Practice Management

An AI prompt defines a specific task for AI to perform, like drafting a particular document, and provides clear instructions on how to execute that task. The goal is for the AI to quickly create a useful first draft of a document, which the user verifies and refines into a final version, ultimately ...

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Costs

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It is worth noting that the psychology and the character of all organisations flows from the principals, and no way of running the firm will work properly unless the principals are committed to it. Similarly, the commitment to learning and expanding the knowledge base of the practice comes down to ...

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Principals of small law firms wear many hats. They may be a sole practitioner, in which case the hats are all piled on top of each other, or they may be partners in a partnership or co-directors in an incorporated legal practice, in which case the hats are shared around. A principal is chiefly a ...

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Policies and procedures The foundation for management of the business of a legal practice is to have policies and procedures which record and effectively automate the firm’s operations.

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The importance of managerial controls cannot be overstated. They provide the basis of profitable and low-stress practice. Profit is not necessarily related to size or location or how busy a firm may be. Research shows that busy firms are often poor profit performers due to poor managerial ...

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Privacy Act requirements The Privacy Act 1988 (Cth) provides for mandatory reporting of eligible data breaches. These requirements apply to data held by an Australian privacy principles entity, or a credit reporting body, or a tax file number recipient.

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File notes File notes are a critical item in terms of risk management. Without effective file notes, the file is incomplete, and the practice is exposed. File notes must record what happens on a matter, what instructions are received, what advice is given, and what actions are taken. They represent ...

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Firm documents Documents including letters, precedents, and pleadings need to be standardised for consistency and to save the effort involved in constant re-invention.

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Research by the University of South Australia concluded that the cost of being a bad place to work outweighs the cost of paying above-average wages and providing excellent conditions, including training opportunities and flexible work practices. Unhappy employees have high levels of absenteeism, ...

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Staff costs are the most significant overhead for any law firm, so recruitment must be given due priority and adequate resources. It is a false economy to save money on recruitment if that means costing the business time and money later by reason of internal disharmony, poorly performing team ...

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The firm should have an induction policy and procedure. When a new employee commences at the firm, it is an opportunity to cement the relationship from the start and show them that they are joining a well-run organisation within which they are highly valued.

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Employees need a clear career path, one that may lead towards partnership or towards undertaking work with more responsibility. It may be to learn new skills by attending training courses. Not everyone needs to be aiming for something completely life-changing all the time. As long as there is a ...

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In all states and territories of Australia, legal practitioners are required, as a condition of their practising certificates, to participate in compulsory professional development and training. Although the requirements are reasonably uniform, the terminology differs. In some states, the ...

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Employers have a duty of care at common law and also statutory obligations to their employees. Legal practitioners have additional professional obligations to uphold these and to act appropriately towards employees. Government authorities in each state provide substantial assistance, including ...

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An internet usage policy will assist all members of a legal practice to understand and be clear about the firm’s rules and guidelines in relation to the use of equipment, the office network, and the internet itself. Such a policy protects the firm as well as the employee. As a starting point, ...

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Bullying Bullying is a workplace health and safety issue.

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The review of staff performance requires careful attention by the principal or by any appointed manager. Employee reviews should be:

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For some people, especially young lawyers, their career path will probably take them out of the firm. It must be accepted that sometimes, no matter how well employees are treated, no matter how highly they are valued, they need or want to move on. Although it can be frustrating as a principal to ...

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The relationship between solicitor and client is multi-layered. The fundamental basis of the relationship is the retainer, which is essentially a contractual relationship that may be evidenced by a written document, oral agreements, or implied conditions. In addition, the proximity of the parties ...

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The Australian Consumer Law, found in Schedule 2 of the Competition and Consumer Act 2010, is generic consumer protection legislation. The Legal Profession Uniform Law (NSW) and the rules made pursuant to it are specialised consumer protection legislation aimed solely at regulating lawyers and ...

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Solicitors receive many enquiries from potential clients, some of which result in opening a file and a matter proceeding, and others that do not. It is important to record any initial conversations with potential clients and retain file notes and emails whether the client proceeds to instruct the ...

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An actual conflict of interest between solicitor and client is in breach of the solicitor’s duty to the client. Such a conflict may arise directly, where the personal interests of the solicitor conflict with the interests of the client, or indirectly, where the interests of another of the ...

