Page 11 - MDPs - Chapter 14 - Multidisciplinayr Practice and Partnershps
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These new skills will make each of the members more competitive as well as more competent to provide
and manage complex services for their clients.

[3)----Cost Effectiveness through Technology

More than one third of the cost for legal services is overhead including rent, support, equipment and
marketing. Technology in recent years has reduced the staff support costs and generally improved
productivity.17 The Internet, because it is accessible from many location, will even make more change in
the cost structure possible,18 as even less space and support are required, and a different type of
marketing is deployed."19

The Big 5 are already deploying the Internet to take advantage of its efficiencies. For example, they are in
the process of physically restructuring their offices. In some cases this means standard-size offices for
everyone while in other cases the complete elimination of offices even for the partners. Should a partner
require a space, it must be booked in advance.

With technology, virtual private networks can be created by anyone. These secure communication links
permit direct access from home or on the road to all information. When professionals work at home, they
require less staff support. New technology also means that operations can be efficiently managed by
making internal documentation easily available without the need for printing and distribution. Contacts
with home office departments are possible from anywhere so that separate regional administrative
centers are no longer necessary.

MDOs can create the same reduction of overheads even though the member organizations are
independent. The Internet can be used to bring the sum total of all the resources of the individual parts
of the MDO to each individual professional. For example, office space can be scheduled in remote
locations through the network.20 Assistance can be provided when professionals travel through a free-
advice policy.

Marketing is one area where legal networks have not taken full advantage of their power. Using a
database can make marketing very low cost since it creates the opportunity to share information with
clients and non-clients based upon self-defined interests. Much of the marketing of the future will be
matching interests of clients to those areas in which the firms have expertise. Demand for new services is
created by demand for old services.

17 For overhead comparisons, see the Altman-Weil Annual Law Firm Survey results.
18 At present there are few articles on MDPs and the Internet. There are a number of articles that look at the impact of the Internet on the
practice of law in general. Kraft, The Increasing Use of the Internet in the Practice of Law, 69 J. Karr. B. Assoc. 15 (9) (Feb. 2000); Pruner, The
Internet and the Practice of Law, 19 Pace L. Rev. 69-93 (Fall 1998); Dog The Competitive Law Firm of the 21" Century: Web Technology 62 Tex.
B.J. 676 (3) (July 1999); The Internet “Full and Unfettered Access” to Law and Some Implications, Martin 26 N. Ky. L. Rev. 181-209 (Summer 1999);
Hellwege, Will B-law Change the Practice of Law, 36 Trial 12 (June 2000), Munneke, When E-lawyering and Legal Ethics Collide, Nat’I L.J C25.
(August 28, 2000); Schmitt, Lawyers vs. The Internet, WSJ, R34 (July 17, 2000); Davis, Meyer, Davis, Blur: The Speed of Change in the Connected
Economy (Little Brown & Company 1999); Kelly, New Rules for the New Economy (Penguin Books 1999).
19 One example is LawCommerce.com (http://www.lawcommerce.com), which has created a superstore for purchasing products used by lawyers
and law firms. There are substantial discounts on these products that can be purchased at the site.
20 For example, Lex Mundi (http //www.lexmundi.org) has a free-office-space policy that permits any of the 15,000 member-lawyers the
opportunity to arrange for space in the more than 400 offices worldwide.

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