Author: Onit

LPM 101: The Benefits of Legal Project Management Software

Posted on August 15, 2011 by - Business Process Management

If you’re looking for advanced tools to facilitate a more efficient management of ongoing legal projects and open cases, the benefits of using legal project management (LPM) software are many. LPM tools offer users a wide range of benefits, including data collection and management, project planning, collaboration, document management, and much more.

One of the major benefits of LPM tools is that it facilitates easy collaboration. Let’s use a legal project as an example. When a legal matter or “project” is initiated, it is common practice to assign tasks to team members. How are these tasks tracked? Who tracks them? How do you ensure that deadlines are not missed? Is there a project manager? Is project status communicated in Outlook or another internal tracking system?

Creating a project in a legal project management tool alleviates all of these issues. When all team members have access to the same information, it’s easy to share documents, see status updates, assign tasks, and add notes about the project. Not only will your staff be more efficient and happier but it will also reduce their email and phone call loads.

Another major benefit of legal project management software is that it allows project leaders to assign and delegate tasks while supervising the progress of individual team members. This helps increase accountability and promotes a culture of professionalism within the organization.

When it comes to a legal project, there are many moving parts and complexity is commonplace. One of the most beneficial features of legal project management software is that it makes scheduling easy. No longer will you need to worry about missed deadlines or getting clarity on the project scope. All team members have access to the information and can get updates immediately.

In some cases, you may wish to collaborate with professionals or legal experts outside your organization. You need not worry. Legal project management software makes it easy to quickly invite new team members and get them up to speed on the project scope. It can also be advantageous for the training of new employees, as the inherent features of legal project management software make it easy to demonstrate the progression of a project from its initiation to its final resolution.

Most of all, legal project management software helps your organization, whether it’s a corporation, non-profit, hospital or university, save money through the effective deployment of departmental resources and labor. It is an investment that can quite literally pay for itself in a relatively short period of time. How you ask? The ROI can be calculated in labor and resource savings, improved efficiencies and increased accountability and professionalism for starters. Layer in enhanced productivity and projects are more likely to stay within project scope and budget.

There is a wide range of legal project management software tools available and it’s important that you take the time to research the options carefully before making an investment. It’s critical to only pay for the features that your organization wants and needs. From introductory packages to advanced suites and modules, there’s a legal project management software package that’s just right for you.

Interested in learning more? Watch these screencasts to see if Onit Project is the right legal project management tool for your organization.

Legal Project Management – What’s It All About?

Posted on August 9, 2011 by - Business Process Management

Legal project management applies and adapts the business process of project management to the management of legal services. As more law firms adopt alternative fee arrangements (AFAs) over the standard hourly billing model, the management of time and expenses becomes increasingly more important to the law firm’s overall success.

Historically, the practice of law is not about efficiency, but rather research and ingenuity. Project management, a concept from the business world, breaks down the process of law into measurable, systematic goals, which may seem contrary to the creative thinking approach many lawyers take.

However, the legal clients of today expect accountability, communication, and transparency. By having a process in place for documenting and sharing information and expectations, law firms can not only maximize client satisfaction, but profits as well.

The formula for successful project management includes reviewing the objective of the project with clients, defining a system of communication, mapping specific actions required, creating a timeline or schedule with target dates, and scheduling meetings to update or revise the project scope.

A law firm can implement these strategies using legal project management software, LPM training or certification, or both, depending on the size of the firm and the needs of the clients.

Generally, the larger the law firm, the more beneficial it is to have at least one, if not several, project managers. Introducing and adapting this project management discipline within a law firm is a shift in how law firms have typically operated.

Project management introduces targeted goals and accountability in strategic ways geared towards not just maximum profits but client satisfaction. While this may be a difficult philosophical adjustment for some firms and lawyers, the practice is becoming more widely implemented. Legal project management is a new concept that is making its mark on how law is practice.

Don’t wait to get started. Register today for a free Onit account and kick-start your legal project management initiative.

Flip Flops, Beach Balls and Project Management

Posted on June 21, 2011 by - Company News and Events

It’s summer. School’s out. Your family vacation is booked. Your mind is preoccupied with thoughts of pools, parks and picnics.

