leadership exchange - gla, alaglaala.org/clubportal/clubdocs/194/august 2004 leadership...engaged in...

In This Issue...

Leadership ExchangeLeadership ExchangeLeadership ExchangeLeadership ExchangeLeadership ExchangeLeadership ExchangeLeadership ExchangeLeadership ExchangeLeadership ExchangeLeadership ExchangeLeadership ExchangeLeadership ExchangeLeadership ExchangeLeadership ExchangeLeadership ExchangeLeadership Exchange AN EDUCATIONAL AND INFORMATIONAL RESOURCE FOR LEGAL ADMINISTRATORS AUGUST 2004 • VOLUME 2 • ISSUE 5

LA Under The Stars!LA Under The Stars!AN EDUCATIONAL AND INFORMATIONAL RESOURCE FOR LEGAL ADMINISTRATORS

LA Under The Stars!LA Under The Stars!

Leadership ExchangeLeadership ExchangeLeadership ExchangeLeadership ExchangeLeadership ExchangeAUGUST 2004 • VOLUME 2 • ISSUE 5

• HUMAN RESOURCES “DEPARTMENT OF LABOR FINALIZES RULES ON COBRA NOTICES”

• COMMUNICATIONS AND GENERAL MANAGEMENT “THE FOUR STAGES OF BURNOUT: ARE YOU SURVIVING THE BURNOUT BATTLEFRONT?”

• FINANCIAL MANAGEMENT “LAW FIRM DIVORCES DEPARTING PARTNERS - ECONOMICS & ETHICS”

• LEGAL INDUSTRY “SHOULD PUBLIC COMPANY WOES BE PRIVATE COMPANY WORRIES?”

• OFFICE OPERATIONS MANAGEMENT “THE (WAY) BACK OFFICE!”

• HUMAN RESOURCES “DEPARTMENT OF LABOR FINALIZES RULES ON COBRA NOTICES”

• COMMUNICATIONS AND GENERAL MANAGEMENT “THE FOUR STAGES OF BURNOUT: ARE YOU SURVIVING THE BURNOUT BATTLEFRONT?”

• FINANCIAL MANAGEMENT“LAW FIRM DIVORCES DEPARTING PARTNERS - ECONOMICS & ETHICS”

• LEGAL INDUSTRY“SHOULD PUBLIC COMPANY WOES BE PRIVATE COMPANY WORRIES?”

• OFFICE OPERATIONS MANAGEMENT “THE (WAY) BACK OFFICE!”

REGION 6 CONFERENCE

OCTOBER 8-9, 2004(SEE PAGES 20-21)

REGION 6 CONFERENCE

A View of LA’s Diversity - LA’s Amphitheatres - pg 5A View of LA’s Diversity - LA’s Amphitheatres - pg 5

GREATER LOS ANGELES LEADERSHIP EXCHANGE • WWW.GLAALA.ORG2 August 2004 GREATER LOS ANGELES LEADERSHIP EXCHANGE • WWW.GLAALA.ORGAugust 2004 3

��

��

��

��

��

��

��

��

��

Lisa Dady, Vice President, D

ocument Services


PAGE DIRECTORY

ON THE COVER: A View of LA’s Diversityby Steven Jones.............................................................................Front Cover, 5

PRESIDENT’S MESSAGE: All That Jazzby Luci Hamilton................................................................................................4

HUMAN RESOURCES: Department of Labor Finalizes Rules on COBRA Noticesby Elizabeth E. Vollmar ......................................................................................6

GENERAL MANAGEMENT: The Four Stages of Burnout: Are You Surviving the Burnout Battlefront?by Mark Gorkin, LICSW .....................................................................................8

FINANCIAL MANAGEMENT: Law Firm Divorces Departing Partners - Economics & Ethicsby Jan Christiensen ..........................................................................................10

TECHNOLOGY TIP: The Best of Tables (All versions of Excel)by Dodie Edelstein ...........................................................................................13

LEGAL INDUSTRY: Should Public Company Woes Be Private Company Worries?by Gregory C. Fant, Esq.................................................................................... 28

OFFICE OPERATIONS: The (Way) Back Office!by J. Mark Santiago .......................................................................................... 32

VENDOR SPOTLIGHT: Up Close and Personal with -Océ Business Services ..................................................................................... 34

THE CLIMATE WAS COOL IN ORLANDO: Reflections of My First Chapter Leadership Instituteby Wendy Sweet, CLM...................................................................................... 35

LEADERS PAST AND PRESENT: On Jan Christensen.................................. 40

GREATER LOS ANGELES LEADERSHIP EXCHANGE

The newsletter of theGreater Los Angeles Chapter

Association of Legal AdministratorsCopyright © 2004 - All rights reserved

www.glaala.org

Wendy Sweet, CLM, Managing EditorAndrews Kurth LLP

P: 213/896-3107 • F: 213/[email protected]

Steven Jones, Co-EditorLister Martin & Thompson


Janet Shaw, Newsletter TeamWickwire Gavin LLP


Michael Steiner, Vendor LiaisonFrandzel Robins Bloom & Csato, L.C.P: 323/658-9758 • F: 323/658-9658

[email protected]

Tracy Dragoo, Graphic DesignerTra-Co Graphics • P: 626/487-0784

Typecraft Wood & Jones, PrintingPasadena, CA • P: 626/795-8093

The GREATER LOS ANGELES LEADERSHIP EXCHANGE is published monthly to provide information for the education and benefit of legal administrators, law office managers, man-aging partners of law firms and corporate law departments, and others interested in law firm management. The Greater Los Angeles Chapter of the Association of Legal Administrators is not engaged in rendering legal, financial or tax coun-seling through this publication. No statement in this newsletter should be interpreted as legal, financial or tax advice.

Any article, letter or advertisement published in the GREATER LOS ANGELES LEADERSHIP EXCHANGE should not be considered an endorsement by the Greater Los Angeles Chapter of the Association of Legal Administrators of the opinions expressed therein or any product(s) advertised. Contributing authors are requested and expected to disclose financial and/or pro-fessional interests and affiliations which may influence their writing position. All advertising is subject to approval by the Editor. Advertisers assume liability for all content of advertisements printed and assume responsibility for any claims based upon subject matter.

Any comments, questions, suggestions?Please contact Wendy Sweet, CLM at

213/896-3107 or [email protected]

CCC Macro Pro ................................... 39City National Bank .............. Back CoverDavidson Legal Staffing ..................... 23DPSI - Complete Data Management .. 19ESP...The IT Candidate People .......... 31Hire Counsel ....................................... 18Hutchinson & Bloodgood .................. 42Innovative Computing Systems ........ 43Legal Option Group............................ 38Legal Pro.............................................. 39Library Services .................................. 31

Matura Farrington Staffing Services.... 12Merrill Corporation .............................. 2Narver Associates ............................... 39Océ Business Services ........................ 34Overnite Express................................. 37Providus............................................... 30Robert Half Legal ................................ 14Tra-Co Graphics.................................. 21Typecraft Wood & Jones ..................... 21WAMS .................................................. 15Worldwide Network Inc. ...................... 7

SOS (Succeed Over Stress) .............................................................................. 15Membership News .......................................................................................... 16Membership Benefits...................................................................................... 17Mini Spotlights ................................................................................................ 17Calendar of Events .......................................................................................... 22Chapter Leaders .........................................................................................24-25Continuing Community Challenge ............................................................... 27Office Leasing .................................................................................................. 31Chapter News .................................................................................................. 42

INDEX OF ADVERTISERS

IN EVERY ISSUE

ARTICLES

THANK YOU FOR YOUR SUPPORT!

mailto:[email protected]

GREATER LOS ANGELES LEADERSHIP EXCHANGE • WWW.GLAALA.ORG 4 August 2004 GREATER LOS ANGELES LEADERSHIP EXCHANGE • WWW.GLAALA.ORGAugust 2004 5 4

PRESIDENTS

MESSAGE

All that Jazz From Louis Armstrong to Shakespeare – LA Is The Place to be Under The Stars.

Luci Hamilton310-629-0206

[email protected]

Music has been the fuel that gets me up in the morn-ing and pulls me through the day. During summer-time, Los Angeles is the place to be under the stars for

good music, and Shakespeare. To me Louis Armstrong good music, and Shakespeare. To me Louis Armstrong good music, and Shakespeare. To me Louis Armstrong was the most influential musician in Jazz history. Jazz has been called the purest expression of American democracy; a music built on individualism and com-promise, independence and cooperation.

In searching the web for more music I found a website www.musicforbusiness.com. Their homepage reads

“Music is your key to enhancing the atmosphere of your business, improving the productivity of your employees, and increasing sales. Our Satellite Music Program includes over 40 programmed music channels with distinct musical styles designed to help you reflect with distinct musical styles designed to help you reflect with distinct musical styles designed to help you reflect with distinct musical styles designed to help you reflect your business’s individuality and reinforce its identity.

Our compact satellite system makes it easy to har-ness the power of music. Music your customers relate to, from Louis Armstrong to Celine Dion, Solid Gold to Solid from Louis Armstrong to Celine Dion, Solid Gold to Solid from Louis Armstrong to Celine Dion, Solid Gold to Solid from Louis Armstrong to Celine Dion, Solid Gold to Solid from Louis Armstrong to Celine Dion, Solid Gold to Solid from Louis Armstrong to Celine Dion, Solid Gold to Solid from Louis Armstrong to Celine Dion, Solid Gold to Solid from Louis Armstrong to Celine Dion, Solid Gold to Solid Soul and everything in between. Paired with customized Soul and everything in between. Paired with customized Soul and everything in between. Paired with customized Soul and everything in between. Paired with customized messages aimed at your Clientele, musicforbusiness.com becomes an effective and powerful communications tool. On-Hold, In-Store, wherever you need us, we can design a complete music marketing program to help your busi-ness grow.”

They also say:

“Music touches the soul; it influences emotions and affects body rhythms. Our music styles let you capture the power of music to meet your business goals. We have combined a variety of Music choices to help your business create a distinct atmosphere, influence perceptions, and manage the pace of your customers.”

I remember, a few years ago what a big deal it was to choose the appropriate music law firms should play while their clients were on hold. Some firms don’t even subscribe to the music “On Hold” phenomenon that other industries have adopted as their marketing strat-egy. I struggled with my managing partner to come up with a selection of good music that would actually get our clients in a more relaxed mood while they waited for their calls to be transferred. Our goal was to give them at least a few seconds of relaxation before tackling the

legal problems they were about to discuss with their favorite lawyer. In our industry, sometimes we forget when clients are calling on us, be it on the phone, or waiting in our lobby for the next round of the phone, or waiting in our lobby for the next round of depositions, that law firms are no different than doctors, dentists and accounting offices. The clients are always tense with either pain, or the state of their case, or their taxes.

I was very fond of a British client of ours that would play The Beatles exclusively for their on hold music. It never failed to give me a smile and start tapping my feet even if I was calling to collect on a past-due invoice. I remember being in a very good mood by the time I reached their accounts payable clerk, and was able to talk them into giving me a sure date for the proverbial “the check is in the mail.”

Do you want Shakespeare by the Sea? You got it!

Shakespeare by the Sea invites you to experience live theatre at its best -- under the stars. Their 2004 summer reper-tory season includesRichard III, directed by Mark Piatelli and Two Gentlemen of Verona,

directed by Doug Clayton. They are proud to present directed by Doug Clayton. They are proud to present their seventh season of admission free Shakespeare. Shakespeare by the Sea runs at Point Fermin park in San Pedro from June 17 - July 17, then goes on tour from July 18 - August 12. Grand Finale Performances are back at Point Fermin on Friday & Saturday, August 13 & 14. You can get more information at www.shakespearebythesea.org.

Nothing is as powerful as a compelling vision -- whether it’s a glimpse of the future of our industry or a better look at how we can make our workplace, our clients and our employees feel a bit more relaxed and ready to tackle the daily grind through music that trans-ports them to the sea under the stars.

Luci Hamilton

“Put the power of Music to

work for You”

the phone, or waiting in our lobby for the next round of

work for You”

good music, and Shakespeare. To me Louis Armstrong

GREATER LOS ANGELES LEADERSHIP EXCHANGE • WWW.GLAALA.ORG 4 August 2004 GREATER LOS ANGELES LEADERSHIP EXCHANGE • WWW.GLAALA.ORGAugust 2004 5

On the Cover – August 2004by Steven Jones

Starlight Bowl, Greek Theatre, Universal Amphitheatre, and the Hollywood Bowl... what do these places have in common? That’s right folks...they are Los Angeles’ signature outdoor theatres! Los Angeles and its sur-rounding area has one of the largest concentrations of outdoor concert venues in the country. Take advan-tage of our warm summer nights and enjoy a fantastic concert under the stars with your favorite band.

This summer give yourself a treat and visit one of our great outdoor concert theatres where you’ll find some down home country and western music. If that’s not your thing, sit back and relax to a soothing classi-cal series. Maybe you’d prefer closing your eyes and listening to the amazing talents of your favorite jazz musician or shaking in your seats to the Latin beats of Salsa and Meringue. And don’t stop yourself from singing completely out of tune with to your favorite Rock & Roll or R&B band. Don’t let another summer pass without enjoying LA under the stars. Check out Herman’s Hermits at the Starlight Bowl in Burbank; The Roots, Rock, Reggae Festival at the Greek Theatre; George Lopez at the Universal Amphitheatre, and The Latin Jazz Night at the Hollywood Bowl.

All this is for you to enjoy in LA Under The Stars!

