« April 2018 | Main | June 2018 »

3 posts from May 2018

May 30, 2018

How CLOC is helping law firms to improve efficiency (Part 1 of 3)

By Tim Batdorf, Jim Hassett, and Ed Burke

How much do you know about CLOC, the Corporate Legal Operations Consortium?  If the answer is very little, and if you work at a law firm that cares about legal project management (LPM), you may be falling behind your competitors. 

As suggested by its name, the Corporate Legal Operations Consortium is primarily intended for in-house staff at corporate legal departments.  But a growing number of law firms are becoming involved with CLOC for both substantive reasons (to better understand what clients are looking for) and for marketing purposes (to improve communication with current clients and with potential new ones).

CLOC’s mission is to help legal operations professionals and other core corporate legal industry players (e.g. tech providers, law firms, LPOs, law schools, etc.) optimize the legal service delivery models needed by small, medium and large legal departments to support their clients.  As summarized on CLOC’s web page:

In a technology and data driven world, when business moves faster than ever, legal is totally out of step. Our industry has been frozen in time, slow to change.  We organize all players in the legal ecosystem to help reform and shape our industry.

CLOC’s influence has exploded in the last few years.  According to a recent Bloomberg Law interview with its founder Connie Brenton (chief of staff and senior director of legal operations at NetApp Inc.), CLOC started in 2010 as a small discussion group which, at that time, might have best been described as “an information book club” or perhaps as “therapy.”  In 2016 CLOC became a non-profit, and according to Brenton:

In two years we went from an informal group of 40 to nearly 1,400 legal operations professionals.  

That was in February.  More have joined since, and at the time of this writing, CLOC had approximately 1,500 members and over 750 member companies, including roughly 30% of the Fortune 500. CLOC membership represents 43 states in the US and 39 countries around the world, and member companies have an estimated combined external legal spend of over $40 billion.

CLOC’s growing influence on the legal profession can also be seen in the fact that attendance doubled at each of its first three US meetings: from about 500 participants in 2016, to 1,000 in 2017, and nearly 2,000 in 2018. 

Given those numbers, it is clear why law firms are increasingly involved with CLOC.  According to Melissa Prince, Ballard Spahr’s Chief Client Value Officer, the most important benefit of CLOC involvement is proactive communication. 

For years, clients and law firms have had the common goal of transforming the way legal work is done, but until CLOC they were not really talking to each other about it in any meaningful way.  The reality is there will never be any long-term change in the legal industry until clients and law firms really start talking to each other.  CLOC encourages us to tackle tough issues and to be brutally honest with each other about what isand more importantly what is not working.  This is exactly what we need in the legal industry.  

After attending CLOC’s meeting in Las Vegas last month, David Clark, LPM Partner at Lathrop Gage, noted that:

CLOC emphasizes how clients and their in-house legal departments want law firms to collaborate with them.   This runs counter to a common misconception in law firms that clients are just using things like LPM and alternative fee arrangements to drive down legal fees, without regard for the law firms which represent them.  Instead, most clients want to increase collaboration with their law firms through LPM and similar tools.  While it is true that these tools allow law firms to more efficiently and cost-effectively handle legal work, at the same time, clients are rewarding collaborating law firms by increasing the volume of their work and paying success fees.  CLOC helps law firms understand that implementing LPM can foster increased collaboration with clients, resulting in more value for clients and deeper engagement for the law firm.

CLOC conferences are designed primarily for in-house departments, and the first session at each conference  provides an overview of the 12 core competencies identified by CLOC and summarized in this graphic:

  CLOC_12_Competencies_Pic1 Pic1_Copyright

All remaining sessions at each conference describe how best to execute against those competencies.  According to Jeffrey Franke, Assistant General Counsel at Yahoo Inc. and a member of CLOC’s Leadership Team:

The core competencies are the reference model for achieving operational excellence by in-house legal teams.  Legal operations professionals, working with their GCs and legal leadership teams develop strategic and tactical plans to create service delivery models (in-house, law firm, LSO, and tech solutions) to deliver the right quality of legal support at the right cost by executing against those competencies.  Each core competency is comprised of several sub-core competencies.  Until CLOC created the 12 core competencies, there was no comprehensive definition of legal operations.

