Welcome 2021! This year, probably more than ever, I think it’s safe to say we are all ready to put 2020 behind us and are looking forward to a better and brighter 2021! While the COVID cases continue to climb across the Province and we are smack in the middle of yet another lockdown, I do believe that the promise of a new year (and news of the vaccination plan rollout) will bring people hope for some sense of normalcy this coming year.

Ringing in the new year usually comes with people setting out new year intentions or resolutions. I like to think of coming into the new year with “fresh eyes. Kind of like seeing things all over again through the eyes of a child. When my son was a toddler and we took him to the zoo for the first time, the excitement in his eyes, face, his voice – seeing all these animals up close and in person for the first time, was such a thrill and joy for him. This is merely one example, but I realized as we went through each of his “firsts”, it brought me back to experiencing it just as he was – seeing it again for the first time through his eyes. It made me appreciate and find the joy in so many simple things we do in life that we take for granted or don’t even really think about anymore. This year more than ever, I am hopeful that my “fresh eyes” approach will help curb the sorrow and negativity that 2020 has brought to so many. That with the news of successful vaccines rolling out and the hint that we might get back to things we once saw as simple – hugging a friend or gathering in person at events – will bring us all some much needed joy.   

I would like to take this opportunity to officially welcome Bernice Durdin as our incoming 2021 President. Bernice has been an active TLOMA member since 2002 and I know she will use her passion for the organization to bring great things to the table!

Last year we launched the Best of TLOMA Award and I am happy to announce that we have two winners: Louise McNeely and Mark Hunter. Congratulations and thank you participating!

The Conference Committee has been hard at work planning our 2021 Conference. As you can appreciate, given the current circumstances, planning is much more challenging than usual. Please keep your eyes out for a Member Survey being sent on behalf of the Conference Committee. We would appreciate everyone taking a couple of minutes to complete this to assist the Conference Committee with the direction of their planning.

We have some great events lined up for our members this year! Two events I would like to highlight: the member networking event we are holding on Groundhog Day as well as the Professional Development Event on April 15^th. Please be sure to check out our events page to register.

As I wrap up my final President’s message I will, of course, leave you with a quote: “The true voyage of discovery is not a journey to a new place, it is learning to see it with new eyes” – Marcel Proust.

Thank you for your continued support of TLOMA. We know the past year had more than its share of challenges, but we are so thankful for our members, business partners, volunteers and staff – TLOMA is great because of all of YOU!

In January 2020, TLOMA launched the Best of TLOMAToday Award, encouraging TLOMA members to submit an article to TLOMAToday newsletter or an article on COVID-19 Humor and be considered for the Best of TLOMAToday Award. 

Congratulations to our co-winners, Louise McNeely who provided with us with a checklist of COVID-19 Humor and to Mark Hunter who submitted an article on Charitable Activities During COVID; both articles were featured in the September issue of TLOMAToday.

The award displays TLOMA talent and features creative, practical and relevant content for the legal management professionals and recognizes innovation and thought leadership of its members.  TLOMA also added a twist in light of the challenging times everyone was facing and asked if there were any articles, helpful tips, memes and anything else that would inject humour into our lives!

 

CALL FOR NOMINATIONS FOR 2021!  

Here's what you need to know!

Simple Submission Process:  Nominate Today!  Send TLOMA an email with the title and author of the article and newsletter issue date.  Only TLOMA members are able to submit a nomination and only TLOMA members are eligible to win the award.  The author of the article can self-nominate.

Criteria:  When submitting a nomination consider the following factors:

1.      Was the article well written, succinct and easy to follow?
2.      Did anything stand out about this article? Was it original?
3.      Did the article speak to relevant trends in the legal management industry?

Judging:  The current TLOMA board will determine the winners, but no TLOMA board member will take part in the nominating process.

Recognition:  Recipient of the Award will receive recognition in the TLOMAToday December Newsletter and at the December Networking Event.

