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The official newsletter of the ALA Metropolitan Detroit Chapter Volume 12, Number 2
Summer 2019
T L LT L L
In This IssuePresident’s Report ..................................... 3Announcements ........................................ 4What the ALA Means to Me .................... 5ALA Calendar ........................................... 6Do You See the Forest from the Trees? .. 7Are Your Accounts Receivable a Problem for Your Law Firm? .................. 9Seven T-A-C-T-F-U-L Strategies ......... 122019 ALA Conference & Expo ........... 132019 Business Partners ........................ 16Embezzlement Happens! ..................... 17Are You Guilty of Committing Email Sins? ........................................ 18Monthly Spotlight on Diversity & Inclusion ........................ 19What Does Leader Mean to You? ........ 20Diversity & Inclusion Statement ......... 21Newsletter Chairperson’s Corner ......... 22ALA Code of Professional Responsibility .................................... 242019/2020 Officers & Leadership ....... 26
Volume 12, Number 2
Summer 2019
Summer 2019 • 3
W o w ! I think I’m still in shock that I am your P r e s i d e n t of the ALA
Metropolitan Detroit Chapter. Following a wonderful leader, Ronda Harris, will be a challenge for sure, but I will strive to continue on with all of the great work she did as last year’s president with the support of a fantastic board. Fairness and transparency, as she aptly put it. We will continue to meet that goal!
Our goal as a board in 2019 – 2020 is to serve our members, serve our community, and support each other as Legal Administrators and professionals. We are excited to share new ideas, work together on new projects, and really finding out what our members want out of their membership.
For anyone who has not checked it out yet, the ALA Detroit web site is up and running. We are now able to send invites to Chapter meetings and members can register right from the web site. Our Events calendar and information about our Business Partners can also be accessed from the home page of the web site. Look for the changing photos and diversity quote in the banner. We’ve kept it simple with information you need readily available. If you don’t have it as one of your favorites, please add: https://
aladetroit.org. Like and send us feedback on our Facebook account, https://www.facebook.com/ALAMetroDetroit/ or tweet about us @ALADetroit. You can also visit us on our LinkedIn account.
This year the ALA Nationals was held in Grapevine, Texas. The topic of the conference was New Frontier in Legal Management. Our Chapter had 12 people attend the conference (photos and board member experiences to follow). We donated a beautiful bracelet complete with a Texas charm to the Silent Auction. We were once again given the Presidents’ Award of Excellence. Dana Hagemann was nominated for the 2019 Quest Award. And, Melissa Clark is serving on the IDEA Awards Project Team. As always, this was a wonderful experience for all who attended and everyone seemed to get something different from conference.
As of May 28, we now have 80 m e m b e r s ! What a great accomplishment for the Chapter to not only keep the 75 members we had this time last year, but also to increase it by 5. Let’s keep rolling, sharing with others what a great Chapter we have and educating other
administrators about the benefits of being a member of Metro Detroit ALA Chapter.
We also have 27 Business Partners. Our Business Partners are so important to our Chapter and we are grateful for their financial support, knowledge, and partnership. Please make sure you check out the Business Partners on the web site when you are looking to fill a business need from storage, office supplies, business insurance, recruiting, etc. Our BP’s cover it all!
Please feel free to reach out to me anytime with questions or suggestions. My e-mail is: [email protected]. I look forward to any feedback from the membership on how we are doing.
Last, but certainly not least, a special “thank you” to the 2019 – 2020 board members who join me this year! I am thankful for each and every one of you. You make it all work!
President’s ReportPresident’s ReportBy: Terri Spitzig, Chapter President
Teamwork is the ability to work together toward a common vision. The ability to
direct individual accomplishments toward organizational objectives. It is the fuel
that allows common people to attain uncommon results.-Andrew Carnegie
4 • Summer 2019
AnnouncementsAnnouncements
ALA Chapter Referral ProgramALA Chapter Referral ProgramDid you know the Metropolitan
Detroit Chapter of the ALA has a Referral Program for the recruitment of new members?
• Refer someone for membership to the Chapter and if that person joins, you will receive a $50 gift card.
• Program has no expiration date.• Contact the Membership Chair,
Dana Hagemann Burleigh, and provide
her with the information regarding your referral.
Membership benefits:• Chapter educational events• Access to relevant information,
ideas, and insight you can use everyday• Connection to a network of
experienced professionals• Opportunity to connect with
leading innovators and explore new ideas related to legal management
• Membership in the Chapter listserv (Metropolitan Detroit Chapter on ALA Online Communities) providing instant answers to questions
• Quarterly Chapter e-newsletter• Business Partner directory and
access to vendor discounts
ALA Value in Partnership (VIP) SavingsALA Value in Partnership (VIP) Savings
Discounts, Coverage Enhancements & MoreDiscounts, Coverage Enhancements & MoreYour membership gives you access to exclusive services and discounts from
nationally known companies in solutions categories like security, technology, office products and videoconferencing. Savings can be up to 70 percent — enough to potentially cover your annual membership dues!VIP
Summer 2019 • 5
What the ALA Means to Me What the ALA Means to Me By: Dana Hagemann Burleigh, Director of Membership (2019-2020)
L e a d i n g up to the 2019 National Conference of the Association for Legal Administrators, local chapters were asked to
submit a 60 Seconds of Fame video. In an effort to raise our Detroit Chapter’s profile, then President, Ronda Harris, asked your Board to put our heads together to come up with a concept for a video. As I sat down to think about the theme of the 60 seconds of fame video, what does ALA mean to me, one word came to mind: Friendship.
