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www.qlexconsulting.com
aileen@qlexconsulting.com
August
2012
Legal Project Management: A Framework for Improving Client Satisfaction and the Economics of Legal Services By Aileen Leventon
page 1
Legal Project Management: A Framework for Improving Client Satisfaction and Economics of Legal Services
By Aileen Leventon1 Law firms and legal departments are moving quickly to compensate for a gap in lawyer trainingskills in managing how legal work is done. Legal education focuses primarily on substantive legal skills. Topics such as marketing, client relationship management and law firm economics have crept into the continuing legal education curriculum as those skills became more important to the commercial success of law firms.
The
essential
new
skill
is
managing
legal
work;
getting
it
done
is
no
longer
good
enough.
With
clients
refusal
to
pay
for
work
deemed
inefficient
or
excessive,
it
is
critical
for
lawyers
to
concur
on
the
scope
of
work
and
to
execute
well.
Leave-no-stone
unturned
is
not
synonymous
with
quality.
Legal
project
management
(LPM)
is
a
framework
for
analyzing
and
communicating
about
legal
work
as
it
is
initiated,
planned,
carried
out,
monitored,
completed
and
evaluated
to
improve
lawyers
overall
effectiveness.
First Principles
To lay the groundwork, consider the following first principles with respect to law practice:
1. Legal work is undertaken to achieve a clients business goal; it is not a professional pursuit in a vacuum. 2. The clients goaland the importance of itanchors decision-making in handling the matter and the legal strategy.
3. Although lawyers serve a critical advisory role, other stakeholders requirements and objectives are usually foremost.
4. How the work is done is almost as important to clients as results; substantive skill is assumed when a client retains a lawyer or firm.
the
application
of
business
principles
and
practices
to
law
practice
and
client
satisfaction.
She
founded
QLex
in
2006
after
serving
as
a
partner
at
Blaqwell
Inc.,
a
law
firm
strategy
consulting
firm,
and
PricewaterhouseCoopers
LLP,
and
nearly
20
years
of
law
practice.
She
was
a
transaction
lawyer
with
litigation
management
experience
in
New
York
City
at
both
an
AMLaw
50
firm
and
a
leading
financial
services
organization.
She
is
a
graduate
of
Columbia
Business
School,
Cornell
Law
School
and
Stony
Brook
University.
Among
her
other
activities
as
a
member
of
the
Bar,
she
is
participating
the
ABA
Task
Force
on
Legal
Project
Management
in
Transactions.
2012
QLex
Consulting
Inc.
www.qlexconsulting.com
Cell:
(917)
860-7043
aileen@qlexconsulting.com
August
2012
1 Aileen Leventon, JD, MBA, is President and Founder of QLex Consulting Inc., an organization that focuses on
Legal Project Management: A Framework for Improving Client Satisfaction and the Economics of Legal Services By Aileen Leventon
page 2
These
principles
point
directly
to
the
need
for
communication
among
those
involved.
But
communicate
to
whom
about
what
and
to
what
end?
The
response
to
this
question
is
core
to
LPM.
In
a
profession
focused
on
the
quality
of
the
analysis,
soft
skills
like
ongoing
communication
about
work
process
are
marginalized.
In
fact,
they
are
essential.
LPM
provides
a
framework
and
tools
for
identifying
what
needs
to
be
communicated
and
then
acting
on
it.
Threshold Questions for Communication
5. Cost matters: the resources applied to legal work must be in proportion to the benefits and risks inherent in the effort; it must conform to the clients measure of value.
Every matter involves a team of people with different roles and responsibilities. Its composition may be as complex as a multi-office team with partners, associates, paralegals and assistants from different practice groups, or as simple as a lawyer and a client. Each participant should understand the context for the matter at a level of detail commensurate with his or her role. In a well-managed matter, team members should be able to answer the following questions: 1. WHY are we handling this matter for this client? WHY is it important to the client? What is the business goal of the legal work? 2. WHAT work will accomplish the goal and what work will specifically not be done?
4. WHO is involved in the work and what are their roles and responsibilities? Who is responsible for the actual work, who supports that person, and who must be consulted or informed about status and decisions? 5. HOW do we manage the work based on constraints and requirements such as budget, strategic importance, client mandates or risk management protocols?
3. WHEN must work be done and in what sequence? What are the hard deadlines, and what timing is uncertain or dependent on unknowns?
LPM
calls
for
a
communications
plan
to
address,
revisit,
test,
and
report
on
the
answers
to
the
threshold
questions.
Change
is
inherent
in
the
nature
of
legal
work.
As
a
matter
www.qlexconsulting.com
Cell:
(917)
860-7043
aileen@qlexconsulting.com
With a communications plan, client sensitivities and risks to successful execution may be addressed more effectively. Consider the current norm: the client says go, and roles, responsibilities, goals, strategies, assumptions, deadlines and budgets are clarifiedor noton the run. Panic followed by triage is the response when the client expresses concern about the quality of management or challenges fees or billing practices.
