The quarterly publication of the International Legal Technology Association
Issue link: http://read.uberflip.com/i/34686
From Immalleable to Agile Practice Delivery Not to be overlooked, of course, are the actual legal work product and services the firm provides. There’s no shortage of solutions available to help firms successfully handle cases, including tools that support legal research, case management, case analysis, e-discovery, trial presentation and more. These are intended to improve the productivity of attorneys and their teams so that they can handle cases as effectively and efficiently as possible. But rather than examine these tools specifically, it may be worthwhile to look at an emerging trend that is likely to become a mainstay in the next few years in improving practice capabilities. Legal Process Outsourcing (LPO) is a strategy increasingly utilized by corporate general counsels and law firms to achieve greater efficiency, increase capacity and to establish more predictable budgets and results. It typically involves contracting with third-party service providers, both within the United States and offshore, for any of a number of legal services, such as litigation support, e-discovery, contract management, and compliance and risk management. Because LPO can be effective in improving efficiency and capacity, its importance to the legal industry is likely to grow. However, like any other new tool or resource, it is neither a panacea nor a solution to be applied universally. LPO brings into play concerns firms have about evaluating expertise levels, confidentiality, potential conflicts, disclosure to clients and billing practices. LPO needs to be applied strategically, with thoughtful consideration to objectives, costs, trade-offs and firm resources. Managed properly, legal process outsourcing can be a valuable enhancement to a firm’s practice delivery capabilities. Agile firms are leading the way in seamlessly blending their traditional service delivery models with the ability to work with third-party LPO providers — or to create their own “captive” lower-cost, high-quality delivery teams, both on- and off-shore — to deliver work that clients view as much more aligned from a price/value perspective. Financial and Profitability Management Intelligent analytics also are rapidly transforming how firms manage their profitability. It’s no longer sufficient to show that a given project, client or practice area is hitting its targets for billed rates and hours. In an increasingly competitive environment where clients are pressing for firms to demonstrate greater value, it’s essential that firms be able to track, monitor and manage profitability for each matter, portfolio and client. As clients adopt greater use of alternative fee arrangements, firms have to know whether a matter can be handled profitably, and how competitive they can be in bidding for work. This requires greater capabilities for precise planning and execution. Firms need to know that they are allocating their resources to a given task in the most efficient and profitable manner possible. Engagement Planning Management (EPM) tools can help firms plan matters or entire portfolios of matters, drawing on internal knowledge of how the firm handled similar matters previously. Firms can plan, with precision, how a matter will be handled, including parameters such as attorney time, costs and margins. Real-time reporting allows careful tracking to ensure not only that work is completed on time but also that it is within budget. Various scenarios employing adjustments to work allocation and timekeeper mix can be analyzed to optimize matter management. An additional benefit of such tools is that they provide greater transparency to clients, who can more closely monitor what they are paying for. It provides greater assurance throughout the process that budgets and other guidelines are being met, which can build client trust and loyalty. Agile firms are migrating to Web-based financial and practice platforms that enable faster access to billing and matter information and analytics across geographies, clients, currencies and languages. Talent Management New business models and intelligent analytics are also being applied in the area of talent management. The traditional partner track model is now only one of a number of paths available to both management and practitioners. Nonpartner tracks, use of contract and part-time attorneys, and LPO will become more common as firms pursue more efficient and flexible practice management. More flexible staffing models can improve efficiency and profitability, and provide the agile law firm with a greater ability to respond to opportunities and market changes. Talent management is also a key consideration in global expansion. By optimizing their talent management models, firms can improve flexibility for managing talent in both a firm’s home-base country as well as across its international offices. The most agile firms are using a combination of intelligent analytics, consulting services and best practices to develop competency-based and assessment-based approaches to hire, train and develop their teams. These tools are integrated with other systems to allow offices all over the world to better understand the individual knowledge, skills and abilities of partners and associates so the right talent can be leveraged at the right time for the right client. The Road to 2020 The road map for the legal industry from now to 2020 is likely to be dominated by globalization, increased competition for clients and the drive for greater efficiency. Turning those challenges into opportunities for greater growth and profitability will involve taking risks, being willing to experiment, and investing in cutting- edge technology, consulting and information solutions. The reward for the most agile law firms will be having the right talent, governance, information and tools in place to thrive in the new, dynamic global legal services marketplace. ILTA Tony Abena is the President of Business of Law for Thomson Reuters Professional. Business of Law includes Elite, FindLaw, Hubbard One and Hildebrandt Baker Robbins. Prior to joining Thomson Reuters, Tony was executive vice president and chief technology and operating officer at techies.com, an online technology recruitment company; president of Gartner Institute; and the co-founder of two technology start-ups. He can be reached at tony.abena@thomsonreuters.com. Peer to Peer the quarterly magazine of ILTA 75