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Presented by Cynthia Sharp
• Professional CLE Speaker
• Attorney Business Coach
Event Sponsor:
Featuring
Cynthia Sharp
The Sharper Lawyer
2
STRATEGIES FOR TAKING
CHARGE OF YOUR LAW PRACTICE
March 17, 20...
Preliminary Thoughts
•I would be really happy if we could cover the following:
•I decided to attend “Take Charge” because:...
Strategic Skills
4
• Manage client expectations
• Create a culture of client communication
• Deliver top notch client serv...
Johari Window
What You Know About
Yourself And Everyone Else
Knows Too
What You Know About
Yourself But Nobody
Else Knows
...
“Insanity: doing the same
thing over and over again
and expecting different
results.”
- Albert Einstein
- Albert Einstein
...
Goal Setting Tips
7
• Aim high!
• Set specific goals
• Firm deadline
• Don’t allow current results to
control
• Know that ...
“A lawyer shall act with reasonable diligence and
promptness in representing a client.”
Rule 1.3: Diligence
8 @thesharperl...
Symptoms of Lack
of Diligence
• Failure to timely file pleadings
• Missed court appearances/meetings
• Files have grown mo...
Causes of Lack
of Diligence
• Too much work
• Procrastination
• Disorganization
• Incompetency
• Personal issues
10 @thesh...
“Procrastination is a mechanism for coping
with the anxiety associated with starting or
completing any task or decision.”
...
12 @thesharperlawyer
Activity Management Concept -
Covey Quadrant
I.
Urgent/Important
II.
Not Urgent/Important
III.
Urgent/Not Important
IV.
No...
The Ideal Week
14 @thesharperlawyer
The Ideal Week
15 @thesharperlawyer
The Ideal Week
16 @thesharperlawyer
The One Year Challenge
17 @thesharperlawyer
The One Year Challenge
18 @thesharperlawyer
19 @thesharperlawyer
What is Your Most
Powerful
Negotiation Tip?
20 @thesharperlawyer
Rule 1.4: Communication
(a) A lawyer shall:
(1) promptly inform the client of any decision or circumstance with respect to...
Communication with Person Represented By Counsel
“In representing a client, a lawyer shall not communicate
about the subje...
23 @thesharperlawyer
Strong Case
Management System
24 @thesharperlawyer
Develop Rapport
25 @thesharperlawyer
26
Ask Open Ended
Questions
@thesharperlawyer
Listen Actively
27 @thesharperlawyer
Keep Client Informed
28 @thesharperlawyer
Defining The Terms of
Client Service
•Retainer Agreement
•Non-engagement Letter
•Termination Letter
29 @thesharperlawyer
Retainer Agreement
30
•Responsibilities of Lawyer
•Obligations of Client
•Scope of Representation
•Lay Out Stages of Case
...
Retainer Agreement
31
• Grounds for Withdrawal
• Nonpayment
• Client Misrepresentation
• Failure to Cooperate
• Client Req...
Non-Engagement Letter
32
•Anytime You Don’t Accept Matter
•Recommend Second Opinion
•Be Brief and Polite
•Record of Transm...
Termination Letter
33
•Reason for Termination
•Conclusion
•Nonpayment
•Conflict Discovery
•Client Terminates
•Failure to C...
34
Termination Letter
•How to Obtain File
•Status of Fees
•Client Satisfaction Survey
•Ask for Referral
•Ask for Testimoni...
35
Client Relations
•Welcome Letter
•Client Satisfaction Survey
•Phone Appointments
@thesharperlawyer
Attorney
Competence
36
Rule 1.1
“A lawyer shall provide competent representation to a
client. Competent representation req...
Business Expertise
• Business Creator
• Business Operator
• Business Innovator
• People Developer
37 @thesharperlawyer
Improve Your Law Firm’s
Bottom Line
“A buck in the hand in worth two on the
books.”
- David Farber
38 @thesharperlawyer
Significance of Key
Performance Indicators
A KPI is any measurement
or statistic that is
quantifiable, reflects a
firm’s g...
KPI
•Effective Billing Rate
•Number of hours spent on project by
attorneys and professional staff.
•Assists in setting fut...
41
KPI
•Profit/Expense Ratio - This is determined by dividing
gross revenue by partner profit.