Before you slip on your figurative flip flops at work, remember that this (traditionally but not always) slower time during the work year is ideal for professional development. This is especially true for project management education. Here is a list of some of the hottest project management courses scheduled for these heat-stroke days.

Onsite, In-depth Training in Chicago

The Hildebrandt Institute revisits legal project management once more by offering a two-day workshop in Chicago on June 21-22. The seminar, geared towards lawyers, practice management professionals and professional development directors (which means anyone else interested in attending), covers best practices, the five phases of legal project management and exercises on how to apply these principles.

ILTA 2011 Conference

The International Legal Technology Association holds its annual conference in Nashville this year on August 21-25. In between healthy (as in size only) portions of ribs and live music at the Grand Ole Opry, make it a point to take in these two sessions:

Legal Project Management: Staff Roles

August 23 at 9:15 a.m.

Four law firm experts – including representatives from Seyfarth Shaw LLP, Borden Ladner Gervais and Squire, Sanders & Dempsey – tackle the basics of legal project management, different approaches and the roles and responsibilities of staff members who support legal project management for attorneys.

Legal Project Management

August 24 at 9:15 a.m.

The benefits and values of legal project management are easy to grasp but rolling it out to your firm may present challenges. This roundtable focuses on legal project management fundamentals, its goals and how to introduce – and implement – it in a legal environment.

Save the Date for these Non-Summer Sessions

You may have to retire your flip flops in the fall, but not your legal project management training opportunities. Though it’s only June, the Association of Corporate Counsel (ACC) already has some informative sessions available.

The ACC Annual Meeting, the largest gathering of in-house counsel, kicks off in Denver on October 23. It offers this session during its first full day of presentations:

Outside Counsel Management – Project Management for Small Law Department Leaders

October 24 at 4:30 p.m.

Although presenters have not been announced just yet, the session promises to cover ideal types of matters and techniques for project management, how to assess outside counsel project management capabilities and how to supervise their work.

Our advice: Definitely make room for this session between the 30+ hours of networking and more than 100 CLE/CPD certified courses provided at the meeting.

What could be the complete opposite of summer dreaming? Try Boston in November. Anti-summer weather aside, Project Management for the In-House Law Department promises to deliver on content. Scheduled for November 8-9, the course will cover the strategic dimensions of project management, concepts and approaches for dealing with various factors such as project team dynamics and risk management.

So, now you have our list of the HOT legal project management courses filling up the summer months. Did we miss any? If so, let us know!

Alternative Fee Arrangements: The Fundamental Advantage is for Law Firms

Posted on June 10, 2011 by - Business Process Management, Enterprise Legal Management

Law firms love AFAs. They love them because they make more money using them. Why else would a law firm actively bid on work using AFAs?

How are law firms profiting from AFAs? It’s simple. Strong AFA-oriented firms – regardless of size or specialty – have the data. They know how long projects take, how many personnel are required and the most efficient ways to execute. And they can mine that data across many matters and multiple industries. Additionally, because law firms are still capturing time entries from their staff, they can continually monitor the effectiveness of their AFAs and tweak their “input” costs accordingly if they are at risk of losing money.

Corporate legal departments are at a disadvantage because they likely don’t have the data to inform structuring an AFA and they certainly don’t get the “input” cost data from the law firms to monitor the effectiveness of the AFA from a cost perspective. From a purely cost-focused point of view, to enter into AFA negotiations without data and metrics around necessary resources and time is like going to a negotiation unprepared. The cards are stacked against the corporate legal department before the negotiations begin.

However, there is a way to help level the playing field and it’s pretty simple.

Request a shadow bill.

A shadow bill is exactly what it sounds like: A duplicate copy of the hours that the law firm staff spent on your project. I know that this is controversial, but making sure both parties have the data is the only fair way for AFAs to be entered into and maintained.

These bills are often circulated internally in a law firm so there may be an initial resistance to sharing them with a client. From a corporate perspective, requesting a shadow bill is the ONLY way you’ll be able to analyze the true value you are getting from the AFA. Moreover, law firms have the technology and processes in place that make this a simple task on their side.

Clarity of Results

Now imagine the clarity that ensues when both parties come to the table with a shared understanding of AFA-related results and costs. It extends beyond cost-controlling measures to create stronger ties between in-house and outside counsel – ties that can be used to create mutually beneficial results. In fact, cost savings are only the beginning.

