We have all been there — shouting, grand-standing and lines in the sand. Unfortunately, when a negotiation turns hostile, the client suffers. A missed opportunity, dead deal, lost capital or worse. All can be results of negotiations gone bad. I have found that interest-based negotiation can often prevent hostile negotiations and even turn a hostile negotiation more productive.
In a recent article from Law.com, an industry observer stated “[a]lternative fee arrangements are like teenage sex. There’s a lot more people talking about it than doing it—and those that are doing it don’t really know what they’re doing. . . .” While yes, that is a juicy, headline-attracting quote, I tend to agree with it wholeheartedly.
Recently, I was working with a client looking at a potential investment. As I was pouring over the diligence, I noticed some interesting and unfortunate trends. By using quick and simple ratio analysis, I was able to determine that the business was not as healthy as initially thought, nor as the sellers portrayed. A few simple calculations saved my client significant purchase price dollars and buyer’s remorse once they acquired a business in serious trouble.
I think it is important that all business people (including lawyers) be able to understand, digest and interpret basic financial statements. If you are not familiar, I have set forth below a few key financial ratios that you can use to assess the financial health of a business: (more…)
Ethos Business Law was founded on the vision that there is a different and better way to provide legal services. A way that is more in line with clients’ needs and a way that is more efficient and effective. One piece of that vision is the flat fee.
Recently, there have been various articles on this topic (see here and here for a couple examples). In fact, one of these articles goes so far as to say “[t]he conventional ideas for changing the way law firms do business are . . . insipid and inadequate.” (more…)
Ethos Business Law, in conjunction with Russell Herder, is excited to offer a webinar: “Social Media: Embracing the Opportunities, Averting the Risks” on Tuesday, August 25 from 12 to 1 p.m. CT (register here).
Social media is one of the hottest topics today, with the pros and cons of its use being debated in board rooms nationwide. In light of recent restrictions on employees’ social media use (ESPN, Marine Corps, NFL), companies are discussing whether, how and to what degree they should restrict or encourage their employees to use social networking tools. This webinar will offer insight into business leaders’ views and perceptions on this issue and will provide actionable recommendations and advice on the development of social media policies and employee training sessions.
Led by Carol Russell, CEO of Russell Herder, and David Baer, president of Ethos Business Law and one of Minnesota Lawyer publication’s Attorneys of the Year, the webinar will also highlight the insights gleaned from the recent national study conducted by the two firms on social media trends in the workplace and policy adoption.
Sign up for this free webinar here.
In advance of the webinar, we invite you to submit questions and suggestions for topics to be covered in the presentation under Comments.
Should employees be encouraged to use social networking to enhance business outreach? Or will such activity impede productivity, increase reputational risk, and most importantly increase liability issues? These and other questions are clearly on the minds of today’s management.
Recent research conducted with Russell Herder found eight in 10 businesses have concerns about the potential liabilities of social media. Yet, only one-third have a policy in place to govern social media use, and just 10 percent said they have conducted relevant employee training.
Instead of ignoring the need for responsible guidelines, organizations of all sizes should begin to define their strategy regarding social media, and most importantly, the rules for employee engagement. By doing so, management can take advantage of the benefits offered by these new communication channels while mitigating undue risk. But remember, social media is a far different animal than traditional technology. A company’s current policies on IT matters are usually not sufficient.
All companies are different, thus the rules for creating and implementing a social media policy are not universal. They must take the form, substance, philosophy and culture of the organization to which they apply. However, the following are some important elements to include in a good social media policy:
Recently, a client was lamenting a situation where it sold a significant amount of product to a customer, only to learn weeks after delivery, the customer filed for bankruptcy. In today’s economy, this situation happens all the time.
If you find yourself in this position, or in any situation where a customer or supplier becomes involved in bankruptcy, you should quickly reach out to counsel for guidance and assistance. It turns out in the example above, there may be some interesting remedies provided under law if the supplier acts quickly and correctly. However, even waiting a few extra weeks can be detrimental to a claim.
Turn over a new leaf and become proactive rather than reactive when it comes to legal matters in your business. As they say, “an ounce of prevention is worth a pound of cure.”
Email is a powerful tool for business. However, the ease of using email can also be a curse when mistakes are made. In my experience, one of the most seemingly innocent, yet problematic tools in email is the ‘Reply All’ feature. (more…)
Yesterday, the Wall Street Journal published three articles side-by-side addressing a topic that I believe is very important to all businesspeople looking for attorneys (here, here and here). That topic is the lack of business knowledge and skills taught in law school. These articles discussed the niche of attorneys that also pursue an MBA — a niche I am a part of and believe is essential when working with business clients.
Executive Compensation . . . you can’t open your eyes or ears nowadays and not hear something juicy on this topic. However, far from the typical Executive Compensation discussions of the day, lays a far less scandalous, but more relevant topic to consider. How can you fairly compensate your employees and, in fact, motivate them to work harder in these recessionary times. Fear of losing their job? I prefer the carrot rather than the stick approach. Perhaps it’s time to think slightly out of the box and motivate your team to succeed through alternative compensation methods rather than beat them into submission with pay-cuts and lay-offs.