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A solicitor may be liable to a third party for negligence if a duty of care can be established. This will be so even if no retainer can be established: Vagg v McPhee [2013] NSWCA 29. A third party who relied on a representation by the solicitor that the solicitor was acting on behalf of the client ...

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It is professional misconduct to lodge a caveat on behalf of a client unless the solicitor is reasonably satisfied that the client has a legitimate interest in the land. It is not sufficient that the owner of the land owes money to the client. This does not create an interest in the land, for ...

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Solicitors must make any payments from their trust account by cheque or electronic funds transfer: s 144 of the Legal Profession Uniform Law (NSW). Great care should be taken when receiving payments in cash. Failure to properly declare and account for cash puts the practitioner at risk of ...

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Solicitors must be very cautious when receiving funds from a client when there is reason to believe that those funds may have been unlawfully obtained. Dealing with such funds may amount to the crime of money laundering: R v Lustig [2004] VSC 483.

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Money laundering is a serious crime and poses serious potential risks to law firms. The firm’s anti-money laundering policy should ensure appropriate procedures are in place to reduce the risks of:

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The fundamental rules relating to costs are set out in Part 4.3 of the Legal Profession Uniform Law (NSW) and Part 6 of the Legal Profession Uniform Law Application Act 2014.

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Communications between solicitor and client are privileged if the communication was confidential and made for the dominant purpose of giving legal advice or use in existing or anticipated legal proceedings. Privilege may exist under either common law or the uniform evidence law where applicable. In ...

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The ethical obligations of lawyers are based on the obligations assumed by all members of a civilised society and extended because of the special relationship that the lawyer has with society as a member of the profession which establishes and administers society’s laws. An obligation to practice ...

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The lawyer’s ethical duties can be divided into three categories:

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The existence of an ethical issue will often be self-evident. The vast majority of lawyers will feel a sense of unease when an ethical issue arises, even if, in the early stages of development of that problem, they cannot identify the exact nature of the problem. Experience provides that the best ...

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The flexible nature of LEAP allows firms to open specific matters to administer firm practice management and compliance issues. Managing the actual business of the firm in this way provides for readily accessible information, all in one place, and restricted to relevant members of the team as ...

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The Legal Practice Health Check Self-Diagnostic Tool is based on a Lawcover Risk Management Health Check developed to reflect risk scenarios drawn from actual professional negligence claims against solicitors and has been developed and expanded on with Lawcover’s permission. The first step for ...

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Leadership is the key. If the strategic framework is developed only as a hypothetical standard or a management tool and is not driven by the principal and the leadership team, the result is more likely to be cynicism, poor morale, and negativity. The firm’s performance and purpose will suffer if ...

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It is essential to have a business plan. Failing to plan is planning to fail. After using the Legal Practice Health Check Self-Diagnostic Tool found in the A. The business plan folder on the matter plan, the next step is to incorporate the data it provides into a business plan for the practice.

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Everything the firm does Branding and marketing are part of everything a firm does. It is not a separate function or someone else’s responsibility. A firm has thousands of opportunities to connect with clients each year:

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Within the legal practice, the fee earners must be assessed for their contribution to profitability. Key performance indicators can be used as benchmarks. These might include file volume, file velocity, the quality of the work, contribution to client relationship management, and development or ...

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Currently compulsory contributions are to be made for employees, and these are presently payable as a percentage of the gross wage. See the Australian Taxation Office’s current rates of the Super guarantee percentage. An employee is eligible if they:

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An asset register allows for the tracking of fixed assets from purchase through to disposal and provides an estimate of their worth. It assists with taxation, insurance, and potential sale of business compliance. It provides an appropriate place to record detailed information, for example, serial ...

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The origins of double-entry bookkeeping Luca Pacioli was born in 1445 and was a good friend of Leonardo Da Vinci. A learned fellow, Pacioli wrote and taught in many fields including mathematics, theology, architecture, games, military strategy, and commerce. He is described by many as the father of ...

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It is important that good accounting computer software is purchased and the firm’s records maintained by a competent bookkeeper or accountant. The most popular computer software programs in use by small business today are Xero, Quicken, and MYOB. Prior to selection, it might be wise for the ...

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