Law Firm Management

Money talks

By a:1:{i:0;s:1:" ";} | July 30, 2008

Law firms are reporting that clients are becoming more fee-sensitive, thanks to the economic gloom - winning work at the right price is becoming harder. So how do you handle fee resistance and negotiate the right deal for the client and your firm?The first obstruction to successful fee negotiations is often the mindset of the negotiator. Those who lack confidence in their fees and/or do not see the value in their proposition tend to be less successful than those who do. In a recent workshop, we met a lawyer who said he "struggled to close deals". In the session, it became clear that his lack of confidence coloured his whole approach to client meetings. He really believed clients were fee-resistant and everything they said seemed to reinforce his view; his lack of confidence was palpable. In contrast, one of his colleagues was very successful at fee negotiations. Her confidence was evident and she knew how to handle fee resistance.

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Management: When cultures collide

By a:1:{i:0;s:1:" ";} | July 23, 2008

"Culture is not a major issue in my business. While the projects I manage may cover multiple jurisdictions, we are all fluent in English. We all understand each other and work together perfectly well".

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On the record

By a:1:{i:0;s:1:" ";} | July 23, 2008

On the recordA number of factors are converging to make this a time of review and change for the legal sector. Opportunities presented by the Legal Services Act, combined with an empowered client and affordable legal technology, means that those firms standing still risk extinction. What is more, strict compliance regulations and the public's awareness of recent data protection failings are throwing the spotlight on a law firm's ability in records management. Like many sectors, law firms are looking at new ways to cut costs, improve service and find positions of strength in the turbulent market. The dual goal is to deliver improved customer service while increasing profits per partner.Clearly, given the industry's heavy reliance on document-intensive processes, this is a key area for seeking efficiency and cost reduction through technology. The 2008 Pitney Bowes Legal Insight Report takes this as its central theme, focusing specifically on records management competency within the industry. Fifty of the UK's leading law firms were asked to respond to questions around their own, and the industry's, records management procedures. The resulting data presents a clear view of the sector's current status and an insight into the future strategy of an industry no longer set apart.The survey found that almost two-thirds of law firms have no strategic policy in place covering the migration of hard copy records to digital. For a sector that is currently heavily reliant on paper-based processes this finding makes for remarkable reading. Not only are current practices antiquated, it would seem that the majority of firms have no plans to change. But is this really the case? Pitney Bowes' discussions with law firms do not indicate that the sector is simply content to continue along the well-trodden paper records path. Rather, here is a sector with a genuine desire to improve and automate-but one that is simply overwhelmed by the task ahead.The sheer volume of paper being retained, coupled with the fact that navigation of these existing records is manual and time-consuming, prevents many businesses from taking the important first step towards change. The consensus is that such migration would be too disruptive, too demanding of senior employee time and crucially, too expensive to consider.The truth, however, is a distance removed from this perception. The important action is to draw a line in the sand-to create a start point from which future strategy can be implemented. Only once this line is drawn can law firms truly embrace digitisation and begin to think strategically. One option is to agree a date from which all further incoming documentation is to be digitised. Once this procedure is implemented and running smoothly, the business can then focus on migrating the remaining archive from paper to digital-over a period of time and in a modular fashion. Of course, the necessary IT infrastructure needs to be sourced, implemented and managed. Again, many businesses baulk at the decisions to be taken, having neither the time nor the knowledge to make informed choices. It is here that business process outsourcing partners can demonstrate real value. Expert third-party partners will know the market, will have access to a range of appropriate technology and will have the capacity to oversee the ongoing information management operation.The survey also found that two-thirds of firms store their documents in their central offices. This statistic is damning. The cost burden of storing paper records centrally is vast. Consider the location of top law firms and the percentage situated in London's square mile: now consider the cost per-square-metre of such office space. The average filing cabinet requires approximately one square metre of space to house the cabinet itself and allow sufficient space for its drawers to be opened and the contents accessed. Multiply this requirement several times over and the sums quickly add up to serious wastage.Central records storage is not merely a financial burden. Today's law firms are asked to be flexible, to have the ability to set up team and office structures to meet client requirements and to adapt quickly to new ways of working. This approach demands a working environment that is spacious, open-planned and geared towards the client. Hard-copy archives certainly do not fit this mould. Additionally, mergers and acquisitions continue to make the headlines. Companies might be asked to pool resources, to make office space available for additional staff or to swap team locations around. Again, paper files simply are not conducive to a lean, efficient and flexible operation.There are alternatives to this scenario and several businesses, while not yet at the stage of digitisation, are at least storing records off-site, either at their own out-of-town premises or those run by third-party partners. However, this strategy, unless managed efficiently, has its own inefficiencies and hidden costs. For example, many law firms are finding that the cost of couriering documents to and from premises is prohibitive, and that courier firms are proving unreliable. The survey also found that almost a quarter (22%) of firms admit that the relatively simple process of document retrieval causes disruption - a serious cause for concern. This disruption is solely caused by manual, paper-based systems. The immense volume of archived material becomes a maze of information - and even the most efficient and studiously indexed paper files are not immune from simple human error.The technology exists to eradicate this disruption - safeguarding brand reputation, maintaining client relations and achieving full compliance. Certainly, law firms have extensive experience with other IT solutions-database management techniques, for example (possibly related to the fact that, without client details, bills can not be accurately despatched and will not be paid on time!). But, in the majority of cases, the next step-information management-has not been taken. The advantages to be gained through a fully integrated records management solution cannot be ignored. Nominated personnel have instant access to information relating to a case, client, location and time-period, however the business chooses to categorise its data. Information can be shared across the office or across different geographies, bringing expertise together and expediting decision making. Every type of record-a scribbled note, email, phone conversation, case file-can be captured, indexed and made available at the touch of a button. Reports, presentations, proposals-all can be produced, on demand, with the need for manual intervention reduced to a minimum. This is not to say that law firms must become paperless environments. There is still a resistance, for example, to reading multi-page documents on a monitor screen. But an office environment with less paper is certainly achievable, and eliminating the disruption caused by document retrieval must impact positively on customer service.Scrutiny of billing structures will only increase as new entrants bring a fresh approach to the marketplace. As a result, law firms can not rely on ever-rising fees and must introduce leaner, more efficient processes to achieve the desired profit margins.Records management competency can save money, boost client service and enable firms to meet ever more stringent compliance demands. There is a genuine desire for change. But only by drawing a line in the sand can the first step towards meaningful change be taken. Richard Thompson is managing director at Pitney Bowes Management Services.

