May 2004

1. ABA wins their lawsuit against the FTC
2. How do you achieve excellence in your professional practice?

Articles

1. ABA wins their lawsuit against the FTC

   Passed in the 106th Congress, Title V of the Gramm-Leach-Bliley Act of 1999 requires financial institutions to provide to their customers notice of their policies for the protection of individually identifiable personal information, as well as opportunity to opt out of most disclosures of such information to third parties. Regulations were promulgated pursuant to the Act and implemented on November 30, 2000. The Federal Trade Commission (FTC) is authorized to enforce this privacy protection provision.

   The Commission interprets "financial institution" to include businesses "significantly engaged in financial activities" of the nature described in the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)) as well as other activities designated and to be designated by the Federal Reserve Board. This broad definition includes such activities as:

   Leasing real or personal property or advising in such leasing; Debt collecting; Financial advisory activities, including management consulting and counseling activities; and Tax planning, preparation and advising.

   Law firms and sole practitioners "significantly engaged in financial activities" are considered financial institutions by the FTC and are subject to the requirements of the Act.

   While institutional or corporate clients are not considered "consumers" under the Act, service to such clients may be counted to determine the level of financial activity a law firm or division within a firm is engaged in and whether notice to persons who are clients is required.

   The American Bar Association opposed the imposition of these rules on lawyers on the following grounds: Attorneys are already bound both by an ethical duty of confidentiality and by contractual agreements that prevent such use of their client’s information.

   Enforcement of these rules would infringe upon the attorney-client relationship and could potentially destroy attorney-client privilege in certain circumstances.

   These rules would impose an undue burden upon small firms and sole practitioners. State regulation of the legal profession provides a higher degree of privacy protection than is afforded by this Act.

   Congress’s intent in passing this Act is clear. This Act is to prevent the indiscriminate use of personally identifiable information for marketing, profiling and other commercial purposes. The ABA said that the practice of law should be exempted from these requirements. The Court said it agreed with the ABA.

2. How do you achieve excellence in your professional practice?

   We are creatures of habit, and thus our habits define who we are. "Good habits are hard to develop but easy to live with. Bad habits are easy to develop but hard to live with," said one of the wealthiest men in America, Nido Qubein, speaking before an audience of consultants gathered at the Institute of Management Consultants conference in Nashville.

   Qubein is also chairman of a bank, principle shareholder of Great Harvest Bread Company and has written 20 books. Click here to read more. He listed 12 habits that will make you excellent as a professional, as well as bring you tons of business.

   1. Every single day, call or write four clients or prospects. That's 20 people a week, 1,000 people a year. "I cannot tell you the power of this idea," he said. "Remember, if you are out of sight, you're out of mind."

   2. Keep your desk clean. Treat every day as the day before a vacation. "Don't delay until tomorrow what you can do today."

   3. Read one hour a day. "If you go to the bathroom five times a day, you've got time to read. He saves the morning paper for the evening. "I can wash down pretty much anything with a good glass or Merlot."

   4. Ask yourself, "what did I do today to create new business?"

   5. Pay yourself first. He's done this every day since he was 23 and was working 17 hours a day. Today he's 55 and this simple habit has created a fund that allows him to invest in other businesses.

   6. Always work from the "is" and the "does" takes care of itself. What is your identity? How do you see yourself. Even when he was poor, he knew that poverty is a temporary status. "Wealth is a state of mind."

   7. Don't work "slowly but surely," work slowly and cumulatively. It's the little things we do that amount to something worthwhile and add up to great relationships with clients.

   8. Your success depends on the choices you make, not the circumstances you find yourself in. Nido said the greatest choice he's ever made was to become a transformational consultant, not a transactional consultant. The former not only solves the client's problem, but influences them in measurable and lasting ways. "It's the difference from having insight and having impact."

   9. Seek brand insistence, not mere brand preference. Simple preference is not enough. "Pepsi is branded in my mind, but I don't drink it," he said. All you need is a dozen clients who insist on using you. You want your clients to say, "I need you in my life." You can't be just nice to have around or someone who has some information clients need at the moment.

   10. Don't make the grave error of seeking fame and not fortune. If you want fame, you can buy it. "I'd rather have eight clients who insist on having me than 1,000 clients who have heard of me," he said.

   11. Every day when you go to sleep, ask yourself, "what did I learn today?" You should try to learn something new every single day. The more you know, the more you will be able to apply it to your practice.

   12. Build your reputation. "If someone were to ask your clients behind your back, what would they say about you? Would they say you're a good guy but when you're gone they'll hire someone else?" When we know what our clients think about us, we truly know something valuable.