Five Disasters Waiting To Hit Law FirmsFebruary 12, 2015 – In The News
Stephanie Resnick was featured in the Law360 article, "Five Disasters Waiting To Hit Law Firms." Full text can be found in the February 12, 2015, issue, but a synopsis is noted below.
While advances in technology have made it simpler for law firms to manage data and for employees to work remotely, the shift has also brought to light issues that could be disastrous for firms.
As with many industries, law firms face a major threat from the growing risk of hackers targeting their systems for the valuable data they contain.
"Hacking is the hot topic of the day, and law firms that are not willing to put a significant amount of resources into data privacy to ensure that their systems can't be hacked are going to face a serious problem, especially from clients who are looking to the law firm [to] have in place whatever is necessary to block those hackers," said Stephanie Resnick.
Aside from data risks, firms also face potential disaster when it comes to compensating employees for their work in an age where technology has made it easier for employees to work from anywhere.
Firms also face the risk of backlash from salaried partners and other nonexempt employees who feel they are not being fairly compensated. These disputes often lead to unrest and even defections, which could damage the firm’s reputation.
"Firms that are not particularly transparent tend to end up with more issues vis-a-vis the partnership ranks," said Resnick. "If you are transparent with firm partners, you're far better off than in a closed compensation and closed management system."
Transparency is vital for firms when it comes to succession planning as well, attorneys say.
"Succession planning needs to [be] done on a transparent level so that all of the partners understand early what the process is and that it is a fair and thoughtful process," Resnick said.