Implementing Practice Management in a Mid-sized Firm

Practice management is gaining strength as a discipline in many mid-sized firms. Long adhered to in large firms as a way to interact most effectively with clients, produce the client's work in the most timely and cost-effective manner, and generate collegiality among lawyers, in mid-sized firms many managing partners have relegated the practice of law to individual partners, reluctant to impose their judgments on how individual client matters were being performed. This results from their belief that lawyer management should not have to follow up on partners responsible for performing client work or for managing substantive practice areas.

Practice management and firm management often interact most closely when firm revenue and the net profit available to partners declines. When partners begin to feel the economic pinch in their pockets, there is a greater tendency to view practice areas and individual attorneys as profit centers. As such, firm management needs to review all of the factors contributing to profitability and to address the following questions:

• How profitable are the firm's practice areas?
• Should the firm continue to practice in these areas or redirect its efforts to other areas?
• Can certain partners and associates be re-assigned to other more profitable practice areas? If so, what training will be required to bring these attorneys up to speed in these areas? If not, what should be done with these attorneys?
• Should certain partners be assigned accountability for managing particular practice areas?
• What should be the role, responsibility and level of accountability of the heads of practice areas?

Often, the solution to the problem is development of practice management in the firm, and an increasing number of mid-size law offices have introduced and implemented practice management activities to insure partner coordination, control and accountability over fields of law, areas of practice and client matters.

What is Practice Management?

Initially, a coordinating partner or 'practice manager' is assigned to the practice area of law. Generally, under plans and policies established by the managing partner, each practice manager is charged with planning, organizing, and overseeing the proper and profitable handling of work in the practice area falling within his or her jurisdiction. A major function of the manager of a practice area is to insure the timely completion of client work in a cost effective and quality manner. Central to this activity is the assignment of work to associates or other partners. The partner may delegate assignments directly to attorneys within their field of law or who may be available or possess the expertise to perform the required work.

Even though firm management in most mid-sized firms recognizes the importance of developing and implementing principles of practice management as a means to insure the high quality service to clients and to improve profitability, implementation varies greatly from firm to firm. This is because of lawyers' personalities and ability, partners' attitudes towards 'being managed', and the extent to which they are willing to relinquish a degree of their personal and professional autonomy for the good of the work being performed.

Therefore, the qualities of a coordinating partner are important. Clearly, he or she must be a capable lawyer, and with enough time on his or her schedule to take on the administrative details necessary to manage the practice. He or she must be a good communicator, able to interact effectively with all the legal teams producing the work of the department. The coordinating partner must also be flexible, somewhat visionary, and capable of handling many diverse personalities in order to keep the practice running as smoothly as possible. And he or she must have good administrative backup.

Duties of a Practice Manager

Each practice manager should be responsible for quality control and cost effectiveness of work performed in their area. This partner should be available to discuss fees and oversee billings and collection of bills in his or her jurisdiction, as requested, and within the framework established by the managing partner. This individual may be expected to coordinate the planning for business development and/or the systematic sharing of client relations within the practice area. Within the system of the office, the coordinating partner should insure implementation of agreed upon policies on billings, collections, retention, and indexing of legal forms, memoranda, opinion letters, and important legal efforts for the practice area.

The partner should become involved with the continuing legal education efforts for the work under his or her jurisdiction. Each practice manager should communicate with the executive committee about the quality, client service, the economics of professional services rendered by the attorneys within the designated work area, as well as for the improvement of such services. This partner should advise on the acceptance of new business, considering such aspects as conflict of interest, ethics, merit and strength of case, time required, ability of lawyers to handle the work, economics of the case, and value to the office. If the practice manager is uncertain whether to accept a case, he or she should consult the managing partner.

The generic functions performed by each practice manager should be determined by the managing partner for the major areas of the office's work in terms of managing problems in work assignment, coordinating staffing, setting objectives and reviewing data to appraise results, insuring ethics and quality control, and cooperating with the executive committee. The partner should be encouraged to develop his or her own style in accomplishing these objectives within the general guidelines of the office. Why is personal style important? Because the differences in substantive practice requirements, the size of the practice group, and the amount of expertise of the members of each practice group will determine how the practice manager will follow through with his or her charge. The 'one size fits all approach' does not work because the practice managers will not buy into the process if an arbitrary system is imposed. Therefore, by having the managing partner set the groundwork about which practice management functions have to be performed, and giving the practice manager some leeway in performing these functions, the likelihood is that the practice manager will do a better job.