Prize:  Recipient will receive a Certificate of Recognition and a $200 gift card. Sounds pretty simple!  Doesn't it?

Haven’t written an article to TLOMAToday yet? Last eligible submissions will be the October 2021 issue of the TLOMAToday newsletter, and all nominations must be submitted by October 29, 2021.

We look forward to reading your submission!

What Is Foreign Exchange Hedging?

Hedging is used to manage foreign currency exposure when a firm needs to exchange one currency for another, often because the firm’s foreign associate is in a different country and bills in their native currency.  Exposures to FX (foreign [currency] exchange) market fluctuations can affect revenue, cash flow, and profit. Hedging can help an FX-exposed firm mitigate the risks of currency fluctuations.

There are a range of products that can be used to purchase foreign currency depending on a  firm’s objective including spot, forwards, and options.  Most law firms we service utilize spot and forward FX transactions.

What Are The Potential Benefits Of Foreign Exchange Hedging?

• Protect your firm from adverse currency market movements
• Improve your firm’s cash flow
• Improve your firm’s client relations due to consistency in pricing

What Are The Risks Associated With Foreign Exchange Hedging?

• Fixing the price can be a disadvantage if the exchange rate improves versus the hedged price.
• You may have to pay deposits or premiums upfront when hedging which could impact cashflow

When implementing a hedging strategy it is important you weigh the risk versus rewards.  Below is a checklist of questions your firm can address:

1. What Do I Hope To Achieve From My Currency Hedging Strategy?

Have a clearly defined goal. To a certain extent, your goal will help you determine whether to hedge and which FX hedging products may be the most suitable to meet your needs.

The currency market is volatile, so your goal may simply be to protect your firm from currency gains/losses and more importantly client billing adjustments.  Adverse currency market movements can also impact your firm’s profitability. In this scenario, you might consider using a foreign exchange forward contract. This allows you to fix the FX rate for a set time period typically up to 6 months.

2. How Important Is Cash Flow To Your Firm?

Many firms involved in foreign transactions don’t want to act as a bank for their clients.  Many firms paying FX invoices prefer to wait until their client pays before settling with their foreign associates.  Hedging can be a useful tool so firms can lock in a rate upon invoice receipt, bill a client for the work, receive payment for the work, then pay the foreign invoice.  With a hedging strategy the USD amount billed as equivalent to a bill denominated in a non-USD currency will not change and the foreign currency amount billed to your firm will be timely paid.

3. Can I Afford To Pay A Deposit Of 5% Of The Total Currency Hedged Up Front?

Some providers may ask you for an upfront deposit to secure the currency contract, which is returned once the contract has matured. This gives the provider security should you default.  There are organizations that focus on FX invoice processing for law firms like Global Exchange that generally do not require a deposit.

Types Of Foreign Exchange Transactions/Hedging Solutions

Spot rate: The exchange rate is locked immediately, and currency delivered within the 48 hours immediately thereafter.

Forward rate: The exchange rate is locked, and currency is delivered on the exact settlement date.

Window forward rate: The exchange rate is locked, and the currency can be “drawn down” (used up in installments) anytime during the 6-months from the invoice entry date.

Using Multiple Hedging Products

Some firms hedge using a mix of products to achieve different goals. For example, a firm might use Spot transactions to pay for non-billable foreign currency expenses such as foreign rent and foreign partner payments, and use forwards for billable expenses like IP (trademark work, patent work, etc.) billing.

Other Considerations

Additional components that factor into a firm's FX strategy include:

• Invoice & payment processing
• Compliance protection
• Time & billing integration
• Wire & processing fees

Plus, in the global currency market lower value transactions are typically priced less competitively than larger value transactions. For example, consider online exchange rate providers like Google, Bloomberg or OANDA which provide real-time interbank exchange rates directly from the interbank currency market.  These rates are typically: 1) based on transactions that are $1M+, 2) indicator only rates that Google etc. are not actually quoting or offering you for the purpose of executing deliverable foreign currency. For real-time pricing on your firm’s deliverable foreign currency needs, a financial institution like Cambridge can help you. Cambridge’s Global Exchange Payment Solutions specializes in providing these services to law firms worldwide.