One of the key benefits from AFAs is being able to share in the financial risks. In some instances (depending on the type of AFA – see below), law firms reap the rewards when a certain goal is attained. When alternative fee arrangements focus on results with the emphasis away from the billable hour, lawyers are rewarded for efficiency. AFAs also provide another important benefit to legal departments – clarity of future costs. Having the ability to mine data from other legal cases or matters is a huge incentive when trying to predict future legal spend. Shadow bills provide this transparency of legal spend.

Let’s look at an example. A case settled in mediation might net a law firm a tidy profit under an AFA structure – one that would not be reflected in an hourly structure. But balance this against an AFA-billed case that might have unexpected turns and the arrangement may work in the corporate legal department’s favor.

Shadow bills are the only way to level the AFA-playing field for law firms and corporate legal departments. Get started today. Request a shadow bill from your law firm and start managing your legal department like a business.

Beyond the Billable Hour

Below are some of the common alternatives to hourly billing:

    • Fixed-fee or Flat Rate – An agreed-upon sum for handling a matter or a defined portion of a case.
    • Capped Fee – An hourly rate, but the client is promised the total billing will not exceed a predetermined amount
    • Discounted Hourly – A reduced hourly rate, often tied to a high volume or extended to major clients
    • Blended Hourly – A uniform hourly rate averaged among the partner, associate and support staff rates
    • Project Billing – A flat fee agreed upon in advance, for handing a specific project
    • Incentive Billing – A fixed fee, established at the outset, with an incentive bonus if the law firm obtains specific results
    • Modified Contingency – A reduce hourly rate with additional compensation depending on the outcome of a matter
    • Defense Contingency or Negative Contingency – Defense attorney’s compensation is totally or partially dependent upon the outcome of a matter
    • Hybrid Arrangements – Any billing method that combines two or more alternatives

Want to Learn More?

Take a look at the articles and surveys below to see why alternative fee arrangements are becoming so popular.

Articles

ACC Value Challenge

2010 Surveys

    • Inside Counsel Third Annual Law Department Operations Survey (Link no longer live)

Alternative Fee Arrangements: Smart Law Firms Profit, Smart Law Departments Know It

Posted on June 8, 2011 by - Business Process Management, Enterprise Legal Management

Law firms are resilient – one of the most tenacious businesses that exist.

Never mind the (almost) static, partner-centric organizational structure. They’re slow to adopt new technology when compared to businesses in other industries. They often have the reputation of holding onto tradition and responding slowly to new experiences or trends.

What other profession is so well known for charging at an hourly rate – a set-up that essentially rewards lawyers for spending more time (as opposed to only necessary time) on cases?

However, as corporate legal departments strive to drive down costs and minimize risks, an opponent to the hourly bill is steadily growing in popularity and is now (ok, I’m just going to say it) a mainstream practice for many law firms. The common perception is that alternative fee arrangements (AFAs) (think flat-rates or project- or value-based fees) give corporate legal departments a distinct edge when it comes to saving money and puts law firms at a significant (monetary) disadvantage.

That might not be the case.

As billing models change, resilient law firms are adapting. They’re surviving and thriving when it comes to AFAs.

Why are law firms benefiting from AFAs? Because most of them have the experience and (most importantly) the data to reinforce their AFA negotiations. The result is that law firms make more money using AFAs; not less. Counterintuitive? Read our next post.

State of the Nation

That AFAs are gaining more ground in the bout of in-house vs. outside counsel is no surprise to anyone. And, as is usually the case, the battle to keep law department costs down is fueling the movement.

A survey from the BTI Consulting Group cites that corporate legal budgets were expected to decrease 4.3 percent in 2010. This means that corporate legal departments needed to get the same amount (or more) of work done with less money and resources.

According to Fulbright’s 7th Annual Litigation Trends Survey Report, 52 percent of the U.S. corporate legal departments surveyed are using AFAs. One in six of the corporate counsel that responded estimate that AFAs account for 50 percent or more of their billings. Among all respondents using AFAs, fixed fees, conditional/contingent fees, blended rates and capped fees are the most widely used AFA variants.