Weekly, practice managers (and managing partners) should receive a written notice from the office administrator describing every new matter within the practice area that has been accepted during that week. These reports will advise the manager of the existence of new matters within their jurisdiction, along with the identity of the originating partner.

As required, each practice manager should meet with the partners and associates working on matters within the practice area to briefly discuss individual work loads, problems in producing work in a timely manner, schedule conflicts, etc. To facilitate this review, each manager should access the calendars and dockets for statute of limitations dates, other key filing dates, status reports or supplemental miscellaneous information and a record of every matter by the 'handling attorneys.' This is where excellent administrative support can really shine.

To the extent that the manager has doubts about the ability of the originating attorney to perform the work (within the manager's practice area,) whether due to lack of expertise or work overload, the manager should discuss the matter with the originating attorney. All client assignments with related questions between the practice manager and the originating attorney that cannot be resolved by the manager should be referred to the managing partner.

The practice managers should review, on a lawyer-by-lawyer basis, client work that is not being performed in a timely or quality manner, or work that can afford more lawyer time. The practice manager should review lawyer production reports monthly, or more frequently as required, to determine the extent to which lawyers are producing the work. Following this review, the manager may assign or suggest reassignment of work to other attorneys who are not being utilized effectively. It is especially helpful for the manager to review all write-downs and write-offs of time and accounts receivable beyond certain dollar limits by billing attorney to determine the reasons and justifications for such action. If partners are writing off too much time, it should be questioned.

Frequently, the individual needs of attorneys have to be balanced with individual partner independence in order to be responsive to the firm's organizational patterns and policies. Applying management techniques to practice areas may introduce to the firm a new aspect on methods for enhancing profitability.

Practice management should not be an arduous task for the mid-sized firm to implement. It can be done on a department-by-department basis, each successive practice area learning from the ones that have gone before. At any level, a smoothly running practice will ensure that the firm's attorneys are being used to the best possible advantage, that the clients perceive that the firm is alert and responsive to their needs, and that the lawyers within a practice group work in a collegial atmosphere.

Practice management is gaining strength as a discipline in many mid-sized firms. Long adhered to in large firms as a way to interact most effectively with clients, produce the client's work in the most timely and cost-effective manner, and generate collegiality among lawyers, in mid-sized firms many managing partners have relegated the practice of law to individual partners, reluctant to impose their judgments on how individual client matters were being performed. This results from their belief that lawyer management should not have to follow up on partners responsible for performing client work or for managing substantive practice areas.

Practice management and firm management often interact most closely when firm revenue and the net profit available to partners declines. When partners begin to feel the economic pinch in their pockets, there is a greater tendency to view practice areas and individual attorneys as profit centers. As such, firm management needs to review all of the factors contributing to profitability and to address the following questions:

• How profitable are the firm's practice areas?
• Should the firm continue to practice in these areas or redirect its efforts to other areas?
• Can certain partners and associates be re-assigned to other more profitable practice areas? If so, what training will be required to bring these attorneys up to speed in these areas? If not, what should be done with these attorneys?
• Should certain partners be assigned accountability for managing particular practice areas?
• What should be the role, responsibility and level of accountability of the heads of practice areas?

Often, the solution to the problem is development of practice management in the firm, and an increasing number of mid-size law offices have introduced and implemented practice management activities to insure partner coordination, control and accountability over fields of law, areas of practice and client matters.

What is Practice Management?

Initially, a coordinating partner or 'practice manager' is assigned to the practice area of law. Generally, under plans and policies established by the managing partner, each practice manager is charged with planning, organizing, and overseeing the proper and profitable handling of work in the practice area falling within his or her jurisdiction. A major function of the manager of a practice area is to insure the timely completion of client work in a cost effective and quality manner. Central to this activity is the assignment of work to associates or other partners. The partner may delegate assignments directly to attorneys within their field of law or who may be available or possess the expertise to perform the required work.

Even though firm management in most mid-sized firms recognizes the importance of developing and implementing principles of practice management as a means to insure the high quality service to clients and to improve profitability, implementation varies greatly from firm to firm. This is because of lawyers' personalities and ability, partners' attitudes towards 'being managed', and the extent to which they are willing to relinquish a degree of their personal and professional autonomy for the good of the work being performed.