L.A. UNDER THE STARSVenue Calendar

Starlight Bowl1249 Lockheed View DriveBurbank, CA (818) 525 3721www.starlightbowl.com/2004/index2004.htm

8/01 Burbank Philharmonic Orchestra8/08 The Answer/Herman’s Hermits Starring Peter Noone8/15 Captain Cardiac and the Coronaries

Greek Theatre2700 North Vermont, in Griffith ParkLos Angeles, CAwww.greektheatrela.com/index.asp

8/17 Chicago / Earth, Wind & Fire8/20 L.A. Salsa Festival 20048/25 Tony Bennett8/27 Roots, Rock, Reggae Festival

Universal Amphitheatre100 Universal City PlazaUniversal City, CAwww.hob.com/venues/concerts/universal/index.asp

8/08 Teen Choice Awards8/20 Sin Bandera8/21 World’s Greatest Singing Groups – The O’Jay’s , Temptations, The Four Tops, The Whispers

The Hollywood Bowl 2301 North Highland AvenueHollywood, CA(323) 850-2000http://www.hollywoodbowl.org/

8/11 Latin Jazz Night8/14 The Tchaikovsky Spectacular with Fireworks8/18 New Orleans Night8/20 The Great American Concert with Fireworks – Walt Disney 75 Years of Music

Editor’s Note:It’s hard to believe that the summer is going by so quickly. I started back to school in May and have personally embarked on a fast-paced journey toward finishing my Bachelor’s degree. This was a goal I set years ago and it feels great to finally be traveling down this path. Goals are something this month’s featured leader, Jan Christensen, speaks about in the Leaders Past and Present article. My new Co-Editor, Steven Jones, came up with a great idea - to feature some of our very own “present-day” leaders in this section. I appreciate Jan’s willingness to share her sage advice and experience.

I hope you find something of value within the pages of this month’s Leadership Exchange. Our Graphic Desiger, Tracy Dragoo, sure did an awesome job with the cover. Every time I look at it, it makes me crave to be sitting under the stars, sipping smooth red wine, while the musical chords of the band caress my ears. The evening would be sultry with just the slightest breeze. Hmmmm. Gonna have to book some seats. Why don’t you join me?


Department of Labor Finalizes Rules on COBRA Notices

Most employers will need to revise their COBRA notice forms and their COBRA administration proce-dures before the end of 2004 in order to comply with final regulations governing COBRA notices. The Department of Labor (DOL) issued the final regulations on May 26, 2004, and they are effective with respect to plan years beginning after November 26, 2004. This means that employers whose plans operate on a calendar year basis must comply before January 1, 2005.

This Employee Benefits Alert provides a high-level summary of the new rules and the steps that employ-ers will need to take in order to fulfill their legal obliga-tions.

Background

COBRA statutory provisions requiring continuation of health benefits after termination of employment and certain other “qualifying events” have been in effect for more than 15 years. The statutory provisions have always clearly required certain notices regarding COBRA rights, but no federal agency issued regulations about the exact content of the various required COBRA notices, or how to send those notices, until May 28, 2003. That was the date that the DOL issued proposed regulations set-ting forth the required content, recipients, timing, and method of delivery for various COBRA notices, includ-ing two new notices not mentioned in the COBRA statu-tory provisions. The proposed rules included models for the enrollment and qualifying event notices that were already required under COBRA.

Almost a year to the day after issuing those pro-posed regulations, the DOL finalized its COBRA notice regulations. Unfortunately, those final regulations fol-low the proposed regulations more closely than many had hoped. (Willis had hoped that the DOL would drop some of the more burdensome requirements in response to comments it received on the proposed regulations.) Although the DOL’s rules provide welcome clarity on employers’ notice obligations under COBRA, they also impose new notice requirements and additional admin-istrative complexity.

Overview of the New Rules

The new rules are set out in four parts as described on the following pages.

I. General (initial) notice of COBRA rights (§ 2590.606-1)

COBRA requires a plan administrator to provide plan participants and their enrolled spouses an initial notice

describing their COBRA rights when plan coverage begins. The DOL’s new rules provide a deadline by which this notice must be sent (generally, within 90 days after coverage begins) and the DOL’s new rules includes a sample of this notice. The rules confirm that this initial notice can be given by including it in the plan’s Summary Plan Description (“SPD”), so long as:

• The SPD meets the DOL’s content requirements for both initial notices and SPDs.

• The SPD is delivered according to the requirements for initial notices, including delivery to an employee’s covered spouse.

(If the initial COBRA notice is included in the SPD, employers will need to carefully track and document delivery of the SPD in the same way they have done pre-viously for initial COBRA notices.)

II. Qualifying event notice from the employer to the plan administrator (§ 2590.606-2)

These rules require an employer to notify the plan administrator of termination of employment and cer-tain other qualifying events, generally within 30 days after the event. In most cases, the employer and the plan administrator are the same person, however, so the pro-visions of this section will not affect most employers.

III. Notices from individuals to the plan regarding COBRA events (§ 2590.606-3)

COBRA requires individuals to provide various notic-es to a plan under which they are claiming COBRA rights (e.g., notice that a divorce has occurred) as a condition of receiving COBRA coverage or an extension of COBRA coverage. These rules require plans to establish and dis-close reasonable procedures for individuals to notify the plan of:

• Divorce or legal separation.

• Ceasing to qualify as a dependent child.

• Second qualifying event during the 18 (or, if a dis-ability extension applies, 29) months following termina-tion of employment or reduction in hours.

• Social Security Administration determination of disability or ceasing to be disabled.

In most cases, the plan can require individuals to give these “incoming” notices within 60 days after the event and refuse COBRA coverage (or extension of COBRA coverage) if that timing requirement is not met. There are several exceptions to this rule, however, including a prohibition against applying the deadline if the plan’s

HUMAN

RESOURCES

Elizabeth E. VollmarVice President and

Senior Employee Benefits AttorneyWillis Legal and Research Group

Los Angeles Contact Info: (818) 548-7500


requirements for incoming notices have not been properly disclosed. (This underscores the importance of correctly distributing the initial COBRA notice and maintaining documentation of the distribution.)

Department of Labor Finalizes Rules on COBRA Notices

IV. Notices from the plan to qualified beneficiaries and other individuals (§ 2590.606-4)

The notices covered by these provisions include the elec-tion notice from the plan to qualified beneficiaries inform-ing them of their COBRA election rights. The new DOL rules prescribe the content of this notice and confirm that, if the employer is also the plan administrator, the election notice deadline is 44 days from the date of a qualifying event that is death, termination of employment or reduction in hours of employment. (In most other cases, the notice is required within 14 days after the plan is notified of the qualifying event.) The rules include a sample election notice.

These rules also impose two new requirements:

• A plan must provide a written explanation of the rea-sons for a denial of COBRA coverage to an individual who has notified the employer of a qualifying event.

• A plan must provide written notice when COBRA cov-erage ends earlier than the end of the maximum coverage period, giving reasons for the early termination.

Compliance Steps for Employer Plans

• Determine whether to include the general COBRA notice required at enrollment in the plan’s SPD.

• Review current enrollment and election notices to determine if they meet the standards of the new rules (as

well as SPD standards for COBRA disclosures if the enroll-ment notice is included in the SPD).

• Review current procedures for sending enrollment and election notices to determine if the timing requirements set out in the rules are met, and whether the method of deliv-ery is acceptable.

• Create notice forms for the two new notices required by the rules.

• Create procedures for completing those forms and sending them out in accordance with the rules.

• Create procedures for individuals to follow in sending notices to the plan and ensure those procedures are reflect-ed in the SPD, the general notice and the election notice.

About the Author: As a senior member of Willis’ Legal and Research Group (LRG), Liz Vollmar provides expertise and leadership within LRG and sup-ports the Willis Benefits Practice in answering employers’ questions about employee welfare benefits programs and solving employers’ benefits con-cerns. Liz has more than 15 years of hands-on experience with planning and implementing cost-effective welfare plans and welfare benefits compli-ance strategies, and works closely with Willis consultants and clients across the country. Liz’s wide-ranging expertise with respect to welfare benefits programs includes particularly in-depth knowledge of COBRA, HIPAA, ERISA, FMLA, cafeteria plans, consumer-directed health plans, welfare ben-efit plan funding and administration, compliance with Internal Revenue Code requirements for favorable tax treatment of benefits, and welfare benefits issues in mergers, acquisitions, and divestitures. Liz is a nationally recognized speaker and widely published author on several of these topics.

Willis Employee Benefits Alert is produced by Willis’ Legal & Research Group. The information contained in this publication is not intended to represent legal advice and has been prepared solely for educational purposes. You may wish to consult your attorney regarding issues raised in this publication. Willis publications appear on the internet at: www.focusonbenefits.com © Copyright 2004. Reprinted with Permission.


GENERAL

MANAGEMENT

The Four Stages of Burnout: Are You Surviving the Burnout Battlefront?

Mark Gorkin, LICSW“The Stress Doc” ™

[email protected]

Today’s world is 24/7, wired and always on, often cycling between upgrading and reorganizing (if not out-sourcing and downsizing). And the company mantra: “do more with less.” Big surprise…many folks are feeling “lean-and-MEAN” at the burnout battlefront. But have no fear (well, maybe a little) the “Stress Doc” is here. With insight, humor, and clear concepts and practical skills, this three-part series will help you survive and thrive in these turbulent times:

Part I: The Four Stages of Burnout: A Self- Assessment Tool

Part II: A Three-Step Model of Burnout Recovery

Part III: Developing Psychological Hardiness and Natural SPEED: Prevention Strategies

The Erosive Spiral

The classic set-up for burnout is a professional or personal situation that places ongoing high demands and responsibilities upon you while restricting your sense of control, autonomy and/or authority. Inflexibly high expectations and elusive goals only add fuel to the fire. Consider my Vital Lesson of the Four “R”s: If no matter what you do or how you try, Results, Rewards, Recognition, and Relief are not forthcoming and you can’t say and mean “No” or won’t let go…trouble awaits. The groundwork is being laid for apathy, callousness and despair. Have I captured your attention?

Let me now provide a working definition: Burnout is a gradual process by which a person detaches from work and other significant roles and relationships in response to excessive and prolonged stress and mental, physical, and emotional strain. The result is lowered productivity, cynicism, and confusion…a feeling of being drained and having nothing more to give. Whew!

It’s time to examine some of the progressive signs of being caught up in this erosive spiral. Here are “The Four Stages of Burnout”:

1. Physical, Mental, and Emotional Exhaustion. Do you recognize this sequence? Maybe you are still hold-ing it together at work, but as soon as you get home it’s right for the fridge. You get out the Ben & Jerry’s or the light beer, turn on the tube, hit the sofa, and then you’re comatose for the rest of the evening. Normally you pride yourself on doing a thorough job, a high quality performance, but all the budget cuts have you looking for shortcuts, if not cutting corners. And this gnaws at your self-esteem; maybe you waver between resentment and pangs of guilt. A case of the “brain strain” is devel-

oping, accompanied by an energy shortage and feelings of exhaustion. If stress continues unabated, you may be ripe for the second stage.

2. Shame and Doubt. At this stage, for example, when a supervisor asks you to take on a new assignment your first reaction is to be helpful, but suddenly a voice inside silently screams, “Who are you kidding!” So what’s hap-pening? You’re feeling shaky in the present and losing confidence about managing the future. You can even start discounting past accomplishments. Remember, this is not a logical process but a psychological one. Will colleagues, friends, or family members sense that some-thing is wrong? Are you being exposed as an impostor?

And then you catch yourself emitting heavy, labored sighs. (When do people often engage in heavy, labored sighing and breathing…other than when calling those 1-900 numbers? Just kidding.) But seriously, the sigh-ing stress smoke signal can occur when experiencing a deep sense of loss, or when ego-relevant change is per-ceived as uncontrollable. Is chronically grappling with a profound sense of vulnerability or uncertainty your favorite state? It’s certainly not mine. No surprise that some folks progress to the third phase: “Cynicism and Callousness.”

Are you starting to feel I’ve been looking in your win-dow? Don’t bail out; two more stages to go. And next we’ll check out your “tude.”

3. Cynicism and Callousness. Not surprisingly, in response to these vulnerable feelings some people put on their heavy armor. Do these expressions sound famil-iar: “Look out for # 1,” “Cover your derriere,” “Get out of my way,” “No one’s getting to me,” and “That’s that!” And in the short run this strategy may work: you become sufficiently abrasive and people start avoiding you. But over time this hard exterior can become a heavy burden. Ironically, sometimes those most susceptible are “nice” people who like to accommodate others.

Here’s an example. Years ago, I met Joe, head of a large plumber’s union at a construction industry conference. Joe was basically a down to earth, nice guy who found he was becoming increasingly bitter, with that hard atti-tude. And this change was scaring him. Now granted, Joe was in a position that pulled him in all directions with its compelling demands, favors, complaints, and, even, bribes. Still what was Joe’s biggest stress trap? I believe it was being too nice. What can’t nice guys and nice gals do? They can’t say “No!” They lack confidence in setting limits or establishing boundaries, especially with author-


ity figures. They are indiscriminately pleasing and often try to avoid conflict. In moderation, being a people pleaser can be endearing and helpful; in excess it leads to dysfunctional relating and exhaustion. Remember, burnout is less a sign of failure and more that you gave yourself away.

We all know the importance of “R & R” when it comes to dealing with stress – “Rest and Recreation.” Actually, I believe “N & N” is just as important: the ability to say “No” and to “Negotiate.” Not “no” and slam the door. “N & N” is a position that quickly clarifies what you can’t do but also outlines how you can be of help. It’s a “no” that tries to understand where the other person is coming from, provides explanatory facts, and is open to exploring new options. For example: “Sure I’ll help you with this new project and deadline. But for me to give the assignment the attention it deserves, we may have to renegotiate my cur-rent priority list and timelines.”

Getting back to Joe, he thought he was experiencing a split personality process – going from Dr. Jekyll into Hiding. I had to reassure him that this wasn’t a genetic transmuta-tion but that he had gotten caught up in the burnout spi-ral.