August 2012
Legal Project Management: A Framework for Improving Client Satisfaction and the Economics of Legal Services By Aileen Leventon
page 3
progresseswhether
it
is
a
transaction,
litigation
or
any
other
matternew
facts,
circumstances
and
legal
issues
emerge.
The
prevalence
of
uncertainty
and
unknowns
have
led
lawyers
to
deem
planning
impracticalor
to
abandon
plans
in
the
face
of
change.
LPM
keeps
bringing
the
team
back
to
a
shared
planning
framework
to
confirm
working
assumptions
about
the
matter.
The
discipline
and
structure
of
the
communication
plan
reduces
surprises
and
unnecessary
work
while
protecting
the
matters
economics
and
fee
structures.
It
fosters
a
shared
understanding
among
all
key
participants.
Constraints of Legal Projects
Throughout the matter, constant communication is necessary to balance the interrelationship among the constraints inherent in all projects: scope, cost and time. In legal work the constraints are: 1. The scope of matter, based on the clients and other stakeholders goals 2. The people or other resources (such as technology and budgets) required to do the work; and 3. Deadlines to complete the work, whether imposed by a client or a third party such as a court.
If any of these constraints is initially fixed and then changes, then LPM requires deliberate adaptation of the other elements to that change. For example, if the scope is well defined and the time for completion of the work is determined by the clients business requirements (such as the fiscal year), then the lawyer has to deploy an appropriate level of resources to achieve the clients goal within the timeframe. When scope changes, the team needs to understand the impact on the time constraint and whether the resources are appropriate for the matters economics. And when the scope and time both change, what is the impact on cost? An ongoing communication plan with a client reduces surprises. Think how often a law firm renders a bill reflecting higher-than-expected resources deployed to achieve the agreed-upon scope of work within the clients time frame. Informal communication should never be replaced with bureaucratic formality, but specific tools at each phase of a matter keeps team members and clients aligned.
August 2012
Legal Project Management: A Framework for Improving Client Satisfaction and the Economics of Legal Services By Aileen Leventon
page 4
Communication Tools
LPM recognizes six broad phases of a matter: Initiation/Engagement; Launch; Monitoring; Revision/Refinement; Close; and After-Action Review. Consider the relevance of the following eight tools as a basis for communication during the different phases of a matter. Tools useful at the Launch phase and during the subsequent Revise/Refinement Phases:
1. Kick Off Meeting: To set the tone for the management of the work, go over the team leaders/partners discussions with the client about the goals and objectives for the matter, the legal work that needs to be done and the ground rules for how the core legal team will function and relate to the client. 2. Scoping Tool: To identify stakeholders, objectives, constraints, assumptions and work necessary to complete the project.
Tools useful during the Monitor and Refinement Phases during which the Scope, Work Plan and Time Line may have to be adjusted: 5. Status Reports: These are templates and plans to ensure that team members and the client are informed, aligned, and aware of changed circumstances and/or that efforts are on track to achieve the clients goals within cost, time and resource constraints. 6. Client Communication Checklist: Who will communicate about what to whom?
4. Time Line: To set out the schedule, sequence, milestones and dependencies and to serve as a crosscheck again the Work Plan and working assumptions reflected in the Scoping Tool.
3. Work Plan: To outline the broad categories of legal work to be done and identify the people who are responsible and otherwise involved. It should be updated as the action items for team members change significantly, particularly at the beginning of a new phase of work (e.g., after making a motion for summary judgment in a litigation; at the start and completion of due diligence in a transaction).
Legal Project Management: A Framework for Improving Client Satisfaction and the Economics of Legal Services By Aileen Leventon
page 5
Tools useful during the Close and After-Action Review phase to assess how the matter evolved and constraints were managed, and to document lessons learned: 7. Closing Report: To compare the outcome to the original scope of work and to acknowledge how and why plans changed.
An
After-Action
Review
or
Debrief
is
most
effective
if
the
participants
know
they
will
be
doing
it
at
the
outset
of
the
matter.
Nevertheless,
even
if
no
other
tools
are
used,
great
benefits
may
be
derived
from
a
well-structured
Debrief
that
reflects
on
lessons
learned
and
how
they
will
be
shared
and
syndicated.
LPM
tools
should
be
simple
and
practical
and
adapted
for
each
matter
and
team.
They
should
be
calibrated
to
address
the
interrelationship
among
the
constraints
of
scope,
cost
and
time
for
the
particular
matter.
Conclusion
8. After-Action Review / Agenda: To identify the successful elements of the matter management and those that could be improved.
How many lawyers lament that others expect them to read minds or that they dont understand the context of what they are doing or how their work will be used? How many clients are surprised by how long the work takes, the demands on them, and the circumstances that drive the cost of the work? Legal project management is the communication and analytical framework that allows lawyers to apply their legal know-how with greater focus on context and client service to improve the satisfaction with and economics of legal services.
August 2012