•Presume $300,000 gross rev...
•Number of New Matters Open This Year
•Presume average matter generates $3,000
in revenue
•Add new matters by increasing
c...
•CONVERSION RATE
•Number of Consulting Individuals Who Become
Clients
•Increase conversion rate through follow up
•Require...
•Number of New Matters for Existing
Clients
•Do your clients return for other matters?
•Do you maintain ongoing relationsh...
•Collection Realization Rate
•Percentage of billed work the firm
actually collects.
•Divide the amount billed to all clien...
•Billing Realization Rate.
•Percentage of recorded billable time
actually billed to clients.
•Billable time -1700 hours/ B...
•Billable Hours
•“A lawyer's time and advice are his
stock in trade”. Abraham Lincoln
•$250 per hour
•Additional 5 hours p...
•Increase in awareness will improve bottom line.
•Structuring law practice as efficient business increases
possibility tha...
Leverage Yourself
49 @thesharperlawyer
MEMOS
•In Ray James Madison
•In Ray John Smith
•In Ray Millicent Daniels
•In Ray Tammy Curry
@thesharperlawyer
“Leadership is the
art of getting
someone else to
do something you
want done
because he wants
to do it.”
Dwight D. Eisenho...
“The Buck
Stops Here”
Popularized by Harry S Truman
52 @thesharperlawyer
Delegation Dynamics
53
•The Fundamental Process
•Delegation Reluctance
•Problematic Delegation
Problems
•Action Plan - Mov...
Setting the Stage
•Organization Chart
•Regular Staff Meetings
•SOP Manual
•Culture of Trust
The Fundamental Process
54 @th...
Types of Delegation
•BASIC: Expectation is to follow instructions
explicitly
•CHALLENGING: Responsibility for an outcome
T...
The Responsibility Shift
56 @thesharperlawyer
The Responsibility Shift
57 @thesharperlawyer
•Review the assignment. Loose ends?
•Clearly define the responsibility to be
assigned
•Who is right for the job?
•Team Att...
•Specificity as to end result
•Explicit authority (or lack
thereof)Available resources Set
specific deadlines
•Set specifi...
•Confirm understanding of assignment
•Encourage QuestionsSupport and
Communicate Give Feedback
The Fundamental Process
The...
•Discourage Upward Delegation
•Watch Out for Re-delegation
The Fundamental Process
61 @thesharperlawyer
Delegation Reluctance
“Old habits die hard.”
~ English Proverb
62 @thesharperlawyer
•Nobody does it better
•Not enough time
•Fear of Resentment
•Unclear as to Authority
Delegation Reluctance
63 @thesharperl...
Problematic Delegation Styles
Procrastination
64 @thesharperlawyer
Problematic Delegation Styles
Micromanagement
65 @thesharperlawyer
Problematic Delegation Styles
Dump and Run
66 @thesharperlawyer
The Mistake Process
“Mistakes are a part of being human.
Appreciate your mistakes for what
they are: precious life lessons...
The Mistake Process
Delegator
•Private Discussions
•Support with Corrective Measures
•What is the “Learning”?
68 @thesharp...
The Mistake Process
Delegatee
•Confess quickly (if you
find the mistake)
•Ask for support where
needed
•Create process to ...
MRPC 5.1 Responsibilities Of Partners,Managers, And Supervisory
LawyersMRPC 5.2 Responsibilities Of A Subordinate LawyerMR...
The Reality Focus
Self Assessment Tool
71 @thesharperlawyer
Work/Life Balance
72 @thesharperlawyer
Take Charge Plan
73 @thesharperlawyer
Four Decisions
•Decide what you want
•Decide what you will give
up to get what you want
•Decide to take personal
responsib...
“If you plan on being
anything less than you are
capable of being, you will
probably be unhappy all
the days of your life....
Moving Forward
•Did you learn anything new today?
•Did you gain any insight into yourself or someone else?
•Do you plan to...
Evaluations
77 @thesharperlawyer
@thesharperlawyer
Connect with Cindy
like us follow us follow us share with us
The Sharper Lawyer
connect with us
@thesharperlawyer
The Sharper Lawyer
now offers
a complimentary
half hour coaching session.
Email Cindy for more details!
cindy@thesharperla...