I thought about how welcoming each person I’ve encountered has been. Immediately what came to mind was Melissa Clark reaching out to me in advance of the
2018 National Conference to include me; Terri Spitzig and me travelling together to Denver last summer for the Chapter Leadership Institute; and working closely once again with my friend and mentor, Sue York. I reflected on the welcome lunch I had with Geri Calvetti, Linda Reyna and others as well as the new friendships I share with Ronda Harris, Andrea Young, Uwanna Simpson, Kathy Batts and Kandi Lampkins. So, I reached out to all of my new friends and asked for a one word answer to the question: What does the ALA mean to you. The answers: Admiration, Collaboration, Solidarity, Inclusion, Accountability, Comradery, Knowledge, Rewarding, Enduring and Teamwork! You can check out our video on the Chapter’s Facebook page or in our LinkedIn group.
Now I ask you. What does membership in the ALA mean to you? Send me your one
word answer to [email protected] or join the conversation on our Facebook page and leave your response there!
When I think about these responses, I’m also super excited about my new role as Membership Director for 2019-2020. Can you think of anyone in your organization or network with whom you’d like to share all that ALA means to us? Please feel free to reach out to me so that we can work together to grow our Chapter and share these experiences with others in our profession.
6 • Summer 2019
ALA Calendar: Upcoming Deadlines & EventsALA Calendar: Upcoming Deadlines & Events
July 25, 2019 - Chapter Leadership Institute 2019July 25, 2019 - Chapter Leadership Institute 2019Louisville, KY
August 1-3, 2019 - Large Firm Principal Administrators RetreatAugust 1-3, 2019 - Large Firm Principal Administrators RetreatNashville, TN
September 17, 2019 - Legal Lean Sigma and Project Management September 17, 2019 - Legal Lean Sigma and Project Management Yellow Belt Certification CourseYellow Belt Certification CourseBoston, MA
September 18-20, 2019 - C4: The Legal Industry ConferenceSeptember 18-20, 2019 - C4: The Legal Industry ConferenceBoston, MA
September 26-27, 2019 - Intellectual Property Conference for Legal September 26-27, 2019 - Intellectual Property Conference for Legal ProfessionalsProfessionalsWashington, DC
October 21, 2019 - Advanced Human Resources Administration for October 21, 2019 - Advanced Human Resources Administration for Legal Management Professionals and Managing for ImpactLegal Management Professionals and Managing for ImpactSeattle, WA
October 21-23, 2019 - The ALA Master Class: Leadership for Legal October 21-23, 2019 - The ALA Master Class: Leadership for Legal Management ProfessionalsManagement ProfessionalsSeattle, WA
Summer 2019 • 7
My mother loved Christmas Trees. Some of my earliest memories include her love for the intricacies of each ornament, the details of the strings of lights, and her attention to detail regarding how each item on the tree should be placed. As my mother got older, her eyesight worsened, and her love for Christmas Trees changed. In her later years she no longer would obsess over each and every detail on the tree. Instead of
concerning herself with each ornament and string of lights, she enjoyed looking at the tree from the other side of the room.
Even though her eyes were not able to see like they could in her younger years, she enjoyed seeing the tree all lit up. One may say that with poorer eyesight, she was finally able to see the entire tree as one whole instead of just a collection of smaller details.
Christmas Trees are a unique example of how we collect details. We bring together all the things in our life and in our work and we hang them with care. We put them on display for others to see and enjoy. In this process, we can take enjoyment from making sure each ornament is carefully selected and placed on our tree. We carefully choose the lights that decorate our tree, and we find a place to proudly display our arrangement of details.
For those people who do not create their Christmas Trees to show off to others, there is still a satisfaction in putting together
something meaningful for yourself and those around you. In a way, these decorated trees become a physical collection of our decisions, our preferences, and our styles.
These same decisions, preferences, and styles can be seen on display in our work and personal lives as well. It is easy to get wrapped up in all the small details. In fact, it is important that we do so because we are creating something brilliant. We are creating a masterpiece with all these details as they complement and contrast each other.
It is important to pour ourselves into creating something we feel moved to create. It is important that we put our heart and soul into the passions that move us. These are the details and the care that my mother was putting into the creation of her perfect Christmas Tree.
continued on page 8
Do You See the Forest from the Trees?Do You See the Forest from the Trees?By: Paul Purdue, Attorney Computer Systems
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8 • Summer 2019
Do You See the Forest from the Trees?Do You See the Forest from the Trees?continued from page 7
However, it is also important to take time to recognize that these details are creating something larger. It is important to take a step back and look at the whole tree - to enjoy how well everything came together; to recognize that the good and the bad are part of the same whole; to recognize how the trials and triumphs add color and excitement to the decorations of the trees. As you step back and see the whole, you’ll notice yourself experiencing an appreciation for all that you and those around you do each and every day. You’ll discover a compassion for yourself which will steady and calm you as you go about your business, both at home and at work.
Do you see the whole? Do you see the importance of being able to develop this new type of eyesight? This is the type of eyesight my mother gained when she lost her regular eyesight, and it was a gift. Being able to pull back away from the closeness of everyday details to appreciate what it is you
are creating, to appreciate what and who you have in your life, and to appreciate how brilliantly everything fits together when you can see it all at once is a gift. If gaining this type of sight requires me to lose my sight, then sign me up. I know I want to be able to see the forest from the trees because I’m told the sight of the forest is breathtaking - simply breathtaking. Until that happens, I will busy myself with the details of my daily work knowing that it all comes together to create a masterpiece. Thank you, Mom, for teaching me this lesson. Thank you.
