A Practitioner's ExperienceLooking on the brighter side of things is the 'moral' of this article; the recession doesn't always bode ill for a law firm, positive things may be gleaned from the downturn. Read on for a glimpse of the sunny side to life in an economic crisis.
'Hi! How are you? Are you busy?'
Answer 'Yes' and you get an envious reply:
'Oh, you're so lucky, means good business, huh?'
'Not true, just more paperwork.'
'But that means more money!'
This is the usual exchange of greetings nowadays, not just amongst lawyers but almost inevitably with anyone we meet.
This seems indicative of the hard times that we are now facing: less work and, therefore, less income. Thus, if you still have work, then it means you still have income flowing in. This equation of work with income is no longer true today. Perhaps it is precisely because there are fewer new cases to do nowadays and existing clients with outstanding matters do not want to agree readily to any proposal to resolve matters expeditiously, thus leaving us with more time to prepare another affidavit if they are insistent. Unfortunately, this often does not mean that lawyers will be able to command a higher fee for the extra work done. All good lawyers know that if another affidavit is absolutely necessary to tilt the balance in their clients' favour or at least put their clients on par with the other parties, fee is never a consideration.
No one believes that lawyers too suffer in an economic downturn or a recession. It is a myth that lawyers are recession-proof. The truth, as all lawyers in practice would know, is that lawyers are amongst the first to be adversely affected. Legal fees are always strenuously bargained, regardless of whether it is controlled, such as scale fees in property matters. Quotations are often compared and more pressure is then applied to cut the pitiable fees further, especially by organisations that hold out promises of giving certain volumes of work if the fees are 'just about right' to them. Caution against undercutting is thrown to the wind because it is survival that matters, and those who stick to their fundamentals are called dinosaurs who will be out of business very soon because the mindset has not changed.
I guess I am a dinosaur but I am not about to prove my critics right when they predict doom. There are, in fact, many ways of trimming costs but not at the expense of quality of service or opportunities to staff. The first place to start is with myself. Cut down the number of credit cards; this is the surest way of cutting spending because of the reduced chances of buying on credit, and an additional incentive to pay my bills on time before the penalty and interest rates kick in. I drive only when absolutely necessary; otherwise if time and venue permit, I take the bus or MRT or hitch a ride when there are kind souls around to offer me a free ride. I have learnt to tolerate the curious stares of people who recognise me when I take public transport: I reciprocate with my dimpled smile. I also eat packed lunches or at coffee shops and hawker centres with no air-conditioning when I do not have to socialise. I am not a trendy person; in fact, I am sloppy in my dressing. Thank goodness for the black and white dress code imposed on lawyers going to court; it gives me an excuse not to dress up fashionably in the manner befitting or expected of my profession!
Cutting down on staff when the going gets tough has never crossed my mind. In fact, it is during such times that my staff have more time, so I sign them up for training courses or any other courses that they fancy. They are also trained to do spring cleaning on their own, checking old files and freeing up unused stationery for recycling, chasing long overdue bills and giving suggestions that are in the interest of the firm. It is never easy to train staff to become an integral part of my operations. Letting them go just because times are bad may cut spending but it is a wrong decision. Not only am I doing myself a disfavour, I will also cause them financial hardship by the termination and they may not be able to get a new job quickly enough. When things get better and I need more staff again, I may not be able to lure them back because they may have commenced work for others. I would, therefore, have to start training new staff and this takes time. In fact, if there is a suitable candidate, I would take him/her in to train first because when the economy picks up again, I will be ready as well, provided of course that my trained staff reciprocate my kindness and will not leave me for greener pastures!
Actually, bad times are also the best times to brush up my rusty knowledge of the law and catch up with the changes that have taken place. It is also a time to get in touch with former clients, ex-colleagues, classmates and others that I have not contacted for so long because of work. I also have more time to interact with my staff and pay extra attention to their needs.
I now have more time to learn about e-commerce, e-mailing and anything that starts with an 'e', especially the much-dreaded 'EFS'. I also use this time to review my apparatus and office equipment, check their condition and evaluate their usefulness. In bad times, many suppliers dump their goods and this is actually an opportune time to pick up some real bargains.
Simple thrifty practices, such as switching off the lights in unused rooms or turning off the computers and printers during lunch breaks are also common-sense practices that tend to be forgotten when times are good. I recycle my used stationery, print on both sides of the paper and reduce as much wastage as possible.
The list is endless and I just realised that if I go on babbling on my laptop, I might just be wasting too much electricity!
An important lesson that I have learnt from the last recession in the mid 1980's is this: Bad times are not to be feared, as in all bad times, new opportunities are waiting to be discovered. I have to be realistic in my expectations. Honesty and patience, coupled with a determination to provide consistent, good quality service and strong integrity will eventually win the day for me. Try it and good luck!
Ellen Lee
Ellen Lee & Coers