And there’s another salient issue. Burnout doesn’t just facilitate a hardening of the psyche, that hard attitude. When your stress starts to smolder and turns to frustra-tion, seething anger, and then “why are they trying to do this to me” mistrust…this also may become a formula for hardening of the arteries. High blood pressure, hyperten-sion, cardiovascular complications, even heart attacks and brain attacks (or strokes) are potential health risks. Which is why, sometimes, I’d rather have people hit the fourth stage, than be trapped in the third: “Failure, Helplessness, and Crisis.” While it sounds terrible, consider this: hitting bottom means there’s no more downward spiral. And if you can reach out, there’s nowhere to go but up.

4. Failure, Helplessness, and Crisis. Being caught in that “Career Catch-22” often signals the final stage: Damned if you do; damned if you don’t. Damned if you stay, damned if you leave. Your coping structure seems to be coming unglued. Next stop, the Stress Doc’s couch. Hopefully not, but the crisis smoke signals are billowing big time. Why is that? Burnout is like trying to race a marathon – 26 miles, full speed, non-stop…no way. Even Olympic marathon runners must pace themselves. Without pacing the body parts wear out and the mental apparatus breaks down. In fact, one reason the fourth stage is so disorienting psycho-logically is that there are cracks in your defensive armor. Painful memories and old hurts, normally under cover, are pushing to the forefront of our consciousness, coloring our everyday perceptions. Now an individual’s occasional, somewhat annoying behavior really irritates as it reminds you of a mannerism of your father or an ex-partner. Or jeal-ousy towards a colleague reeks of sibling rivalry.

Before throwing up your hands, remember, burnout is not for wimps. A lot of other folks would have jumped ship much earlier. Many reach the farther stages of burnout because of a sense of responsibility, tenacity, and dedica-

tion. Noble qualities unless paired with a too rigid or “one right way” of thinking. Then, especially in times of overload, uncertainty, and major change, a performance benefit can quickly turn into a professional liability.

And finally, there’s the question of the millennium: Why is Prozac and its chemical cousins so popular these days? It’s not rocket science, just plain medical science. Prolonged stress over time will do a number on the functioning of your hormonal and biochemical systems, influencing the work-ings of such neurotransmitters as Serotonin. Serotonin is instrumental in mood stability. While these new psychotro-pic medications, such as Prozac or Effexor, especially when combined with counseling, bring real symptom relief for many (usually without disruptive side effects) the moral is clear. Prolonged stress over time can lead to mood instabil-ity, and even clinical depression, especially if there is some genetic predisposition, early childhood loss, or unresolved post-traumatic stress.

Fourth stage burnout is the crisis point; it’s crunch time. Are you ready to step up to the plate and reach out for the help and resources you need? A person recovers and expands his or her strengths and possibilities through a crisis when:

1) getting proper support from a professional trained in crisis intervention and loss

2) confronting denial, false hopes, cynicism, and help-lessness

3) grieving past and present losses while turning guilt and hurt, anxiety and aggression into focused energy

4) acquiring skills and technology for transforming new awareness and motivation into effective problem-solving and expanded possibilities.

My poetic anthem to burnout and beyond:

For the Phoenix to rise from the ashes

One must know the pain

To transform the fire to burning desire.

Four stages of burnout. Four steps for recovery and reju-venation. Are you ready to experience creative burnout? Stay tuned to Part II for a burnout recovery model. Until then…Practice Safe Stress!

About the Author: Mark Gorkin, LICSW, “The Stress Doc”™, is a keynote and international/Celebrity Cruise Lines speaker, trainer and syndicated writer specializing in stress, team building, managing anger and difficult people and HUMOR! The Doc is the author of Practice Safe Stress: Healing and Laughing in the Face of Stress, Burnout, & Depression and The Four Faces of Anger: Transforming Anger, Rage and Conflict into Behavior and Attitude that Inspire. As AOL’s “Online Psychohumorist”™ the Doc runs a weekly “Shrink Rap ™ and Group Chat.” National Public Radio (NPR) cited his USA Today Online “Hot Site” – www.stressdoc.com – as a “workplace resource.” Email [email protected] for his free, monthly award-winning newsletter, and for more info on his speaking programs and a complete list of products.

http://www.stressdoc.com



FINANCIAL

MANAGEMENT

Law Firm Divorces Departing Partners - Economics & Ethics

Remember the old adage, “when all else fails, read the instructions”? Clearly that advice applies when partners or shareholders announce their intended withdrawal from the law firm. The legal community has become increasingly more mobile, and it is very common today in firms large and small for partners, shareholders or even entire practice groups to change their affiliations overnight.

A firm’s partnership agreement and/or the buy-sell agreement will generally detail the governing standards regarding the duties of the firm to the departing attor-ney as well as the duties of the departing attorney to the firm. However, it is the ethics rules of the ABA, state and local Bar Associations which govern the protection of the clients’ interest such as: (1) undisturbed fol-low-through on existing representations; (2) attorneys’ self-promotion and client solicitation; or (3) transfer of client property and files.

ECONOMICS - PARTNERSHIP AGREEMENT

The law firm’s partnership agreement, the law corpo-ration’s buy/sell agreement and/or employment agree-ments will typically separately address the financial issues under several departure scenarios: death, dis-ability, judicial appointment, expulsion or withdrawal. It is the attorney making a lateral move to continue the practice of law who presents the greatest economic risk to the firm.

The partnership agreement, buy/sell agreement or other management documents should provide specific guidance regarding:

1. Timing and method of returning capital contributions of the withdrawing partner, or the method of calculation of the repurchase price of shares held by the shareholder.

2. Any limitations on amounts payable to departing and former partners during specific peri-ods.

3. Departing partner’s entitlement to funded or unfunded deferred compensation.

4. The terms and conditions of the departing partner’s entitlement to any share of WIP, AR, and continuing draws, salaries or bonuses.

5. Departing partner’s liability for a pro rata share of current and long term obligations such as office lease, bank guarantees, etc.

6. Any existing indemnification agreements dealing with post-withdrawal liabilities incurred by the firm or the individual partner, malpractice

insurance deductibles for claims made against the departing partner after the departure, or direct and indirect cost arising from the withdrawal. (LA County Bar Association Professional Responsibility and Ethics Committee Formal opinion number 480 provides that “…a law partnership agreement may impose a reasonable cost on departing partners who compete with the law firm in a limited geographical area…”).

7. All covenants concerning firm property including trade secrets (firm financial statements, computer files, client lists, form files, etc.).

In the case of involuntary termination of a partner or shareholder, other documentation should also be carefully reviewed to ensure that firm policies regarding disciplinary procedures and established precedents are being followed. As is true with other “employees”, com-pensation, in exchange for a general release (employ-ment related issues), should also be considered for the terminated partner or shareholder.

Management personnel should be assigned to thor-oughly review WIP and AR of the departing attorney. Schedules to bill-out all WIP should be developed, and a detailed time schedule for the collection of outstanding bills should be prepared. Procedures should be estab-lished for resolution of future client disputes of AR.

For clients transferring their matters to the departing attorney, clear agreement should be reached regarding application of future client payment to the oldest AR before the departing attorney accepts payments for ser-vices performed after the file has been transferred.

Partners in a general partnership have always been considered “fiduciaries” to each other and as such have the duty of loyalty, the duty of care, and the duty of good faith and fair dealings. It is often the perceived violation of these “duties” by a departing partner that has given rise to many recent civil actions against withdrawing partners who spirited away major firm clients, associ-ates and staff.

ETHICS

The client’s absolute right to change counsel at any time with or without cause is considered virtually sacred. Since the practice of law is about relationships and trust, it is the rule rather than the exception that clients of a departing attorney will generally want their files to leave the firm with the withdrawing partner. It is the client’s right to choose counsel which prevents negotiations or agreements, either prospectively or at the time of withdrawal, to divide up client files.

Jan ChristensenExecutive Director

Silver & Freedman, APLC310-556-2356

[email protected]


The California Code of Professional Responsibility strictly limits the attorneys’ solicitation of persons known to be represented by counsel. Under certain circum-stances, the courts have found that taking a case from another lawyer may constitute a tort. [Rosenfeld, Meyer & Susman v. Cohen (1983) 146CA3d200,221-222, 194 CR180, 193] However, there is no solicitation limitation when the departing attorney has an existing relationship or former relationship [working attorney] with the client. In other instances, the courts have found that appropriating active matters from a firm by a departing attorney constituted a breach of fiduciary duty to that firm.

When a client employs a law firm, the client actually engages the services of all members of the firm. Thus, for a departing attorney to take his/her “book of business” to a new firm, the client must terminate the relationship with the existing firm.

The State Bar of California Standing Committee on Professional Responsibility and Conduct’s Formal Opinion 1985-6 provides: “When possible and appropriate, a law firm and withdrawing partner should cooperate to the end of providing joint notice of the withdrawal to clients.” Whether the client notification of attorney departure is a joint endeavor or separate, statements to solicit a client to stay with a firm or to transfer their matters to a new firm must be truthful, not misleading or vexatious.

Upon notification by a client of termination of the firm’s representation, the firm has several ethical obligations to the client including:

• Duty to PROMPTLY sign substitution of coun-sel (the firm remains obligated to act competently to protect the client’s interest until the substitution has been filed with the court.)

• Duty to PROMPTLY release all property and files related to the client. Generally the file includes pleadings, correspondence to and from firm attorneys, investigation and research reports, and even firm attor-neys’ work product if such information might avoid prejudice to the client’s rights. (NOTE: the client can only be charged with copying the files if specified in the fee agreement.)

• Duty to PROMPTLY return any unearned fees except “true” retainers.

Until a client terminates a representation, the firm has the responsibility to ensure that the client’s interests are protected. The status of existing cases should be analyzed, and the department head or a billing partner, other than the departing attorney, should be assigned to oversee the representation. The assigned partner should be introduced to the client and information regarding the assignment circulated to legal and administrative per-sonnel within the firm. Since unprofitable matters are generally undesirable to both the departing attorney and the firm, care must be taken that small or unprofitable matters are also reassigned with clear communication to the client regarding both matter status and relationships.

ADMINISTRATIVE

When attorney departures are announced, the associ-ated administrative tasks can be varied and complex. An attorney departure could dramatically impact the stability of the firm and may even necessitate a reduction in asso-ciates and/or staff. Administrative issues to be addressed may include:

• Internal and external notifications of the depar-ture and addressing resulting firm morale;

• Remove departing attorney as authorized check signer on firm bank accounts;

• Cancel or transfer subscriptions or publications unique to the departing attorney;

• Reassign firm administrative responsibilities of the departing attorney.

• Prepare standard documents related to employ-ment termination including COBRA notifications, employee benefit conversion options, etc.

• Inventory personal property being removed from the firm;

• After move-out, cancel building access card, passwords and parking space;

• Restrict computer access, cancel voice-mail, e-mail electronic research accounts. Collect office keys, credit cards, notebooks, dictation devices and other personal property belonging to the firm;

• Remove departing attorney name from building directory, websites, letterhead, marketing collateral, etc. Notify Martindale-Hubbell, the phone company directory listing, state and local bar associations.

• Supervise the timely review, copying and transfer of client files on receipt of client instructions. Obtain signed receipt on delivery of files.

• Instruct reception and office services how to handle incoming telephone calls, mail, and deliveries.

For a whole host of reasons, facilitating a positive depar-ture of an attorney is extremely important and can have a significant long-term effect for a firm. This is not always easy. Like domestic relations “divorces”, partner departures can bring a multitude of emotions to the surface. After the economic, ethical and administrative tasks of the departure are addressed, the wise firm elicits frank feedback from the departing attorney and evaluates the departure causes and effects with an eye to the future.

About the Author: Jan Christensen is a management con-sultant serving as Executive Director of Silver & Freedman, a growing mid-size Century City law firm. Ms. Christensen obtained her degree from Georgetown and has served as Business Manager or COO in the service industry for the past 20 years. Initially joining ALA in 1980, she has served in numerous Board positions. Her book on law firm man-agement, “LEGAL DYNAMICS, The Business of Law” will be released soon by Prentice Hall Publishing.


*He may not have argued the closing statement that won the million dollar judgment…

... But, boy did he ever type andspell every word of It properly.

A great law firm needs more than great lawyers.

Employee absences, whether planned or not, can wreak havoc. How can you keep pace when the hive is missing so many worker-bees? The answer is simple: Matura Farrington Staffing Services. We’ve been placing legal staff for nearly a decade, andunlike other firms, that’s all we do. We’renot in the business of selling; we’re in thebusiness of helping. So we know what youneed—and what you don’t—and have theresources to keep your office going, smooth-ly, quickly, and unobtrusively. Best of all,we’ve simply got the full range of people—secretaries, paralegals, receptionists,records clerks, billing clerks, word proces-sors, both temp and full-time—that any great firm, like yours, needs to keep ticking.

So maybe you need someone who knowslitigation... acquisitions... and lots of otherfour-syllable words. Face it: every greatoffice needs a great supporting cast, andMatura Farrington Staffing Services can putthe people in place for you.

Call Matura Farrington Staffing Servicestoday at (213) 553-8451, and get thejob done.

660 South Figueroa Street, #1420 Los Angeles, CA 90017

(213) 553-8451 Fax (213) 533-8878

www.maturafarrington.com

S t a f f i n g S e r v i c e sFARRINGTONMATURA

*


Dodie Edelstein is the owner of Legal Information Systems Training (LIST), which specializes in helping you get the most from the software you have. She provides customized legal-specific training and support services for document processing, e-mail and document management software.

We all use tables for many different reasons in Word. Hopefully, you’ll use it where you used to use col-umns or tabs in previous word processing programs. Tables are easier to manipulate, can be formatted quickly and have some useful features that come along as part of the package.

Here are some of my favorite tips I’ve learned over the years from watching people work with Tables:

Our Favorite Table Tricks

What you Want to Do: How to Get There: Any Gotchas or Notes?