Therefore, the qualities of a coordinating partner are important. Clearly, he or she must be a capable lawyer, and with enough time on his or her schedule to take on the administrative details necessary to manage the practice. He or she must be a good communicator, able to interact effectively with all the legal teams producing the work of the department. The coordinating partner must also be flexible, somewhat visionary, and capable of handling many diverse personalities in order to keep the practice running as smoothly as possible. And he or she must have good administrative backup.

Duties of a Practice Manager

Each practice manager should be responsible for quality control and cost effectiveness of work performed in their area. This partner should be available to discuss fees and oversee billings and collection of bills in his or her jurisdiction, as requested, and within the framework established by the managing partner. This individual may be expected to coordinate the planning for business development and/or the systematic sharing of client relations within the practice area. Within the system of the office, the coordinating partner should insure implementation of agreed upon policies on billings, collections, retention, and indexing of legal forms, memoranda, opinion letters, and important legal efforts for the practice area.

The partner should become involved with the continuing legal education efforts for the work under his or her jurisdiction. Each practice manager should communicate with the executive committee about the quality, client service, the economics of professional services rendered by the attorneys within the designated work area, as well as for the improvement of such services. This partner should advise on the acceptance of new business, considering such aspects as conflict of interest, ethics, merit and strength of case, time required, ability of lawyers to handle the work, economics of the case, and value to the office. If the practice manager is uncertain whether to accept a case, he or she should consult the managing partner.

The generic functions performed by each practice manager should be determined by the managing partner for the major areas of the office's work in terms of managing problems in work assignment, coordinating staffing, setting objectives and reviewing data to appraise results, insuring ethics and quality control, and cooperating with the executive committee. The partner should be encouraged to develop his or her own style in accomplishing these objectives within the general guidelines of the office. Why is personal style important? Because the differences in substantive practice requirements, the size of the practice group, and the amount of expertise of the members of each practice group will determine how the practice manager will follow through with his or her charge. The 'one size fits all approach' does not work because the practice managers will not buy into the process if an arbitrary system is imposed. Therefore, by having the managing partner set the groundwork about which practice management functions have to be performed, and giving the practice manager some leeway in performing these functions, the likelihood is that the practice manager will do a better job.

Weekly, practice managers (and managing partners) should receive a written notice from the office administrator describing every new matter within the practice area that has been accepted during that week. These reports will advise the manager of the existence of new matters within their jurisdiction, along with the identity of the originating partner.

As required, each practice manager should meet with the partners and associates working on matters within the practice area to briefly discuss individual work loads, problems in producing work in a timely manner, schedule conflicts, etc. To facilitate this review, each manager should access the calendars and dockets for statute of limitations dates, other key filing dates, status reports or supplemental miscellaneous information and a record of every matter by the 'handling attorneys.' This is where excellent administrative support can really shine.

To the extent that the manager has doubts about the ability of the originating attorney to perform the work (within the manager's practice area,) whether due to lack of expertise or work overload, the manager should discuss the matter with the originating attorney. All client assignments with related questions between the practice manager and the originating attorney that cannot be resolved by the manager should be referred to the managing partner.

The practice managers should review, on a lawyer-by-lawyer basis, client work that is not being performed in a timely or quality manner, or work that can afford more lawyer time. The practice manager should review lawyer production reports monthly, or more frequently as required, to determine the extent to which lawyers are producing the work. Following this review, the manager may assign or suggest reassignment of work to other attorneys who are not being utilized effectively. It is especially helpful for the manager to review all write-downs and write-offs of time and accounts receivable beyond certain dollar limits by billing attorney to determine the reasons and justifications for such action. If partners are writing off too much time, it should be questioned.

Frequently, the individual needs of attorneys have to be balanced with individual partner independence in order to be responsive to the firm's organizational patterns and policies. Applying management techniques to practice areas may introduce to the firm a new aspect on methods for enhancing profitability.

Practice management should not be an arduous task for the mid-sized firm to implement. It can be done on a department-by-department basis, each successive practice area learning from the ones that have gone before. At any level, a smoothly running practice will ensure that the firm's attorneys are being used to the best possible advantage, that the clients perceive that the firm is alert and responsive to their needs, and that the lawyers within a practice group work in a collegial atmosphere.