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ACC Value Challenge (Part 3): What your competitors are doing

By Jim Hassett

pa href=http://adverselling.typepad.com/how_law_firms_sell/2008/12/acc-value-challenge-part-2-six-sigma-at-seyfarth.html target=_blankLast week/a, I wrote about what one law firm is doing to offer more value to their clients in the current economy.#0160; This week I?ll talk about what three other firms are doing, as explained in the a href=http://www.acc.com/advocacy/valuechallenge/toolkit/index.cfm target=_blankACC Value Challenge Toolkit/a./p pThe best way to start lowering costs for your clients is to lower your own costs.#0160; And that begins by systematically managing legal matters./p pa href=http://www.eversheds.com/ target=_blankEversheds/a has developed two different project management systems:#0160; one for litigators and the other for transactional matters.#0160; Every associate is required to complete training in how to use the system that applies to their specialty./p pRAPID divides litigation cases into five segments:#0160; Review, Analyze, Plan, Implement, and Deliver.#0160; Each segment is budgeted separately, and the results of each step help predict the cost of the next one.#0160; Eversheds reports that RAPID has substantially reduced litigation costs, and that 90% of cases are now settled out of court./p pSimilarly, DealTrack breaks down each transactional legal matter into four steps for budgeting and managing ? Scope, Plan, Execute, and Close.#0160; A single step may be further broken down into sub-steps, and include tasks for both in-house counsel and Eversheds attorneys./p pClients want law firms to be able not only to control costs, but also to avoid surprises and budget overruns.#0160; To help predict the future, Eversheds looks to the past, using another system called ELITE, a database of historical cost information.#0160; Adding all of these systems together allows Eversheds to provide ?very reliable cost estimates for any type of legal work.?#0160; (The firm does note, however, that even the best-laid plans do not always work out since ?some aspects of litigation matters... are obviously subject to unexpected developments.?)/p pa href=http://www.mckennalong.com/ target=_blankMcKenna Long/a has taken a different approach to controlling costs.#0160; They?ve established an ?Efficiency Task Force? to identify and implement tactics that can save money for clients and for the firm.#0160; Among many other things, the Efficiency Task Force promotes the ?use of talented part-time contract attorneys... [to provide services] at an attractive hourly rate,? and ?the growing use of non-lawyer professionals to complete non-legal work... at a lesser cost.?/p pAnother important element in providing value is the quality of communication between a firm and its clients.#0160; a href=http://www.ballardspahr.com/ target=_blankBallard Spahr/a has developed a number of systems to ?monitor the relationship to ensure [the] client is receiving value and [the] arrangement is working.?#0160; The first item on their list is ?No gatekeepers within the firm ? clients can contact any Ballard Spahr lawyer without having to go through the lead relationship partner.?#0160; The relationship partner plays a vital role in managing the overall process by monitoring billing, and tracking progress with all the lawyers who work for a particular client.#0160; /p pBallard Spahr also puts its money where its mouth is.#0160; Compensation is based in part on interviews with each partner about who has helped them.#0160; Lawyers earn more if they collaborate effectively, so ?the focus is on value to the client rather than on personal billings for the lawyer on point.?/p pThese are just a few of the value initiatives that have been implemented at Eversheds, McKenna Long, and Ballard Spahr.#0160; For more details on these and other firms, see the a href=http://www.acc.com/advocacy/valuechallenge/toolkit/index.cfm target=_blankACC Value Challenge Toolkit/a.#0160; And then ask yourself:#0160; if this is what my competitors are doing to increase the value they provide to clients, what should I be doing?/p

Full post as published by Legal Business Development on December 17, 2008 (boomark / email).