Add a blank paragraph at the top of a document (before your table)

Go to the top of the table (in the first cell), Press Enter

None

Repeat the first line(s) of a table on following pages

Highlight the top row(s) you want to repeat, click Table, Heading Rows Repeat

To see if this has been done, click in the row you want to repeat and see if there’s a checkmark next to Table, Heading Rows Repeat.

Insert a tab inside a table Press Ctrl + Tab None

Add a row the quickest wayPut your cursor outside the end of the table row, Press Enter

Can only add one row (see next item)

Add more than one row at a timeSelect the number of rows in your existing table before you click Table, Insert Rows

Word (and Excel) always inserts the number of rows you select, which is why you aren’t asked for the number of rows to insert

Split a table into two tablesPut your cursor in the first row that you want designated as your second table, and click Table, Split Table

To rejoin the table, just delete the paragraph mark(s) between the two.

Move a row up or down Press ALT + SHIFT + Up/Down ArrowThis is so much easier than cutting and pasting! (works for paragraphs, too!)

Keep a row from splitting at the bottom of a page

Put your cursor in the row that’s split-ting, click Table, Table Properties, Row, uncheck Allow Row to Break Across Pages

You can select the whole table first and apply this format to the entire table to keep all rows from split-ting.

Remove all the Table Borders Press CTRL + ALT + UGo to Format, Borders and Shading to add borders back

Switch a table from Portrait to Landscape

Change Page Setup to Landscape, then right-click in your table and choose Auto-Fit to Window

The table automatically expands to fit from margin to margin

Dodie EdelsteinLegal Information Systems Training

[email protected]

www.aboutlist.com

TECHNOLOGY

TIP

The Best of Tables (All versions of Excel)


��

��

��

��

��

��

��

��

��

��

��

��

��

�

��

��

��


Technology ConsultingNetwork InstallationDisaster RecoverySecurity AnalysisTechnical Support 24x7Document ManagementApplication & Desktop SupportTraining ServicesCustom MacrosDatabase DevelopmentHardware & Software Sales

Contacts:Kevin [email protected]

Catherine [email protected]

Servicing the Legal CommunitySince 1974

www.wamsinc.com 800.421.7151 Office 222 South Harbor Blvd., Suite 740, Anaheim, Ca 92805

SOS (SUCCEED OVER STRESS)“Finish each day and be done with it . . . You have done what you could; some blunders and absurdi-ties no doubt crept in; forget them as soon as you can. Tomorrow is a new day; you shall begin it well and serenely.”

--Ralph Waldo Emerson

This month: How to Banish a Bad Mood

If you’re in a foul mood, don’t just wait for the cloud to pass. Researchers are getting closer to learning how we can order up happiness when we need it. Try some of these scientifically proven tips:

Write a thank you note. Just thinking about what you’re grateful for can increase your happiness quotient and even make you healthier, according to a study from the University of California, Davis. Gratitude triggers positive emo-tions such as joy and hope that in turn help your immune system, explains lead researcher Robert Emmons, Ph.D.

Take a Hike. Actually, even a short stroll will do. A review of 32 studies in the Journal of Aging and Physical Activity suggests that physical activity will improve a person’s mood perhaps by causing the brain to release chemicals like serotonin, which is known to boost feelings of well-being. Three, brisk, 10-minute walks in a day can do it, says research reported in the journal, Medical Science Sports Exercise.

Do a Good Deed. Of course it cheers you up when others do something nice for you, but doing something nice for someone else might actually make you happier. Studies show that happy people give more time and money to charities, which leads us to believe happiness is related to doing good deeds, says Philip Watkins, Ph.D., professor of psychology at Eastern Washington University in Cheney, Washington.

So, remember, slow down, find gratitude in what you have, take time to take care of yourself ……..and BREATHE.

SOS is a monthly column of WellnessWorks. Gloria Albert, Director of WellnessWorks, has been a health consultant for over 20 years. Her approach to reducing stress and adding wellness to one’s life is practical, hands-on, pro-active and fun. To find out more information, request a brochure or schedule a class please contact Gloria at 310.393.6078,

[email protected], or visit http://www.WellnessWorksUSA.com.


http://www.Wellne


NEW MEMBERS

IN BETWEEN JOBS? You may want to join in on the networking group Carol Leemon has put together to assist out of work members. Feel free to contact Carol at [email protected] or 213-617-5248.

MEMBER CHANGES

Linda A. Artiano Office Manager

Artiano, Guzman & Toomey 3828 Carson Street, Suite 102

Torrance, CA 90503 T: 310-543-1240 F: 310-543-9850

[email protected]

Robert SantosDirector of Information

Technology and FacilitiesManning & Marder, Kass, Ellrod,

Ramirez LLP660 S. Figueroa Street, 23rd Floor

Los Angeles, CA 90017T: 213-624-6900F: [email protected]

Elayne Lisowski - ReinstatedAdministrator

Glass & Seebode14431 Hamlin StreetVan Nuys, CA 91401

T: 818-947-5900F: 818-947-5914

[email protected]

Susan N. Wilmer - ReinstatedAdministrator

Seed Mackall LLP1332 Anacapa Street, Suite 200

Santa Barbara, CA 93101T: 805-963-0669F: 805-962-1404

[email protected] MEMBERSHIP

NEWS

Diana BurgerResigned

Michael DoornMoved Out of State

[email protected]

Michelle R. HealyAll New Information

[email protected]

Ilona Reddick All New Information

Glassman, Browning & Saltsman, Inc.360 North Bedford Drive, Suite 204

Beverly Hills, CA 90210T: 310-278-5100F: 310-271-6041

[email protected]

Dennis VasquezAll New Information

701 N. Kenwood StreetBurbank, CA 91505

T: [email protected]

Robin Thomas-Miles Last Name Change (include hyphen)

Firm Relocation Address & Phone Numbers Changed

Sheppard Mullin Richter & Hampton1901 Avenue of the Stars, Suite 1600

Los Angeles, CA 90067T: 310-228-3712F: 310-228-3701

[email protected] (this did not change)

Gerrie B. RueAll New Information

2201 Ravenfall AvenueRowland Heights, CA 91748

T: [email protected]

Anne P. BanducciAll Information Changed

Except E-Mail AddressVice President, Legal Division Administration

Countrywide Home Loans, Inc.400 Countrywide Way, MS SV-11

Simi Valley, CA 93065T: 805-577-3968F: 805-577-3439

[email protected]

Karen DoyleCorrection to Title

Office Administrator

Elaine Van RensburgFirm Name and E-Mail Changed

Shea Stokes & [email protected]

For the last five years, LINDA ARTIANO has worked at a small albeit growing firm as their Office Manager. True to form with that title, Linda wears many hats, including, support staff supervisor, payroll /accountant, benefits coordinator and administrator and buyer of supplies. The firm of Artiano Guzman & Toomey, locat-ed in Torrance, includes 13 attorneys (also includes her husband of 26 years, who is a Partner at the firm) and 8 support staff.

Prior to working as an Office Manager, Linda attended Southwestern Law School, passed the California bar and worked as family law attorney for several years before taking a hiatus to become a homemaker and attend to her two children. Her children have left the nest to attend college. During her hiatus from practic-ing law, Linda found time to become a volunteer attorney in Los Angeles at the Harriet Buhai Family Law Center. When asked if she missed practicing as an attorney, Linda stated, “I like organizing and coordinating things and believe my personality is better suited to office managing.”

She was referred to ALA and GLAALA at a meeting with a managing partner in Orange County. Linda recently attended GLAALA’s Records Retention Seminar and she told her managing partner, “The seminar was absolutely fabulous. What I learned at one seminar already paid for my annual dues!” Welcome Aboard!

by Robin Sommerstein

NEW MEMBER BIO



MEMBERSHIP

BENEFITS

• Discounts on management resources relating to human resources, finance, technology, facilities, leadership, total quality management and marketing

• ALA publications such as Legal Management, ALA News,Greater Los Angeles Leadership Exchange

• Discounts from numerous vendors and organizations through ALA Value in Partnership (VIP)

SM Program

• Membership and Peer Consulting Directory

• National and local websites(www.alanet.org and www.glaala.org)

• CLE/CPE Credit on selected programs

• Career Resources Kit

• Opportunities for networking and professional recognition

• Educational opportunities at National and RegionalConferences, Retreats, local luncheon and educational programs, and teleseminars

• ALA Management SolutionsSM

(Professional headquartersstaff provides assistance in locating resources and referencfor your current management questions. Available in Members Only section of www.alanet.org or call 847-267-1252).

• ALA Management EncyclopediaSM

(CD Rom Program) (www.alanet.org/alame)

• ALA Currents

• Certified Legal Manager (CLM)SM

program

• “A Business Skills Curriculum for Law Firm Associates” (www.alanet.org/bsc)

• ALA Management ConnectionsSM

(National’s web-based job bank); as well as GLA’s local job bank

• Legal Vendors Index - www.alanet.org/vendors

• The Legal E-Business Guide

• Client Satisfaction System (see www.alanet.org and/or www.andersonboyer.com)

• Management Resources Catalog (www.alanet.org/products)

For a complete listing of benefits check out ALA’s Comprehensive Guide to Your ALA Benefits at http://www.alanet.org/alaok/index.html, or contact any Board member.

National’s Web Sitewww.alanet.org

Greater L.A. Chapterwww.glaala.org

MEMBERSHIP BENEFITS

August Mini-SpotlightsQUESTIONS: What tip, trick or organizational tool do you use most often at work? If you cook during the work week, what is your favorite quick dish to prepare? If you don’t cook, what is your favorite take-out food?

Karen Doyle, Office Administrator, Kirkpatrick & Lockhart, LLP

“Who’s organized? Actually, I follow a very simple system. I use Microsoft Outlook’s Calendar. I print out documents from the calendar and keep a pending expand-able file for hard copies of documents. I also have access to my calendar with my Blackberry.”

“I don’t cook dinner anymore and my husband is on his own. I don’t do take-out either. I usually have a large lunch as my main meal and snack on fruit for dinner.”

Jeanne Gervin, Director of Human Resources, Paul Hastings, Janofsky & Walker, LLP

“The organizational tool I use most often is Microsoft’s Outlook Calendar system. I use it faithfully entering all my projects, meetings and task.”

“For dinner, I keep Gelson’s ready made salad loose with tomatoes in the refrigerator. I usually broil a piece of chicken, slice it up and put it on my salad. I add a little salsa for flavor.”


��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��


��

��

��

��

��“Never doubt that a small group of

thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has.”

- Margaret Mead

To: All GLA ALA Members and GLA Vendor PartnersFrom: Wendy Sweet, CLM, Vice President, 2004 CCW ChairpersonRe: 2004 CCW Info

Steering Committee has been formed!The GLA Board would like to thank all our members and vendor partners who have volunteered to serve on the 2004 CCW Steering Committee. We’ve had a huge response – approximately 35! Many hands will make this year’s work light. It’s inspiring to see so many people willing to help. An e-mail will be sent shortly to the Steering Committee scheduling our first teleconference.

What is the purpose/mission of the CCW program? Various organizations and communities are challenged on a daily basis - trying to obtain the resources they need to help people and further their cause. As we know, the unfortunate are also challenged - they often lead a life that not many can relate to and it's a challenge for them to receive the emotional, physical and financial help they need to get through the day.

To help those in need tackle their every day challenges, the Association of Legal Administrators (ALA) created its CCW program in 1999 where it encourages ALA chapters, their members, firms, vendors, relatives and friends to come together to contribute time, energy and resources toward improving their own communities. Join us in October 2004 and touch the lives of people in your area.

Upcoming CCW EventsStay tuned for more info . . . details of our charity events will be e-mailed in August 2004.

What do you do if you’re interested in helping in any way? Just let me know!Wendy Sweet, CLM / [email protected] / 213-896-3107

Just Imagine the Good You Could Do!Just Imagine the Good You Could Do!


Save the Date!October 8–9, 2004

ATTENTION VENDORS: Set-up and Exhibit Hall – October 8Vendor and Participant Welcome Reception – October 7

Association of Legal Administrators2004 Region 6 Educational Conference

Century City Plaza HotelCentury City (Los Angeles, California)

For more information contact:

Vendors: Jeannie CaBell, Region 6 Projects Officer(949) 932-3687; [email protected]

Erica S. Tamblyn, Region 6 Director(213) 892-4435; [email protected]

Patti Groff, Director At Large(619) 233-4777; [email protected]

Shawn M. Derfer, Education OfficerRegion 6 Representative(714) 668-5520; [email protected]

Joyce Patrick-Bai,Communication OfficerRegion 6 Representative(480) 655-0073; [email protected]

ASSOCIATION OF LEGAL ADMINISTRATORS

Save the Date!October 8–9, 2004

ATTENTION VENDORS: Set-up and Exhibit Hall – October 8Vendor and Participant Welcome Reception – October 7

Association of Legal Administrators2004 Region 6 Educational Conference

Century City Plaza HotelCentury City (Los Angeles, California)

For more information contact:

Vendors: Jeannie CaBell, Region 6 Projects Officer(949) 932-3687; [email protected]

Erica S. Tamblyn, Region 6 Director(213) 892-4435; [email protected]

Patti Groff, Director At Large(619) 233-4777; [email protected]

Shawn M. Derfer, Education OfficerRegion 6 Representative(714) 668-5520; [email protected]

Joyce Patrick-Bai,Communication OfficerRegion 6 Representative(480) 655-0073; [email protected]

ASSOCIATION OF LEGAL ADMINISTRATORS

GREATER LOS ANGELES LEADERSHIP EXCHANGE • WWW.GLAALA.ORG20 August 2004


REGION 6 EDUCATIONAL CONFERENCE PREVIEW October 8-9, 2004 - The Century Plaza Hotel & Spa

Join Us in Los Angeles for Lights, Camera and Education

Casting Party! Start off your Conference production under the Hollywood stars Thursday night at the Welcome Reception. Enjoy the evening sur-rounded by the crystal reflecting pools and lush gardens of the Century Plaza Hotel & Spa.

