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published January 16, 2006
Andrew Tan
The moral of the tale? Like the technique used by the eldest brother, the ideal situation for any individual would be to create plans for any possible disaster or conflict so that when problems arise, the problem will be remedied before it gets worse. When it comes to the law business, this would be the equivalent of creating contingency plans for every possible type of problem that could arise. Because law firms are also businesses, they must also take note of business considerations. One of these is having a disaster plan for every possible event that could negatively affect business operations.
The types of problems that could arise for a law firm can range from something minor like a power outage to a more extreme case like a major earthquake or flood. However, other problems can include employee fraud, hackers, or losing key personnel to accidents, health problems, or competitors. As such, like those “Worst Case Scenario” guidebooks that can be found at bookstores, it might be a good idea to create something similar for the firm.
The first step towards securing the firm against all potential disasters would be to get all the partners and supervisory personnel together and brainstorm a list of foreseeable problems that might arise given the location. That way, the answers to questions like “Who else has access to the client files if a managing partner is not present?” or “Who will notify the clients, employees, and vendors if the building is destroyed?” can be quickly provided and remedies carried out.
Some practical suggestions that would get rid of the majority of problems include:
Have a communication plan. Communication is essential to the success of any endeavor. As such, a plan for communicating with clients, letting them know that the firm is still in business and can attend to their needs is necessary. Additionally, a plan for communicating with employees is good so that employees will know what is going on and the clients can be served in a more efficient manner. Provide an emergency contact number so that they will know where to go to for work and how to contact others. If the firm has a website, the emergency number can be posted there. Alternatively, a phone chain can be used to keep everyone in contact with each other.
Keep backup copies of all important information. Keeping client files, contact information, billing records, and other information necessary for daily operations at an off-site location is a good idea. This will ensure the firm stays in business in the event of most disasters.
1. Create a plan for continuing critical processes. This can mean making allowances for an emergency payroll and accounts payable processing because employees will still expect to get paid for work done in the past.
Review the firm’s insurance policies. By determining what is and what is not covered by insurance, the firm will know how to cover itself in an emergency. Suggestions range from creating an “emergency fund” to pay for any unforeseeable circumstances not covered by insurance to buying additional insurance to compensate for the shortcomings. For example, if the firm is located in an earthquake-prone area like California, it would be a good idea to make sure that the insurance policy covers earthquakes.
Although the elder brothers in the tale make preparing for problems seem easy, creating a disaster plan will take a great deal of time and effort. However, it will pay off in the event of an emergency, because the firm will not be scrambling to find solutions after the fact. Not being prepared can mean either loss of business or worse, putting the firm out of business. Ultimately, the creation of a disaster plan means that the firm is putting its clients first, particularly those that depend on the firm for their financial well-being.
Thomas Cleary, Sun Tzu, Art of War 5 (2005).
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