Paul Purdue is a principal at Attorney Computer Systems. He’s a self-proclaimed “infrastructure nerd.” Check out Paul’s growing library of legal technology articles and videos on Attorney Computer Systems’ web site.
Contact Paul:(800) 475-8104 paul.purdue@attorneycomputersystems.comwww.attorneycomputersystems.com
Summer 2019 • 9
Are Your Accounts Receivable a Problem for Your Law Firm? Or Are They Are Your Accounts Receivable a Problem for Your Law Firm? Or Are They an Opportunity?an Opportunity?By: Jake Krocheski, President, Client Connection
You can look at your law firm’s accounts receivable program in one of two ways. If you are a pessimist, you are likely to see it as a problem – dealing with difficult, ageing receivables. However, if you take a more optimistic view, you might regard it as a chance for the firm to enhance its revenues.
Client Connection suggests you take the more positive, forward-thinking approach and turn your accounts receivable management program into a proactive way to generate revenues for your firm.
Why Does Your Accounts Receivable Why Does Your Accounts Receivable Management Program Need to Start Management Program Need to Start as Soon as Possible?as Soon as Possible?
The answer is a simple one: to have a solid, consistent cash flow stream, which most businesses today require, and to ensure the firm gets paid for the work that your attorneys do and detect problems with payments sooner rather than later.
That’s the simple answer. Put a little more bluntly, the reason why law firms need a strong accounts receivable management program early in the ageing process is to prevent a domino effect of self-inflicted pain. Firms so often do this by letting receivables age without having effective, results-oriented know-how in place to collect receivables promptly. Here’s why:
• When law firms send out their regular monthly bills, and attorneys do not follow up promptly when clients don’t pay after 30 days, they are, in essence, saying to their clients: “Pay when you can. Our bill is not a priority. We don’t need the money right away.”
• With poor follow-up with clients early on, firms lose the opportunity to determine, as soon as possible, whether or not a client can or will pay. This gives the client confidence that they themselves control when and if they will pay.
• Lastly, firms give their attorneys too much autonomy by assuming they are on top of managing and collecting their bills. This leads to the question of whether they have a collections and accounts receivable management problem or a lawyer management problem.
There are certain clients and types of transactions that do not or cannot follow prompt payment guidelines. However, these are the exception and not the rule. Law firms need to understand that these exceptions gain traction and before long become problem-paying accounts as they age. On top of that, firms gain a false sense of security that they have a pot of revenue just waiting to be paid, when what they really have is a wealth of empty promises.
continued on page 10
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Are Your Accounts Receivable a Problem for Your Law Firm? Or Are They Are Your Accounts Receivable a Problem for Your Law Firm? Or Are They an Opportunity?an Opportunity?continued from page 9
Here is what you need to focus on:• Put into play the most effective
practice management strategy for getting accounts collected early in the ageing process, rather than having to devote the far greater efforts necessary for collecting receivables over 90 days.
• Manage your clients’ expectations, so that they know that they will be contacted early in the ageing process. By showing clients that the firm is in regular contact and is monitoring their payment status, they will understand that payment is expected.
• Keep timely collections a priority throughout the year, rather than putting them off until the final days of December. Too many firms are still locked into the misguided notion that “if we bill, they will pay.” Although waiting until year-end may work for some institutional clients, consistent efforts all year will prevent a lot of blood, sweat and tears at year-end.
How to Move Forward?How to Move Forward?Before deciding what direction your
firm should take in building an A/R program to address receivables early in the ageing process, take a step back and evaluate what would work in your firm, considering your firm’s size, culture, practice areas and management objectives. Accounts receivable management is not a one-size-fits-all program. It needs to start small and grow, based on measurable collection results.
• Analyze what is going on in your firm. Have we relied too much on clients paying at their own discretion? Does the make-up and culture of our firm permit attorneys to go it alone in how they manage their receivables? Have we built an A/R management infrastructure without measuring how well it is performing?
• Have an honest conversation with the various leadership members of the firm, explaining why the firm needs to do a better job in managing its A/R. You can’t do this without the buy-in of firm leadership. Recognize that you cannot entirely revamp your collection practices overnight. Review step-by-step with leadership how the firm
manages its receivable now – from the time the first bill goes out to the point at which you have problem older receivables.
• Start small, think big and build consensus – On one hand, you truly want to embrace institutional thinking and manage your receivables as a business, putting practices and processes in place. On the other, you want to give individual attorneys some autonomy, recognizing the different circumstances that may impact payment from clients. Meet with your attorneys to let them know your goals. Tell them that the firm wants to take decisive action
throughout the ageing process, starting between 30 and 60 days. Help them understand that they need to collect the A/R themselves or get help from the firm’s accounts receivable management team.
continued on page 11
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Are Your Accounts Receivable a Problem for Your Law Firm? Or Are They Are Your Accounts Receivable a Problem for Your Law Firm? Or Are They an Opportunity?an Opportunity?continued from page 10
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The Perils of Older, Difficult The Perils of Older, Difficult ReceivablesReceivables
Older receivables will not magically disappear. They will actually continue to grow and require much more time to get them collected. In many cases, the firm has a good idea why the client is not paying, but rather than resolving the issue early on – during the first 90 days – when the problem was small, it allows the problem to grow.
For many of these accounts, it’s found money. Getting something on the dollar is better than getting nothing. You have nothing to lose but revenue if you don’t. Clients are a lot smarter than you sometimes give them credit for. Rarely will they call you.
Dealing with problem accounts may give you a wake-up call to evaluate your accounts receivable needs and develop a strategy to ensure they avoid the bad habits that result
in old receivables. Learn from your mistakes – and determine why your clients did not pay your bills.
• Do you have internal issues that prevent you from flagging problems accounts early?