Kick off Friday morning with a unique performance from the juggling duo, The Passing Zone. As we “juggle” the many demands of our lives each and every day, The Passing Zone will provide a fun and inspiring routine featur-ing refreshing concepts relating to creativity and teambuilding. One of the most sought after comedy acts in the U.S., The Passing Zone, has appeared on The Tonight Show, NBC’s Today and Live with Regis and Kelly.

Friday’s session highlights include: Branding, Positioning and Differentiation (Larry Kohn), Fraud Detection & Prevention (Dave Roberts), Labor Law Update (Bob Wenzel), Managing E-mail (Laura Stack), 7 Steps to Investigate Internal EEO Complaints.

The Friday night celebration promises to be an event to remember! Join us at Universal Studios Hollywood for a night of mingling on Parisian streets, a walk on the red carpet, and dinner and dancing in the Globe Theater.

Saturday’s session highlights include: Counter-Intuitive Approach to Profitability & Success (Hap Ziegler), Computer Security Strategy (Jeff Roback), Substance Abuse (Patricia Tierney), E-Evidence Tampering (Eric Frieberg)

After brunch and an ALA update, the Conference will close with a general session by author, teacher and motiva-tional speaker, Chic Thompson, from the Creative Management Group. During this session, Thompson will inspire you to become an “idea generator” while problem solving. After the closing session, Thompson will also lead an interactive workshop. Following the workshop, be sure to take part in the CLMSM Idea Exchange.

GREATER LOS ANGELES LEADERSHIP EXCHANGE • WWW.GLAALA.ORGAugust 2004 21


FOR MORE INFO ON THESE EVENTS SEE WWW.GLAALA.ORG and WWW.ALANET.ORG

CALENDAR

OF

EVENTS

CALENDAR

OF

EVENTS

GREATER LOS ANGELES LEADERSHIP EXCHANGE • WWW.GLAALA.ORG 22 August 2004

AUGUST 2004

Tue 3rd Board Meeting 5:00p-8:00p-WestsideLuci Hamilton 310-629-0206

[email protected]

Wed 4th

CLM Study GroupSession 3 - Operations & Planning

Speaker: Edward Poll, J.D., M.B.A., CMC (Disaster, Strategic & Business Planning)

6:00p - 8:30pSulmeyer Kupetz

333 S. Hope St., #3500, LA$20 incl. dinner and parking

Susan Seales 213-633-6800 [email protected] or

or Rosela Marin 213-972-0119 [email protected]

Fri-Sat6th - 7th ALA - Board of Directors Meeting Hyatt Regency - Vancouver

Nicole Larson [email protected]

Tue 10th GLA Chapter MeetingTopic: TBA

11:45a-1:00pBeverly Hills Country Club

$30-members$35-guests

Register onlinewww.glaala.org

or contactMaureen Varnes at

213-895-4900

Tue 17th CLM Study GroupSpeaker & Topic: TBA

6:00pm - 8:30pmLocation: TBA

$20 incl. dinner and parking



Thu 19th Multi-Office Section MeetingRoundtable Discussions

12:00pm-1:00pmDavis Wright Tremaine LLP,

865 S. Figueroa St., LA

Susan Seals 213-633-6800 [email protected]

Wed 25th San Fernando Valley SectionTopic: TBA

12:00p-1:00pSteinbrecher & Associates

16830 Ventura Bl., # B, Encino

Janis Smith [email protected]

Thu 26th

ALA Teleseminar - There’s Trouble in E-Paradise: Cyberspace has been “Discovered” and Employers Are Paying to “Document It”

Speakers - Dean Silverberg of Epstein, Becker & Green

Jan Marshall [email protected]

Thu 26th Technology Section MeetingTopic: Roundtable Discussion

Location TBAStephen Green 310-229-3839

[email protected]

SEPTEMBER 2004

Wed 8th

GLA Chapter MeetingSpeaker: TBA

Topic: TBA

11:45a-1:00pLos Angeles Omni Hotel

$30-members$35-guests

Register onlinewww.glaala.org

or contactMaureen Varnes at

213-895-4900

Thu 9th

CLM Study GroupSession 5 - Financial Management &

AnalysisSpeaker: Michael Palmer, Director of Administration of Akin, Gump, et al.

6:00p - 9:00pSulmeyer Kupetz

333 S. Hope St., #3500, LA$20 incl. dinner and parking



Fri 10th GLA Board Retreat12:00p - 7:30p

Location: Downtown, TBALuci Hamilton 310-629-0206

[email protected]

Tue 14th GLA Education SessionTopic: TBA

Time: TBA

Location: Downtown, TBARosela Marin 213-972-0119

[email protected]

Thu 16th Small Section MeetingTopic: TBA

11:45a-1:00pWestside location TBA

Jerry Calcagno [email protected]


BOARD OF DIRECTORS

Past-PresidentJim Van DusenPond North LLP

(213) [email protected]

Seminars Co-ChairDebbie Mogren

Rosenfeld, Meyer & Susman, LLP(310) 246-3211

[email protected]

Programs Co-ChairFelice LevineArnold & Porter(310) 788-8208

[email protected]

Programs Co-ChairJoan Fraser

Paul Hastings Janofsky & Walker LLP(213) 683-5050

[email protected]

Seminars Co-ChairTeresa Cherman

Luce, Forward, Hamilton & Scripps LLP(213) 892-4967

[email protected]

Vendor LiaisonMichael Steiner, CLM

Frandzel Robins Bloom & Csato, L.C.(323) 658-9758

[email protected]

Seminars Co-ChairRosela Marin

Kamine Ungerer LLP(213) 972-0119

[email protected]

Membership Co-ChairKelly Shultz

Parker, Milliken, Clark, O’Hara & Samuelian


Membership Co-ChairRobin Sommerstein

Bet Tzedek Legal Services(323) 549-5814

[email protected]

HospitalityMaureen VarnesRodi, Pollock, Pettker, Galbraith & Cahill ALC


WebmasterStephen Green

Akin, Gump, Strauss, Hauer & Feld LLP


Job Referral ServicesIlona Reddick

Herzog, Fisher, Grayson & Wolfe


PresidentLuci Hamilton


Vice-President & Managing EditorWendy Sweet, CLM

Andrews Kurth LLP(213) 896-3107

[email protected]

SecretaryNaomi Haver

Iverson Yoakum Papiano & Hatch(213) 624-7444

[email protected]

President-ElectBrian Robbins

Hunt, Ortmann, Blasco, Palffy & Rossell, Inc.


GREATER LOS ANGELES LEADERSHIP EXCHANGE • WWW.GLAALA.ORG 24 August 2004

Treasurer &Newsletter Team

Janet ShawWickwire Gavin LLP


Newsletter Co-EditorSteven Jones

Lister Martin & Thompson(818) 551-6444

[email protected]

C

H

A

P

T

E

R

L

E

A

D

E

R

S

Membership Co-ChairPeggy Mead

Paul Hastings Janofsky & Walker LLP(213) 683-5011

[email protected]


SECTION LEADERS

Corporate/Government Co-Chair Vicki Cyr

Bank of America(213) 345-1143

[email protected]

Corporate/Government Co-ChairIris Stein

City Attorney’s Offi ce(310) 458-8309

[email protected]

Human Resources Jeffrey Krakauer

Morrison & Foerster LLP(213) 892-5403

[email protected]

Small Firm Jerry CalcagnoCarroll, Burdick & McDonough LLP


Finance Networking GroupBrian Robbins

Hunt, Ortmann, Blasco, Palffy & Rossell, Inc.


Multi-Offi ce SectionSusan Seales

Davis Wright Tremaine LLP(213) 633-6800

[email protected]

San Fernando Valley SectionJanis Smith

Steinbrecher & Associates(818) 528-7600

[email protected]

Technology SectionStephen Green

Akin, Gump, Strauss,Hauer & Feld LLP


REGION 6 OFFICERS

Region 6 Director Erica Tamblyn

Milbank, Tweed, Hadley & McCloy


Region 6 Communications Offi cerJoyce Patrick-Bai

Schmeiser, Olsen & Watts LLP(480) 655-0073

[email protected]

Region 6 Vendor Chair & Projects Offi cerJeannie CaBell

Dorsey & Whitney LLP(949) 932-3687

[email protected]

Region 6 Education Offi cerShawn M. Derfer

Lewis Brisbois Bisgaard & Smith LLP714-545-9200

[email protected]


C

H

A

P

T

E

R

L

E

A

D

E

R

S

INTRODUCING PEGGY MEADThe Board is so glad to have Peggy join us. Here’s a bit of info to help you get to know her a bit better.

Peggy is presently the Secretarial Services Manager at Paul Hastings. She’s been there for over 3 years but has been in the legal fi eld for most of her career, starting as a Legal Secretary 27 years ago for a Criminal Defense attorney in Tustin. She was a legal secretary for 15 years before going into administration, beginning as the Trainer & Secretarial Coordinator and then Secretarial Manager at Skadden Arps. For about 7 years after Skadden, Peggy pursued a networking business and returned to legal administration in 2000. She spent a year in law school at La Verne School of Law only to decide that she’d rather work and support lawyers than practice law. Peggy says she is excited to be part of the GLAALA and looks forward to the opportunity to grow and network. When she’s not at

work, Peggy enjoys missionary adventures, spending time in a Sister-to-Sister Mentoring Program, teaching 3rd and 4rd graders at her church, hugging her puppy, Phil, golfi ng, gardening, and decorating. Welcome Peggy!

by Wendy Sweet, CLM

[email protected] [email protected]

INTRODUCING PEGGY MEAD

GLAALA MISSION STATEMENTThe Association of Legal Administrators’ mission is to improve the quality of management in legal services organizations; promote

and enhance the competence and professionalism of legal administrators and all members of the management team; and represent professional legal management and managers to the legal community and to the community at large.

GREATER LOS ANGELES LEADERSHIP EXCHANGE • WWW.GLAALA.ORG26 August 2004 GREATER LOS ANGELES LEADERSHIP EXCHANGE • WWW.GLAALA.ORGAugust 2004 27GREATER LOS ANGELES LEADERSHIP EXCHANGE • WWW.GLAALA.ORG

��

��

��

��

��

��

CCW Ad 2004 Hammer 2/16/04 4:41 PM Page 1


CONTINUING COMMUNITY CHALLENGECancerCenter

ofSanta

Barbara

Former BHALA member and current vendor to many GLAALA firms, Marsha Cohen and her husband Len, have raised nearly $45,000 for the USC/Norris Comprehensive Cancer Center. Marsha’s son, David Sheldon (Marsha and her son pictured above), was a patient there for many years prior to his death in 1997. The funds have been raised through private benefits they have held over the years starting with a magic show in their yard with 65 guests and progressing to a casino night at a banquet hall with over 120 guests. The funds have been used exclusively to purchase research equipment for the Bone Marrow Transplantation Research Laboratory under the direction of David’s doctor, Dan Douer, M.D. (see picture below).

Also, with the passing of Len’s daughter from Cancer in 2000, the Cohen’s commissioned a beautiful oak cabinet containing ten stereo headsets and a CD library, for the Cancer Center of Santa Barbara, dedicated to Maxine Cohen’s memory. This unique addition has provided needed relaxation to patients while undergoing chemo at the Center where Maxine received treatment for several years Further, a memorial bench and boulder has been dedicated to Maxine at Elings Park in Santa Barbara overlooking the Pacific Ocean.

This year’s benefit is being held October 3, 2004 at Braemar Country Club in Tarzana and will feature a buffet dinner, silent auction, and live entertainment. The grand prize drawing is a Fire Magic Gourmet Series Barbecue Grill donated by Marsha’s son, Fred Sheldon, valued at $3,000. Other drawing prizes include dinner and one-night stay in La Jolla, Sunday brunch for four at Braemar Country Club, plus more. Proceeds will be sent to both USC/Norris Comprehensive Cancer Center and the Cancer Center of Santa Barbara.

Any members interested in attending the event on October 3rd or who want to participatein the drawing are welcome to call Marsha Cohen at her office, Pride of Los Angeles,

(818) 343-8659 or through email at [email protected].

To be faced with having a transplant at the age of thirty-two, and being told to think about making a will, was

the most frightening experience of my life.

The decision to have the procedure was never questioned. There would be no hesitation. I knew

that my best chance to cure my disease was alsothe most dangerous. But my confidence in mydoctors and the support of my family was the

fuel to give me the strength to endure.

I would not allow negative thoughts to detractfrom my strength and spirit. Even in the toughest

of times, and there were many, I never hadthoughts that I wouldn’t succeed.

Dr. Dan Douer and Staffat Dedication on August 23, 1997

Words from David I. Sheldon,1990 bone marrow transplant patient


Should Public Company Woes Be Private Company Worries?Scandals, Sarbanes-Oxley and the Implications for Private Companies

Since Enron’s implosion, the nature of corporate

governance and financial reporting for public com-

panies has changed radically. With the passage of the

Sarbanes-Oxley Act, Congress and the SEC have tight-

ened the controls placed on public companies’ financial

reporting and corporate governance. Regulators, courts,

institutional investors and plaintiffs’ lawyers are taking

a closer look at corporate governance and raising the

bar for actions by boards of directors and corporate

officers.

Owners and executives of private companies should

not relax and assume that it is only public companies

which have been affected by this new legal and regula-

tory environment. Although the majority of the changes

have been aimed at public companies, private compa-

nies are not immune. The scandals that shook Enron,

Worldcom and other public companies have affected

the standard practice for all companies – public and

private – and in many cases changed the benchmark for

reasonable business practices. Private companies will

be held to many of the same standards applicable on

their face only to public companies.