And the practice is growing. The survey stated that four out of 10 U.S. respondents expect to increase their use of alternative fees and with large companies leading the way and that a majority of U.S. respondents see AFAs – and more stringent cost control measures – as becoming fixtures in the market.

To sum it all up, cost controls demand innovative thinking. As corporate legal embraces AFAs, law firms have to anticipate, adapt to and profit from these arrangements.

And they are.

Corporate legal departments are also embracing it. Read Mark Herrmann’s article – Inside Straight: Alternative Fee Agreements for Beginners in Above the Law to see how your legal department can benefit from project or value-based billing arrangements. Mr. Herrmann is the Vice President and Chief Counsel – Litigation at Aon.

The Dawn of Alternative Legal Fee Standardization

Posted on May 19, 2011 by - Business Process Management, Enterprise Legal Management

Alternative fee arrangements bring about a couple of different (ahem) feelings, depending on who you are and where you work. General counsel applaud them as they reduce outside counsel spend. Agile (and often smaller) law firms consider them a nicely sharpened tool in the business development arsenal. Larger firms, which can have ingrained processes and a strong hierarchy, sometimes find themselves a bit behind the curve.

Regardless, alternative billing is pretty much becoming, well, the new standard for billing.

Not that I’m telling you anything new here, folks. We all know how the in-house perspective on alternative billing has evolved over the years. Let’s recap the highlights of the conversation over the past three decades:

    • 1981: Legal work costs what it costs. We can’t control how much we spend or what outside counsel will charge us.
    • 1991: Wait a second. Maybe we can. If only we had the technology to do so.
    • 2011: We’ve got the technology. We see alternative fee arrangements thriving with documented ROI from our own efforts and/or our peers’ efforts.

So what has sparked this blog post? We can thank The Economist for that.

It published an article on May 5 titled “A Less Gilded Future,” which lays out ongoing and growing challenges for law firms. What factors are attributing to these challenges now? Besides technology and outsourcing – which both force a deduction in billable hours – the other “evil beast” is alternative fee arrangements.

In support of this, the article cites feedback from Robert Ruyak on one of the main causes for the demise of the law firm he worked at, Howery:

Howrey had begun acceding to clients’ demands for flat, deferred or contingent fees, causing income to become clumpy and unpredictable.

With this example in mind, and with what you have seen yourself, does the growing strength of alternative fees present a mighty blow to the proliferation of law firms? Or does it just mean an end to the way law firms conceptualize, pitch and measure their billing structures?

And one more (even more thrilling) thought: Are we actually nearing a point where we can apply industry standards to alternative fee arrangements?

The adoption of alternative fees has accelerated these past 5 years alone. The fees have been in use by some pioneers for much longer than that. Thanks to technology (such as legal project management software), is there enough collective data to begin to consider the average fees associated with matters and general tasks from both an in-house and outside counsel point of view? Imagine the implications this could have on negotiations – a basic plateau to start negotiations on that is backed up by both corporate legal departments and law firms alike. Standards such as this could help law firms negotiate on a more level playing field while also affording the necessary cost controls for general counsel.

What do you think? Now that we have (and have had) the technology, do we have the data to begin building standards for alternative billing?

Stay tuned for the next blog where I will discuss how some firms are pushing alternative fee arrangements with their customers because they are finding higher margins there! Sounds counter-intuitive, right?

The Best Location for Education (Besides the Caribbean): Your Desktop

Posted on April 26, 2011 by - Business Process Management

The Virtual Corporate Counsel Forum begins tomorrow in a location that is extremely convenient: Your office.

The ALM event offers seven webinars throughout the day, all of which are CLE-eligible. Not surprisingly, a main theme of all the presentations centers on taking control of challenges – some familiar and some new. Legal spend and managing outside counsel have been on the forefront for close to a decade, with programming focused on controlling costs and creating strong, efficient relationships and processes with outside counsel. Other topics – such as social media and cloud-based technologies – hold legal implications that are just now cresting into sight.

Missing from the line-up? A session focused on the numerous benefits of legal project management.

Given the throngs of corporate counsel and in-house personnel that are flocking towards legal project management events and the numerous articles published about it, this seems a significant oversight – especially when you consider that legal project management plays a significant role in almost every topic scheduled for Forum presentations.