• Do you give your clients too much flexibility in giving them more time to pay?
• Is your staff up to the task of keeping on top of ageing receivables?
• Are you giving your attorneys too much leeway in pursuing older accounts?
Keeping Collections a Priority Year-Round
Too many law firms continue to think collections is an easy process – all you have to do is remind clients to pay and they will pay. If only that were so. More and more, clients are savvier about their payments, and many take considerable time to pay. Throughout the year, firms must
stop tolerating “good clients” who just don’t pay their bills. Although waiting until year-end may work for some institutional clients that typically pay at year-end, many clients require much more effort throughout the year. Continue to measure monthly revenue projections, but more importantly, be realistic about whether the firm is underachieving in its collections goals and if the firm has developed bad collection habits. Help your attorneys understand that when they see problems with older and difficult A/R later, many of these problems actually started earlier in the ageing process – when action could have been taken.
Jake Krocheski is President of Client Connection, which assists law firms of all sizes throughout the United States by furnishing accounts receivable management services and developing practical receivable programs.
12 • Summer 2019
Seven T-A-C-T-F-U-L StrategiesSeven T-A-C-T-F-U-L StrategiesSubmitted by Kathy Batts
Each letter in the word “TACTFUL” stands for one of seven strategies that will help you say the right thing in any sticky situation:
T – Think first before you speak. Many quick-tongued people don’t realize the negative impact of their sharp words. Ask yourself: “How would I feel if someone said this to me?”
A – Apologize quickly when you blunder. Everyone can make a mistake; the trick is to recognize that you have put your foot in your mouth and then take it out immediately.
C – Converse with people, don’t compete. If you replace a competitive style with less aggressive, more conversational approach, people will be more inclined to listen to your views without taking offense.
T – Time your comments. If at all possible, avoid discussing sensitive topics in front of others or when you and the other
person are upset, and be sure to give the other person some time to respond to you.
F – Focus on behavior---not personality. Remember, it is much easier for a person to change a specific, identifiable action than it is to alter his or her entire character or personality.
U – Uncover hidden feelings. You are more likely to say difficult things Tactfully if you first attempt to understand the other person’s feelings.
L – Listen for feedback. Poor listening skills often lead to Tactless comments. Criticism or hurtful remarks often stem from a desire to dominate an exchange without considering what the other person has to say.
In today’s demanding workplace “TACTFUL” communication is a crucial tool. People want and need to be treated with respect and appreciation.
PETER VILLANI, CFP®
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Summer 2019 • 13
2019 ALA Conference & Expo: New Frontiers in Legal Management2019 ALA Conference & Expo: New Frontiers in Legal Management
I attended the 2019 ALA National Conference and thought it was well prepared, thoroughly thought out and executed perfectly. The evening events were fun and, if anyone has seen the video of me riding the mechanical bull, very exciting! LOL
My favorite session was Bianca Moreiras’ presentation on “How to Create and Implement a Successful Mentor Program”. She gave us a real framework for taking
your associate attorneys from the beginning of their engagement with the firm, all the way to them achieving partner status. She walked us through the steps, beginning with creating a vision and mission statement, all the way to the actual passing of the baton, as well as having a system in place to celebrate milestones and goal completion. It is quality programming such as this that makes attending a national conference worth the
price you pay, along with the many people you meet and interact with in each of the sessions, who give you new insight and inspiration for doing what you do better and in ways you might not have contemplated.
All-in-all a worthwhile experience with memories you will have for a lifetime!
Susan J. York
I attended this year’s national conference and this conference was one of the best conferences I’ve attended and I’ve attended quite a few of them. I noticed a lot of improvements and could tell that National “hears us.” All of the speakers were great, powerful and impactful and, most notably, women speakers. I thought this was a nice touch to have a slate of women speakers given today’s climate. I also felt that during
this conference I had better opportunities to network with other ALA members as well as the BPs. The sessions were pointed towards what’s going on in the legal industry today and the one I found most helpful to me was the session on secretary teams. I thoroughly enjoyed that session. As a legal manager one of my biggest challenges is to be able to evenly distribute the workflow as well as maintain a good employee to attorney ratio.
The session on secretary teams offered a lot of insight into how this problem was solved with a few represented law firms.
Lastly, and let me just say, most importantly, the food was the bomb! Go ALA!
Ronda L. Harris
continued on page 14
14 • Summer 2019
2019 ALA Conference & Expo: New Frontiers in Legal Management2019 ALA Conference & Expo: New Frontiers in Legal Managementcontinued from page 13
One of the most important sessions I attended at the National Conference last month was a talk by Brian Cuban, author of The Addicted Lawyer: Tales of Booze, Blow, The Bar and Redemption. I think Brian’s story is an important one. We don’t discuss addiction enough in our private lives and not at all in our professionals ones except for maybe in hushed tones behind closed doors. EAPs are not vigorously enough nor widely
promoted. We need to do more to reach out to those suffering before they flame out or get fired. Brian’s message is one of love and perseverance. I believe he gave people courage to go back to their law firms, friends or family and ask the question, “are you ok?”
Dana Hagemann Burleigh
This year the ALA Nationals was held in Grapevine, TX. This was my second time attending the conference and I can say it was just as good as the last years. The topic of the conference was “New Frontiers in Legal Management”. The opening ceremony was excellent, the speaker was Molly Fletcher, she is one of the first female sports agent in the high stakes, big ego world of professional sports. Ms. Fletcher was born and raised in Lansing, MI and attended Michigan State, which of course maybe her one of my favorites since she was from our hometown. Mrs. Fletcher discussed the importance of
unleashing your potential, her four key points were to:
Believe – in your plan and goals Discovery – the gaps in the lives of the
people we serve Clarity – being clear on the types of
relationships we are building. To focus on who gets our energy and who doesn’t, asking ourselves “do they deserve my energy”. Are you better than your problems and are they worthy of all the energy you are giving them.