Disclaimer: The above comments are only our views and should not be construed as advice. You should act using your own information and judgement. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. Some of the products referenced here are only available in certain jurisdictions.

Back in the late 1970s, my uncle was an electrician for one of the automotive companies. He would spend his days at the assembly plant, on call to repair any equipment that may break down. As robots were introduced on the assembly line, the unions were rightfully concerned about the potential for job losses amongst their members. “Robots don’t have families to feed!” was the rallying cry. One day as my uncle was taking his lunch break, he noticed a sign-up sheet for a training class on a bulletin board. The subject? Robot repair.

According to a PWC report[1], the next ten years will see a dramatic shift in the workplace. Automation will replace many human tasks and jobs. Just as in previous times, the next few years will provide an opportunity for those who are facing the elimination of their jobs to prepare for the new jobs coming.

Today, we live in an age where information is at our fingertips. We can learn about anything with a tap of the finger. But in terms of preparing for a fundamental change in career trajectory, does a simple online web search for “How to” articles fully prepare one for the challenges of a mid-life career shift? Let’s explore the different modalities that are available today for acquiring new job skills and weigh their benefits and challenges.

Historically, job skills were transferred from the expert to an apprentice. While this modality still exists, apprenticeships are hard to find. But for those entering apprenticeship programs such as in the skilled trades (electrician, plumber, welder, etc.), these relationships provide more than merely the knowledge transfer of skill. Many apprentices benefit from the wisdom and insight passed on by their mentor, who helps to prepare them for the greater challenges of life.

Within the last forty years, a dramatic increase in demand for information workers has changed this model. The speed at which the expertise for new tools must be relayed, and the speed at which those tools change, has resulted in an employee training industry to fill the gap between trade schools and university education.

Initially, these employee training programs were conducted in classroom-like settings. Each student was seated in front of a computer, facing the instructor at the front. The instructor would explain the technology, how to operate it and why it is done a certain way. The natural interaction between instructor and students, and among the students themselves, led to a rich, highly collaborative experience.

The biggest drawback to these in-person training sessions was the associated travel cost. Some topics and technologies did not have a high demand for training, and thus training events were limited. These highly focused events would be delivered on a limited schedule and at specific locations. This, in turn, forced companies to add a travel expense component to their already limited training budgets.

In the mid-1990s, training companies began to explore recording and distributing their training as a response to this growing budget consciousness. To a large extent, this pre-recorded training was able to provide a means for information to be propagated. And for some topics, this worked well. However, it was quickly realized that pre-recorded technical training was nearly obsolete by the time it was produced. Gone also was the camaraderie of the classroom, and the sidebar conversations that enrich the learning experience.

With the expansion of the reach of the Internet, by 2001 training companies were developing tools for creating the classroom experience while eliminating the travel expense. Suddenly, a whole new world of opportunity opened as the lifting of geographical barriers allowed for an increase in frequency of the training classes. Instead of relying on one local market to fill a class, students from around the world could sign up and attend live classes taught by an instructor in real-time. Sidebar conversations could still happen, and the interaction among students and the instructor allowed for a much richer, bi-directional experience.

Today, with travel restrictions in place and the explosion in work-from-home, this online live training modality has allowed employers and organizations to not only keep in touch with their employees, but also to continue their training and development programs. And with nearly two decades of development, online live training has been embraced my many organizations. While nothing can ever replace the immediacy of being in a room together, online live truly provides the best of both worlds.

I suppose if my uncle were still in the workforce, he would most likely be a webcam repairman by now.

One of the easiest ways to stay on track with an activity is to make a list. For many people, business development doesn’t come naturally making it easy to put off. By making and sticking to a list, you will begin to form a habit around business development to the point you eventually don’t even know you are doing it.