Regardless, Onit will be “on-site” to support the Virtual Corporate Counsel Forum. Come visit our booth and we can fill you in on the latest updates, practices and success stories surrounding legal project management.  You can also register for a $100 Apple gift card and watch some screencasts.

We’re looking forward to seeing you “virtually” tomorrow.

The Curse of Redweldian Thinking

Posted on April 4, 2011 by - Business Process Management

It was the bastion of a successful, busy lawyer as little as 15 years ago. It sat on desks, was cradled by counsel, paralegals and secretaries and, undoubtedly, caused many backaches.

 

I am writing of the humble Redweld – that brown, expanding folder that housed nearly every aspect of a matter from motions to correspondence to billing. During the heavy-paper heydays, Redwelds ruled legal offices.

And they had a good run.

Now, with smartphones, iPads, laptops, email and the Internet (or the Interweb if you’re truly old school), a lot of information is electronic and it’s not quite as easy to build a comprehensive view of an ongoing matter.  Information is fragmented, with electronic documents, conversations and billings anchored to various legal contributors and programs within the law department.

The Redweld isn’t enough. Having something to unite electronic information – say a portal or SharePoint – is not enough. Today’s successful law department needs processes and tools to effectively manage all aspects of their matters – from budgeting to performance to time management to spend … and beyond.

Sunsetting Redweldian Processes

Like the rapidly retiring Redwelds, the processes used to manage matters 15 years ago no longer support the business principles that are prevalent in law departments today. There’s a fundamental difference between the business of law and the practice of law. The business aspect creates a succinct overview of matter performance – versus only the outcome of the matter itself on the legal side.

Building off of these basic business principles is the growing adoption of legal practice management.  Matters are no longer opened, worked and closed. They are evaluated, budgeted, measured, reported on and compared to similar matters and industry benchmarks.  Project management supports these efforts with disciplined, task-based and systematic approaches towards the legal work process. In many ways, it can help to “standardize” the process by:

  • Establishing manageable and clear protocols for managing various legal projects, including the process of budgeting, reporting and communication
  • Defining objectives
  • Identifying potential constraints and building up a plan that will help in creating a working map for clients and lawyers
  • Analyzing bills to help understand the costs, budgets and potential alternative fee arrangements

The New Tools

New disciplines necessitate new tools. In order to surpass Redweldian expectations, a law department needs to have software that not only supports project management best practices, but supports it for the legal environment. It’s not enough to have a shared portal of information (don’t get us wrong – if you’re migrating from a pure-paper Redweldian environment, this is still a huge first step. However, it’s only helpful in uniting information, not true project management.)

Here are some questions to ask when evaluating legal project management software:

  • Can it support specialized or standardized billing codes?
  • Can it appropriately associate documents with the correct matter?
  • Is it showing – and have the capacity to report on – the information that corporate counsel need on a day-to-day basis?
  • Does the software offer the security that is mandatory for you, your clients and your corporation, non-profit, organization or university?
  • Can you look at one screen and see an accurate overview on the matter’s status, budget and progress?
  • Does the software play nice with the technology you already have? For example, does it integrate with Outlook?

Curious about legal project management? Start gathering information by viewing some of these demos. They’ll help you get a feel for the process and tools available today.

Have more questions? Reach out to us at [email protected].

Legal Project Management and Fort Knox: Common Denominators

Posted on March 10, 2011 by - Business Process Management

Preparing for a project today led me to an interesting article (thank you, Twitter): The Eight Most Secure Places in the World. Naturally, the article covered places such as the United States Bullion Depository (often referred to as Fort Knox), Colorado’s ADX Florence Supermax Prison and NORAD. Unexpectedly, it included a vault that protects more than 250 million seeds and a parking garage.

What unites these juggernauts is not necessarily the independent security measures each took to secure its premises, but the uniform thoughts that drove the creation of these processes.

For example: Battening down the hatches at Fort Knox includes resources such as gates, cameras, armed US Mint Police, artillery support from the nearby Army base, a 22-ton vault door and a combination split between 10 separate people who must all be present to unlock the vault.

Clearly, prior to building the depository and setting up these tactics, the government needed to create the plan and its desired outcome, agree on a project plan, resources, goals and deliverables, execute and monitor on these principles and then drive the project to completion. This includes everything from site evaluations, budgets, building plans and a tight oversight to ensure a timely and exact execution. After all, they were building this to protect more than 4.6 thousand tons of gold bullion.