Discipline – Hold people accountable based on their answer of what does success look like to you. Being focused when people
want to speak with you, they can tell if your present and it matters.
Lastly that everyone should keep a smile file of great notes and conversations and peek at it after those tough moments so we can remember why we do what we do.
Andrea Young
continued on page 15
Summer 2019 • 15
2019 ALA Conference & Expo: New Frontiers in Legal Management2019 ALA Conference & Expo: New Frontiers in Legal Managementcontinued from page 14
ALA National Conference was as always jammed packed with education, networking and most of all business partners! Grapevine, Texas and the Gaylord Texas rolled out the hospitality mat for us. We welcomed our friends from Lansing to our Chapter dinner and were able to spend some time together getting to know everyone and catch up with Chapter friends. I personally experienced Grapevine on a different level, now being
involved on the National level and let me tell you, there are some great things in store! Our Past President April Campbell is ready to shake things up and so is our Board of Directors. We have one of the nicest human beings I have ever met as our President. James Cornell is a wonderful leader and I cannot wait to see what he does for the organization this year. There was so much educational topics, roundtable discussions
and comradery that if you have not been to a conference or it has been a while since you attended one, you should definitely come to one. ALA Detroit is where it is at and I cannot wait to see our representation grow bigger every year.
Melissa M. Clark
16 • Summer 2019
2019 Business Partners2019 Business Partners
Our chapter is grateful for the support of our Gold, Silver and Bronze Business Partners who actively come along side our members with their financial support (via their sponsorship of ALA), expertise and camaraderie. Our many business partners run the gamut of products and services geared to support law firms, from technology to consumables. Our list of business partners is a one-stop “shop” to meet the needs of your organization!
Gold SponsorsGold SponsorsSpirit of Detroit
Silver SponsorsSilver SponsorsMotown HitsIron Mountain
Cass TechArrow Office Supply
PCIA InsuranceRippe & Kingston
Bronze SponsorsBronze SponsorsMotor City
Advantage TechnologiesRecords Deposition Service
IST ManagementRobert Half Legal
Corrigan Moving SystemsFirst Choice Coffee Services
Special CounselDetroit Pencil Company
Veritrak SystemsTuttle Printing & Engraving
The Henry FordMichigan Education Savings Program
English GardensImage Business Solutions
Gemini Risk PartnersABA Retirement Funds
Personnel Management SolutionsAll-State LegalMFC Benefits
4 Seasons DesignHagopian Cleaning Services
VarTec LLCEpiq
Paragon UnderwritersAmerican Interiors
Business Partner Referral ProgramBusiness Partner Referral ProgramThe Metropolitan Detroit Chapter of the ALA has instituted a Referral Program for the recruitment The Metropolitan Detroit Chapter of the ALA has instituted a Referral Program for the recruitment of new Business Partners. Refer a new Business Partner to the Chapter and if that BP joins, you will of new Business Partners. Refer a new Business Partner to the Chapter and if that BP joins, you will
receive a $100 gift card. This program has no expiration.receive a $100 gift card. This program has no expiration.
Summer 2019 • 17
Embezzlement, also known as employee theft, occurs when someone wrongfully appropriates funds entrusted to him or her. Employee theft occurs in big organizations despite elaborate systems and procedures designed to prevent it. It happens in small and midsize law firms, too —more frequently than you might think.
Embezzlement examples in small/Embezzlement examples in small/midsize law firmsmidsize law firms
Payroll Theft. A law firm’s Office Manager gradually raised her annual salary from $35,000 to $250,000 over an 18-month period. The fraud went undetected until the Managing Partner received a routine report from the firm’s actuary showing actual salaries and projected safe harbor profit-sharing contributions for the year.
Use of Firm Funds for Personal Expenses. A law firm replaced its Administrator for issues unrelated to financial matters. The following week, he phones his successor to fess up about some “usual charges” likely to appear on the firm’s next credit card
statement. The firm discovered that he tapped their business credit card for more than $90,000 including personal groceries and gasoline, department store purchases, and private school tuition.
Phantom Vendors. A law firm administrator created various fictitious vendors — IT consultants, temporary staff, etc. — to channel $100,000 to family and friends who shared the proceeds with her.
Padding Expense Reimbursements. A routine phone call to the Office Manager to verify out-of-pocket costs passed through on a client invoice uncovered $15,000 of fraudulent travel, lodging and meal expenses charged to multiple clients by a partner. Not a lot of money, but the partner was disbarred and the firm received a lot of unflattering press coverage.
Supply Theft. Unhappy with the explanation provided by the Office Manager for increasing office supply costs, a young partner investigated. He uncovered the Office Manager’s side-business peddling office supplies, toner cartridges and paper products to small companies in office parks
near his home. The errant supplies were invoiced to the law firm, but shipped to his home address for weekend delivery to his customers.
Diverting Client Payments. After a partner left the firm to practice solo, the Accounting Department contacted a former client’s accounts payable manager to collect past due invoices 6-12 months in arrears. The AP manager emailed copies of the cancelled checks showing the past due invoices were paid on time… but to a client trust account payable to an IOLTA trust account bearing the former partner’s name.