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Switch your skills

By a:1:{i:0;s:1:" ";} | July 16, 2008

While it was bound to happen sooner or later, opinions differ as to just how bad the credit crunch is. But it is generally agreed that the City is taking something of a kicking; for City lawyers this has raised some valid concerns about the safety of their current role.

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Mind your migrants

By a:1:{i:0;s:1:" ";} | July 16, 2008

Many City employers, including law firms, have come to rely on a readily available turnover of foreign workers. This was particularly the case during the boom years when a shortage of qualified UK lawyers meant many law firms looked to Antipodeans. Although recruitment might have reduced in certain areas due to the impact of the credit crunch and global slowdown, those in charge of recruitment should nonetheless be aware of the effects of the radical immigration changes being phased in this year.

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Value your firm

By a:1:{i:0;s:1:" ";} | July 9, 2008

At the end of last year, the Legal Services Act gained Royal Assent, with provisions for alternative business structures (ABS) heralding opportunities for major changes in our legal services market - currently estimated to be worth £19bn. Although the law - which allows law firms to go into business with other professionals and list on the stock market - does not come into force until 2011, both investors and existing law firms are starting to rethink the delivery of legal services and explore market potential. This is an unprecedented opportunity for financial institutions and retailers to provide a range of legal products and for investors to take equity in existing legal practices.

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Target your future

By a:1:{i:0;s:1:" ";} | July 2, 2008

Readers of the discussions in Legal Week in March on the merits of marketing and business development at law firms could be excused for believing that they had been transported back to the 1980s, as this debate has been around for 25 years. A substantial number of lawyers undoubtedly do not rate their marketing and business development (BD) departments highly, and the role and value of the service seems as low and unclear as ever. With staff turnover in this function as high as 30%-40%, one question clearly emerges: is there a role for professional marketers in the legal profession?

