From part-time parents to entrepreneurs, there is a growing trend in both lawyers and firms that want flexible availability and more short-term commitments. How can your firm make the most of this growing pool of lawyers?
8. Is your firm doing any of the following to increase
efficiency of legal service delivery?
Reengineering work processes
Shifting work from lawyers to
paraprofessionals
Project management training
Shifting work to contract/temporary
lawyers
Knowledge Management
Altman Weil 2014 Law Firms in Transition
60.1
61.1
41.3
43.1
46.2
29.9
0 10 20 30 40 50 60 70
Using tech to replace human resources
9.
10. Many law firms feel pressure to change elements of their business model to
stay competitive in the post-recession economy. Has your firm significantly
changed its strategic approach to lawyer staffing strategy?
27% Yes
Altman Weil 2014 Law Firms in Transition
46%
27%
No
Under
Consideration
11. Is your firm currently pursuing any of the following alternative staffing
strategies?
Outsourcing legal work
Low-cost center for back office
Outsourcing non-lawyer
functions
Using staff lawyers
Using part-time lawyers
Altman Weil 2014 Law Firms in Transition
48.1
55.5
59.4
10.3
11.7
19.8
Using contract lawyers
12. Are your efforts to change your lawyer staffing strategy driven primarily by:
- Internal factors (e.g., improved profitability)
- External factors (e.g., client or market pressure)
45% Internal
55%
External
Altman Weil 2014 Law Firms in Transition
13.
14. Value
What
clients
want
Greater
Control
Greater
Financial
Accountability
Efficient
production of
commoditized
work
15.
16. No risk of idle workforce
Firm
Benefits
Avoid overhead costs of
employment
Focus on Business
Development
Quick adjustment to
market changes
Fight off competition
from
insourcing/alternative
providers/DIY services
17.
18. Change your mindset about what it
means to serve your clients
Review state bar rules and opinions,
discuss with carrier.
Source a good provider, individual,
or firm.
Break projects down into discrete
functions and delegate appropriately
Get comfortable giving up control -
manage by trust
19.
20. 30
25
20
15
10
5
0
2014 - MBO Partners Inc.
Number of independent workers
(millions)
2013 2018
21. “Until the profession decides to pay associates what they are
really worth in the marketplace, young lawyers will continue
to be too expensive and often misaligned with client value
perceptions. Law firms need to stop assuming that they need
a new associate whenever work volume is pressing. If a
practice group or office asks for a new associate, it should be
able to rigorously justify the expense. Begin to consider
different kinds of lawyers (e.g., part-time, contract, etc.) who
can fill the same needs much less expensively.”
22. Thank you for listening!
Clio Cloud Conference 2014 #ClioCloud9
Editor's Notes
Not just increasing revenue to increase profitability – can maintain revenue and shrink overhead to increase profitability.
A ton of ways, including practice management efficiencies, but here focus is on legal services outsourcing as a means to shrink the overhead.
Nearly 60% for firms over 250 lawyers
71% - use of more contract lawyers will be a permanent trend going forward
Cite Allen & Overy stats
Cafeteria lunch example – Don’t have to do it all yourself!
Efficiency and profitability maximized when people are working at their highest ability levels – encourage more challenging work.
The amount and quality of independent lawyers now available is unprecedented.
Ready availability of high end legal talent. Site Jordan Furlong’s paper.
1 in 2 workers will freelance at least in part by 2020.