I have used contact lists with lawyers for years as a simple reminder of people that the lawyer wants or should keep in touch with throughout the year. The best part is that it works at every level of practice.

A list allows you to focus your efforts and prioritize one-to-one marketing. If you are early in your career, your top 20 may include 10 lawyers at your firm, 5 colleagues from law school and 5 clients you are working with. Later in your career it may include 8 of your top performing clients, 4 clients you are trying to get more work from, 4 potential new clients, 2 people from the media and 2 people on boards or committees you want to be part of. Everyone’s list is different and names can be shuffled in and out throughout the year which is part of its beauty. Using your list is equally simple:

• Look at your list daily
• Focus on what you can do for the people on your list
• Share information – phone, text, email, Zoom, it doesn’t matter but find a way to be in front of them
• Watch how opportunities present themselves
• Your list will change as your redefine your network needs
• Understand you are building or nurturing relationships
  
  

Your list will become part of your written goals for the year and allow you to create meaningful and substantive relationships. It provides the evidence that you are organized, efficient and dedicated to business development. By actively engaging in your list, you can better evaluate where offers fit with your career goals.

By working your list don’t be surprised that people begin to think of you as the authority on tough issues. As you stay in regular contact with the group, you will understand their needs and they will see you as someone that tackles the tough issues.

The great thing about making a list is it is easy to manage and if there are 20 names on it and if that is too many, try 15 or 10, it is easy to make your own. It is one side of one piece of paper. You can post it in your office as a reminder to connect. Working your list daily will change your habits around business development to where it becomes normal rather than a burden.

So for 2021, if you do one thing, make a list.

Finally, 2020 is ending, and with it comes a glimmer of hope for a brighter New Year.  The promise of a vaccine brings a renewed sense of optimism for 2021.  However, it is important not to forget the lessons of this year. Firms are not inoculated from the mistakes of the past, and it is critical not to repeat them as clients will be a lot less forgiving.  Equally important will be the lessons learned from these mistakes.

The following are five key lessons that firms should learn from going forward:

Lesson#1:  Precedent Matters In Law, Not In Business

The firms that best weathered the pandemic were those that had adopted technology and leveraged cloud-based applications and had software as a service (“SaaS”) which is software that is licensed on a subscription basis and is centrally hosted.  These same firms utilized hardware as a service (HaaS) which is a service provisioning model where a business can get IT equipment on rent from a managed services provider.  Firms at the crest of the wave utilized both models in advance of many of their peers in the industry. 

Moreover, many firms were paralyzed during the past few months – what are the other law firms in town doing?  While there is value in sharing information and in a rich exchange of ideas, business decisions are often made with little information and must be made quickly and decisively.  No decision is often the worse decision of all.

For instance, the decision to reduce salaries or cut partner draws during a pandemic needs to be based on the unique circumstances of the firm.  One strategy does not fit all.

Lesson#2:  The Old Debate Of Whether Law Is A Business, Or A Profession Is Finally Over 

We are fortunate to work in a profession that is an essential business, and therefore, we faced minimal disruption compared to many other businesses this past year.  However, a business it most certainly is.

It is time for law firms to adopt a business governance model whereby firms are led by professionals who are trained in business management.  Consensus management, and decisions made by a group of partners with no business training, cannot be made at the speed of business.  Nor are consensus decisions the best decision, they are just the most palatable and most often lead to no decision be taken at all.

Business leaders know to focus on the financial health of the business.  Financial health, not only to bring good returns to the shareholders (partners) but financial health to weather unknown storms like a pandemic or whatever else may be in store in the coming years.  Measuring and managing KPIs and holding lawyers accountable for their performance.

Lesson#3:  Trust Your Employees

Before the pandemic, many law firms would never have allowed staff to work from home (WFH”). Employees must be seen.  They must work in the same location as the lawyer they are supporting.  Well, that thinking has been shattered.