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Upwardly mobile

By a:1:{i:0;s:1:" ";} | June 25, 2008

Ambitious associates are increasingly seeking out direct moves into partnership at a new firm. Sloane Poulton reports on the challenges and potential benefits of such a switch

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Opportunity knocks

By a:1:{i:0;s:1:" ";} | June 18, 2008

The Legal Services Act 2007 will implement fundamental changes to the structure and regulation of legal services in England and Wales. It presents significant commercial opportunities for law firms, as well as their potential business partners and investors. It is vital that, when planning for the exploitation of those commercial opportunities and/or the implementation of the new regulatory regime required by the Act, law firms' management teams give proper consideration to the impact of any proposals on their staff - a professional practice's most valuable resource - as well as their legal obligations to them.

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Substance with style

By a:1:{i:0;s:1:" ";} | June 18, 2008

This year's Intendance 'Fast Fifty' benchmarking of the 50 fastest-growing law firm websites is further proof of how the legal sector is stepping up its online operations. Famed throughout the business-to-business sector, sometimes unfairly, as being among the least innovative of the professional services in terms of harnessing the power of the internet, law firms are now showing signs of shedding that image. Of course, the big news since last year's report is the arrival of the much-heralded Legal Services Act, which will open the sector up to outside competition. It is too early to tell whether the Act has focused partners' attention on developing hitherto untapped business streams, but there are advantages to be had by developing online capabilities. For the past seven years, Intendance has been evaluating how the legal profession presents itself online and how it communicates with a whole host of stakeholders, from clients to potential trainees. The success - and increase in scope - of previous Fast Fifty reports has led to a change in format this year, from a single document to a three-part series.

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New York Law Journal

Willkie Farr Grows Partner Bench After Record 2017

By Christine Simmons | March 29, 2018

Willkie boasted its best-ever performance across all key financial metrics in 2017.

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The Recorder

Study Shows LA's Legal Market Has Recovered Following '08 Crisis

By Xiumei Dong | March 28, 2018

A new analysis by the Lowell Milken Institute for Business Law and Policy at UCLA looks at how law firms in Los Angeles have adapted to market conditions within the past decade.

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Daily Report Online

Ballard Spahr Mourns Atlanta Managing Partner

By Jonathan Ringel | March 28, 2018

"Han was a leader, a teacher, a mentor, a friend. He was all of those things in one," said one associate.

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National Law Journal

Covington & Burling Absorbs German Firm for Frankfurt Launch

By Ryan Lovelace | March 28, 2018

Washington-based Covington is planting a flag in the European financial hub with six new partners from Frankfurt's Heymann & Partner Rechtsanwälte.

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The American Lawyer

Big Talk, Little Action? Survey Details Big Law 'Innovation Gap'

By Roy Strom | March 28, 2018

A new survey reveals that 81 percent of clients see "little" or "hardly any" innovation inside their law firms. Only 5 percent of clients are content. What gives?

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The Recorder

Should I Include a Detailed Background Summary on My LinkedIn Profile?

By Julie Brush | March 27, 2018

I receive a lot of questions about the value and use of LinkedIn for career success. And as this “social” medium has become a more important tool for professionals, more people wonder about the impact of their information and behavior on the site.

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The American Lawyer

Law Firms Are Investing in Tech Before It Overtakes Them

By Rhys Dipshan | Roy Strom | March 26, 2018

The definition of a law firm is shifting as firms invest in technology to stave off competitors and give clients what they want.

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Texas Lawyer

Even Midsize Firms Look to Texas for Expansion

By Brenda Sapino Jeffreys | March 26, 2018

Firms of all sizes, not just big-name firms such as White & Case and Shearman & Sterling, are expanding in Texas.

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The American Lawyer

Who Gets Credit for Munger's About-Face on Arbitration?

By Miriam Rozen | March 26, 2018

Legal academics showed their clout after Munger Tolles' mandatory arbitration agreement for summer associates appeared on Twitter over the weekend.

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The Recorder

'Half-Assed Innovation': Do Law Firms Need to Change Incentives to Innovate?

By Ian Lopez | March 26, 2018

Former Littler Analytics leader Zev Eigen likens common law firm innovation structure to "a horse-and-buggy company" trying to design cars.

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