Typically, legal teams focus on the 12 core competencies in a clockwise fashion – representing CLOC's operational maturity model.  Franke estimates that 60% of legal departments operate primarily at the foundational level, 35% at the advanced level, and about 5% at the mature level.  Franke says there are similar, observable patterns in the way in which legal departments evolve over time:

The parallel to operational maturity and the core competencies is functional maturity: we've found that legal ops teams mature (grow in size, scope, talent, and reporting structure) in a similar way over time as legal departments understand what it takes to execute at the highest levels.

CLOC’s web page also lists a number of crowd-sourced initiatives based on the idea that:

When experts from across the legal ecosystem work together to take on the biggest challenges of our industry, almost anything is possible… The CLOC initiatives… each led by a CLOC member, draw on contributions from law firms, alternative legal providers, technology companies, and law schools.  The result – best in class solutions that shape the present and the future of our industry.

While some initiatives are of primary interest to in-house law departments (such as the “Legal Ops Career Skills Toolkit”), others are of substantial interest to law firms, starting with CLOC’s LPM initiative, which will be described in Part 2 of this series.

May 16, 2018

The Best Way to Increase Firm-Wide Commitment to LPM: A Panel Discussion by LPM Champions

By Tim Batdorf and Jim Hassett, LegalBizDev

The single most difficult step in implementing a firm-wide LPM initiative is getting the attention, interest, and buy-in of busy lawyers. 

In more than a decade of working with law firms of all sizes to implement LPM, we have consistently found that the most effective way to generate interest is to conduct a carefully structured panel discussion where LPM champions discuss their success stories and how other lawyers at the firm might benefit from LPM. 

(Note: This approach assumes that the firm already has at least a few influential partners who have succeeded in increasing client satisfaction and/or profitability by increasing efficiency and applying LPM.  If that is not the case, the panel discussion must be preceded by a one-to-one coaching program or other initiative to develop the first LPM champions.) 

The reason that a panel discussion is so effective is that the testimony and proven experience of lawyer colleagues is much more effective and convincing than anything any outside expert could say.  Whether the panel discussion is featured at a retreat, or simply the basis for a lunch meeting for a small group, the keys to success are:

  • Pick the right participants based on both their presentation ability and their influence with colleagues in attendance.
  • Identify a skilled facilitator to organize and conduct the panel discussion to assure that the participants focus on benefits rather than getting lost in the details. (Note: It may be best to hire an outside consultant to facilitate the panel discussion.)
  • Decide whether the facilitator should be an outside expert or an internal staff member.
  • The session should be planned with a clear, concrete, and measurable goal, such as:
    • Identifying volunteers for LPM coaching
    • Increasing the use of internal LPM staff and resources
    • Increasing the use of on-line just-in-time training LPM tools
  • Hold one or more brief preparation meetings or pre-calls with the champions to review the goals of the session, what they will each talk about, and how long they will have for each section. (Note that this should NOT be a practice session of exactly what people will say.) 
  • Encourage all participants to keep the tone of the discussion positive and upbeat and avoid any negative comments about other lawyers or practice groups within the firm. Avoid any controversial law firm subjects.
  • Structure the panel so that no champion speaks for more than 5 or 10 minutes at a time. Make sure that all of the champions have a chance to speak and share their stories. 
  • Determine whether participants will want to display slides or samples of spreadsheets and other LPM tools while they speak.
  • Consider how best to arrange the order of the participants. As every lawyer knows, it’s always best to make a good first impression and present a strong closing.

The facilitator’s primary role is to assure that panelists consistently focus on LPM benefits, such as:

  • Increased new business and profitability
  • Meeting client needs for cost reduction
  • Meeting client needs for predictable budgets
  • Greater client satisfaction and better client relationships
  • Improved alternative fee arrangements (AFAs)
  • Improved definitions of scope
  • Improved communication

These questions can be used to help structure the panelists’ discussion: 

  • What were your goals and expectations when you started working with LPM?
  • What have you done differently with clients and/or your team as a result of LPM?
  • What specific benefits resulted from LPM – for clients, you, your team, and the firm?
  • Would you recommend LPM to other lawyers in the firm? If so, why? 
  • Any thoughts about which lawyers might benefit the most from LPM?