In light of this changed environment, it behooves

private companies to consider the controls and other

reforms imposed on public companies. The extent to

which a particular private company will want to adopt

these reforms will vary widely depending on its size,

ownership, industry and other factors, though every pri-

vate company – from “mom and pop” proprietorships

to large industrial corporations – will be affected to a

greater or lesser degree. Private companies with insti-

tutional and other outside shareholders will be under

more pressure to adopt these reforms than will compa-

nies entirely owned by founders, family members and

employees. Similarly, companies looking to go public

will need to be more sensitive to these issues. A private

company’s failure to heed the changes initiated with the

public company scandals, and instead to continue to do

business as usual, may result in unexpected trouble. The

concerns which private companies should have include

the following:

Sarbanes-Oxley Act of 2002

The Sarbanes-Oxley Act (or “SOX”) is primarily

directed at public companies, but two of its criminal

provisions are not so restricted. SOX makes it a crime for

anyone to destroy records with the intention of interfer-

ing with an investigation of any matter “within the juris-

diction of the federal government.” This covers a broad

expanse of matters, including federal tax, environmen-

tal, product safety and bankruptcy. The investigation can

be of the company or of someone else, such as a vendor,

customer or partner. A well-drafted and carefully imple-

mented record retention program may demonstrate that

the destruction of a document was genuinely routine

and not intended to impede an investigation, though all

relevant documents must be preserved once a company

learns that an investigation has started or is likely. Also,

SOX makes it a crime to retaliate against a whistleblower

– an employee who provides information to law enforce-

ment regarding a federal offense.

Financial Reporting

Since the Enron and Worldcom debacles, public

companies have undergone significant changes in the

process by which they prepare their financial state-

ments. Accountants are being more diligent in their

audits and are looking askance at practices which were

commonly utilized just a few years ago. Even if a private

company’s financial statements are not audited, the

statements must be reliable and not give a distorted

view of the company’s financial position. To a greater

or lesser extent, the financial statements of private

companies will be judged by today’s tougher standards.

Failure to provide complete, accurate and non-mislead-

ing information regarding a company’s financial status

may lead to multiple problems for private companies.

A materially misleading financial statement provided

to investors or creditors can lead to civil suits for fraud

or conspiracy, and it is a crime to provide false financial

statements to a bank.

SOX requires the chief executive officer and the chief

financial officer of a public company to certify that, to

their knowledge, the company’s financial statements

LEGAL

INDUSTRY

Gregory C. Fant, Esq.Arnold & Porter

[email protected]

arnoldporter.com


are not misleading and that adequate controls are in place.

Though certifications are not legally required for private

companies, an officer of a private company should be able

to sign a similar certification upon request from the com-

pany’s auditors, investors, lenders or board of directors. If

a CEO or CFO of a private company adopts the mindset

that he or she may need to sign such a certification, the

officer will likely take extra care to be sure that the financial

information is correct and, at a minimum, will be unlikely

to turn a blind eye to problems.

One SOX provision which has already migrated to the

private company sphere is the establishment of indepen-

dent audit committees. Many larger non-profit organiza-

tions have already instituted independent audit com-

mittees. Though small or family-owned companies are

unlikely to need or want independent audit committees,

larger companies, especially if they have outside investors

or are considering going public, should consider this step.

Management controls the preparation of financial infor-

mation, and in most private companies it is management

which also interfaces with the auditors. Having an inde-

pendent body in the company with direct responsibility for

appointing, compensating and overseeing the work of the

auditors provides a valuable check on management.

Increased Director Oversight

The changing nature of corporate governance and the

minimum requirements of corporate oversight are not lim-

ited to financial statements and accounting. Indeed, recent

events have changed the very nature of corporate gover-

nance. For example, in one recent Delaware case1 share-

holders sued the board of directors for failure to exercise

sufficient care in approving an officer’s employment agree-

ment; the officer was soon terminated by the CEO, trigger-

ing a huge severance payment. The shareholders claimed

that the directors had breached their fiduciary duties when

they “blindly approved” the employment agreement and

then later, “without any review or deliberation, ignored”

the CEO’s dealings with the officer regarding his termina-

tion. The court held that the alleged facts suggested that

the directors had “failed to exercise any business judgment

and failed to make any good-faith attempt to fulfill their

fiduciary duties” to the corporation and its shareholders.

Although on its face this case did not change existing

law with regard to director’s duties, the outcome indicates

that a new standard is being imposed on directors. Other

recent Delaware cases2 have also shown increased court

scrutiny of director actions and required greater oversight

by boards. The courts are raising the bar for directors,

requiring them to actively assert their oversight authority.

As with other areas, this higher standard will find its way to

private companies.

Dealings with Third Parties

Business Alliance Suits

A company may find itself being sued if it allows its

vendors, customers and others with whom it does business

to utilize it as a pawn in carrying out an improper scheme.

Disgruntled shareholders and creditors of public companies

have not limited their aim to just those companies, but have

expanded their targets to include the companies’ business

partners. While the nature of the claims has varied, the

theme has remained the same: shareholders and creditors

are suing business partners of public companies when

the business partner, by participating in a transaction,

allows phantom revenues or profits to be created for the

public company or other dubious financial results to be

achieved.3

For example, suppose a public company and a private

company agree, in essence, to “swap checks,” either by

contracting for non-existent services to each other or by

inflating the prices charged each other. Each company

could then recognize extra revenue; this might be neither

beneficial nor detrimental to the private company, but

would allow the public company to create an apparent

increase in its revenues. If the private company knew or

should have known that this was the public company’s

intent, then the shareholders or creditors of the public

company may sue the private company for aiding and

abetting fraud or on other theories.

Although one company cannot oversee how another

company accounts for its transactions, a company should

hesitate before entering into transactions susceptible to

claims of improper financial engineering. A key indicator

of a potential problem is if the transaction does not seem

to make financial sense for the other party, or if the other

party says that it wishes to do the transaction in a certain

way for unspecified accounting reasons; in these circum-

stances, the company must be wary.

Policy Statements

The recent mutual fund scandals, in which mutual funds

have been accused of allowing hedge funds and others to

engage in market timing, have indicated further changes

in the law of corporate governance that may impact pri-

vate companies. Although market timing is not illegal in

and of itself, most mutual funds have publicly announced

policies prohibiting it. Those mutual funds which have


allowed market timing, in violation of their stated policies,

have been targeted by the SEC, state regulators and fund

investors for violating those policies. The emerging rule is

that if a company has a publicly stated policy (including

ethics statements, codes of conduct, mission statements,

and the like) upon which third parties rely in their dealings

with the company, and the company violates that policy,

the company may be liable for fraud or misrepresentation.

This expanding scope of civil liability for public companies

is equally likely to apply to private companies who repre-

sent that they abide by published policies but fail to do so.

Conclusion

A private company’s desire to sit back and watch but do

nothing, as public companies undergo increased scrutiny

and are subject to greater restrictions and regulations, is

understandable but unwise. The changes imposed on

public companies by Congress, regulators and courts have

changed, and are continuing to change, the standards

for corporate governance and financial reporting. These

heightened standards in many instances will apply, at least

in some version, to private companies. Private companies

should take heed now and begin to institute appropriate

changes in order to avoid future problems.

About the Author: Gregory C. Fant is a partner in the Los

Angeles office of Arnold & Porter. Mr. Fant’s areas of expertise

include: Corporate & Securities, Financial Services, Private

Equity and Real Estate.

-submitted by Felice Levine

��

��

��

��

��

SOME DIVA WISDOM:

LADIES - When a cake recipe calls for flouring the baking pan, use a bit of the dry cake mix instead and there won’t be any white mess on the inside of the cake. DIVAS - Go to the bakery - they’ll even decorate it for you!

LADIES - To keep potatoes from budding, place an apple in the bag with the potatoes. DIVAS - Buy boxed mashed potato mix and you don’t have to worry about the potatoes growing arms and legs.

LADIES - Don’t throw out all that leftover wine. Freeze into ice cubes for future use in casseroles and sauces. DIVAS - Leftover wine??


The situation - your lease is expiring in the not too distant future. You like where you are (or maybe not). Is there another location that may increase your organization’s performance and/or save money?

The office building market place may be a lot different today, than when you moved into your current location. In Downtown Los Angeles, in the past two years, approximately half of the 44 nicer Class A buildings have changed ownership. Some new own-ers have got aggressive about attracting new tenants (by offering competitive rents and generous tenant improvements). Other new owners have increased their rental rate (one building is up approximately 25% in the first half of 2004).

This massive change in ownership has been driven by low interest rates and investors seeking an alternative to the stock market. If you are located outside of Downtown Los Angeles, this may have happened in your area as well.

How do you compare different buildings?

1) First, are you geographically in the right location in regards to such things as: commute time, clients, courts and clubs? Also, total occupancy cost (including rent, parking and taxes) should be considered, although it may not end up being the determining factor.

2) Once you have selected your geographic location, for different potential buildings in that geographic area, consider such factors as:

Non-Economic:a. Distance to courts and clubsb. Distance to places to eat and/or entertain clientsc. Distance to the freeway and mass transit stationsd. Does the building have to impress clients, potential

recruits, and/or workers

Economic (total average monthly occupancy cost - including the following factors):e. Rental rate (including any increases)f. Moving allowance g. Free or reduce renth. Parking costsi. Size of suite, which will vary depending on: i. How closely your required office layout matches what is available

ii. The load factor (your pro-rata percentage share of the building’s common areas, such as restrooms and hall-ways –which varies greatly, from 10% to 35%).

Evaluate the above by going through the following steps:1) Determine the non-economic factors you must have2) Establish a budget 3) Determine and then go and look at the best candidates 4) For the candidates that still appeal to you – compare

their total average monthly costs and non-economic pros and cons

5) At any point, you can adjust your requirements. For example, you may decide:

a. It is worth paying more money to be closer to courts and/or the freeway

b. You no longer need to impress clients by paying extra for a fancy lobby.

Do you want a chance to show your boss how valuable you are? If so, when it’s time to renew or relocate, get help doing the above from an Office Tenant Representative. There is typically no charge to you.

Do you want more information? Do you want to receive a monthly email Newsletter regarding the latest that is going on in the Downtown Los Angeles Office Market? You can email me at [email protected] or call me at (213) 270-2233.

To Obtain More Information: Do you have a question or need information about office leasing? Or, are you interested in receiv-ing a monthly email Newsletter regarding the latest that is going on in the Downtown Los Angeles Office Market? If so, you can reach me at email [email protected] or direct phone (213) 270-2233.

About the Author: Scot McBeath is a Commercial Real Estate Broker. He specializes in being an Office Tenant Representative in Downtown Los Angeles plus surrounding areas. He has 22 years of negotia-tion and project management experience, plus a BS and an MBA.

OFFICE LEASING So Many Buildings – Which One To Pick?


OFFICE

OPERATIONS

The (Way) Back Office!J. Mark Santiago

The Recorder 03-29-2004

For years, law firms have turned to outside ven-dors for services that fall under the broad category of “things we can count” -- such as reprographics, mail, messenger and food services.

But now, firms looking to boost profit margins are grappling with ways to outsource more integral or core functions, including information technol-ogy support or help desks, human resources, pay-roll, word processing and accounting functions. This change -- outsourcing not just things that can be counted, but functions that involve direct attor-ney contact -- is a significant development in law firm administration.

Still, it’s not an easy sell. Despite the economic and administrative advantages, lawyers are typi-cally reluctant to give non-firm personnel access to sensitive client and firm information. One solution is to move the firm’s back office functions to a dif-ferent -- and less expensive -- geographic area, net-ting many of the advantages of outsourcing while still keeping the work inside.

In recent years, firms have had more incentives to explore such money-saving arrangements, given the escalating costs of their basic raw materials -- that is, associates.

In the last four years, the $125,000 first-year associate base salary has gone from being unheard of to becoming commonplace to falling below market. This increase has rippled through the entire profession, not just the firms that pay the top dollars. While law firms located in smaller cit-ies generally do not pay their first-year associates $125,000 (plus a bonus of around $17,500), they still have seen their associate salary costs escalate by 40 percent or more in recent years.

At the same time, firms are facing increased demands for new, complex and expensive hard-ware and software to support the practice of law. Office and firmwide computer networks, attor-ney laptops, knowledge management systems, litigation support systems, client portals, e-docu-ment rooms and practice support software are all expensive to purchase, implement and maintain. Recent surveys of law firm expenditures by Huron

Consulting indicate that the average Am Law 100 firm spends more than $20,000 per attorney annu-ally on its IT infrastructure.

Further complicating matters, competition for highly skilled IT and administrative support staff in major American cities continues to escalate. Employers’ demand for “knowledge” workers has led to increased turnover rates and higher pay.

Most law firms can offer only limited promo-tional opportunities to non-lawyer employees and in many instances lack the ability to properly eval-uate individual performance by technical employ-ees. What criteria, for example, would an attorney use to evaluate the efficiency and cost-effective-ness of a computer network? Overall, law firm lead-ers are finding that the effort required to manage many small administrative functions that are not the core competency of the firm (i.e., the practice of law) can be time-consuming and difficult.

Outsourcing more administrative functions presents a possible solution. And for good reasons, outsourcing can deliver numerous financial and administrative benefits to firms that commit to it. In general, outsourcers can provide their services at a lower cost.

Three major factors contribute to their ability to do this. First, outsourcers are usually located in secondary business markets where their oper-ating costs (occupancy, utilities and services) are substantially less than in the major urban centers where law firms are to be found. Occupancy costs in these markets might be on the order of $3 to $5 per square foot. When compared with the $40 or more per square foot that most law firms pay, the advantage becomes apparent.

Second, in the smaller markets where the out-sourcers are located, highly skilled administrative staff fill clerical positions for $22,000 to $25,000 a year -- substantially less than the average clerical salary in a major urban center.

Finally, outsourcers can take advantage of gov-ernment subsidies for job creation or training pro-grams in secondary markets, supported by state or local job-development agencies.


Also, outsourcers typically have contracts with the major software and hardware providers that allow them to lease software and hardware to their clients for much less than most law firms could purchase or lease the material themselves, even when the outsourcers’ markup is included). The outsourcers’ ability to buy in bulk and sell at a discount provides substantial benefits.