So how does this relate to legal project management?

Like the development of these fortresses, there are basic components for successful legal project management.

The Right People – The Project Management Institute blogged about what qualities good project managers have and these are definitely relevant in legal project management. The best candidates have long-term vision balanced with an eye for detail and the drive to ensure projects stay on time and within budget. The project manager needs to have a strong commitment to see projects through to the end and the patience to methodically plot them out and assign deliverables.

And then there is communication. Yes, we hear this skill paired with almost every profession but in this case it rings especially true. An individual who is handling a project that spans an entire corporate legal department – and often includes participants from multiple departments and outside counsel – requires the ability to alternate communication styles like a switch hitter.

Experience is important. Does your project manager know the processes that comprise the planning and execution of this particular project? Does the project manager know your unique needs as a corporate legal department that must be taken into account? Is your legal project manager credentialed (PMP, CAPM, etc)? Has your legal project manager handled projects such as this successfully? If there is no one that suits these requirements within your organization, consider hiring a consultant or outsourcing your project management needs. Another option is to identify your department’s budding project managers and arrange for professional development opportunities for them.

The Right Tools – Did they bore out the Cheyenne Mountain for NORAD HQ with spoons? Did they use paper mache to build fences for Area 51? Of course not! In order to ensure quality results, you must have the right tool to help you plan, collaborate, execute and measure your projects. In this case, I’m talking project management software. First and foremost, ensure that the software you choose is specific to legal project management.

There are many tools out there that address the needs of project management in general but if they are not tailored specifically to legal project management then you’re starting out your project with an unnecessary deficit. What good is your software if you can’t use it to plan or track important elements of your project such as e-invoicing, alternative fee arrangements or matters, tasks and timekeeper management? It should also serve as a centralized repository of information for authorized participants – a home for your documents and conversations around the project that can easily establish processes, players, deliverables, next steps and reports.

Finally, consider cloud-based applications. Cloud-based software gives you the agility and collaboration capabilities of in-house applications without them being leashed to your computer or including expensive, department-wide implementations.

The Right Resources – Project management is an evolving discipline for the legal industry, one that requires corporate legal departments to learn the ropes while also adapting the process to meet their unique needs. If legal project management is a new concept for your department, then turn to the right resources to help you develop it successfully. Here are a few ways to help you acclimate:

  • Attend legal project management seminars such as these that can address the practice from a beginning to an advanced level.
  • Look outside the legal industry to find inspiration of other project management success stories. Although the exact execution of a software development project may not speak to your legal projects, the vision and outcomes may provide helpful references.
  • Go to professional organizations to catch up on the latest news and events within the industry. Great examples of project management organizations include the Project Management Institute and the International Project Management Association.
  • Ask your peers how they are implementing project management in their corporate legal departments and what successes they are hearing of.
  • Turn to industry experts to learn more about project management and its trends and applications in the legal industry.

So build your own Fort Knox of legal project management by ensuring you have the right people, tools and resources. Your gold bullion will thank you.

Legal Process Management: Let Us Model a Process for Free

Posted on March 2, 2011 by - Business Process Management

Do you need to reduce legal costs?

Do you need better transparency into your legal matters?

Are Microsoft Outlook and Excel your primary tools for matter tracking and reporting?

Would automating your legal processes make you more productive?

Today is your lucky day!

We want to model one of your process for FREE!! We want to show you how Onit Premium can give you the tools your corporate legal department needs to simplify project management, automate legal processes and demonstrate your legal department’s value to the rest of the organization.

How do you get started? Simply choose one of the processes below or think of a legal or business process you are struggling with internally.

    • Incident or accident report
    • Ethics violation
    • Employee termination
    • Litigation
    • Loan modification
    • Trademark
    • NDA
    • Contact negotiation

Next, email me and I’ll schedule a time to discuss the process you’d like us to model in Onit Premium. Don’t worry, you don’t have to buy anything! Within a few days, you’ll get to see what your process looks like in the application.

It’s that simple. Oh, and more thing – feel free to tell all your corporate colleagues about this special promotion. It’s only available for a limited time.