In the preparation meeting or pre-call, the facilitator should circulate a detailed agenda to all panelists.  These are guidelines at best, and the facilitator is ultimately responsible for managing the time. 

The sample agenda below was used at a firm retreat for a 60-minute session that ran from 10:00-11:00 am and included four panelists and audience questions.  Some firms hold a longer, 90-minute session and have three to five panelists, including the managing partner.  Some firms also extend the optional section (shown starting at 10:07 below) if an external facilitator provides slides discussing how other firms are using and benefitting from LPM.

Approx. start time

Total minutes per section

Who

What

10:00

2

Facilitator

Overview of the goals of the session, panelist introductions

10:02

5

Managing partner

Background on why LPM is important to the firm, current plans and initiatives, and why the firm is making this commitment, including any specific examples that highlight the need for LPM (e.g., client requests for LPM)

10:07

3

Facilitator

(OPTIONAL) Expand on key concepts mentioned by the managing partner, such as the definition of LPM, why it is important, and a list of firm clients that have requested LPM (ideally a slide showing their logos).

10:10

20 total

(5 mins each)

Four panelists

Each panelist answers these questions:

  • What were your goals and expectations when you started working with LPM?
  • What have you done differently with clients and/or your team as a result of LPM?

Each lawyer will focus on benefits such as increased client satisfaction and/or profitability.  (Sample templates used by each lawyer could be projected in the background while they speak, unless the templates are distracting or give an impression that LPM is overly complicated.)

10:30

20 total

(5 mins each)

Four panelists

Each panelist answers the following questions:

  • What specific benefits resulted from LPM – for you, your team, for the firm?
  • Would you recommend LPM to others in the firm?   If so, why? 
  • Any thoughts on which lawyers would benefit the most from LPM?

10:50

3

Managing partner

Summarizes lessons learned about LPM so far, and the importance of LPM to the firm in the future.

10:53

7

Facilitator

Questions from the audience.  In case there are only a few audience questions, the facilitator should be prepared to ask panelists additional questions, based on what was discussed already, or to end the session a few minutes early.

11:00

 

Facilitator

END

On the day of the panel, the facilitator must:

  • Monitor the time each lawyer takes.
  • Coordinate with the panelists to use a subtle signal (e.g., passing a note) if it is necessary to send a message like: “Please finish this answer soon so we can go on to the next question.”
  • Constantly bring the conversation back to LPM benefits whenever needed.
  • Make appropriate judgment calls. For instance, if the lawyers’ stories are engaging, allow them to go a bit longer and have fewer audience questions.  Be willing to flex by focusing on where the audience is most attentive.
  • End the session on time or a few minutes early.

Note:  This post was adapted from a tool in the digital 5th edition of the Legal Project Management Quick Reference Guide and is not available in any LegalBizDev books.

May 02, 2018

A model for LPM success: The case of Bilzin Sumberg (Part 5 of 5)

By Tim Batdorf and Jim Hassett

Implications for other law firms

First and foremost, to maximize LPM success while minimizing its cost, law firms would be wise to follow the same five steps that Bilzin Sumberg followed when implementing LPM:

  1. Focus on changing behavior and solving problems
  2. Aim for quick wins to create internal champions  
  3. Publicize successes within the firm
  4. Use just-in-time training materials
  5. Take action now and follow up relentlessly

But these come with an important caveat: To maximize results, the initiative requires strong support at the executive committee level. At Bilzin Sumberg, the key champions included managing partner John Sumberg, managing partner elect Al Dotson, and COO Michelle Weber. Their follow up over the last few years has been patient but relentless.

At other firms, on more occasions than we care to remember, a managing partner or chair would begin an LPM program that achieved substantial successes, but momentum would be lost when they became distracted by other pressing priorities or left the firm.

Perhaps the most widely publicized effort in LPM has been at Seyfarth Shaw, which began its work on process improvement around 2006. Six years into their program, Steve Poor, then Seyfarth’s Chairman and now its Chair Emeritus, wrote in the New York Times DealBook (May 7, 2012):

Never underestimate the resistance to change from lawyers… The continuous move forward takes persistence and, perhaps, a bit of stubbornness.

