Digital White Papers

ILTA WHITE PAPER: NOVEMBER 2015 WWW.ILTANET.ORG IS YOUR FIRM FAILING AT COLLECTIONS? HAVE A STRONG ONBOARDING PROCESS Newly hired partners and associates should be acculturated to the firm from day one. If you are new to the firm, you want to bring your best habits and leave the not-so-good ones behind. If clients are following you to your new firm, now is the time for you to orient the client to pay their bills on time. Leave thoughts of "this is how I did it at my former firm" at your old firm, because, while your colleagues might not tell you, they will expect you to perform on the promises made on revenue. Firms should have a strong onboarding process where new partners and associates are educated on the firm's practice of billing and collections. ALL LAWYERS SHOULD MONITOR ACCOUNTS RECEIVABLE If you are a lawyer who is soon to be a partner, get in the habit of looking at your accounts receivable at least weekly. As you work a matter, pay attention to the bills that are aging, even if it is not your client. Most partners leave the responsibility of collections to the billing partner. Since you all work together, this should be a collaborative effort. However, a billing partner should mentor young colleagues to manage the client someday. An internal collaborative team effort will bring you more success than working in isolation and obsessing about credit. PRESENT YOUR BEST FACE Don't let your staff act like a barbaric collection agency. The way you collect receivables can make or break a relationship with a client. Regardless of who is calling the client, build a close relationship from the moment you say "hello" to the point you bid farewell. It is a relationship of understanding and empathy: The client could be at an emotionally sensitive point because of the legal process and where they are on the case. Great staff can get you paid, but be sure the right staff with the right personalities call your clients. We are in an era where too many people send impertinent tweets or thoughtless SnapChat comments, and that could damage a lifetime of reputation and hard work. Bad staff will move on, but the burden of a bad collection experience is yours to bear forever. BE GRACIOUS AND HUMBLE When you receive payments, have you or your staff ever picked up the phone to say "thank you" to your client? Doing so can go a long way. The next time your bill is received, it might go in the first check run and not to the bottom of the pile. It is surprising how many lawyers don't understand how bills get paid by clients. They might think the decision to be paid is controlled entirely by their client contact or the general counsel, but, just as often, a clerk may have some latitude as to when to pay you. Once in a while (other than during end- of-the-year holidays), surprise your client accounts payable specialist, or the client's assistant, with a box of chocolates or other small gift. Even sending a simple, hand-written thank you note to your client after the conclusion of a matter will do wonders in terms of maintaining a positive relationship. Minor gestures such as these will drastically increase the odds of a client thinking of you when the next case comes along. Customer service might start with your partners, but it is affected just as much by your billing and collections efforts. Collections need a special human touch. The more you customize it to match your clients, the more successful you will be in getting paid and getting more business! It is surprising how many lawyers don't understand how bills get paid by clients. 29

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