Outsourcing offers law firm managers relief from administrative staff recruitment, training and reten-tion issues. Outsourcing the IT, accounting, payroll and benefits functions removes this concern. The outsourcer assumes the responsibility for finding, training and retaining the appropriate staff. Because the outsourcer also provides similar services to other firms, its staff is larger and can be shifted to meet peak demand or fill in for absent employees.

Additionally, because the outsourcer is usually a larger organization than the law firms it serves, the company can offer better career advancement oppor-tunities to its employees.

Yet despite the seemingly overwhelming economic and administrative advantages that outsourcers have, they have made few real inroads into law firms. Why is this? Perhaps the biggest factor is the cultural and liability-related concerns that lawyers have about having non-firm personnel serving their clients.

A potential solution to these concerns lies in a shared service center (SSC) environment. An SSC entails a law firm relocating certain administrative service functions to a different geographic area to take advantage of reduced occupancy, operating and staff costs, as well as leveraging any available govern-mental job-creation and training assistance. The only real difference is that the staff remains as employees of the law firm.

One example is San Francisco’s Orrick, Herrington & Sutcliffe, which moved its financial and technology support jobs to Wheeling, West Virginia, in 2002.

By retaining the staff as firm employees, a number of benefits accrue to the firm that would be lost in a straight outsourcing arrangement. One of the most important considerations is morale. Opting for a shared service center means the firm can avoid mass layoffs by offering existing employees jobs in the new locale. Another benefit to a firm is the retention of historical operating and processing knowledge that no outsourcer can ever replicate. This wealth of “why you did what you did” information can prove essen-tial when least expected.

The decision to retain your own employees to staff

the SSC will result in a reduction in the total cost sav-ings, but the amount will still be substantial.

The major difference is in the cost of benefits pro-vided to the employees. Because the employees in the SSC will remain employees of the law firm, their benefits (and the cost of those benefits) will remain the same. Yet all of the other savings, such as reduced compensation, occupancy and operating expenses, as well as any job-creation incentives, will be realized.

But if an SSC solution is the answer for your firm, how do you go about determining which administra-tive functions should be moved to the center, where the center should be located and what steps are involved in transitioning to the new environment?

The first step is identifying which functions to move. This will enable you not only to determine how large a facility you will need, but also the most suit-able geographic areas (in terms of labor pool, trans-portation and governmental incentives) in which to situate the SSC.

Firms should also use this as an opportunity to identify current service levels, opportunities for ser-vice enhancement and ways to streamline the existing processes and procedures. An analysis is also required of the costs associated with the move and the antici-pated benefits to be achieved. This will enable the firm’s management to make an informed decision about moving to an SSC.

Once a firm’s management has committed to an SSC, the next step is a detailed effort to document those processes to be moved. This effort includes re-engineering each process to take maximum advan-tage of software features and functionality.

The planning effort must consider construction timetables for the new facility, installation and test-ing of new hardware and software at the SSC site, sequencing the functions to be transferred, parallel operations for transferred functions and how long the old functions staff will remain intact at its current location.

Additionally, the transition plans should address relocation assistance, severance bonuses and “stay” bonuses for those employees who have elected not to move to the new SSC but whose assistance will be critical to any successful transition effort.

But by far the most challenging phase of the SSC move effort is the actual implementation. This will require dedicated staff from the law firm including a full-time project manager, multiple implementation teams (usually one for every function to be moved),

continued on page 39


��

o ��

��

��

��

��

��

VENDOR

SPOTLIGHT

CONTACT INFO:Morgan Butler Sales Manager, Southwest Region

(310) 767-5844

[email protected]

COMPANY PROFILE:

Océ Business Services (OBS) is a leading document

management solutions provider, offering complete on-

site management of reprographics, print, mail, records,

and general office services. With our combination of

the most advanced technology, professional personnel,

cost-effective supplies, innovative systems and proven

controls, OBS reduces costs, improves service and elimi-

nates administrative headaches for clients so they can

be more competitive. For more information, contact us

at 1-800-937-2724, X571 or visit www.oceusa.com/obs.

WHAT IS THE MOST IMPORTANT COMPONENT OF THE VENDOR-CLIENT RELATIONSHIP?

OBS people are driven to exceed client expectations. We

are trained to be proactive, to anticipate needs and pro-

vide solutions. These unique advantages have propelled

OBS beyond the industry standard to an advanced

degree in outsourcing, known as Outsourcing 201. That’s

why 50% of our new clients chose to switch from a com-

petitor -- OBS simply delivers service at a higher level.

WHAT CHARACTERISTICS DO YOU POSSESS THAT HELP YOU TO BE SUCCESSFUL?

Passionate People. OBS has the lowest turnover in the

industry and the highest paid employees. We also have

the most tenured operations team. That’s an unbeatable

combination.

Super Achievers. When it comes to outsourcing, our

track record speaks for itself. OBS has more than 20

years of experience focusing exclusively on outsourc-

ing -- it’s our only business! As a result, we have a 90%+

client retention rate and an unmatched competitive

displacement record. Plus, we provide independent,

unbiased equipment recommendations and take a hands-on management approach to ensure success.

WHAT MAKES YOUR COMPANY AWESOME?

Guaranteed Cost Savings. OBS backs up our promises with our contract and guarantees savings upfront and throughout the life of our client relationship. Even bet-ter, 100% of savings are passed onto to clients.

Loyal Employees. All OBS employees are full-time, fully-benefited, with a company-funded pension program, 401(k) plan and unparalleled performance recognition and rewards.

What this means to you is, when it comes to outsourc-ing, there’s only ONE choice: Océ Business Services!

UP CLOSE AND PERSONAL WITH...


The CLImate was Cool in OrlandoReflections of My First Chapter Leadership Institute

by Wendy Sweet, CLM

I’ve spent almost six years on the LA and Greater LA Boards of Directors. I’ve attended the majority of con-ferences, seminars, teleseminars, and meetings offered locally, regionally and nationally by the Association of Legal Administrators and other educational entities. I think I just attended the most valuable conference so far, and that’s saying a lot because I consider the majority of programs ALA offers to be highly valuable.

The value of the Chapter Leadership Institute (CLI) was different from the others because it wasn’t focused on how I can do my job better at my law firm, but rather how I can do my job better as a leader of the Greater Los Angeles Chapter. The information I gleaned at this conference will help me make our Chapter better as I progress through the roles of Vice President, President-Elect and ultimately President of GLA.

The conference began with one of the best keynote addresses I’ve heard so far, not just because the speaker was engaging, but because the information he delivered was practical and useful. Mark Levin, CAE, CSP, gave us “21 Great Ideas for the 21st Century ALA Leader.” The ideas involved common sense ways to engage our Chapter’s members and also ways to better serve those members. Luci Hamilton, Brian Robbins and I plan to share these ideas with our fellow Board members and through implementa-tion, trust that the Chapter will run noticeably smoother and more efficiently. I think we have an awesome Chapter and the Board is comprised of intelligent, dedicated legal administrators. There are things we could be doing better and I hope when you do notice changes you like (or don’t like), you’ll say something to one of us. Additionally, if you have suggestions or observations, send us an e-mail or pick up the phone. We really do want to hear from you. This is your Chapter and you help to make it dynamic.

We met with our Region 6 Officers, Erica Tamblyn, Jeanne CaBell, Shawn Derfer, Joyce Patrick-Bai, and Patti Groff (At Large Director), and discussed items specific to our region, such as our upcoming conference in Century City this October. We compared notes with other Chapter leaders about what’s working well in their Chapters.

Each Region arranged for their own networking dinner and we had an opportunity to get to know several leaders from other Chapters in our Region. These are leaders we can all turn to if we need advice on issues involving our Chapter or our firms. ALA is the best networking organi-zation I’ve ever been a part of and that’s because it’s made

up of people who are happy to help others do their jobs better.

We then heard from several of National’s officers and staff. They walked us through the many benefits we as members can take advantage of. The Association of Legal Administrators holds itself to be The Source of Legal Management Information and Knowledge®. The ALA offers a variety of tools on their web site to assist us in our day-to-day jobs and with the special projects assigned to us by our firms’ leaders. I encourage each of you to sign up for the Members Only section of alanet.org. If you’re not already a member, you’re not able to see 50% of what’s available on that web site including the Legal Management Resource Center, which is an extensive database of articles and information covering all facets of legal management.

Next, we broke out into separate sessions and I attended one on Chapter Communications Tools such as Web Sites, Listserves and Newsletters. I came away with a great deal of valuable information and plan to implement some of the ideas during this term.

We also broke out into groups based on Chapter size. With almost 350 members, we were among Chapters such as Puget Sound, the Capital Chapter, New York, Atlanta and many others. We broke down further into topic groups and then shared ideas on subjects such as ways for our Chapters to become involved in our respective communities.

After an evening at Universal City Walk, we started early the next day with a panel of Certified Legal Managers shar-ing their personal experiences regarding studying for and taking the Certified Legal Manager (CLM)SM examination (two of them took the test three times before passing and are happy they didn’t quit trying). They also addressed many of the questions encountered by members who decide to study for the CLMSM exam either personally or within a study group. Finally, they explained how the test is administered and graded, what ALA can and cannot do to help prospective exam takers, and what type of programs qualify for credit towards the educational prerequisites.

On a side note, I was honored to be acknowledged as one of the 29 new Certified Legal Managers. There were four of us at the conference, including our neighbors from the Orange County Chapter, Kim Niccoli and DeAnna Parker, and we were each presented with a plaque certificate and CLMSM pin. Being there among people who understand what it took to study for and take the exam was exhilarating. I felt very respected and proud of myself. I also feel proud


of the high level of education our Chapter has been able to offer our members through the Certified Legal Manager Study Group and I encourage all of you to at least consider joining the summer Study Group. Even if you are not sure you want to take the test, or you know without a doubt that you’ll never take the test, the educational value you’ll walk away with is amazing. An added bonus is the camaraderie you’ll experience while studying. Our study group covers all aspects of legal management and you may just want to brush up on those areas in which you need refining or have yet to learn. The individual classes are open to all mem-bers, not just study group registrants, so if you only want to attend one or two, that’s okay.

We also heard from ALA’s Executive Director, John Michalik, and he had a wealth of information about the legal, tax and insurance issues of which every Chapter must be aware. I always enjoy reading John’s messages in the various magazines we receive from National and I hope you’ll look for them when you receive your next issue of ALA News or Legal Management.

The Association’s President, Bill Migneron, gave us insight into what it takes to be a leader in this organiza-

tion and how being involved has benefited him person-ally and professionally. Something he said at the end of the conference really hit home to me. This is something I’ve often felt but never put words to. He said that the ALA has given him “an opportunity to practice leadership in a safe and supportive environment.” I hope that by restating Bill’s message here you will be inspired to become involved in your Chapter. If you too want to “practice” your own personal leadership skills, why not start today? Though we may not have had a chance to ask you personally, the Chapter’s Board knows many of you may want to become more involved. Whether you have a few minutes or hours there are a variety of ways for you to participate, from serv-ing on a special projects committee, contributing to the newsletter, or becoming a member of the Board, just to name a few.

Volunteering in this organization has greatly enhanced my professional skills and has helped to build my character. I cherish the people within the organization with whom I have become close. They are my good friends. They help me to shine in my job. They allow me to practice my leader-ship skills in a very safe and supportive environment.

ALA President Bill Migneron

CLI Sponsor Denise Burley of

Robert Half Legal

DeAnna Parker, CLM, Jeanne CaBell, Shawn Derfer, Kim Niccoli, CLM

Region 6 Team: (from left to right) Erica Tamblyn, Patti Groff, Shawn Derfer, Joyce Patrick-Bai, and Jeaanne CaBell.

CLM Panel, led by CLMs-Ray Lightell, Dawna Brophy, Dick Nigon, Martha Llano, Patti Lane and Patti Groff


��

��

��

��

��

Keynote speaker Mark Levin, CAE

GLA Board Members Luci Hamilton, Wendy Sweet, CLM, and Brian Robbins

ALA Staff Members Janet Douglas and Jay Strother

Kim Niccoli, CLM, Steven Morris, CLM, Luci Hamilton, and Wendy Sweet, CLM

ALA Executive Director John Michalik

Region 6 Group with Jan Waugh (Far Right)


many status meetings and numerous midcourse cor-rections to the original implementation plan.

While the implementation effort will require a great deal of hard work on the part of everyone involved and challenge even the most seasoned of law firm administrators, it will amount to some of the most rewarding work you will ever undertake. At the conclusion of the effort, your firm will have posi-tioned itself to better serve your clients and partners at a substantial cost reduction.

About the Author: J. Mark Santiago is a managing director at the Huron Consulting Group, where he spe-cializes in working with law firms.

Article originally printed in California Legal Pro. California Legal Pro is written for legal professionals such as legal administrators, librarians, secretaries and marketers. Published quarterly by The Recorder, San Francisco’s leading legal newspaper, California Legal Pro includes practitioner-written pieces that focus on how legal professionals contribute to the suc-cess and profitability of their firms.

Members of ALA qualify for a complementary subscription. To request yours, email [email protected].

��

��

��

��

��

Back Office - continued from page 33

We buildrelationships .