Trust Account Misuse. Noting the existence of several outstanding client trust account checks that were more than two years old, a firm administrator wrote and signed “replacement checks” to himself; but recorded the amounts as being reissued to the original payees in the accounting records. The theft went undetected until a partner discovered a photocopy of one of the illicit checks left on a shared printer.
continued on page 23
Embezzlement Happens! (In Small & Midsize Law Firms, too!) Embezzlement Happens! (In Small & Midsize Law Firms, too!) By: Michael Marget (reprinted with permission)
18 • Summer 2019
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Email has been used as a form of communication since 1990. Today, the use of email has basically replaced our written form of communication. Our letters are now written via email. Our documents remain in an electronic format. Even our files are more likely to be in an electronic format. If you are old enough to remember the day prior to email you may wonder sometimes how we survived without email as a communication too. But we did.
So, what is an email sin? In a nutshell, it’s communication with another person that may create a misunderstanding, exacerbate an issue or place the sender into a professional liability claim. The top seven sins of email communication:1. Self-criticism
I messed up - negative judgement or analysis of one’s own actions or behavior without the aid of another person.
2. Blaming • Finger pointing• Transferring – not my monkey• CYA (Cover Your Tail) – you made me do it
3. Complaining• Expressing pain, dissatisfaction or resentment• Forceful expression of pent-up thoughts or feelings
4. Colloquialisms • Qualifiers – words that limit or enhance• Adjectives – modifiers to use carefully• Filler words – words to delete
5. Thoughtlessness • Blathering – ramble, go on, or lengthy, confusing message• Instant reply – immediate response to email
6. Self-indulgence • Opinion – my view• Speculation – my guess• Exaggeration – my overstatement
7. Too Much Information• Unimportant information• Incriminating information
Mike Cosgrove is the President of Professional Concepts Insurance Agency (PCIA). Founded in 1988, PCIA is a leader in the insurance and risk management industry for lawyers and other professional services firms.
Are You Guilty of Committing Email Sins?Are You Guilty of Committing Email Sins?By: Mike Cosgrove, President, Professional Concepts Insurance Agency (PCIA)
Summer 2019 • 19
Monthly Spotlight on Diversity & InclusionMonthly Spotlight on Diversity & Inclusion
June: Me, Myself & I: Can Implicit June: Me, Myself & I: Can Implicit Egotism Affect Business Decisions?Egotism Affect Business Decisions?
Can implicit egotism affect business decisions?
July: Gender Equality in Law July: Gender Equality in Law SchoolsSchools
Closing the gap between genders in the classroom.
August: The Ever-Changing August: The Ever-Changing Workforce: GenerationsWorkforce: Generations
More generations than ever before are working together, requiring conscious awareness in leadership.
September: National Hispanic September: National Hispanic Heritage MonthHeritage Month
September is National Hispanic Heritage Month. Hispanic people were among the earliest European settlers in the New World, what is today the United States.
Watch: https://youtu.be/2g88Ju6nkcg
“Diversity requires commitment. Achieving the superior
performance diversity can produce needs further action -
most notably, a commitment to develop a culture of inclu-
sion. People do not just need to be different, they need to be
fully involved and feel their voices are heard. ”
-Alain Dehaze
20 • Summer 2019
What Does Leader Mean to You?What Does Leader Mean to You?By: Melissa M. Clark
Leadership-the action of leading a group of people or an organization. While that is the textbook definition of the word, what does it mean to you? For years, there have been dozens of courses, speeches, blogs and even professional development “pep talks” that try to explain what it means to be a leader. The picture sometimes is not so clear. How you should act….what you should say, you know, the simple stuff. The funny thing is that it is not that simple. You have to always put your group or staff first when leading; not the other way around….and man is that hard. We are designed to make sure we survive; to take care of our needs in order to thrive. It is hard to turn that instinct off for the betterment of others. To be servant, to motivate others while pushing your needs aside.
What do you do, when you have that staff member that needs your guidance on a personal level because you are the only person they trust? Or how about when there
are sticky situations at work and they rely on your leadership position to advocate for them. What do you do then?
To me, being a leader is like being a parent. It is our goal and job to make sure our staff is heard, to have empathy, to equip them with the necessary resources to do their job and to do it well and to thrive in an environment that empowers them to succeed; to be an active listener. To be a leader means to be your group’s cheerleader, to keep it positive, when sometimes you do not feel that way. To motivate even in the toughest times, to share in creativity and to always be striving to improve yourself even on your best day. To be a leader to me is much like the Golden Rule-do onto others as you would have them do unto you. Such a powerful statement with not much effort behind it. To be a leader is to be kind.
I invite all of you to take a step back and think what does leadership mean to you?
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Summer 2019 • 21
Metropolitan Detroit Chapter Diversity & Inclusion StatementMetropolitan Detroit Chapter Diversity & Inclusion Statement
The Metropolitan Detroit Chapter of the Association of Legal Administrators is a professional organization comprised of administrative managers from private, corporate, and governmental legal organizations in the Metropolitan Detroit area. Metropolitan Detroit ALA embraces and encourages diversity and inclusion within the local legal profession. We value diversity and inclusion and those initiatives that promote it and look to partner with affiliated professional legal organizations to advance diversity and inclusion. We not only strive to raise awareness, but to increase our sensitivity in the area of
diversity and inclusion and more closely reflect the diversity of our community at large. Having a more inclusive and diverse legal community will improve the quality of our organization’s workforce and respond to our clients’ requirements for diversity and inclusion.
As a committee, we are very interested in your thoughts, comments and suggestions about achieving greater diversity and inclusion in our Chapter, our profession and in our firms. Please feel free to contact the Chair of the Metropolitan Detroit Chapter’s Diversity and Inclusion Committee, Sue York via email at [email protected].