Thank You
The Sharper Lawyer
www.thesharperlawyer.com
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STRATEGIES FOR TAKING CHARGE OF YOUR LAW PRACTICE - PBI 2014

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The lawyer/client relationship is based on service. The Rules of Professional Conduct contain specific guidance on the following service related topics: Duty to Act Competently, Diligence and Communication. We will discuss these topics in the context of a review of the relevant Rules of Professional Conduct as well as pertinent case law and advisory opinions issued rendered by the Nebraska Ethics Advisory Opinions for Attorneys.

By staying organized and running your practice efficiently, you lessen your chances of violating MRPC 1.3 (Diligence) because you will by and large be on top of your work load. I will introduce several practice management and activity mastery strategies that participants can incorporate immediately into their practices as well as day to day personal lives. Tools that will assist with organization and self management will be provided along with a detailed explanation as to how the diligent and persistent use of these tools can help you achieve balance in personal as well as professional lives.

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  • Welcome.
    Thank LSI
    Thank audience (other options etc)
    After my formal remarks, I meet you. You ask Qs
  • Now let’s get down to work. Choice over the next 3 hours (minimum or participate)
    The handouts were available for upload. You will get the most out of this session if you begin working with the tools
    provided in the handout as I refer to them. For now, if you could focus your thoughts on reasons you came to this session
    What will it take for you to rate this webinar an Excellent. Just remember that your participation is key
  • Normally, attorneys from all different backgrounds and practice areas attend. Private
    (all sizes), Corp, govt, retired bec. the principles apply everywhere
    Emphasis - structure yourself and practice to avoid ethics infractions
    Soft skills (diligence/communication) top infractions.
    You will start incorporating the concepts and tools into your life/practice TODAY
  • pp. 4 - 5 handout
  • Rules for Missouri and NC in material. 8 - 11 Ga attys can email me for copy
    Georgia - The maximum penalty for violation of this rule is disbarment.
  • p. 12 materials
  • pp. 13 and 14
  • pp. 15 - 16
  • Rules pp. 23 - 28
  • Rules pp. 29 - 37
  • Client Welcome Letter pp. 38,39
  • Client Satisfaction Survey p. 40
  • Business plan
    Marketing Plan/Improve rainmaking capabilities
    Practice manuals/SOPs/Infrastructure for efficient delivery of legal services.
  • - Successful practice starts with leadership who pays attention to firm’s financial indicators
    and takes strategic action when they are off course.
    - Can increase net profit without working harder if you run your practice like a business/
    focus on highly profitable activities. Develop practice management skills.
  • -Jumbo Jet story
    - Firm grasp will allow attorney to set attainable yet challenging goals, assess/reassess.
    - Informed decisions that can be promptly implemented
    - Aware of adjustments that need to be made in the firm’s structure in order to improve the firm’s overall financial performance.
    - Or you could let your firm run you.
  • Even if flat fee or contingent attorneys
  • An attorney who tracks the above information closely and responds accordingly by developing focused strategies will not only improve bottom line but will also build a practice that could be sold.
    However, lawyers are steeped in the long tradition of simply “winding down” practices, essentially abandoning a valuable asset. Indeed, as pointed out by Michael Gerber, “..most legal practices are jobs for the attorneys who own them.” This paradigm survives in large part because of continued outdated attitudes, lack of training in business principles and the scarcity of guidance as to the sales process. Indeed, the concept remains in its nascent stages even though Model Rule of Professional Conduct 1.17 established the ethical requirements for the sale of a practice over 30 years ago.