So the vast majority of lawyers should be expected to resist LPM until they see “what’s in it for me.” It is up to the firm’s leaders to keep initiatives moving forward.

Some of the things Bilzin Sumberg’s law firm leaders did were very simple. For example, according to COO Michelle Weber, “we found that sometimes using the phrase LPM is a roadblock, so we used the word efficiency instead.” As Al Dotson described in Part 1 of this series, when he talked with lawyers across the firm, “every single practice group said they could not use LPM.” So he decided a language change was necessary to remove the roadblock:

We took the acronym “LPM” off the table, and asked practice group leaders to instead think about what would make your group more efficient.

This simple change in terminology helped reduce resistance.

During the 2017 panel discussion that we facilitated for Bilzin Sumberg, several partners described how important it was to have management’s assurance that they had LPM support available. This included hiring external consultants to conduct the initial coaching, obtaining new software, and hiring new staff or reassigning existing staff to focus more on LPM.

In July 2014, Bilzin Sumberg promoted employees to new LPM-related positions, giving them more responsibility and oversight for LPM initiatives. Suzanne Amaducci-Adams offered one example of how Paul helped her by creating a more efficient system for tracking all of her matters, which simplified looking up documents and project costs.

[They] came up with this whole system where I just hit a button, and I can get a quick list of every matter I’d worked on in the firm the last 20 years. I can tailor this list to find what I need in about 90 seconds or less. If that saves me 10 or 15 minutes of my day every day, that’s a lot of time that I could be doing other things.

In the next few years, we expect most firms to expand their internal LPM staff. Unfortunately, as we explained in our posts on “How to Hire LPM Staff,” it won’t be easy. Just about every firm is looking for people who have combined expertise in two different areas: project management and law firm operations. But LPM is a new field, and there just aren’t that many people around who have both. The result has been that too many law firms are pursuing too few people, leading to a great deal of mobility in positions that would benefit from stability.

In February 2016, we posted the results of interviews with 15 LPM Directors about their priorities and achievements. While researching these posts, we went to LinkedIn to see how many of the 15 had changed jobs in the two years since we conducted interviews. Almost half had: four to other law firms, two to in-house law departments, and one to start his own consulting company. In our view, this job mobility reflects not only the competition for experienced staff, but also the difficulty of a position which many law firms have not fully defined.

Our posts on “How to Hire LPM Staff” include the recommendation that “It takes much longer to understand a particular firm’s culture and operations than it does to learn the fundamentals of LPM… [Therefore] the best candidate may be someone who already works at your firm as a lawyer or a senior legal assistant....”

The details of how one firm followed this advice can be seen in our case study of LPM initiatives at Lathrop Gage. In short, they appointed Dave Clark, an IP lawyer who had been at the firm for 30 years, to the new position of LPM Partner. As Clark put it in that case study (p. 7):

We felt it was very important to change lawyer behavior, and what better way to do that than to put someone in charge of the program who has been here more than 30 years and who knows all the lawyers and the pressures that they face on a daily basis?

Clark’s LPM training, and the initial rounds of LPM coaching at Lathrop, were completed by LegalBizDev. Now that this foundation has been established, Clark is coaching more lawyers himself.

Whether a firm decides to build the foundation for its initiatives with external consultants, internal staff, or a combination of the two, it is important to begin reaping the benefits of LPM as soon as possible. As long as other firms continue to improve, the LPM bar will keep going up. As the chair of one AmLaw 200 firm we interviewed for our book Client Value and Law Firm Profitability (p. 171) said:

LPM is an evolving process. I don’t think there’s ever going to be a point at which you can say: “Now I’ve arrived.”

Firms can increase client satisfaction and profitability by following the principles outlined here. According to COO Michelle Weber, the most significant insight from their client satisfaction interviews is that:

Every client eats up LPM – better communication and budgets provide validation from the client perspective.

And based on their experience over the last several years, Weber believes that LPM is not just an interesting option for most law firms, but it is an absolute necessity:

If you fail to use LPM in the current environment, you will lose clients.

 

A pdf of the complete case study can be downloaded from our web page.