22 • Summer 2019
Newsletter Chairperson’s CornerNewsletter Chairperson’s CornerBy: Terri Spitzig, Newsletter Chairperson
Stress is a natural physical and mental reaction to life experiences. Stress can have wide ranging effects on emotions, mood, and behavior. As a legal administrator, we spend our time focusing on our employees, addressing performance issues, training, motivating, managing, and making sure their life/work balance is in check so they do not burn out. But who watches out for our life/work balance and makes sure we do not burn out or that we recognize the burn out if it is there?
We feel constant pressure from the partners, stress from being overloaded, emotionally drained – and then we react. Irritability, anxiety, depression, headaches, and insominia – just to name a few of the symptoms of chronic stress. If you recognize it (or someone recognizes it for you), what do you do? Here are some ideas:
• Exercise – Studies have shown that exercise can benefit a person’s mental and physical state.
• Reduce alcohol and caffeine use – Some people think these help relieve or
prevent stress, but they can actually make it worse.
• Nutrition – Work on a healthy, balanced diet with fruits and vegetables.
• P r i o r i t i z i n g – Spend some time organizing your To-Do list. Determine what is important. Focus on what you complete each day instead of what you did not finish.
• Time – Set aside some time each day just for yourself.
• Breathing and relaxation – Meditation, massage, and yoga are all good for relieving stress. All teach you relaxation techniques to help you slow your system down and relax.
• Talking – Family, friends, co-workers, your boss, fellow ALA members – all good resources for someone to talk to, vent, let off steam.
• Look for your destressor – Find something that helps you relax: reading a book, taking a walk, listening to music, spend time with friends, find a hobby, or join a gym.
The key to managing stress is to recognize it and do something about it. Stress is inevitable in our occupation, but how we manage it can have a great impact on our health.
Did you know that Did you know that
every time you recruit every time you recruit
a new member a new member
you will receive you will receive
$100?$100?
If you don’t like something, change it. If you can’t change it, change your attitude.
-Maya Angelou
Summer 2019 • 23
How frequent are embezzlement How frequent are embezzlement cases in small/midsize firms?cases in small/midsize firms?
I’m not aware of any formal statistics regarding law firm embezzlements, but they happen more often than most would imagine. How can I back up that statement? The seven examples cited in the earlier section are first-hand accounts shared with me by Managing Partners who lived through those dramas. If you consider those seven employee theft cases against the size of my small network of law firms, then apply that percentage to the roughly 13,000 US law firms with 5-50 lawyers – the risk is very real.
Why are law firms so susceptible to Why are law firms so susceptible to employee theft?employee theft?
Willy Sutton robbed banks because, “That’s where the money is.” Employee theft occur disproportionately in small/midsize law firms because, “That’s where the vulnerability is.”
Employee theft occurs when there is motivation, rationalization, and opportunity.
The motivation may be personal financial difficulties or a perception that he or she is underpaid or undervalued by the firm. The individual will then find a way to rationalize the reasonableness of the act. Lack of day-to-day senior supervision — all too prevalent in small/midsize law firms — and the informal nature of accounting operations due to small staff size provides the opportunity. This is not because lawyers are bad managers, but rather because their livelihood depends on their ability to solve client problems, produce new business, and generate billable hours — to the point that there is no time for overseeing day-to-day activities within their Law Firm Accounting Department.
Establishing controls to prevent Establishing controls to prevent employee theft casesemployee theft cases
Motivation and rationalization are unpredictable factors and outside the firm’s direct control. However, opportunity can be curtailed by adhering to carefully crafted internal control procedures, such as:
Always Performing Background Checks. Prevention begins by hiring the right people. Perform thorough b a c k g r o u n d checks for all new personnel — for both lawyers and staff. Contact r e f e r e n c e s ; speak with past e m p l o y e r s . (Sad fact: No background check occurred when the Office Manager cited in the Payroll Theft example was hired. Turns out she did the same thing at her previous employer).
Watching for Subtle Warning Signs. Is someone suddenly living beyond his or her
means, known to have a side business, or taking frequent jaunts to casinos? It could be a telltale sign.
Establishing Anti-theft Policies & Procedures. Draft written policies and procedures for all financial transactions. Then, communicate and enforce those policies. Whenever an exception is made or deviation from the written guidelines occurs, require immediate documentation in writing and after-the-fact signed approval by senior management.
Separating Financial Responsibilities. No one person should be solely responsible for all the steps involved in accounting for funds going into the firm or for recording all the funds flowing out from the firm. The person responsible for making the bank deposits should not also post those payments in the accounting system. Similarly, the person authorizing payments should not sign checks or process the electronic payments. Insist upon dual authorization (e.g., two signers) involving amounts in excess of specific dollar limits. Someone independent from the person making the deposits and withdrawals must perform the bank account reconciliations. If you have a small accounting department, consider using an outside party — such as a CPA firm or consultant — to do this work and/or review your internal control procedures from time to time.
Showing Top-Down Involvement. Firm management sets the tone; do not over-delegate internal accounting controls. If firm management is not paying attention, bad outcomes are more likely. Insist upon a zero-tolerance of deviation from the written policies and procedures.
continued on page 25
Embezzlement Happens! (In Small & Midsize Law Firms, too!) Embezzlement Happens! (In Small & Midsize Law Firms, too!) continued from page 17
24 • Summer 2019
ALA Code of Professional ResponsibilityALA Code of Professional Responsibility
In 1991, ALA adopted a Code of Professional Ethics to outline professional ethics standards for legal administrators. In 2010, the ALA Board of Directors appointed a task force, chaired by Past President Wendy Rice-Isaacs, to review the existing Code of Professional Ethics and recommend necessary updates to best reflect the current state of the profession and administrators’ responsibilities. In addition, the Board appointed a group to review the Member Performance Objectives. As a result of these efforts, the Association has adopted the following newly revised Code of Professional Responsibility that encompasses the spirit of the previous code and performance objectives, and reflects our professional responsibilities in today’s profession.
