – Socializing in business relations
10:21 – How do they feel about you?
15:30 – Being supportive
18:30 – Initiate relationships

You can download The Friendship Strategy or sign up to receive new Business Masterclass seminars automatically with iTunes or other podcast players. (Click here for step-by-step instructions on how to subscribe.) My seminars are always available for download at no cost.

Merchandizing

david@davidmaister.com (David (Maister)) — Sun, 16 Mar 2008 10:10:00 -0500

I just received a complementary copy of a new book(let) by David Cottrell called "Leadership Energy (E=m x c squared)."

It's a 100-page large-type (very clever) packaging of some key management lessons, using Einstein's famous equation. In this case, the energy is the organization's output, the m is the mass of the people and the c is the leader's impact on energy.

What caught my attention was this sentence: "To help you facilitate teaching these concepts to your team, a Powerpoint slide presentation is available at www.CornerstoneLeadership.com

What you discover when you click is that the slide presentation sells for $99.95, compared to $14.95 for the booklet. And I bet it generates training and consulting opportunities.

Very clever! Are any of you merchandizing yourself (or your business) this way? What's been your experience?

I wonder what would have happened if, starting 25 years ago, I had been charging for slide presentation versions of my material?

"Give a Copy to Management" Campaign Closing

david@davidmaister.com (StressLimitAdmin) — Thu, 13 Mar 2008 12:38:00 -0500

Due to the overwhelming success of my "Give a Copy to Management" campaign, I wanted to let everyone know that I am closing the offer, and will be taking no more requests.

I received MANY more requests than the initial 100 I planned to offer, and from all corners of the globe! Since I don't want to disappoint anyone who wished to circulate my ideas in their workplace, I've made the following decision:

I will be sending out 100 books as hardbacks, as offered. Beyond that, for the many other people who have requested a book, I'm going to send a copy of Strategy and the Fat Smoker in its ebook form, totally free (I normally sell this for $11.99).

The books will all be shipping out over the next couple of weeks, and everyone that submitted will be receiving their special preview copy of the executive summary ebook.

Many thanks for your participation.

Strategy and The Fat Smoker - New podcast episode available now

david@davidmaister.com (StressLimitAdmin) — Wed, 12 Mar 2008 07:00:00 -0500

The sixth episode of my new podcast series, Strategy and the Fat Smoker, is now live and available for download.

It is dedicated to exploring the themes found in my new book by the same name. Each chapter will be accompanied by an executive summary ebook covering the same material. I encourage you to forward these to friends and associates who may be interested in the topics covered. If you are already a subscriber to my podcast feed, this pdf will be available in your itunes.

With "Do You Really Want Relationships?" we will start to look at Fat Smoker principles in the realm of client relations. Businesses regularly claim to have a strong sense of "client focus" yet more often than not their client relations plans are in actuality, only sales plans, designed to get business. We will look at ways companies can build true client relations plans and ways to build and nurture the asset that is a long-term, trust based relationship.

Timeline:
00:39 – Introduction
02:28 – The benefits of trusting relationships
07:44 – Relationship building within the firm
10:10 – Relationships vs. Transactions pt.1
14:36 – Special Announcement: The “Give A Copy To Management” Campaign.
15:06 – Relationships vs. Transactions pt.2
16:17 – Expert or Advisor: Which are you and which do you seek?
23:11 – Converting the firm

You can download Do You Really Want Relationships? or sign up to receive new Business Masterclass seminars automatically with iTunes or other podcast players. (Click here for step-by-step instructions on how to subscribe.) My seminars are always available for download at no cost.

Finland's Best Place to work

david@davidmaister.com (David (Maister)) — Mon, 10 Mar 2008 06:00:00 -0500

Hannu Terävä writes: "Our company, Reaktor Innovations, just won the Great Place to Work competition in Finland last month. It means that we are, according to this survey, the best work place in Finland. It was the first time we attended and we got the best points ever in Finland.

"What you might find interesting is that we operate very much the same way as you teach (again, based on books and the blog). If I remember correctly, "Practice What You Preach" was one of the first eye-openers for me that we might be actually doing things properly. In the book I found many things about successful companies familiar from Reaktor.

"So my point was to let you know that there's one more successful company (and happy people) in the world that is pretty much aligned with your thinking. Of course, we don't just follow your books but think ourselves what's best for the people and the company in the long run. Not forgetting the customers.

Oh yes, it's financially wise too. We have now about 90 employees and are doing excellent."

Congratulations, Hannu and Reaktor!

Recession Responses

david@davidmaister.com (David (Maister)) — Fri, 07 Mar 2008 06:00:00 -0500

So now comes the test. You're a professional firm, with a variety of pracrice areas or target industries. Due to turmoil in the markets, business is down (or is forecast to be down) in one or more of our major areas. What do you do?

Choice One: Lay off some of the junior staff, thereby cutting costs to keep them in line with declining revenues.

Choice Two: Have the partners take a "haircut" (ie reduced profitability) and continue to show loyalty to the juniors by keeping them busy with whatever work we *do* have (ie delegating as much as possible) and using the relative underutilization of partner time to free them up to go out and and work against the weak year (ie client service, marketing and selling.)

Guess which one most firms are going to do?
Guess which approach builds a more profitable firm over time?
For extra points: how much is this decision really going to be affected by firms declared programs for retaining scarce staff in the war for talent?

Get ready for a dropping of the facade of idealism and principle, and a return to the pragamatics of sustaining short-term earnings at all cost.

As always, I have to stress that this is not a moral issue but one of pragmatics. If one of your key competitive issues is attracting and retaining key staff, how can you have a policy of laying them off (or "asking them to re-apply to another part of the firm", as one firm describes it) at the first sign of trouble?

New Book from CPA Firm Consultant

david@davidmaister.com (David (Maister)) — Thu, 06 Mar 2008 06:00:00 -0500

Normally, I'm not a big fan of business books written in the form of fictional fables. But there's anew book by Gale Crosley (a consultant to CPAs) and Debbie Stover (a freelance writer) called AT THE CROSSROADS: The Remarkable CPA Firm that Nearly Crashed Then Soared.

It describes a small accounting firm with realistically-drawn issues based on all-too-human partner types. The managing partner of a friendly firm (the proxy for the consultant author) guides them through a retreat and planning process to turn the firm around.

What I like adbout the (well-written, well-paced) story is that it avoided idealism, drew attention to the tough choices that improved performance requires, and didn't pretend (too much) to have a magic formula for success.

The book probably won't appeal to big-frim types, but is relevant across a broad spectrum oof industries and professions.