Tale of two law firms utah bar - january 25 2016 - final

transcript

A Tale of Two Lean Law Firms: Starting Lean and Becoming Lean

Contact: gary.allen@leanlaw.coPhone: 208.388.1257

Visit: LeanLaw.co

Helping Lawyers Create Lean Practices

Meet Your Presenter:

GARY ALLENFounder &

CEOPracticing Attorney

Because Lawyers Are Heroes

LeanLaw Helps Solos & Small Firms Be EfficientAbout Us

Today’s Agenda

Why go lean?How to start a lean firm

How to become leanShould you DIY?

Questions

WHY GO LEAN?

Four Reasons to Go Lean$$$

SurvivalBetter serve societyEthical compliance

Not satisfied with:

Lawyers in Traditional Firms Grumbly

Stuck in the Overhead Swamp

Lean Practice = The Way Out

4 ADMINS

Overhead$/Atty/Year % of Revenue

5 ATTORNEYS

Meet a Traditional Firm

$12k - $18k mo. 35% - 55%

Overhead$/Atty/Year % of Revenue

5 ATTORNEYS

Lean Firms Are Different

$2k - $4k mo. <20%

>1 ADMIN

Where Does Overhead Go?

Billing

Document Management

Document Creation

CommunicationCalendar

ManagementGeneral/Insurance

Practice Devel-opmentPractice Man-

agement

Lean Firms = Profitable

Lower overheadMore flexible

More resources for marketingMore competitive for talent

Survival

Headed for Disruption Falls

A Perfect Storm of Economic Forces Market response:

Falling Demand

1 Georgetown Law, Center for Study of the Legal Profession, 2014 Report on the State of the Legal Market.

2005-8CAGR

2009 2010 2011 2012 2013

Y/Y % change

Massive Technology Disruption

Endangered Species?

“As for much smaller firms with very few partners . . . I find it hard to imagine how these legal businesses will survive in the long run.”

Richard Susskind, Tomorrow’s Lawyers

Lean Firms = Competitive

Facilitates new business modelsFixed fees

Outsourced lit support & transactional due diligence

Customized Rocket Lawyer

Serve Society

Justice for All?

Lean Firms = Better Service

More affordableBetter service

More pro bonoHappier clients/happier lawyers

Ethical Compliance

The Ethical Quagmire

Unknowable threats from everywhere

Why a Quagmire?

Compliance determined after something bad has happened

Why a Quagmire?

Rule 1.1 – CompetencyRule 1.6 – ConfidentialityRule 5.3 – Supervision of Nonlawyers

Bottom Line: “Reasonable Efforts” Required

Rule Changes Regarding Technology

Lean Firms = Ethical Compliance

More ModernMore Secure

More PreparedMore Skilled

STARTING LEAN

How to Start a Lean FirmBusiness Fundamentals5 Rules of Lean Practice

Creating a Lean FoundationLean Workflows

Business Fundamentals

Know Your WhyUnderstand the Lean Concept

Get in the Right MindsetBe Accountable

Know Your Why

Understand The Concept

Lean Practice =Measurable Goals

Behavior Change + Technology

Get in the Right Mindset

Make it a Team Effort

Culture

Buy in

Include all stakeholders

Two-way conversation

Accept Doing Some of the Work

Old Thinking Today’s Thinking

5 Rules of Lean Practice

Lean Practice Rules

#1: The Cloud Is the Future#2: Use Industry Standard Tools#3: Be In Sync#4: Back Up#5: Be Secure

Rule #1: The Cloud Is The Future

The Cloud Is Safe

Culture of SecurityBuilt for Security

Newer Authentication and InfrastructureIT practices will always beat yours

The Cloud Is The Safest Place for Your DataPHYSICAL STORAGE

The Cloud Is The Safest Place For Your DataCLOUD STORAGE

Rule #2: Choose Industry Standard Tools for Core WorkFlows

Documents Billing/AccountingEmailCalendarContactsWord processing

Tool Selection

Favor one tech ecosystem (Microsoft, Apple, Google)

Prioritize: “Must have” v. “want to have”

Open environments = flexibility

Rule #3: Be In Sync

All devicesAlways in syncAll the timeAll dataAnywhere

Rule #4: Back Up

3 Copies/2 Locations/1 OffsiteCloud-basedAutomatic

Rule #5: Be Secure

Partner-level discussionIndividual action

PasswordsMobile/biometric

Foundations of Lean Practice

InternetScannerOffice

Foundations

Is Your Internet Pipe Big Enough?

Foundations

Scanner

Foundations

What Is A Bona Fide Office?

Lean Workflows

Billing

Document Management

Document Creation

ManagementGeneral/Insurance

Practice Devel-opmentPractice Man-

agement

Billing

Document Man-agement

Document CreationCommunication

Calendar Man-agement

General/Insurance

Practice Develop-

mentPractice Management

Billing

Lean Leaders: Key Considerations:

Fully integrated workflowWill attorneys input time? Review drafts onlineE-invoicing/payment

Best Add-Ons:

Document Management

BillingDocument

Management

Document Creation

ManagementGeneral/In-

surance

Practice De-velopmentPractice

Management

Document Management

Lean Leaders:Key Considerations:

Less paperIntegration with practice managementEase of useE-filing compatibility

Best Add-Ons: Outsourcing – think quality, cost, specialization,

consent

Document Creation

Billing

Document Creation

CommunicationCalendar Man-

agementGeneral/In-

surancePractice Develop-

Document Creation

Lean Leaders:Key Considerations:

Templates easy to find and useFormattingFinalization, delivery & filing

Best Add-Ons:

Communication

Billing

Document Creation

Communication Calendar Management

General/In-surance

Practice Develop-

E-mail

Lean Leaders:

Key ConsiderationsOrganizing and filingContact management

Best add ons

Lean Leaders: Key Considerations:

Cost v. valueFeatures

• Is mobile enough?• VOIP?• Desktop?• Connectivity to other apps?

Alternatives:

Receptionist

Calendar Management

Billing

Doc-ument Man-age-ment

Doc-umen

t Cre-ation

Communication

Calendar Management

Gen-eral/In-

surance

Practice Development

Practice Management

Calendar Management

Lean Leaders:

Key Considerations:Integration with base calendar

Best Add-Ons:

Billing

Document Creation

ManagementGeneral/In-

surance

Practice Devel-opment

Practice Management

How do lawyers get clients?

Lean Leaders:

Practice Management

Billing

Document CreationCommunication

Calendar Man-agement

General/Insurance

Practice Develop-

Practice Man-agement

Practice Management

Lean Leaders:

Key Considerations:How will you use?Cost?Better specialty tool?

Best Add-Ons:

Becoming Lean

Why change?Managing change

MigrationWhere to start

Why change?

Managing Change

Lead by exampleTeam effortOne step at a timeDon’t let one partner

stop you

Migration

TechnologyData

Where to Start

It’s a marathon not a sprintCreate the mindsetFollow the rulesLay the foundation

One core workflow at a timeSet a goalExecuteRepeat

Should you DIY?

Questions?

LEANLAW.CO

Contact: gary.allen@leanlaw.coPhone: 208.388.1257

Visit: LeanLaw.co

Helping Lawyers Create Lean Practices

facebook.com/LeanLawco

linkedin.com/company/leanlaw

twitter.com/leanlawco

Tale of two law firms utah bar - january 25 2016 - final

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