As legal management professionals, members of ALA shall abide by high ethical standards. This ALA Code of Professional Responsibility sets forth standards for the administration of legal management practices. Legal administrators at all levels have a responsibility to uphold and incorporate these standards into their everyday performance. This Code applies to the administration of legal organizations including private firms, corporate legal departments, legal clinics, government agencies and courts.
I. Responsibilities to the Profession of Legal Management:
A. Uphold the ALA Code of Professional Responsibility and the mission of the Association of Legal Administrators;
B. Conduct oneself with integrity and project a positive image of the legal management profession;
C. Pursue continuing education to maintain a high level of proficiency in management procedures and issues;
D. Promote initiatives for civic, economic and social well-being within our communities; and
E. Advocate increased diversity in the legal management community and in all legal service organizations.
II. Responsibilities to the Legal Employer and its Employees:
A. Foster an environment that promotes the use and improvement of sound business practices where all employees can develop, contribute and prosper;
B. Be truthful and forthright in all forms of professional and organizational communication;
C. Report financial information promptly, completely and accurately, and in a manner that facilitates informed decision making;
D. Implement policies and procedures to address professional responsibility, business ethics and conduct;
E. Establish an appropriate grievance and appeals process tailored to the legal organization’s size and structure; and
F. Promote a work environment that does not discriminate, intimidate or allow harassment based on race, color, ethnicity, national origin, gender, age, religion, disability, veteran’s status, marital status, sexual orientation or other legally protected characteristics.
III. Responsibilities to those Outside the Legal Organization:
A. Respect the customs and practices of clients, prospective clients, business partners and the community at large;
B. Avoid actual or apparent conflicts of interest and advise all appropriate parties of potential conflicts;
C. Refrain from soliciting or accepting any fee, commission, gift, gratuity, discount or loan on behalf of oneself, family or friends, that may influence business decisions;
D. Ensure the existence of policies and procedures to provide quality client service;
E. Utilize confidential and proprietary information solely for legal practice or management purposes and not to further private interest or personal profit; and
F. Support outreach activities that cultivate pro bono assistance and law related public education to meet community needs.
Summer 2019 • 25
Embezzlement Happens! (In Small & Midsize Law Firms, too!) Embezzlement Happens! (In Small & Midsize Law Firms, too!) continued from page 23
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As Ronald Regan said in the context of nuclear disarmament: “Trust but verify.” Imposing strict internal control procedures does not mean you distrust anyone, but rather sets a standard for the partners and staff alike that ethical behavior in the workplace is the only acceptable standard for the firm. It is notable that Mikhail Gorbachev’s response to Regan’s “trust but verify,” which was a reference to a Russian proverb, was a quote from Ralph Waldo Emerson: “The reward for a thing well done is to have it done.” Well said, Mikhail.
As a helpful guide to internal control procedures, 4L Law Firm Services as developed an Internal Control Checklist. It is available here. You might find it useful, and it’s free!
A Silly Musical Interlude….Working late in the darknessI hear the sirens wailSomebody’s caused a $$$$ing emergencySomebody’s going to jail
If you have an internal control weaknessYou better fix that failThe wolf is always at the doorIn a Law Firm Minute (ooh-oo-ooooh)Everything can changeIn a Law Firm Minute (ooh-oo-ooooh)Numbers can get strangeIn a Law Firm Minute (ooh-oo-ooooh)Always think long-rangeIn a Law Firm Minute….(with apologies to Don Henley)
Mike Marget is an erstwhile large firm manager with tours of duty as COO at Katten Muchin, Jenner & Block and CFO at Holland & Knight, among others. He’s currently president of 4L Law Firm Services which provides accounting, bookkeeping and related back office services
to small/midsize law firms and co-CEO of NSource, LLC, a law firm consultancy. His blog, Law Firm CFO, is dedicated to every law firm manager who has ever asked the question, “Why me?”
26 • Summer 2019
ALA Metro Detroit 2019-2020 Board Officers and LeadershipALA Metro Detroit 2019-2020 Board Officers and Leadership
Terri SpitzigTerri SpitzigChapter President/Newsletter ChairDenenberg Tuffley, [email protected]
Kathy I. BattsKathy I. BattsTreasurerGrace M. Thomas & [email protected]
Germaine CalvettiGermaine CalvettiAssistant TreasurerHewson & Van Hellemont, [email protected]
Andrea E. YoungAndrea E. YoungVice President/President ElectCollins Einhorn Farrell, [email protected]
Kandi L. LampkinsKandi L. LampkinsCo-Director of EducationMeetings & PublicityBrinks Gilson & [email protected]
Uwanna Faye SimpsonUwanna Faye SimpsonCommunity ConnectionsHom, Arene, Bachrach, Corbett, Kramer, Harding & [email protected]
Melissa M. ClarkMelissa M. ClarkDirector of Business Partner RelationsMcKeen & Associates, [email protected]
Linda M. ReynaLinda M. ReynaSecretaryDickinson Wright, [email protected]
Susan J. YorkSusan J. YorkDiversity ChairKemp [email protected]
Ronda HarrisRonda HarrisImmediate Past PresidentCo-Director of EducationMeetings & PublicityMiller Canfield Paddock & Stone, [email protected]
Dana Hagemann BurleighDana Hagemann BurleighDirector of MembershipFoley & [email protected]