Most firms are reporting increased or stable productivity in this WFH environment.  Employees feel valued, trusted, and empowered.  As Peter Drucker famously said, “Culture eats strategy for breakfast”.  Firms with a culture of trust and respect are reaping the rewards. 

We predict culture to be an even more important aspect of talent acquisition as employees will flock to the firms that are embracing a personalized work environment with a hybrid of working in the office and at home.

Lesson #4:  Agility Is Key

In the McKinsey article “Agility: It Rhymes with Stability”, they summarize that “today’s environment is pressing organizations to become more agile; In a rapidly changing commercial and social environment, some organizations are born agile, some achieve agility, and some have agility thrust upon them.”

Law firms are having agility thrust upon them.   However, many are simply waiting for things to go back to “normal” and burying their heads in the sand.  Where there is challenge and disruption there is opportunity.  The winners in this market will be those who are agile and embrace the opportunity.  What is your firm doing to leverage that opportunity? What are you going to do differently in 2021?

Perhaps one of the most overused words this year was the idea of having to “pivot”.  People may have tired of the word, but the concept that firms need to be agile to embrace the current and future environment is key.  How is your firm going to pivot and thrive in 2021?

Lesson#5:  Client-Centric Model

A customer/client centric organization fosters a positive client experience at every stage of the client journey. For too long firms felt it was enough to say they were “client centric”. Also, for too long law firms have given little thought to what it is like to work with them from the client’s perspective.  Not enough thought has been given to the client’s experience as they do business with you.

Why would a client want to drive to your location, or pay for you to fly to their office, when the meeting could be done by video?  The past year has taught us that clients are happy with video conferencing and enjoy the efficiencies and savings that come with it. 

We need to focus on the client’s journey within our firms.  How easy are you to do business with?  How responsive are the lawyers on your team?  Are you providing value to your clients?  Do you communicate clearly about your fees?

“I believe that nothing is more important to our ability to effectively address our present than understanding the lessons learned from those who have come before us”.   - Charlie Gonzalez

The pandemic has reinforced that there are no cookie cutter solutions to the challenges faced by your firm. Even though there are common lessons that can be taken from 2020, the response by your firm must be specifically tailored to your business purpose, values, and strengths.

The events of this year have changed every aspect of our daily lives and created a new normal no one could have predicted. The Covid-19 pandemic quickly became the reason why healthcare services moved online and in-home appointments increased within the Greater Toronto Area. 

Pre-Pandemic

Corporate Wellness sessions used to take place in various offices around Toronto. Many people went into clinics for massage therapy, physiotherapy, chiropody/podiatry and orthotic appointments. When the Covid-19 pandemic was declared in mid March 2020, everything changed. We were all encouraged to stay home, and we all learned to adapt throughout the evolving situation. 

Corporate Wellness at Home 

Health and wellness started to be offered to people in their home offices through online lunch and learn sessions, mindfulness meditation and even yoga. The various sessions were facilitated by certified healthcare professionals, including a registered Psychologist, Physiotherapist, Dietitian, Naturopathic Doctor, Holistic Nutritionist, Yoga and Meditation Instructor.

Healthcare at Home

Advancements in technology enabled many healthcare providers to pivot towards virtual sessions and appointments. Even with such great ways to connect online, there are still some appointments that require in-person services. There is no way to replace the long lasting benefits of a physical massage or manual physiotherapy treatments. 

People everywhere quickly adapted to the evolving situation and provided massage therapy, physiotherapy, chiropody, podiatry and orthotics treatments in homes across Toronto. Outdoor appointments became increasingly popular with patients enjoying a massage in their backyard or anywhere of their choosing in the comfort and safety of their home. 

The Value of Personal Connection

While a quick, seamless booking system is very convenient, healthcare often comes with a side order of questions that vary from patient to patient.  People around the world are more on edge than ever before and when it comes to booking a healthcare appointment, having a real person to answer all of your questions, develop some rapport and walk you through the entire booking process is one that has proven effective for many clinics … especially in our current environment.