  • Transcript of "STRATEGIES FOR TAKING CHARGE OF YOUR LAW PRACTICE - PBI 2014"

    1. 1. Presented by Cynthia Sharp • Professional CLE Speaker • Attorney Business Coach
    2. 2. Event Sponsor: Featuring Cynthia Sharp The Sharper Lawyer 2 STRATEGIES FOR TAKING CHARGE OF YOUR LAW PRACTICE March 17, 2014 @thesharperlawyer
    3. 3. Preliminary Thoughts •I would be really happy if we could cover the following: •I decided to attend “Take Charge” because: 3 @thesharperlawyer
    4. 4. Strategic Skills 4 • Manage client expectations • Create a culture of client communication • Deliver top notch client service • Develop a powerful & loyal staff • Stay on top of pending cases • Minimize daily stress & irritation @thesharperlawyer
    5. 5. Johari Window What You Know About Yourself And Everyone Else Knows Too What You Know About Yourself But Nobody Else Knows What Everyone Else Knows About You But You Don’t Know What You Don’t Know About Yourself And Nobody Else Knows Either 5 @thesharperlawyer
    6. 6. “Insanity: doing the same thing over and over again and expecting different results.” - Albert Einstein - Albert Einstein 6 @thesharperlawyer
    7. 7. Goal Setting Tips 7 • Aim high! • Set specific goals • Firm deadline • Don’t allow current results to control • Know that you are worthy! • Take action even if you don’t know all steps @thesharperlawyer
    8. 8. “A lawyer shall act with reasonable diligence and promptness in representing a client.” Rule 1.3: Diligence 8 @thesharperlawyer
    9. 9. Symptoms of Lack of Diligence • Failure to timely file pleadings • Missed court appearances/meetings • Files have grown mold • Numerous requests for extension 9 @thesharperlawyer
    10. 10. Causes of Lack of Diligence • Too much work • Procrastination • Disorganization • Incompetency • Personal issues 10 @thesharperlawyer
    11. 11. “Procrastination is a mechanism for coping with the anxiety associated with starting or completing any task or decision.” - Neil Fiore, Ph.D. 11 @thesharperlawyer
    12. 12. 12 @thesharperlawyer
    13. 13. Activity Management Concept - Covey Quadrant I. Urgent/Important II. Not Urgent/Important III. Urgent/Not Important IV. Not Urgent/Not Important 13 @thesharperlawyer
    14. 14. The Ideal Week 14 @thesharperlawyer
    15. 15. The Ideal Week 15 @thesharperlawyer
    16. 16. The Ideal Week 16 @thesharperlawyer
    17. 17. The One Year Challenge 17 @thesharperlawyer
    18. 18. The One Year Challenge 18 @thesharperlawyer
    19. 19. 19 @thesharperlawyer
    20. 20. What is Your Most Powerful Negotiation Tip? 20 @thesharperlawyer
    21. 21. Rule 1.4: Communication (a) A lawyer shall: (1) promptly inform the client of any decision or circumstance with respect to which the client’s informed consent, as defined in Rule 1.0(e), is required by these Rules; (2) reasonably consult with the client about the means by which the client’s objectives are to be accomplished; (3) keep the client reasonably informed about the status of the matter; (4) promptly comply with reasonable requests for information; and (5) consult with the client about any relevant limitation on the lawyer’s conduct when the lawyer knows that the client expects assistance not permitted by the Rules of Professional Conduct or other law. (b) A lawyer shall explain a matter to the extent reasonably necessary to permit the client to make informed decisions regarding the representation. (c) A lawyer in private practice shall inform a new client in writing if the lawyer does not have professional liability insurance of at least $100,000 per occurrence and $300,000 in the aggregate per year, subject to commercially reasonable deductibles, retention or co-insurance, and shall inform existing clients in writing at any time the lawyer’s professional liability insurance drops below either of those amounts or the lawyer’s professional liability insurance is terminated. A lawyer shall maintain a record of these disclosures for six years after the termination of the representation of a client. 21 @thesharperlawyer
    22. 22. Communication with Person Represented By Counsel “In representing a client, a lawyer shall not communicate about the subject of the representation with a person the lawyer knows to be represented by another lawyer in the matter, unless the lawyer has the consent of the other lawyer or is authorized to do so by law or a court order.” Rule 4.2 22 @thesharperlawyer
