Page 224 - Leaders in Legal Business - PDF - Final 2018
P. 224
Today’s law firm attorneys are asked to do the impossible: handle increasing workloads
and increasing the quality of work, while somehow simultaneously lowering the total cost of
representation and improving overall profitability and margins. These tasks are not easily
achieved in any industry, but they are particularly difficult within the constraints of the
traditional law firm operating model. This model (the traditional pyramid) includes costly
physical overhead and personnel, a culture of following precedent, and a decentralized command
structure.
Ultimately, legal managed services present two major advantages. First, managed
services can free up law firm associates to spend their time on the most complex, outcome-
determinative work, allowing them to achieve better results for their clients. Second, they allow
firms to be agile and create value within a new reality. As a result, firms can become more
competitive, winning new clients, and increasing profits on work with existing clients.
Lawyers Actually Practicing Law Again
Working strategically with LMS companies can help top firms improve their ability to
recruit, train, and retain the world’s top legal talent by sending a clear signal to the marketplace
that a career at their law firm will not revolve around years of inefficient document review or
other high-volume, repetitive (but important) work. Furthermore, attorneys in such firms will
more quickly develop their skills in the traditional practice of law, including oral advocacy,
witness preparation, and legal writing. Associate morale can improve by reducing the
tremendous cost of a revolving door, and increased retention also improves the ROI on training
associates on the firm’s practice.
A Competitive Edge
Law firms can also deploy managed services to create a competitive advantage. In an
RFP or fixed-fee scenario, the firm presenting the lowest overall price tag on representation will
often have the winning edge. If deployed correctly, partnering with an alternative services
provider can give law firms a competitive advantage in attracting new clients.
Research shows that the vast majority of firms continue to face price competition, despite
the recovery in the overall economy. Moreover, many are adjusting their pricing strategy by
integrating fixed rates whereby the risk of cost overruns is born exclusively by the firm. Future-
focused firms are getting creative, pairing alternative fee arrangements with outsourcing, and
advanced technology. And it’s working: They are winning business with a lower cost solution,
while still maintaining non-discounted rates.
For smaller firms, the support of managed service providers can be a game-changer that
can level the playing field when competing with their larger rivals. Today, small- to mid-size
firms with lower headcounts are better able to compete for big, bet-the-company matters,
because engaging with high-quality LMS providers allow them to scale up with professional
staffing without increasing overhead.
Conclusion
210
and increasing the quality of work, while somehow simultaneously lowering the total cost of
representation and improving overall profitability and margins. These tasks are not easily
achieved in any industry, but they are particularly difficult within the constraints of the
traditional law firm operating model. This model (the traditional pyramid) includes costly
physical overhead and personnel, a culture of following precedent, and a decentralized command
structure.
Ultimately, legal managed services present two major advantages. First, managed
services can free up law firm associates to spend their time on the most complex, outcome-
determinative work, allowing them to achieve better results for their clients. Second, they allow
firms to be agile and create value within a new reality. As a result, firms can become more
competitive, winning new clients, and increasing profits on work with existing clients.
Lawyers Actually Practicing Law Again
Working strategically with LMS companies can help top firms improve their ability to
recruit, train, and retain the world’s top legal talent by sending a clear signal to the marketplace
that a career at their law firm will not revolve around years of inefficient document review or
other high-volume, repetitive (but important) work. Furthermore, attorneys in such firms will
more quickly develop their skills in the traditional practice of law, including oral advocacy,
witness preparation, and legal writing. Associate morale can improve by reducing the
tremendous cost of a revolving door, and increased retention also improves the ROI on training
associates on the firm’s practice.
A Competitive Edge
Law firms can also deploy managed services to create a competitive advantage. In an
RFP or fixed-fee scenario, the firm presenting the lowest overall price tag on representation will
often have the winning edge. If deployed correctly, partnering with an alternative services
provider can give law firms a competitive advantage in attracting new clients.
Research shows that the vast majority of firms continue to face price competition, despite
the recovery in the overall economy. Moreover, many are adjusting their pricing strategy by
integrating fixed rates whereby the risk of cost overruns is born exclusively by the firm. Future-
focused firms are getting creative, pairing alternative fee arrangements with outsourcing, and
advanced technology. And it’s working: They are winning business with a lower cost solution,
while still maintaining non-discounted rates.
For smaller firms, the support of managed service providers can be a game-changer that
can level the playing field when competing with their larger rivals. Today, small- to mid-size
firms with lower headcounts are better able to compete for big, bet-the-company matters,
because engaging with high-quality LMS providers allow them to scale up with professional
staffing without increasing overhead.
Conclusion
210