641 W. LAS TUNAS DRIVE / P.O. B OX 1509 / SAN GABRIEL, CA 91776 -15 0 9

PHONE FAX E-MAIL

(626) 943-2200 (626) 299-1010 [email protected]

I n s urance Services for the Legal Profe s s i o n

CCC Macro ProThe �� MS-Word® Macro Package for Law Firms

� ��

� � � � � � � � � � � � � � � � � ��

or call Eric Crowther at 310-390-9650


� ��

� � � � � � � � � � � � � � � � � ��



� ��

� � � � � � � � � � � � � � � � � ��



In this month’s issue we chose to highlight one of our own administrators for the “Leaders Past and Present” article. Jan C. Christensen, the Executive Director of Silver & Freedman, has over 20 years of experience in the legal field and has served in the positions of Executive Director and Chief Operating Officer for several firms. Jan received her Bachelor of Business Administration with majors in Business and Spanish from Georgetown

University. She has studied Business, Tax, Compensation and Benefits Design at the graduate level and has written several publica-tions regarding legal administration. Jan has lectured at the University of San Diego and has participated as a speaker in various seminars for the Association of Legal Administrators and in other organizations in San Diego and Los Angeles. Jan was willing to discuss and share her invaluable business and law management expertise with administrators throughout Los Angeles.

Steven: Talk about your education, life and professional experiences which helped you become a successful administrator.

Jan: My college education has been very helpful in opening doors, but it is my cumulative education in the “school of hard knocks” and my hunger for continual learning that enable me to make more good decisions than bad ones on a day-to-day basis. I have also learned that it is vital in the busi-ness world to be pro-active, to listen to our “inner voice” on ethical or moral issues, and to believe in ourselves. Once I was freed from the fear of losing my job because I knew that my training and experience would ensure that I could always find a job, I was better able to perform at an advisor level.

Steven: How do you handle things when you have too much on your plate?

Jan: Prioritize, prioritize and prioritize!

Steven: How do you handle difficult people?

Jan: Of course, each situation is different. Sometimes a difficult person just needs a little empathy, to feel that someone understands them and their issues. Experience has taught me that sometimes humor can diffuse a lot of difficult situations. Sometimes, when all else fails, “drawing a line in the sand” and just saying “NOT ACCEPTABLE” at least preserves my own self-respect.

Steven: What are your thoughts on specialties and generalists as administrators?

Jan: I think that good business managers must be generalists to some degree. We have to know enough to ask the right questions of vendors and those who report to us. We need the general knowledge to get specific answers that are unique to our organization and that fit the overall strategy of the firm.

I came from a Controller, Financial Manager background; but I found that I needed leadership training, human resources skills, a broad understanding of technology, and even a stronger foundation in business law to effectively run a law firm.

Steven: Should administrators have business management skills or take courses in business management so that they understand the concepts of developing strategies?

Jan: Yes. Administrators need to have respect for the profession of law but also advanced business management skills for the business of law. I am afraid that one of the most basic skills for our field is often overlooked in our educational pursuits. Administrators can greatly benefit from learning coaching skills. We aren’t generally hired to run the law firm. Our roles are to assist the person or persons who are delegated to lead the firm.

Managing Partners and Executive Committees need our input on many issues. Our coaching may sometimes take the form of making them think that our idea is their idea because of the information we provide. Sometimes it’s helping them develop their own strengths. Sometimes it’s ensuring that everyone keeps their focus on the strategic visions or core values of the firm. Pro-activity in identifying and preventing or correcting issues may not be accepted without the coaching of established leaders to embrace these vision and goals.

Steven: So, we have to be able to recognize what’s best for the firm, even

though the partners are saying we should do something else?

Jan: Exactly. To do that, sometimes it means going outside of the pro-fession. I’ve always felt that law firms require of their administrators an expertise from a management or entrepreneurial perspective. There are lots of valuable business management ideas and tools that originated from entrepreneurs and corporate America decades before being embraced by law firms. Whether it is reading INC. Magazine, Harvard Business Journal, or The Wall Street Journal, there are many business techniques which can be applied to a law firm environment.

Our firms have a tendency to say, “What is the other firm doing?” instead of saying, “What can we do to separate ourselves from the pack? What can we do to distinguish ourselves?” Administrators have the opportunity to intro-duce their firms to innovative and creative business solutions to business problems.

Steven: Would you say that you have to be aware of what the other firms are doing to be able to separate yourself from them?

Jan: To some extent, yes. But, even if the other firms have not started to use this or do that, it is important to find greater efficiency, cost-effective-ness or collaborative solutions for clients as well as operational issues.

It’s important to think ahead and be able to predict problems before they occur. Whether an idea is being used by another law firm or by a clothing manufacturer, the questions are: How do we prevent this? How do we solve this? How do we cure this?

Law firms are first and foremost a profession and, secondly, they’re very much a business. To be successful in the long run, administrators, along with firm leaders, must apply business management rules to our opera-tions.

Steven: How do you accommodate attorneys who insist on creating their own procedures that deviate from the operations of the rest of the firm?

Jan: That’s more to do with the culture of an organization and the shared visions of its strategic plan. Dissidents (those who don’t follow rules) need to understand the advantages of leverage. They need to be coached to see how they can practice in the most time efficient and cost efficient way and how it benefits them personally. Sometimes it’s a matter of saying, “I know what you want to accomplish, but I think it would be more cost-effective overall if we accomplish it this way.”

One of the problems I have found is some attorneys have a tendency of tell-ing administrative people, “Well I want you to do A, B, C, D”. And I’ll say, “Time out. What are you trying to accomplish?” “ Well I want…,” and they tell you what they want. I say “Okay. You’ll have it by 9:00 in the morning.” What attorneys do know is what they need. Fill that need and most attorneys do not really care how the administrator makes it happen.

Steven: Describe the working relationship between you and the managing partner.

Jan: My managing partner backs me 110 percent. If I believe that he is wrong, he encourages me to tell him. He relies on my advice and recom-mendations very heavily. We share similar values and a similar vision for our Firm. It is his trust in my judgment and in my opinion that inspires me

“Administrators can greatly benefit from learning coaching skills.” – Jan Christensen


to read 9 to 15 publications a month, to attend ALA training programs and to have the courage to be wrong, knowing that I make more good decisions than bad.

The bottom line is, we both have a great deal of respect and trust for each other. We can have animated disagreements about issues or strategy and still walk away the best of friends.

Steven: Prior to working with law firms, did you have any experience with growth, mergers, and acquisitions, and how did you facilitate the process in relationship to the firm’s employees?

Jan: I had no experience with mergers but a lot of experience with busi-ness growth and the accompanying issues. Prior to joining law firms I had not used consultants although I was a business consultant.

As to the issue of employees adjusting to merger situations - a lot is just understanding human nature. I “kid” our attorneys that if I’d known I was going to end up in a law firm, I’d have spent a lot more time in psychology courses than in business courses. To a large extent employee reactions to growth, merger, or change, in general, is simply handholding and cajoling, making the employees aware that they have an impact and that they have some control.

There are things that are really important to every person, from the office services person to the most senior attorney in the firm. They want to feel like they have some control over their environment, over their future. Part of our jobs is to give people some element of control, to let them see that they’re part of a picture that’s bigger than they are. We have to try to get them to keep their focus on the “big picture.”

We are in a wonderful “business”. There is something that comes out of what we do that’s really better than any of us get to see because we’re looking at the minutiae rather than the overall accomplishment. There’s something pretty special about justice. There’s something pretty special about good guys finishing first instead of last. Our firms make a positive impact on society and on the lives of others. If administrators can help our people see that the rewards of the job are more than a paycheck, the staff are bet-ter equipped to handle the discomfort of change, and to feel like they have some control.

Steven: During a merger or acquisition process we have to facilitate the change. What is your advice on helping others through this change process?

Jan: I think it’s difficult, but you have to feel the pain of the people who are going through change. Change is one of the scariest things for any human being to deal with. How can we make change easier? By showing we have that empathy for the fears, by providing a lot of information, by involv-ing others in the process, by letting them know that they’re not alone, and that there is a light at the end of this dark tunnel of pain.

Mergers and acquisitions can work well for everyone if they happen for the right reasons and the “homework” was done up front. To be success-ful, there has to be commonality of purpose, ideas, goals, and objectives. Understanding and coaching to reinforce the objectives of the process can go a long way toward ensuring the success of a merger or acquisition.

Steven: As an administrator, what can you tell us about understanding a person’s motivations?

Jan: What I do during the first six months at any firm is to have lunch with every partner at least twice, and just let them talk. I ask leading ques-tions and then sit back and listen. I repeat the process with associates and in small group meetings with the staff.

After the conversations, I conduct blind surveys with slightly different ques-tions for partners, associates and staff. Since there are no names on the survey, they are more likely to answer the questions truthfully I use these surveys to develop the agenda for the first partner retreat and to formulate changes throughout the firm.

A large part of our jobs as administrators is understanding the motivations behind the complaints, fears, and general employee morale which come to our desk.

Steven: As an administrator, do you have managers for specific areas?

Jan: Yes. I have an IT manager, an accounting manager, and an HR per-son. But I didn’t when I started. When I started, the firm was nine attorneys. Now we’re 32 and growing.

Steven: Do you coach your employees as well as your managers?

Jan: Yes and no. I coach my managers and a few attorneys but unfortu-nately don’t have the time to interact with the other employees as much as I would like. If we were a 200 or 2000 attorney firm, I would not have the opportunity to coach as much as I would like. But right now, I can coach my managers on being successful, and sometimes that’s helping them figure out how to deal with problems they encounter.

Steven: What advice do you have for administrators seeking a more challeng-ing environment with a larger firm?

Jan: I am not certain that larger firms have a more challenging environ-ment. I think there are challenges within all size firms that perhaps admin-istrators have not identified. There are things that administrators can do that will make the firm more profitable or make it expand.

I spend a lot of time in marketing, business development, and a lot of time interviewing potential lateral partners. There are lots of challenges that some administrators haven’t considered taking on. I was still doing some consulting with other law firms when I came here to work with this nine-attorney firm. The only reason I joined this firm was because of the manag-ing partner. He was very impressive, a smart guy who spent a lot of time focusing on law management, studying it and working at it. He was open to bringing in someone who would take responsibility and make things hap-pen. I was willing to accept that challenge. Ultimately, by the end of the first year, I had to give up other clients because the challenges here were exciting. I have had to approached my job at Silver & Freedman as another consult-ing project to stay objective and identify the tasks that needed to be done to meet the objectives of our people.

I believe that this is true for every legal administrator. We can all look within our firms, where we are today, and see the things that we can do to improve the firm. This process in and of itself can lead to better opportunities, jobs or even organizations. The more visible a person is in the community and the more people we talk with, the more people will know us. Eventually, oth-ers will say, “You ought to talk to this person, he/she really knows her stuff. Our reputations are built on our accomplishments where we are right now; rather than moving to another firm to accomplish more.

Steven: What are some of your current accomplishments as administrator?

Jan: My primary focus has been to grow the firm. When I joined the firm, we had a strong client base but were not able to attract the kind of attorneys we needed. I have worked very hard to increase our Firm’s visibility in both the legal and business community. We have been able to increase profit-ability by increasing our leverage and realization. We have added depth and breadth to the services we offer clients and have used client feedback to achieve economies and efficiencies for the clients.

Steven: What advice would you give in general to the legal administrator?

Jan: I would tell an administrator that you are not going to accomplish a goal that you don’t set for yourself and develop a plan to work toward it. Know what your objectives are and develop a yardstick to measure your progress.

Maybe you say, “I want to earn $150,000.00 by the year 2007;” and you’re currently making $90,000.00. What can you do to reach your objective? The process is learning what you want, developing a realistic time period, then setting interim steps that will help you accomplish that objective. Maybe the interim steps are getting your bachelor’s degree. Maybe it’s completing your master’s degree. Maybe it is going back to school and getting 24 or 40 hours credits in accounting. It’s going to vary. Maybe you take a look at your firm and say, “If I were able to take over as the business development person for this firm, I could help them double their income and I could make $50,000.00 more than I’m making now.” Maybe it’s getting a CLM; maybe it’s something else.

My only other piece of advice would be to feel good about the daily accom-plishments. Most administrators really do an astonishing job of multi-task-ing and solving extraordinarily complex and diverse problems on a daily basis. Perfect your technical strengths in an area that you really enjoy so that you have confidence that your skills are transferable even if you need to leave the legal field entirely.

“Administrators can greatly benefit from learning coaching skills.” – Jan Christensen


FINANCE SECTIONFinance Section Meeting – May 25, 2004Section Leader: Brian RobbinsTopic: Law Firm Tax Issues Presenter: David Roberts, RBZ LLP Location: Offices of Akin Gump Strauss Hauer & Feld LLP (Century City) Approximately twenty-five (25) members of the Finance Section met at the offices of Akin Gump et al to participate in a presentation by David Roberts, partner with the accounting firm RBZ, LLP. The speaker covered the differences in tax treatment afforded different types of entities (e.g. partnership vs. corporation), the principal tax forms (e.g. 1065 vs 1120), M-1s (permanent and timing differences) and their significance to book and taxable income, and

estimated tax requirements and due dates. A detailed set of handouts was provided.

C

H

A

P

T

E

R

N

E

W

S

HUMAN RESOURCE SECTIONHR Section Meeting – May 25, 2004Section Leader: Jeff KrakauerTopic: Effective CommunicationPresenter: Tarane Sondoozi, Psy.D.Location: Burke Williams & Sorensen, LLP, hosted by April Van WyeGuest speaker, Tarane Sondoozi, Psy.D., she gave a presentation on “Effective Communication” she helped teach participants about the “WHYS” of management…she also explained that most management trainings focus on the HOW of management or interpersonal interactions, and unless we understand WHY we are engaging others in the manner that we do, the change will be temporary. The next HR Section meeting will be held on Tuesday, July 27, 2004 at a Westside location that has not yet been confirmed.


��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��


First Class MailUS Postage Paid

Pasadena, CA Permit No.648

��

��

��

��

��

��

��

GREATER LOS ANGELES LEADERSHIP EXCHANGE • WWW.GLAALA.ORG

www.glaala.org • www.alanet.org

Wendy S. Sweet, CLM @ Andrews Kurth LLP 601 S. Figueroa Street, Suite 1725 Los Angeles, CA 90017-5722

leadership exchange - gla, alaglaala.org/clubportal/clubdocs/194/august 2004 leadership...engaged in...

Documents