    23. 23. 23 @thesharperlawyer
    24. 24. Strong Case Management System 24 @thesharperlawyer
    25. 25. Develop Rapport 25 @thesharperlawyer
    26. 26. 26 Ask Open Ended Questions @thesharperlawyer
    27. 27. Listen Actively 27 @thesharperlawyer
    28. 28. Keep Client Informed 28 @thesharperlawyer
    29. 29. Defining The Terms of Client Service •Retainer Agreement •Non-engagement Letter •Termination Letter 29 @thesharperlawyer
    30. 30. Retainer Agreement 30 •Responsibilities of Lawyer •Obligations of Client •Scope of Representation •Lay Out Stages of Case •Payment of Costs •Retainer Policy •Billing and Payment Policies @thesharperlawyer
    31. 31. Retainer Agreement 31 • Grounds for Withdrawal • Nonpayment • Client Misrepresentation • Failure to Cooperate • Client Requests Unethical Behavior • Include Sunset Provision • New Agreement for Each Matter @thesharperlawyer
    32. 32. Non-Engagement Letter 32 •Anytime You Don’t Accept Matter •Recommend Second Opinion •Be Brief and Polite •Record of Transmittal @thesharperlawyer
    33. 33. Termination Letter 33 •Reason for Termination •Conclusion •Nonpayment •Conflict Discovery •Client Terminates •Failure to Cooperate @thesharperlawyer
    34. 34. 34 Termination Letter •How to Obtain File •Status of Fees •Client Satisfaction Survey •Ask for Referral •Ask for Testimonial @thesharperlawyer
    35. 35. 35 Client Relations •Welcome Letter •Client Satisfaction Survey •Phone Appointments @thesharperlawyer
    36. 36. Attorney Competence 36 Rule 1.1 “A lawyer shall provide competent representation to a client. Competent representation requires the legal knowledge, skill, thoroughness and preparation reasonably necessary for the representation.” @thesharperlawyer
    37. 37. Business Expertise • Business Creator • Business Operator • Business Innovator • People Developer 37 @thesharperlawyer
    38. 38. Improve Your Law Firm’s Bottom Line “A buck in the hand in worth two on the books.” - David Farber 38 @thesharperlawyer
    39. 39. Significance of Key Performance Indicators A KPI is any measurement or statistic that is quantifiable, reflects a firm’s goals, and is viewed as key to its short and long term success. 39 @thesharperlawyer
    40. 40. KPI •Effective Billing Rate •Number of hours spent on project by attorneys and professional staff. •Assists in setting future rates and in ascertaining whether a particular practice area is profitable. 40 @thesharperlawyer
    41. 41. 41 KPI •Profit/Expense Ratio - This is determined by dividing gross revenue by partner profit. •Presume $300,000 gross revenue and $140,000 in expenses. •Profit/Expense Ratio - 53% @thesharperlawyer
    42. 42. •Number of New Matters Open This Year •Presume average matter generates $3,000 in revenue •Add new matters by increasing conversion rate •1 new matter per month = $36,000 additional revenue per year. 42 KPI @thesharperlawyer
    43. 43. •CONVERSION RATE •Number of Consulting Individuals Who Become Clients •Increase conversion rate through follow up •Requires follow up 43 KPI @thesharperlawyer
    44. 44. •Number of New Matters for Existing Clients •Do your clients return for other matters? •Do you maintain ongoing relationships with clients? •Data Base •Newsletters •Informational Pieces •Seminars 44 KPI @thesharperlawyer
    45. 45. •Collection Realization Rate •Percentage of billed work the firm actually collects. •Divide the amount billed to all clients by the amount of those bills collected. •Bill 1500/Collect 1200 CRR = 80%. 45 KPI @thesharperlawyer
    46. 46. •Billing Realization Rate. •Percentage of recorded billable time actually billed to clients. •Billable time -1700 hours/ Billed time 1500 hours BRR 88% 46 KPI @thesharperlawyer
    47. 47. •Billable Hours •“A lawyer's time and advice are his stock in trade”. Abraham Lincoln •$250 per hour •Additional 5 hours per month = $15,000 per year 47 KPI @thesharperlawyer
    48. 48. •Increase in awareness will improve bottom line. •Structuring law practice as efficient business increases possibility that practice can be sold in the marketplace, thereby ultimately increasing the attorney’s net worth. 48 Building a Practice to Sell @thesharperlawyer
    49. 49. Leverage Yourself 49 @thesharperlawyer
