This two-part series was written by LegalBizDev Principal Steve Barrett, former CMO at Drinker Biddle.
You've decided that your firm needs to assess the need for or embark upon instituting project management as an efficiency improvement and margin protection discipline (see part one from last week).
So here are your options:
1. Do nothing. Assume hourly rates are permanent and that clients will gladly relent in their pressure for efficiency, cost savings and predictability once the economy resumes its growth. Most think that won't happen.
2. Train your lawyers in alternative fee arrangements (AFAs) and legal project management (LPM) to help them deal with AFA pricing, improve matter management, achieve efficiencies, and build more interactive relationships with major clients.
3. Hire a cadre of project managers and/or purchase and install sizable LPM software solutions. This may include (listed generally in order of increasing cost and support requirement):
a. "Cloud" web-based PM solutions, such as Basecamp, ProjectSpace, QuickBase (from Intuit), @task, ClientSpot, Teamwork Project Manager and the like, which are comparatively inexpensive (typically $25-$50 per month per user), support internal and client collaboration but are not specifically optimized to legal processes. Many law firm IT staffs use this type of project management/collaboration software themselves for internal firm systems roll-outs. One new cloud-based system, Onit, was developed for the legal industry by knowledgeable lawyer-programmers and is currently in beta testing at several major law firms. A number of other cloud-based collaboration systems are out there, such as Scrumy, ProjectSpaces (not to be confused with ProjectSpace, above), Collabtive, Gantter, and LiquidPlanner. Many are free to use, and one, Gantter, promotes its integration with and similar looks to Microsoft Project. These online cloud solutions can vary from the very basic - best for simple casual group projects only - up to more secure extranets for firm/client collaboration - which have good calendaring and task tracking capabilities - on to the more recent Onit legal-specific system.
b. Packaged desktop PC project management software, such as the omnipresent Microsoft Project or dozens of its competitors, most of which are rather complex and not tailored specifically for the legal environment. Microsoft Project is now but one entry in a suite of Service Delivery Management (SDM) solutions offered by the company as an applications ecosystem for professional services firms. Desktop PC solutions also may not generally support ready collaboration across networks or with clients, and law firm time entry and accounting information must be imported from separate firm systems. There are even freeware desktop alternatives to Microsoft Project, such as Open Workbench.
c. "Heavyweight," integrated legal software solutions are arriving, such as Thomson Reuters Engage, developed in partnership with Hildebrandt Baker Robbins, a Thomson Reuters sibling company. The system is in beta test stages at several name law firms. LexisNexis' Redwood AnalyticsTM also has software tools and processes available, as does Data Fusion Technologies' IntelliStat (for Elite accounting system users). We haven't details, yet, on their pricing or capabilities, but since they are established legal vendors it is likely that their products and services are both comprehensive and expensive. Both offer training and consulting and, one can assume, do integrate with the major law firm accounting systems for data extraction. Also, the major legal accounting software vendors, such as Aderant, incorporate analytic tools and are planning more systems in matter management/AFA solutions in the months ahead.
d. Comprehensive Continuous Improvement/Process Improvement reengineering, such as Six Sigma, Lean and Deming-type continuous improvement/process improvement undertakings, aim at eliminating errors and extraneous steps in all legal processes, much like Toyota, Motorola and DuPont continuously improve their manufacturing processes to eliminate waste and errors, and to speed up production without sacrificing quality. Several law firms have undertaken such initiatives, such as Seyfarth Shaw and Eversheds, for example, at considerable expense and commitment.
Read more at the Legal Business Development Blog.