    50. 50. MEMOS •In Ray James Madison •In Ray John Smith •In Ray Millicent Daniels •In Ray Tammy Curry @thesharperlawyer
    51. 51. “Leadership is the art of getting someone else to do something you want done because he wants to do it.” Dwight D. Eisenhower 34th President of the United States 51 @thesharperlawyer
    52. 52. “The Buck Stops Here” Popularized by Harry S Truman 52 @thesharperlawyer
    53. 53. Delegation Dynamics 53 •The Fundamental Process •Delegation Reluctance •Problematic Delegation Problems •Action Plan - Moving Forward @thesharperlawyer
    54. 54. Setting the Stage •Organization Chart •Regular Staff Meetings •SOP Manual •Culture of Trust The Fundamental Process 54 @thesharperlawyer
    55. 55. Types of Delegation •BASIC: Expectation is to follow instructions explicitly •CHALLENGING: Responsibility for an outcome The Fundamental Process What can I delegate? 55 @thesharperlawyer
    56. 56. The Responsibility Shift 56 @thesharperlawyer
    57. 57. The Responsibility Shift 57 @thesharperlawyer
    58. 58. •Review the assignment. Loose ends? •Clearly define the responsibility to be assigned •Who is right for the job? •Team Attitude The Fundamental Process The Preparation Phase 58 @thesharperlawyer
    59. 59. •Specificity as to end result •Explicit authority (or lack thereof)Available resources Set specific deadlines •Set specific deadlines The Fundamental Process The Explanation Phase 59 @thesharperlawyer
    60. 60. •Confirm understanding of assignment •Encourage QuestionsSupport and Communicate Give Feedback The Fundamental Process The Conversation Phase 60 @thesharperlawyer
    61. 61. •Discourage Upward Delegation •Watch Out for Re-delegation The Fundamental Process 61 @thesharperlawyer
    62. 62. Delegation Reluctance “Old habits die hard.” ~ English Proverb 62 @thesharperlawyer
    63. 63. •Nobody does it better •Not enough time •Fear of Resentment •Unclear as to Authority Delegation Reluctance 63 @thesharperlawyer
    64. 64. Problematic Delegation Styles Procrastination 64 @thesharperlawyer
    65. 65. Problematic Delegation Styles Micromanagement 65 @thesharperlawyer
    66. 66. Problematic Delegation Styles Dump and Run 66 @thesharperlawyer
    67. 67. The Mistake Process “Mistakes are a part of being human. Appreciate your mistakes for what they are: precious life lessons that can only be learned the hard way. Unless it's a fatal mistake, which, at least, others can learn from.” ~ Al Franken, "Oh, the Things I Know", 2002 67 @thesharperlawyer
    68. 68. The Mistake Process Delegator •Private Discussions •Support with Corrective Measures •What is the “Learning”? 68 @thesharperlawyer
    69. 69. The Mistake Process Delegatee •Confess quickly (if you find the mistake) •Ask for support where needed •Create process to avoid similar errors 69 @thesharperlawyer
    70. 70. MRPC 5.1 Responsibilities Of Partners,Managers, And Supervisory LawyersMRPC 5.2 Responsibilities Of A Subordinate LawyerMRPC 5.3 Responsibilities Regarding Nonlawyer Assistants 70 @thesharperlawyer
    71. 71. The Reality Focus Self Assessment Tool 71 @thesharperlawyer
    72. 72. Work/Life Balance 72 @thesharperlawyer
    73. 73. Take Charge Plan 73 @thesharperlawyer
    74. 74. Four Decisions •Decide what you want •Decide what you will give up to get what you want •Decide to take personal responsibility •Decide what value and service you are going to offer74 @thesharperlawyer
    75. 75. “If you plan on being anything less than you are capable of being, you will probably be unhappy all the days of your life.” - Abraham Maslow - Abraham Maslow - Abraham Maslow 75 @thesharperlawyer
    76. 76. Moving Forward •Did you learn anything new today? •Did you gain any insight into yourself or someone else? •Do you plan to change any of your behaviors as a result of today’s session? @thesharperlawyer
    77. 77. Evaluations 77 @thesharperlawyer
    78. 78. @thesharperlawyer
    79. 79. Connect with Cindy like us follow us follow us share with us The Sharper Lawyer connect with us @thesharperlawyer
    80. 80. The Sharper Lawyer now offers a complimentary half hour coaching session. Email Cindy for more details! cindy@thesharperlawyer.com @thesharperlawyer
    81. 81. Thank You The Sharper Lawyer www.thesharperlawyer.com
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